Bhp Share Discussion Threads

[p1nkfish] 13/8/2021 15:52

Results soon.
Chance of exit of O&G assets, leading to more favourable ESG tilt and cash.
Weekly MACD looks to have crossed over.

[waldron] 09/8/2021 08:27

Noslien
9 Aug '21 - 08:00 - 5228 of 5229
0 1 0
Rio Tinto and BHP to pay out US$100bn in dividends over next three years predicts JP Morgan

[eriktherock] 05/8/2021 22:08

sp looks range-bound 2050-2350

[waldron] 05/8/2021 21:59

BHP sanctions Shenzi North, moves Trion into FEED phase



Aug 5th, 2021


Offshore staff

MELBOURNE, Australia – The BHP board has approved $544 million in capex to execute the Shenzi North oil project in the US Gulf of Mexico.

The capex approved represents a 100% share interest. According to the company, the project offers very attractive returns at a nominal IRR of more than 35%, a breakeven of about $25/bbl, and a payback of less than two years.

BHP is the operator and holds a 72% share in Shenzi North. Repsol holds the remaining 28% working interest and is expected to make a final investment decision (FID) later this calendar year.

Shenzi North represents the first development phase of Greater Wildling, following exploration success in 2017, with the resource and development plan further refined through ocean bottom node seismic data and analysis.

The project will take advantage of existing infrastructure and production capacity in the nearby Shenzi TLP on Green Canyon block 653. The project will add two wells and subsea equipment to establish a new drill center north of Shenzi with the capacity to produce up to about 30,000 boe/d. Production is expected to begin in the 2024 financial year.

BHP increased its share in the deepwater Shenzi field to 72% with the acquisition of Hess’s 28% working interest in November 2020.

In addition, the company’s board has also approved $258 million in capex to move the Trion oil project in Mexico into the front-end engineering design (FEED) phase. The focus of these studies will be on completion of the engineering, commercial arrangements, and execution planning required to progress to an FID from mid-calendar year 2022.

BHP holds a 60% participating interest in and operatorship of blocks AE-0092 and AE-0093 containing the Trion discovery in the deepwater Gulf of Mexico offshore Mexico. PEMEX Exploration & Production Mexico holds a 40% interest in the blocks.

Geraldine Slattery, BHP President Operations Petroleum, said: “Both Shenzi North and Trion are strong growth assets for our business, providing attractive returns from relatively low carbon intensity resources.

“Shenzi North is aligned with the petroleum strategy to unlock and deliver further growth options in this key Gulf of Mexico heartland.”

08/05/2021

[waldron] 05/8/2021 16:33

BHP Group PLC said Thursday that it has approved a capital expenditure of $544 million to execute an oil project in the U.S. Gulf of Mexico, and a second capital expenditure of $258 million to move an oil project in Mexico into the front end engineering design (FEED) phase.

The Anglo-Australian multinational miner said that production at the Shenzi North oil project, in the Gulf of Mexico, is expected to begin in 2024. BHP holds a 72% interest in Shenzi North. Repsol S.A. holds the remaining 28% working interest.

Regarding the oil project in Mexico, called Trion, in which it holds a 60% interest, the company said that the focus of the studies will be on completion of the engineering, commercial arrangements and execution planning needed to progress to a final investment decision from mid-2022.

"Both Shenzi North and Trion are strong growth assets for our business, providing attractive returns from relatively low carbon intensity resources," said Geraldine Slattery, president BHP petroleum.



Write to Sabela Ojea at [e-mail]; @sabelaojeaguix



(END) Dow Jones Newswires

August 05, 2021 10:14 ET (14:14 GMT)

[waldron] 29/7/2021 07:20

European markets set for muted open as investors react to earnings, Fed decision

Published Thu, Jul 29 20212:04 AM EDT

Elliot Smith
@ElliotSmithCNBC


Key Points

Thursday’s European trading session will be guided by another bumper day for corporate earnings. Credit Suisse, Shell, Total, Volkswagen and Airbus are just some of the big names reporting results.

Fed Chairman Jerome Powell cautioned in a press conference Wednesday that although the U.S. economy has made progress, it still has some way to go before the central bank would look to tighten its accommodative monetary policy stance.

