Rudi's View | 3:33 PM
An update on Best Buys and Conviction Calls in Australia.
By Rudi Filapek-Vandyck, Editor
The price of diesel is the real burden that is hovering over the Australian economy --apart from forthcoming RBA rate hikes-- and investors should pay attention as those impacted include the local mining industry.
A recent sector report on gold miners by Goldman Sachs estimates the sector will be spending between 15%-20% more in FY27 while only increasing volumes by some 5%.
Diesel, labour, contractors and consumables are all contributing to rising costs.
Put one and one together and the combination suggests there will be tears and disappointment down the track, even if the price of gold might not weaken by the time the next market updates are due.
For sector exposure, Goldman Sachs favours Newmont Corp ((NEM)) among large producers for its diversified assets and balance sheet strength.
Ramelius Resources ((RMS)) is preferred among mid-caps, where stocks carry a broader risk discount.
Ramelius remains on the broker's Conviction Buy List.
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