The index performance for Alternative Investment Market (AIM) Basic Resources has increased by 19.4% in 2015, contrary to the view that the mining industry is struggling.
The performance of the AIM Basic Resources Index increased after witnessing falls for four years of 27%-38% per annum.
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In comparison, the Financial Times Stock Exchange (FTSE) Mining Index posted -8%ytd.
A handful of companies are said to be the driving force behind the improvement in AIM performance.
Of the £507m increase in market capitalisation of the index, Amur Minerals (+226.2%, +£106m) and Sirius Minerals (+55%, +£97m) contributed 40% for the improvement.
The companies have been heavily traded based on their announcements related to mining licence application.
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By GlobalDataAmong companies that contribute in terms of market cap terms were Coal of Africa (+200.5%ytd, +£66m), Wolf Minerals (+52.4%, +£56m), Aureus Mining (+50.3%, +£34m), Gemfields (+29.9%, +£68m) and Highland Gold Mining (+60.3%, +£44m).
Based on respective market caps selected top ten companies making 55% of the index accounted for nearly all of the £510m increase climbing 42%ytd.
Companies from 11-20 were up 16% in aggregate adding £85m to the index, while companies from 21-30s were up 9% (+£21m).
Image: AIM Basic Resources Index increased after witnessing four years of 27%-38% pa falls. Photo: courtesy of Master isolated images/ FreeDigitalPhotos.net.
