Thursday , June 13 2024

Jiangxi Copper debut in the most valuable mining brand rankings

Glencore is now the world’s most valuable mining brand from its runner-up position in 2022, having swapped places with BHP, according to Brand Finance’s Mining, Metals & Minerals 50 2023 report which ranks the world’s top 50 most valuable and strongest brands in the mining industry. In terms of brand strength, Glencore also improved its rating from A+ to AA along with a brand strength index boost of 7.6 points – resulting in a leap of 16 ranks to be placed as the world’s 11th strongest mining brand. Major contributors to the mining brand’s performance included a stronger revenue forecast riding on a record 2022 fiscal performance as well as a diversified and adept business model.

Jiangxi Copper made its debut in the rankings as the world’s 4th most valuable mining brand with a corresponding brand strength rating of AA- as the strongest and most valuable mining brand in China. With strong revenue forecasts in line with an impressive yearly earnings per share (EPS) compounded growth of 33 percent since 2019, the mining brand – China’s largest copper producer – is well-poised to leverage a growing global copper industry fueled by electric vehicle demand, transition to renewable energy systems, and the metal’s replacement of aluminum in computer and appliance parts.

This positive business outlook, along with its commitment to environmental, social and governance (ESG) targets and initiatives, has translated into much optimism and positive reputational perceptions which are reflected in Jiangxi Copper’s brand performance this year.

CITIC Pacific Mining is the fastest growing mining brand in this year’s rankings, well ahead of HINDALCO (brand value up 107 percent to US$885.5 million), the second fastest growing mining brand. As such, CITIC Pacific Mining jumped seven ranks to make it into the world’s Top 5 most valuable mining brands at 5th place.

A subsidiary of the Hong Kong-listed CITIC Limited owned by Chinese state-owned enterprise CITIC Group, the Australian-headquartered CITIC Pacific Mining’s brand performance was fueled by massive spikes in 2022 revenue forecast and 2021 revenue. These were in turn driven by several strategic business initiatives including: regulatory approval of a 1 billion yuan (US$ 145 million) loan to affiliate company CITIC Securities – China’s largest brokerage – for the purposes of offering securities asset management and overseas securities investment services, a taking over of stakes in five of property developer Kaisa Group’s projects in Shenzhen by CITIC Group worth over 60 billion yuan (US$8.9 billion) in July 2022 and CITIC Limited’s acquisition of Australian-headquartered Balmoral Iron in November 2021.

Agnico Eagle emerged as the strongest mining brand in this year’s rankings with a corresponding brand strength rating of AA+. With a robust seven perent growth in gold production guidance through 2025, the Canadian mining brand made substantial progress on existing development projects and realised synergies with the acquisition of assets belonging to other mining brands.

This resulted in the successful expansion of mineral reserves and resources by nine percent and 12 percent respectively. Despite higher costs of such exploration and amortisation, Agnico Eagle continued to see an increase in net income driven by higher sales volumes – contributing to stronger brand performance.

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