The Southwood Group BHP Continues Restructuring.

The Southwood Group's picture
Printer-friendly versionPrinter-friendly versionPDF versionPDF version

The Southwood Group has been closely monitoring the world’s largest mining company, BHP Billiton Ltd, as the company continues to simplify its portfolio, focusing efforts on iron ore, copper, coal and petroleum.


Hong Kong April 30, 2014 - (PressReleasePoint) -
Both BHP Billiton Ltd and Rio Tinto Group Ltd, the number one and two largest mining concerns in the world, have been disposing of their global assets as the two mining companies place renewed focus on their most profitable operations to remedy the effects of the decline in a decade-long boom in metal prices. BHP announced in March of 2013 that it intended to sell 10 major assets even as $48 billion of mines and businesses went on sale worldwide.
 
On the table for BHP at present includes the options to spin off nearly all of the mining giant’s  aluminium, nickel and bauxite, the ore from which aluminium is sourced, production assets in a deal conservatively valued at some $19 billion. Without directly addressing the opportunity of possible spinoffs of the assets, BHP has simply stated that its ongoing process of simplification is the company’s priority.
 
“If not for the mining boom that was driven by incredibly heightened demand from China then BHP and a lot of other large mining companies would have placed little value on retaining these lower returning assets within their business structures, so it was simply delaying the inevitable so far as the ucoming sales are concerned,” advised Franz Kroeger, Global Market Strategist at The Southwood Group.
 
In the two years since 2012, BHP Billiton Ltd has conducted asset sales totaling $5.2 billion in value including large item divestitures such as the 2013 sale of its Pinto Valley copper mine in the U.S for $650 million to Canadian Capstone Mining Corp, following on from the sale of a Canadian diamond mine and both an Australian uranium project as well as a stake in the country’s Browse basin natural gas field. BHP saw its share rise 1.6% to AUD $37.05 in Sydney, with the shares having dropped 2.5% over the course of this year.
 
“The most likely outcome for many of the listed assets being off sold will be a phased wind down ahead of a mothballing until we see a pickup in their respective commodities markets, a process that might be as short as 24 months, but the savings for that period to the likes of BHP make this worthwhile and allows the company to free up capital to pursue more profitable ventures in the meantime,” concluded Franz Kroeger, Global Market Strategist at The Southwood Group.
 
As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.

The Southwood Group hopes to enhance even more its capability and reputation as a provider of success-driven service to its clients.
Both BHP Billiton Ltd and Rio Tinto Group Ltd, the number one and two largest mining concerns in the world, have been disposing of their global assets as the two mining companies place renewed focus on their most profitable operations to remedy the effects of the decline in a decade-long boom in metal prices. BHP announced in March of 2013 that it intended to sell 10 major assets even as $48 billion of mines and businesses went on sale worldwide.
 
On the table for BHP at present includes the options to spin off nearly all of the mining giant’s  aluminium, nickel and bauxite, the ore from which aluminium is sourced, production assets in a deal conservatively valued at some $19 billion. Without directly addressing the opportunity of possible spinoffs of the assets, BHP has simply stated that its ongoing process of simplification is the company’s priority.
 
“If not for the mining boom that was driven by incredibly heightened demand from China then BHP and a lot of other large mining companies would have placed little value on retaining these lower returning assets within their business structures, so it was simply delaying the inevitable so far as the ucoming sales are concerned,” advised Franz Kroeger, Global Market Strategist at The Southwood Group.
 
In the two years since 2012, BHP Billiton Ltd has conducted asset sales totaling $5.2 billion in value including large item divestitures such as the 2013 sale of its Pinto Valley copper mine in the U.S for $650 million to Canadian Capstone Mining Corp, following on from the sale of a Canadian diamond mine and both an Australian uranium project as well as a stake in the country’s Browse basin natural gas field. BHP saw its share rise 1.6% to AUD $37.05 in Sydney, with the shares having dropped 2.5% over the course of this year.
 
“The most likely outcome for many of the listed assets being off sold will be a phased wind down ahead of a mothballing until we see a pickup in their respective commodities markets, a process that might be as short as 24 months, but the savings for that period to the likes of BHP make this worthwhile and allows the company to free up capital to pursue more profitable ventures in the meantime,” concluded Franz Kroeger, Global Market Strategist at The Southwood Group.
 
As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.

The Southwood Group hopes to enhance even more its capability and reputation as a provider of success-driven service to its clients.


Press Contact:
Albert Miller
16 Chater Road,
Hong Kong
852 5808 3180
http://www.thesouthwoodgroup.com
********@**b**.com
Email partially hidden to block spam. Please use the contact form here.
Contact Albert Miller
Email the contact person for this press release. Do not send spam or irrelevant message.
1 + 6 =


Copy this html code to your website/blog to embed this press release.

Comments

Post new comment

5 + 0 =