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Where Are Iron Ore Prices Headed after a Sharp Rebound in April? (Part 12 of 12) (Continued from Part 11) Iron ore companies’ performance
In this final part of the series, we’ll discuss how various iron ore companies are doing in the current iron ore price environment.
BHP Billiton and Rio Tinto
Since January 2015, BHP Billiton (BLT) has been the best performer among all of the iron ore producers. Its stock price is up 8.5% year-to-date (or YTD). The stock for Rio Tinto (RIO) is only down 1.0%.
BHP’s 1Q15 production results were a solid beat on market expectations. Rio’s 1Q15 production results were almost in line with marginal downside due to weather-related events.
Vale, Fortescue, and CLF
The performance of Vale SA (VALE) is down just 2.0% YTD. Vale’s share price has recovered very strongly since it posted record production results for 1Q15. The company’s stock price has gained 32% in the last week. Production results and recovering iron ore prices led to this price surge.
Fortescue Metals Group (FSUGY) and Cliffs Natural Resources (CLF) are down by 21.9% and 16.9%, respectively. These stocks also have been recovering their worst losses in 2015 as iron ore prices have been improving in recent weeks. Cliffs has gained 22% in the last two weeks, while Fortescue has gained 25% in the same time frame.
Key ETFs
Funds like the iShares MSCI Global Metals & Mining Producers ETF (PICK) offer good ways for investors to gain exposure to the iron ore sector without choosing individual company stocks. BHP Billiton, Rio Tinto, and Vale form 17.9%, 10.8%, and 2.6% of PICK’s holdings, respectively.
To take a broader approach toward investing in this sector, consider the SPDR S&P Metals and Mining ETF (XME). Cliffs Natural Resources forms 3.6% of XME’s holdings.
Browse this series on Market Realist:
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Vale
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EXPLORATION STAGE |
CODE : VALE3.SA |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Vale is a producing company based in Brazil. Its main exploration property is GALIURO in USA. Vale is listed in Brazil and in France. Its market capitalisation is BRL 301.8 billions as of today (US$ 150.8 billions, € 135.6 billions). Its stock quote reached its lowest recent point on February 19, 2016 at BRL 10.51, and its highest recent level on August 27, 2021 at BRL 99.80. Vale has 5 244 319 744 shares outstanding. |