"A commodity bull in a China shop" might be the best way to describe the performance of B.C.'s top public companies by market value in 2010. Shareholders of the top dozen firms were rewarded with double-digit, and in some cases triple-digit returns, as rising commodity prices driven by strong demand from China lifted revenues, earnings and share prices. Only three non-miners cracked the top dozen and one of those was Finning International, the heavy-equipment firm whose fortunes are tied to mining and the oilsands. The commodity boom vaulted Teck past Goldcorp into the No. 1 spot with a market cap of more than $35 billion. Numbers are based on Thursday's close.
Teck Resources $60.96
Remember when Teck stock could be had for about $4 a share at the height of the financial crisis? Teck shares now trade for nearly $61 and are up more than 60 per cent year-to-date, adding $13 billion to the base metals miner's market cap. Teck hiked its dividend and reported record revenue of $2.5 billion in the third quarter alone. With copper at new highs, the good times should continue to roll for B.C.'s new rock star.
Goldcorp $45.34
Gold has increased more than 24 per cent in value this year and shares of Goldcorp, the world's second-largest gold miner, have risen about 10 per cent. Goldcorp bought Andean Resources for $3.6 billion, out-bidding Eldorado Gold to gain control of the Cerro Negro deposit in Argentina. Goldcorp produced 596,200 ounces of gold in Q3, tripled net income to $466 million and hiked its dividend.
Telus $45.94
As 2009 ended, Telus shares had flatlined in the low-$30s for most of the year on concerns about increased wireless competition. Telus CEO Darren Entwistle made a bold bet -he announced he would take his entire 2010 cash salary in Telus shares. Fast-forward a year and Telus is doing just fine, despite the launch of wireless competitors Wind Mobile and Mobilicity. Telus hiked its dividend twice in 2010 and shares are trading near $46, up 42 per cent for the year. Entwistle has done OK on his compensation bet too -on Nov. 17, the Telus CEO sold 32,771 shares at $42.90 a share for proceeds of about $1.4 million, according to insider trading records.
Ivanhoe Mines $23.34
Ivanhoe Mines stock has gained more than 53 per cent this year, increasing its market cap to about $13 billion and bumping it into the top five B.C. companies by market value. Ivanhoe's flagship Oyu Tolgoi project in Mongolia's Gobi Desert -a joint venture with the Mongolian government -is one of the world's largest copper-gold deposits. There are now more than 5,500 workers on site and production is expected to start in late 2012. Mining giant Rio Tinto is Ivanhoe's largest shareholder.
Silver Wheaton $37.85
Silver Wheaton's business model, in a phrase, could be 'turns cheap silver into gold for shareholders.' Shares are up more than 135 per cent year-to-date, outperforming the commodity itself, which rose 79 per cent. Silver Wheaton pays miners upfront cash for silver byproduct and re-sells the metal at higher market prices.
Eldorado Gold $18.57
While Eldorado lost out to Goldcorp on Andean Resources, its shares turned in a solid 24-per-cent gain for the year. With three operating gold mines in China, Eldorado is one of the country's largest foreign gold producers. It also operates mines in Turkey and Brazil. Eldorado initiated a dividend and doubled revenue in the third quarter.
First Quantum Minerals $108
It's been a turbulent year for First Quantum, which had to shut down its Frontier copper mine in the Democratic Republic of Congo after the government pulled mining permits. However, a rising copper price buoyed the miner's stock, up more than 35 per cent. First Quantum mines copper, gold and nickel in Zambia, Mauritania and Finland.
lululemon athletica $69.61
Being one of "Oprah's Favorite Things" helped make Lululemon athletica one of the TSX's favourite stocks for 2010. Shares of the yogawear maker rocketed up more than 130 per cent this year, giving the Vancouver firm a market cap of about $5 billion. The American TV talk legend plugged Lululemon's relaxed-fit yoga pants on Nov. 19 -"Anything that cuts your butt in half should be your favourite thing too." The stock also got a lift from a near doubling of third-quarter net profit.
Finning International $27.36
Exposure to mining and the oilsands helped boost Finning's bottom line and its share price in 2010. Stock in Finning, the world's largest Caterpillar equipment dealer, rose more than 65 per cent this year. Finning expects the good times to continue -the firm says revenue should grow at 10 per cent annually over the next three years, with earnings outpacing revenue.
Pan American Silver $40.94
The sheen of high silver prices combined with strong operating results lifted Pan American shares to a 63-per-cent gain on the year. Pan American operates mines in Mexico, Peru and Bolivia and its Navidad property in Argentina is expected to be one of the world's largest primary silver mines.
Western Coal $12.40
Forget the Christmas legend: A lump of coal was a good thing in 2010. A very good thing for Western Coal shareholders, whose stock increased a whopping 270 per cent this year. A $3.3-billion takeover offer from U.S. firm Walter Energy -a deal sealed earlier this month -certainly helped.
New Gold $9.67
New Gold shares are up about 150 per cent this year as the gold miner produces the yellow metal at mines in California, Mexico and Australia. The miner is also advancing its New Afton copper-gold project near Kamloops.
