Company is the worlds largest diversified resources group. It has seven divisions: Petroleum, Aluminium, Base Metals, Carbon Steel materials, Diamonds and speciality products, Energy coal and Stainless steel materials.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 30/06/2006)

Carbon steel:   28%
Oil:                18%
Aluminum:       15%
Basic metals:   15%
Coal:               9%
Stainless steel: 9%
:                    3%
Diamonds,
minerals, etc:   3%

Half year results, big loses and big cut in divi http://www.moneyam.com/action/news/showArticle?id=5218077

Jefferies comment today:
"BHP reported 1H FY16 EBITDA that was 11% lower than we had anticipated. More importantly, the company announced a new management structure, capex reductions, planned productivity gains, a new dividend policy, and clear capital allocation priorities. These changes are aimed at freeing up cash and should therefore be a positive for BHP shares. We expect the company to use its financial flexibility to acquire an asset (most likely in copper) in the near term.
Management shakeup: In an effort to simplify and in some ways decentralize its structure, BHP announced that it will now group its mining assets into two segments - Minerals Australia, to be run by Mike Henry, and Minerals Americas, to be run by Danny Malchuk. Global Petroleum will be run by Steve Pastor. BHP President of Iron Ore, Jimmy Wilson, and President of Petroleum, Tim Cutt, are leaving the company. We expect this to all be a relatively seamless transition, and the end result should be further cost cutting as redundant functions throughout BHP are eliminated. Tough times call for tough measures.
More productivity gains and capex reductions: BHP expects to deliver $2.1bn of productivity gains in FY '16. These gains will be partially offset by a $1.5bn negative impact due to lower grades at Escondida. The company has lowered its capex guidance from $8.5bn to $7.0bn for FY16 and from $7.0bn to $5.0bn for FY17. Lower costs and lower capex will give BHP additional financial flexibility, as will its new dividend policy (see below).
An end to the progressive dividend, as expected: BHP has lowered its interim dividend by 74%, from $0.62/sh to $0.16/sh (implies an annualized dividend of $1.7bn and dividend yield of 2.8%). We had expected at least a 50% cut to the dividend. The announced $0.16/sh 1H dividend is covered by FCF. Going forward, BHP's dividend will be based on a payout ratio (rather than a progressive policy), with the dividend equal to a minimum of 50% of Underlying attributable profit. This implies a minimum FY17 dividend of $0.18/sh (1.6% yield) if we assume current spot commodity prices and FX. The new policy will ensure that capital returns from BHP are linked to the cyclicality of the business.
Clear capital allocation priorities: BHP's capital allocation priorities will be to 1) spend maintenance capital, 2) maintain a strong balance sheet, and then 3) pay the new minimum dividend. Excess free cash flow will then be allocated to either debt reduction, additional dividends, share repurchases, growth investment, or M&A. At spot prices, BHP would generate excess free cash flow over the next two years (with average FCF before dividends of more than $4bn per year at current spot commodity prices, on our estimates). We do not expect debt repayments (reported net debt of $25.9bn would be 2.2x annualized 1H FY16 EBITDA of $6.0bn), share buybacks, significant additional dividends, or growth investment (better to buy than build now) to be higher priorities than M&A over this period as compelling opportunities may arise. M&A may be on the near-term agenda: BHP believes that "depressed asset values and falling share prices provide opportunities" for mining companies with financial strength.
The company is most constructive on the outlook for copper and oil. If we assume no change in dividend from 1H FY16 to 2H FY16 and from FY16 to FY17, the company's annual dividend payment would fall by $4.9bn relative to FY15. This reduction combined with the announced capex and opex cuts gives BHP significant financial flexibility to buy an asset. We would not rule out an acquisition of a world class copper asset in the $5bn range, if the opportunity emerges."

