Agreed here. Plus China will come back to growth soon. This is a waiting game, however you can see the Chinese Government starting to react in the market place. Once the US Rate cut has been delivered, it will be good to see the Chinese Governments next move@qldfrog but Mr dissentiing frog, if your slightly cryptic comment refers to divested assets like its petroleum business to Woodside and a couple of coal mines to Whitehaven, they can use the proceeds to build or acquire other assets, e.g the attempt to acquire Anglo American or BHP's expansion plans for Olympic and Oak Dams:
"BHP is looking to more than double copper production out of South Australia over the next decade and will make a final investment decision on a major smelter upgrade at Olympic Dam within two and a half years, as it revealed a large increase in resources in the state.
The global miner has published a resource estimate for its Oak Dam deposit, 65km southeast of the Olympic Dam mine and smelter, where it has to date delineated 1.34 billion tonnes of copper and gold ore.
BHP is also progressing approvals with the state government for new shafts at both Oak Dam and Olympic Dam, so that it can drill out the deposits at greater depths.
The company has built a copper precinct in South Australia via the $6.4bn acquisition of OZ Minerals in May last year, which brought the Prominent Hill and Carrapateena copper and gold mines into the fold."
Or if your comment is about reserve depletion from mining, well they retained 46% of earnings FY24, some of which goes to exploration, conversion of resources to reserves or, again, acquisitions. So they're building/buying assets while also tearing them down. The thing is, is it profitable and will it continue profitably into the far future? Not so much in a global recession/depression I guess. At least technological creative destruction can't make their products obsolete like it might a "standard business".
Held
Holding
Looking at Iron Ore Prices they are trading relatively the same as in 2020, 2022 and 2023. The large spike in Iron Ore prices was only 2021. Under these prices was only from 2014 to 2018. BHP is a much large company now, its hard to see $18 AUD again. Once the Chinese Economy starts moving again, I would assume we would see the $50 AUD again.I will not be buying this current chart. There might be the double top target to manifest ($34) or some other dark eventuality. It's possible a rally could happen here first as it has reached a measured move but it strikes me that last week's very negative candle is a bad sign when the stock is yet to go ex dividend on 12 September.
Held
WEEKLY
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BHP is making more money now and will only increase when the world economy's and mainly China starts to normalise and grow again. I can understand that the Share Price may stay where it is until this happens, however I find it hard to see $18AUD again.BHP has posted an underlying net profit of $US13.7 billion for the 2024 financial year, beating estimates of $US13.5 billion.
Revenue increased 3 per cent on the prior year to $US55.7 billion, as a result of higher realised prices across iron ore and copper, where sales volumes also increased 3 per cent and 5 per cent respectively.
The miner declared a final dividend of US74¢ a share, a 53 per cent payout ratio
Really, it has been slashed and slashed,BHP is a much large company now
You are bearish on BHP.Really, it has been slashed and slashed,
How much extra ground do they own?
As per ,
@finicky post previously: does anyone genuinely believe that extending reserves compensate extracted ones..unless you add new grounds,?
These extended reserves were already in the ground 10y ago, or 100y ago..olympic dam etc
Bhp was underpriced at some stages in the past indeed but
Bhp real size is shrinking day after day, only inflation could help their sp, or for a change putting money in the right sector, and buying something else than the latest fad at top of price before selling ut back for a bargain 5 y later
It might one day get proper management
But your cash so up to you
Not 6 months, 2yYou are bearish on BHP.
If BHP is shrinking so rapidly how do they keep making more and more profit each year.
It will be good to watch BHP over the next 6 months to see what happens.
i bought as low as $14.80 in 2016 , and i think that still included S32 and definitely still had the petroleum arm and QLD coal mines included18 aud
Add inflation/ minerals $rises and my own target of $18 during the next slumpi bought as low as $14.80 in 2016 , and i think that still included S32 and definitely still had the petroleum arm and QLD coal mines included
so depending on what the news is you would have to consider $10 as a possible floor
remember in a market panic , shareholders DO throw the baby out with the bath water
BHP is nice and liquid ( and held widely in BIG funds ) it would be a prime choice for someone with a debt/leverage problem
but HOW are they making that profit .. Nickel West in moth-balls , the Petroleum arm gone , two massive coal mines ( and infrastructure ) gone and we aren't even talking over the last 5 yearsYou are bearish on BHP.
If BHP is shrinking so rapidly how do they keep making more and more profit each year.
