|Bid||54.21 x 1300|
|Ask||54.26 x 1800|
|Day's Range||53.74 - 54.91|
|52 Week Range||45.97 - 59.02|
|Beta (5Y Monthly)||0.99|
|PE Ratio (TTM)||16.94|
|Forward Dividend & Yield||2.66 (4.95%)|
|1y Target Est||43.95|
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.
The Zacks Analyst Blog Highlights: Apple, PepsiCo, BHP Group, Canadian National Railway and Schlumberger
(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 email@example.comTo contact the editor responsible for this story: Phoebe Sedgman at firstname.lastname@example.orgFor 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.
BHP Group (BHP) raises stake in SolGold, which is focused on exploring copper and gold deposits in the Andean Copper belt that holds half of the world's copper resources.
Australia represents a safe backdoor Pacific growth play supported by rock-solid fundamentals; China, Japan, South Korea, India and Hong Kong are its leading export destinations, asserts Carl Delfeld, international expert and editor of Cabot Global Stocks Explorer.
(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 email@example.com;David Stringer in Melbourne at firstname.lastname@example.orgTo contact the editors responsible for this story: Alexander Kwiatkowski at email@example.com, 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).
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.