Iron ore giant RIO advanced +3.6% on Monday, outpacing BHP, which closed up +1.4%. There isn’t a massive gap between the two miners at this stage, with both basically flat year-to-date, but as we saw last September when they embraced the China recovery story, the upside is exciting. RIO broke above $130 during the initial euphoric spike by ASX miners following stimulus talk from Beijing. Unfortunately, while China-facing stocks have continued to advance, our miners have drifted lower.
- We prefer BHP over RIO at this stage, with the outside chance of RIO raising capital to fund its purchase of Arcadium Lithium.
MM is cautiously bullish RIO
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