LONDON — European stocks are set for a quiet open as investors digest a fresh round of major corporate earnings and the U.S. Federal Reserve’s reiteration of its dovish policy stance.

Britain’s FTSE 100 is set to open around 6 points lower at 7,011, Germany’s DAX is seen around 29 points lower at 15,541 and France’s CAC 40 is expected to drop around 7 points to 6,602, according to IG data.

[loganair] 28/7/2021 10:52

Oil is taking a well-earned rest. But the bull market isn’t done yet:

The oil price has more than doubled in the last five years. It’s come off the boil recently, but in the longer term, things are still looking good. Dominic Frisby looks at what’s next for oil.



Today we consider oil.

Where’s it going next – up or down? That’s the question we all want to know the answer to, or at least I do, and so that is the question I shall be asking myself today.

Let’s start with some background – and we shall use Brent as our benchmark.

By the way, a little bit of insider info for you: whenever I write about crude oil, the number of hits my article gets plummets. This has been the case for years. House prices, bitcoin, gold – readers can’t get enough of them. But oil? Few seem to care.

Perhaps that in itself is a bullish contrarian indicator. I have found it a reliable investment strategy over the years, especially with commodities, to find markets that nobody cares about. Boring markets. It means the hype is still to come.

My trade of the lustrum has delivered nicely:

I come to this article with a slightly blinkered view. Generally speaking, I am an oil bull. In early 2016, when it slipped below $30, I declared oil “my trade of the lustrum”. A lustrum, for readers unfamiliar with the word, is a five-year period, so that trade is now maturing.

Our chosen vehicle was not BP or Shell, the first companies that spring to mind as ways to play the oil price. For some reason, unknown to me, both are useless as proxies, so we declared avoid and we are both pleased with and justified by that declaration.

The oil price has more than doubled, and BP and Shell are both down. “Never sell Shell” is the motto. Never buy it, is my advice.

No, our chosen vehicle was BHP Billiton (LSE: BHP) at 700p. Despite being known as a mining giant, oil is in fact its single largest product, and, unlike the ETFs, it acts as a much better proxy. It tracks the oil price and gives you a bit of fizz on top. Brent has roughly doubled since our lustrum declaration, going from $36 to $75. BHP has more than tripled.

We recommended it at 700p and now it is 2,316p.

The noughties was the oil decade. In 1999 oil went below $10/barrel. In early 2008 it was $147.50. A fifteen bagger, no less.

The 2010s began well with Brent trading constantly above $100. Then in mid-2014 two years of horrible bear market saw it drop from $115-odd to $27 by early 2016. That was when we started sniffing around.

It hasn’t been an easy lustrum, well though it began. In late 2018, three years after our declaration, oil was flirting with $87 and we looked mightily clever, as we sat stroking a white cat and telling anyone who would listen how clever we were. By 2020 the oil price has gone negative – negative! – and to this day we remain unsure what happened to the cat.

But we held. We HODLd for dear life like the most committed of bitcoin zealots, and the market rewarded us.

Oil wants to sell off right now, but demand will only increase:

Now we are feeling a bit jumpy again. Oil looks like it wants to sell off. In fact, last week it did sell off – it lost ten bucks in barely the blink of an eye. But now it’s bounced back again with impressive vim. Then again, it does now seem to be in something of an intermediate-term downtrend.

The spat between Saudi Arabia and the UAE over oil production quotas seems to have abated, and now the Opec nations together with Russia have agreed to increase their output with the aim of reducing prices and easing pressure on the world economy. The supply boost starts in August.

Please don’t ask me to explain Opec or how that line of thinking works. Surely if you are selling something you want to get the most you can for it, not the least? If you are an oil producer you want a bull market. Especially if oil supplies really are running down – the pressure to get the biggest return intensifies. Surely? They’re not producing oil for the fun of it, or for charity.

It’s always baffled me, and no doubt there is some kind of geo-political shadiness behind the scenes that explains it all, but in the meantime I shake my head and carry on.

