Bhp Share Discussion Threads

[waldron] 24/1/2020 17:18

Iron Ore 94.35USD -0.05(-0.05%)
Gold COMEX 1,572.90 +0.48%
Silver COMEX 18.07 +1.35%
Platinum NYMEX 1,010.20 +0.29%
Copper COMEX 2.69 -1.47%
Brent Crude Oil NYMEX 60.52 -2.45%
Gasoline NYMEX 1.53 -2.98%
Natural Gas NYMEX 1.87 -1.73%
WTI 54.13 USD -2.71%

Rio Tinto
4,438.5 +0.28%

Bhp
1,779 +0.14%

Anglo American
2,132 +0.85%

Glencore
230.55 +1.05%

[waldron] 23/1/2020 17:09

Iron Ore 94.40USD -0.36(-0.38%)
Gold COMEX 1,563.80 +0.46%
Silver COMEX 17.81 -0.10%
Platinum NYMEX 1,004.60 -1.64%
Copper COMEX 2.71 -1.88%
Brent Crude Oil NYMEX 61.94 -2.01%
Gasoline NYMEX 1.57 -1.33%
Natural Gas NYMEX 1.91 +0.58%
WTI 55.58 USD -0.94%


Rio Tinto
4,426 -3.86%

Bhp
1,776.6 -2.67%

Anglo American
2,114 -3.47%

Glencore
228.15 -2.96%

[la forge] 23/1/2020 14:22

DZ Bank Hold UPS FROM 1,720.00 TO 1,800.00 Reiterates

[waldron] 22/1/2020 17:18

Iron Ore 94.76USD -0.04(-0.04%)
Gold COMEX 1,555.70 -0.31%
Silver COMEX 17.80 -1.47%
Platinum NYMEX 1,019.70 +1.21%
Copper COMEX 2.77 -2.74%
Brent Crude Oil NYMEX 63.20 -2.15%
Gasoline NYMEX 1.60 -3.09%
Natural Gas NYMEX 1.91 +1.32%
WTI 56.86 USD -2.44%



Rio Tinto
4,603.5 -0.11%

Bhp
1,825.4 +0.51%

Anglo American
2,190 -0.45%

Glencore
235.1 -1.22%

[loganair] 22/1/2020 12:25

I would like to see BHP out of Thermal coal as quickly as possible and to dig out of the ground their Coking coal with in the next 15 years so neither of these two become stranded assets for BHP.

Within the next 10 years I would like to see as a percentage of total revenue for BHP increase it's Copper revenues by at least 50%.

[sarkasm] 22/1/2020 12:15

JP Morgan Cazenove Underweight but up from 1,780.00 to 1,850.00 Reiterates

[waldron] 21/1/2020 17:10

Iron Ore 94.80 USD -0.01(-0.01%)
Gold COMEX 1,560.60 +0.02%
Silver COMEX 18.07 -0.04%
Platinum NYMEX 1,009.90 -1.28%
Copper COMEX 2.85 +0.05%
Brent Crude Oil NYMEX 64.72 -0.71%
Gasoline NYMEX 1.66 +0.53%
Natural Gas NYMEX 1.90 -1.20%
WTI 58.39 USD -0.53%

Rio Tinto
4,608.5 -1.46%

Bhp
1,816.2 -1.36%

Anglo American
2,200 -1.81%

Glencore
238 -1.57%

[florenceorbis] 21/1/2020 09:28

SYDNEY--BHP Group Ltd. (BHP.AU) reported stronger quarterly production of iron ore as it continued to capitalize on high prices for a commodity that is its main profit driver.

BHP said it produced 60 million metric tons of iron ore in the three months through December, up 4% on the same period a year earlier when it temporarily suspended all of its rail operations in Australia's Pilbara region after a train ran loose for more than 50 miles before it was forcibly derailed.

The quarterly result means BHP, the world's biggest miner by market value, produced 121 million tons of iron ore in its fiscal first half. Management stuck with annual guidance for between 242 million tons and 253 million tons from its Pilbara operations.

BHP's Australian iron-ore shipments account for almost one-fifth of seaborne trade in the commodity. It is the world's third-largest iron-ore exporter, behind Vale SA (VALE) and Rio Tinto PLC (RIO.LN).

BHP is in the midst of a leadership reshuffle that could have an impact on its growth strategy and which commodities and operations are favored for investment. Mike Henry became chief executive at the start of this month, replacing Andrew Mackenzie who will leave the company on March 31, three months sooner than was originally scheduled.

