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%

Macquarie today reaffirms its outperform investment rating on BHP Billiton PLC (LON:BLT) and set its price target at 1590p.

StockMarketWire.com
BHP Billiton has warned that all shareholders would lose if it replaced its dual listed company structure with a single UK incorporated company as proposed by Elliott Associates and Elliott International.

The company said the board and management regularly reviewed the DLC structure and its portfolio of assets so as to optimise long-term value for all shareholders and the company had simplified its business in recent years.

Chief executive Andrew Mackenzie said: "BHP Billiton is now a stronger, simpler company, well-positioned for future economic conditions.

"We are confident we have everything in place to increase returns and significantly grow shareholder value."

BHP Billiton said Elliott's proposals were not new to the group and it had assessed in detail many times over the past years options to unify the DLC structure and enhancements to its portfolio, including divestment of Petroleum.

A statement said: "Consistent with our capital allocation framework, we regularly consider buybacks as an alternative use for our excess cash.

"Management has been engaged in discussions with Elliott over many months on its proposals and is familiar with the views expressed by Elliott.

"The elements of Elliott's proposal have also been considered by the board.

"Against the background of the ongoing assessment by the board and management of our DLC, our portfolio of assets and the capital allocation framework, we have provided detailed feedback to Elliott on the challenges inherent in their proposals.

"The board and management have concluded that the costs and associated disadvantages of each element of Elliott's proposal would significantly outweigh the potential benefits.

"We believe that Elliott materially overstates the potential value that could be created by its proposals."

It said that unifying the DLC structure in the manner proposed by Elliott could destroy at least US$1.3 billion in value to save less than US$2.5 million a year - for no identifiable material or strategic benefit.

It also said that petroleum remained core to the group's strategy and had the potential to create significant long term value at high returns.

It added: "With our strong business plan, our view is that the Petroleum business as a part of the BHP Billiton portfolio currently offers more value to shareholders than if it were a separate entity."

It continued: "Share buybacks are a core element of our capital allocation framework.

"We have returned to shareholders approximately US$23 billion in buybacks, and approximately US$56 billion in dividends since the formation of the DLC.

"Decisions on buybacks need to consider the cyclical nature of the resources industry and returns available from other uses of cash."

StockMarketWire.com
BHP Billiton achieved record production at Western Australia Iron Ore and five Queensland Coal mines for the nine months to the end of March but it has lowered copper guidance.

The group said that following 44 days of industrial action at Escondida, copper production guidance had been reduced to between 1.33 and 1.36 Mt.

It said the commissioning of the Escondida Water Supply project and the planned ramp-up of the Los Colorados Extension project were now expected in the September 2017 quarter.

And it said that as a result of damage to third party rail infrastructure caused by Cyclone Debbie, metallurgical coal production guidance had been reduced to between 39 and 41 Mt.

Other highlights:

- Full year production guidance maintained for petroleum and energy coal. WAIO production guidance narrowed to between 268 and 272 Mt (100% basis).

- At Queensland Coal, the high-return Caval Ridge Southern Circuit latent capacity project was approved and would enable full utilisation of the 10 Mtpa wash-plant with ramp-up early in the 2019 financial year.

- In Onshore US, development activity was increasing with the approval of two additional rigs in the Haynesville, with gas prices hedged to deliver attractive rates of return.

- Divestment of non-core Onshore US acreage was progressing, with the sales process well advanced for up to 50,000 acres of the southern Hawkville. The Fayetteville field was currently under review and the group was considering all options including divestment.

- The Mad Dog Phase 2 Conventional oil development project was approved and a contract was executed with PEMEX Exploration and Production Mexico (Pemex) following the winning bid to acquire a 60% participating interest in, and operatorship of, Trion in Mexico.

- Commercial evaluation of the LeClerc gas discovery in Trinidad and Tobago was ongoing. Drilling of the Wildling appraisal well in the Gulf of Mexico was continuing, which would assist with establishing the scale of the Caicos oil discovery.

Chief executive Andrew Mackenzie said: "Everything we do at BHP Billiton is designed to create value for all of our shareholders, today and for the long term.

"We have fundamentally restructured BHP Billiton to increase returns.

"The demerger of South32 and US$7 billion of divestments has reduced the number of assets in the portfolio by over a third and our new organisational structure has removed layers of management.

"Our more focused portfolio has enabled us to lower unit costs by over 40%. And we have improved our approach to capital management which has strengthened the balance sheet and increased the discipline with which we invest and return cash to our shareholders.

But we have more to do and we are not standing still.

"A simpler portfolio allows us to improve safety and operational performance more quickly with maintenance, project and geoscience centres of excellence spreading petroleum and minerals expertise across the group.

"We have significantly reduced the capital intensity of our growth options and changed our approach in shale to improve returns and lower risks on new investments.

