After a spectacular run, mining stocks are bleeding - and may not stop soon | Fin24

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After an extraordinary run last year, when many of the world's largest mining companies booked record profits and paid record dividends, the commodities cycle has turned, with rising interest rates and inflation stoking fears of further demand destruction

After an extraordinary run last year, when many of the world's largest mining companies booked record profits and paid record dividends, the commodities cycle has turned, with rising interest rates and inflation stoking fears of further demand destruction.

Some of the world's largest mining stocks have lost ground in the past six months, with the likes of BHP and Anglo American falling 31% and 20% respectively. Most major miners now have a breathtakingly low price to earnings ratio of six and below - indicating that their shares are undervalued relative to the money that they are generating.

While there's certainly blood in the water, it may however be a bit too soon for investors to consider plunging back in.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.

 

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