The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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GLEN makes formal offer to buy BLT (at) Nickel Wesr Unit part of the 'Pup' I presume.
This is a very decent level to be buying in at.
Nothing grabbing me from a buying point of view today so going to keep my money in my sporran and be patient like the guys on rbs bb and off to enjoy my day out in Lanarkshire now. North side much posher lol
Am I too late to come to the ball. I've been put off another share big time (will not say which) but it's maybe not for me after all. All over the place today Motherwell for starters so might catch you later or ra morra.
Someone plumped for a short to 1864....
Think I'll wait to ex div date then have another look...seems to take a fearful hit then comes back up within a couple of weeks
Talk of delisting from London and trading on Oz market only....bit of a pain with currency conversion at trades...
Had been blethering to QueenElvis and she mentioned she was going to have a crack at a miner...I had a peek and thought the old favourites were a bit on the rich side....then my eyes caught this. The day to day graph made it stick out a bit with the drop from the 1940's....but..its BLT...and like most of the chippers, it usually bounces back after news and resultant trading takes effect until it hits the floor. Anyone trying to short it below the 1900 mark might run into difficulties as its holding well there....google finance charts/data show it breached the 1900 to 1897.65....its now bouncing between 1900-1908...consolidating....if it tickles the 1900 again, I might be tempted.
Hi New Kid, yes this seems to be out of favour along with my holding in RIO but how far it is going to fall is the big question. it goes ex divi next week yet is reacting to the news from Australia ie that the state of Western Australia said it planned to sell government-owned assets, including part of the Port Hedland shipping terminal, for an estimated A$1 billion to A$2 billion ($1.9 billion) as its resource-heavy economy adjusts to the collapse of a decade-long mining boom. What is your view on this share following that statement?
IMO, I'm up 32% as a long term holder, so nothing to complain about. I'll take my own advice - Keep the Dog & Sell the Pup.
Lombard: BHP’s spin-off will go with the flow: The new business, valued at about $12 billion by Investec, will comprise a raft of unfashionable assets such as aluminium, manganese and nickel. BHP will thus unpick a chunk of its 200 merger with Billiton. The group will lumber away on the four elephantine legs of iron ore, copper, coal and oil (swishing a tail of potash) at an implied valuation of $176 billion. We may surmise that Raftco, as we shall call it, owns mines BHP did not get decent offers for during a two-year disposal programme that, in the event, raised $6.5 billion. Hardly surprising, with commodities in retreat and investment growth braking. Raftco resembles a floating platform from which such wares as the world’s largest silver mine may be displayed for sale when economic tides lift mineral prices again. Will Messrs Kerr and Harris invent a raison d’être for Raftco more inspiring than relieving BHP of part of its conglomerate discount? Or will they go with the flow established by low-key BHP Boss Andrew Mackenzie, whittling down to an irreducible core? Imagination may not be their strong point, judging from Raftco’s real, though temporary, name: Newco. But investors stopped rewarding mining Bosses for bold mental leaps back when the commodities cycle turned.
BHP Billiton: imperial overstretch: BHP Billiton, the world’s largest mining company, is on a slightly different historical scale from Rome. Even so, it is an empire whose vastness has become a problem; it trades at a nasty conglomerate discount. So on Tuesday, it announced plans to demerge assets that it cannot manage properly into a separate listed entity. These assets – should investors approve the split – would include the two biggest silver and manganese mines on earth; span four continents; and have a market capitalisation of perhaps $15 billion. BHP’s U.K. shares fell 4% following the announcement. Investors might be annoyed for short-term reasons. Some in the U.K. may not – under investing mandates – be able to hold on to Australia- and South Africa-listed spin-off paper. Others will be unhappy that BHP is not buying back more of their shares. A promise to “extend our strong record of capital management” at half year results in February became a weaker “return excess cash to shareholders in the most efficient way” by the full year on Tuesday.
BHP Billiton leaves London off list of suitable homes for its big new baby: The world’s biggest new mining company, a $14 billion giant trading on three continents, will not be listing in London because Britain’s stock exchange is too expensive.
Only the spinof, I believe. Said to be too small for the FTSE100. Keep the Big Dog, sell the Pup? Might be an offer for the Pup, IMO.
