This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Technically the shares look their strongest since early 2009. The current recovery rally has extended to 130% since late Jan lows. The price of commodities are off their lows and the mining sector has started to do the hard work in terms of trimming any fat. This includes scrapping/reducing dividend payments which, albeit painful short-term, is required to ensure long-term financial sustainability and cherry picking economically viable projects for this newer lower commodity price environment. Global central bank policy remains accomodative in terms of with low rates, negative rates and full on QE stimulus which should continue to support risk assets such as mining shares.
Consensus is still very bearish, despite the strong really of late, meaning potential for tardy late-to-the-party upgrades to ratings and target prices. The Brokers were late to see the sell-off, what are the odds on them missing the rally too?
Next Event: Sustainability update, 15 May; Q1 Production, 21 Apr
Latest Broker 12-Month Consensus: 10% Buy, 33% Hold, 57% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Boomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -0.7 | 73.1 | 20.0 | -35.2 | -60.3 | -68.6 | -75.0 | -81.9 | -85.6 |
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