BHP Half Year Results

[Steveam]

BHP Half year results

https://www.bhp.com/-/media/documents/media/reports-and-presentations/2024/240220_bhpresultsforthehalfyearended31dec2023_exchangerelease.pdf

Div payable 28-March 2024 USD0.72

Best wishes,

Steve

Moderator Message:
This post has been edited (twice!) to include the correct set of results. Please report any residual errors, and we will fix them. -- MDW1954

[monabri]

Previous corresponding Half Year dividend 90 US Cents so a 20% reduction.

[funduffer]

Previous corresponding Half Year dividend 90 US Cents so a 20% reduction.

If you own a miner, you have to accept it is a cyclical business.

FD

[Dod101]

Previous corresponding Half Year dividend 90 US Cents so a 20% reduction.

If you own a miner, you have to accept it is a cyclical business.

FD

But these results are nothing to do with business cycles. The huge reduction in profit is caused by impairments, in W Australia Nickel and the Samarco dam failure.

Dod

[onslow]

However Dod you could say BHP does have a cycle of large impairments every few years

[Arborbridge]

If you own a miner, you have to accept it is a cyclical business.

FD

But these results are nothing to do with business cycles. The huge reduction in profit is caused by impairments, in W Australia Nickel and the Samarco dam failure.

Dod

Nevertheless, this type of company used to be branded (a long time ago now!) by HYPers as a "nasty cyclical" and best avoided.

[Dod101]

Like house builders, I prefer to avoid miners.

Dod

[G3lc]

RIO has been very good for me over many years as have PSN and TW, but then I tend to look long term.

[tjh290633]

Like house builders, I prefer to avoid miners.

Dod

That would be because of the risk of subsidence. Both can be the results of holes in the ground, and of holes in the cash flow.

That said, it tends to average out at a reasonable level.

TJH

[daveh]

If you own a miner, you have to accept it is a cyclical business.

FD

But these results are nothing to do with business cycles. The huge reduction in profit is caused by impairments, in W Australia Nickel and the Samarco dam failure.

Dod

But isn't the impairment for nickel (like for S32 whose results were a lot worse) due to the massive fall in the price of nickel on the world market? So due to the business cycle. The nickel impairment is presumably non-cash, just down to a reduction in the carrying value of the nickel business in the accounts. The impairment due to the Sanmarco dam failure however is real cash that is being paid to undo the damage done to the local people and environment and for possible fines.

BHP has done reasonably well for me showing an ~100% gain. Its paid out dividends almost equal to the cost of the shares and is showing a capital gain too so the dividend isn't being paid out of capital (unlike some of my holdings).

[Dod101]

Yes. I was probably being careless re the impairment re the WA Nickel. Apologies.

Dod

[scrumpyjack]

Like house builders, I prefer to avoid miners.

Dod

I don't mind cyclical businesses. BHP and Rio have been real cash cows over the years and the SPs are well over double cost. The same is true even more so for Barratt and Persimmon. Both RIO and BHP are very low cost producers so tend to be profitable all the way through the cycle.

Very happy to continue to hold all of those

ps just checked and my average return on those 4 is 281% profit. ie dividends and current value is 3.81 times cost.

[monabri]

I hold RIO and BHP...without wishing to tempt fate, I'm pleased with the total returns.