Share Prices of the Miners Recover Quickly from Coronavirus, now Modestly Overvalued

As swift as the coronavirus sell-off was, the recovery has been rapid. The S&P ASX 200 resources index has added nearly 20% from our last update in mid-April. Massive central bank and Chinese government stimulus has boosted commodity prices. The Australian miners under our coverage were cheap in the depths of the downturn, trading at more than a 20% discount to our fair value estimates on average in late March. But the sale was brief and the Australian listed mining shares we cover now trade at an approximate 8% premium to our fair value estimates versus a 5% discount in our last update in April.