Bhp Share Discussion Threads

[waldron] 08/7/2022 16:23

To do with incorporation

[action] 08/7/2022 15:49

No stamp duty on BHP? anyone know why?

[loganair] 02/7/2022 14:03

Biggest “green metal” producers:

Besides Codelco, the largest producers of copper are Freeport, BHP and Glencore. BHP and Glencore have an advantage over the Chilean and American miners as they’re well diversified. Copper is only part of BHP’s portfolio, alongside iron ore, nickel and coal. Glencore also produces copper and coal, but its mines also draw zinc, lead, cobalt, nickel, gold and silver. According to Rystad Energy, global nickel demand is expected to outstrip supply by 2024 as it is a key component in both steel production and batteries for electric vehicles. Battery demand also accounts for around two-thirds of global demand for cobalt.

In some respects then, Glencore and BHP are some of the best ways to invest in the green energy boom. Not only do they provide exposure to the metal itself but also other key components of the battery supply chain. Still, there are some drawbacks to investing in these businesses. As well as producing commodities, Glencore trades commodities around the world through its marketing arm. This business can be highly profitable and it’s also pretty difficult to get into, which gives the group a competitive advantage. No other company in the world has as much insight into global commodity markets as the trading giant.

This year the trading house has been capitalising on what it is calling “pricing differentials” in disrupted energy markets. As a result of these “differentials” the company expects half-year adjusted earnings before interest and tax (EBIT) of $3.2bn for its marketing and trading arm this year. That’s at the top end of management’s long-term EBIT guidance band.

However, Glencore does not provide granular information on how this side of the business operates. In fact, it’s a bit of a black box. Trading commodities requires access to huge amounts of short-term capital to fund purchases. This money is paid back when the commodity is delivered to a client, and to make sure it doesn’t lose out on the deal, Glencore also relies on derivative contracts to guarantee a fixed price on delivery. On a day-to-day basis the corporation may have tens of billions of dollars of short-term loans outstanding with billions more in derivative contracts. So in some regards Glencore is an investment bank as well as a mining group.

BHP does not have the same financial exposure. Unlike Glencore its primary business model is and has always been producing commodities. Over the past five years, BHP has undergone a significant transformation. It has cut costs and dramatically improved efficiency, putting it in the perfect place to capitalise on the current commodity price boom. Last year the group generated operating cash flow of $11.5bn and free cash flow of $8.5bn. BHP is a lot easier to understand than Glencore primarily because it does not have a trading business. Strong cash flows have allowed the group to reduce net debt to $6.1bn (from $11.8bn in 2020) and distribute record amounts of cash to investors. Over the 18 months to the end of December, BHP returned $22bn (£18.3bn) to shareholders. To put that into perspective, there are only 26 companies in the FTSE 100 with a market capitalisation greater than £18.3bn.

[zorija] 22/6/2022 08:43

I am assuming the info. is in that latest RNS.

[eggbaconandbubble] 22/6/2022 07:24

What message/post number?

[gateside] 21/6/2022 23:05

It's explained on the Anglo Pacific bb this afternoon - which spiked up 10% on the news

[eggbaconandbubble] 21/6/2022 22:17

And how is increasing tax on coal production going to make the share price rise????

[gateside] 21/6/2022 21:39

I expect this will be the reason for the rise this afternoon.hTTps://www.abc.net.au/news/2022-06-21/coal-royalty-increase-in-queensland-state-budget-mining-industry/101169756

[eggbaconandbubble] 21/6/2022 21:04

What caused that blip-up this afternoon???

[misca2] 20/6/2022 10:06

Mining Firms' Cautious Spending Threatens Shift to Green Energy


Rio Tinto, BHP and other big miners are giving priority to investor payouts instead of funding for new projects.





(END) Dow Jones Newswires

June 20, 2022 03:15 ET (07:15 GMT)

[saltraider] 07/6/2022 19:36

Smart move ... possibly??? ... but there's also a fair chance WDS will take off like a rocket from here.

I'm going to be quite careful and watch my every move ... but I think the smart money will be piling into WDS, not selling out.

Each to their own ... DYOR.

[zeppo] 07/6/2022 19:30

Traded am yesterday. Added BHP shares with the proceeds from the WDS.

Bigger divi according to Ian Cowie in Sunday Times 5th June.

No problem for my broker even though WDS were awaited.

