The mining sector has ventured a long way from the dark days of late 2015 and early 2016. UK miners find their shares trading at pre-commodity slump levels, just 24 months after falling to their lowest levels in a decade. Some are now even trading at 10-year highs.

How has the sector managed such a stellar recovery, and where might miners’ shares go from here?

This report delves deeper into the sector to explain the wide range of drivers impacting the sector, and previews all-important upcoming full-year results.

Dogged dollar and climbing commodities

A prominent market theme of the past 12 months has been persistent US dollar weakness, with the global reserve currency falling to its lowest level since December 2014 in the early weeks of 2018.

Perceptions of increased protectionism under the pro-America Trump administration, in combination with central banks across the globe playing catch up to the US Federal Reserve, have dented sentiment for the greenback, with deep consequences for miners.

Dollar-denominated commodities have received a tremendous boost from the dollar weakness, a reaction that has also helped the miners themselves.

Copper traded a 3-year high in December 2017 and, despite retreating marginally as the dollar stabilises, remains within touching distance of those highs.

Whether key commodities like copper continue to trade around multi-year highs depends on the buck.

But already, there are signs the dollar might be out of the doldrums and on course for a rosier 12 months.

But will the greenback regroup?

Whilst 2018 hasn’t seen the dollar recovery expected after tax reform was passed last year, it also hasn’t seen protracted decline we saw in January 2017.

Tax reform under his belt, the President now has his first legislative victory and the fresh confidence that comes along with it. Next on the agenda is an enormous $1 trillion infrastructure spending plan, a key pillar of Trump’s presidential campaign agenda.

The policy focus of the administration, as well as the outcome of November’s mid-term elections, will be a major driver for the dollar, and subsequently miners.

Changing guard, corruption and China

With major mining operations in South America South Africa and Australia, amongst others, UK miners are exposed to a plethora of external factors.

Both South African and South American political spheres are undergoing a dramatic overhaul. The former is planning for President Zuma’s succession after nine years in charge, while corruption trials in Brazil have fuelled South American angst.

Meanwhile Australia, one of the most exposed states in the world to China, and could be subject to a A$140bn (£80.5bn) hit to national income should the Chinese economy hit a widely touted hard landing.

These themes will be closely watched in 2018. Mining is a global business and, as such, global events like these will continue to influence the sector this year.

Overleaf, we reveal the reporting dates of the UK’s largest mining stocks and dissect how shares have fared over the course of the past 12 months.