No pleasing some investors BHP’s profits may have hit a five-year high on the back of a spike in the surge of iron ore prices to more than six-year highs, helping boost the payout to shareholders to record levels, but the shares fell to their lowest level since February at one stage.
More EVs and more nickel in each of them will drive nickel demand through the roof, says the head of BHP’s Nickel West arm. His forecast is great news for those juniors with large nickel deposits awaiting development, such as the Jaguar project just acquired by Centaurus from Brazilian giant Vale.
Iron ore prices have tumbled again, losing more than 4% on Wednesday and yet investors in Australia were sanguine and ignored the slide when a week ago they were selling off the shares of the big miners with alacrity.
The company has presented a 10-20 year vision, acknowledging the world is changing and that BHP Group needs to change as well. The company envisages electrification and decarbonisation the two dominant themes evolving over the medium-long-term.
Macquarie analysts have scaled back total shipment projections for the final quarter of 2018, but the analysts also see how buoyant iron ore prices continue to drive positive earnings momentum for producers in Australia.