Unlike the AV universe iron ore miners, BHP reported strong results which were a big function of coal market excesses. As a result, impressive shareholder returns were announced. However, we remain wary regarding the sustainability of the FY22 gains/surprises as energy markets may not remain tight for very long – especially given the slowdown risks. Also, with the brewing challenges/risks in iron ore and copper, BHP lacks the diversity to withstand any further deterioration in commodity markets. ....
