HUMPHREYS

The virtues of recession

The market rally in the first half of this year has come as a relief to embattled miners and prompted speculation that the worst is now behind us.

Mining operations are yet to make the cuts necessary to simulate a sustained price recovery (image: BHP Billiton)

Mining operations are yet to make the cuts necessary to simulate a sustained price recovery (image: BHP Billiton)

While it is entirely possible that prices have passed their low point, it does not follow from this that a sustainable recovery is imminent or that the supply side adjustment is complete. More likely,...

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