Bhp Share Discussion Threads

[waldron] 21/2/2020 17:07

Iron Ore 86.42 USD 0.27(0.31%)
Gold COMEX 1,643.30 +1.41%
Silver COMEX 18.49 +0.91%
Platinum NYMEX 976.80 -0.22%
Copper COMEX 2.61 +0.73%
Brent Crude Oil NYMEX 58.22 -1.84%
Gasoline NYMEX 1.75 -1.90%
Natural Gas NYMEX 1.91 -0.93%
WTI 53.3 USD -0.30%

Rio Tinto
4,202.5 -0.17%

Bhp
1,661.6 -0.93%

Anglo American
2,125 +0.12%

Glencore
224.35 -2.01%

[essentialinvestor] 21/2/2020 08:34

Had a few.

[waldron] 20/2/2020 17:19

Iron Ore 86.15USD 0.45(0.52%)
Gold COMEX 1,624.10 +0.76%
Silver COMEX 18.37 +0.29%
Platinum NYMEX 983.40 -2.10%
Copper COMEX 2.59 -0.81%
Brent Crude Oil NYMEX 59.36 +0.41%
Gasoline NYMEX 1.77 -0.46%
Natural Gas NYMEX 1.99 +0.91%
WTI 53.91 USD +0.30%


Rio Tinto
4,209.5 +0.19%

Bhp
1,677.2 -0.85%

Anglo American
2,122.5 +1.65%

Glencore
228.95 -1.31%

[waldron] 20/2/2020 15:17

Anglo American PLC, one of the world's largest miners, gave a full picture of fatalities related to its operations Thursday, a major shift in an industry that typically undercounts the number of deaths.

A Wall Street Journal investigation revealed in December that many mining deaths are not captured by global safety statistics, making the industry seem safer to regulators, investors and consumers.

Four Anglo American employees were killed at its managed operations in 2019, the company said in its full-year results. Taking into account other incidents -- including employees who died off-site in road accidents, two who died in 'security incidents' and one at a joint venture that Anglo doesn't manage -- a total of 18 miners died.

Miners don't report deaths at joint ventures they don't manage, despite having influence over health and safety policy, leaving dozens of fatalities off the books. Fatalities that occur during the transportation of mined materials are also often undercounted.

"We are not terribly good as an industry at reporting all incidents," said Anglo's Chief Executive Mark Cutifani. "They are our colleagues, we know them all, so we report all of those types of incidents," he said, talking of some of the deaths outside of mine sites last year.

Between 2010 and 2018, the world's three largest publicly listed miners, BHP Group Ltd., Rio Tinto PLC and Vale SA, reported 117 deaths globally at their managed operations.

There were an additional 89 deaths of workers during the same period at joint ventures the companies weren't running, according to a Journal analysis of company and government records, stripping out double counting.

Miners have reduced fatalities and injuries in recent decades, but a lack of reliable accounting in the most basic safety metric makes it difficult to determine the extent of any gains.

The pressure to improve safety and transparency is especially intense after a mine-waste dam operated by Vale burst last year, unleashing a river of mud in the Brazilian town of Brumadinho.

In another example of how mining deaths are underreported, the Brazilian government doesn't count many contractors who die in mining accidents. As a result, as many as 139 of the 270 people who died at Brumadinho weren't classified as mining deaths.

BHP, the world's largest miner, also recently began disclosing in some publications all deaths at all of its operations. Anglo went further on Thursday by tallying all deaths related to its operations high in its annual results announcement and placing that number alongside fatalities at managed operations.

