18/04/2024 16:37

BHP Group (BHP) $45.09

BHP +1.46%: while much of the rally today can be explained by strong iron ore and copper prices, BHP was also out with their 3Q production update which was largely positive. Copper production of 466kt was a small beat to expectations with strong grades going through their flagship Escondida asset plus a strong ramp up at the Chilean asset Spence.

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09/04/2024 09:22

BHP Group Ltd (BHP) $44.25

The “Big Australian”, as it is often referred to, has been touched on a number of times in 2024; we believe BHP is worth accumulating into dips below $40 and reducing above $50 – boring but effective over recent years. The one area we will be watching carefully is if debt levels, and if they do start to impinge on the stock's dividend, we could look elsewhere in the sector.

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22/02/2024 09:21

BHP Group Ltd (BHP) $44.47

BHP reported a solid 1H24 result this week with underlying revenue of US$27.2bn above consensus of US$26.9bn, while EBITDA of US$13.9bn and NPAT of US$6.6bn were broadly in line.

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20/02/2024 16:43

BHP Group (BHP) $45.54

BHP -1.09%: Shares fell despite reporting a solid 1H24 result. References are to ‘underlying’ given a big write down to their Nickel assets and provisioning around Samarco. Underlying revenue US$27.2bn was above consensus of US$26.9bn, EBITDA of US$13.9bn and NPAT of US$6.6bn was broadly inline with consensus.

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30/01/2024 09:20

BHP Group Ltd (BHP) $46.87

Diversified miner BHP resides in both our Active Growth and Active Income Portfolios; the stocks slipped over recent weeks after they and Vale were ordered to pay $14.7bn in damages for the 2015 Brazil dam collapse, the companies could appeal the decision, but they knew it was coming and often the removal of uncertainty can help a stock medium term.

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18/01/2024 16:39

BHP Group (BHP) $45.73

BHP -1.8%: The Big Australian was out with 2Q production numbers today with the high notes coming broadly in line with expectations. Iron ore output was up marginally on 1Q24, but down -2% on pcp. Copper was the reverse, down -4% on 1Q but up +3% on 2Q23. Elsewhere, nickel and energy coal production was in line with expectations but met coal struggled which also weighed on costs.

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21/12/2023 09:03

BHP Group (BHP) $47.87

MM is a big fan of BHP, and although it's already testing its all-time high set in January, we have no plans to take some profit unless we see a pop above $50, i.e. potentially reducing our 8% exposure back to 6%.

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14/12/2023 09:12

BHP Group (BHP) $47.87

Australia’s largest company now has a market cap of $242bn; this diversified resource goliath currently enjoys ~50% of its revenue from iron ore and 30% from copper, with the latter increasing in the years ahead. We like the company's revenue mix, although it's not going to “pop” as fast as purer iron ore plays, such as Fortescue (FMG) and RIO Tinto (RIO) – the markets forecasted ~5% fully franked yield over the coming 12-months may prove too conservative as iron ore remains strong.

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02/11/2023 09:16

BHP Group (BHP) $45.19

BHP won't enjoy any impact from potash on its revenue until 2026 at the earliest, but it will, over time, create a more environmentally friendly company as its earnings profile evolves, i.e. FY23 48% iron ore, 31% copper and 21% coal. The further expansion by BHP into potash was flagged/expected, but it reminded us that we like the direction this flagship Australian miner is heading.

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28/09/2023 09:23

BHP Group Ltd (BHP) $43.49

BHP’s revenue in FY23 were 47.9% from iron ore, 30.9% from copper and 21.2% from coal, with the company's “green evolution” seeing copper grow to 45% by 2025. We think their commodities mix is perfect at this stage, with coal and iron ore helping fund a greener runaway over the next decade.

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