Reporting Season Wrap: The Miners

The miners performed well in February during the reporting season helped by a combination of strong commodity prices and  large scale capital management initiatives.

Key points:

  • Actual profit results were reasonable, Fortescue Metals (ASX:FMG) the best in our universe, while BHP had a weaker than expected first half, and is now looking for a strong 2H
  • Capital management was key, however miners are owned for growth and RIO in particular has a growth void in the next few years
  • Remember, miners are cyclical,  the journey from January 2016 lows has now included 6x bull market moves (>20% index moves)  – pullbacks will happen and one now seems likely

MM take:

Large cap miners BHP, RIO & FMG are a ‘sell’ into current strength.

Western Areas (ASX:WSA) Chart