Down 5% after the proposed de-merger and unimpressive dividend increase. The de-merger doesn't change anything in the immediate future. We will still own the whole lot and add another layer of overheads plus a new and more awkward quoted structure. As a UK shareholder I doubt that I'd want to hold the new company as it is only planned to be quoted in Australia. Disclosure: I hold BLT
Expecting a ~2% bounce this afternoon.
uy BHP Billiton’s dividend income: BHP Billiton, the world’s largest mining group, is detailing plans to demerge assets and increase returns to shareholders. The Anglo-Australian miner, which was formed through the merger of BHP and Billiton, is now planning to unpick part of that 2001 deal. Out goes a lot of the Billiton parts, including aluminium, nickel and manganese mining assets, with the company keeping its iron ore, copper, coal, petroleum and potash businesses. The impact of the demerger on the group is easily manageable. The mining giant’s market capitalisation is currently £118 billion, while the value of the demerged assets is estimated at around $14 billion (£8.4 billion), or 7% of the whole group. Following the demerger, BHP Billiton will become a more focused group, generating about 48% of profits from iron ore, 28% from petroleum, 22% from copper and 2% from coal, based on Questor’s estimates. The company is reliant on the value of iron ore for profits and China, the world’s largest user, is the largest driver of that price. The mining company has also increased production. This is part of a strategy across the industry. BHP Billiton and Rio Tinto have the lowest production costs in the world due to the size of their mines and can make profits at much lower prices than their rivals. They hope that this scorched earth tactic will push many smaller iron mines around the world out of business. Questor said on April 2 (Buy, £18.82) that BHP would increase cash returns to shareholders. The shares have risen 10% since then, easily beating the wider FTSE 100, which has remained largely flat. BHP Billiton at £20.67+17p. Questor Says “Buy”.
Good for investors , IMO. BTW, LKF, largest producer of Silver, as a byproduct of other mining activities - bit of Gold too.
Global mining giant BHP Billiton is on the verge of announcing a massive £8 billion demerger which effectively unties the great coming together of BHP and Billiton 13 years ago. The company confirmed overnight, in late trading in Australia , that an ongoing shakeup of the group which has already seen more than £3 billion of disposals in the last couple of years, will climax in a demerger of unwanted assets, mainly from the old Billiton part of the business. BHP Billiton, under Scottish geologist and former BP veteran Andrew Mackenzie, its chief executive of the last 15 months, has said it wants to focus on its global iron ore, copper, coal and petroleum interests which make up 85 per cent of group revenues - as well as diversify into potash. In a statement to the Australian stock market which subsequently sent its shares up 54 1/2p to £20.94 in London, the company said: “BHP Billiton has been simplifying its portfolio for over a decade and is pursuing options to make the company simpler and more productive. “We are actively studying the next phase of simplification. We believe that a portfolio focused on our major iron ore, copper, coal and petroleum assets would retain the benefits of diversification, generate stronger growth in cash flow and a superior return on investment. “By increasing our focus on these four pillars, with potash as a potential fifth, we will be able to more quickly improve the productivity and performance of our largest businesses. “The board has continued to study various structural alternatives including at its meeting this week. A demerger of a selection of assets is our preferred option.” It said further statements will be made after a board meeting next week. The assets to be offloaded are likely to include its interests in nickel, manganese and aluminum across Australia, South Africa and Columbia as well as BHP’s giant Cannington silver and lead mine in Queensland, Australia. The unwanted assets together are reckoned to have operating profits of about £550 million. Analysts speculated that the demerged company will be headquartered in Perth, primarily listed in Australia but would likely seek a listing in London, too. There was speculation in Sydney that Graham Kerr, BHP Billiton’s finance director, could head the spin-out. There has been previous speculation that rivals like Glencore Xstrata may have their eyes on various elements of the unwanted assets.
Wonder if I should we can to 2300p on a good earnings season in US starting in 10days time... 2000p... We may hear more about the possible split in next H1 earnings..
I have just read an article about the real possibility of splitting BHP from Biliton to give better rise to growth prospects since merger in 2001. http://m.europe.wsj.com/articles/SB10001424052702304157204579475192557876688?mobile=y
BHP Billiton: Goldman Sachs cuts target price from 1850p to 1820p and maintains a neutral rating.