Bhp Share Discussion Threads

[loganair] 21/2/2024 15:30

Glencore, even worse off.

[anhar] 20/2/2024 09:11

H1 divi down 20% from US90¢ to 72¢.

[gateside] 19/2/2024 22:12

Today, we announced underlying attributable profit of US$6.6 billion for the half year. We also announced an interim dividend of 72 US cents per share – a total of US$3.6 billion, equating to a payout ratio of 56%.

[gateside] 19/2/2024 22:10

hTTps://www.bhp.com/news/media-centre/releases/2024/02/bhp-results-for-the-half-year-ended-31-december-2023

[loganair] 01/2/2024 17:46

It always seemed foolhardy to me for BHP to sell the coal assets just to go WOKE and look good while India is buying coal left,, right and centre to keep their lights on.


There was plenty to get excited about at the start of the decade as carmakers from Tesla, Volkswagen and BYD wanted to ensure they had enough lithium, nickel and cobalt for what was hoped to be sustained rapid uptick in EV sales. The price for all three ingredients at least doubled roughly between 2021 and 2022. But they have since gone into reverse as deliveries of new EVs, while still growing, are lower than many expected and manufacturers like Ford Motor and General Motors have cut investments.

At just over $16,000 a tonne, for example, the price of nickel has almost halved over the past 12 months, with a glut of cheap supplies from Indonesia prompting concerns it could be a structural rather than cyclical shift. BHP two weeks ago warned it’s assessing the carrying value of its nickel assets.

[eggbaconandbubble] 30/12/2023 16:02

Duplicate message - FFS (Fat Finger Syndrome!!!) :-)

[eggbaconandbubble] 30/12/2023 15:56

Thank you! Happy New year.

[zho] 30/12/2023 15:32

Hmmm. It works for me using Google, but not other search engines. Anyway, here it is, omitting graphs:

It's time to buy the 'Big Australian'

This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser

At the risk of anthropomorphising a digger of rocks, BHP (BHP) comes across as the most relaxed of the major miners.

While it is the sector’s largest by market capitalisation, the ‘Big Australian’ has kept to its antipodean roots while Rio Tinto (RIO) looks to massively expand its iron ore output with the Simandou mine in Guinea and Glencore (GLEN) shifts beyond its current coal, copper, cobalt and trading remit with a company split in two years.

BHP has used its healthy balance sheet to both buy smaller miners and build organically, but has kept to well-travelled paths. This year’s OZ Minerals buyout has added reserves near the Olympic Downs mine in South Australia, while its next mega-mine is the Jansen fertiliser project in Canada. Meanwhile, BHP plans to sell its stakes in two metallurgical coal mines in Queensland for $4bn (£3.14bn), following the spin-off of the remaining BHP Petroleum assets into Woodside Energy (AU:WDS).

Much of this action may have passed by UK investors, after BHP folded its UK plc legal structure into its Australian limited company entity two years ago, prompting its exit from the FTSE 100. Shorn of its index membership, but with a reshaped portfolio, BHP’s recent share price weakness belies a more compelling company later this decade (providing price forecasts for its major commodities support ongoing investments, of course).


Near-term hurt

Even with a strong – though flattening – iron ore price, investors have shied away from BHP and Rio Tinto this year. This points to scepticism that a price of more than $120 a tonne can hold, given shakiness in the Chinese construction sector.

For BHP, results for its June-end financial year did not give investors much to get excited about, given the fall in earnings and a decline in the final dividend to 80¢ a share, down from 175¢ in 2022.

Analyst forecasts are for sales to remain flat this year, at around $28bn each half – well short of the $35bn peak in the first half of the 2022 calendar year. This has been driven by both lower prices and some operational slowdowns. The Escondida mine in Chile, the world’s biggest copper mine, has seen production bounce around month on month. In October, the most recent period for which output is available, production was at the rate of 1mn tonnes a year, down a sixth in a month. Full-year guidance is currently slated for between 1.08mn and 1.18mn tonnes.

This comes after costs climbed 17 per cent last year, which chief executive Mike Henry has described as “a solid outcome in the context of what other producers are experiencing”.

Iron ore has been stronger. Henry cited “$5 more per tonne in free cash flow than that reported by our largest competitor” as an indicator of BHP’s relative performance. Expansion is also planned for the key Pilbara iron ore complex, with output for this year guided at 282mn to 294mn tonnes, on route to medium-term capacity of 305mn and eventually 330mn tonnes.


Growing plans

In the meantime, there is plenty on Henry’s desk already. On top of running the copper and iron ore units and fighting rising costs, there is the Jansen build and the various OZ Minerals additions in South Australia.

