|Bid||43.34 x 0|
|Ask||39.36 x 0|
|Day's Range||39.06 - 39.56|
|52 Week Range||32.24 - 42.33|
|Beta (5Y Monthly)||0.99|
|PE Ratio (TTM)||24.61|
|Forward Dividend & Yield||1.92 (4.97%)|
|1y Target Est||N/A|
BHP Group said on Thursday it was considering its membership of four industry associations due to concerns about their climate and energy policies, although it was not yet ready to pull out as some shareholders have demanded. BHP has faced increasing pressure from investors worried that some mineral lobby groups, particularly in Australia, are promoting coal use in contravention of the goals of the Paris climate pact, and have urged BHP to stop funding them. "We believe that active participation in industry associations provides a leadership opportunity," BHP said in a report following a review of its association memberships.
(Bloomberg) -- The world’s biggest iron ore miners are looking for novel ways of satisfying their customers and protecting market share in the $150 billion global industry.From selling through a mobile app to portside sales, the likes of BHP Group, Rio Tinto Group and Vale SA are looking for an edge with buyers of the steelmaking raw material in China, the top customer. The need to retain their business is becoming ever more critical amid forecasts that the market is around its peak.“For miners, Chinese import volumes are basically not going to grow the way they used to,” said Tomas Gutierrez, analyst at Kallanish Commodities Ltd. “Any increase in value for iron ore will come from either adding service to mills or from cutting out the traders.”Rio and rivals -- who have spent more than a decade pumping billions into expansions to keep pace with China’s fast-rising appetite for iron ore -- are now preparing for an era of slower growth and an eventual high point in the nation’s steel output.They are introducing a range of initiatives to retain existing sales and add new customers -- from Rio’s development of a mobile app, to portside sales, and selling directly from China’s ports in yuan instead of shipping cargoes from Australia or Brazil that are sold in dollars.New Strategies“Our China portside customers will be able to order via a mobile app,” Rio’s Chief Commercial Officer Simon Trott told an investor seminar in October. “You can order a few tons of ore, in the same way you’d place an order on Amazon.”Rio has started portside sales, while BHP also has been testing “spot sales during transport to China as well as sales in smaller quantities with shorter lead times from bonded stockpiles in China,” Rod Dukino, vice president for sales and marketing iron ore, said at a conference in September.Selling at ports allows miners to blend different types of ore, and means “more money in the miners’ pockets,” according to UBS Group AG managing director and global head of mining, Glyn Lawcock. “We have seen over the last few years increasing sales to traders and now the miners are clawing back some of that lost margin essentially.”In particular, the use of the Chinese yuan is a breakthrough for an industry dominated by the dollar. For mills, this eliminates currency risks. For miners, this broadens their customer base and again cuts out the traders, said Lawcock.In June, Fortescue Metals Group Ltd. set up a sales office in China, offering direct supply of smaller volumes in the yuan. “This represents a new sales channel for Fortescue to complement our existing seaborne trade,” Chief Executive Elizabeth Gaines said in an email.BHP sees “huge potential in the digitization of our post-trade processes across our portfolio, both for customers and suppliers alike, through increased visibility and traceability of goods” Dukino said in an email.Large and medium-sized steel mills in China generally support the miners’ new sales strategies, according to a survey by Bloomberg of five executives at mills and industry groups.“As producers get closer to a diverse range of end customers, they understand their needs more, to facilitate an evolution in interaction and even digitalization,” according to Andrew Glass, founder of Avatar Commodities Pte and formerly head of iron ore financial trading at Anglo American Plc.Still, launching new sales channels also has its risks, and companies need to be mitigating them at the same time as extending their supply chain, Glass warned.Tight RaceThe initiatives follow similar strategies adopted by Vale since 2015. The Brazilian miner, which is still grappling with the effects of a fatal dam disaster earlier this year, blends and sells from 16 ports in China. It also has a center in Malaysia, where ore can be stored and blended.In the first for a foreign miner, Vale signed a deal with a Chinese steel mill based on prices of iron ore futures on the Dalian Commodity Exchange.While Vale has had a headstart in sales efforts, Rio is catching up, according to Kallanish’s Gutierrez. “Now that the port stock market is more developed, and the sales mechanisms are developed, then all the miners will need to compete in this area.”“The enhancement of having things like port stocks and port trade allows flexibility, and allows smaller parcel deliveries to customers,” Rio’s iron ore Chief Executive Officer Chris Salisbury said in a interview last week.\--With assistance from David Stringer, Winnie Zhu and Alfred Cang.To contact the reporter on this story: Krystal Chia in Singapore at firstname.lastname@example.orgTo contact the editor responsible for this story: Phoebe Sedgman at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The FTSE 100 climbed to its highest level since August on Wednesday, as Donald Trump ramped up hopes of a trade deal between the U.S. and China.
