MARKET TALK: Mining Tax Changes Great For Rio, Xstrata, BHP

2nd Jul 2010 13:11

1211 GMT [Dow Jones] The fact the proposed Australian Resource Super Profits Tax is now to be replaced by a newly titled, and greatly watered down, Minerals Resources Rent tax is great news for the likes of Rio Tinto (RIO.LN), Xstrata (XTA.LN) and BHP Billiton (BLT.LN), says Ambrian. "We continue to recommend purchase of the mentioned miners, on the basis that when we get through this 'economic wobble' investors will find it hard to ignore the value these miners offer in terms of earnings and dividend growth over the next two years." Ambrian reckons EBIT exposures to the new tax would be roughly 70% for Rio, 40% for BHP Billiton and Xstrata and 10% for Anglo American (AAL.LN). Has 3500p price target on Anglo American, 1280p target on Xstrata, 1430p on BHP Billiton and 4700p on Rio Tinto. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 02, 2010 08:11 ET (12:11 GMT)