Commodity Prices

: Reflecting this uncertainty, analyst valuations vary widely, with Morgan Stanley predicting it may start with a market worth of A$8.5 billion and Investec around $12 billion, according to Euro News. I think a focused management team will be able to extract the best value for those assets over time. But the new company, South32, risks a tough May 18 debut on the Australian bourse, with investors nervous about weak commodity prices, short mine life spans and declining ore grades. But if commodity prices are weak, it going to be a bit more problematic, said Paul Xiradis, chief executive of Ausbil Investment Management, a BHP Billiton Ltd shareholder. Those assets generated underlying earnings of $446 million on revenue of $8.3 billion last year. Named after the 32nd parallel south line of latitude that links its main business centres in Perth and Johannesburg, South32 will produce alumina, aluminium, coal, manganese, nickel, silver, lead and zinc from mines and smelters in Australia, Brazil, Colombia, South Africa and Mozambique. (news.financializer.com). As reported in the news.

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