Under Mr. Mackenzie's leadership, BHP sold assets ranging from U.S. shale gas deposits to South African coal mines and jettisoned a long-held pledge to increase its annual dividend. The result is a slimmed-down company, but one more reliant on swings in prices of just a handful of commodities such as iron ore and crude oil for profit growth.

"We delivered solid operational performances across the portfolio in the first half of the 2020 financial year, offsetting the expected impacts of planned maintenance and natural field decline," Mr. Henry said. "Our six major development projects are progressing well, and we continue to advance our exploration programs in petroleum and copper."

BHP said second-quarter output of petroleum products fell by 6% to 28 million barrels of oil equivalent. That reflected the impact of Tropical Storm Barry in the Gulf of Mexico and natural field decline across the company's portfolio.

Quarterly copper output totaled 455,000 tons, driven by ongoing improvements in maintenance and operational performance at the Escondida mine in Chile.



Write to David Winning at [e-mail]



(END) Dow Jones Newswires

January 20, 2020 16:52 ET (21:52 GMT)

[waldron] 20/1/2020 17:07

Iron Ore 94.15 USD -0.66(-0.70%)
Gold COMEX 1,560.90 +0.04%
Silver COMEX 18.07 -0.02%
Platinum NYMEX 1,024.50 -0.03%
Copper COMEX 2.84 -0.16%
Brent Crude Oil NYMEX 65.21 +0.56%
Gasoline NYMEX 1.66 +0.08%
Natural Gas NYMEX 1.92 -3.48%
WTI 58.77 USD -0.78%


Rio Tinto
4,677 +0.56%

Bhp
1,841.2 -0.56%

Anglo American
2,240.5 -0.22%

Glencore
241.8 -0.58%

[waldron] 20/1/2020 17:06

21 January 2020

08:30 AM Melbourne time (approximate)

BHP Operational Review for the half year ended 31 December 2019

[loganair] 20/1/2020 16:54

As China continues its long and painful move away from coal, solar and wind energy are becoming increasingly competitive.

In September of last year Oilprice reported an incredible milestone for renewable energy when solar and wind power became cheaper than coal in most of the world. Now, a new report released this week by Wood Mackenzie Power and Renewables has heralded another milestone: China will soon be added to that list of countries in which coal is no longer more economical than renewable energy.

This is a massive and massively important development because of the jaw-dropping scale at which China produces and burns coal. Alone, they consume as much coal as the rest of the world combined. While the fact that coal is being priced out in much of the world marks great progress for the fight against climate change, especially at a moment that the UN is reminding the world with urgency that renewables are the path forward, true progress simply isn’t possible without China on board. And now it seems the winds of change have reached Beijing.

The Wood Mackenzie report, titled China provincial renewables competitiveness report 2019, reveals that the average levelized cost of electricity (LOCE) of solar and wind power in China is already cheaper than that of natural gas-fired power and will also overtake coal by just 2026. Wood Mackenzie Power and Renewables research director Alex Whitworth was quoted: “Across most of China’s provinces and regions, renewables cost premium remains over coal power, averaging 26 percent in 2019 for wind and solar, down from over 100 percent in 2010. Twenty-eight of 30 regions examined in our latest report see premiums of up to 70 percent, and only Shanghai and Qinghai have cost-competitive renewables today.”

While China is making great progress toward renewable energy’s economic viability on the whole, some provinces will take a lot longer than other to wean themselves off coal, reports Power Engineering International. “Renewables competitiveness is achievable in the next few years for some of China’s regions, but for others, the journey will not be a sprint but a marathon – taking a decade or more,” they write. Wood Mackenzie’s Whitworth also commented that “wealthier demand centres on the coast and in parts of central and northeast China will be first to see competitive renewables costs. But renewables investment in some areas of northern China, such as Xinjiang, will not be competitive with coal-fired generation, even by 2040.” While progress will be uneven and the amount of renewable energy in China’s overall energy mix remains low, the projections are still hopeful.

The efficiency gains in Chinese solar and wind are occurring in the larger context that China is moving toward ending subsidies for new wind and solar projects starting next year. This doesn’t mean that Beijing is not supporting renewable energies and that the move toward cheaper green energy by 2026 will be derailed, however. In fact, it means just the opposite: the subsidies worked.

Much like in the United States and Western Europe, solar and wind have become economically viable without governmental support and have therefore outgrown their subsidy programs. Last year Bloomberg reported that “on sun-drenched fields across Spain and Italy, developers are building solar farms without subsidies or tax-breaks, betting they can profit without them. In China, the government plans to stop financially supporting new wind farms. And in the US, developers are signing shorter sales contracts, opting to depend on competitive markets for revenue once the agreements expire.”