The company has hitched its wagon to four materials for the coming decade: iron ore, copper, nickel and potash. By contrast, Rio Tinto is moving into lithium, and is committed to finally building the sprawling Simandou project in Guinea.

It’s partly this asset that brightens BHP’s relative appeal. Rio Tinto will spend billions on funding a new railway to get the ore to port and has already experienced much grief operating in Guinea. The project’s partners, mostly Chinese, are pushing hard to get moving in a bid to ramp up non-Australian iron ore supply. First output is now expected in 2025, and could eventually produce 200mn tonnes a year – equivalent to 10 per cent of the market.

[eggbaconandbubble] 30/12/2023 15:07

Absolutely zip - All options behind the paywall.

[zho] 30/12/2023 13:24

If you Google "This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser" you should be able to access the article.

[eggbaconandbubble] 30/12/2023 11:12

zho, Can you cut and paste that article - please!

[zho] 29/12/2023 12:25

t's time to buy the 'Big Australian'

This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser

[podgyted] 26/12/2023 09:06

Looking good.

[lippy4] 19/12/2023 18:07

this is doing well, will it keep going i wonder as its one of my best shares today..

[garycook] 06/12/2023 23:21

BHP Executive Leadership Team update
7 December 2023
Today we've announced updates to BHP's executive leadership team.

BHP Chief Executive Officer (CEO), Mike Henry said:

“These new appointments ensure that we continue to build organisational capacity, with the right mix of skills, experience and perspectives to deliver BHP’s strategy and pursue our growth agenda. Our operating environment is increasingly complex, but also rich in opportunity for companies that are best able to positively engage stakeholders, deploy capital to the right opportunities in a disciplined way and deliver safe, reliable operational performance.

BHP continues to make significant progress on its strategy, delivering strong operating performance, an enhanced portfolio more strongly leveraged to the megatrends shaping the world, improved growth options, and a differentiated approach to social value creation – all in support of strong long-term shareholder returns.”

[cumnor] 05/12/2023 10:38

Volume today sums up everything about London as a global financial center. BHP the next one to leave I expect.

[grupo guitarlumber] 09/11/2023 12:18

Upcoming events on BHP Group Limited


2024-FEB-19 Q2 2024 Earnings Release (Projected)

[loganair] 02/10/2023 17:11

Goldman has been looking at the Escondida copper operation in Chile which is co-owned by BHP (57.5%) and Rio Tinto (30%). It notes that the operation has been expanded nine times since first producing copper all the way back in 1992.

Goldman expects a 10th expansion to occur in the coming years, supporting stronger-than-expected copper production growth. In fact, the broker believes the increase in production is going to be well ahead of consensus estimates.

The broker also highlights that the economics are compelling for the expansion. It adds:

While we already include the Escondida expansion in our base case for BHP & RIO, we have analysed the Escondida expansion options from a NPV & IRR perspective, and conclude the economics are compelling, and BHP would benefit from pushing ahead with an expansion of both the concentrator and heap leach capacity. We also highlight that Visible Alpha Consensus Data appears not to include the expansion as consensus 2030 production is ~200kt below GSe and 2025-2030 copper division capex is a collective ~US$10bn below GSe.

[f56] 19/9/2023 19:10

Anybody can cancel anybody! Lol.

[lippy4] 18/9/2023 20:59

typical labour government interference driving a company down..

[ariane] 18/9/2023 20:17

Labor’s work laws will cut dividends, BHP warns
Peter Ker and Tom Richardson
The Review
Sep 18, 2023 – 7.00pm


BHP has warned investors dividends will suffer under the Albanese government’s “same job same pay” agenda, which the miner expects will strip more than $1.3 billion from its annual earnings based on a conservative reading of the bill, equivalent to 5000 jobs.

The nation’s biggest company vowed to “continue to argue the case” against the policy while seeking to mobilise support from its army of direct and indirect shareholders on Monday, which it estimated at close to 17 million Australians.

BHP’s chief financial officer David Lamont. Carla Gottgens

But Workplace Minister Tony Burke signalled he was up for the fight with BHP and its income hungry investors, saying that most companies did not rely on the sort of “loopholesR21; that had allowed BHP to pay some workers less than colleagues who perform the same task at the same mine.

BHP is vulnerable to the government’s proposed “Closing Loopholes” amendment to the Fair Work Act because it employs about 4500 maintenance and production workers through its “Operations Services” subsidiaries, which typically pay lower wages than the BHP subsidiaries that directly own the company’s mines.

The bill seeks to ensure workers employed under structures like BHP’s Operations Services get the same pay as colleagues on different workplace agreements. It is expected to affect companies like Downer and Qantas.


