BHP - Price Chart, page-59

The big fall was 2 days worth as US markets were shut Monday so half was catch up. Hence reflected in the 2-2.5% falls in BHP and Rio.

how low this goes? Who knows. But you have low balance sheet risk with the worlds lowest cost producer in iron ore. RIO has a more pristine balance sheet, albeit more iron ore focused and higher sovereign risk with copper skewed to Mongolia.

Ex dividend next week will shave a dollar off the share price. But who knows where it’ll be.

my view is always to buy attractive world class companies at cheap prices. Fits that bill to me, thought that in the low $40s too. But new China fears hitting miners.

Given debt is well under our limit of $15bn, I’d suggest BHP consider a share buyback. The ROE in its existing business will be likely higher than any further acquisitions at sub $40 share price. Just saying. RIO is constrained on the buybacks due to chinas holding on the uk main listing. Fairly certain it’ll put them at too high a % of ownership if they conducted one. Luckily BHP doesn’t have that issue.

Let’s see if the executives listen.