Another note from Jefferies:
"Even after yesterday’s carnage, BHP’s share price is above our target as commodity prices have been stronger than expected, sentiment regarding mining has improved, and shorts have covered. While the Chinese demand outlook may be slightly better than it was two months ago and more metals intensive stimulus may be coming, our analysis indicates that most commodity prices will go lower in the near term. We downgrade to Hold.
BHP’s mark-to-market valuation is reasonable: The mining sector is coming off its biggest six week rally in 30+ years, with the FTSE Mining Index up 70% from Jan 20 Mar 7 versus the FTSE All-Share Index up 9% over that period. Commodity prices have also significantly increased, with iron ore up 46%, oil up 9%, and copper up 6% YTD (iron ore, oil and copper account for more than 90% of BHP’s NPV, on our estimates). At current spot commodity prices, BHP is on a FY16E FCF yield of 5.9% and EV/EBITDA of 6.4x and a FY17E FCF yield of 11.1% and EV/EBITDA of 5.2x. If we assume a 50% payout ratio (consistent with guidance), BHP’s FY17E dividend yield at spot would be 3.0%. Based on these valuations, we would buy BHP shares only if we were confident that the recent recovery in commodity prices is sustainable.
Commodity prices to go lower: Based on our analysis, the recent strength in prices of iron ore, copper and other mined commodities will at least partially reverse over the next 3-6 months. In the case of iron ore, supply growth from Roy Hill and a seasonal increase in supply following what has been a period of typical weather-related supply disruptions should pressure the price, especially if demand stays weak. We expect the iron ore price to fall to below $40/t this summer (versus current spot of $64/t). In the case of copper, a wave of supply growth (Cerro Verde, Las Bambas, Buenavista, Sentinel, Grasberg, Bozshakol, Antucoya and others) should more than offset any improvement in demand and lead to lower prices. Based on our commodity price forecasts rather than current, higher spot prices, BHP’s valuation is stretched (FY16E FCF yield of 2.5% and EV/EBITDA of 8.1x and a FY17E FCF yield of 7.2% and EV/EBITDA of 6.9x, with an implied FY17E dividend yield of just 1.0%).
BHP’s strategy is a risk: In addition to a fairly expensive valuation (on our estimates) and the likely negative momentum of lower commodity prices in the near term, there are also still questions regarding BHP’s recently announced strategic overhaul, which includes major changes to divisional management and a regrouping of segments. There is also a relatively high risk that BHP pursues M&A opportunities, especially in copper and possibly conventional oil. An acquisition of a tier-1 copper asset would not be cheap (greater than 10x spot EBITDA), and the winner of what would likely be a bidding war would be at risk of overpaying. We would prefer to see BHP use cash flow to pay down debt rather than compete to buy high quality copper assets from the likes of Freeport or Glencore. All else equal, we prefer sellers of good assets over buyers.
Downgrading BHP shares after the recent rally: We have downgraded BHP shares from Buy to Hold (but not changed our target prices) as we cannot identify likely near-term positive catalysts, the company’s strategy is still a risk, commodity prices should go lower in the near-term following the recent strength, and BHP’s valuation based on our estimates is no longer inexpensive. BHP is well positioned for the long term, but the Buy case is not evident for now."

Chart of the week: Huge upside for BHP and Tesco?

i wouldn't touch tesco, but bought a few BLT for my sipp about 10 days ago

All of the reputable miners have bounced strongly, but I still prefer to use the 200 MA as my trigger point. Definitely all worth watching and building a stake over the next 6 months. I think last year was a 'go away in may' year, so.......who knows?!!!

have a look at ANTO then

Yes, I agree. ANTO & AAL a stronger signal, imo. But, reading Jefferies above, they expect commodity prices to reverse over the next few months, so not a long term hold yet.

Nomura today downgrades its investment rating on BHP Billiton PLC (LON:BLT) to neutral (from buy) and cut its price target to 850p (from 950p).

Deutsche Bank today reaffirms its hold investment rating on BHP Billiton PLC (LON:BLT) and cut its price target to 900p (from 950p).

Deutsche Bank today reaffirms its hold investment rating on BHP Billiton PLC (LON:BLT) and cut its price target to 880p (from 900p).

StockMarketWire.com
Brazil's Federal Public Prosecution Service is seeking BRL155bn - $43bn at current exchange rates - compensation from the BHP Billiton Brasil-Samarco joint venture for the failure of the Fundao tailings dam in November.

BHP Billiton says the Federal Public Prosecution Service has announced it has started proceedings for social, environmental and economic compensation.

BHP Billiton says it has not received formal notice of the claim and adds that it remains committed to helping Samarco to rebuild the community and restore the environment affected by the failure of the dam.

Macquarie today reaffirms its underperform investment rating on BHP Billiton PLC (LON:BLT) and set its price target at 700p.

