Top member reports
Company Report
Last edited 3 years ago
PerformanceCommunity EngagementCommunity Endorsement
ranked
#121
Performance (55m)
17.8% pa
Followed by
59
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Business Model/Strategy
stale
Last edited 3 years ago

Broken Hill Proprietary Company which evolved into BHP was founded on 16 July 1885. To put this into perspective this was 16 years before federation. 

How many companies founded in 130+ years ago are still in existence? Not many. How many over 100 years are in the ASX200. Quick someone build that list, I wish I knew, however suspect not more than a handful or possibly only BHP.

BHP business is in the natural resources business in Australia, Europe, China, Japan, India, South Korea, North America, South America, and internationally. It operates in Petroleum, Copper, Iron Ore, and Coal segments. The company engages in the exploration, development, and production of oil and gas properties, mining of copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal. It is also involved in mining, smelting, and refining of nickel. Basically, this is a broad spectrum, extremely well-executed mining EFT. 

Being an ETF (it is not), you don’t have to believe in all the sectors BHP play, just have faith management will continue to execute.

The company is currently dual listed in the UK and Australia, but this is in the process of being unwound with a single AU listing. There is also a massive petroleum demerger whic is expected to see a significant dividend outcome. Both are positive moves. 

In a new direction, BHP has recently approved a nearly $6B push into potash in Canada. Diversification continues.

If you are looking for mining exposure, and in reality almost everything comes from mining, BHP are amongst the best.