[10576190] 07/6/2022 18:00

IWeb showed the shares yesterday and I was able to trade them first thing this morning.

[sutherlh] 07/6/2022 17:27

Anyone with Barclays received their WDS shares? Thanks for responses H

[saltraider] 07/6/2022 17:24

I have Woodside shares fully credited to my account (DEGIRO) but they do not have an share price attached and I can't trade them yet. DEGIRO is indicating that the first price will be 'end of day' value today. I'm assuming they will be priced tomorrow, if not later today.

I guess DEGIRO is just being cautious and allowing the price to settle after an initial day's trading without exposing retail investors to the initial pricing risk.

I'd rather have been able to trade the shares right from the off. But I'm not complaining any too much.

[loganair] 07/6/2022 17:17

Woodside (WDS) is already showing up with my broker.

[sutherlh] 07/6/2022 17:03

Still no Woodside shares in my Barclays ISA. Any one else the same? H

[ariane] 07/6/2022 16:48

Jefferies gives bullish forecast for mining but warns the sector is not without risks

The broker says "buy the miners to ride out the storm" and maximise leverage from a recovery
Anglo American PLC - Jefferies gives bullish forecast for mining but warns the sector is not without risks

The mining sector is “undervalued” and “poised to outperform” as China recovers from its recent state of lockdown, broker Jefferies said in an analyst note today.

The investment bank has raised price forecasts for iron ore and coal and upgraded a swathe of mining companies from Hold to Buy.

Anglo American PLC (LSE:AAL), Rio Tinto PLC (LSE:RIO), BHP Group Limited (LSE:BHP) all got a bump-up.

Jefferies raised the target price on Anglo American to 4,500p, up from 3,850p.

BHP Group’s target price was also increased to 3,100p, up from 2,500p.

The price target for Glencore PLC (LSE:GLEN), which remains a Buy, was also raised, as was Rio Tinto.

Although recent demand from China has been weak due to the impact of its latest Covid-19 outbreak, the country is now relaxing lockdowns and rolling out monetary stimulus.

Jefferies anticipates that “mining shares will likely be volatile” as China comes out of hibernation, but that the environment should shift to a place of synchronised “recovery in global demand”.

While iron ore shipments fell in the first quarter of 2022, with little organic growth, an uptick in Chinese demand could lead to a further lift in prices, Jefferies said.

Copper mining production also dropped in the first quarter and total volumes are expected to be low for the rest of the year.

Its coal price forecast is based on a "lack of supply growth" as many companies are winding down coal activities.

Commodity prices, it expects, will be “rising to new highs”, although the pace of recovery could take a decade to be realised.

Jefferies said that supply constraints continue to hamper the mining industry and that capital expenditure in the industry has been at recessionary levels for the past six years.

However, the broker said it expects mining to “outperform as the US and Euro economies slow” amid high inflation and rising interest rates.

“Macro risks are still clearly elevated as an economic hurricane could be coming, but we would buy the miners to ride out the storm and maximize leverage to the subsequent recovery,” Jefferies said in the note.

[loganair] 02/6/2022 07:38

I understand that Woodside expect to start trading on 6th June.

There will be no price until the shares start trading and therefore there'll be no price quoted until the 6th June.

[garycook] 02/6/2022 02:57

egg,Taken from the WDS website.Woodside shares are traded on the Main Market for listed securities of the London Stock Exchange (with trades settled in the form of UK Depository Interests) under the symbol “WDS”. Woodside has appointed Computershare Investor Services PLC as its registrar. If you have a query regarding your shareholding, please contact Computershare in the United Kingdom:I have started a new thread for WDS

[eggbaconandbubble] 01/6/2022 18:32

OK. So my nominees account is now showing a holding of Woodside ticker - BPXZF78
but no although I have a value of £15.59 each there is no quoted price.

Will these be trading on the LSE?

[saltraider] 01/6/2022 12:01

@egg ... to be fair, the world may just about 'rapidly decarbonise' but it isn't going to decarbonise nearly rapidly enough to do without oil and gas (not to mention coal) in major quantities over the next two decades at least.

So Woodside will indeed be supplying (essential) energy in a rapidly decarbonising world. It's true enough, although it might have been better not to put things quite the way that Mike Henry did. :-)

[eggbaconandbubble] 01/6/2022 11:24

?????? I must be missing the point here. The merged company is going to supply oil and gas to a "rapidly decarbonising world".

Can some put me right on this, please!