Bhp Share Discussion Threads

[waldron] 21/7/2021 00:11

CURRENT PRICE USD 219.36

[waldron] 21/7/2021 00:05

Iron ore at $300? Mining expert picks 3 stocks that could be winners

Published Tue, Jul 20 202112:35 AM EDT

Weizhen Tan
@weizent


A BHP Billiton Ltd. freight train carrying iron ore travels along a rail track towards Port Hedland, Australia.

Ian Waldie | Bloomberg | Getty Images

Iron ore is in a major bull market and could hit $300 a ton, according to one analyst, who picked out three mining stocks to watch if you’re a long-term investor.

[la forge] 20/7/2021 10:12

aye

all the best kip

[kipper999] 20/7/2021 09:55

LaForge at al,
good trading review IMO. Bodes well for Full Year Results on 17 Aug
Am hoping my BP, RDSB & BAT results next week will be the start of a climb back for my battered p/f
Week after HSBC, Lgen & Capita for me. Could do with some good news from all of them....

[la forge] 20/7/2021 09:29

Sean Farrell
Sharecast News

20 Jul, 2021 07:54

BHP in 'great shape' after record production at some mines


BHP said it was in "great shape" after the miner achieved record production at iron ore, coal, and copper and gold assets during the last financial year.

The FTSE 100 company achieved its guidance for copper, iron ore, metallurgical coal and nickel and revised guidance for energy coal in the year to the end of June. Petroleum guidance was slightly above guidance, BHP said in an update.

BHP said it achieved record production at Western Australia Iron Ore (WAIO) and of metallurgical coal at the Goonyella facility. BHP's Olympic Dam mine had the highest copper production since it was acquired in 2005 and record gold production.

The Escondida copper mine's production dropped 10% as record concentrator throughput was more than offset by the impact of expected lower concentrator feed grade and lower cathode production.

Mike Henry, BHP's chief executive, said: "BHP safely delivered another year of excellent operational performance and its second consecutive financial year with zero fatalities at our operated assets. BHP is in great shape. Our operations are performing well, we continue our track record of disciplined capital allocation, and our portfolio is positively leveraged to the megatrends of decarbonisation, electrification and population growth."

BHP achieved cost guidance at WAIO, Escondida and Queensland Coal. Petroleum unit costs are expected to be slightly better than guidance and costs at New South Wales Energy Coal are likely to be marginally more than expected.

[la forge] 20/7/2021 09:11

Dominic O'Kane from JP Morgan retains his positive opinion on the stock with a Buy rating. The target price continues to be set at GBX 2810.

[la forge] 20/7/2021 09:09

Tyler Broda from RBC retains his positive opinion on the stock with a Buy rating. The target price is unchanged at GBX 2400.

[la forge] 20/7/2021 08:10

SYDNEY--BHP Group Ltd. Tuesday reported a lift in fiscal-year iron ore production, although weaker annual output of copper and petroleum. Here are some remarks from its fourth-quarter operational report:



On group output:

"We achieved production records at our Western Australia Iron Ore operations and the Goonyella Riverside metallurgical coal mine in Queensland. We maintained all-time high concentrator throughput at our Escondida copper mine in Chile. Olympic Dam in South Australia had its highest annual copper production since BHP acquired the asset in 2005, and its best-ever gold production."



On Covid-19 impact on copper business:

"For the 2021 financial year, our Chilean assets operated with a substantial reduction in their operational workforces as a result of the preventative measures we implemented to mitigate the impact of Covid-19. In the June 2021 quarter, escalating Covid-19 infections in Chile led to increased pressures on Chile's health system, which resulted in strict quarantine measures and border restrictions. We expect the operating environment for our Chilean assets to remain challenging, with reductions in our on-site workforce forecast to continue in the 2022 financial year."



On projects:

"During the year, we successfully achieved first production at four major development projects, all of which were delivered on or ahead of schedule and on budget. The South Flank iron ore project in Western Australia and the Ruby oil and gas project in Trinidad and Tobago both achieved first production in May 2021. The Atlantis Phase 3 petroleum project and the Spence Growth Option copper project achieved first production in the first half of the 2021 financial year."



On exploration:

​"In exploration, we have continued to add to our early stage options in future facing commodities throughout the year, with the signing of an agreement for a nickel exploration alliance in Canada and of a farm-in agreement for the Elliott copper project in Australia. At Oak Dam in South Australia, next stage resource definition drilling to inform future design commenced in May 2021."



Write to Rhiannon Hoyle at [e-mail]



(END) Dow Jones Newswires

July 19, 2021 19:18 ET (23:18 GMT)

[fuji99] 20/7/2021 07:49

Excellent production update. Better than expected.

[waldron] 20/7/2021 07:32

European markets set for strong rebound after global retreat on Covid fears

Published Tue, Jul 20 20211:15 AM EDTUpdated An Hour Ago

Holly Ellyatt
@HollyEllyatt


Key Points

European stocks are expected to open robustly higher on Tuesday, a day after global markets retreated on fears of a Covid-19 resurgence.

