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Key points:
Copper exposure at (ASX:RIO) and (ASX:BHP) seen as a key AI‑adjacent theme via electrification and data centresSubdued gold sentiment but strong cash flows viewed as underpinning active M&A across minersMajor banks facing valuation and regulatory headwinds, yet Blackmore remains wary of shortingHub24 (ASX:HUB) highlighted for record growth, strong inflows and market‑share gains
Andrew Blackmore from Fat Prophets sets out a constructive view on diversified miners, arguing that copper exposure is now a key driver of value. Blackmore points to Rio Tinto’s (ASX:RIO) latest numbers, noting strong double‑digit growth from the copper division, while iron ore remains steady. He suggests Rio Tinto and BHP (ASX:BHP) are increasingly leveraged to global electrification and data centre build‑outs, positioning them as an indirect way to gain exposure to the AI theme in Australia, alongside names such as Sandfire Resources (ASX:SFR) and Capstone Copper (ASX:CSC).
In gold, Blackmore sees sentiment as subdued after the price euphoria of late 2025, yet maintains that many producers are still generating strong cash flows. He highlights this backdrop as fertile for M&A, citing the Genesis Minerals (ASX:GMD)–Dacian Gold merger and Evolution Mining’s (ASX:EVN) bolt‑on acquisition of Carnaby Resources (ASX:CNB), which triggers a sharp share price move in Carnaby.
Turning to financials, Blackmore notes headwinds for the major banks from CGT changes and property market pressures, alongside stretched yet, in his view, broadly justified valuations. He also flags heavy short interest but adopts a contrarian stance, avoiding both aggressive buying and shorting. Hub24 (ASX:HUB) stands out for Blackmore, with record funds under administration, ongoing double‑digit inflows and continuing market‑share gains from legacy platforms.
