Has the U.K. Metals and Mining Industry valuation changed over the past few years?

Investors are optimistic on the British Metals and Mining industry, and appear confident in long term growth rates. The industry is trading at a PE ratio of 38.6x which is higher than its 3-year average PE of 22.8x. The 3-year average PS ratio of 0.79x is lower than the industry's current PS ratio of 1.3x.

Which industries have driven the changes within the U.K. Materials industry?

Investors are most optimistic about the Copper industry which is trading above its 3-year average PE ratio of 27.2x. Analysts are expecting annual earnings growth of 10.9%, which is lower than the prior year's growth of 114.9% per year.

U.K. (FTSE) Metals and Mining Industry Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 13 May 2026	UK£328.0b	UK£254.1b	UK£8.5b	19.9x	38.6x	1.3x
Fri, 10 Apr 2026	UK£305.9b	UK£256.0b	UK£8.6b	21.4x	35.7x	1.2x
Sun, 08 Mar 2026	UK£288.9b	UK£256.7b	UK£8.8b	21.9x	32.7x	1.1x
Tue, 03 Feb 2026	UK£290.4b	UK£241.5b	UK£5.9b	20.9x	49.5x	1.2x
Thu, 01 Jan 2026	UK£256.8b	UK£245.1b	UK£6.0b	19.4x	43.2x	1x
Sat, 29 Nov 2025	UK£226.1b	UK£249.3b	UK£6.1b	16.3x	37.1x	0.9x
Mon, 27 Oct 2025	UK£217.9b	UK£247.9b	UK£6.1b	14.4x	35.9x	0.9x
Wed, 24 Sep 2025	UK£199.3b	UK£244.0b	UK£5.9b	13.5x	33.6x	0.8x
Fri, 22 Aug 2025	UK£179.6b	UK£245.8b	UK£6.0b	10.2x	30x	0.7x
Sun, 20 Jul 2025	UK£175.8b	UK£245.0b	UK£5.9b	8.7x	29.7x	0.7x
Tue, 17 Jun 2025	UK£170.2b	UK£242.1b	UK£5.9b	8.2x	28.9x	0.7x
Thu, 15 May 2025	UK£176.2b	UK£247.8b	UK£6.1b	8.7x	29x	0.7x
Sat, 12 Apr 2025	UK£159.6b	UK£251.3b	UK£6.2b	8.2x	25.9x	0.6x
Mon, 10 Mar 2025	UK£182.5b	UK£253.9b	UK£6.2b	9.7x	29.5x	0.7x
Wed, 05 Feb 2025	UK£183.2b	UK£261.6b	UK£7.8b	9.3x	23.5x	0.7x
Fri, 03 Jan 2025	UK£184.3b	UK£263.9b	UK£7.9b	9.1x	23.4x	0.7x
Sun, 01 Dec 2024	UK£191.4b	UK£256.3b	UK£7.6b	9.5x	25.1x	0.7x
Tue, 29 Oct 2024	UK£199.4b	UK£252.5b	UK£7.6b	10.4x	26.3x	0.8x
Thu, 26 Sep 2024	UK£197.1b	UK£246.1b	UK£7.4b	11x	26.7x	0.8x
Sat, 24 Aug 2024	UK£190.5b	UK£247.9b	UK£7.3b	11.8x	26x	0.8x
Mon, 22 Jul 2024	UK£198.1b	UK£246.6b	UK£12.2b	14.2x	16.2x	0.8x
Wed, 19 Jun 2024	UK£206.5b	UK£250.7b	UK£12.4b	13.6x	16.7x	0.8x
Fri, 17 May 2024	UK£224.9b	UK£251.5b	UK£12.4b	17.5x	18.1x	0.9x
Sun, 14 Apr 2024	UK£214.5b	UK£256.1b	UK£12.8b	14.1x	16.7x	0.8x
Tue, 12 Mar 2024	UK£183.4b	UK£249.0b	UK£12.5b	12.9x	14.7x	0.7x
Thu, 08 Feb 2024	UK£191.5b	UK£261.5b	UK£17.9b	11.1x	10.7x	0.7x
Sat, 06 Jan 2024	UK£216.4b	UK£303.7b	UK£27.5b	9.9x	7.9x	0.7x
Mon, 04 Dec 2023	UK£217.7b	UK£304.3b	UK£27.6b	9.1x	7.9x	0.7x
Wed, 01 Nov 2023	UK£204.2b	UK£316.1b	UK£28.4b	10x	7.2x	0.6x
Fri, 29 Sep 2023	UK£209.3b	UK£314.5b	UK£28.3b	7.3x	7.4x	0.7x
Sun, 27 Aug 2023	UK£195.4b	UK£306.9b	UK£28.0b	6.9x	7x	0.6x
Tue, 25 Jul 2023	UK£216.0b	UK£327.4b	UK£38.4b	6.8x	5.6x	0.7x
Thu, 22 Jun 2023	UK£211.1b	UK£330.2b	UK£38.7b	7.5x	5.5x	0.6x
Sat, 20 May 2023	UK£206.6b	UK£335.7b	UK£39.2b	8x	5.3x	0.6x


