The London Stock Exchange (LSE) has seen a decline in its standing as a preferred venue for mining company listings, falling behind major exchanges in New York, Toronto, and Sydney. According to data from S&P Global Market Intelligence shared by the Financial Times, the market capitalization of mining stocks listed on the LSE has decreased to $272 billion in 2024, down from $322 billion in 2018. In comparison, mining sectors on exchanges in Australia, Canada, and the United States each surpassed $325 billion. Since 2020, miners listed on the LSE have raised only $8 billion, significantly less than the amounts raised in Sydney and Toronto.
Robert Crayfourd, a portfolio manager at CQS, noted that the market’s focus has shifted towards the tech sector. He emphasized the importance of London maintaining its historic role as a hub for mining stocks and finance to prevent companies from seeking other markets. Currently, there are 171 metals and mining companies listed on the LSE, accounting for 17% of the global market capitalization for the sector. However, much of this value is concentrated in a few major firms such as Glencore, Rio Tinto, and Anglo American. Over 100 of these LSE-listed companies have market capitalizations of less than £100 million ($128 million).
London’s mining sector has faced challenges, including the delisting of Russian gold producers in 2022 following the Ukraine invasion, and BHP‘s decision to move its primary listing to Australia. Activist investors are pressuring Rio Tinto to follow BHP’s lead, Glencore is considering spinning off its coal division for a New York listing, and Anglo American is selling assets after avoiding a takeover by BHP. With Rio Tinto currently being the ninth-largest company on the FTSE 100, losing Anglo American or Glencore would pose a significant risk to the London market, according to Hayden Bairstow, a Perth-based analyst at financial advisory firm Argonaut.
