Anglo- Australian mining giant BHP Billiton plc (BHP.AX,BLT.L,BBL,BHP) reported Tuesday a hefty loss in its fiscal 2016 amid significantly weaker prices across all major commodities that had a negative impact of $10.7 billion.
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‘For now that is being supported by a ruthless cost cutting campaign, but there’s only so far that can go’.
BHP Billiton Chief Executive Officer, Andrew Mackenzie, said, “The last 12 months have been challenging for both BHP Billiton and the resources industry”.
‘Management’s view of an end to market oversupply by 2018 is the right kind of sound to be making in order to entice bulls into a recovery story’.
LONDON, Aug 16 (Reuters) – UK shares slipped from a 14-month high on Tuesday, though mining stocks rallied following a well-received set of results from Antofagasta. The company’s market cap is GBX 5.54 billion.
BHP Billiton Plc is engaged in exploration, development, production, processing and marketing of minerals, in respect of iron ore, metallurgical and energy coal, copper, aluminum, manganese, uranium, nickel, silver and potash, and exploration, development, production and marketing of conventional and unconventional oil and gas.
EBITDA margin strengthened to 39.5%, up from 31.5% and operating cost reductions of $124 million were achieved, contributing to savings of $0.11/lb in cash costs.
Group copper production was 323,300 tonnes, 6.6 percent higher than previous year with the inclusion of production from Antucoya and attributable production from Zaldívar.
It declared an interim dividend of $0.031 a share, unchanged from previous year.
Volatility could still rock the copper market amid national stimulus programmes, macroeconomic events and USA dollar movements, although there have already been some cuts to mine production. Net debt stayed relatively flat at around $1 billion. The mining division includes Los Pelambres, Centinela, Antucoya and Zaldivar. Full year expenditure expected to be lower than original guidance.
The business has a 50 day moving average of 966.91 and a 200 day moving average of 846.74 whilst the 52 week high shares of BHP Billiton PLC have reached is 1203.5 and the 52 week low is 571.6.
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This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
