Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

BHP Billiton: City broker awaits project news amid falling prices and rising costs

BHP Billiton: City broker awaits project news amid falling prices and rising costs

With BHP Billiton’s (LON:BLT) full year results likely to show falling prices and rising costs, just like its mining peers, analysts at RBC Capital says it is looking for signs whether the FTSE’s largest miner may drop shelve new projects.

“Having already addressed the market’s concerns over writedowns of its shale business, focus will now be turned to BHP’s capex plans and whether any of its large projects will be deferred in light of weak market conditions,” RBC analyst Des Kilalea said in a note.

In particular he says he's looking for comments about ‘mega projects’ in Billiton’s pipeline like the Outer Harbour, Olympic Dam and Jansen Potash, as well as plans for a disposal of Billiton’s diamond business.

That said, Kilalea reckons Billiton continues to offer an attractive yield and diversification in a tough market. As such the analyst repeated an ‘outperform’ rating and a £23.00 price target for the heavyweight mining stock.

RBC is forecasting revenues of US$70.8 billion for the twelve month period, with earnings of US$32.6 billion – both forecasts are slightly below consensus.

The broker expects Billiton’s iron ore business to have improved on last year, while base metals and coal businesses are expected to have been weaker.

Billiton’s results are due for release on Wednesday 22 August.

 

Jamie_55a91591db06b.jpg


Register here to be notified of future BLT Company articles
View full BLT profile

BHP Billiton plc Timeline

Related Articles

Lithium-battery.jpg
November 28 2016
MGX Minerals has a suite of promising magnesium and lithium projects in Western Canada
career-544952_1280.jpg
November 03 2016
Rainmaker Resources shares soared by 22% on Thursday after the company said its first exploration target technical report for the Sarcobatus Flat lithium project in Nevada indicated very positive exploration potential exists on the property, with high lithium content and a geologic setting similar to that of nearby producing Lithium brine deposits
Signpost for Nevada
September 19 2016
The focus recently has been on mining hotspot Nevada, USA, where Sunrise has two industrial minerals projects

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.