Chart of the week: The state of mining's biggest players
This week's chart comes from the Australian equity market outlook for Q4.
Mentioned: Iluka Resources Ltd (ILU), Mineral Resources Ltd (MIN), New Hope Corp Ltd (NHC), Vale SA (VALE), Whitehaven Coal Ltd (WHC)
This week's chart comes from Morningstar's latest Mining Industry Pulse for Q3 2024. The report concludes that prices overall are still elevated, supported by China stimulus. Our analysts find value in various commodities.
The report outlines that most miners’ share prices rose during the quarter, driven by increased China stimulus announced late in September 2024. 
The average price/fair value estimate has risen to 1.12 - meaning that the stocks under our coverage are, on average, 12% overvalued. This doesn't mean that the sector is void of opportunity. Iluka ILU is cheap on soft near-term minerals sands demand, but demand will likely recover.
Coal miners Whitehaven WHC and New Hope NHC are materially undervalued, which we think reflects many investors shunning coal. Iron ore miners Mineral Resources MIN and Vale VALE are also among the cheapest and will likely benefit as they increase iron ore sales volumes.
The graph shows that out of the commodities, coal is cheapest with gold screening as most expensive. The weighting of the Australian market towards miners reflects in the Price to Fair Value of the overall market.
You are able to explore more markets and timeframes in our Market Centre.
The full Industry Pulse Report, including a look at our top opportunities, can be found in Morningstar Investor.
