Bhp Share Discussion Threads

[kipper999] 19/8/2021 15:45

Try DividendMax
Think it's 2 Sept XD

[a0469514] 19/8/2021 15:14

Can anyone tell me the ex divided date please?Hard to understand the share price here when it will pay a 10.2% yield for the last 12 months. It is rare to find such a rock solid company making such a large payout.Presumably the market thinks this may be a one off bumper year and future dividends will be less. For those who don't know, any shares you buy before the ex divided date will qualify for the final dividend (about 6.2%) which you will receive in a matter of weeks. Yes, the share price will fall on ex dividend day but it usually recovers quite quickly. You will then get a twice yearly payout for as long as you hold the shares. The amount depends on how well the company does but the world is certainly going to need iron ore and commodities, particularly copper and battery elements for a long time yet.It looks a no brainer buy to me, just a matter of timing to ideally get them at the bottom of the present dip, though that probably will not make much difference to the long term performance in reality.Xylos

[florenceorbis] 19/8/2021 14:58

BHP to merge petroleum assets with Woodside in $29bn deal

Oil & GasUpstreamOffshore

By NS Energy Staff Writer 18 Aug 2021

Upon closing of the merger, Woodside’s shareholders will own a 52% stake in the enlarged oil and gas company, which will have production assets in Australian waters, the US Gulf of Mexico, offshore Trinidad and Tobago, and Senegal
210817_AURORA_Tile

BHP and Woodside to merge their respective oil and gas businesses. (Credit: BHP)

BHP Group has signed a merger commitment deed with Woodside Petroleum to combine its oil and gas business with the latter to create a A$41bn ($29.8bn) energy company.

A sales and purchase agreement (SPA) in this regard is expected to be signed by the parties in October 2021.

The consideration will involve the distribution of Woodside’s shares to BHP. Post-merger, Woodside’s shareholders will have a stake of 52% in the enlarged company, while BHP’s shareholders will own the remaining 48% stake.

The combination is expected to create one of the top 10 energy companies in the world on the basis of production volumes.

The enlarged firm will have nearly 200 million barrels of oil equivalent (MMboe) production in 2021. Of this, 46% will be liquefied natural gas (LNG), 29% will be oil and condensate, and 25% will be domestic gas and liquids.

Its 2P reserves will be 2,023MMboe, while the 2C resources will be 8,356MMboe.

The enlarged entity will have production assets in Australian waters, the US Gulf of Mexico, offshore Trinidad and Tobago, and Senegal.

BHP has been reportedly planning an exit from oil and gas operations as part of its efforts to shift away from fossil fuels.

BHP CEO Mike Henry said: “The merger of our petroleum assets with Woodside will create an organisation with the scale, capability and expertise to meet global demand for key oil and gas resources the world will need over the energy transition.

“Bringing the BHP and Woodside assets together will provide choice for BHP shareholders, unlock synergies in how these assets are managed and allow capital to be deployed to the highest quality opportunities.

“The merger will also enable the skills, talent and technology of both organisations to build a resilient future as the world’s needs evolve.”

As part of their deal, Woodside and BHP have come up with a plan to target final investment decision (FID) for the Scarborough project in Australia by the year-end.

In this connection, BHP will have an option to sell its stake of 26.5% in the Scarborough joint venture (JV) to Woodside.

The company also agreed to divest its 50% stake in the Thebe and Jupiter joint ventures to Woodside, subject to the Scarborough JV reaching an FID by 15 December 2021.

Should the deals take place, then BHP will be entitled to a payment of $1bn and a contingent amount of $100m, which will be subject to an FID taken on the Thebe development in the future. The option is exercisable by the company in the second half of next year.

Woodside CEO and managing director Meg O’Neill said: “Merging Woodside with BHP’s oil and gas business delivers a stronger balance sheet, increased cash flow and enduring financial strength to fund planned developments in the near term and new energy sources into the future.

