Analyst Note
| Mathew Hodge, CFA |Of the diversified majors, we now think BHP is the cheapest, trading at close to a 10% discount to our fair value estimate. We lower our fair value estimates for our iron ore-exposed miners Fortescue, Vale, Rio Tinto, BHP, and Deterra Royalties by about 30% to AUD 10 per share, 30% to USD 13 per share, 4% to AUD 89 per share, 5% to AUD 39 per share, and 7% to AUD 3.35 per share, respectively, after incorporating the lower iron ore futures prices given the significant softening in Chinese demand.