The Bloomberg article, published last September, highlights the huge importance of these green energy milestones, pointing out that this new era of economic self-sufficiency in wind and solar energy has “profound implications for the push to phase out fossil fuels and slow the onset of climate change” and that “electricity generation and heating account for 25 percent of global greenhouse gases. As wind and solar demonstrate they can compete on their own against coal- and natural gas-fired plants, the economic and political arguments in favor of carbon-free power become harder and harder to refute.”

[loganair] 20/1/2020 14:34

Is the BHP share price a buy as US–China trade tensions ease?


The easing trade-tensions between the US and China are likely to assist Australian resources companies that deal with China. So, does this make the resources giant BHP Group Ltd (ASX: BHP) a buy?

BHP is definitely my pick of the ASX resource sector shares. It is a diversified natural resources company and is one of the world’s top producers of commodities like iron ore, coal and copper. BHP also has substantial interests in oil and gas.

As it is the third largest share listed on the ASX, not only can it leverage economies of scale, it is frequently bought and held by super funds and managed funds providers, and also by default is listed in many of the popular Australian exchange traded funds (ETFs) such as Vanguard Australian Shares Index ETF (ASX: VAS).

Growing dividend yield on the back of solid financials:

BHP’s strategy is to continue to consolidate its current assets, which involves divesting underperforming assets and reducing debt while also increasing operational efficiency.

Its extensive portfolio includes some of the largest mining assets in the world, which continue to generate large and ongoing free cash flows.

FY19 was a very successful year for BHP, with strong growth across its various segments. The mining giant produced a profit from operations of US$16.1 billion and an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$23.2 billion at a margin of 53% for continuing operations. Also, there was a record US$17 billion returned to shareholders for the year. Dividend payouts were very attractive during FY2018–19, with BHP offering a fully-franked dividend payment of $4.76 per share.

BHP increased its dividends in 2019, boosted by strong iron ore prices. The company currently has a mandate to maintain a dividend payout ratio of at least 50%, which is very favourable for shareholders.

Historically, BHP’s dividend payout was well below that of the traditional high dividend paying shares such as the banks, because most of BHP’s profits were re-invested for growth. However, the mining giant has increased its dividend almost every year since 2010 and its dividend yield now sits at a very attractive 4.8%, fully franked.

Easing trade tension should boost growth:

The easing tensions in the trade war between US and China should assist BHP’s growth in FY20 and FY21, given that China accounts for around half of the world’s consumption of metals. In particular, it could lead to further strong demand for steel from China. Copper is another of BHP’s assets that has been performing strongly and is predicted to continue to do so.

[grupo] 18/1/2020 17:13

21 January 2020

08:30 AM Melbourne time (approximate)

BHP Operational Review for the half year ended 31 December 2019
18 February 2020

[grupo] 18/1/2020 17:10

letsmakesome
18 Jan '20 - 17:04 - 456 of 456
0 0 0
Top Investment Advisors: Where to invest $10,000

The piece from Sarah Ketterer on energy stocks is interesting.

[letsmakesome] 18/1/2020 17:04

Top Investment Advisors: Where to invest $10,000 https://www.bloomberg.com/features/how-to-invest-10k/The piece from Sarah Ketterer on energy stocks is interesting.

[waldron] 17/1/2020 18:23

Iron Ore 94.81USD 0.26(0.27%)
Gold COMEX 1,560.10 +0.62%
Silver COMEX 18.08 +0.79%
Platinum NYMEX 1,024.10 +2.29%
Copper COMEX 2.84 -0.09%
Brent Crude Oil NYMEX 64.65 +0.05%
Gasoline NYMEX 1.65 -0.80%
Natural Gas NYMEX 1.99 -2.98%
(WTI) 58.49 USD -0.19%

Rio Tinto
4,651 +2.75%

Bhp
1,851.6 +2.30%

Anglo American
2,245.5 +3.22%

Glencore
243.2 +0.48%

[gibbs1] 17/1/2020 12:33

moneyweek


Commodities look cheap
Gold may be on a bull run, but industrial commodities, including copper, zinc and aluminium, remain cheap.
by: Alex Rankine
17 Jan 2020

Gold surged to a seven-year high earlier this month. Yet many industrial metals proved “laggards̶1; in 2019, says Myra Saefong in Barron’s. Copper gained just 3.5% in 2019. Aluminium and zinc prices declined. Weakness in global manufacturing means that industrial metals were “left out of the commodities rally”.
Time to catch up?