London’s FTSE is seen opening 35 points higher at 6,874, Germany’s DAX 110 points higher at 15,216, France’s CAC 40 up 42 points at 6,328 and Italy’s FTSE MIB up 92 points at 24,031, according to IG.

[kipper999] 19/7/2021 11:50

BHP Operational Review of the Year tomorrow (Tuesday)

Full Results 17 August........

[waldron] 19/7/2021 06:57

European markets set to open sharply lower as investors digest OPEC deal

Published Mon, Jul 19 20211:18 AM EDTUpdated 27 Min Ago

Holly Ellyatt
@HollyEllyatt


Key Points

European stocks are expected to open sharply lower on Monday as markets digest the latest OPEC + announcement regarding oil production and continue to brood on inflation.

Britain’s FTSE is seen opening 50 points lower at 6,953, Germany’s DAX 85 points lower at 15,440, France’s CAC 40 down 36 points at 6,416 and Italy’s FTSE MIB down 208 points at 24,472, according to IG.

[waldron] 17/7/2021 08:39

EXTRACT


Required increase in metals supply presents challenges for producers and consumers

Wood Mackenzie’s report shows the forces that are shaping up to drive this boom are unique. But even for those commodities stepping into the limelight, it said decarbonisation creates as many risks as it does opportunities.

Under the energy researcher’s proprietary Accelerated Energy Transition-2 (AET-2) scenario, which is consistent with limiting the rise in global temperatures since pre-industrial times to 2C, 360 million tonnes (Mt) of aluminium, 90 Mt of copper, and 30 Mt of nickel will feed the energy transition over the next 20 years.

The report notes that this level of additional metal presents obvious challenges for producers and consumers alike.

“As with all commodities, the metals that are key to the transition will have to bring on replacement capacity to replace existing mines as they deplete and close,” said Morris.

“Under our base case, which is broadly consistent with a 2.8-3˚C global warming view, this requirement is manageable. However, under our AET-2 scenario, the new annual installed capacity required becomes eye-watering.

“By 2030, cobalt producers would need to have built 167% more supply than we currently have in our forecast, while copper would need to find 85% more mine supply than in our base-case forecasts. This will present a huge challenge for the sector.”

[la forge] 09/7/2021 09:00

In a research note published by Dominic O'Kane, JP Morgan advises its customers to buy the stock. No major update to the target price set at GBX 2780 compared to GBX 2810.

[loganair] 09/7/2021 09:00

Broker Berenberg has upgraded mining giant BHP (BHP) as despite impending volatility, strong free cashflow should drive bumper dividends.

Analyst Richard Hatch upgraded his recommendation from ‘hold’ to ‘buy’ and increased the target price from £22 to £27 on the stock, which closed down 1.5%, or 34p, at £21.68 on Thursday on a difficult day for the FTSE 100.

Hatch predicted a ‘fairly volatile summer for mining equities’ due to a slowdown in Chinese steel production that could hit iron ore demand. However, he said iron ore prices ‘remain fairly tight’.

‘BHP has near-term dividend momentum, with iron ore offering the potential to surprise to the upside,’ he said.

‘This underpins a c.12% dividend yield for both financial year 2021 and 2022, with scope for more returns as strong free cashflow moves net debt below the target range.’

He added that BHP is lower risk than peer Anglo American (AAL) and ‘for investors seeking a high-quality yield play…we believe that BHP has attractive near and medium-term momentum’

[sarkasm] 08/7/2021 14:55

(MT Newswires) -- Berenberg on Thursday upgraded BHP Group (BHP.L) to buy from hold and raised its price target to 27 pounds sterling ($37.12) from 22 pounds.

[waldron] 05/7/2021 07:54

European markets head for cautious open; oil price watched ahead of OPEC+ talks

Published Mon, Jul 5 20211:06 AM EDT

Holly Ellyatt
@HollyEllyatt


Key Points

European stocks are expected to open slightly higher on Monday as markets keep an eye on oil prices ahead of a crunch meeting of the OPEC+ oil producing alliance.

London’s FTSE is seen opening 13 points higher at 7,131, Germany’s DAX 8 points higher at 15,646, France’s CAC 40 up 3 points at 6,551, according to IG.

[gibbs1] 04/7/2021 18:06

WORLDOIL.COM



OPEC’s latest standoff puts the oil cartel’s survival at risk

By Javier Blas on 7/4/2021


LONDON (Bloomberg) --A high-stakes game of oil diplomacy pits Saudi Arabia against long-time ally Abu Dhabi. And the result of their fight will shape not just the price of oil for the next year, but the future of the global energy industry.

The United Arab Emirates on Friday blocked an OPEC+ deal that cartel leaders Russia and Saudi Arabia hashed out to increase output, demanding better terms for itself. After two days of bitter negotiations, and with the UAE the only holdout, ministers halted the discussions until Monday, leaving markets in limbo as oil continued its inflationary surge above $75 a barrel.



Despite diplomatic talks continuing, the standoff appeared to continue on Sunday, with the UAE reiterating its demands.

