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BHP - BHP Group

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There is a recent & current proposal by the Treasury and the Government to disallow franking credits associated with capital raisings by Australian companies. Worse still, they are considering making the legislation retrospective.

This means that investors will be hit by huge tax bills for capital raisings that have been carried out, in good faith, in the past. Investors in companies like BHP, CBA, WBC etc. will all be severely and negatively affected.

I therefore urge ALL investors to strongly oppose this measure, the details of which can be found in the link below. The link contains an email address which can be used to voice your concerns/disapproval
(prior to deadline 5th October 2022).

https://treasury.gov.au/consultation/c2022-314358
BHP is in a great position minting cash from their assets. They've generated operating cash of $75 billion in the past 3 years, while only spending $22 billion of that on investments and most of the rest going to dividends. I can't see BHP having a problem with this, but I could be mistaken.

I don't have an issue with the government slamming corporations which pay special dividends out of capital raisings. It's a crazy stupid corporate/legal/tax exercise. Do it right - pay dividends out of your genuine profits.

But just don't touch regular dividends.
 
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Market rebounded last night so i expect BHP to do well today.
Not convinced yet it is the rebound.
While the BOE has capitulated and is in QE again, so running toward a pound collapse, i am of the view we have still a couple of months of pain before we run into hyper stagflation and cyrrency collapse.knowing that a war could solve it all....
 
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Market rebounded last night so i expect BHP to do well today.
Not convinced yet it is the rebound.
While the BOE has capitulated and is in QE again, so running toward a pound collapse, i am of the view we have still a couple of months of pain before we run into hyper stagflation and cyrrency collapse.knowing that a war could solve it all....
I am with you qldfrog. More bumps on the journey to end of the year.
 
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Oct 3 (Reuters) - BHP Group Ltd (BHP) lifted its long-term demand forecast for steel as a global shift towards the decarbonisation of power generation will boost requirement of the commodity, the world's largest listed miner said on Monday.

The Melbourne, Australia-based miner raised its forecasts for steel consumption by 2%, or 42 million tonnes, for 2030 and by 4%, or 76 million tonnes, for 2050, based on surging demand for wind and solar farm equipment.

"Steel consumption in power will triple from today with demand from wind and solar 5 times bigger," BHP said in slides presented to analysts on a tour of its Western Australian iron ore operations.

The world's steel production grew 3.8% to 1.95 billion tonnes in 2021, according to the World Steel Association.

BHP Group is one of the biggest iron ore producers in the world. Iron ore, the most important raw material in steel manufacturing, brought in nearly half of the miner's fiscal 2022 revenue.

The forecast upgrade comes in the backdrop of a global push towards decarbonisation of power generation.

Renewable energy's cost efficiency and competitiveness have spurred massive investments as well as favourable policies across the global.

Clean energy investment is expected to exceed $1.4 trillion in 2022, accounting for almost three-quarters of the growth in overall energy investment, the International Energy Agency said in its World Energy Investment 2022 report released in June.

((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))
 
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Macquarie has confirmed an "Outperform rating on BHP with target price of $45.00 retained".

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 261.05 cents and EPS of 347.79 cents . At the last closing share price the estimated dividend yield is 6.76%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.10. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 518.4, implying annual growth of N/A. Current consensus DPS estimate is 363.4, implying a prospective dividend yield of 9.4%. Current consensus EPS estimate suggests the PER is 7.4

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 307.37 cents and EPS of 409.12 cents . At the last closing share price the estimated dividend yield is 7.96%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.43. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 425.3, implying annual growth of -18.0%. Current consensus DPS estimate is 309.2, implying a prospective dividend yield of 8.0%. Current consensus EPS estimate suggests the PER is 9.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
 
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Macquarie has confirmed an "Outperform rating on BHP with target price of $45.00 retained".

Forecast for FY23:

Macquarie forecasts a full year FY23 dividend of 261.05 cents and EPS of 347.79 cents . At the last closing share price the estimated dividend yield is 6.76%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.10. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 518.4, implying annual growth of N/A. Current consensus DPS estimate is 363.4, implying a prospective dividend yield of 9.4%. Current consensus EPS estimate suggests the PER is 7.4

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 307.37 cents and EPS of 409.12 cents . At the last closing share price the estimated dividend yield is 7.96%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.43. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 425.3, implying annual growth of -18.0%. Current consensus DPS estimate is 309.2, implying a prospective dividend yield of 8.0%. Current consensus EPS estimate suggests the PER is 9.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Boo Hoo Hoo entered at 49.
 
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Oct 19 (Reuters) - BHP Group (BHP) today reported that Iron ore production rose +2% in the first quarter on the back of strong activity from its Western Australia mines amid lower COVID-19 related impacts & strong supply chain performance.

The world's largest miner said iron ore production from Western Australia was 72.1 million tonnes (mt) in the quarter ended September 30, compared with 70.6 million tonnes a year ago and a UBS estimate of 72 mt.
 
