MARKET TALK: Aussie Tax Change Good News For Miners -RBS Morgans

2nd Jul 2010 02:22

0122 GMT [Dow Jones] RBS Morgans lists beneficiaries of Australian government dumping proposed resources super profits tax in favor of mining resources rent tax, in descending order, as ERA (ERA.AU), OZ Minerals (OZL.AU), Alumina (AWC.AU), Newcrest (NCM.AU), OM Holdings (OMH.AU), Iluka (ILU.AU). Sees no impact on these companies, under MRRT, versus -4% to -26% net present value impact under RSPT. For coal miners, sees NPV impact falling from 5%-10% under RSPT to less than 5% under MRRT. For iron ore miners, broker says Fortescue (FMG.AU) biggest beneficiary. Says BHP (BHP.AU), Rio Tinto (RIO.AU) are trading well below their valuations and are cum upgrade. Recommends buying diversified miners, copper miners, FMG, OMH, ERA, OZL, AWC. Index last up 0.2% at 4247.5. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 01, 2010 21:22 ET (01:22 GMT)