Stock in Focus: BHP Biliton

Analysts have upgraded the world's largest publicly traded mining conglomerate following currency fluctuations

Mathew Hodge 19 July, 2018 | 12:13PM
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BHP (BLT) is the world's largest publicly traded mining conglomerate and positioned at the centre of the China boom. The company values a strong balance sheet to provide some stability through the inevitable cycles and derives some modest benefit from commodity and geographic diversification, relative to its mining peers. Most revenue comes from assets in the relative safe havens of Australia, New Zealand, North America, and Europe.

BHP produces a range of commodities from oil and gas to nickel, and it is a major producer of iron ore, copper, thermal coal, and metallurgical coal. It produces both conventional oil and gas, as well as unconventionals from shale, onshore U.S. The onshore assets are likely to be divested in 2018. Much of the company's operations are in Australia, particularly the low cost iron ore business. BHP's assets are located close to key Asian markets, though relatively low shipping rates limit the benefit of proximity.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BHP Group PLC1,873.80 GBX-4.80Rating

About Author

Mathew Hodge  is Morningstar's director of equity research, Australia & New Zealand.

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