BHP, meanwhile, has “gone up a lot”, which shows you the kind of logic I get reduced to sometimes, and often when something “goes up a lot” that means it has to at least pause. Doesn’t it? (No, is the answer).

With some broad brush strokes, oil demand, green energy revolution or not, is set to increase. The Covid setback will look like a blip on a long-term chart of oil demand – falling by around 10% before bouncing straight back – and demand now looks set to hit 100 million barrels per day next year.

I keep banging the drum on this: the Green Energy Revolution is going to increase oil demand. Meanwhile social pressure and government pressure, through taxes and laws, will mean reduced expenditure on exploration and development. The result will be higher prices.

So my outlook is that we consolidate over the next few months, we back and fill. We might even go back and have another look at $50. But in the longer-term, oil goes higher – much higher – and oil at $100 in 2022 is not such a remote possibility.

[grupo guitarlumber] 27/7/2021 15:16

BHP Group PLC said Tuesday that it has made a recommended all-cash offer to acquire all of the outstanding and issued share capital of Noront Resources Ltd. for a total equity value of 325 million Canadian dollars ($259.1 million).

The Anglo-Australian multinational miner said it and its subsidiaries have entered into a definitive support agreement with Canadian-based mining company Noront, which has agreed to support the takeover bid. Noront is focused on developing its nickel, copper, platinum, palladium and chromite deposits in Ontario.

BHP offered to pay 55 Canadian cents a share for Noront, a 69% premium to the company's closing price on Monday. Noront board members who voted on the matter unanimously recommended shareholders accept the offer, BHP said.

BHP Lonsdale already owns 3.7% of Noront shares on a fully diluted basis.

"For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," BHP Chief Development Officer, Johan van Jaarsveld said.



Write to Joe Hoppe at [e-mail]



(END) Dow Jones Newswires

July 27, 2021 08:23 ET (12:23 GMT)

[porsche1945] 27/7/2021 14:16

BHP needs to dump its UK listing as Elliott suggested, this legal ruling is becos bhp has the mad dual listing, only needs to be listed in Oz, could be 30pc upside to shares if it moves to just Oz. U.K. is doomed anyway, index at May 1999 levels, pathetic, so is holding back values anyway.

[waldron] 27/7/2021 09:11

BHP seals nickel supply deal with Tesla for EV batteries

MiningNickel

By Andrew Fawthrop 22 Jul 2021

Tesla will receive supplies from BHP's Nickel West operation in Western Australia, with the pair further agreeing to improve supply chain sustainability
BHP Nickel West 2

BHP's Nickel West operation in Kalgoorlie, Western Australia (Credit: BHP)

BHP has agreed to supply nickel products to US car manufacturer Tesla from its Nickel West facility in Western Australia.

Tesla requires nickel for the batteries used in its electric vehicles (EVs), and owner Elon Musk has previously called on miners to produce more of the metal amid rising demand, and to do so in a sustainable way.

“Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally-sensitive way,” Musk said on an earnings call last year.

BHP said in addition to the supply agreement the pair will “collaborate on ways to make the battery supply chain more sustainable” – including a focus on raw material traceability using blockchain and reducing emissions across their respective operations through renewable energy paired with battery storage.

The terms of the deal between BHP and Tesla were not disclosed, but analysts at Benchmark Mineral Intelligence estimate the contract to be worth up to 18,000 tonnes of nickel annually, starting in 2022.

BHP’s chief commercial officer Vandita Pant said: “Demand for nickel in batteries is estimated to grow by over 500% over the next decade, in large part to support the world’s rising demand for electric vehicles.

“We are delighted to sign this agreement with Tesla, and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation.”


Tesla seeking alternative sources of nickel amid surging demand

As electrification spurs demand for critical minerals around the world, there is growing concern about the strength of Chinese influence over supply chains.

This is the case in Indonesia, the world’s top nickel-producing region, where there are further concerns about the emissions associated with mineral extraction.

The US government recently introduced new policies to strengthen domestic supply chains for critical minerals used in batteries, like nickel and lithium, as it seeks to reduce its reliance on overseas imports and circumvent China’s influence in the market.

