Commodity prices are crashing. From oil, gold and coal to nickel, copper and iron ore, the demise of China’s investment-led growth model has been crushingly brutal on both commodities and equity prices. We’ve responded to the carnage by selectively upgrading stocks; South32 is terrific value now and we’ve suggested gingerly buying BHP Billiton as it struggles through its operating crisis.
What then, of the second largest miner on the market? Is Rio Tinto also worth buying?
Rio has forsaken diversification
Iron ore earnings hard to replace
Free cash flow to increase