By Mahnaz Abdi

Mining sector’s performance in stock market outstanding

October 5, 2020 - 14:24

TEHRAN- While Iran’s stock market has been developed noticeably in recent years, especially since the previous Iranian calendar year (March 2019-March 2020), the performance of some sectors in this market has been very outstanding.

The minerals and mining industry is one of those sectors.

This sector’s performance has been so much good that the head of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), which is the major state-owned holding company active in the mining sector in Iran, has predicted a promising future for the mining companies in the stock market.

As Khodadad Gharibpour has said, 85 industrial and mining companies active in the stock market account for $65 billion of this market’s value.

Shares of mining companies such as Mobarakeh Steel Company, National Iranian Copper Industry Company, GOLGOHAR Mining and Industrial Company, Chadormalu Mining and Industrial Company, Khuzestan Steel Company, and Khorasan Steel Company play some significant and determining role in the stock market.

The most recent report on the performance of the mining sector in the stock market shows that the performance of 74 companies has improved 35 percent in the last Iranian calendar month (ended on September 21) compared to its previous month, and 95.3 percent compared to the same month in the last year.

These companies’ performance has also improved 50.3 percent in the first half of the current year (March 20-September 21).

While the mining sector’s performance in the stock market has been noticeable in the first half, a good performance is also anticipated for the second half.

During a recent meeting on supporting the shareholders and investors in the capital market attended by IMIDRO head, chairman of the parliament’s Economic Committee, and the head of Iran’s Securities and Exchange Organization (SEO), Amir Sabagh, the IMIDRO’s director for investment and economic affairs, said the major mining companies’ capital will reach 890 trillion rials (about $21.19 billion) in the current Iranian calendar year (ends on March 20, 2021), while the figure was 340 trillion rials (about $8.09 billion) two years ago.

Addressing the same meeting, Ardeshir Sa’ad Mohammadi, the managing director of National Iranian Copper Industry Company, said this company’s investment making will increase to €4.5 billion from €2 billion, which is a considerable amount.

He also said, “We will introduce a new copper mine with the deposit of 530 million tons in the current year”, adding, “Copper companies’ shares will bring high profit for the shareholders, especially the individual investors.”

“We have no concern for the sales of copper cathode even under the sanctions condition”, he underlined.

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