A dig into the mining giant’s numbers tells quite a story about the significant changes it has made to how it is spending the vast volumes of cash it is generating.
Lower prices are crushing Australia’s $5 billion nickel sector with BHP to close an ore processing plant after major customer Wyloo Metals announced mine shuts.
The miner may write down the value of its WA nickel business after the price of the steel-making ingredient plunged by almost a quarter over the past 12 months.
Mining giant BHP says the same job,same pay policy could jeopardise investment and damage Australia’s economy.
Matt Comyn acknowledged the mounting pressure on households,saying “the cost of everything,including banking,is going to be on people’s minds this year”.
Last year’s profit and dividend bonanza was always going to be a hard act to follow. But BHP is well positioned to take advantage of the structural changes to miners’ costs that occurred during the pandemic years.
Mining giant BHP has revealed plans to sell off two more of its Australian coal mines as it posted a sharp fall in half-year profit and cut its dividend.
BHP chief executive Mike Henry says the current approach to wages in the industry has been working well.
BHP generated record profits,cash flows and dividends but it is the absence of any meaningful debt that gives it flexibility in a volatile economic environment.
Russia’s invasion of Ukraine and the sanctions that it has attracted from the West are disrupting commodities markets. They are also creating opportunities.
If,as expected,Woodside swallows BHP’s petroleum division the miner’s shareholders will soon have oil and gas scrip in their portfolio. They need to start thinking if it should stay there.