BHP Billiton Share Discussion Threads

[loganair] 07/12/2016 09:42

It´s this time of year again when the pundits make their predictions for next year.

They´re saying they expect gold and silver to trade a little lower while forecasting the price of Copper, Iron Ore and Thermalite Coal to be substantially higher in 2017 compared to 2016 which bodes well for BLT, Zinc is also expected to carry on doing well.

[anley] 05/12/2016 16:52

Zinc as someone has said is good and now we have oil in the the Gulf of M to help profits along............good deal I am told at sensible prices.

[au24] 29/11/2016 08:49

Buy on any dips,as we have a long way still to go.

[loganair] 25/11/2016 11:06

Spot price for Zinc now nearly $2,700 per ton. What could of been when it comes to ZOX, too small and under funded to with stand a short term drop in the Zinc price to $1,450 per ton.


Dominic Frisby - Today we turn our attention to a metal which often passes without notice.

It isn’t glamorous like gold or silver, nor is it rare like platinum or rhodium.

It isn’t controversial like uranium, strategic like tungsten or cobalt, nor even widely talked about like iron or copper.

But it has, quietly, had a stellar 2016. It’s currently up almost 60%.

Today we’re talking zinc…


Zinc is in short supply:

Having started 2016 at just over 70c per pound, the zinc price currently stands at $1.17 a pound.

All of the usual factors have been driving the price. Firstly, there’s a lack of supply. China is the world’s top producer, contributing some 37% of global supply last year. However, last year it shut down some 26 lead and zinc mines for environmental reasons.

In addition, Australia’s Century mine and Ireland’s Lisheen mine, which between them produced about 5% of the global supply of zinc, have shut down due to depletion. Meanwhile, Glencore Xstrata’s Perseverance and Brunswick mines also recently closed.

As the zinc supply has dwindled, so the price has risen – and there’s nothing like a rising price to bring in more buyers.

After iron, aluminium and copper, zinc is the fourth most used metal in the world. (Although be aware that in some years this title falls to titanium). Annual zinc demand stands at 13.4 million tonnes.

Per year, it is a $34bn market. To put that number in some kind of perspective, silver is about an $18bn market and platinum just $8bn. Copper meanwhile, is closer to $150bn.

What is zinc used for?

The main uses for zinc are as follows.

Galvanising: this is the most important use for zinc, accounting for about 50% of annual demand. Iron and steel are coated in zinc to prevent rust. Galvanised steel is one of the strongest construction materials there is. It’s used to make the frames of large buildings, bridges, beams, piping, roofs, staircases – you name it.

Batteries: the world’s first battery – invented by Alessandro Volta in 1799 – used zinc as an anode. Zinc is still used in all kinds of batteries, from cheap to expensive: zinc-air (such as in hearing aids); silver-zinc (used in the aerospace industry); zinc-bromine (for energy storage); and plain old alkaline batteries – such as the AAs I have in my computer’s mouse.

Solder: zinc, lead and tin alloy is used to join electrical components and pipes.

Nickel-silver: this is actually zinc, copper and nickel, and is used in keys, zips, silverware and musical instruments (brass requires zinc).

Almost half of annual zinc demand comes from China, which is still building buildings and bridges, despite its economic slowdown. And if Donald Trump’s proposed infrastructure splurge comes to fruition, you can expect US zinc demand to grow considerably in the coming years. Zinc is a beneficiary of government infrastructure spending.

How to buy zinc:

The simplest way to invest in zinc is to buy one of the zinc exchange-traded funds (ETF Securities offers a London-listed one under the convenient ticker ZINC) or to buy it via a spread bet. All the usual risk warnings apply (particularly to the spread betting).

Alternatively, you can go down the individual company route. BHP Billiton (LSE: BLT) is the world’s largest producer – although, of course, it produces many other commodities as well, so it is not a pure zinc play. I like BHP and, like zinc, it is in a strong uptrend. At 1,326p it has more than doubled from its lows of below 600p at the start of the year.

A purer play might be Griffin Mining (LSE: GFM), which owns just under 90% of an operating zinc-gold mine about 300 miles north-west of Beijing. However, while I’m mentioning the company, that does not constitute a recommendation – if you’re keen on the theme, then it’s one to do your own further research on. Otherwise I’d stick with one of the bigger players.

According to a report on Bloomberg, the Bloomberg Commodity Index posted its biggest three-day advance since June, with Goldman Sachs saying investors should bet on higher prices in the next year as manufacturing picks up around the world.

“Faster growth should bolster demand for commodities, and help pave the way for higher corporate profits.”

“You’re seeing some strength across the board. That’s a healthy sign and indicates to me that we’re in a bull market.”

[the_equaliser] 17/11/2016 07:56

Broker Forecast - Deutsche Bank issues a broker note on BHP Billiton PLC
BFN
Deutsche Bank today reaffirms its hold investment rating on BHP Billiton PLC (LON:BLT) and raised its price target to 1350p (from 1260p).

Broker Forecast - Macquarie issues a broker note on BHP Billiton PLC
BFN
Macquarie today reaffirms its outperform investment rating on BHP Billiton PLC (LON:BLT) and raised its price target to 1530p (from 1470p).

[the_equaliser] 16/11/2016 00:06

BHP to continue mining throug christmas

[au24] 14/11/2016 11:09

Trump and brexit shares for the ride upwards of the new spending era.

[arja] 11/11/2016 16:28

smart move . Unexpected fall today .

[au24] 10/11/2016 15:42

Took profits AM
Back later.

[the_equaliser] 10/11/2016 11:45

Strength going to 14:00 then breaking nicely with positive news from commodities and government spend

[au24] 10/11/2016 10:54

+50p already

Rather a trend here of late + + +

[the_equaliser] 10/11/2016 10:02

From USa / UK

Infrastructure investment what the governments have said

[au24] 10/11/2016 09:17

Another great start to the day. AAL off the block equally fast.

[the_equaliser] 09/11/2016 18:19

Dow up 200
What will BLT go to
No idea
Whats the potential is a give away the high of BLT

Watch the markets and sentiments
Simple

[au24] 09/11/2016 17:07

Great close.
The trend is your friend here,to £?

[the_equaliser] 09/11/2016 14:57

Did the market get trump wrong +50 point from - 381

[the_equaliser] 09/11/2016 14:04

Dow futures recovering from -381 208

[the_equaliser] 09/11/2016 11:08

Sit back and ride the wave

[loganair] 09/11/2016 10:47

Naturally Trump is n oil and resources man.

[au24] 09/11/2016 09:48

Regained £13 again.

[au24] 08/11/2016 20:47

£20 :¬)

[the_equaliser] 08/11/2016 19:43

Just remember where it was and where we can get to
:)

[au24] 08/11/2016 15:24

Commodities are go. Great day again for share price

[the_equaliser] 07/11/2016 13:59

Dow futures 230+