BHP has an awful lot of employees who do not contribute to the...

First 4 Last

Share
Profile

Follow
hagetaka

7,059 Posts.

1202

26/02/23

18:42

Post #: 66472494
Share

Originally posted by Bigstockpunter: ↑

Interesting comment in the Australian today as part of the BHP half year profit announcement:

The mining giant also said on Tuesday it plans to extend the sell-off of its coking coal mines, putting its Daunia and Blackwater mines – part of its BMA group in Queensland – on the block, saying both would struggle to compete for capital going forward.

The obvious is that the coal assets are for sale. The other part of the quote "struggle to compete for capital going forward" is interesting. Not sure if that is due to QLD royalty regime or BHP won't invest in coal. Or more likely a combination of both - in my humble view.

I also had a "WTF" (where's this from") moment reading the half yearly BHP presentation. Slide 10 - Metallurgic coal (BMA) had an EBITDA of USD1.4b for the half year. From slide 20 - full year production guidance is 58-64 million tons. So if 30 mt was produced in the half year BHP's share would be 15mt (I believe BMA is 50:50) or an EBITDA margin of circa US$110 per ton. This margin seemed pretty skinny to me given the coking coal price - although production could have been hit hard by the weather.

In any event. it will be interesting to see if SMR is an interested buyer. Sure they will visit the data room but Peabody, CRN, WHC (who didn't pay out much of a dividend to preserve cash reserves - what could that cash be possibly used for? Acquistion perhaps?) NHC etc will no doubt also have a look.

Interesting to see what happens when the half yearly is released.

Best

BSP

GLTAH, DYOR, NFA, IMHO etc....

Expand

BHP has an awful lot of employees who do not contribute to the bottom line. They waste a lot of money on rainbow flags and other such nonsense.

SMR Price at posting: $3.80 Sentiment: Buy Disclosure: Not Held
6 Upvote

1 Great analysis

Reply

Top Stories

WC8

Wildcat’s PFS elicits lacklustre response

ASX Market Close: Index treads water as Energy stocks lead

HotCopper Trends: Vection's $7M, Liontown dips & Wildcat PFS

BEO

One of the biggest jumps today is the most obscure: Beonic Ltd up +65%

EMD

Emyria Advances kicks off National Rollout with Avive Health Agreement

First 4 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last $2.25		Change -0.040(1.75%)		Mkt cap ! $2.028B

Open	High	Low	Value	Volume
$2.28	$2.28	$2.22	$4.811M	2.136M

Buyers (Bids)

No.	Vol.	Price($)
3	27178	$2.23

Sellers (Offers)

Price($)	Vol.	No.
$2.28	69	2

View Market Depth

No.	Vol.	Price($)
1	896	2.230
3	22000	2.220
3	6759	2.210
5	2664	2.200
1	1000	2.190

Price($)	Vol.	No.
2.280	69	2
2.290	4313	3
2.300	4000	2
2.340	4200	3
2.370	7100	2

Last trade - 16.11pm 29/07/2025 (20 minute delay)

SMR (ASX) Chart

BHP has an awful lot of employees who do not contribute to the...

Wildcat’s PFS elicits lacklustre response

ASX Market Close: Index treads water as Energy stocks lead

HotCopper Trends: Vection's $7M, Liontown dips & Wildcat PFS

One of the biggest jumps today is the most obscure: Beonic Ltd up +65%

Emyria Advances kicks off National Rollout with Avive Health Agreement

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

BHP has an awful lot of employees who do not contribute to the...

Top Stories

Wildcat’s PFS elicits lacklustre response

ASX Market Close: Index treads water as Energy stocks lead

HotCopper Trends: Vection's $7M, Liontown dips & Wildcat PFS

One of the biggest jumps today is the most obscure: Beonic Ltd up +65%

Emyria Advances kicks off National Rollout with Avive Health Agreement

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News