EXTRACT only, from The Aust today
IN 11 HOURS | 9.44PM
Iron ore miners face ‘upgrade risk’: Macq
Macquarie sees “upgrade risk” for iron ore miners with spot prices 35 per cents above its forecasts for the next two years, even though cost pressures are “emerging”.
It says a spot price scenario generates earnings upgrades of 40 to 60 per cent for BHP, at least 50 per cent for RIO and at least 100 per cent for FMG.
“Despite strong share price moves BHP and RIO are trading on attractive CY19 spot free cash flow yields of 12 per cent while FMG’s remains above 20 per cent,” it says.
It comes as spot iron ore prices appear poised to surge toward $US100 a tonne when China comes back from lunar new year holidays.
That follows Vale’s declaration of Force Majeure after a court ruling stopped production restarting after last week’s mining disaster in Brazil.
EXTRACT only, from The Aust today IN 11 HOURS | 9.44PM Iron ore...
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