BHP Group (BHP)

[idpickering]

In the interests of openness and honesty towards my fellow Fools here, and in keeping with my fickle mind, I have to say that I sold out of BHP Group an hour ago. To be honest, I feel better for having done so. The released monies were invested in Rio Tinto and Persimmon.

Ian.

[Darka]

In the interests of openness and honesty towards my fellow Fools here, and in keeping with my fickle mind, I have to say that I sold out of BHP Group an hour ago. To be honest, I feel better for having done so. The released monies were invested in Rio Tinto and Persimmon.

Ian.

Hi Ian,

Just curious as to why? Was it just the move to become an Australian company, or for other reasons?

regards,
Darka

[Arborbridge]

In the interests of openness and honesty towards my fellow Fools here, and in keeping with my fickle mind, I have to say that I sold out of BHP Group an hour ago. To be honest, I feel better for having done so. The released monies were invested in Rio Tinto and Persimmon.

Ian.

Interesting, after the last missive from you yesterday - though you conversation was tinted with uncertainty.
So you are taking a hit on income, but I suspect that will be subsumed in other changes this year.

I wonder if holding BHP in a HYP is actually outside the HYP rules? Not too clear on that one, but I think may be.

Pyad...over to you for comment.

Moderator Message:
If this question does get discussed please do it on the dedicated board. Thanks - Chris

Arb.

[idpickering]

In the interests of openness and honesty towards my fellow Fools here, and in keeping with my fickle mind, I have to say that I sold out of BHP Group an hour ago. To be honest, I feel better for having done so. The released monies were invested in Rio Tinto and Persimmon.

Ian.

Hi Ian,

Just curious as to why? Was it just the move to become an Australian company, or for other reasons?

regards,
Darka

Thanks for your input. For me, I wasn't keen on holding a share who's primary listing etc was based in Australia, and for the size of BHP, not listed in at least the upper FTSE index. Maybe I'm wrong, but as I said, I feel better for selling out. I don't like uncertainty, although I grant that they've been very transparent in their actions, and the reasons for doing what they're doing too.

Ian.

[idpickering]

Unification scheme becomes effective

On 25 January 2022, BHP announced that the UK Court had sanctioned the BHP Group Plc (Plc) scheme of arrangement (the Plc Scheme) to effect the unification of BHP's corporate structure. BHP is pleased to confirm that the Plc Scheme became effective at approximately 9:00pm (GMT) on 28 January 2022 in accordance with its terms and the entire issued and to be issued share capital of Plc will be owned by BHP Group Limited (Limited).

Plc Shareholders will receive one New Limited Share for each Plc Share they held at 9:00pm (GMT) on 28 January 2022. A Plc ADS Holder will receive one New Limited ADS for each Plc ADS they hold at 9:30am (EST) on 31 January 2022.

Plc Shareholders will receive New Limited Shares (or an equivalent interest) according to the way in which they held their Plc Shares. Further details and relevant definitions are set out in the Shareholder Circular that was published by BHP on 8 December 2021.

Admission of New Limited Shares and New Limited ADSs to the ASX, JSE and NYSE

The following steps will now occur for implementation of unification:

·New Limited Shares will commence trading on the ASX on a deferred settlement basis under the ticker "BHPN" with effect from 10:00am (AEDT) today, 31 January 2022;

·Limited Shares, including New Limited Shares, will be admitted to the JSE under the ticker "BHG" with effect from 9:00am (SAST) on 31 January 2022;

·Limited Shares, including New Limited Shares, will be admitted to the standard listing segment of the FCA Official List and to trading on the Main Market of the LSE under the ticker "BHP" with trading commencing on the LSE with effect from 8:00am (GMT) on 31 January 2022; and

·New Limited ADSs will be admitted to trading on the NYSE under the ticker "BHP" with trading expected to commence with effect from 9:30am (EST) on 31 January 2022.

Normal trading in New Limited Shares on the ASX under the ticker "BHP" is expected to commence at 10:00am (AEDT) on 2 February 2022.

https://www.investegate.co.uk/bhp-group ... 00060639A/

[Bouleversee]

Has anyone sussed out what the following means exactly? I tried to find it on their circular but the print was too small and faint on my laptop and I gave up.

"Plc Shareholders will receive New Limited Shares (or an equivalent interest) according to the way in which they held their Plc Shares. Further details and relevant definitions are set out in the Shareholder Circular that was published by BHP on 8 December 2021."

[tjh290633]

Lorna, have a look at https://www.bhp.com/news/media-centre/r ... rrangement on their website.

