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I got a bit over active with BHP the last couple of days ......

Yesterday STO 48/46 Bull Credit Spread August.
PM = +0.315. Delta = 0.107. BE = 47.70.

Today STO 47/44 Bull Credit Spread Sept.
PM = +0.72. Delta = 0.152. BE = 46.29.

XD date on 1/2/3 September, I think. If dividend is $2-$3 the drop that may/will occur should still keep me safe on these 48 & 47 strike prices if BHP rises another $1-$2 in the next couple of weeks and traders/investors get all keen on the IO price and the results.

Gunnerguy.
(Still learning about options, scared, cautious, but thinks one could make some income from this stuff).
 
BHP's 5-year trend was interrupted by covid last year.
Otherwise its world class diversified resource base saw it quickly bounce back.
I expect BHP will be a major beneficiary of post covid infrastructure investment, so until there is a drop in iron ore prices its share price is likely to hold above $46.
Zmhy8VIx.png
 
In a statement overnight Wednesday, Tesla and BHP revealed a relationship built around nickel.

As a result, BHP will supply Tesla with nickel from its Nickel West assets in Western Australia in a collaboration which will aim to make the battery supply chain more sustainable.

The two companies will focus on establishing a supply chain that features end-to-end raw material traceability using blockchain – and there will not be any role for China.

The two will develop a technical exchange for battery raw materials production and promote the importance of sustainability in the resources sector, including identifying partners which are most aligned with their principles and battery value chains.

BHP will also work with Tesla on energy storage solutions to identify opportunities to lower carbon emissions in their respective operations through increased use of renewable energy paired with battery storage.

BHP chief commercial officer Vandita Pant said in the statement demand for nickel in batteries is estimated to grow by more than 500% over the next decade, in large part to support the world’s rising demand for electric vehicles.

Last month, Tesla chair Robyn Denholm revealed the company planned to spend more than $1 billion on Australia’s minerals supply to cater for growing electric vehicle (EV) demand.
Click to expand...
 
i hope BHP know what they are doing

just because Tesla is big doesn't mean it is efficient and reliable

( i hold BHP )

i also hold MCR which is liable to ship it's nickel , to Nickel West for processing

one might wonder whether this is the way BHP offloads Nickel West ( many thought Nickel West would have been divested before the S32 spin-off )
 
Why would BHP sell Nickel West?

It is true five years ago, they tried and couldn't find a buyer. Nickel was old fashioned, a steel additive and not much else, it was a high cost, high priced commodity with few growth prospects – a bit like copper in fact. But after deciding to keep it, spend money tarting and polishing the business (in the enduring hope of finding a buyer) BHP moved forward.

Suddenly as climate change moved [the dial] – as well as a significant change among senior BHP directors and leadership – nickel and copper moved to become part of the company’s ‘green’ appeal.

The (possibly sad) reality is that investment decisions are increasingly being made on perceptions, of green credentials and sustainability. There seems to be a complete disconnect between decarbonising, going green and the necessity of extracting resources to do so. Hence selling off thermal coal and divesting US shale gas, or the Blackrocks and Norwegian Sovereign Wealth funds of the world will pressure the board. Better these continue to hold than a Chinalco get a stake IMO.
 
from memory it was classed as an 'orphan' back in the days of Kloppers and there were considerations on whether to let it be sold or spun-off as a seperate entity .. ala OST/ARI and BSL ( and S32 )

BHP has a bit of history of internal restructuring , something about the tendency to get over-sized and super-complex

am not sure i like the way BHP is going , it is pandering to large fund managers rather than filling the needs of the customers

and remember those fund managers are using other folks money as the cudgel ,

and if Norges was so righteous it would resist renting out holdings for short-selling and derivative trading .

to claim the moral high ground one should have morals
 
divs4ever said:
i hope BHP know what they are doing

just because Tesla is big doesn't mean it is efficient and reliable

( i hold BHP )

i also hold MCR which is liable to ship it's nickel , to Nickel West for processing

one might wonder whether this is the way BHP offloads Nickel West ( many thought Nickel West would have been divested before the S32 spin-off )
Click to expand...