California-based Tesla is also seeking to secure non-Chinese-controlled sources for its battery ingredients, and has reportedly agreed two other supply arrangements – with Vale and Prony Resources – for the nickel that will be used in its batteries.

Production at BHP’s Nickel West project is among the “lowest-carbon-intensity nickel in the world”, according to Edgar Basto, the company’s president for Australia minerals.

He added: “The investments we have made in our assets and our pursuit of commodities like nickel will help support global decarbonisation and position us to generate long-term value for our business.”

BHP had considered selling Nickel West just a few years ago, but has since positioned the facility as a supplier to global battery manufacturers. It is nearing completion of a nickel sulphate plant at the Kwinana refinery which will have an annual production capacity of around 100,000 tonnes.

NSENERGY

[grupo guitarlumber] 26/7/2021 09:08

markets down and miners up


Rio Tinto
6,019 +1.57%


Bhp
2,277.5 +0.86%



Anglo American
2,999 +1.18%


Glencore
317.95 +0.70%

[waldron] 23/7/2021 07:22

European markets set to nudge higher as investors watch earnings, data

Published Fri, Jul 23 20212:05 AM EDT

Elliot Smith
@ElliotSmithCNBC


Key Points

July’s flash PMI (purchasing managers’ index) readings are due Friday morning from France, Germany and the wider euro zone.

Earnings season continues to gather steam in Europe, with Thales, Signify and Lonza among those reporting second-quarter results on Friday, while Vodafone issues a trading update.

LONDON — European stocks are set for a modestly higher open on Friday, as investors monitor a slew of economic data from across the continent, along with a fresh round of corporate earnings.

Britain’s FTSE 100 is seen around 13 points higher at 6,981, Germany’s DAX is expected to add around 29 points to 15,544 and France’s CAC 40 is set to gain around 17 points to 6,499, according to IG data.

[kipper999] 22/7/2021 13:33

So, are Berenberg saying the final dividend payment will be US$3.05 which transfers to roughly £2.22 per share in GBP?
Just looking on DividendMax. Last time interim was 65c + the final at 55c; making the full year 120c.
Last interim for this year was $1.01
So, maybe it means a full year of $3.05 - the $1.01 interim gives a final of $2.04

[kipper999] 22/7/2021 13:21

BHP dividend to jump 150% predicts broker

Dividends will be the focus in BHP PLC’s (LON:BHP) annual result statement on 16 August, with broker Berenberg expecting a bumper payout from the mining titan.

Recent production numbers were in line with estimates, said the broker, as were the forecasts for next year.

Berenberg believes BHP has significant capacity to pay excess dividends, given strong FCF generation thanks to high commodity prices.

It has estimated a dividend payment of US$3.05 (US$1.20), or 94% of underlying earnings, to give a yield of about 10% at 2,2406p.

“We believe this is achievable given our forecast US$4.5bn reduction in net debt over FY21 to US$7.5bn, which remains well below the US$12- 17bn guidance range.”

One other thing to watch for is an investment decision for potash project Jansen, which the company has said is on track for a go or no-go decision within the next two months.

But with 2,700p target is Berenberg’s view.

[waldron] 22/7/2021 06:18

SYDNEY--BHP Group Ltd. said it has signed a supply deal with Tesla Inc. for nickel, a commodity used in electric-vehicle batteries, from its Nickel West operations in western Australia.

The world's biggest miner by market value said it and Tesla have also agreed to collaborate on sustainability efforts in the battery industry supply chain, such as ways to trace raw materials from pit to product using blockchain.

BHP Chief Commercial Officer, Vandita Pant, said demand for nickel in batteries is expected to rise more than sixfold over the next decade in big part because of growing demand for electric vehicles. Batteries with a high nickel content are becoming more popular because of the metal's stability under high temperatures and its resistance to overcharging, analysts say.

The two companies will discuss opportunities to lower carbon emissions in their respective operations, as well, by using more renewable energy and battery storage, BHP said.

BHP's Nickel West operation has experienced a turn of fortune in recent times, having been slated for sale as recently as 2019. Now, nickel has become a priority for BHP because of its expectations of a boom in battery demand and widespread electrification. The company will soon begin production from one of the world's largest nickel-sulfate plants.