“There are plenty of expensive assets in the world today,” says Rana Foroohar in the Financial Times, but most industrial commodities have remained “reliably cheap”. Indeed, they are “about as cheap relative to stocks as they have been in the past century”.

[sarkasm] 16/1/2020 21:17

Battery nickel price regains premium over metal
Frik Els | January 16, 2020 | 12:56 pm Battery Metals Intelligence Markets Australia China Nickel
Battery nickel price regains premium over metal
Nickel sulphate market not too gloomy. Image: BHP Nickel West nickel mining complex in Western Australia.

Much like prices for cobalt, lithium and graphite, nickel feedstock for battery manufacture ended 2019 on a weak note, as a retreat in Chinese electric vehicle sales in the second half of the year and slower than expected transition to nickel-rich battery chemistries hurt demand.

Battery supply chain and megafactory tracker Benchmark Mineral Intelligence’s new nickel assessment details a nearly 9% fall in domestic Chinese prices for nickel sulphate during December.

BHP decided last year to hold onto its Nickel West operations after many attempts to offload it, and is spending hundreds of millions of dollars switching its Australian operations to battery-grade production

The midpoint price for December was pegged at CNY 26,000 per tonne (~$3,770 at today’s rate) for >22% Ni ex-works material, but Benchmark says the price rebounded towards the end of the month on restocking.

At times in the third quarter sulphate actually sold at a discount to class 1 metal in China and for the year, prices are still more than 5% for the better.

Prices for nickel sulphate in the rest of the world also declined at the end of last year but premiums over LME metal prices were steady at the equivalent of $2,000–$2,450 per tonne (>22% Ni CIF Asia) according to Benchmark data.

Nickel metal traded on the LME went on a wild ride in 2019, from $10,715 a tonne it the start of January to above $18,000 in October, before ending the year $4,000 below its peak.

Benchmark says its sources noted premiums for nickel sulphate are expected to remain relatively stable during the first half of 2020 on expectations of further delays at BHP’s Nickel West project.

BHP decided last year to hold onto its Nickel West operations after many attempts to offload it, and is spending hundreds of millions of dollars switching its Australian operations to battery-grade production.

Last year, less than 10% of nickel ended up in EV batteries with 70% of supply goes into making stainless steel. Global nickel production is less than 2.5 million tonnes per annum.
Battery Metals Digest
Mining.com

[ariane] 16/1/2020 11:41

BlackRock is the canary in the coalmine. Its decision to dump coal signals what’s next
15 janvier 2020, 20:08 CET


John Quiggin is a former Member of the Climate Change Authority. He is a supporter of the UniSuper divest campaign


The announcement by BlackRock, the world’s largest fund manager, that it will dump more than half a billion dollars in thermal coal shares from all of its actively managed portfolios, might not seem like big news.

Announcements of this kind have come out steadily over the past couple of years.

Virtually all the major Australian and European banks and insurers, and many other global institutions, have already announced such policies.

According to the Unfriend Coal Campaign, insurance companies have stopped covering roughly US$8.9 trillion of coal investments – more than one-third (37%) of the coal industry’s global assets, and stopped offering reinsurance to 46% of them.
Blackrock matters because it is big

The announcement matters, in part because of Blackrock’s sheer size.

It is the world’s largest investor, with a total of $US7 trillion in funds under its control. Its announcement it will “put climate change at the center of its investment strategy” raises questions about the soundness of smaller financial institutions that remain committed to coal and to a carbon-based economy.
Exract from BlackRock's letter to clients, January 14, 2020

Blackrock is also important because its primary business is index funds, that are meant to replicate entire markets.

So far these funds are not affected by the divestment policy. BlackRock’s iShares United States S&P 500 Index fund, for instance, has nearly US$23 billion in assets, including as much as US$1 billion in energy investments.

But the contradiction between the company’s new activist stance and the passive replication of an energy-heavy index such as Australia’s is obvious. The pressure to find a solution will grow.
In time, the entire share market will be affected

One solution might be for large mining companies such as BHP to dump their coal assets in order to remain part of both Blackrock’s actively managed (stock picking) and passively managed (all stocks) portfolios.

Another might be the development of index funds from which firms reliant on fossil fuels are excluded. It is even possible that the compilers of stock market indexes will themselves exclude these firms.

The announcement has big implications for the Australian government.

À lire aussi : Fossil fuel campaigners win support from unexpected places

Blackrock chief executive Laurence Fink noted that climate change has become the top issue raised by clients. He said it would soon affect all all investments – everything from municipal bonds to mortgages for homes.

