Bhp Share Discussion Threads

[penandnen] 16/4/2024 15:17

Too tempting! Just used last of my ISA cash to add here. Time to consider shovelling in this year's allowance?

[garycook] 02/4/2024 07:10

BHP completes the divestment of Daunia and Blackwater
BHP and Mitsubishi Development Pty Ltd (MDP) have completed the divestment of the Blackwater and Daunia mines to Whitehaven Coal.

Daunia and Blackwater were part of the BHP Mitsubishi Alliance (BMA) metallurgical coal joint venture in Queensland. Each of BHP and MDP hold a 50% interest in BMA.

Whitehaven Coal has paid BMA US$2.0 billion cash consideration on completion plus a preliminary completion adjustment of US$44.1 million for working capital and other agreed adjustments (100% interest basis). Whitehaven Coal paid a US$100 million deposit on signing of the Asset Sale Agreement on 18 October 2023.

US$1.1 billion cash remains payable by Whitehaven Coal to BMA over 3 years after completion and a potential additional amount of up to US$900 million in a price-linked earnout may also be payable by Whitehaven Coal to BMA over 3 years (100% interest basis). The price-linked earnout is subject to a cap of US$350 million each year and depends on average realised pricing exceeding agreed thresholds for each of the 3 years following completion on 2 April 20241.

The total cash consideration for the transaction will be up to US$4.1 billion plus the final completion adjustment amount.

[action] 17/3/2024 23:54

Iron ore slumps below usd 100 dollar

[loganair] 26/2/2024 10:58

Miners are set for a bumpy ride by Rhodri Morgan:


The UK’s major miners face multiple challenges.

The first of these is operational – Glencore and Anglo American, two of London’s largest commodity outfits, have bled profits in 2023.

For the former, adjusted EBITDA fell by 50 per cent year-on-year to $17bn in 2023 while Anglo American saw a net profit fall of 94 per cent.

Glencore is really struggling to reckon an attempted exit of its legacy coal business, one that delivered $17.9bn EBITDA in 2022 – more than the groups entire return in that metric for 2023.

It is instead putting down a roadmap towards essential metals for the energy transition; nickel, cobalt and zinc.

Anglo is also trying to dial in on battery metals but remains heavily tied to another poorly-performing asset class – Platinum Group Metals (PGM), used in the diesel and petrol car industry.

Alongside a wheezing diamond market, PGMs cost Anglo around $5.5bn in revenue in 2023.

The problem across the board for miners, not just Anglo and Glencore, is that this isn’t the good old days.

Miners had rarely been as profitable in recent history as they were in the immediate aftermath of the pandemic, which effectively ignored individual market permutations and sent all commodities skywards.

Now, mining sub-sectors are off the ride and are starting to reconfigure individual supply-demand dynamics and that is where the underlying issues are coming to the fore.

The nickel market, for example, has dramatically over-estimated short-term demands resulting in a market flood and pain for those with exposure.

Exacerbated by a supply monopoly from Indonesia, miners with exposure like Glencore are struggling to sell the metal at a lower market price, and further hampered by dramatic increases in operational costs versus what they were a decade ago.

The firm has firmly felt the nickel bite, announcing the sell-off of its stake in the Koniambo mine in New Caledonia after a profitless decade.

The head of French metal mining group Eramet said last week that Indonesia would effectively render “old traditional players structurally non-competitive̶1; for the foreseeable future.

Nevertheless, the firm’s chief executive Gary Nagle is determined to spin off Glencore’s coal businesses to the U.S in favour of making UK-based operations more green metal focused – an uphill battle for the foreseeable future.

China is continuing to weigh on miners too as its copper-hungry property business remains subdued despite state efforts to wake it up.

Firms like Anglo are sitting on ageing assets and analysts know that major projects need to be found pretty quickly to avoid slipping further into the mooted steep production deficits.

But Anglo faces a challenge not shared as acutely by its competitors like Glencore, Rio Tinto or Vale in that its portfolio is attempting to cater for two inversely expanding ends of the motoring market.

The costly revenue shortfalls from its PGM group in 2023 are in large part attributable to stalling petrol and diesel vehicle demand. And with battery metal demand bottoming out too, the firm is stuck between a rock and a hard place.

