Production downgrade looks clearly linked to the weather. We are coming out of an La Nina and heading into an El Nino. Hence I view weather as a temporary factor. I did take a nibble at $4.05. Price reaction did look out of whack, positioning into the report did hope for more e.g. Goldman raised to buy a couple of weeks ago.
Bullish factors:
- Broad underinvestment in capex across many commodities. I want to be positioned here when cycle turns.
- Diversified miner with no iron ore exposure
- Buyback in place
- Low cost producer
- Healthy cash flows and low net debt
- Some of the inflationary factors that are impacting costs seem to be moderating.
Bearish factors:
- Commodity prices still heavily influenced by China. The reopening has seemed to benefited the services sector more than manufacturing / infrastructure.
- Eventual carbon pricing (alumina / aluminum) is intensive.
- Ultimately commodity businesses are cyclical, it might be early in the downgrade cycle
general, page-6
-
- There are more pages in this discussion • 166 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add S32 (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$2.91 |
Change
-0.050(1.69%) |
Mkt cap ! $13.18B | |||
| Open | High | Low | Value | Volume |
| $2.91 | $2.97 | $2.89 | $61.84M | 21.20M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 57447 | $2.91 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.92 | 22358 | 1 |
View Market Depth
| Last trade - 16.10pm 25/07/2024 (20 minute delay) ? |
| S32 (ASX) Chart |