Connect with us

Hi, what are you looking for?

Investing

BHP Overtakes Glencore as Top Mining Brand with US$6.1 Billion Valuation

BHP (ASX:BHP,LSE:BHP,NYSE:BHP) has emerged as mining’s new leader in brand value, surpassing longstanding frontrunner Glencore (LSE:GLEN,OTC Pink:GLCNF), according to a recent report from Brand Finance.

The document outlines a 17 percent surge in BHP’s brand value, soaring to an impressive US$6.1 billion.

This year-on-year rise was enough to propel BHP to the top spot and dethrone Glencore, whose brand value, while still substantial at US$5.9 billion, experienced a marginal decline of 1 percent from the previous period.

Factors contributing to BHP’s ascent include higher revenue, which was fueled by increased prices for commodities such as iron ore and copper. Additionally, the company’s expansion efforts, including the contribution of new mines like the South Australia-based Prominent Hill and Carrapateena, have bolstered its brand value.

Graphic courtesy of Brand Finance.

Overall, Brand Finance reported a general rise in brand value in the mining industry, with 28 out of the 39 brands it tracks increasing in value by at least 4 percent compared to 2023. US aluminum producer Alcoa (NYSE:AA) saw the highest increase, jumping to a brand value of US$1 billion — equivalent to a 127 percent boost.

The report also sheds light on the resilience of Chinese mining brands in the face of economic challenges.

Jiangxi Copper (OTC Pink:JIAXF,HKEX:0358) led the charge as the most valuable Chinese mining brand; it is also fourth on the list overall despite a 9 percent dip in brand value year-on-year to US$4.1 billion. Notable new Chinese entries this year include Aluminum Corporation of China (OTC Pink:ALMMF,HKEX:2600), which boasts a brand value of US$1.4 billion, and CMOC Group (OTC Pink:CMCLF,HKEX:3993) with a brand value of US$1.3 billion.

This surge in Chinese representation underscores the nation’s growing influence in the global mining arena. China now has the highest number of companies on the list, totaling 11 out of the 50 most valuable mining brands worldwide.

The US closely follows, with three new entrants bolstering its presence to a total of eight brands in this year’s rankings.

Graphic courtesy of Brand Finance.

In addition to assessing brand value, Brand Finance employed its Global Brand Equity Monitor research to compile a Sustainability Perceptions Value (SPV) Index. This metric provides insight into which mining brands global consumers perceive to be most committed to sustainability. According to the firm, sustainability is a significant driver of for investment, accounting for 8.3 percent of customer consideration.

As sustainability concerns continue to gain prominence, the mining sector is facing escalating pressure to adapt. The 2024 SPV Index from Brand Finance highlights South Korean brand Posco Holdings (NYSE:PKX,KRX:005490) as leading the charge — the steel manufacturer has the highest SPV at US$513 million.

Brand Finance Valuation Director Savio D’Souza commented on the industry’s upsurge in sustainability commitments:

“Amidst the global energy transition and prioritization to secure critical mineral supplies, the mining industry plays an increasingly important role in the shift to cleaner energy sources. Mining brands are poised for a promising future as they build resilience through their commitment to sustainability and continue to meet the changing needs of their stakeholders.”

As the mining sector continues to evolve amid global economic shifts and sustainability imperatives, stakeholders are advised to remain vigilant and adaptive to emerging trends and market dynamics.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com






    You May Also Like

    Latest News

    North Korea may be known as the hermit kingdom, but the isolated nation could be edging toward opening its borders to small numbers of...

    Editor's Pick

    One of the perks of being speaker of the House — or at least, one of the characteristics of it — is that you...

    Latest News

    Evacuations are underway across Hawaii’s Big Island and Maui as passing Hurricane Dora helps fuel wildfires that have damaged structures, prompted rescues and spurred...

    Latest News

    Former world No. 1 Caroline Wozniacki won her first competitive tennis match in three-and-a-half years on Tuesday, defeating Australian Kimberly Birrell 6-2 6-2 at...

    Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 balanceandcharge.com