Broker Barrenjoey said listed miners are set to reveal the hit from rising cost pressures this earnings season, but those businesses enjoy a strong outlook as limited supply and soaring demand supports elevated commodity prices.
Barrenjoey mining analyst Daniel Morgan said coal prices are a potential beneficiary of climate change. “I think Lynas could beat expectations,” he said. “Last quarter the town water supply they used to run their plant had a catastrophic event and that issue’s been fixed. They’ve got the opportunity to get the plant flat out, so I think there’s upside risk to the numbers.”
In the hot lithium space, Barrenjoey is neutral rated on Pilbara Minerals and said it expects the West Australian producer to maintain spodumene production guidance for financial 2023.
Top is in. Time to sell!