Shares of Australian Mining Majors Show Mixed Performance After JPMorgan Raises Iron Ore Price Estimate
Major Australian mining stocks returned a mixed performance in recent Tuesday trade after JPMorgan increased its long-term iron ore price estimate.Shares of Rio Tinto Group (ASX:RIO) and Fortescue (ASX:FMG) gained less than 1%, while BHP Group (ASX:BHP) was fractionally lower.JPMorgan analyst Lyndon Fagan said the bank raised its long-term real iron ore price forecast to $90 per tonne from $80, and also increased its near-term price estimate by about 5%, the Australian Financial Review reported.The bank reportedly cited increasing cost inflation, weaker ore quality, and a Chinese steel market that has been more resilient than anticipated.JPMorgan continues to prefer BHP and Rio Tinto, saying their valuations are still reasonable even after gains in their share price this year, while maintaining a cautious stance on Fortescue, according to the report.