Golden age of mining returns may be hard to sustain

Original article by Peter Ker
The Australian Financial Review – Page: 11 & 16 : 7-Aug-18

The proceeds of large Australian miners’ asset sales will boost shareholders’ returns in 2018, but Plato Investment Management MD Don Hamson cautions that investors must lower their future expectations. He argues that miners have limited scope to maintain high returns via asset sales, and the "golden age" for shareholders must end. However, Camille Simeon of Aberdeen Standard Investments and Brenton Saunders of Pendal Group contend that large miners such as BHP can keep rewarding investors by constantly refreshing their portfolios.

CORPORATES
PLATO INVESTMENT MANAGEMENT LIMITED, ABERDEEN STANDARD INVESTMENTS, PENDAL GROUP LIMITED – ASX PDL, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, NEWCREST MINING LIMITED – ASX NCM, WHITEHAVEN COAL LIMITED – ASX WHC

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