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I have already pointed out reasons NOT to buy trust funds in RISKY assets many times to people whom do t understand complexities about it.
Only buy what you CLEARLY understand.
Miners have been cutting dividends for past 12-18mths, thus these funds will suffer on both front income and performance.
Stay away from BRWM .
bhp have just announced divi cut that has been expected by 25%.
looks likely rio will follow, after anto***asta cut there’s too today.
nasdaq analysts have good views to follow for future expectations.
vale are due to cut too on 23rd too by some.
therefore, rio will drift lower, back to 5000p i believe by graphs i’m watching
Why buy a fund of miners? Well, Gary tells us he is inexerienced so he will be guessing on any purchase of individual stock. Let's mitigate Gary's risk buy giving him the opportunity to buy a portfolio of stocks with a nice 7% yield and very low risk.
I would say to Gary - why pay nearly 1% pa when you can hold the top holdings directly yourself in shares? It's more fun, and you can vary the proportion of each to suit your preferences.
On BRWM, I’d say VALE has been biggest concern vastly underperforming all BHP & RIO significantly including dividend which was cut too.
Further to my point
https://www.fool.co.uk/2023/12/09/here-are-the-bhp-rio-tinto-and-glencore-dividend-forecasts-for-2024/
Iv been here since 2008 / 2009 and been drip feeding each yr on both
Maybe I spoke too soon!
https://www.proactiveinvestors.co.uk/companies/news/1040292/scale-of-blackrock-world-mining-trust-dividend-cut-may-surprise-investors-analyst-1040292.html
Gary. You could do a lot owrse than buy BRWM - Blackrock World Mining Trust. 7.9% divi with about 0.8% costs so 7% net. Top 10 holdings below.
BHP 9.6%
Glencore PLC 9.3%
Rio Tinto PLC 8.1%
Vale SA 7.6%
Freeport-McMoRan Inc 5.6%
Newmont Corp 3.9%
Barrick Gold Corp 3.5%
Wheaton Precious Metals 3.3%
Vale S.A. 3.1%
Volatility based upper bollinger band price target is 5585, for daily. The monthly upper bollinger band, price target is 5602. DYOR.
Uptrendline from 16/8/23, restored by gapup today to above 5400. Also break above downtrend line from peak of 2/1/24, both contributing to a bullish positive outlook for RIO.
Thought I just add my tuppence again about a divi cut approaching.
If you’re only holding this for a dividend income, beware as dividends are not going to guaranteed anywhere near 2021-22 levels
With higher material costs and lower demand there is there is going to be lower profits obviously.
So, as my broker was against me buying into BHP for this reason in 2021, he was right due to continual downward trajectory on divi and eps, but have held since 2008/09, topping up along the way. Not at the minute I’m not.
I have found this to add for everyone
Divi info
BHP 2024 expected 158c compared to 171c 2023 152c for 2025, 142c for 2026.
RIO 2024 expected could actually rise from 2023 levels to 476c from 422c, 2025 expected 439c.
There is also an article on fools.co.uk siting future cuts to aid growth for BHP due to higher costs and divi cuts too to read.
As iv been here since 2008/09 I’m not bothered, as I’m just watching another New World create and send us another direction.
Gla
My other trades have been in October here and GOOG, CVX & DGE in Jan
Hi Gary. I have held BHP & RIO for some years and look forward to returning to 62--- at some point soon. However, I cannot help but feel it is all down to general global recovery which for me is cheap financial money hence reduced central bank interest rates. As a novice I used to invest according to divi rates but have learnt - to my expense that stock paying divi today can stop tomorrow plus the inevitable stock price variation for exp dates etc may swallow the gains. There is a site called dividenddata.co.uk for up to date declarations. I am sure that there are others on here with differing opinions and know more than I. FYI is bought at 53.36 some years ago and £93 down overall (excluding divi payments)
Best wishes....
Dear posters, although I’ve been investing for some years I’ve never brought into this sector so am hoping to learn from those more experienced ... be gentle please!!
I have built up a decent holding in excess of 200K through a bit of trading & rising SP’s elsewhere & am currently fully in cash sitting in ISA's. I'm now at a stage of my life where I will be holding companies long term & will be investing for dividend income. I am looking at buying one or all of GLEN, AAL or RIO & am posting here as part of my research. Many thanks for any advice & who to buy, not to buy etc ... (also posted on GLEN & RIO)
Citi reiterates US$150 per tonne forecast for iron ore as China pledges more support for its economy:
https://twitter.com/proactive_au/status/1753247375966023833
Chinese stimulus boosting big miners
While technology stocks have been one of the main engines for world market growth, it was the decidedly old-fashioned and familiar prospect of China stimulating its economy that helped the Australian stocks higher on Thursday.