Incoming BHP Group Chief Executive Mike Henry said the world's biggest miner is prioritising new developments in technology to cut costs and improve safety, including collaborations with tech start-ups and researchers. Henry, who will the reins at BHP from Jan. 1, kept a prior commitment to speak at a mining technology conference in Perth on Wednesday, signaling that the area is likely to be a major focus of his tenure.
(Bloomberg) -- BHP Group increased its stake in Ecuadorian copper miner SolGold Plc, another sign that the biggest miners are increasing exposure to copper in the hope that the electrification of cities and cars will boost demand.SolGold shares surged the most since June after Bloomberg earlier reported the companies were in talks. Melbourne-based BHP paid 17.1 million pounds ($22 million) to raise its holding in the company to 14.7%, almost drawing level with top investor Newcrest Mining Ltd. Brisbane-based SolGold’s interests in Ecuador include the flagship Alpala copper-gold project, which the company estimates has a potential 55-year life and is among the world’s best undeveloped deposits. The company is also studying 13 other priority targets in the nation, according to a presentation this month.BHP paid 22.15 pence a share, a 9.3% premium to SolGold’s 20-day volume-weighted average, according to a statement on Monday. The deal also gives BHP options to purchase another 19.25 million shares by 2024. It had built its stake last year through two transactions and agreed it wouldn’t acquire further shares for two years without SolGold’s consent.SolGold shares earlier jumped as much as 20%, and were up 7.3% by 10:25 a.m. in London.In October, the shares fell to a three-year low amid growing concerns about SolGold’s funding as it burned through cash. Its cash position was just $16.5 million at the end of September and the company has since slowed spending to make that cash stretch until February, Liberum Capital Markets said.BHP, preparing to install Mike Henry as its new chief executive officer from January, is prioritizing future growth in copper and oil, and sees Ecuador as a key focus for new mining projects. Dwindling supply from aging copper mines and rising demand from renewable energy and the electric vehicle sector will combine to boost the metal’s outlook, the miner said in August.The company is also partnering with Luminex Resources Corp. on a project in southeastern Ecuador and carrying out its own work in the country.Exploration will be “the most cost effective way” of adding to the company’s growth pipeline, outgoing CEO Andrew Mackenzie said last month in a webcast. “We have positions in some very prospective parts of the world where we think we can add significantly to our resource base.”(Updates with company confirmation)\--With assistance from Harry Brumpton.To contact the reporters on this story: Thomas Biesheuvel in London at firstname.lastname@example.org;David Stringer in Melbourne at email@example.comTo contact the editors responsible for this story: Alexander Kwiatkowski at firstname.lastname@example.org, Nicholas Larkin, Lynn ThomassonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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The number of bosses leaving the FTSE 100 reached a record on Thursday after BHP (BHP) announced chief executive Andrew Mackenzie will leave after six years at the helm of the Anglo-Australian miner. A total of 20 bosses from the UK’s blue-chip index of top stocks have been replaced or announced their departures so far this year, according to research by AJ Bell. The same thing is happening across the Atlantic where 172 U.S. chief executives stepped down in October, the highest on record, according to recent research.
