BHP Billiton Share Discussion Threads

[idioterna] 02/3/2016 08:41

…so something like $2 billion over 15 years via Samarco. That sounds like a fair deal, allows two whole cycles to play out over the period. Fifteen years is a long time, who knows what might happen by then anyway.

[loganair] 01/3/2016 10:16

By Ian Pierce - The line between value play and value trap is never an easy one to walk. Investors who've been in the market for years will inevitably have their tale of the time they made or lost a fortune betting on a beaten-down share's recovery. After a year of shedding so much of its market is BHP Billiton more of a value play or value trap?

Long-term buy:

Multi-billion pound losses and slashed dividends have been the story for mining companies over the past 18 months. BHP Billiton finally joined the party this month by announcing a 75% dividend cut, the end of progressive payouts, and a staggering $5.7bn loss for the past half year. On the bright side, strong cash flow from low-cost assets mean net debt has increased a mere 4% over the past year to $26bn.

Income investors will decry the lower dividend, but it will allow BHP to maintain its 'A' credit rating during what management predicts to be a prolonged period of weaker commodities prices. Despite prices for the majority of BHP's major commodities dropping in price by double-digits in just the past six months, underlying profits of $6bn were still recorded.

With low-cost assets still contributing to cash flow and net gearing a reasonable 30%, I believe BHP will be in a great position once commodities prices inevitably rise. For long-term investors, I believe BHP could be an astute purchase at today's prices.

[idioterna] 29/2/2016 10:33

Yes apparently a "source" close to the police "suggests" that BHP "maybe" assassinated a bunch of folks. Good story, "might", "possibly" attract some new paying clients to the "class actions" being conducted by any number of dodgy law firms with a "non-vested" interest in proceedings. Ahem!

[anley] 27/2/2016 11:04

Big news due early next week from Brazil.......

[loganair] 26/2/2016 10:17

hxxp://www.prnewswire.com/news-releases/robbins-geller-rudman--dowd-llp-files-class-action-suit-against-bhp-billiton-300225890.html

NEW YORK, Feb. 24, 2016 - Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against BHP Billiton.

The complaint charges BHP and certain of its current and former executive officers and directors with violations of the Securities Exchange Act of 1934.

The complaint alleges that during the Class Period, defendants knew or recklessly disregarded the precarious condition of mining operations and facilities at the Samarco mine, a Brazilian mining operation jointly owned by BHP and Vale S.A., yet made materially false and misleading statements concerning the Company's commitment to safety and the implementation of safety and monitoring protocols at the mine sites.

Plaintiff seeks to recover damages on behalf of all purchasers of BHP Ltd. and BHP Plc ADRs during the Class Period (the "Class").

[sisouhail] 26/2/2016 08:26

hxxp://fortune.com/tag/bhp-billiton/

[sisouhail] 26/2/2016 08:25

hxxp://www.linkedin.com/shareArticle?mini=true&url=hxxp%3A%2F%2Ffor.tn%2F1LHcVwq%3Fxid%3Dfor_li_sh&title=Check%20out%20U.S.%20Retirees%20Just%20Sued%20Mining%20Giant%20BHP%20Billiton%20For%20Safety%20Fraud%20on%20Fortune.com:&source=Fortune

[pixi] 25/2/2016 09:55

So is it worth buying?

[tpaulbeaumont] 24/2/2016 10:29

commod bear market started 5 years ago, BLT did a stellar job paying out this long but the market clearly told us the divi wasnt sustainable

[rickmay] 24/2/2016 08:29

TARGET STILL £2 TO £3

[edjge2] 24/2/2016 07:04

Apart from prob in S america seems most bad news is out. Surely stronger co than AAL and if oil cooperates, divi bust may be wise IMO.

[idioterna] 23/2/2016 12:08

…then again, from a share price based perspective, this is exactly the right time to buy. BLT just allocated about half the profits to speculation. Probably shoot up the charts for the next 12 months. I truly detest what the stock market has come to represent.

[idioterna] 23/2/2016 10:26

Since we've just written off $5 Billion worth of oil field assets we can assume that it is a waste of money acquiring more of them unless we can sell them straight off for a higher profit. That would make BLT more of a real estate agent than a miner. As to acquiring more assets in the mining sector it had better be in Australia and seriously a good bolt-on to existing production. But, given that management don't appear to know where we are in the cycle nothing should be acquired for at least a year. Firstly, if the "distressed assets" are losing money they will have to shut down, or the banks will have to lend them more money to keep them afloat - a zero sum game. Billiton is in a position of real power here, no other miner can afford to acquire these assets, but, if it does raise capital to acquire them it's insane. And if it cuts the dividend to acquire them it is derogatory to shareholders. As the distressed assets go under, commodity production falls and our profits rise. We really don't need to cut our own throats to bail out the banks. Also, as Glencore have shown, only miners really know how to run mines so we need not fear competition if these distressed assets are run by banks or private equity.

[pineapple1] 23/2/2016 09:06

Depends what the price is. Some distressed oil field assets are being sold at $2 per barrell and less .
There was no way that BLT was not going to fall in line with the other large cap miners by not cutting the divi. At least they retained some of it. Nothing lasts forever.
imho

[idioterna] 23/2/2016 08:38

That sucks. Nasser's caved into the investment bankers. BHP has no reason to acquire any distressed assets from the banks, bolt-on or otherwise. Despite all their experience management seem to have panicked inline with commodity market fluctuations. The decision to follow investment banker advice smacks of fear and uncertainty, not something you'd expect from Billiton. If they are that uncertain of where we are in the cycle they should not be looking at acquiring distressed assets to add to future losses.

I expected more backbone.

[sisouhail] 23/2/2016 08:36

they need a shake up right at the top

[sisouhail] 23/2/2016 08:15

Jack Nasser have to retireHe is useless

[lenton16] 23/2/2016 07:48

BLT just about broke even.
the losses are non cash write-downs of its huge asset base.
money they have wasted in the past.

[sogoesit] 23/2/2016 07:36

Great statement hooley: "I've made a good profit on the bull tack without employing logic."
Superb! Sums up the world we live in.
Personally, I think Logic should now be fired!

[hooley] 23/2/2016 07:29

Half the interim divi the boys were expecting and prediction of a prolonged era of sustained low commodity prices. Doesn't sound too promising to me. However, what has rationality got to do with share prices in this sector? Still, I've made a good profit on the bull tack without employing logic.

[nw99] 23/2/2016 07:03

Up 3% in Australia