Fallers in 2012
Mining Eye index, gold, copper and LMEX Index over Q4 2012
Source: EY, Thomson Datastream
Two-thirds of the AIM mining universe realised net share price losses over Q4. Despite some positive news flow, there were examples of distress and value destruction, connected to 2012's challenging funding and operating conditions.
The share price of UK coal producer ATH Resource fell the most in Q4 2012 (99%), affected by the fall in international coal prices. Advisors were appointed in October and shares suspended.
Great Basin Gold, African Copper, Angel Mining and Norseman Gold all entered into restructuring proceedings in the closing months of 2012, while Creat Resources and GMA Resources are considering selling their assets to become investing companies.
Nautilus Minerals' share price lost 78% over Q4. Despite ongoing drilling announcements, including the discovery of high grade Seafloor Massive Sulfide systems on its wholly-owned exploration tenements in the territorial waters of Tonga, it decided to halt planned construction of the Seafloor Production System for its Solwara 1 project. Its share price fell 82% over the year, mainly due to a dispute with the Papua New Guinean authorities. The company reported a potential unsolicited take-over bid in January 2013, which has yet to play out.
Changes to the Mining Eye index
There were six index constituent changes in Q4. On the back of relatively strong share price performances, Afferro Mining, Bellzone Mining and Central Asia Metals moved into the index, replacing Metminco, Nautilus Minerals and Zanaga Iron Ore.