Unification is expected to complete by 31 January 2022 (Melbourne time). To effect unification, Plc Shares and Plc ADSs will be exchanged for Limited Shares and Limited ADSs (respectively) on a one for one basis. BHP Group Limited will become the sole parent company of the BHP Group.

The last time and date for dealings in, and for the registration of transfers of, Plc Shares on the JSE will be 5:00pm (SAST) on 28 January 2022 and on the LSE will be 6:00pm (GMT) on 28 January 2022. The last time and date for dealings in, and for the registration of transfers of, Plc ADSs on the NYSE will be 4:00pm (EST) on 28 January 2022.

The new Limited Shares and the Limited ADSs are expected to be admitted to trading on the ASX, LSE, JSE and the NYSE (as applicable) on 31 January 2022. The existing Limited Shares that are listed and traded on the ASX will also be admitted to trading on the LSE and JSE.

Applications have been made for the de-listing of Plc Shares from the premium listing segment of the Official List of the FCA and the cancellation of the admission to trading of Plc Shares on the Main Market of the LSE.

Subject to the Plc Scheme becoming effective, it is expected that such de-listing and cancellation will take effect at 8:00am (GMT) on 31 January 2022. Trading in Plc Shares on the JSE is expected to be suspended from 9:00am (SAST) on 31 January 2022 and Plc’s listing on the JSE is expected to be cancelled at 9:00am (SAST) on 4 February 2022. Dealings in Plc ADSs on the NYSE are expected to be formally halted before markets open (EST) on 31 January 2022.

The detailed timetable as set out in the Shareholder Circular published by BHP on 8 December 2021 remains unchanged.

Does that help?

TJH

[Bouleversee]

It does, thanks.

[idpickering]

BHP RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2021

Keeping our people and communities safe
 We achieved our third consecutive year fatality free.
 Our focus on safety and health has helped us to mitigate the impacts of COVID-19 and deliver continued strong
operational performance.
Margin of 64%, higher realised prices, disciplined cost performance and near record production at Western
Australia Iron Ore (WAIO)
• Profit from operations of US$14.8 billion, up 50%. Underlying EBITDA(i) of US$18.5 billion at a margin(i) of 64% for
continuing operations. Disciplined cost performance, with unit cost guidance reiterated (at guidance exchange
rates(ii)) with the exception of Queensland Coal which has increased, reflecting lower expected volumes for the full
year as a result of significant wet weather and labour constraints.
• Attributable profit of US$9.4 billion and Underlying attributable profit(i) of US$10.7 billion up 77% from the prior period
for total operations.
 Net operating cash flow of US$11.5 billion and free cash flow(i) of US$8.5 billion for continuing operations reflects
higher realised prices across our major commodities and reliable operational performance.
Disciplined capital allocation and a revised net debt target to between US$5 and US$15 billion
 Capital and exploration expenditure(i) of US$2.9 billion for continuing operations. Guidance for minerals capital and
exploration expenditure for the full year has decreased by US$0.2 billion to US$6.5 billion as a result of favourable
exchange rate movements.
 Our potash developments are tracking to plan. The Jansen shaft project is 98% complete and the Jansen Stage 1
project has commenced contract awards.
 We have added to our early stage growth options in future facing commodities by executing agreements for interests
in additional Australian copper projects in October 2021, including the Elliott project in the Northern Territory, and
investing in the Kabanga Nickel Project in Tanzania in December 2021.
 Our commitment to a strong balance sheet remains. We have revised our net debt target range to between US$5
and US$15 billion. The revised range will support a resilient balance sheet and retain the flexibility to allocate capital
towards shareholder returns and future organic and inorganic investment opportunities. Net debt(i) at 31 December
2021 was US$6.1 billion.
Value and returns: Record interim dividend of US$1.50 per share and Underlying ROCE up to 39.5%
 We will pay a record interim dividend of US$1.50 per share or US$7.6 billion, equivalent to a 78% payout ratio(iii)
.
 Underlying return on capital employed(i) strengthened further to 39.5% for total operations.
Strategic actions progressing to plan
 In January 2022, BHP completed the unification of BHP’s dual listed corporate structure.
 The Cerrejón divestment to Glencore completed in January 2022 and the announced share sale agreement to divest
BHP Mitsui Coal (BMC) is expected to complete in the middle of the 2022 calendar year. The review process for
New South Wales Energy Coal (NSWEC) is progressing, in line with the two-year timeframe we set last year.
 Completion of the proposed merger of our Petroleum business with Woodside is expected in the June 2022 quarter
subject to satisfaction of conditions precedent including approval by Woodside shareholders

And later;

Dividends
• We will pay a record interim dividend of US$1.50 per share or US$7.6 billion, including an additional amount of
US$2.7 billion above the minimum payout policy. This is equivalent to a 78 per cent payout ratio(iii) (31 December
2020: 85 per cent).
• We have consistently delivered high cash returns, with more than US$22 billion of total announced returns to
shareholders over the last 18 months.

