Why Did BHP’s Share Price Jump 1.43% on Open?

Mining giant BHP Billiton Limited [ASX:BHP] has seen a rise by more than 120% in the last two years, prompted by foreign investor interest and stronger commodity prices. At time of writing, the share price is sitting at $34.04.

BHP are presenting at the 2018 Global Metals, Mining and Steel Conference in Florida today. Investors will be interested in CEO Andrew Mackenzie’s comments.

What’s the Story?

Mackenzie has pointed to the company’s focus on growing long-term shareholder value, among other factors:

We have maximized operating cash flow as we have lowered costs through productivity; we have been disciplined and transparent in capital allocation; and we have identified new options to increase value and returns.

Over the past two years, BHP have reduced costs by more than 15%, reduced net debt by over US$10 billion, returned US$8 billion to shareholders, and delivered on a progressive technology and innovation program.

What does the future hold for BHP?

In a statement released by BHP, Mackenzie told his audience, ‘BHP is set-up for future success. We have a simple, unique portfolio of the very best assets, diversified across attractive commodities.’

With this kind of confidence at the helm of the mining giant, it’s hard not to see future opportunity.

BHP has vowed to continue to target a further US$2 billion in productivity gains by the end of the 2019 financial year.


Ryan Dinse,
Editor, Money Morning

PS: What other opportunities lie in the 2018 mining boom? We’ve investigated ‘10 ASX mining stocks’ that could make you huge money in the next 12 months and beyond. Claim your free report here.

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

Ryan's premium publications include:

Money Morning Australia