down 7pc in a couple of days, page-6

BHP, being the size and the importance that they are, tends to be over-analysed. As a result, analyst forecasts re profit etc tends to be fairly accurate, and upside surprises nearly impossible to pull off. People were hoping for an upside surprise and were disappointed by results that were within expectations. Also, the $3 billion buyback, whilst generous, was also expected, but the 18 month timeframe disappointed most people.

Fairly quickly, the fundamentals will re-assert themselves. A $27 share price equates to a P/E of less than 12, and profits are expected to rise by another $2 billion next year. Also, at the end of September, BHP will be unveiling a resource upgrade, including the results of some major drilling work at Olympic Dam. The size and scope of any enlargement of Olympic Dam may also be unveiled.