Shares of mining heavyweight BHP Billiton Limited (ASX: BHP) enjoyed a stellar year in 2016 and are off to a flying start again in 2017. While the shares have risen 1.3% today alone to trade at $26.36, they have gained an impressive 5.2% since they traded for $25.06 at the beginning of the year.
By way of comparison, the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has risen 'just' 2%, even though it has advanced in each of its sessions so far in 2017, bar one (it fell 0.8% on Tuesday this week).
Of course, those who have held their shares since the beginning of 2016 will be singing the miner's praises. Its shares gained more than 40% over the year, and rose 78% after bottoming out at around $14 in January 2016.
As has been the case with various other miners, including Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO) and Whitehaven Coal Ltd (ASX: WHC), BHP's resurgence can largely be attributed to a lift in the price of iron ore and coal. Oil prices have rebounded nicely too, providing plenty of drive for the BHP Billiton share price.
If commodity prices continue to rise, or even if they remain stable at their current levels, BHP's shares could have further to run. That said, investors do need to be aware that further capital gains from the stock (and indeed, dividends as well) will be largely dependent on that happening: if commodity prices decide to fall again, it could put a real dent in BHP's prospects.