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ALSO mining seems to be in a super-cycle ( whereas i was expecting this to be in a consolidation phase ) so how long does this cycle last ??

would war or a global depression bring things to a screeching halt
Firstly, Thank you to Telamelo for posting that vid. Interesting to watch n learn. He isn't keen on Iron ore for the next few years, however what about copper n nickels in moving forward. A good company always plan the future ahead.
My simple general comment about any good management company (not directing my opinion to BHP).
I would think war/global depression will put things to a halt, isn't it a normal assumption?
 
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Firstly, Thank you to Telamelo for posting that vid. Interesting to watch n learn. He isn't keen on Iron ore for the next few years, however what about copper n nickels in moving forward. A good company always plan the future ahead.
My simple general comment about any good management company (not directing my opinion to BHP).
I would think war/global depression will put things to a halt, isn't it a normal assumption?
war NORMALLY increases local consumption of resources at the expense of exports ( especially if the people you are in conflict with is your largest customer , one reason i was hoping we would be trading more with India by now )

now depression you made think would certainly cap commodity prices ( and demand , depending on government response )

a sensible government ( remember them ) would embark on 'nation-building ' projects to soak up the excess labor, but what are our chances this time , have i completely misread Albo ??

Rudd tried but the plans were badly implemented ( as much as i disliked Rudd he gets points for trying the correct tactic in the GFC )

BHP since the S32 divestment has been making some intriguing decisions , and given they always seem to take on long-term projects i am not so confident the current crop are up to the task

maybe not halt , but Australia has let it's manufacturing capacity wither ( could the need to revive it be a boost )
 
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What excess labour?
all that excess labor coming from collapsing companies ( likely caused by credit-tightening and rising costs )

i know it is counter-intuitive , but in times of company stress , the workers face redundancy first

of course we could always talk about the python in the ceiling .. UNDER-employment ( folks not employed to their full potential )
 

JohnDe

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all that excess labor coming from collapsing companies ( likely caused by credit-tightening and rising costs )

i know it is counter-intuitive , but in times of company stress , the workers face redundancy first

of course we could always talk about the python in the ceiling .. UNDER-employment ( folks not employed to their full potential )

I am seeing desperation from employers to find staff; they've gone down the track of poaching with offers of higher wages and other incentives.

If the government goes down the track of creating more work which requires more labour (just in case there is high unemployment in the future), all they are doing is creating higher inflation. that higher inflation could be the domino that tips industry over the edge.

At the moment the biggest stress that companies are feeling is labour & skill shortages.

1 job for every person: Here’s where they are

Australia’s unemployment rate is now sitting at 3.5 per cent - the lowest it has been since August 1974 - but there are still people struggling to find a job.

The Australian Bureau of Statistics (ABS) data released yesterday declared that there was now officially one vacant position for every unemployed person.

Where are the jobs?​

According to the June SEEK employment report, there was a decline in job ad postings in every state and territory.

But the small monthly decline is a blip on the radar compared to the massive 23 per cent increase since June last year.

The smallest June declines were seen in:

  • ACT - down 1.1 per cent
  • VIC - down 1.2 per cent
  • QLD - down 1.7 per cent
The greatest decline was in the Northern Territory, which fell by 4.6 per cent, followed by a 4.1 per cent drop in Tasmania and a 3.9 per cent decrease in South Australia.

Tasmania was the only state or territory to see an increase in applications per job ad, growing 2 per cent from the month prior.

An infographic of Australia showing job ad posting changes in each state and territory.

(Source: SEEK)
“June saw the first drop in job ads for most states and territories this year,” SEEK ANZ managing director Kendra Banks said.

”It was also the first time since the pandemic began that all states have recorded a simultaneous decline.

“The decrease was driven by the largest industries in most states, such as in Victoria where hospitality and tourism roles dropped 10.3 per cent and in New South Wales where job ads in trades and services fell 8.3 per cent.
 
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I am seeing desperation from employers to find staff; they've gone down the track of poaching with offers of higher wages and other incentives.

If the government goes down the track of creating more work which requires more labour (just in case there is high unemployment in the future), all they are doing is creating higher inflation. that higher inflation could be the domino that tips industry over the edge.

At the moment the biggest stress that companies are feeling is labour & skill shortages.
quality , SKILLED staff absolutely , and that is an additional problem , such folk don't just fall out of trees ( universities/technical colleges ) at the end of every year

but that quality skilled staff need minions in support ( and even those minions need some skills and half a brain )

the problem is likely to be plenty of jobs for specific skills ( say HEAVY transport ) and few able to fill the spot ( with a clean license )

and not every one copes with menial labor well ( even something like office cleaner )

now when i was young , the employers would hire likely lads ( and lasses ) watch them for 3 to 6 months and often the adept ones an apprenticeship ( or trainee-ship ) , how is that new system working ( compounded by an aging/shrinking population )

so when the job cuts come you have a large pool of workers that are unskilled for the available vacancies , do you send them home to the game console , or try to deploy them productively
 
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of course i could also talk about the 'python in the corner ( company loyalty/job security ) where companies are always trying the 'refresh staff ' to reinvigorate enthusiasm ( 10 years on the same job and you become a fixture [ wallflower ] no matter how pivotal the task )

bring in new people and hope they can't be bribed by a better offer ( super prevalent in the transport industry )

maybe it is a good thing i am here on a disability pension ( waiting for the aged pension ) some management can't handle even hints of the truth
 
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