On Wednesday, RBC Capital maintained its Sector Perform rating and AUD45.00 price target for mining giant BHP Billiton (NYSE:BBL) Ltd. (BHP:AU) (NYSE: BHP) stock. The firm's position follows BHP's announcement of a fiscal year 2024 performance that surpassed expectations, particularly in terms of net profit after tax (NPAT) and net debt figures.
BHP's major projects, including Jansen, WAIO, and Escondida, are reportedly progressing on schedule. The company's forecast for fiscal year 2025 suggests a 2-3% growth in copper-equivalent production. BHP is also actively advancing its copper expansion initiatives, with further details emerging about operations in South Australia and Chile.
The strength of BHP's financials, characterized by a net debt of approximately $12 billion after dividends, is expected to continue underpinning its copper growth strategy. This includes strategic mergers and acquisitions, such as the Filo mining project. RBC's analysis has factored in the latest results, adjusting forecasts for fiscal years 2024, 2025, and 2026 by 4%, 1%, and 4% respectively.
The firm's reiterated price target of AUD45.00, equivalent to 2300 pence per share, reflects the continuation of the Sector Perform rating for BHP's stock. The assessment follows the company's recent financial disclosures and its strategic direction in the mining sector.
In other recent news, BHP Group (NYSE:BHP) has reported a slight 2% increase in its annual underlying profit, reaching $13.66 billion for the fiscal year ending June 30. This surge in profit is attributed to a record production of iron ore for the second consecutive year. However, the company declared a dividend of $0.74 per share, marking a decrease from the previous year's dividend of $0.80 per share.
In other developments, the union at BHP's Escondida copper mine in Chile has warned of a potential strike restart due to dissatisfaction with ongoing contract negotiations. This follows a recent work stoppage that had the potential to significantly impact the global copper supply.
Whitehaven Coal, after recently acquiring mines from BHP, has announced a reduction of 192 jobs at the Daunia and Blackwater coking coal mines. The job cuts mark a significant change in workforce following the acquisition.
BHP is also contemplating the sale of its copper and gold operations in Brazil, which were acquired through the company's takeover of Oz Minerals. This strategic move comes after BHP's recent decision to halt its efforts to acquire Anglo American (JO:AGLJ).
These are some of the recent developments involving BHP Group.
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