“The proven capabilities of both Woodside and BHP will deliver long-term value for shareholders through our geographically diverse and balanced portfolio of tier 1 operating assets and low-cost and low-carbon growth opportunities.”;

The merger, which is expected to be closed in Q2 2022, will be subject to confirmatory due diligence, negotiation and signing of transaction documents, and shareholder, regulatory, and other preceding conditions.

[waldron] 18/8/2021 20:53

FTSE 100 to Lose Second-Biggest Name as BHP Goes Home

By Harry Brumpton
and Thomas Biesheuvel

17 août 2021, 08:42 UTC+2 Updated on 18 août 2021, 02:03 UTC+2

Biggest miner plans to change to primary listing in Australia

Dual listing started in 2001 following Billiton merger



The U.K.’s blue-chip FTSE 100 Index will lose its second-biggest stock by market value and the world’s largest mining company, after BHP Group announced plans to simplify its listing structure.

BHP will move to a primary listing in Australia after collapsing a dual arrangement that dates back to the company’s creation 20 years ago when Australia’s BHP Ltd. merged with rival Billiton. The change, one of several announced Tuesday that also included a plan to exit the oil and gas business, means BHP can be more nimble in pursuing deals, Chief Executive Officer Mike Henry told reporters.

However, the deletion from the FTSE 100 will also prompt asset managers and exchange-traded funds which track the benchmark to sell their holdings in BHP. And the loss will be a blow to the index -- the London Stock Exchange is seeking to attract new listings as the U.K. maps its future outside the European Union. It still includes several of the world’s other huge mining companies though, including No. 2 Rio Tinto Group, another dual-listed stock.

“Clearly it’s a big blow losing such a heavyweight,” Neil Wilson, chief market analyst at Markets.com, said in an email. “But it will help balance the FTSE 100 a bit more with less leaning on basic resources. Bit less mining, bit more room for up-and-coming tech is surely not a terrible thing,” he said, adding that ultimately BHP is an Australian company at heart and should be listed there.

BHP declined as much as 6.9% as of 10:02 a.m. in Sydney trading Wednesday, as the flagship S&P/ASX 200 index fell 0.4%. The producer rose 3.4% in London trading Tuesday.

[waldron] 18/8/2021 19:32

China plans to reopen copper mine in Afghanistan
Beijing seeks closer ties with the Taliban
Didi Tang, Beijing
Wednesday August 18 2021, 12.00pm BST, The Times

MATTHEW C RAINS/ALAMY

A Chinese consortium awarded the contract to develop the world’s second-largest copper mine in Afghanistan is planning to return after years of delay as Beijing seeks closer ties with the Taliban.

“We would consider reopening it after the situation is stabilised and international recognition, including the Chinese government’s recognition of the Taliban regime, take place,” an unnamed source at the state-owned China Metallurgical Group Corp (MCC Group) told the Global Times, a party-run newspaper.


The group, along with another Chinese company, Jiangxi Copper, were awarded a 30-year contract worth $2.9 billion in 2008 to extract, smelt and process raw copper at the Mes Aynak copper mine, believed to the world’s second-largest with an estimated deposit of 5.5 million metric tonnes of high-quality copper ore.

[kipper999] 18/8/2021 19:10

So, now the Taliban have taken over Afghanistan, they want to reopen the 'worlds second largest copper mine' with the help from the Chinese.
Maybe selling off all oil & gas assets is not such a great idea

A Chinese consortium awarded the contract to develop the world’s second-largest copper mine in Afghanistan is planning to return after years of delay as Beijing seeks closer ties with the Taliban.

