it’ll be cut given iron ore and met coal prices coupled with our high capex on Jansen and copper. Although if China stimulus delivers bulk demand ( IO and coke demand) via infrastructure and or housing then I stand corrected. We’d need iron ore circa 110-120 to likely maintain USD1.20-USD1.30 dividend.
Still we are likely to get a 3.5-4% dividend yield plus franking at current pricing with potential China stimulus upside to that. Fine by me.
I still feel like the market completely under appreciates Jansen that will deliver 2-3bn EBITDA in a couple years. Plus the fact it adds a large new source of profit that’s decoupled from China. Add in the fact it has a 100 year mine life - the typical BHP special and why I always invest here for mining.
BHP Price at posting:
$39.77 Sentiment: Buy Disclosure: Held
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