re: tiof ? voelte - same person different tune
WPL / HDR execs could take a leaf out of BHP,s book and reassure the market with a statement like this one from Chip Goodyear.
BHP Billiton chief executive Chip Goodyear has urged nervous investors not to fret about the recent drop in the global miner's share price.
The miner's confidence in the strength of the China-driven commodities boom was underlined on Thursday when it announced it would spend $US1.3 billion ($A1.71 billion) on the latest round of expansion at its iron ore operations in the Pilbara in Western Australia.
The expansion plans will push the company's iron ore output to 129 million tonnes a year by the end of 2007.
Advertisement: Shares in the world's biggest miner have been on a relentless march upwards this year, but were sold off in the correction that has affected the Australian market over the last fortnight.
They climbed from about $15.55 in mid-May to a high of $22.48 at the end of September, but have since fallen back and closed on Thursday at $20.01.
Quizzed about the share price drop at the miner's annual general meeting in London, chief executive Chip Goodyear told shareholders they should not be worried about a few tough weeks on the market.
"The gyrations of the stock market are driven by many factors," he said.
"I think you need to be confident that the underlying performance of the company is quite good, that the markets that we are operating in are quite strong and that ultimately the economic value will transfer into that share value."
Mr Goodyear said BHP Billiton remained confident that urbanisation in developing countries would continue to drive demand for the commodities it sells.
"Demand continues to be strong and we expect demand growth to continue as China continues its large-scale urbanisation and countries like India follow the same trend of a burgeoning middle-class," he said.
Mr Goodyear said the miner would continue to grow its operations to meet demand and currently had 26 projects in the pipeline, representing $US11.9 billion ($A15.64 billion) worth of capital expenditure.
The company had now effectively integrated the resources of WMC Resources, which it acquired in a $9.2 billion takeover this year, into the group, he said.
The acquisition has made BHP Billiton a major player in uranium, as it now owns the massive Olympic Dam deposit in South Australia which holds one third of the world's known uranium resources.
This has sparked hand wringing in the ethical investment community, many of whom lifted their bans on uranium stocks so they could continue to hold BHP Billiton shares.
BHP Billiton chairman Don Argus said the new uranium asset offered a great opportunity for the company, but acknowledged that some would be concerned about it.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
