BHP official announcement - ASX Onshore US Asset Review http://search.asx.com.au/s/search.html?query=BHP&collection=asx-meta&profile=web BHP Billiton expects to recognise an impairment charge of approximately US $4.9 billion post - tax (or approximately US $7.2 billion pre-tax) against the carrying value of its Onshore US assets.
The westpac next year forecast is 56 cent per share, then an expected 65 cents in fy17, with a forecast ROE of around 5% i'd say the price will go somewhere around $10 or lower within the next 12 months assuming the current commodity outlook remains. Managment will surely terminate the current dividend policy atleast within the next two years, clearly unsustainable and could only be propped up with large! debt increases.
Just saw on the ABc that BHP's credit rating has just been cut. Prudent management would see them cut dividends all together to reduce debt until commodity prices return.
Whats that? I think I read something about it when I was a kid. RIO got cut too. These ratings agencies really are rocket scientists aren't they. They're only about 6 months late....
Yep, they did. Interesting the price isn't falling - the big guys won't have a problem with lower dividends. Interesting to see what small shareholders will do.
Currently credit ratings company Moody's is conducting a major ratings review of some 150+ big energy and mining companies globally which is scheduled for release in Q2. Should make for an interesting time depending what commodity prices do between now and then and afterwards. Could see a lot of mining and energy companies cutting dividends and profit forecasts.
Today 1oz of spot silver ($21.04) will buy 1.19 BHP shares ($17.71). I don't know what's going on with BHP's dividend policy but Rio has just abandoned its progressive dividend policy, announcing a full year dividend for 2015 of USD2.15 (to equal 2014's optimistic dividend), and promising "for 2016, we intend that the full year dividend will not be less than 110 US cents per share" which would still be a 3.4% fully franked return based on today's exchange rate (0.7226) and share price (AUD46.68). This on the back of a USD866M loss for Rio in 2015.. And the share price has rebounded 8.8% since that announcement, 22% off its recent low of $36.53. Suggests the market was anticipating worse. I'm not saying Rio is a buy, I personally am locked into a share plan with the company so I buy regardless of price... But Rio could be well placed to swallow up some of its competitors whole or in part. Sam Walsh said as much in a recent video, stating that there's nothing interesting on the market presently, but that could change depending on how 'the majors' fare.. which to me means BHP and (I guess) FMG, from an Australian viewpoint. Watch this space.
BHP just cant win at the moment http://www.perthnow.com.au/news/wes...re/news-story/7c16bd3caf6327317bffe0dc9fb27e5 A HEALTH scare has shut down the BHP Billiton Water Park at Elizabeth Quay for the second time since it opened.
The article mentions Pseudomonas, most species under this genus are considered non-pathogenic to people with functioning immune systems. Refreshing or replacing the filter cartridge is the normal course of remedy, and a partial 20-35% refresh of the load/reservoir would reduce Total Organics.
I never said they woundt cut just that it could not be ruled out i.e. IF I think they will go a fair bit lower yet in light of the cut they did make and other issues they have ha recently. wait for the war to really pick up steam in the middle east and then start buying back in.
Today's ratio: 1.03 (Silver $22.95 vs BHP $22.37). BHP topped out at a close of $23.80 last Tues so just pipped 1oz silver for a day or 2. Anyone who bought in Jan (see post 58) would be smiling now...
BHP: $24.93 XAG: $24.42 Meanwhile, Twiggy Forrest's 1-billion-plus FMG shares have just jumped $850,000,000 since Friday
