BHP Group: OD expansion set for another reboot By Adrian Prendergast 20 October 2020, 2:58 PM BHP has shelved the most recent plan to expand Olympic Dam (BFX), with subsurface drilling in the southern mining area failing to confirm results from earlier surface drilling. The reality is copper assets are hard to come by, and when combined with BHP’s history at Olympic Dam, we do not believe BHP will suddenly take a ruthless approach to the big mine’s position in its portfolio despite its long-held poor performance and low potential for improved returns. This leaves us somewhat confused on BHP’s overarching strategy of “value over volume”. Read more...
Rio Tinto - Doing the hard yards in ESG By Adrian Prendergast 19 October 2020, 12:00 AM RIO posted a mixed 3Q20 result, with iron ore shipments trailing our estimates while mined copper was ahead of expectations. Read more...
BHP Group: Moves counter-cyclically By Adrian Prendergast 28 October 2020, 12:00 AM BHP is acquiring an increased stake in Shenzi in Gulf of Mexico for US$505m. Adds 52mmboe of reserve (2P+2C) and ~11kboepd to production. Hess needed to divest the stake to fund development elsewhere, with earnings depressed. BHP is taking advantage of the cycle with an opportunistic value accretive bolt-on acquisition, taking its interest in Shenzi to 72%. We maintain our Hold rating with a revised target price (login to view target price). Opp... Read more...
Video: AGL Energy (ASX:AGL) and Origin Energy (ASX:ORG), Max Vickerson, Analyst By Max Vickerson 29 September 2020, 10:00 AM I provide an update on the implications for AGL Energy (ASX:AGL) and Origin Energy (ASX:ORG) with respect to the federal governments potential intervention in the electricity market. Read more...
BHP Group: Starting to make some moves By Adrian Prendergast 20 August 2020, 8:51 AM Another strong year for BHP, with strong iron ore prices and capital discipline again combining for a healthy result, albeit just short of expectations. Read more...
Rio Tinto – Iron ore drives first half By Adrian Prendergast 30 July 2020, 9:00 AM 1H20 result was ahead of consensus estimates, with ongoing iron ore strength helping Rio Tinto (ASX:RIO) to plug a gap left by lower aluminium and copper prices. We downgrade to a Hold rating on recent share price strength, while still considering RIO a core holding for a wide group of investor types. Read more...
Rio Tinto - Approaching strategy crossroads By Adrian Prendergast 21 July 2020, 10:38 AM A good first half from Rio Tinto (ASX:RIO) overall, with solid volumes vs soft metal prices. Iron ore makes up 80% of EBITDA, but won't always be this strong. Does RIO use the opportunity to change its business? Read more...
Woodside Petroleum - A difficult path to deviate from By Adrian Prendergast 16 July 2020, 11:55 AM Along with its June quarter result, Woodside Petroleum (ASX:WPL) flagged impairments at its upcoming August result. Overall we saw a better Q2 result than expected, albeit realised LNG prices plummeted. As a result. we maintain our Hold rating on WPL. Read more...
Rio Tinto - In great shape in uncertain times By Adrian Prendergast 14 July 2020, 2:40 PM In this blog, I review my position ahead of the up coming June quarter result and half year earnings result. We maintain our ADD position, with a revised price target. Read more...
Metals & Mining: Iron ore could re-test US$120/t By Adrian Prendergast 21 May 2020, 11:30 AM Already positive iron ore fundamentals continue to improve, gaining support from global supply that is failing to keep pace with resilient consumption. Read more...