Mining Sector Cheap; Gold a Winner

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"The mining sector is ripe for mergers and acquisitions, with tight supplies of metal."

Mineweb, Susan Thomas

The mining sector is ripe for mergers and acquisitions, with tight supplies of metal, still solid demand, and share prices that have suffered this year, said Neil Gregson, co-manager of J.P. Morgan Asset Management's Natural Resources fund.

"The whole sector is very cheap. Macro concerns have been increasing, but it's a pretty robust sector in terms of balance sheets, margins and cash flow," said Gregson.

"For base metals the capital costs have been rising and with the setback in equity prices it's pretty obvious that these companies should be looking to acquire, so we will probably see more of that.". . .View Full Article

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