Are FTSE Mining Companies Cheap Right Now?

Mining companies are operating in a challenging environment but could now be the time to top up on commodity companies?

Alanna Petroff 24 August, 2012 | 10:38AM

Alanna Petroff:  A handful of FTSE 100 mining and commodities companies reported earnings this week. We heard from Glencore, BHP Billiton and Kazakhmys. Meanwhile, Lonmin on the FTSE 250 is facing major troubles after bloody clashes at its mine in South Africa. These developments have meant that commodity companies have been top of mind for many investors in the markets this week. Plus, miners do play a big role on the FTSE 100. So when miners are going up, generally the whole market starts moving up and vice versa. 

Is a company worth the price that the market is asking for its shares?

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Anglo American PLC1,899.20 GBX1.34
BHP Billiton PLC1,700.60 GBX1.09
Glencore Xstrata PLC175.90 GBX1.76
Kazakhmys PLC531.20 GBX3.63
Lonmin PLC  
Rio Tinto PLC4,659.50 GBX1.03

About Author

Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.

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