Write to Alistair MacDonald at [e-mail]



(END) Dow Jones Newswires

February 20, 2020 09:50 ET (14:50 GMT)

[waldron] 19/2/2020 17:18

Iron Ore 85.70 USD 0.27(0.32%)
Gold COMEX 1,611.00 +1.70%
Silver COMEX 18.27 +2.84%
Platinum NYMEX 1,004.80 +1.10%
Copper COMEX 2.61 -0.80%
Brent Crude Oil NYMEX 59.11 +2.35%
Gasoline NYMEX 1.77 +1.81%
Natural Gas NYMEX 1.96 -0.56%
WTI 53.15 USD +1.94%



Rio Tinto
4,201.5 +0.71%

Bhp
1,691.6 +1.44%

Anglo American
2,088 +1.63%

Glencore
232 +2.61%

[sarkasm] 19/2/2020 14:19

BHP’s half-year profits up almost 40% on strong iron ore prices

Features & AnalysisMiningInvestment

By James Murray 18 Feb 2020

BHP's underlying net profit after tax was $5.2bn on revenue of $23bn, for the six months ending in December
BHP profits

In its half-year update, BHP confirmed an interim dividend of $0.65 on its shares – a $0.10 increase from December 2018 (Credit: BHP Group)

BHP recorded a 39% increase in its half-year profits, following a surge in global iron ore prices.

The Anglo-Australian multinational, which is the world’s biggest mining firm, released figures today (18 February) showing underlying net profit after tax of $5.2bn, on revenues of $23bn, for the six months ending in December.

That represents a major upturn from a year earlier, when profits stood at $3.7bn.

In its half-year update, BHP also confirmed an interim shareholder dividend of $0.65 – a $0.10 increase compared to December 2018.

Although that is the miner’s second-highest dividend payment, it is lower than the $0.71 anticipated by analysts.

BHP’s new CEO Mike Henry, who took up the role at the start of this year, said the strong half-year results were grounded in “solid operational performance”.

“From these strong foundations, we will build on our momentum to deliver exceptional performance,” he added.

“I intend for BHP to be unquestionably the industry’s best operator – safer, lower cost, more reliable and more productive – with our portfolio and capabilities fit for the future.

“We will be open to new ideas, more connected to those around us and more commercial in our thought and actions.”


How BHP recorded its profits increase

BHP recorded a profit on its operations of $8.3bn, up from $7.3bn a year earlier. This was attributed to higher iron ore prices, operational stability and favourable exchange rates.

It also noted underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $12.1bn, rising from $10.5bn in December 2018 – while the EBITDA margin grew from 52% to 56%.

Net debt rose 21% over the period from $9.2bn to $12.8bn, as a result of new leases in the second half of 2019.

BHP also confirmed it had paid out $6m in costs related to the 2015 Samarco dam disaster, in which 19 people died in Minas Gerais, Brazil.

The miner has been investing in restoration activities in the region as environmental and community rebuilding efforts continue.


BHP warns coronavirus could continue to impact mineral demand

Copper and iron ore prices have taken a hit following the breakout of the novel coronavirus, which originated in China and has been deemed a global health emergency.

Quarantine measures and a wider slowdown in economic and industrial activity in the country have cut demand in this important region, putting significant strain on commodity markets.

Although BHP expects the global economy to strengthen by between 3% and 3.5% this year, it warned those figures may have to be revised if the coronavirus is “not demonstrably-well contained” by the end of March.

The firm said that “while it remains early days, it is clear there will be demand loss in oil and demand deferral in steel and copper”.

The lasting impact of coronavirus is likely to depend on the speed of containment and China’s recovery, although BHP said it is “ready for whatever happens”.

[sarkasm] 19/2/2020 11:29

JP Morgan Cazenove Underweight but up from 1,860.00 to 1,890.00 Reiterates

[dround87] 18/2/2020 14:13

On the turn

[loganair] 18/2/2020 13:33

BHP has lagged behind rivals such as Rio Tinto, which sold its last thermal coal mine in 2018. Buyers for its thermal assets, including Mount Arthur Coal and a third of Cerrejón in Colombia, are proving scarce. It may not want to make the same mistake with metallurgical coal, even if, for now, margins are sounder, and substitution is difficult.