I own both Tesla and BHP, but a few months back when Tesla held their Battery day event, Elon spent a couple of minutes going into detail about the nickel mining and refining process, I think he had been learning a lot about it.

It turns out that the Type of nickel which almost all mines output is not ideal for making batteries, but the refineries have continued making that type of nickel chemistry mainly because of legacy and that just how it’s always been done.

So the process was very inefficient because the nickel had to be

1, mined
2, refined into an un-usable product
3, shipped to China for conversion into a usable product
4, shipped to Japan for processing
5, shipped to the battery factory.

At the battery day event Elon mentioned he was in discussions with nickel miners to refine the nickel straight into the type required for the battery, rather than the old legacy product, which would actual save the miner money, and save Tesla the step of sending the nickel to China for secondary processing.

I think this is the deal they have done with BHP.
 
Last edited:
Spot on VC, BHP has been building a new refining plant at its Kwinana refinery, the refinery was built in the 1960's, when Kambalda first opened, the new extension to produce battery grade 99.8% purity nickel has just been completed.
https://www.bhp.com/our-businesses/minerals-australia/nickel-west/

www.australianmining.com.au

BHP nears completion of Nickel West plant

BHP has confirmed that it will open its Nickel West sulphate plant in Western Australia this financial year after the development was delayed.
www.australianmining.com.au www.australianmining.com.au
 
sptrawler said:
Spot on VC, BHP has been building a new refining plant at its Kwinana refinery, the refinery was built in the 1960's, when Kambalda first opened, the new extension to produce battery grade 99.8% purity nickel has just been completed.
https://www.bhp.com/our-businesses/minerals-australia/nickel-west/

www.australianmining.com.au

BHP nears completion of Nickel West plant

BHP has confirmed that it will open its Nickel West sulphate plant in Western Australia this financial year after the development was delayed.
www.australianmining.com.au www.australianmining.com.au
Click to expand...
If anyone is interested here is the video from the battery day event.

At the 1hr 9 min mark they begin talking about nickel.

At the 1hr 12min mark Elon discusses the old process vs the new process.

 
Value Collector said:
I own both Tesla and BHP, but a few months back when Tesla held their Battery day event, Elon spent a couple of minutes going into detail about the nickel mining and refining process, I think he had been learning a lot about it.

It turns out that the Type of nickel which almost all mines output is not ideal for making batteries, but the refineries have continued making that type of nickel chemistry mainly because of legacy and that just how it’s always been done.

So the process was very inefficient because the nickel had to be

1, mined
2, refined into an in usable product
3, shipped to China for conversion into a usable product
4, shipped to Japan for processing
5, shipped to the battery factory.

At the battery day event Elon mentioned he was in discussions with nickel miners to refine the nickel straight into the type required for the battery, rather than the old legacy product, which would actual save the miner money, and save Tesla the step of sending the nickel to China for secondary processing.

I think this is the deal they have done with BHP.
Click to expand...
Just adding that its sulphide nickel which is preferred for use in batteries as it cuts out a refining step.
It's what they mine at Mt Keith, Cliffs and Leinster.
85% of BHP’s nickel is now sold to global battery material suppliers.
BHP's nickel sulphate plant is nearing completion (as per @sptrawler's post above as I was too slow) and in the final stages of commissioning at the Kwinana Nickel Refinery to produce nickel sulphate for lithium-ion batteries.
I guess it was a no brainer for Musk to join forces and shore up his supply chain.
 
Imagine where the BHP shareprice would be if it didn't have that bad attack of Billitonitis last resources boom


Now $53.50 . ... roll on dividend season
 
For those expert on ASF, do you have an idea of the possible size of dividend BHP are likely to announce next month ?
Yes, I know if your the CEO of BHP and reading this on ASF, you can't tell me, I understand, but to those not on the Board of BHP, are there any 'educated' guesses ?

