Credit Suisse has an interesting tid-bit on Aussie mining investors today:
While current iron ore and coal prices present the opportunity for further earnings upgrades for some companies, the miners’ ongoing debt reduction focus evidenced in reporting season suggests they don’t believe current prices can persist:
■ Miners’ risk appetite now high – In the last six months, the miners have far outpaced commodity prices. From the number of model requests we now get, it’s clear there is a high level of investor interest and a reluctance to take profit.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
