BHP or RIO?
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BHP or RIO?
Im reading RIO (a lowest cost producer)has a sustainable yield over 7% and BHP has to borrow to pay a divv!!.This article below is suggesting the mkt is getting down there;am watching.
http://www.afr.com/business/mining/...-of-shares-to-fund-asset-buys-20160106-gm0pu3
RIO expects the mining downturn to deteriorate further this year.
http://www.ft.com/intl/cms/s/0/af7de...#axzz3xFa5aBzr
Feb 12 (Reuters) - Rio Tinto Ltd (RIO) :
- Rio Tinto 2015 full year results (RIO)
- FY underlying earnings $4.5 billion versus $9.31 billion a year ago
- Final dividend of 107.5 US cents per share
- Capital expenditure expected to be around $4.0 billion in 2016
- Continuing to target 20 to 30 per cent gearing ratio through the cycle.
- Underlying effective tax rate of approximately 27 to 30 per cent expected in 2016.
- Operating cash cost improvements (including exploration and evaluation savings) of $1 billion (pre-tax) expected in 2016
- Production guidance is unchanged from the fourth quarter operations review.
- Operating cash cost improvements additional goal of $1 billion (pre-tax) in 2017
- Net debt as at December 31, 2015 $13.78 billion versus $12.5 billion a year ago
- FY net loss $866 million versus net earnings of $6.53 billion a year ago
- Sees underlying effective tax rate of approximately 27 to 30 per cent expected in 2016
- Says "for 2016, we intend that the full year dividend will not be less than 110 US cents per share"
- Believes that maintaining the current progressive dividend policy would constrain the business
- Expects total cash returns to shareholders over longer term to be in range of 40 to 60 percent of underlying earnings in aggregate through the cycle
- Believes maintaining the current progressive dividend policy would act against shareholders' long-term interests
- Replacing the progressive dividend policy with a more flexible approach
- Low capital paths being pursued with spend focused around silvergrass and Oyu Tolgoi underground
- Rio TintoSales and marketing
" China’s steel industry is undergoing a structural change.
o Removal of less efficient steel-making capacity and strong demand is supporting steel pricing
and currently provides a robust backdrop for high quality iron ore.
Shipment guidance for 2018 remains unchanged at between 330 million and 340 million tonnes.
- Expected spending of ~$2.2 billion on replacement mines over the next three years including initial spending on the Koodaideri,
West Angelas and Robe Valley developments.
- Sustaining capital spending of ~$1 billion per year for the next three years in the Pilbara."
BHP , new $3.2 billion iron ore project too.
Looks like a good few years coming for M/S companies as the cycle enters an active up period. Holding MND indirectly, SRG and a few TPP. What are you into M/S wise.?
I'm feeling a little bit nervous about RIO
Attachment 10902
BHP confirms.
What's going to happen in the commodities sector? It looks like something will,to me.
I could be wrong of course but really looks like a bearish pattern to me.!
only 30 + hours to get your 2020 picks in .... about ONE DAY
just over two months ago I said
turned out being more of a double top but **** really has hit the extractor now.
Attachment 11100
Arrogant management ...somebody should blow up their HQ
Hope these Aberdeen people sell their shares
https://www.smh.com.au/business/comp...02-p54yqm.html