GB Market	0.59%
Materials	7.12%
Metals and Mining	7.62%
Copper	11.08%
Gold	10.06%
Precious Metals and Minerals	8.06%
Diversified Metals and Mining	6.20%
Aluminum	0%	0
Silver	0%	0
Steel	-0.69%

Company	Last Price	7D	1Y	Valuation
RIO Rio Tinto Group	UK£82.72	7.2% +UK£9.0b	76.6%	PE18.2x
ANTO Antofagasta	UK£42.99	12.6% +UK£4.7b	129.3%	PE43.1x
GLEN Glencore	UK£5.92	4.1% +UK£2.7b	116.3%	PE258.1x
AAL Anglo American	UK£40.75	6.5% +UK£2.7b	63.1%	PS3.2x
FRES Fresnillo	UK£37.84	9.3% +UK£2.4b	285.5%	PE27.2x

Announcement • May 08

Zanaga Iron Ore Company Limited Confirms Completion of DRI Process Plant Costing and Updates DRI Product Strategy

Zanaga Iron Ore Company Limited had announced the successful completion of the project development strategy programme (the "Programme"), which now includes the results of a technical and commercial evaluation of the process flowsheet to produce premium quality Direct Reduced Iron ("DRI") pellet feed concentrates. The Programme has provided increased confidence in the economic potential of the Zanaga Iron Ore Project in the Republic of Congo (the "Project"), confirming the achievement of significant value enhancements since the Programme was launched in March 2025. In March 2025, the Company launched the Programme with the ambition to deliver value enhancements to the Project through product quality enhancements, improved thickened tailings solutions, and options for the pipeline development solution. This was intended to culminate in securing updated technical cost estimates and economic results, capable of being provided to strategic investors, lenders and financiers. The first key objective was to ascertain the potential to adjust the process plant flow sheet to produce an even higher grade premium DRI grade product - which was achieved and announced in July 2025. This provided a foundation for the next phases of work, most of which were completed and announced in January 2026, but at that stage ZIOC still did not possess updated estimates for the newly designed DRI process plant. As the final step of the Programme, the DRI process plant results are completed and incorporated into an updated financial model and economic evaluation. Workstreams now completed include: The confirmation of DRI product quality potential in Stage One and Stage Two; The completion of costing and feasibility of: modular hematite processing facilities for Stage One; thickened and dry tailings facilities for both Stage One and Stage Two; and an optional single 30 million tonnes per annum ("Mtpa") pipeline during Stage One (providing a compelling optional alternative to the April 2026 case two-stage pipeline plan); Update of specific project costs through an Original Equipment Manufacturer ("OEM") enquiry process; Assembly of a Constructor Engagement Programme for the Project. The completion of the Programme offers increased confidence in the Project's economic prospects, which are now updated and accurate as of end December 2025. Key Highlights from the April 2026 Case: Stage One Capital Expenditure Estimate: USD 2,170 million; Stage One Net Present Value ("NPV"): USD 2,540 million (increase of approx. 