The miners performed well in February during the reporting season helped by a combination of strong commodity prices and large scale capital management initiatives.
- 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
Western Areas (ASX:WSA) Chart