Write to Rhiannon Hoyle at [e-mail]



(END) Dow Jones Newswires

July 21, 2021 19:55 ET (23:55 GMT)

[ariane] 21/7/2021 08:06

THE MOTELY FOOL AUSTRALIA


BHP (ASX:BHP) share price climbing as miner considers selling oil assets

Many industry experts now believe peak oil may be reached sooner than expected.

Bernd Struben❯
Published July 21, 11:13am AEST



The BHP Group Ltd (ASX: BHP) share price is climbing, up 2% in morning trade.

BHP’s share price gain comes as the wider S&P/ASX 200 Index (ASX: XJO) is also climbing strongly, up more than 1%.

But the company may be getting an added lift after news broke that it’s reportedly considering pulling the plug on its oil and gas ventures.

Amongst the largest companies on the ASX 200, the mining and resource giant has been pumping oil and gas from the ground for more than 50 years.

But with rising environmental, social and corporate governance (ESG) concerns among global investors and the long-term outlook for oil demand cloudy, BHP may be ready to turn off the crude taps…for a price.

Why BHP may sell its oil and gas assets

These days, the profits from BHP’s petroleum segment only account for about 6% of its total profits, according to RBC Capital Markets’ forecast.

Iron ore makes up the lion’s share of profits, some 72%. Copper makes up most of the rest at 21%, with coal providing a slender 1% of profits.

Quoting people familiar with the matter who asked not to be identified, Bloomberg reports, “The world’s biggest miner is reviewing its petroleum business and considering options including a trade sale… BHP wants to exit while it can still get a good price for the assets, aiming to repeat a 2018 sale of its shale business to BP Plc for $10.4 billion”.

The petroleum segement is expected to earn more than US$2 billion (AU$2.7 billion) this year.

According to RBC Capital Markets analyst Tyler Broda (quoted by Bloomberg):

BHP is an outlier in the mining sector for its petroleum business and this is often cited in our investors discussions as a point of detraction. With rising ESG pressures facing the industry, but also as this business potentially enters into a re-investment phase, we can see why management might be contemplating an exit.

Broda values BHP’s petroleum business at some US$14.3 billion.
Peak oil may be here sooner than expected

BHP may be getting on the front foot with its reported petroleum asset sale plans.

A new reported from BloombergNEF, its energy data and analysis firm, states that, “Demand for gasoline and diesel to fuel cars and trucks will peak in 2027 – four years earlier than expected – as more fuel-efficient autos and increasing adoption of electric vehicles curb global consumption.”

According to the report:

Policy makers are driving the automotive market toward low-carbon options and improved fuel efficiency. Automakers and large fleet operators are also, in turn, aiming for long-term decarbonization. Fuel producers with exposure to markets like the US or Europe are poised to see sales of diesel and gasoline decline significantly from current levels over the next decade.

If oil demand is close to peaking, then BHP’s share price may benefit longer term from the company’s reported plans to get out of the oil and gas game.
BHP share price snap shot

Over the past 12 months BHP’s share price is up 29%, outpacing the 19% gains posted by the ASX 200 over that same time.

Year-to-date the BHP share price has gained 18%.

BHP pays a 4.1% dividend yield, fully franked.

[waldron] 21/7/2021 06:29

Stocks to Watch: BHP's petroleum business, which the miner is considering offloading according to a Bloomberg report, has an enterprise value of roughly $11.3 billion, Morgan Stanley estimates. "Although we think that a fossil fuel exit could enhance the company's investment case and ESG credentials, the company's management has consistently commented on the attractiveness of the O&G [oil and gas] business and its willingness to continue to invest in O&G opportunities to improve the division's returns."

BHP CEO Mike Henry said as recently as March that he saw strong value for shareholders from the business for the next decade, and likely beyond, despite recognizing some of the longer-term challenges for oil. BHP declined to comment on the report.

While BHP's robust finances mean it doesn't need to sell the business, the company's management has previously said rising oil prices could influence its approach to it, said RBC Capital Markets. "The question is what would be the use of any freed-up capital at this stage, especially with group cash flow generating substantial shareholder returns already, " said RBC analyst Tyler Broda.