Base metals mining companies look cheap - for a good reason

The link between stock valuation and base metals price has further broken down. There is a reason for this poor valuation. Costs are increasing and commodity prices are falling. Profits are being squeezed. BHP put appovals for $68 billion in new projects on hold with the dip in profits. Net income for BHP dropped by more than 50% from $13.1 to $5.5 billion over the last year. Spending plans are down with the decline in income. BHP is representative of the industry. There is limited money to be made in mining. The pricing power in coal, iron ore, and other base metals is non existent.