Equity Strategy
Major Miners - Can the Party Continue?
Thu 11th February, 2021

The share prices of the major miners are trading at close to 12-month highs following an extraordinary 2020 that contained both a global recession and the largest global stimulus program witnessed post-war. This has investors rightly asking whether the party can continue?

There are few sectors where the expected direction of key input(s), namely the commodity price(s), can make as much difference to earnings as we see in the resources sector. With a volatile commodity price(s) dictating much of your earnings, can investors make reliable investment decisions when looking at the earnings multiples or dividend yields of the major miners?

To help investors weigh up valuations and the cycle for the major miners, we delve into:

  • The resources earning cycle
  • Valuation challenges
  • Earnings multiples
  • Management signals
  • The nuances of this cycle
  • What equity prices imply

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    Written by

    John Lockton , Australian Equities

    John is a leading investment strategist with 20 years experience.

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