MARKET TALK: BHP, Rio Valuations Fall Slightly Under New Tax -DB

7th Jul 2010 02:32

0132 GMT [Dow Jones] Deutsche Bank says the Australian Government's reworked Minerals Resource Rent Tax is a big win for miners but still results in a small hit to valuations of BHP Billiton (BHP.AU) and Rio Tinto (RIO.AU). Says the MRRT results in a 2.6% decline in net present value for BHP. The decline for Rio is slightly more at 3.2%, since it derives 85% of its operating profit from Australia compared with BHP's 55%. Says the big winners are those excluded from coverage by the reworked tax, like Energy Resources of Australia (ERA.AU), Western Areas (WSA.AU), Panoramic (PAN.AU) and Independence (IGO.AU). ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 06, 2010 21:32 ET (01:32 GMT)