A Swiss environmental expert launched on Friday a six-week public consultation as he spearheads efforts to create new global standards next year following the Vale dam disaster in Brazil. The safety of dams used to store mining waste, known as tailings, gained prominence after the collapse of Vale's dam at Brumadinho, Brazil, in January that killed an estimated 300 people. The International Council on Mining and Metals (ICMM) said in March it was working on new standards with the U.N. Environment Programme (UNEP) and ethical investors' body the Principles for Responsible Investment (PRI).
(Bloomberg) -- BHP Group named Mike Henry, the head of its Australian operations, as chief executive officer to steer the world’s top miner through looming challenges from slower growth in China and investor pressure over climate change.Henry, 53, a Canadian-born executive who joined BHP in 2003 from Mitsubishi Corp., previously led the company’s marketing division and coal operations. He will take up his new position on Jan. 1, the company said in a statement Thursday.He replaces 62-year-old Andrew Mackenzie as growth in China, source of more than half of BHP’s revenue, slumped in the third-quarter to the slowest pace since the early 1990s. Against this backdrop and broader trade concerns, BHP is seeking to bolster output in copper and oil as long-term demand weakens for iron ore, its top earner.Henry will take over as the company debates its exposure to China, “the growth path there and how they can diversify away from that,” said Camille Simeon, a Sydney-based investment manager at Aberdeen Standard Investments, which holds BHP shares and manages about $670 billion in global assets.“Climate change and the energy transition the world is going though are going to also be a key consideration, along with the maintenance of their strong asset base,” she said.BHP shares traded 0.3% lower in London after advancing 0.1% in Sydney trading.Henry had long been among the leading contenders for the job -- a group that included other executives, such as Chief Financial Officer Peter Beaven and Danny Malchuk, head of operations in the Americas. A few months ago, BHP approached external candidates including Anglo American Plc boss Mark Cutifani about the position, according to people familiar with the matter.Regarded by investors and staff as thoughtful and diplomatic, Henry built a public profile at BHP by leading the company’s opposition to proposals for a new tax on iron ore production in Australia. More recently, his division has encountered operational missteps including fires and a train derailment that left railcars loaded with iron ore strewn across Australia’s Outback.Henry, who will earn a base salary of $1.7 million, will tour BHP’s operations for the rest of the year before making any decision on potential changes to the executive leadership team. He plans to update investors at February’s half-year earnings on initial plans for reforms, he told reporters in Melbourne.“I am all about performance and improvement,” Henry said. “We have a great strategy and I see it as my job as the next CEO to build upon that foundation we’ve created to accelerate performance.” BHP will seek to better utilize data and technology to improve operations, and will maintain its focus on limiting the company’s impact on the environment, he said.Underlying profit is forecast to rise about 12% to $10.2 billion in fiscal 2020, before declining in each of the following two years, according to analysts’ estimates compiled by Bloomberg.“His biggest challenge will be to keep the return on assets going -- they’ve had the advantage of growing iron ore over the last 4-5 years, but that’s tapered off,” said David Lennox, a Sydney-based resources analyst at Fat Prophets. “They’ve really now got to look at what’s going to be the next item to grow them.”BHP’s new leader takes over a business that’s been stripped down and simplified under Mackenzie, in the post since 2013. This included the $9 billion spinoff of unwanted assets into South32 Ltd. in 2015 and a near $11 billion exit from U.S. shale operations last year. The producer had cut its number of operations by more than half, and is now considering potential new growth options.A pipeline of more than $8 billion worth of projects to expand petroleum output are being considered alongside other already sanctioned investments, the company said Monday.The producer will decide in early 2021 whether to press ahead with spending as much as $5.7 billion to bring the Jansen potash project in Canada into production, adding the fertilizer to its roster. The crop nutrient would add a material with a demand outlook that’s tied to population growth, rather than metals-intensive urbanization in China, according to BHP. Some investors oppose the plan, arguing potash prices are likely to remain weak and projected returns are too low.What Bloomberg Intelligence says:Significant experience in various commercial roles in both minerals and petroleum, as well as a stint as chief marketing officer, sets him up to lead the company as it embarks on a number of projects in several business lines.