Global mining financing collapses 90% as stock values drop

The global mining sector experienced a significant downturn in September, marked by a 90% year-on-year collapse in financing, which totaled only US$765 million for the month. This represents a 78% decline compared to August. Factors contributing to this contraction include high interest rates in developed markets, increased risk aversion toward natural resource assets, and a concentration of capital raises in previous months.

Simultaneously, the world’s 50 most valuable mining stocks saw their total value drop to $2.26 trillion, the second-largest monthly decline in the ranking's history. This $264 billion hit was driven largely by a retreat in gold prices and a sharp decline in lithium stocks, which lost more than 20% of their value during the month.

Major companies were heavily impacted: gold miners surrendered $79 billion of the gains made in August, with Newmont and Agnico Eagle suffering double-digit billion-dollar losses. AngloGold Ashanti fell 16.4%, while Kinross saw its shares drop 21.3% following reduced production guidance due to weather and grade issues in Chile and Nevada.