So, it wasn’t a great week for ASX 200 mining stocks last week. The S&P/ASX 200 Resources Index (ASX: XJR) finished the week down 5.36% and the S&P/ASX 200 Materials Index (ASX: XMJ) was also down 5.38%. Meantime, the S&P/ASX 200 Index (ASX: XJO) faltered just 0.68% to finish trading last week at 7,473 points.
But for a few of the mining giants, the week was worse. Let’s take a look.
BHP Group Ltd (ASX: BHP)
The BHP share price tanked 7.64% last week to finish trading at $48.49 on Friday. On Thursday, the Big Australian released its March quarterly activities report. It noted that coronavirus-related labour disruptions weighed on many of its operations. BHP management reaffirmed the FY22 production guidance for iron ore, metallurgical coal, and energy coal but lowered it for copper and nickel.
Broker Citi says BHP is a buy and has upped its share price target to $56. As my Fool colleague James wrote last week: “While the broker concedes that BHP and its peers have underwhelmed during the March quarter, it thinks investors should overlook this due to the significant cash flow the company is generating thanks to sky high commodity prices.”
Rio Tinto Limited (ASX: RIO)
The Rio Tinto share price fell 5.73% last week to finish trading on Friday at $113.60. The mining giant also released a quarterly update last week that appeared to disappoint ASX investors. It reported production declines but Rio management said things will improve and reiterated its full-year production and cost guidance.
Citi likes Rio Tinto shares and rates them a buy with a $135 price target. As my Fool colleague Aaron reported last week, Goldman Sachs reckons Rio Tinto will pay the biggest dividend among the top three miners in 2022. The broker projects dividends of US$9.30 in FY22 and US$8.90 in FY23.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price did better than BHP and Rio last week. It fell by 1.8% to finish trading at $21.22 on Friday.
As my Fool friend Aaron wrote last week, two brokers price Fortescue shares at $16 but this represents an upgrade by one of them and a downgrade by the other. A recent broker note from RBC Capital Markets raised its rating on Fortescue shares by 6.7% to $16, while Citi slashed its outlook by 5.9% to $16.
This implies a potential downside of 24.5%.
After capping off a disappointing four days, ASX 200 mining stocks also look set for a poor start to this week. As we reported this morning, the latest SPI futures point to the ASX 200 trading lower again today amid falling commodity prices and fears over rising COVID-19 cases in Beijing.