[loganair] 18/2/2020 13:26

BHP's new chief executive Mike Henry has signalled the mining giant could exit thermal coal and boost exposure to minerals used in green technologies as it looks to reposition itself for a lower carbon world.

In his first detailed comments about the implications of a "decarbonised" future for BHP, Mr Henry said he would consider a sale of the company's thermal coal assets "if someone presented us with an opportunity to exit for value". It would also pursue growth in nickel and copper, which will be increasingly needed to power green technologies, he said.

Mr Henry said BHP was continuously reviewing the make-up of its portfolio and determined thermal coal – coal used to generate electricity – posed "downside" risks when it mapped out future scenarios such as the global transition to cleaner energy.

Morgans analyst Adrian Prendergast said Mr Henry's remarks were reflective of a trend of businesses – even resources companies – recognising and responding to the power of the decarbonisation push globally.

"Businesses are starting to rapidly implement at a higher, overarching level, strategic decisions to decarbonise rapidly ... divesting assets that are carbon-intensive," Mr Prendergast said.

Finding a buyer of BHP's thermal coal mines, however, could prove challenging owing to the weak coal prices and a lack of interest in picking up emissions-intensive assets in a market under pressure, Mr Prendergast said.

"The third factor is they would likely want to find a responsible bidder, and put the assets into the hands of a company that would look after them and wouldn't disadvantage stakeholders," he said.

Discussing the future of BHP's portfolio, which is dominated by the steelmaking ingredients of iron ore and metallurgical coal, Mr Henry said he wanted to develop more growth options in its "future facing" commodities such as copper – used in wind turbines – and nickel – which is needed to make lithium-ion batteries.

"We need more copper and we need more nickel. We do have some growth ahead of us in both of those commodities but I think to the far future and we'd like to have more options."

Although a producer of fossil fuels, BHP has adopted a strong focus on sustainability and mitigating the long-term risks to its business posed by climate change.

[maywillow] 18/2/2020 10:23

Glencore Sees Carbon Emissions Falling as Coal Mines Fade Away

Thomas Biesheuvel, Bloomberg News








A bucket wheel excavates soil and rocks as a giant excavator operates at the open pit lignite mine, operated by RWE AG, in Hambach, Germany, on Monday, Aug. 13, 2018. Not far from Germany’s Rhine River, a fight to thwart giant excavators from grinding away what’s left of the 1,200-year-old Hambach forest came to a head this month as thousands of protesters faced off with police in a tense, and at times violent, showdown. Photographer: Alex Kraus/Bloomberg

A bucket wheel excavates soil and rocks as a giant excavator operates at the open pit lignite mine, operated by RWE AG, in Hambach, Germany, on Monday, Aug. 13, 2018. Not far from Germany’s Rhine River, a fight to thwart giant excavators from grinding away what’s left of the 1,200-year-old Hambach forest came to a head this month as thousands of protesters faced off with police in a tense, and at times violent, showdown. Photographer: Alex Kraus/Bloomberg , Bloomberg

(Bloomberg) -- Glencore Plc, the world’s biggest shipper of thermal coal, has mapped out cuts in carbon emissions generated by its customers as the company slowly retreats from the dirtiest fuel.

The world’s biggest resource companies, from miners to oil majors, are under increasing pressure to account for the pollution created when their customers burn or process the materials they produce.

Glencore said on Tuesday its so-called Scope 3 emissions will fall by 30% in the next 15 years, predominantly as a result of depleting mines in Colombia and South Africa. That’s a projection based on its current mine plans, rather than a fixed target. Glencore did not say how much coal production would be cut to meet the projection.

Glencore has faced the brunt of a growing investor concern about climate change. While its biggest rivals are in the process of exiting coal, Glencore has been a staunch defender of the fuel, saying it’s essential to providing affordable and reliable power in developing countries.

Still, the commodity trader’s billionaire chief executive officer, Ivan Glasenberg, has been forced to make concessions to keep investors. Last year, Glencore agreed to cap coal production, albeit above its current output level.