Once investors start assessing government bonds in terms of climate change, Australia’s government will be in serious trouble.
Australia’s AAA rating will be at risk

The bushfire catastrophe and the government’s inadequate response have shown the world Australia is both among the countries most exposed to climate catastrophe and one of the worst in terms of contributions to solutions.

Once bond investors follow the lead of Blackrock and other financial institutions, divestment of Australian government bonds will follow.

This process has already started, with the decision of Sweden’s central bank to unload its holdings of Australian government bonds.

Taken in isolation, Sweden’s move had virtually no effect on Australia’s bond prices and yields. But the most striking feature of the divestment movement so far is the speed with which it has grown from symbolic gestures to a severe constraint on funding for the firms it touches.

À lire aussi : Climate change: why Sweden's central bank dumped Australian bonds

The fact that the Adani corporation was unable to find a single bank willing to fund its Carmichael mine is an indication of the pressure that will come to bear.

The effects might be felt before large-scale divestment takes place. Ratings agencies such as Moody’s and Standard and Poors are supposed to anticipate risks to bondholders before they materialise.
It’ll make inaction expensive

Once there is a serious threat of large-scale divestment in Australian bonds, the agencies will be obliged to take this into account in setting Ausralia’s credit rating. The much-prized AAA rating is likely to be an early casualty.

That would mean higher interest rates for Australian government bonds which would flow through the entire economy, including the home mortgage rates mentioned in the Blackrock statement.

The government’s case for doing nothing about climate change (other than cashing in on past efforts) has been premised on the “economy-wrecking” costs of serious action.

But as investments associated with coal are increasingly seen as toxic, we run an increasing risk that inaction will cause greater damage.

[ariane] 16/1/2020 11:35

21 January 2020

08:30 AM Melbourne time (approximate)

BHP Operational Review for the half year ended 31 December 2019

[loganair] 16/1/2020 09:45

Interesting to hear that the transition from Coal, Oil and Diesel to Gas is already starting to happen.

Gas has 1/2 the CO2 as Oil or Diesel.


Gas to produce energy will then be replaced by Hydrogen, the transition will start in earnest by 2050.

By 2050 Coal, Oil and Gas will become 'Stranded Assets'.

[maywillow] 14/1/2020 20:19

BHP advances construction on $3.6bn South Flank iron ore project

MiningOther CommoditiesIndustrial Minerals

By NS Energy Staff Writer 14 Jan 2020

Fluor earlier secured a contract to provide the engineering, procurement, and construction management services for the South Flank project
Ore_Handling_Plant

The South Flank iron ore handling plant in Pilbara region of Western Australia. (Credit: Business Wire)

US-based Fluor has erected the first 1500t module for the ore handling plant of BHP’s $3.6bn South Flank iron ore project in the Pilbara region of Western Australia.

The module erection advances the construction of the project, which had already saw a 50% completion in October last year.

Fluor is serving as the engineering, procurement, and construction management services provider for the South Flank project.

Fluor Mining and Metals business president Tony Morgan said: “We are extremely proud of what we have been able to accomplish with BHP on this project including our commitment to achieve diversity through the hiring of indigenous and local team members.

“The pioneering integrated team approach on this project is truly a collaborative effort. We look forward to continuing our long and successful relationship with BHP on this project and beyond.”
South Flank project will become one of the world’s largest iron ore processing hubs

The South Flank project, upon completion, will become one of the largest iron ore processing hubs in the world featuring the latest advances in autonomous-ready fleets, digital connectivity and modular design.

Expected to employ more than 9,000 people over its life, the project comprises an 80-million-ton-per-year crushing and screening plant, an overland conveyor system and rail-loading facilities.

Prior to securing the follow-on construction and project management contract, Fluor completed the feasibility study for the project.

BHP commenced construction on the South Flank project in July 2018, with first iron ore production scheduled to start in 2021.

The South Flank project aims to completely replace production from the 80 million tons per annum (Mtpa) Yandi iron ore mine, which started production in 1991 and is nearing the end of its economic life.

Expected to have operational life over 25 years, the South Flank project will expand the already established infrastructure at Mining Area C.

BHP owns 85% interest in the Mining Area C and South Flank project while Itochu and Mitsui own 8% and 7% stakes respectively.

[loganair] 14/1/2020 10:51

Blackrock are going to Sell their shares in companies that are heavily into Coal - the push is coming from clients.

Other Banks and investment houses are likely to follow suit.

The sooner BHP is out of Coking coal for power stations etc the better. I just hope they have not left it too late to Sell their Coking coal assets.