Dividends paid during the period differs from the amount of dividends paid in the Cash Flow Statement as a result of
foreign exchange gains and losses relating to the timing of equity distributions between the record date and the payment
date. An additional derivative settlement of US$98 million was made as part of the funding of the final dividend and is
disclosed in Proceeds/(settlements) of cash management related instruments in the Cash Flow Statement.
On 2 December 2021, BHP announced a final Board decision to unify BHP’s corporate structure under its existing
Australian parent company, BHP Group Limited which was approved on the 20 January 2022 by BHP Group Limited
and BHP Group Plc shareholders and completed on 31 January 2022 (‘Unification’). Refer note 9 ‘Share capital’ for
further details on Unification.
Prior to the Unification, the Dual Listed Company merger terms required that ordinary shareholders of BHP Group
Limited and BHP Group Plc are paid equal cash dividends on a per share basis.
Each American Depositary Share (ADS) represents two ordinary shares of BHP Group Limited. Dividends determined
on each ADS represent twice the dividend determined on BHP ordinary shares.
Dividends are determined after period-end and contained within the announcement of the results for the period. Interim
dividends are determined in February and paid in March. Final dividends are determined in August and paid in
September. Dividends determined are not recorded as a liability at the end of the period to which they relate. Subsequent
to the half year, on 15 February 2022, BHP Group Limited determined an interim ordinary dividend of 150 US cents per
share (US$7,593 million), which will be paid on 28 March 2022. Prior to Unification, an ordinary dividend was determined
by both BHP Group Limited and BHP Group Plc (31 December 2020: interim dividend of 101 US cents per share –
US$5,107 million; 30 June 2021: final dividend of 200 US cents per share – US$10,114 million).
BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent.

https://www.investegate.co.uk/bhp-group ... 00016553B/

[idpickering]

For ease of reference, here's the RNS re the above;

https://www.investegate.co.uk/bhp-group ... 00016553B/

And;

BHP Interim Results Presentation

https://www.investegate.co.uk/bhp-group ... 00016556B/

Amendments to Dividend Reinvestment Plan

https://www.investegate.co.uk/bhp-group ... 00016557B/

Ian.

[idpickering]

Heads up. BHP CEO being interviewed on Bloomberg tv soon.

Ian.

[Darka]

Heads up. BHP CEO being interviewed on Bloomberg tv soon.

Ian.

Thank you Ian,

One of my best shares with another good set of results!

regards,
Darka

[idpickering]

Thank you Ian,

One of my best shares with another good set of results!

regards,
Darka

You're welcome, and thank you too for your support on these boards.

As for BHP, tbh I don't regret my recent sale of my holdings, and am not looking at buying back into BHP. I'm happy with just holding Rio Tinto in the sector, although I get that the two miners have their differences. I'm not saying never re BHP though, but am not looking to buy them currently. I'd rather they featured in the FSE100, again, tbh. That may well be me being a bit short-sighted (or dim lol) as to caring about wherever they're listed maybe?

Ian.

[Darka]

You're welcome, and thank you too for your support on these boards.

As for BHP, tbh I don't regret my recent sale of my holdings, and am not looking at buying back into BHP. I'm happy with just holding Rio Tinto in the sector, although I get that the two miners have their differences. I'm not saying never re BHP though, but am not looking to buy them currently. I'd rather they featured in the FSE100, again, tbh. That may well be me being a bit short-sighted (or dim lol) as to caring about wherever they're listed maybe?

Ian.

I hold RIO too and am happy to do so, I'm trying hard to be more hands off however but that's not always easy to do.

[idpickering]

Notice of Dividend Currency Exchange Rates

On 15 February 2022, the Board of BHP determined to pay an interim dividend of 150 US cents per share for the half year ended 31 December 2021. Currency conversions are based on foreign currency exchange rates on a single day or an average for a period of days ending on or before the Record Date.

For the 2022 interim dividend: (i) the Australian dollar currency conversion will be based on the average rate over a five day period commencing on 21 February 2022 and ending on 25 February 2022; (ii) the UK pounds sterling currency conversion will be based on the average rate over a two day period commencing on 24 February 2022 and ending on 25 February 2022; (iii) the New Zealand dollar currency conversion will be based on the rate on 25 February 2022; and (iv) the South African rand currency conversion will be based on the average rate over a two day period commencing on 17 February 2022 and ending on 18 February 2022[1] .