The mining industry has yet to find common ground on how to deal with scope 3 emissions. BHP Group in July called on the mining sector to take ownership of emissions that result from product sales, a stance that’s been rejected by some rivals who argue it’s too difficult to calculate a supplier’s share. Rio Tinto Group is partnering with a Chinese steelmaker to develop methods to cut pollution and improve the steel industry’s environmental performance, while Vale SA has said it will develop ambitious targets to cut Scope 3 emissions.

Arguably, the Scope 3 emissions of the oil industry are even more difficult to calculate. That hasn’t stopped companies like Repsol SA and BP Plc from setting net-zero emissions targets for all the oil and gas they extract and their customers burn.

Glencore said the reduction in emissions will derive mainly from its Colombian coal assets, and to a lesser extent from its South African and Australian mines. The Colombian market is currently under pressure as it predominantly ships to Europe where countries are cutting their use of the fuel, while South Africa has challenges with labor relations and government policies.

“Our capital expenditure reflects significant current investments towards growth in production of battery and conductive materials required for the transition to a lower carbon economy,” Glencore said in the statement.

--With assistance from Akshat Rathi.

To contact the reporter on this story: Thomas Biesheuvel in London at [e-mail]

To contact the editors responsible for this story: Lynn Thomasson at [e-mail], Dylan Griffiths, Nicholas Larkin

[loganair] 18/2/2020 10:12

In an interview BHP saying they want to get more into commodities that are “future-facing metals” naming Copper, Nickel and Pot Ash while wishing to divest themselves of Energy/Thermal Coal.

BHP did not mention anything about metallurgical coal for making steel.

[loganair] 18/2/2020 09:37

Analysts at Shore Capital said the results were "slightly" ahead of their expectations and "significantly" ahead of consensus.

[loganair] 17/2/2020 23:45

Australian mining giant BHP's profit soared nearly 40 per cent on the back of the boom in the price of steelmaking commodity iron ore, but warns demand could be affected by the deadly coronavirus outbreak in its biggest customer base, China.

The first set of results delivered by BHP's new chief executive Mike Henry after he took the reins of the world's biggest miner in January 1 showed underlying half-year profit had soared 39 per cent to $US5.2 billion ($7.8 billion), broadly in line with analyst consensus.

The bumper profit comes after an extraordinary run for the price of the steelmaking commodity iron ore, BHP’s biggest cash generator and Australia's top export, following strong demand from Chinese steel mills coupled with a global supply shortage last year.

BHP declared its biggest-ever half-year dividend of US65¢.

The dividend was lower than analyst forecasts of US71¢. BHP said it had taken a "cautious approach" in light of the near-term volatility posed by coronavirus.

BHP is facing a period of uncertainty in the wake of the deadly coronavirus outbreak which has locked down plants and shipping ports in China, disrupting key supply chains for the resources sector, but Mr Henry expressed confidence in the miner's resilience. He said the human toll from the deadly virus was "tragic" but the the economic hit would be "muted" if the virus was contained by March 31.

"Despite near term uncertainty – due to the coronavirus outbreak, trade policy and geopolitics – we remain convinced about the positive underlying fundamentals of our commodities," he said on Tuesday.

"We see enormous potential to reliably deliver exceptional financial and operational performance, and to grow value and returns."

Mr Henry said BHP had delivered a strong set of half-year results, grounded in solid operational performance.

"BHP is in good shape. We have passionate and committed people hungry to perform," he said. "We have brought together high quality assets in a simple portfolio that allows us to create value at scale."