"Our more focused approach in exploration is delivering results with three discoveries over the last 12 months and our new technology function will unlock further value.

"This quarter we have added value to the portfolio across each of our six focus areas.

"We continued our targeted high-return investment in shale with the approval of two more rigs in the Haynesville supported by our hedging strategy.

"Plans to monetise a portion of our non-core acreage for value, such as parts of the southern Hawkville, are under way.

"In the Eagle Ford, we are increasing recoveries by testing staggered wells and larger frac jobs.

"In the Permian, we are exploring opportunities to consolidate and optimise our acreage position so that we can drill longer lateral wells to lower costs.

"We have approved the Mad Dog Phase 2 project and investment in Caval Ridge to enable full utilisation of its 10 Mtpa wash-plant."

Deutsche Bank today reaffirms its hold investment rating on BHP Billiton PLC (LON:BLT) and cut its price target to 1450p (from 1460p).

StockMarketWire.com
BHP Billiton swung into the black in the year to the end of June with an attributable profit of $5.9bn against a loss of $6.4bn last time and announced plans to sell its onshore US assets.

Underlying EBITDA rose by 64% to $20.3bn with an underlying return on capital employed of 10% (after tax) for the 2017 financial year.

Other highlights:
- Productivity gains(iv) of US$1.3 billion achieved for the period, with more than US$12 billion accumulated over the last five years. The group said it expected to deliver a further US$2 billion by the end of the 2019 financial year, with gains weighted to the second year.

- Net operating cash flow of US$16.8 billion and free cash flow of US$12.6 billion were underpinned by higher commodity prices, strong operating performance and improved capital productivity.

-Capital and exploration expenditure reduced by 32% to $5.2 billion, as it focused on capital efficient latent capacity projects and exercised flexibility in our Onshore US plans. It said capital and exploration expenditure was expected to increase to US$6.9 billion in the 2018 financial year as it focus on its suite of low-risk, high-return latent capacity projects, progress Mad Dog Phase 2 and the Spence Growth Option and ramp-up drilling activity in Onshore US.

- Capital and exploration expenditure expected to remain below US$8 billion per annum for the 2019 and 2020 financial years.

- Strengthened our balance sheet, with net debt of US$16.3 billion reflecting strong free cash flow generation and a favourable non-cash movement in net debt of US$0.6 billion.

- The Board has determined to pay a final dividend of 43 US cents per share which is covered by free cash flow generated in the current period. Total dividends of US$4.4 billion determined for the 2017 financial year include US$1.1 billion in additional amounts over and above the 50% minimum payout policy.

Chairman, Jac Nasser said: "Over the last five years, we have laid the foundations to significantly improve our return on capital and grow long-term shareholder value.

"We have reduced unit costs by over 40 per cent and achieved over US$12 billion in productivity gains. Our capital allocation framework provides flexibility at the bottom of the cycle and discipline at the top.

"We have shifted our focus to low-cost, high-return latent capacity projects which has allowed us to reduce capital expenditure by over 70 per cent.

"We strengthened our balance sheet and changed our dividend policy to make sure we have stability and flexibility to create value and reward shareholders in a more volatile environment.

"And we have reshaped our portfolio so that we focus on large, long-life, low-cost assets that will support shareholder returns for decades to come.

"At the end of this month, I leave my role as Chairman knowing these strong foundations, proven strategy and core values position BHP well for the future."

StockMarketWire.com
BHP Billiton has maintained all production and unit cost guidance for the 2018 financial year.

It said good progress had been made on its latent capacity projects, with first production from the Los Colorados extension project and the Olympic Dam southern mining area achieved in the September quarter and the Caval Ridge southern circuit project progressing to plan.

It said all major projects under development were tracking to plan.

An operation review for the quarter said: 'In Onshore US, our operated rig count increased from five to nine during the September 2017 quarter.

'Divestment of a small portion of the Hawkville acreage was completed during the quarter, with work underway to exit our remaining Onshore US assets for value.

'In Petroleum exploration, evaluation of the positive drilling results from Wildling-2 is continuing, with a sidetrack also encountering oil in multiple horizons which will assist with establishing the scale of the discovery.'

StockMarketWire.com
BHP said it expects to recognise an income tax expense of US$1.8bn following the lowering of US Federal corporate income tax rate from 35% to 21% as well as other measures introduced by the recently enacted US Tax Cuts and Jobs Act.

The company said that the tax expense will be treated as an exceptional item and would include two main components: a non-cash re-measurement of deferred taxes as a result of the reduction in the US Federal corporate income tax rate of US$898m and a non-cash impairment of foreign tax credits due to reduced forecast utilisation of US$834m.

Over the longer term, however, the company said that US tax reform will have a positive impact on US attributable profits mainly due to the lower corporate tax rate.