BHP warned in May that the policy would increase its costs by $1.3 billion a year, a claim that was dismissed by the government in the explanatory memorandum attached to the bill when it was tabled in parliament on September 4.

But on Monday, BHP chief financial officer David Lamont said the $1.3 billion estimate was probably conservative given the bill was broader than originally expected. “The original estimate that we did have of $1.3 billion, we think now is actually light on,” said Mr Lamont during a shareholder webinar.

BHP did not initially assume the laws would be extended to service providers like Downer and Thiess, which may also be captured according to paragraph 558 of the memorandum.

“This will have a direct impact to our shareholders,” said Mr Lamont. “$1.3 billion will come directly off our earnings each year that will then flow directly to dividends, we estimate that to be about 30¢ on a dividend payout.”

BHP declared fully franked dividends worth $US1.70 a share, or about $US8.7 billion ($13.5 billion), for the year to June 30, – the fourth-biggest annual payout in the miner’s history.

Mr Lamont’s 30¢ estimate is a hypothetical figure based on the policy being in place in the 2023 financial year, and BHP absorbing a $1.3 billion hit to earnings.

The past five years have marked a golden era for shareholder returns at BHP amid high commodity prices and an inflationary backdrop that has ensured resource producers are price makers, not price takers.

Mr Lamont hinted that jobs could also be affected if BHP sought to mitigate the financial impact of the policy. “Another way to look at it; that $1.3 billion is equivalent to about 5000 jobs in BHP,” he said.

BHP’s estimate that it has about 17 million shareholders includes those who are underlying investors through their superannuation accounts.

Speaking on the same webinar, BHP’s Minerals Australia president Geraldine Slattery said the proposed laws would “cut short” a large number of Australian workers. “For shareholders it is something you should be very concerned about,” she said.

Mr Burke said the reforms would only compel BHP to pay rates it had already agreed to pay some of its staff under workplace agreements.

“It’s odd that a company would be alarmed at having to pay the rates of pay it has already agreed to,” he said. “Most businesses in Australia don’t use this loophole. There are very few workplaces where the hourly rate for a casual is lower than the rate for a permanent worker.”

Plato Investment Management managing director Don Hamson said the imposition of higher costs on BHP would inevitably lead to lower profits, lower dividends and perhaps a lower valuation for BHP shares.

“Ultimately if this is a permanent reduction in earnings this will equal a capital reduction as well in the value of shares, so shareholders will get a double whammy of less capital value and less income along the way,” he said.

Mr Hamson said lower profits would also mean BHP would pay less tax.

“Somebody might be better than someone else at the same job. I don’t pay all my staff the same as some are more productive than others, and have different skills or experience in similar roles,” he said.

The nation’s biggest industry super fund, AustralianSuper, declined to comment.

[f56] 18/9/2023 19:02

For everyone of you online.

I can always find someone on the streets who is more genuine. Lol.

[adrian j boris] 18/9/2023 18:16

BHP to power Queensland coal operations with renewable energy


Duncan EvansNCA NewsWire


Mon, 18 September 2023 9:51AM



Australia’s largest mining company will power its coal operations with wind and solar energy in a power purchase agreement that will help sustain four large-scale renewable energy projects.

BHP will buy wind and solar energy from CleanCo, a government-owned renewable energy retailer, to power up to 50 per cent of its Queensland coal operations by 2030.



It has offtake agreements with the Dulacca and MacIntyre wind farms and the Western Downs solar farm in Southern Queensland.

CleanCo also has a capacity purchase agreement with Neoen’s Kaban wind hub in North Queensland, which means it will purchase 100 per cent of the energy generated at the hub.

BHP president Australia Geraldine Slattery said the link with CleanCo would improve the long-term sustainability of BHP’s business and support regional communities and jobs.

Some 1500 construction jobs went into building the four projects, with Dulacca expected to come online in late 2023 and MacIntyre due for completion in 2025.

“We are increasing renewable electricity at BMA in line with our decarbonisation commitments to 2030 and beyond,” Ms Slattery said.


“We expect demand for Queensland’s higher-quality metallurgical coal to remain strong for many years to come, as major steelmakers look to reduce their emissions intensity while delivering the steel needed to support global population growth and decarbonisation infrastructure.̶1;

BHP has a purchase agreement in place with CleanCo to 2025 and it will now extend to the end of 2030.

The miner hopes to achieve net zero operational greenhouse gas emissions by 2050 and substantial parts of the company’s operations are being reconfigured to meet the goal.

In August, the company signed an MOU with Toyota Australia to electrify its fleet of 5000 vehicles.

In Central Queensland, BHP operates seven coal mines in conjunction with Mitsubishi.

Originally published as BHP to power Queensland coal operations with renewable energy


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