FVEs Reduced for Most Miners on Lower Commodity Prices Driven by Recession Fears and China Slowdown

Commodity prices have generally fallen over the second quarter of 2022 as central banks try to regain control of inflation, raising interest rates faster than many investors expected. This has led to fears of recession and lower demand for many commodities, with China’s attempts to contain COVID-19 also a drag. After updating our commodity price assumptions, the fair value estimates for most miners on our coverage fall. We think gold miner Newcrest remains cheapest, trading at around a 40% discount to our unchanged fair value of AUD 33 per share.