\-- Andrew Cosgrove, senior analystTop miners are preparing for a shifting outlook as China’s pace of growth cools, and amid prospects for steel output to plateau. Urbanization and industrialization in Africa and other parts of Asia, along with the need to supply metals to a rapidly expanding electric vehicle sector, will offer potential new sources of demand Ivan Glasenberg, chief executive officer of miner-to-trader Glencore Plc, said in a May presentation in Barcelona.Henry will also continue to grapple with costs and ramifications tied to the fatal 2015 waste dam spill at BHP’s Samarco iron ore joint venture in Brazil that’s overshadowed Mackenzie’s tenure. The disaster killed 19 people and is the subject of ongoing civil claims and investigations. Samarco is on track to resume some operations in the second half of 2020.Mackenzie will step down from his post at the end of this year, and retire from BHP at the end of June.(Updates shares in sixth paragraph)\--With assistance from James Thornhill and Thomas Biesheuvel.To contact the reporter on this story: David Stringer in Melbourne at email@example.comTo contact the editors responsible for this story: Alexander Kwiatkowski at firstname.lastname@example.org, Keith Gosman, Jake Lloyd-SmithFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Calm and considered, incoming BHP Group Ltd chief executive Mike Henry is seen as a safe pair of hands to steer the world's largest mining company through what he says are uncertain times. A Canadian with 30 years experience in mining, including 16 at BHP and the past three at the helm of BHP's Australian business, Henry was named on Thursday as the successor to Andrew MacKenzie. While less well known to the investment community than some of BHP's other senior executives, Henry, 53, has a reputation as a thoughtful, ethical, diligent leader, more a safe pair of hands than an aggressive company builder.
Global miner BHP Group Ltd on Thursday appointed 16-year company veteran Mike Henry as its new chief executive from Jan. 1 next year, replacing Andrew Mackenzie. * A Canadian, Henry started at BHP in 2003 in business development before moving to marketing and trading commodities based in The Hague, where he also managed BHP's ocean freight operations. * "We will unlock even greater value from our ore bodies and petroleum basins by enabling our people with the capability, data and technology to innovate and improve," Henry said.
BHP Group Ltd on Thursday named its Australian head Mike Henry to succeed Andrew Mackenzie as the miner's chief executive, shunning calls from some investors for fresh blood from outside the Anglo Australian giant. Mackenzie, 62, will step down on Dec. 31 ending nearly seven years in charge of the biggest global miner, during which time he overhauled the company, spinning off a raft of assets and cutting costs sharply. Henry, a 53-year-old Canadian who joined BHP in 2003, has led its Australian operations over the past three years, including its biggest earner, iron ore, and the world's largest metallurgical coal operations.
Most of Chile's copper miners said they had maintained their operations on Tuesday, albeit with some delays and sporadic unrest, amid calls for a general strike and a fresh day of social protests, unions and management teams told Reuters. Public sector workers, students and other trade union groups called for a general strike on Tuesday, although they guaranteed that sectors such as fuel production and supply would not be affected. BHP operations, which include the vast Escondida mine, continued to operate, according to sources.
The company's petroleum head said the business is set to deliver strong returns and cash flow through the 2020s and beyond, supported by high-potential projects in the Gulf of Mexico, Western Australia and Trinidad & Tobago. Petroleum, which accounted for about 16% of BHP's underlying earnings in 2018/19, could potentially generate margins of more than 60% over the next decade, Geraldine Slattery, President Operations Petroleum, told a briefing. Excluding the shale business, the company's oil and gas arm has long had some of the strongest returns in the group's portfolio, including iron ore, copper and coal.
BHP Group's Australian shareholders on Thursday voted against a resolution to axe the global miner's membership in industry groups that advocate policies counter to Paris climate change treaty targets, backing the board's call and echoing the stance taken by BHP investors in London. Votes tallied after BHP's annual general meeting (AGM) in Sydney showed 72.93% rejected the resolution, BHP said in a filing. At the London AGM, only 22.16% of votes supported the motion.