While the price of iron ore rebounded 28% in 2016, the share prices of the JSE’s iron ore miners rocketed far more. The share prices of Kumba Iron Ore and Assore nearly quadrupled, making them the best stocks to have bought at the end of 2015 and held over 2016. For BI’s long-term investors, however, 2016’s rebound has only taken its share price back to June 2015 levels. The R159 per share Kumba ended 2016 at is nearly a quarter of its R611 peak reached in February 2013. For the JSE’s index of its 10 biggest resources groups, 2016’s 26% rise marked its first gain since 2010. Over 2015 the resources 10 index lost 39%. That after it lost 17.8% in 2014. Investors who bought the Satrix Resi exchange-traded fund that tracks the resources 10 index saw their investment halve from R56.48 in 2010 to R25.61 at the end of 2015. The rebound in 2016 to R32.80 still leaves those investors 42% out of pocket over the past six years. All but two of the 10 best-performing constituents of the JSE’s al...
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