[gateside] 17/2/2020 23:36

Good looking results. Hopefully an UP day tomorrow.Interim dividend up 18%

[waldron] 17/2/2020 16:59

Iron Ore 86.39USD 1.53(1.77%)
Gold COMEX 1,584.70 -0.11%
Silver COMEX 17.77 +0.20%
Platinum NYMEX 973.70 +0.51%
Copper COMEX 2.63 +1.04%
Brent Crude Oil NYMEX 57.35 +0.05%
Gasoline NYMEX 1.73 +0.39%
Natural Gas NYMEX 1.94 +4.36%
(WTI) 52.1 USD -0.02%



Rio Tinto
4,212.5 +0.37%

Bhp
1,691.6 +0.98%

Anglo American
2,103.5 +0.48%

Glencore
236.65 +1.15%

[loganair] 17/2/2020 11:37

3 stocks I’ll be buying if the market crashes:


“Be greedy when others are fearful.” This Warren Buffett quote captures the US billionaire’s approach to investing. When the market crashes, you’ll usually find him buying up good businesses at bargain prices.

I share Buffett’s view that market crashes can provide great buying opportunities. I think the secret is to focus your cash on companies that offer essential products and have long track records. These normally recover quite quickly.

Today, I want to look at three companies I’d hope to buy in the next market crash.

Essential resources:

Another sector where I’d be keen to buy during market crashes is the natural resources sector – oil and mining. These may be unfashionable, but the world economy remains heavily reliant on supplies of raw materials such as copper, iron ore, oil and gas.

One company that provides all of these at scale is BHP Group (LSE: BHP). This Anglo-Australian firm reported revenue of £44bn last year, on which it made a profit of £8.3bn.

I already own a few of these shares, which currently offer a dividend yield of 6.4%. This tasty income attracts me, but I’m aware profit margins are at the top end of the historic range achieved by the group. A global slowdown could cause commodity prices to fall, cutting into BHP’s profits.

Indeed, forecasts for 2020/21 suggest the group’s earnings will fall by 10% over the coming year. I remain happy to hold BHP and wouldn’t mind buying more. But I’m saving myself for the next big slump, when I hope to buy big at much lower prices.

[florenceorbis] 17/2/2020 07:55

BHP Goldman Sachs Neutral 1,750.00 - Reiterates

[waldron] 14/2/2020 17:03

Iron Ore 84.86 USD -0.28(-0.33%)
Gold COMEX 1,584.80 +0.38%
Silver COMEX 17.73 +0.63%
Platinum NYMEX 967.40 -0.75%
Copper COMEX 2.60 -0.54%
Brent Crude Oil NYMEX 56.97 +1.12%
Gasoline NYMEX 1.72 -0.20%
Natural Gas NYMEX 1.86 +0.05%
WTI 51.85 USD +0.86%

Rio Tinto
4,197 -0.51%

Bhp
1,675.2 -1.14%

Anglo American
2,093.5 -1.81%

Glencore
233.95 -1.62%

[waldron] 13/2/2020 17:45

Iron Ore 85.14USD 0.67(0.79%)
Gold COMEX 1,579.50 +0.50%
Silver COMEX 17.63 +0.73%
Platinum NYMEX 974.20 +0.71%
Copper COMEX 2.62 +0.60%
Brent Crude Oil NYMEX 56.32 +0.95%
Gasoline NYMEX 1.74 +0.67%
Natural Gas NYMEX 1.87 -0.21%
WTI 51.62 USD +0.31%


Rio Tinto
4,218.5 -1.04%

Bhp
1,694.6 -0.70%

Anglo American
2,132 -1.00%

Glencore
237.8 -0.44%

[waldron] 12/2/2020 17:10

Iron Ore 84.47 USD 1.11(1.31%)
Gold COMEX 1,572.70 +0.17%
Silver COMEX 17.52 -0.44%
Platinum NYMEX 969.40 -0.42%
Copper COMEX 2.60 +0.74%
Brent Crude Oil NYMEX 55.90 +3.50%
Gasoline NYMEX 1.72 +3.35%
Natural Gas NYMEX 1.86 +2.25%
WTI 51.22 USD +2.19%


Rio Tinto
4,263 +2.66%

Bhp
1,706.6 +2.04%

Anglo American
2,153.5 +4.92%

Glencore
238.85 +2.36%