30.9% vs 2024 Feasibility Update); Stage One Internal Rate of Return ("IRR"): 22.5% (vs 21.4%); Combined Stage One & Two Capital Expenditure Estimate: USD 4,050 million; Combined Stage One & Two NPV: USD 4,900 million (increase of 29.4%); Combined Stage One & Two IRR: 24.3% (vs 23.0%); Processing, Filter Plant and product handling Cost: USD 11.95 per tonne of concentrate. Following successful laboratory-scale DRI test work completed in mid-2025, ZIOC commissioned detailed conceptual and feasibility-level designs to refine capital and operating cost estimates to ±20% accuracy. The updated development strategy incorporates: A modular 12Mtpa hematite concentrator complex consisting of three 4Mtpa lines; A two-stage, 12Mtpa and 18Mtpa, pipeline system, with optional single 30Mtpa slurry pipeline system; Thickened tailings storage facilities; A 12Mtpa filter plant and covered concentrate handling facilities. The Company's DRI product strategy positions the Zanaga Project to benefit from: Increasing demand for premium iron ores, particularly DRI grade iron ore; Global steel sector decarbonisation via growth in Electric Arc Furnace ("EAF") steel production; Firm positioning in the lowest cost quartile of iron ore producers. The updated Stage One processing capital expenditure estimate (April 2026 Case) totals approximately USD 753.7 million for processing, filtration, and concentrate handling facilities, contributing to a total expected Stage One capital requirement of USD 2,170 million. Operating unit processing, filter plant and product handling costs for Stage One are estimated at USD 11.97 per tonne of concentrate. While Stage One processing operating costs and capital expenditure estimates have increased moderately compared with previous studies, the inclusion of DRI-grade product premiums significantly improves the Project's Stage One NPV by approximately 31% relative to the 2024 Feasibility Study Update. The investment in a DRI-producing flowsheet demonstrates strong value creation, as shown below: April 2026 Economic Update Previous Studies Change vs 2024 Feasibility Update Financial Metric 2026 Based on DRI product 2024 Feasibility Study Update 2014 Feasibility Study % Stage One Capex (USD million) 2,174 1,935 2,196 12.5% NPV (USD million) 2,539 1,939 2,132 30.9% IRR (%) 22.5 21.4 22.9 +1.1% Avg. Product Grade (%Fe) 68.5 65.9 65.9 +2.6% Stage One and Two Expansion Capex (USD million) +1,871 +1,871 +2,488 - Combined NPV (USD million) 4,897 3,784 4,026 29.4% Combined IRR (%) 24.3 23.0 23.92 +1.3% Avg. Product Grade (%Fe) 68.8 67.2 67.2 +1.6%. As part of the Programme, extensive engagement with leading Chinese OEMs and construction groups took place during 2025, enabling the Company to: Pre-qualify equipment suppliers and contractors; Identify lump-sum and other cost frameworks for major equipment and construction scopes; Define construction productivity assumptions; Improve cost transparency and risk management plans. A second qualification and RFQ process is planned during 2026, aligned with metallurgical bulk testing and detailed engineering. Upon analysis of the single-pipeline option, announced in January 2026, the April 2026 Case retains the two-stage pipeline design basis, involving the construction of a 12Mtpa capacity pipeline for Stage One, and an additional 18Mtpa capacity pipeline for the Stage Two expansion to 30Mtpa total production capacity.

Announcement • Mar 12

Rainbow Rare Earths Limited Announces Economic Assessment for Uberaba Project in Brazil

