I suspect part of this strategy is to diversify away from Australia with a copper growth story elsewhere. The IR laws could stop the expansion of the South Australian copper hub which includes Oak Dam. Use the Anglo asset expansions in South America as a bargaining chip to say change those IR laws or we invest $10s of billions in South America, not Australia. A trump presidency will also likely see RIO/BHP JV at resolution in Arizona get approved. That deposit is far superior to anything, I believe it’s the highest grade large scale deposit in the world that hasn’t been developed.
If copper price permanently rerates above $5 a pound then the Anglo deal makes sense. A lot of analysts have long term assumptions at low to mid $4s, hence questioning BHPs move. Hence BHP must be modelling in much higher prices. Synergies… well we know coking coal assets would. South American copper should have some. Brazilian iron ore - high grade makes sense too. Everything else is junk in Anglo.
I suspect part of this strategy is to diversify away from...
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Last
$44.39 |
Change
-0.380(0.85%) |
Mkt cap ! $225.1B | |||
| Open | High | Low | Value | Volume |
| $44.52 | $44.68 | $44.21 | $228.3M | 5.147M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 93 | $44.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $44.40 | 13049 | 4 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| BHP (ASX) Chart |