Iron ore futures in Singapore pushed prices for iron ore above $US136 a tonne for the March contract as investors reacted to news that the governor of China’s central bank was looking to reduce the reserve requirement ratio for banks within two weeks.
Naturally that lifted the share prices of the big iron ore miners with BHP (ASX: BHP), Rio Tinto (ASX: RIO) and Fortescue (ASX: FMG) all up at least 1.5%.
Traders now are sure that the Chinese authorities are working hard to breathe some life into their suffering share market and feeble economic outlook and that is overcoming the resistance to stimulate the economy.
That should mean more iron ore exports at higher prices, which is great news for shareholders in the big miners and for the Australian tax base as well.
Helping the bullish case for iron ore was news from Fortescue that it expected to meet its production guidance for the current financial year, with iron ore shipments close to record levels in the first half.
The weakness in technology stocks is an understandable reaction to a sharp slowdown in Tesla sales, which led to a chunky 5% fall in shares of the US automaker.
That fed into a 0.7% fall in the local Australian technology index.
Also regarding this ‘PB’ causing many empty flats / offices all for what?
There is around 20% of properties empty, this that ghost town is still visible having spoken to a friend whom has family over there.
As we all know China is Rio’s main customer, as 70%+ goes there. Though looking at what is happening in Europe/Asia, you might think otherwise with the destruction in Ukrain3 / Isra3l / Gaza.
I would not be a buyer at these levels after the steady climb over the last few months from 50’s to 55’s.
There will possibly be a rerating downward. I’m a holder and have been from October 2008 and been accumulating every yr.
Here’s is an article to help back up my view on seekingalpha
https://seekingalpha.com/article/4661252-rio-tinto-iron-copper-prices-likely-crash-2024-china-stimulus-fails
China will cut the reserve requirement ratio for banks in early February to unleash more money and help the economy:
https://twitter.com/markets/status/1750062638837518525
Like BHP, I see another cut to dividend looming, due to economic slowdown worldwide.
Both Nasdaq & Morningstar have a few articles about this for all miners over next few year.
I’m a holder here, have been since 2008/2009 and BHP.
Why is Rio’s dividend falling?
Rio Tinto is one of the biggest mining businesses in the world, but its profits are still closely tied to the price of iron ore. This steelmaking ingredient is produced from giant low-cost mines in Western Australia and generates around 80% of Rio’s profits.
In 2021, iron ore prices spiked to all-time highs. Rio’s profits for the year rose to $21.4bn, almost double the $12.4bn reported in 2020.
These high prices left the company with a lot of spare cash at the end of 2021. This allowed management to declare a record dividend of $16.8bn, or $10.40 per share.
After a year like this, 2022 was always likely to be a let-down. Sure enough, Rio’s profits fell to $13bn last year, as energy costs rose and commodity prices returned to more normal levels.
The 2022 dividend was scaled back to reflect lower cash generation. Shareholders received an $8bn dividend, or $4.92 per share. Although that’s a 50% drop from 2021, it was still a very good performance compared to any other year in the company’s history.
China is considering selling $139 billion of special sovereign bonds in yet another bold stimulus effort, sources say:
https://twitter.com/economics/status/1747180812397691368
This is in addition to the ¥1Trillion #infrastructure stimulus announced at end of 2023.
For those without Apple News...
"The world’s biggest mining project, a $20bn iron ore, rail and port development in a remote corner of west Africa, is expected to start this year after a 27-year wait beset by setbacks, scandals and several false dawns.
UK-listed Rio Tinto first secured an exploration licence in the Simandou mountains in south-eastern Guinea, 550km from the coastal capital, in 1997. Since then the country of 13mn people has had two coups d’état, four heads of state and three presidential elections.
In that time, Rio Tinto has had six chief executives, lost half the licence, fought drawn-out court battles with several corporate rivals, settled corruption allegations with US authorities and even sought to exit the project completely, only for the sale to fall through.
Finally, in 2024, once Rio Tinto’s state-owned Chinese partners receive the last approval from Beijing, the Anglo-Australian miner intends to fire the starting gun on the most complex project in its history."
Yes and the ore price is still climbing this morning, just has to be good for RIo.
Iron Ore Advances After Xi’s Pledge to Strengthen China Economy:
https://twitter.com/markets/status/1742167100917969372
Xi promised in a televised message to the nation Sunday to “consolidate and strengthen the momentum of economic recovery, and work to achieve steady and long-term economic development.”
Beijing is expected to target growth goal of around 5% in 2024