BHP the giant Australia-based mining company is updated and rates Speculative Strong Buy. The best way to buy it is to buy the BBL shares(technically American Depository Receipts) in New York that (weirdly) give you two shares for each BBL at $54.52. BHP’s main product is iron ore and 65% of its revenues came from China. BHP has 13 major mines mostly in Australian and South America. It also has 5 petroleum production operations (mostly offshore).
BHP is an inherently volatile stock as commodity prices change. It pays out a minimum of half of tis adjusted earnings as a dividend. The dividend varies up and down but has been surprisingly high overall. The stock looks attractive at this price and may be particularly of those interested in mining and/or looking to diversify in that direction.
BHP has one major Canadian mine: the Jansen Potash mine that it has been developing since about 2010 but which will not begin production until 2027. Jansen is a huge boost for Saskatchewan with a $7.5 billion investment over the next six years and then ongoing operations. BHP has already spent some $5.6 billion on Jansen to date. This is a big investment for BHP. But Canada will remain a small part of BHP’s operations considering it has U.S. $109 billion in assets. In addition, BHP is in the process of buying a relatively small mining company Noront Resources Ltd. for about $450 million Canadian which is not a particularly material investment for BHP.