The shares have been weak and volatile performers this year, driven by near-term risks surrounding the outlook for global growth and higher industry costs. However, we are positive on the stock, and believe it is a highly liquid way to gain exposure to long-term emerging market growth.
CAILEY BARKER NUMIS
Underlying earnings of $5.2bn is a small beat on consensus at $5.04bn, down 34 per cent on lower prices. Outlook in line with rest of other players with lower prices but continued strong earnings and cashflows. Order books remain full and Chinese GDP is expected to be 8 per cent in 2012.
RICHARD KNIGHTS LIBERUM CAPITAL
Iron ore weaker than expected, underlying earnings $4.7bn and difference at the revenue line is likely weaker than anticipated iron ore realisations. Given our expectation of strength in iron ore from Q4 when the Chinese stimulus plans we remain buyers.