Hi Manish,
I believe our actions on Wednesday tell the tale when we added to our BHP Group (BHP), OZ Minerals (OZL) and IGO Ltd (IGO) positions i.e. we believe the Resources Sector is now offering value after plunging on heightened recession fears. However while we believe the miners are “looking for a low” considering our outlook for the 2nd half of 2022 we still wouldn’t be surprised to see another leg lower where we would probably add a stock to the portfolio with both Pilbara (PLS) and South32 (S32) prime candidates.
1 – South32 (S32) This diversified miner has been out of favour in 2022 as its slipped ~36% from is March high, at this stage we are neutral around $3.50 seeing no obvious catalyst to take on the trend.
2 – Pilbara Minerals (PLS) $2.45 – the EV / ESG space had become a very crowded theme through 2022 which made it easy for the stock to fall almost 50%. Short-term we can see a bounce towards ~$2.75 but for now this is a stock we would prefer to buy into aggressive sell offs as opposed to strength.