The sharp rise in silver prices has rubbed off on the mining companies, too. In China, one of the world’s largest silver producers, several mining companies have been beneficiaries of the rise in silver as investors lapped up their shares, pushing prices to record high levels.
Chinese mining stocks traded mixed on Monday, as silver prices retreated from record high levels. However, for the year, these stocks have seen a massive rise of up to 187%.
Among the top-performing Chinese mining companies of this year are: Hunan Silver Co, Zijin Mining Group Co, Jiangxi Copper Co, Shandong Gold Mining and CMOC Group.
Chinese mining stocks zoom over 250% YTD
Shares of CMOC Group, a China-based company mainly engaged in mining and processing of basic metals and rare metals, as well as mineral trading, jumped by as much as 6% to a record high today. The stock has seen a sharp 251% rise on a year-to-date (YTD) basis.
Hunan Silver Co zoomed 10% in intraday deals today in the Chinese stock market. In the last one year, the Chinese mining company, which specialises in silver and its by-products, have jumped 115%.
Another China-based global miner involved in the extraction of copper, gold and silver, among other metals, is also enjoying a sharp surge in its shares this year, thanks to the metal boom. While the stock declined 2% today, it remains 110% higher YTD.
Other miners like Shandong Gold Mining and Jiangxi Copper Co have jumped 66% and 142%, respectively in the same period. The sharp surge in metal prices, especially silver, is expected to drive the realisations and revenues for these companies.
In other Asian economies, including India, mining companies have been rallying this year. According to Bloomberg data, Australian precious metals maker Genesis Minerals Ltd. has risen 199% this year, and Indonesia’s Aneka Tambang Tbk., which mines gold and silver, has seen a 122% advance this year.
Indian silver miner Hindustan Zinc shares are up 38% this year.
Silver prices surged to a record high of $84 an ounce on Monday but saw sharp volatility. The prices retreated sharply, losing almost 5% at one point. The metal, however, has risen 180% supported by a weaker dollar, rising geopolitical tensions, increased speculative activity, and a structural supply-demand imbalance.
“Silver is a key component needed for data centres and AI, and the market is waking up to that demand,” Kazuhiro Sasaki, head of research at Phillip Securities Japan Ltd, told Bloomberg. Many investors are shifting funds from chips and other AI-related stocks to metals like silver, which look more undervalued, he added.