This morning’s announcement also revealed that BHP’s plan to divest its underperforming US shale oil and gas business was nicely on track and that transactions could be completed later in the year.
Trading simply hasn’t been going well lately in regards to minerals and resources across the American region. Australian shares have been described as underweight by the US banks. And large companies such as BHP Billiton are suffering due to a lack of interest across international fronts.
The US dollar rally has barely paused for breath since getting underway in February. Late last week, it took its toll on commodities. Oil fell nearly 3%. Iron ore fell 3.7%, while aluminium declined 0.7%. What will happen next?
Blackham Resources [ASX:BLK] have reduced ore recovery costs by 30% by taking advantage of an excising CIL plant. Its shares rising in value by 3.90% displays how efficient their choices have been in regards to productivity and development. Will it grow further? Find out more...
The overall consistency of Rio’s dedication to iron mining has paid off, with their shares growing by 1.08% this morning. Rio’s shares have continued to grow on their successful mining ventures throughout last year.
Resources have been the big outperformers since the global bull market got underway in early 2016. Since those lows, BHP’s share price has soared nearly 130% (to the January 2018 peak), while RIO’s isn’t far behind, up just over 126%.
Australia, as an investment destination, suffers from an increase in risk perceptions. Foreign capital is less willing to invest here, or buy debt issued by the banks to fund the mortgages of Aussie battlers. As a result, the Aussie dollar falls. However, the ‘magic’ of a falling dollar is that it increases the purchasing power of foreign currency.
BHP Billiton is planning to cut costs big-time over the next two years. The mining giant aims to save $2.2 billion, which would mean a 10% cut to unit costs across the board.
Iron ore rallied in July and August. Yet it has plummeted in the last few weeks after fears that the crack-down on pollution could affect both supply and demand of the iron ore market.
This morning, BHP Billiton Ltd [ASX:BHP] fell 2.2% to $26.68 per share. BHP isn’t the only miner down today. Rio Tinto Ltd [ASX:RIO] and Fortescue Metals Group [ASX:FMG] also traded lower, down 1.6% and 1.5% respectively.