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BHP - BHP Group

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kennas said:
Hooly dooly!!!!!!!! :eek:

Will the government allow this?

Bad news for the juniors maybe. Or, maybe not. :confused:

Press release

Rio Tinto and BHP Billiton announce West Australian Iron Ore Production Joint Venture
5 June 2009

Rio Tinto and BHP Billiton today signed a non-binding agreement to establish a production joint venture covering the entirety of both companies’ Western Australian iron ore assets. The joint venture will encompass all current and future Western Australian iron ore assets and liabilities and will be owned 50:50 by BHP Billiton and Rio Tinto.

The joint venture is expected to unlock significant value from the companies’ overlapping, world-class resources. Both companies believe the net present value of these unique production and development synergies will be in excess of US$10 billion (100 per cent basis). These substantial synergies are anticipated to come from:

• Combining adjacent mines into single operations;
• Reducing costs through shorter rail hauls and more efficient allocations of port capacity;
• Blending opportunities which will maximise product recovery and provide further operating efficiencies;
• Optimising future growth opportunities through the development of consolidated, larger and more capital efficient expansion projects;
• Combining the management, procurement and general overhead activities into a single entity.
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Personally thinks this a GREAT step for Australia ....... keep it ozzie owned , keep control of OUR resources

the goverment would be silly NOT to let it go through and totally unpatriotic

ozzie ozzie ozzie

go BHP for holders!
 
Was there any mention of the marketing and sales function? The Chinese won't like it.

It is proving good for the juniors. Every iron ore share is spiking up.
 
no ones going to stop this one
its too big, too much dosh. too many involved. bit like trying to stop an ore train.
must be good for the economy. so many synergies too.
 
I wish this announced before market opening and not at 10:16

It screwed up my shorts that I opened at about 10:10am (at this time it shot up)

I get the feeling it was leaked out to a few select people first.
 
Shame RIO is in trading halt now. Would be good to see this one rocket as well .. Any one care to take a guess as to what price range RIO will open on Tuesday ?
 
waz said:
I wish this announced before market opening and not at 10:16

It screwed up my shorts that I opened at about 10:10am (at this time it shot up)

I get the feeling it was leaked out to a few select people first.
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Ouch, that would have hurt, RIO was already in a trading halt and there has been speculation lately that BHP would get involved.

Hope it didn't do to much damage.
 
its probably good for the juniors in regaurds to the lines also. they can all get interconnected and cover much more area and be easier to manage logistically. plus with one massive company laying track, it must go down faster.
 
Maybe for the juniors it means the Chindianese are going to start gobbling them up even faster to secure resources. Looks like what the market expects. There's some multi million/billion ton resources out there sitting solo. They must now be on the radar, now more than ever.
 
after such a kick in the guts, might take them a while to get pragmatic again.
on virtually the anniversary of tianamin square too. be interesting how the iron ore talks r going....
either way, its grt for bhp and australia.
what a loss/dropped ball for chinalco(id say they got greedy) and shows how bhp played this all very well and got the prize in the end.
 
shag said:
after such a kick in the guts, might take them a while to get pragmatic again.
on virtually the anniversary of tianamin square too. be interesting how the iron ore talks r going....
either way, its grt for bhp and australia.
what a loss/dropped ball for chinalco(id say they got greedy) and shows how bhp played this all very well and got the prize in the end.
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too right, great result for australia.

really bothered me that we were selling our backyard so damn cheap
 
Can we please see some real fundamental analysis here? I'd really be interested in hearing the views of others.

My 5 cents: BHP is now trading on high p/e's (high teens). Given that its profitability will almost certainly decline next year, shouldn't there be a lot of downwards pressure on its share price?
 
BHP are in rapid expansion. More port facilities, improving rail infrastructure, they are planning on moving a hell of a lot more product.

Why do you believe profitability would be in decline?
 
SM Junkie said:
BHP are in rapid expansion. More port facilities, improving rail infrastructure, they are planning on moving a hell of a lot more product.

Why do you believe profitability would be in decline?
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Lower commodity prices. In Australian dollar prices are now lower than what they averaged over the financial year.

There is almost zero chance that their profit will be anything but lower - even the most optimistic forecasts anticipate a profit fall. Lets not even go into the pessimistic forecasts...
 
This is from Comsec. Admittedly forecasts need to be taken with a pillar of salt, but given that the financial year is nearly over, figures for year ending 06/09 should be reasonably accurate.

Sorry about the formatting

Year Ending 30-06-09 --------- Year Ending 30-06-10
EPS(c) PE Growth --------- EPS(c) PE Growth
Median 212.2 18.0 -25.6% 149.5 25.5 -29.5%
High 237.4 16.1 -16.8% 222.0 17.2 -6.5%
Low 151.2 25.3 -47.0% 130.5 29.3 -13.7%
#
Number of Analyst
Estimates 15 15
 
Can we please see some real fundamental analysis here? I'd really be interested in hearing the views of others.

My 5 cents: BHP is now trading on high p/e's (high teens). Given that its profitability will almost certainly decline next year, shouldn't there be a lot of downwards pressure on its share price?
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Some people buy the story not the balance sheet.

Yeah it will be lower but when everybody else in the sector is going to be lower, who do you buy?

Think beyond the balance sheet.
 
Nero64 said:
Some people buy the story not the balance sheet.

Yeah it will be lower but when everybody else in the sector is going to be lower, who do you buy?

Think beyond the balance sheet.
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Not exactly sure what all that means. Nearly all assets have a price that is good, fair and bad. My question is which one of those BHP fits into at its current price.

The whole idea that you can ignore the fundamental indices of a stock such as its p/e ratio is absurd. OK, justify it on "expectation of drastically higher profits in the future" if you can, but it does need some justification.
 
I read in the paper that the UK shares are trading at 20% below the Australian ones:confused:. Does anyone know an easy way to buy the UK shares?
 
gooner said:
I read in the paper that the UK shares are trading at 20% below the Australian ones:confused:. Does anyone know an easy way to buy the UK shares?
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CFDs, IB... Commsec i think charges you $130 brokerage for overseas stuff...

But BLT.L has been trading at discount to BHP.AX for AGESSSS now. Although its dual listed the shares are non-convertable. The difference exists due to some taxation issues and other regulatory stuff... and the fact pommies have worse weather : D
 
skyQuake said:
CFDs, IB... Commsec i think charges you $130 brokerage for overseas stuff...

But BLT.L has been trading at discount to BHP.AX for AGESSSS now. Although its dual listed the shares are non-convertable. The difference exists due to some taxation issues and other regulatory stuff... and the fact pommies have worse weather : D
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Skyquake

Thanks - had not thought about the tax issue. If I am up for UK tax as well as well as Aussie tax, I might just stick with the local shares

Paper said the discount had blown out recently
 
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