Investors looking to buy into miners obviously are heavily influenced by commodity prices, which are largely driven by Chinese demand. There is more than the usual amount of uncertainty about how the Chinese economy is travelling, but China has once again lowered its interest rates in order to stimulate the economy, and Beijing has signalled that it is also prepared to pull the fixed-asset-investment lever to rejuvenate its economy.
Most commodity prices should be able to at least hold at current levels: despite economic uncertainty, the fact is that there is not much in the way of new capacity coming to market to drive prices down. Miners have been mostly busy replacing volume from declining assets, rather than developing new capacity.
Here’s a look at five mining situations, across different commodities, that appear to be good value at present.