Glencore and Anglo are not Shell and BP. In market cap terms at $45bn and $23bn, they might look like they hold relatively comparable positions within the London-listed market.

But miners are far more exposed to market volatility owing to the demand in sectors they feed.

For now, both Glencore and Anglo can weather instability through manageable debt piles and the resources to try and pivot in whatever way possible to drive profitability.

But investors should strap in for a bumpy ride.

[loganair] 21/2/2024 15:30

Glencore, even worse off.

[anhar] 20/2/2024 09:11

H1 divi down 20% from US90¢ to 72¢.

[gateside] 19/2/2024 22:12

Today, we announced underlying attributable profit of US$6.6 billion for the half year. We also announced an interim dividend of 72 US cents per share – a total of US$3.6 billion, equating to a payout ratio of 56%.

[gateside] 19/2/2024 22:10

hTTps://www.bhp.com/news/media-centre/releases/2024/02/bhp-results-for-the-half-year-ended-31-december-2023

[loganair] 01/2/2024 17:46

It always seemed foolhardy to me for BHP to sell the coal assets just to go WOKE and look good while India is buying coal left,, right and centre to keep their lights on.


There was plenty to get excited about at the start of the decade as carmakers from Tesla, Volkswagen and BYD wanted to ensure they had enough lithium, nickel and cobalt for what was hoped to be sustained rapid uptick in EV sales. The price for all three ingredients at least doubled roughly between 2021 and 2022. But they have since gone into reverse as deliveries of new EVs, while still growing, are lower than many expected and manufacturers like Ford Motor and General Motors have cut investments.

At just over $16,000 a tonne, for example, the price of nickel has almost halved over the past 12 months, with a glut of cheap supplies from Indonesia prompting concerns it could be a structural rather than cyclical shift. BHP two weeks ago warned it’s assessing the carrying value of its nickel assets.

[eggbaconandbubble] 30/12/2023 16:02

Duplicate message - FFS (Fat Finger Syndrome!!!) :-)

[eggbaconandbubble] 30/12/2023 15:56

Thank you! Happy New year.

[zho] 30/12/2023 15:32

Hmmm. It works for me using Google, but not other search engines. Anyway, here it is, omitting graphs:

It's time to buy the 'Big Australian'

This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser

At the risk of anthropomorphising a digger of rocks, BHP (BHP) comes across as the most relaxed of the major miners.

While it is the sector’s largest by market capitalisation, the ‘Big Australian’ has kept to its antipodean roots while Rio Tinto (RIO) looks to massively expand its iron ore output with the Simandou mine in Guinea and Glencore (GLEN) shifts beyond its current coal, copper, cobalt and trading remit with a company split in two years.

BHP has used its healthy balance sheet to both buy smaller miners and build organically, but has kept to well-travelled paths. This year’s OZ Minerals buyout has added reserves near the Olympic Downs mine in South Australia, while its next mega-mine is the Jansen fertiliser project in Canada. Meanwhile, BHP plans to sell its stakes in two metallurgical coal mines in Queensland for $4bn (£3.14bn), following the spin-off of the remaining BHP Petroleum assets into Woodside Energy (AU:WDS).

Much of this action may have passed by UK investors, after BHP folded its UK plc legal structure into its Australian limited company entity two years ago, prompting its exit from the FTSE 100. Shorn of its index membership, but with a reshaped portfolio, BHP’s recent share price weakness belies a more compelling company later this decade (providing price forecasts for its major commodities support ongoing investments, of course).


Near-term hurt

Even with a strong – though flattening – iron ore price, investors have shied away from BHP and Rio Tinto this year. This points to scepticism that a price of more than $120 a tonne can hold, given shakiness in the Chinese construction sector.

For BHP, results for its June-end financial year did not give investors much to get excited about, given the fall in earnings and a decline in the final dividend to 80¢ a share, down from 175¢ in 2022.

Analyst forecasts are for sales to remain flat this year, at around $28bn each half – well short of the $35bn peak in the first half of the 2022 calendar year. This has been driven by both lower prices and some operational slowdowns. The Escondida mine in Chile, the world’s biggest copper mine, has seen production bounce around month on month. In October, the most recent period for which output is available, production was at the rate of 1mn tonnes a year, down a sixth in a month. Full-year guidance is currently slated for between 1.08mn and 1.18mn tonnes.

