UBS view on Aussie miners mixed on slowing commodity demand outlook

Gold Road Resources

12/10/2022 05:19

** Analysts at Swiss investment bank UBS expect commodity
demand slowing over the next six months, with supply outlook for
commodities mixed
    ** Says rapid inflation and higher interest rates affect
demand in developed markets, while zero-COVID policy and
property market woes impact consumption in China
    ** Expects supply of copper and iron ore to lift over the
coming year on new project ramp ups, while that of aluminium,
zinc, coal and gas set to remain disrupted
    ** Believe risk vs reward for miners is improving and
long-term value is emerging, particularly for commodities with
robust demand outlooks, such as energy transition metals - UBS
    ** Lender prefers BHP Group Ltd  BHP.AX  over Rio Tinto Ltd
 RIO.AX ; preferred diversified miner is South32 Ltd  S32.AX ,
with Northern Star Resources  NST.AX  and Gold Road Resources
 GOR.AX  its top gold picks
    ** Brokerage rated "buy" on most gold miners - NST, GOR,
Evolution Mining  EVN.AX , among others - diversified miner S32,
bulk miner Mineral Resources  MIN.AX , base metals Sandfire
Resources  SFR.AX , and battery metals miners like IGO Ltd
 IGO.AX  and Allkem Ltd  AKE.AX 
    ** Australian mining index  .AXMM  down 4% so far this year,
as of last close, vs a 10.7% decline in the ASX 200 benchmark
index  .AXJO 
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))