Average market cap crashes for B.C.’s top mining stocks

Average stock price and estimated market capitalization reached five-year peak in 2019

The past year has been a roller-coaster for the stock market, with most of the major indices recovering sharply from their pandemic lows against a backdrop of social restrictions and economic struggles.

Despite the V-shaped recovery for major markets, British Columbia’s fastest-growing mining stocks grew more slowly this year than in previous years, according to data collected for BIV’s Top-Performing B.C.-Based Mining Stocks list (page 12).

The average stock-price growth for the top 20 slipped 24.1 points to 229.9% in 2020 from 254% in 2019.

The average stock-price growth for those stocks, however, was still significantly higher than it was in 2018. That rate was 87.3% in 2016; it fell to a five-year low of 30.1% in 2017. While 2018’s average stock-price growth outperformed the previous year’s low, it did not recover to 2016 levels. In 2019, average stock-price growth for the top mining stocks jumped 189 points to 254% from 65% in 2018.

But as average stock-price growth posted its second-highest level in five years, estimated market cap for the top-performing mining stocks in B.C. has fallen to $1.96 billion.

 In 2020, the average estimated market cap fell 62.6% from a five-year high of $2.14 billion in 2019. The decline follows two consistent years of growth in which the estimated average market cap for the top mining stocks grew 58% in 2019 from $1.36 billion in 2017. The two-year growth followed a 34.4% decline in estimated average market cap for the top-performing mining stocks in 2017.•