Diversified miner BHP has noticeably outperformed both FMG and RIO through 2022 and we won’t be fighting the trend until iron ore shows signs of bottoming i.e. BHP is a lower Beta play towards the bulk commodity with Iron Ore contributing around 50% of its revenue, noting their 4 diversified pillars that have a greater focus on decarbonisation than both FMG & RIO. i.e. Copper for renewable energy, Nickel for electric vehicles, Potash for sustainable farming, Iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition.
- BHP remains our preferred vehicle for upside to iron ore & other commodities.
MM is long and bullish BHP
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