Tag: BHP

It’s going to be a big week for BHP Billiton (BHP), one that will change the shape of the company for years to come.

August 19 is the next big date for BHP Billiton (BHP) and its tens of thousands of shareholders, large and small.

BHP Billiton (BHP) reported record figures for four commodities, including iron ore and coal, two of its staple products, and 12 of its global mining empire, according to the June quarter and financial year operations report released this morning.

Once again media and some investment analysts got the results of leading iron ore groups wrong because their estimates were too optimistic, or they have forgotten the way to compare quarterly results.

BHP Billiton (BHP) has all but confirmed it is looking at slimming down and spinning off weak or non-essential assets in alumina, aluminium, manganese, thermal coal, bauxite and nickel with a value of up to $A20 billion.

BHP Billiton (BHP) has made it clear that its iron ore business will withstand the current weakness in global prices.

The intensive cost cutting of the past year to 18 months, and the strong surge in iron ore prices and production in the back half of 2013, have paid off for BHP Billiton (BHP) and its hundreds of thousands of shareholders who will receive a higher interim dividend.

So with investors here and offshore in a sour mood about China, commodities and emerging markets, it’s no wonder that the continuing weakness in iron ore prices made for a difficult day for BHP Billiton (BHP)  yesterday after it reported its December quarter and half year production figures.

BHP Billiton (BHP) remains a believer in its huge but weakly performing US shale gas and oil business and intends keeping the assets and growing them for the domestic American market, not for exports such as LNG.

BHP Billiton (BHP) is still a strong believer in the China growth story (they have to be because they have so much at stake) judging by the message from this year’s shareholder meetings in London and Australia, and by comments from CEO Andrew Mackenzie who seems to be straight out of the optimist mould carved by his predecessor Marius Kloppers.

BHP Billiton (BHP) has added weight to the story that the iron ore sector has been underestimated by many investors, revealing a sharp jump in third quarter production and sales as well as a small increase in its financial year guidance.

After months of being the easy target for short sellers, hedge fund traders and market know-alls, especially when there’s weak economic news from China, Australia’s big three iron ore miners – BHP Billiton, Rio Tinto and Fortescue Metals Group – are back in the limelight and enjoyed nice rises yesterday.

Here’s a heads up for the new financial year.

Forget the federal budget – much the changes won’t see the light of easy, if at all until after the September 14 election, except the increase in the Medicare levy.

Now, people are fretting about iron ore exports after BHP Billiton said demand for the steelmaking raw material had "flattened".

No buyback, but BHP Billiton remembered shareholders and lifted dividend 20% after a 5.5% dip in first half profits.

Like its rivals, Rio Tinto and Fortescue, BHP Billiton is gung-ho about 2012, despite many commentators being just as gloomy about the outlook for iron ore, Chinese steel and coal.

We had two very different outlooks from companies at opposite ends of the current corporate ladder in Australia.

Like rival Rio Tino, BHP Billiton has reported a cracker of a quarter for its iron ore business in the three months to September.

And still in South Australian copper mining, BHP Billiton has moved a step closer to making a yes or no decision on the huge Olympic Dam project.

No matter which way you look at it, 2010-11 was a record year for BHP Billiton, just as it was last year.

Besides the expansion of its Chilean and Peruvian copper resources, BHP also achieved production records in four commodities with production of iron ore posting its 11th consecutive record.

Buried yesterday’s BHP Billiton exploration and development report for the 4th quarter and for all of the 2011 financial year was another major story for the world’s biggest mining company.

BHP Billiton is facing production and sales problems at its highly profitable Bowen Basin coking coal mines for much longer than previously thought.

BHP Billiton and its partners in iron ore and coal have committed to spending $US13 billion in total on a string of major expansion projects.

BHP Billiton has joined the great American unconventional gas rush, after basically missing the boat in Australia in so far as coal seam methane and other new gas sources are concerned.

BHP Billiton shares fell yesterday because some shareholders were unhappy at the news of the sharply higher interim profit, higher dividend and a new, higher share buyback. 

So what’s BHP Billiton’s outlook on the world economy and commodity markets.

While BHP Billiton says it achieved record iron ore production and shipments in the first half of the financial year, the impact of the wet weather and floods in central Queensland will continue to batter its coal business for the rest of the 2011 financial year.

Muted approval from investors yesterday afternoon for the strong arguments from BHP Billiton in favour of maintaining its current strategy for mergers and acquisitions, even if it has thrown up three failures.

It was an obvious call, but BHP Billiton has withdrawn its $US45 billion bid for Canadian fertiliser company Potash Corporation of Saskatchewan, and restarted its long suspended share buyback, in effect going to option C for a corporate strategy.

Can BHP Billiton CEO Marius Kloppers survive a third failed expansion deal?

Like its iron ore rival and former prospective joint venturer, Rio Tinto, BHP Billiton had solid September quarter in the Pilbara, with production and sales hitting capacity.

While BHP boosted earnings and dividend significantly in the year to June, analysts and investors have to heed the caution expressed in the company’s outlook.

So is the BHP Billiton thrust for control of Potash Corporation of Canada a good thing?

BHP Billiton has made its much rumoured move to grow its fledgling fertiliser business by launching a direct assault at the world’s biggest company in the industry Potash Corp of Canada, which immediately rejected the $US39 billion (A42.3 billion) offer.

BHP Billiton may be ‘cautious’ about the outlook for global growth and demand for its many commodities, but it is at least realistic on China.