Not too long ago, ASX mining shares were heralded as dividend royalty on the Aussie share market. However, times have changed since 2020 and 2021. Commodity prices are not as shiny as they once were, putting pressure on those supersized payouts.
Instead, the baton has been passed on to oil and gas companies this year, as the world became desperate for energy in the face of crimped supply.
Due to the essential nature of energy, prices for these commodities ballooned throughout the year — with crude oil reaching US$130 per barrel after starting the year below US$50. ASX energy companies able to capitalise on the demand have witnessed eye-popping changes to their bottom lines and payouts.
Meanwhile, investors in ASX mining shares have watched on as their dividend yields have been — in many cases — squashed.
It might be painful, but let's find out which mining companies have been dealt the biggest blow to their passive income potential.
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ASX mining shares with detonated dividend yields
Before we unearth the harrowing tales of dividend disappearance, it should be said that changes in the dividend yield are a function of two variables. Either the dividend per share (DPS) paid by the company has altered, or the share price may have moved — or some combination of the two.
The worst outcome as an income investor is for your juicy yield to go from hero to zero. According to data from S&P Global Market Intelligence, five ASX mining shares have succumbed to this grim fate.
Comparing the dividend yield as of 31 December 2021 to today, the following companies have experienced a 100% reduction in their yield.
| Company | Dividend yield on 31 December 2021 | YTD share price performance |
| SSR Mining Inc CDI (ASX: SSR) | 1.1% | -6.7% |
| Sandfire Resources Ltd (ASX: SFR) | 5.2% | -19.6% |
| Perenti Ltd (ASX: PRN) | 4.3% | 19.4% |
| Mount Gibson Iron Limited (ASX: MGX) | 4.7% | 14.4% |
| St Barbara Ltd (ASX: SBM) | 2.7% | -55.7% |
While the above five ASX mining shares take the crown for the biggest reduction in dividend yield, there are several other large names that have experienced substantial yield suppression in 2022.
Which others have been hurt?
For example, Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) received a respective 55% and 29% yield slashing. Both companies feeling the effects of an iron ore price now half its 2021 highs.
Likewise, Newcrest Mining Ltd (ASX: NCM) and Evolution Mining Ltd (ASX: EVN) have taken 37% and 29% hits to their dividend yields.
According to the latest Janus Henderson Global Dividend Index report, dividends from basic materials companies globally fell 21.8% year-on-year in the third quarter.
