Australia’s small iron ore miners are reporting record amounts of cash on their balance sheets, and together are sitting on around $1 billion, according to an article in The Australian.
But at least one analyst told the newspaper investors would rather see cost-cuting than a lot of money handy.
Here’s what RBS Morgans analyst James Wilson said in the article:
“People want to see those cost-cutting measures, whether you’re making money hand over fist or not.
“They want to see everyone pulling their head in.
“The reason the iron ore equities are being priced as they are is because people don’t believe the longevity of the iron ore price high. The cash conservation and being smart with their dollars is more important.”
Read more here.
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