For me, neither - until the price of iron ore shows signs of an upturn. BHP is the more diversified of the two but then diversification isn't helping when all metal prices are under pressure!
Im reading RIO (a lowest cost producer)has a sustainable yield over 7% and BHP has to borrow to pay a divv!!.This article below is suggesting the mkt is getting down there;am watching.
Rio TintoSales and marketing " China’s steel industry is undergoing a structural change. o Removal of less efficient steel-making capacity and strong demand is supporting steel pricing and currently provides a robust backdrop for high quality iron ore. Shipment guidance for 2018 remains unchanged at between 330 million and 340 million tonnes.
Expected spending of ~$2.2 billion on replacement mines over the next three years including initial spending on the Koodaideri,
West Angelas and Robe Valley developments.
Sustaining capital spending of ~$1 billion per year for the next three years in the Pilbara."
BHP , new $3.2 billion iron ore project too.
Looks like a good few years coming for M/S companies as the cycle enters an active up period. Holding MND indirectly, SRG and a few TPP. What are you into M/S wise.?
What's going to happen in the commodities sector? It looks like something will,to me.
I could be wrong of course but really looks like a bearish pattern to me.!
What's going to happen in the commodities sector? It looks like something will,to me.
I could be wrong of course but really looks like a bearish pattern to me.!
turned out being more of a double top but **** really has hit the extractor now. RIOMarch 2020.jpg
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