Rainbow Rare Earths Limited announced an Economic Assessment (EA) confirming Uberaba as a second major opportunity for Rainbow, with the project expected to be a long-life, high-margin and near-term producer of both light and heavy rare earth elements (REE). Using Rainbow's internal 10% discount rate and rare earth pricing reported by Argus Media Limited at March 2026, the Uberaba EA post-tax NPV10 is USD 916 million, with a post-tax IRR of 45%, average EBITDA of USD 217 million per annum over a 30 year life-of-mine, and a pay-back of 1.7 years. Using the 13.5% discount rate applied in the Economic Assessment and rare earth pricing reported by Argus at 5 March 2026, the Uberaba EA post-tax NPV13.5 is USD 609 million. The Uberaba project is similar to Rainbow's flagship Phalaborwa project in that it will entail the processing of phosphogypsum, a 'waste' product that is the residue from phosphoric acid production, and will use Rainbow's intellectual property to economically extract both light and heavy REE. By recovering critical REE from secondary sources, these projects eliminate many of the costs and risks associated with traditional REE mining projects, and as such are situated at the bottom of the industry cost curve. The Uberaba project is located in the Minas Gerais state of Brazil where Mosaic is currently mining phosphate rock and producing phosphoric acid for use in the fertiliser industry. The EA envisages building a processing plant on-site to process the phosphogypsum waste residue at an annual throughput of ca. 2,700,000 tonnes per annum over an initial project life of 30 years. There is excellent potential to extend this life due to the underlying long life of the phosphate feedstock at Uberaba. The flowsheet that has been defined for the EA uses Rainbow's background IP developed for the Phalaborwa project, further supported by collaborative test work between Rainbow and Mosaic. The phosphogypsum from the Uberaba phosphoric acid process facility is treated for REE extraction, with the aim of delivering separated neodymium and praseodymium (NdPr) oxide and a samarium, europium and gadolinium plus (SEG+) product that is rich in medium and heavy REE, each at +99.5% purity. The chemically processed and cleaned phosphogypsum stream is then returned to the Mosaic Uberaba process facility. Rainbow has presented the base case economics on the basis of spot rare earth prices published by Argus on 5 March 2026 assuming 100% payability for a combined NdPr product and 70% payability for the SEG+ product. The NPV is presented at a 10% discount rate, which matches the discount rate used for Rainbow's Phalaborwa project. Key findings of the EA at current rare earth pricing: Base case Basket price USD/kg 128, Post-tax NPV using a 10% discount rate USD 916 million, Post-tax NPV using a 13.5% discount rate USD 609 million, Post-tax IRR 45%, Capital Expenditure USD 279 million, Revenue USD 319 million per annum, Operating Cost USD/kg 38, EBITDA USD 217 million per annum, NdPr oxide Tonnes per annum 21,971, SEG+, including: Dysprosium (Dy) Tonnes per annum 265, Terbium (Tb) Tonnes per annum 96, Yttrium (Y) Tonnes per annum 1,418, Payback Years 1.7. Basket price and operating costs calculated on 100% payability basis for NdPr and SEG+ weighted in-line with the feedstock grade. Revenue and production statistics based on steady state throughput excluding ramp up during commissioning phase. The sensitivity to rare earth prices has been calculated by reference to a 10% increase or decrease to the base case forecast. The key financial metrics of the Uberaba Project under these different scenarios are set out below: Base case -10% +10% Basket price USD/kg 128 115 141, Post-tax NPV10 USD 916 million 757 million 1,075 million, Post-tax NPV13.5 USD 609 million 495 million 723 million, Post-tax IRR 45% 40% 50%, Revenue USD 319 million per annum 287 million per annum 351 million per annum, EBITDA USD 217 million per annum 185 million per annum 248 million per annum, Payback Years 1.7 1.9 1.6, Change in NPV10 USD million -159 159. Basket price calculated on 100% payability basis for NdPr and SEG+ weighted in-line with the feedstock grade. Revenue based on steady state throughput excluding ramp up during commissioning phase. The EA does not meet the standards for a scoping study under the JORC Code as it is not based on a formally designated resource. The EA is based on grade information relating to the phosphogypsum feedstock stream provided by Mosaic incorporating sampling data from the existing operations. A head grade of 0.51% TREO is used in the EA. The EA assumes recovery of 57% based on test work undertaken at Mosaic's laboratory facilities at the Uberaba site. The capital and operating costs for the EA have been developed in-line with the standards adopted for a scoping study under the JORC Code. Rainbow recognises that the assumptions upon which the EA is based and therefore the key findings of the EA may change as a result of the negotiation of the joint venture agreement and shareholders agreement for JVCo with Mosaic. The EA contains confidential information relating to both Rainbow and Mosaic and will not be published as a standalone study.

U.K. (FTSE) Metals and Mining Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

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New major risk - Revenue and earnings growth

Zanaga Iron Ore Company Limited Confirms Completion of DRI Process Plant Costing and Updates DRI Product Strategy

AAL: Geopolitical And Commodity Risks Will Limit Post Teck Merger Upside

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HILS: Updated Price Objective And Capital Deployment Will Shape Future Fair Value

Metals Exploration plc Revises Production Guidance for the Fiscal Year 2026

KMR: Revised Risk Outlook Will Support Future Cash Flows

Griffin Mining Limited Commences Zone II Production

Tungsten West plc Announces Executive Appointments

Rainbow Rare Earths Limited Announces Economic Assessment for Uberaba Project in Brazil