Abu Dhabi is forcing its allies into a difficult position: accept its requests, or risk unraveling the OPEC+ alliance. Failure to reach a deal would squeeze an already tight market, potentially sending crude prices sharply higher. But a more dramatic scenario is also in play -- OPEC+ unity may break down entirely, risking a free-for-all that would crash prices in a repeat of the crisis last year.

As in all negotiations, there may be an element of bluff. Late last year, Abu Dhabi even floated the idea of leaving OPEC. While this time the UAE hasn’t repeated the threat, no one even at the heart of the talks is sure what could happen if negotiations fail on Monday.

An exit would almost certainly trigger a price war -- and in that scenario everyone loses. The bluff is to show your country is ready to take the pain better than the others.

But there’s also a more subtle poker game playing out, and in that hand, the UAE has some cards. The country wants to pump more oil after spending billions to increase production capacity. At some point, the others in the alliance will probably have to recognize Abu Dhabi’s new status, redrawing the terms of engagement to allow it to pump more.

“The UAE will push hard at this juncture to use this meeting to get their excess capacity recognized and brought back online,” said Roger Diwan, oil analyst at consultant IHS Markit Ltd. “Compromise exists, but it is just how they bring their capacity, not if.”

OPEC Math

At the center of the dispute is a word key to OPEC+ output agreements: baselines. Each country measures its production cuts or increases against a baseline. The higher that number, the more a country will be allowed to pump. The UAE says its current level, set at about 3.2 million barrels a day in April 2020, is too low, and says it should be 3.8 million.

“This was an inevitable fight,” said Ben Cahill, a senior fellow at the Center for Strategic and International Studies in Washington. “The differences are real and the UAE will continue to make noise until it achieves a higher baseline.”

The current OPEC+ production deal ends in April 2022, when every country will be able to re-negotiate its baseline. But now Saudi Arabia and Russia, with the support of everyone else at OPEC+, want to extend the agreement to the end of next year. The UAE has rejected the idea of extending the broader accord unless its baseline is changed, effectively killing the proposal negotiated by Moscow and Riyadh.

There was no sign of progress as of Sunday morning in Abu Dhabi, with the UAE still refusing to agree to an extension on current terms.

“The UAE is for an unconditional increase of production,” but a decision to extend the deal until the end of 2022 is “unnecessary to take now,” Energy Minister Suhail Al-Mazrouei said in an interview with Bloomberg Television. “We still have eight to nine months in this agreement, and we’re talking about plenty of time for this to be discussed at a later stage.”

In April 2020, Abu Dhabi accepted its current baseline, but it doesn’t want the straitjacket to stay on for even longer. Abu Dhabi has spent heavily to expand production capacity, attracting foreign companies including French oil giant TotalEnergies SE. With Iran potentially returning to the oil market soon if it reaches a nuclear deal, patience for getting new terms is wearing out.

Claiming a higher baseline is different to having one. Often countries make outlandish declarations of how much oil they can produce -- just to get a better deal. Few take those assertions seriously.

But last year the UAE proved it had the extra barrels. During the price war, it pumped a record of 3.84 million barrels a day, according to OPEC estimates. Abu Dhabi says it produced more than 4 million. Before then, it had never produced more than 3.2 million and few believed it was able to produce much more. Now it can prove it has the barrels, that strengthens its hand in the negotiation.

The Emirate proposal would even benefit Saudi Arabia, which could also secure for itself a higher baseline. But Riyadh has rejected it. The biggest loser would be Russia, which would see a much lower output target. And Saudi Arabia needs Russia onside.

Aside from cartel arithmetic, geopolitical tensions are also in play.

The country’s de facto ruler, Crown Prince Mohammed bin Zayed, once enjoyed close relations with the Saudi Crown Prince, Mohammed bin Salman. But the relationship between the two heirs appears to have cooled in recent months. And Abu Dhabi is flexing its muscles beyond the oil market, with bold geopolitical moves from Yemen to Israel. In another sign of tension as the OPEC standoff intensified on Friday night, Saudi Arabia moved to restrict citizens’ travel to the UAE, citing the pandemic.

Bad Timing

OPEC has been here before. There’s often friction in member countries between the oil ministry, which deals with the cartel and commits to quotas, and the national oil companies, whose priority often is to expand production capacity. In this case, Sultan Al Jaber, the head of the Abu Dhabi National Oil Co., led the charge to increase capacity.

In the 1990s, it was Petroleos de Venezuela SA, the state-owned company of the Latin America country, which pushed ahead with an aggressive capacity expansion. With oil demand growing slowly in the 1990s, Caracas and Riyadh clashed, and the fight ultimately triggered a price war in 1998 that saw Brent crude plunge below $10 a barrel.

In the 2000s, Algerian national energy giant Sonatrach SpA did the same, but benefited from better timing: booming Chinese oil demand allowed it to lift production 60% from 1996 to 2006 with the tacit consent of OPEC.

Adnoc’s push was hindered by two factors: U.S. shale production and the coronavirus pandemic, both of which dented demand for OPEC barrels over the last five years. Al Jaber misread the market, or was unlucky with the timing.

Who wins the standoff this time may depend on luck, a bit of bluffing, and who fears he has the most to lose from OPEC unraveling.