BHP - Astonishing result

[Daytr]

No there are far more shares issued than that.
$176Bln MC divided by say $34 = 5.17 Bln shares on issue & value equates to $9Bln.
Am I missing something?

Nice rally today mostly on China rate cut.
Looking to get short again here. ;-)

[Snow Leopard]

No there are far more shares issued than that.
$176Bln MC divided by say $34 = 5.17 Bln shares on issue & value equates to $9Bln.
Am I missing something?

Nice rally today mostly on China rate cut.
Looking to get short again here. ;-)

Half year report (plus commentary) says 5,317 Million on Page 43

Best Wishes
Paper Tiger

[macduffy]

Thanks for clearing that up - for me, Tiger.

[macduffy]

Here's the demerger proposal. Note that shareholders will retain their BHP shares and receive an equal number of shares in the new company.

http://www.bhpbilliton.com/home/inve...s/default.aspx

[Daytr]

So are they raising equity at the same time to put cash into the new company? Any dilution?
Cheers Daytr

[macduffy]

I havn't read the 196 page shareholders' circular in full either but it doesn't appear that South32 - or BHP -will be raising any new capital. Other sources suggest that South32 will not be overburdened by a disproportionate share of the current group's borrowings but of course, the new board will have its own ideas on future business developments and possibly acquisitions? I guess we'll have to wait and see but the demerger needs to be voted on first to become a reality. Most of the big insto shareholders are "said" to be warm to the proposal at this stage but are, naturally, not making any commitments at this stage.

I see that there will be a voluntary sale facility for South32 shares for shareholders holding less than 10,000 BHP shares. Which probably includes most of us! At this stage, I intend to keep mine - aluminium, nickel, zinc etc may make a comeback some time!

[Daytr]

Cheers Macduffy

[macduffy]

Deutsche Bank's view on South32's valuation.

http://www.afr.com/business/mining/d...0150401-1mcg20

[macduffy]

I wonder how much of the 23% increase in April's iron ore price will "stick"?

http://www.theage.com.au/business/mi...26-1mteaa.html

[macduffy]

According to an article in today's NZ Herald, the spin-off of South32 will be treated as a dividend in the hands of NZ shareholders of BHP to the extent of 70cps.

May be time to re-assess this company's suitability for my portfolio.

http://www.nzherald.co.nz/transtasma...ectid=11440027