This comes after costs climbed 17 per cent last year, which chief executive Mike Henry has described as “a solid outcome in the context of what other producers are experiencing”.

Iron ore has been stronger. Henry cited “$5 more per tonne in free cash flow than that reported by our largest competitor” as an indicator of BHP’s relative performance. Expansion is also planned for the key Pilbara iron ore complex, with output for this year guided at 282mn to 294mn tonnes, on route to medium-term capacity of 305mn and eventually 330mn tonnes.


Growing plans

In the meantime, there is plenty on Henry’s desk already. On top of running the copper and iron ore units and fighting rising costs, there is the Jansen build and the various OZ Minerals additions in South Australia.

The company has hitched its wagon to four materials for the coming decade: iron ore, copper, nickel and potash. By contrast, Rio Tinto is moving into lithium, and is committed to finally building the sprawling Simandou project in Guinea.

It’s partly this asset that brightens BHP’s relative appeal. Rio Tinto will spend billions on funding a new railway to get the ore to port and has already experienced much grief operating in Guinea. The project’s partners, mostly Chinese, are pushing hard to get moving in a bid to ramp up non-Australian iron ore supply. First output is now expected in 2025, and could eventually produce 200mn tonnes a year – equivalent to 10 per cent of the market.

[eggbaconandbubble] 30/12/2023 15:07

Absolutely zip - All options behind the paywall.

[zho] 30/12/2023 13:24

If you Google "This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser" you should be able to access the article.

[eggbaconandbubble] 30/12/2023 11:12

zho, Can you cut and paste that article - please!

[zho] 29/12/2023 12:25

t's time to buy the 'Big Australian'

This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser

[podgyted] 26/12/2023 09:06

Looking good.

[lippy4] 19/12/2023 18:07

this is doing well, will it keep going i wonder as its one of my best shares today..

[garycook] 06/12/2023 23:21

BHP Executive Leadership Team update
7 December 2023
Today we've announced updates to BHP's executive leadership team.

BHP Chief Executive Officer (CEO), Mike Henry said:

“These new appointments ensure that we continue to build organisational capacity, with the right mix of skills, experience and perspectives to deliver BHP’s strategy and pursue our growth agenda. Our operating environment is increasingly complex, but also rich in opportunity for companies that are best able to positively engage stakeholders, deploy capital to the right opportunities in a disciplined way and deliver safe, reliable operational performance.

BHP continues to make significant progress on its strategy, delivering strong operating performance, an enhanced portfolio more strongly leveraged to the megatrends shaping the world, improved growth options, and a differentiated approach to social value creation – all in support of strong long-term shareholder returns.”

[cumnor] 05/12/2023 10:38

Volume today sums up everything about London as a global financial center. BHP the next one to leave I expect.

[grupo guitarlumber] 09/11/2023 12:18

Upcoming events on BHP Group Limited


2024-FEB-19 Q2 2024 Earnings Release (Projected)

[loganair] 02/10/2023 17:11

Goldman has been looking at the Escondida copper operation in Chile which is co-owned by BHP (57.5%) and Rio Tinto (30%). It notes that the operation has been expanded nine times since first producing copper all the way back in 1992.

Goldman expects a 10th expansion to occur in the coming years, supporting stronger-than-expected copper production growth. In fact, the broker believes the increase in production is going to be well ahead of consensus estimates.

The broker also highlights that the economics are compelling for the expansion. It adds:

While we already include the Escondida expansion in our base case for BHP & RIO, we have analysed the Escondida expansion options from a NPV & IRR perspective, and conclude the economics are compelling, and BHP would benefit from pushing ahead with an expansion of both the concentrator and heap leach capacity. We also highlight that Visible Alpha Consensus Data appears not to include the expansion as consensus 2030 production is ~200kt below GSe and 2025-2030 copper division capex is a collective ~US$10bn below GSe.

[f56] 19/9/2023 19:10

Anybody can cancel anybody! Lol.