[miningmx.com] – THE world’s leading mining companies were in a battle for survival with investors seeking more evidence of capital discipline before committing to the sector, said Reuters citing analysts.
“The picture has shifted to survival. With prices where they are, you wouldn’t expect any of the majors to think about big buybacks,” Nik Stanojevic at British wealth manager Brewin Dolphin told the newswire service.
He was commenting ahead of the financial results reporting season which will see the likes of Glencore, BHP Billiton, Rio Tinto and Anglo American fall under the microscope.
“If BHP can keep the dividend flat, if Rio Tinto can grow it modestly, then I think that will be seen as a positive outcome,” Stanojevic said, adding that BHP is his favourite stock in the sector by virtue of its high dividend yield.
“Rio Tinto is going to be the one to beat for me,” Bernstein Research analyst Paul Gait told Reuters. “It’s got a better asset base, a more focused management and it’s been quicker than the others to cut costs,” he said.
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