The obvious choices of Au and Li are well off the bottom of...

The obvious choices of Au and Li are well off the bottom of their cycles though - I like the idea given the noise, but will you get a good asset at good value and how long before they hit their peak?

I'd think MGX can look for beaten-up commodities outside IO that have bottomed and grab one or two big plays in those to become more diversified.

As long as they are long life and low cost assets relative to long run average prices the firm will have a nice re-rating and great future.

If they can't do this then I agree that returning capital is the best option.