Mining: Sharp dip uncovers value

About the author:

Author name:

By Adrian Prendergast

Job title:

Senior Analyst

Date posted:

17 August 2023, 7:30 AM

Sectors Covered:

Mining, Energy

• The ASX 200 Materials index is down 7% in the last month, with large-caps leading the selloff (BHP -5%, RIO -12%, FMG -11%, MIN -14%, S32 -7%, IGO -20%).
• Broad weakness, contributed to by the ongoing malaise in China growth indicators, has in some cases boosted the value proposition on some key picks.
• We upgrade our recommendation on RIO to Add (from Hold), gaining conviction on an improved performance from its flagship Pilbara iron ore business.
• This reporting season will likely see reduced yoy earnings and dividends, but in some cases (like S32) not as bad as we expected post recent quarterly results.

Find out more

You can find further detailed analysis of company results this reporting season by browsing our reporting season tag, and view a full list of upcoming results on our Reporting Season Calendar.

If you would like more information, please contact your adviser or nearest Morgans office.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.