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BHP set for bumper FY profit; Oh what's this? a good news story for mining
Topic Started: 18 Aug 2014, 12:17 PM (5,233 Views)
skamy
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BHP set for bumper FY profit
MITCHELL NEEMS AND AAP 3 HOURS AGO
DATAROOM INDUSTRIES RESOURCES AND ENERGY
The world's biggest miner BHP Billiton is expected to report a bumper full-year profit tomorrow -- and potentially a $14 billion demerger -- after achieving a 15th straight year of record iron ore production.

Analysts believe the global miner could deliver a net profit of more than $US13.6 billion (A$14.6bn), up from $US10.9bn in the prior year.

It would be a welcome turnaround for the diversified resources company whose profit dropped by 30 per cent to $US10.9bn in 2012/13 due mainly to weaker commodity prices.

The miner is also widely tipped to announce plans for a spin-off of a portfolio of non-core assets into a separately listed company, which the market has valued at $14bn. It comes after BHP last week said a demerger of non-core assets was its preferred option as it forges ahead with its decade-long quest for portfolio simplification.

Investors on the Australian and London bourses cheered the news in Friday trade, which is a promising sign given a shareholder vote will be required to progress the demerger.

Long-serving director David Crawford is expected to be appointed as the inaugural chairman of the new demerged company, The Australian Financial Review reports.

In tomorrow's full-year results Deutsche Bank analysts have forecast BHP will report underlying earnings of $US13.63bn and earnings before interest and tax of $US23bn.

They also expect the company to issue a final dividend of US61c and announce an on-market rolling share buyback of at least $US3bn.

But it won't all be good news for shareholders.

In its production report last month BHP said it expects to take an earnings hit of between $US900m and $US1.3bn due to mine site rehabilitation costs and redundancy payments.

Deutsche believes capital management could dominate the annual result.

Capital expenditure guidance for fiscal 2015 could be as low as $US13bn.

Investors will also keep an eye on the company's cost-cutting program, which has already achieved $US3.3bn in savings excluding cuts to exploration costs.

Iron ore will once again deliver the bulk of the company's earnings, followed by petroleum and copper.

BHP recently said it's on track to achieve its target of 16 per cent production growth across all commodities for the two years to the end of June 2015.

And the company revealed it received an average realised price of $US96 per tonne for its iron ore during the second half of the financial year, down from $US112 a tonne in the preceding six months.
http://www.bhpbilliton.com/home/Pages/default.aspx
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Perthite
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Built on mass job losses and massive billion dollar cuts in expenditure.

Profit then goes overseas. You ok?

:wak:

Good news for who?
Edited by Perthite, 18 Aug 2014, 01:03 PM.
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Lef-tee
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Perthite
18 Aug 2014, 01:01 PM
Built on mass job losses and massive billion dollar cuts in expenditure.

Profit then goes overseas. You ok?

:wak:

Good news for who?
Exactly Perthite - it even tells us that in the article she posted! Rio much the same I expect. And she said she was a researcher :bl: .
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skamy
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Lef-tee
18 Aug 2014, 01:43 PM
Exactly Perthite - it even tells us that in the article she posted! Rio much the same I expect. And she said she was a researcher :bl: .
What you guys fail to get is that the mining INVESTMENT BOOM was an investment in the state. Exports have increased markedly and there are a lot of people making money.

More jobs were created in WA last month than were lost. You guys seem to just ignore this information. Then again you are probably not researchers hey?



Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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newjez
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Lef-tee
18 Aug 2014, 01:43 PM
Exactly Perthite - it even tells us that in the article she posted! Rio much the same I expect. And she said she was a researcher :bl: .
Profits would have been even bigger without the redundancy payments.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Lef-tee
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skamy
19 Aug 2014, 03:36 AM
What you guys fail to get is that the mining INVESTMENT BOOM was an investment in the state. Exports have increased markedly and there are a lot of people making money.

More jobs were created in WA last month than were lost. You guys seem to just ignore this information. Then again you are probably not researchers hey?


What you fail to acknowledge is that I have used the words "mining investment boom" more times than I can recall and pointed out endlessly that it is just that. Investment booms require a great deal of boots on the ground to get the job done. When the investment boom ends most of those boots are no longer required and the money that is made churning out dirt belongs largely to foreigners.

You do understand the concept don't you? Investment booms pump large sums of money into the local economy, mining exports less so.

And unlike you, I ignore nothing - the investment boom is still charging on in the most vital area for employment and the local economy - that is, in mining construction-related areas. Although it is probably right on the cusp. Much of the drop off in investment dollars thus far has been in the purchase of imported machinery and equipment, there are few jobs to be either gained or lost in that.

We can talk about the unemployment rate in a couple of years (if government fails to do anything) though I suspect you will no longer be here.
newjez
19 Aug 2014, 05:15 AM
Profits would have been even bigger without the redundancy payments.
I think there might be plenty more such payments to come yet.
Edited by Lef-tee, 19 Aug 2014, 06:53 AM.
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goldbug
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skamy
19 Aug 2014, 03:36 AM
What you guys fail to get is that the mining INVESTMENT BOOM was an investment in the state. Exports have increased markedly and there are a lot of people making money.

More jobs were created than lost...



Idiot! It was an investment in a hole in the ground, the money earnt by workers and revenues collected by taxes could have been used as an investment for the state but for the most part they were pissed up against the wall. Certainly most of the wages were, wasted on fast living and dubious real estate purchases. Similarly the taxes were squandered. If they hadn't been the state wouldn't be in the state it now is. Broke!

Now all that is happening is big profits to the owners and controllers of BHP and the few personel still working for them.

As for the MORE JOBS created. They are no doubt low wage part time jobs being created. That's the trend now. A manager gets sacked from a $150k job and 2 part time workers at wollies on $22/h get hired. Wake up to the truth scammy, clear that shit out of your scull and face the truth. All your lies have done nothing to hold up Perth re prices, nor rents.
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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John Frum
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Touche you obnoxious old harridan:

http://m.smh.com.au/business/mining-and-resources/newcrest-mining-makes-222b-statutory-loss-after-billions-in-writedowns-20140818-1057ot.html
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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stinkbug
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I'd expect to see a number of years of big profits from the miners. The big mines are well on the way to being built, there are fewer high cost staff being employed and volumes are rising (albeit at lower $ per unit mined).

This was always going to happen. For people riding the big wave of mining employment the idea was to make money, save/invest in something, then take it a bit easier once it was over. A few people have probably managed that, but I suspect quite a few won't have.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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SittingOnDeFence
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skamy
19 Aug 2014, 03:36 AM
What you guys fail to get is that the mining INVESTMENT BOOM was an investment in the state. Exports have increased markedly and there are a lot of people making money.

More jobs were created in WA last month than were lost. You guys seem to just ignore this information. Then again you are probably not researchers hey?


How many people did BHP lay off this year?
Edited by SittingOnDeFence, 19 Aug 2014, 11:25 AM.
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