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HomeMongolia NewsAntofagasta Looks Overvalued, Turquoise Hill Is A Better Choice

Antofagasta Looks Overvalued, Turquoise Hill Is A Better Choice


My Investment Thesis

Antofagasta plc (OTC:ANFGF), a large copper producer with assets in Chile, looks overvalued relative to its peers in terms of valuation multiples, key operating metrics, and prospects – the risk-reward ratio seems to be not on the side of a potential investor. At the same time, Turquoise Hill Resources Ltd. (NYSE:TRQ), a more diversified company with a low valuation and a global footprint, is a much better buy at current share price levels with a dividend yield of over 13% per annum.

General Bird’s-Eye View

In my opinion, we should always keep the demand side and the efficiency of its satisfaction in mind when making investments. This applies to all industries, and mining is a prime example.

We are dealing with a sector where there is one big consumer – the Chinese economy, which currently consumes more than half of the world’s copper and steel supply – that sets the tone for all other players and…

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