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  • Billiton: Samarco Dam Failures (Update)  [View article]
    The negative noise levels around BHP is deafening just now. The Chairman and CEO have reiterated their commitment to the progressive divident unless it jeopardises the health of the Balance Sheet and the Company's rating. They have scope to cut costs a lot more yet and are busy, busy on doing just that; check the carving out of large numbers of staff in operations as they, 'simplify and standardise' leveraging (SMART) data and information across the Group. They also have the latitude to raise debt levels, mothball the Potash development that is not scheduled to return significant returns for years, and cut their investment/exploration budgets. Their assets are top or next to top of the class in terms of their quality and size, the quality of the Executive and operational management is (along with Rio Tinto's) excellent and they are very low down the cost curve in the commodities they are champions at producing. If the world economy is going to grow over the next decade and more the future looks great for BHP Billiton if you discount black swans ........ like Saudi Arabia devaluing its currency or substitute products undermining a current product or recycling adding significant flows of a metal that is projected to be in short supply - the stuff of 'disruptive innovation' in short. Why so much superficial 'noise' from the Wall Street choir just now?
    Dec 3, 2015. 12:26 PM | 1 Like Like |Link to Comment
  • BHP Billiton Delivered The Worst Plan I've Heard Since I Bought Freeport-McMoRan  [View article]
    Visionary management, relatively low levels of debt, market leader and low/lowest cost and positioned for sustainable growth over decades, excellent management ......... and all in a market with assets ripe for the selective plucking! Goodness, I'd better enhance my order. If doubts persist read the latest Annual Report it is a model for the curious ......... whether shareholder, host government, critical environmentalist or anxious tax authority!
    Oct 29, 2015. 12:47 AM | 1 Like Like |Link to Comment
  • GE to invest up to $1B in Indonesia's power, oil and gas, healthcare sectors  [View news story]
    Massive population, commitment to growth, guarantees from WB.......... Sounds like a promising new market! What else do you look for in positioning and preparing for sustainable growth over a couple of decades plus? Well done, GE!
    Oct 27, 2015. 05:08 PM | Likes Like |Link to Comment
  • SABMiller Can Still Sell A Self-Improvement Story  [View article]
    Possible impediment to ABInbev takeover - they bottle Pepsi across South America .........SABMiller do Coke across Africa?
    Jun 11, 2015. 03:20 PM | Likes Like |Link to Comment
  • Is Mining For Dividends With BHP Billiton A Good Idea?  [View article]
    Two considerations amongst others that auger well for shareholders who are wanting to add long term value: a very large share buyback premised on cutting debt below a threshold that has been breached; and, vigorous cost reduction that continues to strengthen the company's position relative to its peers (bar Rio Tinto) in the commodities it produces.
    In the current downturn in commodities markets that may go on for five years or more BHP B's competition is under siege with many marginal producers unlikely to survive. Isn't that how moats are intended to work?
    I'm content to continue drip-feeding BHP Billiton's shares into my portfolio but then my outlook is a decade plus not this quarter or year.
    Nov 9, 2014. 03:34 PM | 1 Like Like |Link to Comment
  • BHP Billiton Dividend Stock Analysis  [View article]
    The observation about BHP Billiton being a price taker is not wholly correct. It is one of the two price makers in each of copper, metallurgical coal and iron ore. It is positioned to improve its price-taker status in potash but obviously a long, long way from being one the big players in oil and gas.
    Having said that though it is best positioned of any company in uranium if and when nuclear energy becomes the non-carbon generating preference in energy generation.
    The company has trimmed back its exposure to production in countries in which corruption is a major concern; the regulators that thwarted the Rio takeover missed the reality that BHP Billiton's competition is more the proxies for the Chinese, Russian and Brazilian governments than Rio and Anglo American and X-Strata. The point is that the sovereign investment funds set up by these governments operate anywhere with no questions asked of the hosts. As a result BHP Billiton is more focused on mining in contexts that do not threaten its reputation for integrity like Canada, Australia, the USA and Chile.
    The assets for which the prognosis is poor like Aluminium and Nickel are on the block and the new CEO has confirmed that the current assets will be 'sweated' to improve returns and that costs will be carved out in large measure as the sector enters a period of consolidation.
    At current levels I have to respectfully disagree with BBL; it continues to represent good value.
    Feb 27, 2013. 04:36 AM | 2 Likes Like |Link to Comment
  • More Einhorn: A new bearish thesis, Greenlight has shorted a number of stocks in the iron ore sector, believing the billions miners have spent growing capacity is coming online as global demand growth for steel fades. The big late-year rally in iron ore prices - and stocks like RIO, BHP, VALE, CLF, to name a few - looks to have made a good entry point.  [View news story]
    If you are the number one or two producer and at the bottom of the cost curve in a commodities market the one big hole that can upset your company is the outlook for the commodity in the medium (3 to 7 years) and long term (7 to 10 years plus). The outlook for iron ore, copper, oil and gas (and uranium), potash and metallurgical coal on these timelines is excellent. And BHP Billiton's main asset in each case is in a developed setting where the corruption associated with so much mining in the developing world is at a minimum. Apart from their oil and gas assets that are located to benefit from the USA's energy story their deposits are the healthiest known in each commodity. Seems to me there is a lot to like if you are interested in value or am I missing a big minus in the mix?
    Jan 23, 2013. 03:59 PM | 1 Like Like |Link to Comment