Gunnerguy.
 
well i am absolutely no expert , given the Brazil lawsuit twist ( see above ) i would not expect a larger dividend ( in $US ) than last time $1.31 Australian ,
i see one analyst predicts $4+ for the year

but i suspect BHP will be cautious regarding lawsuits and also be pondering accelerating projects already under development ( say copper in South America and the recent oil project in the Gulf of Mexico while the potash arm seems to have no recent glory

since the divestment of S32 i am guessing BHP will only go after 'world-class projects ' so good luck picking what will be the next acquisition and when , but suspect BHP will keep a few pennies in the war-chest just in case something really special comes up

BHP seems to be tilting away from coal .. but what about oil gas and uranium

i hold BHP but would be surprised if they splurged on share-holders and left the war-chest nearly empty

DYOR
 
Bhp $44 in 2008,might reach $54 in 2021 after 2 resource booms.
When you work for them, a yes minister style of higher mgt.
And now a champion of lgbt and climate change, what is next? Meme?crypto..actually they mention blockchain in the article...
Digital mines virtual ore next?
Good luck..such a waste of $ and australian assets on an amazing scale along the last decades
 
How much reaction this news will bring into BHP stock in immediate to long term pain ?

London judges backtrack to revive $9.43-billion Brazil dam lawsuit against mining giant BHP
www.abc.net.au

British court reopens $9.4 billion lawsuit against BHP over deadly dam collapse in Brazil

The collapse in 2015 of the Fundao dam, owned by a joint venture between BHP and Brazilian mining giant Vale, killed 19 people and obliterated villages as a torrent of more than 40 million cubic metres of mining waste swept through.
www.abc.net.au www.abc.net.au
 
Miner said:
How much reaction this news will bring into BHP stock in immediate to long term pain ?

London judges backtrack to revive $9.43-billion Brazil dam lawsuit against mining giant BHP
www.abc.net.au

British court reopens $9.4 billion lawsuit against BHP over deadly dam collapse in Brazil

The collapse in 2015 of the Fundao dam, owned by a joint venture between BHP and Brazilian mining giant Vale, killed 19 people and obliterated villages as a torrent of more than 40 million cubic metres of mining waste swept through.
www.abc.net.au www.abc.net.au
Click to expand...
au.finance.yahoo.com

Tesla (TSLA) Locks Future Nickel Supply on Deal With BHP

Tesla's (TSLA) deal with BHP marks the automaker's latest effort to shield itself from future supply crunch of metals needed in battery production.
au.finance.yahoo.com au.finance.yahoo.com
Hopefully effect of Tesla announcement earlier would be compensating the ripple from the resurface elongated court case commencing in 2022
 
Recommended all-cash offer for Noront Resources Limited

Today, BHP Lonsdale Investments Pty Ltd (BHP Lonsdale), a wholly-owned
subsidiary of BHP Group Limited, announced that BHP Western Mining Resources
International Pty Ltd (BHP WMR), a wholly-owned subsidiary of BHP Lonsdale, has
made a recommended all-cash offer to acquire all of the issued and outstanding
common shares of Noront Resources Limited (Noront) for C$0.55 per share in cash.
BHP Lonsdale, BHP WMR and Noront have entered into a definitive support
agreement, whereby Noront has agreed to, among other things, support the
takeover-bid by BHP WMR.
Noront is a Canadian based mining company, listed on the TSX Venture Exchange. It
is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum
and palladium deposit and chromite deposits including Blackbird, Black Thor, and Big
Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging
metals district known as the Ring of Fire.
Further information on the offer is in the attached document.
Further information on BHP can be found at: bhp.com

courtesy of Bell Direct
==================================================================

DYOR

i hold BHP

i missed this ann. this morning

doesn't look like such a deal deal ( in the BHP universe )

but will look closer later
 
qldfrog said:
Bhp $44 in 2008,might reach $54 in 2021 after 2 resource booms.
When you work for them, a yes minister style of higher mgt.
And now a champion of lgbt and climate change, what is next? Meme?crypto..actually they mention blockchain in the article...
Digital mines virtual ore next?
Good luck..such a waste of $ and australian assets on an amazing scale along the last decades
Click to expand...

yes indeed a danger in investing 'activist share-holders ' ( that are in fact quite often fund managers NOT direct share-holders )
 
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