Why would we want a debt laden tier 2 trucking iron ore business with governance issues and continual trucking route issues? Heck they sold half the haulage roads just to reduce debt. The difference with BHP and RIO and a lesser extent FMG. Is that they own all their infrastructure/rail and its world class. Iron ore is a rail game, better margins.
BHP has over 30bt of high grade ore all close to its infrastructure. Why would it want MIN? A far away trucking operation that isn’t even at nameplate, of which is currently marginal at historically high iron ore prices. Yeah no thanks. A good reason that stock fell 20% today. Albeit high risk high reward. Lithium also - stay away. Appears brine is the way which RIO has invested in. Don’t bother competing.
BHP continually says it’s after generational long life assets with low costs. It’s a good strategy. Sure it won’t boom like other miners in the good times, but you can sleep at night and not lose it all. In the downturns it still does well.
BHP Price at posting:
$40.98 Sentiment: Buy Disclosure: Held
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