BHP is a major worldwide producer of aluminum, manganese alloy, and nickel. Its portfolio includes aluminum operations in southern Africa, Australia, and South America.
BHP is the world’s largest supplier of seaborne metallurgical coal. Its main customers are in China, India, Japan, and Europe. Its contracts are based on annual or longer-term volumes.
Copper production decreased by 3% to 389,000 tons in the September quarter in 2014—compared to the same period last year. This was due to a 3% decline in production at Escondida.
BHP announced the capacity expansion for iron ore from the current 250 million tons to 290 million tons by 2017. Capacity will increase only by making its existing operations more efficient.
Iron ore production increased by 17% in the September 2014 quarter. It had a record 57 million tons. Total iron ore production is forecast to increase by 11% in FY15.
BHP continues to prioritize value over volume. This dictates a focus on US onshore liquid development and investment in high-return Brownfield projects across the conventional business.
BHP’s petroleum and potash business includes conventional and unconventional oil and gas operations. The operations are located in six countries around the world.
Under equipment, the focus is on increasing availability, utilization, and rate. A 6% increase in utilization helped achieve a 9% increase in group production in FY14.
BHP Billiton (BHP) held a capital markets day in London on October 27. The presentation mainly focused on BHP’s iron ore and petroleum businesses.
BHP is one of the world’s largest major commodity producers. It operates through 100 locations in 25 countries. BHP was created when BHP and Billiton merged in June 2001.
BHP recorded a 9% production increase. Eight operations and four divisions achieved record quarterly production. Part of the increase was due to BHP’s focus on gains led by productivity.
Barrick Gold (ABX) is undertaking various cost cutting efforts. It’s aiming to reduce its debt burden and improve its liquidity in today’s low commodity price environment.
Lower gold prices will put pressure going forward on the cash flow and margins for Barrick Gold (ABX) and its peers. But despite the concerns, Barrick Gold (ABX) still has significant opportunities
Barrick Gold (ABX) is undertaking various cost-cutting efforts with an aim to reduce its debt burden and improve its liquidity in the current low-commodity price environment.
Although Barrick’s debt is being reduced given the low gold prices, the company’s debt is still a big concern. Its net debt to equity is the highest compared to its closest peers.
During the fourth quarter of 2013, Barrick Gold temporarily suspended construction of its Pascua-Lama project in Chile and Argentina over concerns of local groups regarding water contamination.
The results of prefeasibility studies for these projects could be significant positive catalysts for Barrick Gold (ABX) going forward.
The Zambian government is proposing to increase the royalty on open-pit mines to 20%, compared to 6% that Barrick Gold (ABX) is currently paying. If approved, this move will challenge the economic viability of the Lumwana mine.
Following the sales of Yilgarn South, Kanowna, and Plutonic assets in this division, Barrick’s gold production decreased by 41% in 3Q14.
Due to higher-than-expected production, AISC guidance has been reduced to $980 to $1,000 per ounce, from the previous $1,075 to $1,100 per ounce.