It will be good to watch BHP over the next 6 months to see what happens.
copper and iron can slump pretty low , and the biggest buyer of uranium is China who we are liable to stumble into a war with ( nickel is already unprofitable for most )Add inflation/ minerals $rises and my own target of $18 during the next slump
Never said Never to the Low price. If Depression hits Globally..argh..$18 Will look expensive too. Only my opinion.Looking at Iron Ore Prices they are trading relatively the same as in 2020, 2022 and 2023. The large spike in Iron Ore prices was only 2021. Under these prices was only from 2014 to 2018. BHP is a much large company now, its hard to see $18 AUD again. Once the Chinese Economy starts moving again, I would assume we would see the $50 AUD again.
Below is from Trading Economics at https://tradingeconomics.com/commodity/iron-ore
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Flag me when it goes down past $20 and this clown will put the buy order"Don't you love farce?
My fault, I fear
I thought that you'd want what I want
Sorry, my dear!
But where are the clowns
Send in the clowns
Don't bother, they're here"
Regardless of what our opinions of China culture, rulings etc etc put the daily common whingeing aside,copper and iron can slump pretty low , and the biggest buyer of uranium is China who we are liable to stumble into a war with ( nickel is already unprofitable for most )
remember the clowns don't just reside on the BHP board now , we have all sorts of clowns running the ( national ) asylum
but a different group still believe they can crush ( regime change ) China with sanctions and tariffs , and whether delusional or not , that different group think they control the worldRegardless of what our opinions of China culture, rulings etc etc put the daily common whingeing aside,
We are talking about BUSINESS TRADE here, China is still one of the world top traders. We and the World still need China to do BUSINESS.
well OZ minerals had been making a profit recently ( without the help of BHP ) so am not sure what synergies they are expectingFrom the annual Report Page 38 onward:
So at WAIO they are planning to increase iron ore production. A study of feasibility to complete in CY2025
At Copper South Australia:
The regional operation is expected to double output.
"BHP is eyeing to lift its annual output from the region to 500,000 metric tons of cathode by early 2030s, from 322,000 tons produced last financial year. It expects to raise the output to up to 650,000 by the mid-2030s.BHP will make a final investment decision on the expansion in 2027, it added."
They are still exploring Oak Dam which will be developed.
Carrapateena, I knew nothing about, but it's big. They are moving into sub-level block caving that and think it will be a multi-generational low cost operation.
Prominent Hill: they only acquired it from Oz Minerals in 2023, so to have bothered with that it must be a long lived operation.
Olympic Dam: Somewhere I read that it has a 100 years of mine life. An interesting snippet, Olympic has 96m ozs of gold in its resource.
Jansen Potash in Canada. Another giant project that they've spent many billions on and are only halfway through development of a first stage. First production 2026.
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With such glowing figures, bet it all...From the annual Report Page 38 onward:
So at WAIO they are planning to increase iron ore production. A study of feasibility to complete in CY2025
At Copper South Australia:
The regional operation is expected to double output.
"BHP is eyeing to lift its annual output from the region to 500,000 metric tons of cathode by early 2030s, from 322,000 tons produced last financial year. It expects to raise the output to up to 650,000 by the mid-2030s.BHP will make a final investment decision on the expansion in 2027, it added."
They are still exploring Oak Dam which will be developed.
Carrapateena, I knew nothing about, but it's big. They are moving into sub-level block caving that and think it will be a multi-generational low cost operation.
Prominent Hill: they only acquired it from Oz Minerals in 2023, so to have bothered with that it must be a long lived operation.
Olympic Dam: Somewhere I read that it has a 100 years of mine life. An interesting snippet, Olympic has 96m ozs of gold in its resource.
Jansen Potash in Canada. Another giant project that they've spent many billions on and are only halfway through development of a first stage. First production 2026.
View attachment 183906
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Have a look at the map. Oz Mineral's properties and BHP's Olympic and Oak Dams are a localised regional operation. Conceivably one operation can have a shutdown with others taking up the slack? OZL I believe produced a concentrate wheras O.D has the full kit, right through to refining copper - could be advantages there. Olympic Dam smelting and refining is on an expansion path (1) Presumably personnel efficiencies from the amalgamation. Trucks, mining fleet, workshops - might be efficiencies there.so am not sure what synergies they are expecting
They won't be processing BHP ore. They'll be doing what they were doing pre takeover.i doubt the old OZ mineral plants will be efficient processing BHP ore
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