“We would consider reopening it after the situation is stabilised and international recognition, including the Chinese government’s recognition of the Taliban regime, take place,” an unnamed source at the state-owned China Metallurgical Group Corp (MCC Group) told the Global Times, a party-run newspaper.

hxxps://www.thetimes.co.uk/article/china-plans-to-reopen-copper-mine-in-afghanistan-8q9jxpcxn

[loganair] 18/8/2021 17:44

Hargreaves Lansdown - The effect of the unification of the corporate structure in Australia is more nuanced. Management point towards increased corporate flexibility as a major benefit of unification, making Merger's & Acquisitions easier, not least in the case of the Woodside deal. Practically speaking the unifications shouldn't affect shareholders too much, with BHP maintaining a London listing, but it does mean BHP would likely fall out of the FTSE 100.

[kipper999] 18/8/2021 17:43

Ok, i guess the Woodside & listing uncertainty will sort itself out in the end.
What really intrests me is where will the share price head over the next few day's to XD. For myself, am looking for a capital gain within my ISA Trading p/f account.

IMB & HSBC go XD this week for 1.25/1.35% divi respectivly. So i can't see the share price moving a great lot prior. But BHP have just come out with a bumper dividend of $2, which if my sums add up, equates to a 6.5% return at £22
I'm going for the strategy of topping up on the way down with the possible chance of a rally to XD.
Should this not quite work out i will hold and accept i got it wrong (again!!)& take the $2 divi

[grupo guitarlumber] 18/8/2021 17:38

FWIW

BHP NOT THE ONLY MINER THAT FELL TODAY

Bhp
2,218 -5.94%




Rio Tinto
5,338 -2.57%


Anglo American
3,235.5 -2.21%


Glencore
318.25 -1.94%

[grupo guitarlumber] 18/8/2021 17:30

BHP : Price Target From RBC Cut to GBP23 From GBP24 Amid Unification, Petroleum Spinout; Outperform Maintained

08/18/2021 | 04:32pm BST

[loganair] 18/8/2021 17:20

It is expected that a unified BHP would have its primary listing on the ASX, a standard listing on the London Stock Exchange (LSE), a secondary listing on the Johannesburg Stock Exchange (JSE), and a sponsored Level II ADR program on the New York Stock Exchange (NYSE).

[p1nkfish] 18/8/2021 16:58

arja, read the presentation and full release from BHP.

[arja] 18/8/2021 16:51

loganair ,
It is not what I saw as shown hereunder . a bit long - sorry .

It was a series of announcements from BHP on Tuesday with a lot of naughts and a historic, company-changing restructure that will see a long-term boost to the value of the company’s share price.

BHP will pay shareholders a $US2 a share final dividend, sell its oil and gas business to Woodside, start the huge Jansen potash project in Canada as a replacement and end dual listing of the company in London and bring the vastly changed company back under its Australian listing.

The company will sell its oil and gas business to Woodside in a $US17 billion deal (see separate story on that deal and the Jansen go-ahead).

The final dividend is more than three times the 65 cents a share paid for 2019-20 and shareholders can thank booming iron ore and copper prices for that boost, along with an assist from its about to be sold oil and gas business.

The record final dividend takes BHP’s returns to shareholder to more than $US15 billion for the full year to June 30 – that more than $A20 billion.

BHP reported a profit from operations for the year of a record $US25.9 billion, up 80% and underling earnings before interest, tax, depreciation and amortisation of $US37.4 billion.

That was a record gross profit margin of 64% on total revenues for the year of $US60.817 billion.

The attributable profit of $US11.3 billion was not an accurate indication of the bottom line for the company. That’s because that figure includes an exceptional loss of $US5.8 billion predominantly related to the impairments of the potash and energy coal assets, and the current year impact of the Samarco dam failure).

Underlying attributable profit for the year was $US17.1 billion, up 88% from the Covid hit 2019-20 year (especially the June, 2020 half year).

In yesterday’s statement the company said its strategy is to deliver long-term value and returns through the cycle.

“We aim to do this through owning a portfolio of world class assets with exposure to highly attractive commodities which benefit from the mega-trends playing out in the world around us, by operating them exceptionally well, by maintaining a disciplined approach to capital allocation and through being industry leaders in sustainability and the creation of social value.

