My friends, I bring you good news today. Big Australian mining companies finally, finally, understand what investors want.
It’s taken a decade and two changes of CEOs, but both BHP Billiton and Rio Tinto have confirmed in their results that they are now on a clear pathway to less capital being ploughed back into the ground and a greater share of sustainable profits finding their way into shareholders’ pockets. This is a VERY significant moment for both stocks.
Both companies, under new leadership, had promised to be more “shareholder friendly”. That is clearly now occurring, and I believe all of us are underestimating what different animals, and total return investments, both BHP and RIO will be under this new regime.