The following table sets out the currency exchange rates applicable for the interim dividend:

British pence 112.380596p per share.

https://www.investegate.co.uk/bhp-group ... 00059461C/

Ian.

[idpickering]

Correction of Dividend Currency Exchange Rate.

BHP refers to the exchange announcement titled Notice of Dividend Currency Exchange Rates dated 28 February 2022.

The Australian dollar currency conversion rate for BHP's 2022 interim dividend was incorrectly stated as 0.720906. The correct conversion rate is 0.720960.

The following table sets out the currency exchange rates applicable for the interim dividend:

UK div is 112.380596p ps.

Ian.

[lansdown]

BHP Group (BHP) and Woodside Petroleum Ltd (Woodside) entered into a share sale agreement (SSA) for the merger of BHP's oil and gas portfolio with Woodside by an all-stock merger (Merger) on 22 November 2021. On completion of the Merger, the combined company is expected to have a high margin oil portfolio, long life LNG assets and the financial resilience to help supply the energy needed for global growth and development over the energy transition.

Woodside has today published an explanatory memorandum and notice of meeting for the Woodside shareholder vote scheduled for 19 May 2022. Woodside has also released the Independent Expert's Report prepared for Woodside shareholders, which has concluded that the Merger is in the best interests of Woodside shareholders, in the absence of a superior proposal.

This announcement contains information relevant for BHP shareholders in respect of the Merger and the proposed in specie dividend of Woodside ordinary shares (Woodside Shares) to BHP shareholders.

https://www.investegate.co.uk/bhp-group-limited--bhp-/rns/merger-update-and-woodside-share-distribution/202204080700027719H/

Highlights

· Completion of the Merger is on track and is targeted for 1 June 2022, subject to satisfaction of conditions precedent including approval by Woodside shareholders.

· BHP is expected to receive 914.8 million newly issued Woodside Shares at completion and determine a fully franked in specie dividend of the Woodside Shares to BHP shareholders.

· BHP shareholders are expected to be entitled to one Woodside Share for every 5.5340 BHP shares they hold on the Record Date.

· Based on Woodside's share price of US$25.55 at 6 April 2022, the implied value of BHP Petroleum is US$23.4 billion. At this valuation, which is subject to change, the in specie dividend would be US$4.62 with US$1.98 of franking credits being distributed per BHP share (US$10.0 billion of franking credits in total).

· Woodside will retain its primary listing on the ASX and is seeking a standard listing on the LSE and a sponsored Level III ADR program on the NYSE from completion of the Merger.

· A share sale facility will be in place for eligible small BHP shareholders who elect to participate, and for shareholders who are ineligible to receive Woodside Shares.

Moderator Message:
Announcement link added, courtesy of poster idpickering. Thanks, Ian. --MDW1954

[idpickering]

BHP Sees 8% Drop in Iron Ore Exports Amid Logistical Issues.

BHP Group, the world’s biggest mining company, reported quarterly iron ore shipments fell 8% from the previous three months as production was affected by coronavirus-related manpower issues and planned maintenance. Total iron ore sales from its Western Australia operations were 67.1 million tons in the three months to March 31, BHP said Thursday in a statement, meeting a median forecast of 67.2 million tons among five analysts. Full-year guidance for attributable output was held at a range of 249 million tons to 259 million tons, although the company cut forecasts for copper and nickel production. BHP said the lower volumes from its Western Australian iron ore operations reflected “temporary labor constraints due to Covid-19, train driver shortages and planned maintenance activities.”

Read more at: https://www.bloombergquint.com/markets/ ... l-problems
Copyright © BloombergQuint,

[idpickering]

Here's the RNS in relation to the above;

Operational Review nine months ended 31 March 2022.

https://www.investegate.co.uk/bhp-group ... 00048244I/

Ian.

[Darka]

BHP and Woodside Petroleum

I like BHP and although volatile I aim to keep them, I'm just not too happy about the merger with Woodside Petroleum and ending up with shares in a company that I didn't plan to own whether they get a London listing or not.

So, I'm can't decide what to do, selling the Woodside shares would seem to be a better open (and either buying more BHP, or increasing my Investment Trusts) - the hassle of dealing with such corporate events is one of the reasons I prefer IT's....

Anyway, just wondering whether any of you have already decided what to do with your Woodside shares?