“As the world continues to evolve, BHP is positioning itself to benefit from the mega-trends and through sustainability leadership,” the company said in the statement.

Besides the Woodside deal, the Jansen go ahead, the higher profit and record dividend, the ending of the dual listing with London is a major development.

BHP says the move will “unify our corporate structure under BHP’s existing Australian parent company to realise simplification and enhanced strategic flexibility benefits.”

That will end 20 years as a dual listed company (along with Rio Tinto). The structure was put in place when BHP merged with the London-based South African focused Billiton.

Shareholders in the Plc company listed in London will be taken onto the Australian register and their shares will be quoted here in Australian dollars. They will get Australian shares on a one for one basis.

Many UK institutions won’t like that because of the currency changes – the London shares are quoted in sterling. London holders will whine in moan through the likes of the Financial Times, and other UK media.

The company had net debt at of just $US4.1 billion, compared to $US12.0 billion at June 2020.

“In light of our announcement to pursue a merger of our Petroleum business with Woodside, we will be reviewing our net debt target and will provide an update with our interim results for the 2022 financial year in February 2022,” BHP said.

Some analysts took t

[arja] 18/8/2021 16:46

kipper99,
yes , I think it is not yet a done deal but likely to go through . hard to put a number on anything now as base metal prices hit today on LME and BHP in OZ will get hit again for sure and it might flow through to BHP in uk on thursday . My timing to buy in oz was really off ( wry smile ) .

[loganair] 18/8/2021 16:43

Incorrect - BHP are delisting from the FTSE Premium market and going to the FTSE Standard listing.

This means BHP will no longer be included in the FTSE index and therefore tracker funds will have to sell, however no real change for the average UK PI.

BHP share holders are going to be given new shares in Woodside Petroleum who are currently only listed on the AEX, however Woodside are saying that they are now looking to list on other oversea exchanges which most probably means they'll also go for a FTSE Standard listing.

[kipper999] 18/8/2021 16:38

Also, i did a Google search for BHP & selected News.
There are a few articles giving the impression that the Woodside sale might not be quite so popular....
Maybe it's not such a 'done' deal....

[loganair] 18/8/2021 16:36

BHP unexpected announcement that it plans to unify its dual-listed company (DLC) structure and shift its primary listing to Australia has had a mixed response, while the mining giant’s exit from petroleum increases the possibility of acquisitions elsewhere.

“We view the exit from Petroleum as a good strategic step, although we see limited valuation uplift from the proposed structure and it leaves BHP short on growth options,” said Deutsche Bank analyst Liam Fitzpatrick. “Petroleum houses a large share of BHP's near-medium term growth projects and exit from this business increases the likelihood of copper and nickel acquisitions, in our view.”

[arja] 18/8/2021 16:25

kipper99,
will comment later as closing a short in another stock at the moment - I rarely short but today was exception.

Action- yes , will be delisted in UK and you get equal number of BHP on the ASX .

[kipper999] 18/8/2021 15:44

Well, that's a 12% drop from the high yesterday of £25
Just topped up @ £22 dead to raise my holding here. Previous buys @ 1,999 & 2,014.
£10k in now.
May go lower tomorrow, who knows.& may buy again.
Feel reasonably ok with these with the mega divi XD in 10 day's.
Hoping for a run & quick cap gain.....
Good luck all

[loganair] 18/8/2021 13:56

Basically BHP will become an Iron Ore, Copper, Nickel and Potash for fertilizer miner with some Gold and Silver from their investment in Solgold, Zinc and Lead thrown in for good measure.

[kipper999] 18/8/2021 13:51

Action, scroll back & someone gave a good answer to this question yesterday

The upcoming divi of $2 is c£1.45
That's roughly 6.5% @ £22 SP
I think a lot of buying will raise the share price on the run up to XD on 2 Sept.
10 trading day's left to watch what happens.
Not sure i'll get my 2,050

Although futures off another 5% in US. See how that impacts us @ 2:30pm on open