Barclays Capital today reaffirms its equal weight investment rating on BHP Billiton PLC (LON:BLT) and raised its price target to 925p (from 875p).

Tailings Dam - surely this was a design agreed with the local government AND National Government - were their Inspectors asleep on the job - OR - was there a geo-fault that went un-noticed?
Still, I guess If BHP-Billiton wants to remain operational there - then they have to bend to ..... whatever is thrown at them.
The Legal Costs/Fines are probably "Bad enough" - but when it comes to repairing the Dam the construction cost is likely to be much greater, allowing for more-detailed investigations + Safety provisions, etc.
+ Strikes me that this will be Damn costly . . . . .

Jefferies International today reaffirms its hold investment rating on BHP Billiton PLC (LON:BLT) and raised its price target to 900p (from 800p).

Credit Suisse today reaffirms its outperform investment rating on BHP Billiton PLC (LON:BLT) and raised its price target to 1150p (from 1050p).

StockMarketWire.com
BHP Billiton posts losses from operations of $6.2bn for the year to the end of June compared with a profit of $8.7bn in 2015.

The company said it had been a challenging 12 months for the company and the industry.

It said response efforts at Samarco continue with good progress being made on community resettlement, community health and environment restoration.

The company said there were no fatalities at its operated sites in the 2016 financial year.

It reports underlying EBITDA of US$12.3 billion (down from $11.9bn) and an underlying EBITDA margin of 41%, despite weaker commodity prices which had a negative impact of US$10.7 billion.

Productivity gains of US$437 million were achieved for the period and the company says it remains on track for US$2.2 billion of gains over the two years to the end of the 2017 financial year.

Conventional petroleum, grade-adjusted Escondida, Western Australia Iron Ore and Queensland Coal unit cash costs(4) declined by 30%, 22%, 19% and 15% respectively.

Other highlights:
- Capital and exploration expenditure declined by 42% to US$6.4 billion and is expected to decrease further to US$5.0 billion in the 2017 financial year (BHP Billiton share). On a cash basis, capital and exploration expenditure was US$7.7 billion and is forecast to decline to US$5.4 billion in the 2017 financial year.

- Reduction in operating costs, it says the "flexibility in our investment programme and a targeted reduction of working capital supported free cash flow of US$3.4 billion".

- Balance sheet remains strong, with net debt of US$26.1 billion broadly unchanged from December 2015.

- The Board has determined to pay a final dividend of 14 US cents per share, which is covered by free cash flow generated in the current period. In accordance with the Group's dividend policy, this comprises the minimum payout of 8 US cents per share and an additional amount of 6 US cents per share, reflecting continued balance sheet strength and strong free cash flow during the period.

Chief Executive Officer, Andrew Mackenzie, said: "The last 12 months have been challenging for both BHP Billiton and the resources industry. Nevertheless, our results demonstrate the resilience of our portfolio and the diverse ways in which we can create value for shareholders despite low commodity prices. Unit cash costs across the Group declined 16 per cent and with increased capital efficiency, supported free cash flow generation of US$3.4 billion despite weaker commodity prices.

"Next year, we expect another US$1.8 billion of productivity gains as our new Operating Model helps sustain momentum, delivering more than US$7 billion of free cash flow based on current spot prices and a forecast reduction in net debt.

"The strength of our cash flow generation and balance sheet is reflected in the final dividend of 14 US cents per share, which comprises the minimum implied by our payout ratio and a top up from excess cash in line with the capital allocation framework. We continue to pursue capital-efficient latent capacity opportunities which will support volume growth of up to four per cent next year, excluding our Onshore US assets where we continue to defer activity to maximise value. In addition, we have progressed high-return growth projects, with investment decisions on the Mad Dog 2 and Spence Growth Option projects expected by the end of next calendar year.

"Over the past five years we have actively reshaped our portfolio, and we are confident we have the right mix of commodities, assets and opportunities to create substantial value over time. While commodity prices are expected to remain low and volatile in the short to medium term, we are confident in the long-term outlook for our commodities, particularly oil and copper."

In relation to Samarco, he added: "All of us at BHP Billiton remain deeply saddened by the Samarco tragedy. The Company is fully committed to the Framework Agreement and its programs to remediate and compensate for the impacts of the Samarco dam failure. Good progress is being made on community resettlement, community health and environment restoration."

Liberum Capital Sell 1,071.00 665.00 665.00 Reiterates