Those calling BHP at $25ish must realise that was the Covid low or the price in 2017 and 2016 (not the lows).
2016/17- we had the Samarco disaster, iron ore went to $40 on a flash crash and BHP had net debt at over US$30bn.
2020 - pandemic. Balance sheet by memory was still circa $USD20 bN odd and the world economy stopped….
2024. Net debt is under $US10bn. We make enormous amounts of free cashflow and iron ore is still in the $90s. BHP is the lowest cost producer in the world. NTA is off the top of my head circa $14 alone, but I’d dare say the real value of the infrastructure it owns is likely double that given inflation and we are using accounting depreciated figures.
If she goes to $25 something seriously bad has happened. I’ve been offloading overpriced bank stocks to continually top up large amounts here. Cannot believe the valuation differences (my view).
BHP Price at posting:
$38.45 Sentiment: Buy Disclosure: Held
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