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%

StockMarketWire.com
BHP Billiton is taking a $3.29bn hit on its US shale gas and Australian nickel assets following a full-year assessment.

The company said low US gas prices due to a short term over supply of gas have resulted in an impairment of $2.84bn (before tax) against the carrying value of the Fayetteville shale gas assets acquired from Chesapeake Energy in February 2011.

The company will also recognise a $450m (before tax) charge against the carrying value of its Nickel West assets as a result of margin deterioration.

Both impairments will be recognised as exceptional items.

Chief executive Marius Kloppers and head of petroleum Mike Yeager will forgo their bonuses for 2012 following the impairments.

Kloppers said: "Our decision to enter the North American shale hydrocarbon business about 18 months ago was taken after extensive deliberation and due diligence.

"Our work convinced us that this significant, low-carbon fuel source would play a meaningful role as the world makes its future energy choices.

"We are still of this view, particularly given the ongoing positive technological advancements in the shale industry.

"We believe that our dry gas assets are well positioned for the future given their competitive position on the industry cost curve. In the short term, the accelerated development of our liquids rich shales will continue to complement investment in our traditional project pipeline given the high rates of return on offer and the rapid payback on incremental investment."

Results Year Ended 30 June 2012

· Our strategy to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market remains a major point of differentiation, particularly in the current, more challenging economic environment.

· Underlying EBIT(1)(2) decreased by 15% to US$27.2 billion and Attributable profit excluding exceptional items(3) declined by 21% to US$17.1 billion. Exceptional items totalling US$1.7 billion contributed to a 35% decline in Attributable profit to US$15.4 billion.

· Underlying EBIT margin(3) remained at a robust 39% while Underlying return on capital was 23%.

· Strong momentum established with annual production records achieved at 10 operations. Our low risk, largely brownfield projects in execution are expected to create substantial shareholder value.

· Net operating cash flow(4) of US$24.4 billion reflected the strong cash generating capacity of the business throughout the economic cycle. Gearing of 26% remains within the parameters defined by our solid A credit rating.

· An 11% increase in the 2012 financial year dividend takes the compound annual growth rate of our progressive dividend to 26% over the last 10 years.

Note from Merrill Lynch today:
"We downgrade BHP to Underperform from Neutral, with a new price objective of GBp1900 (-16%). Post the recent share price rally, we believe BHP is expensive, both relative to its own historical valuation range, and relative to the other diversified miners (10% premium on PER, 30% premium on P/NPV). This valuation suggests that BHP is over-owned and we believe many investors currently favour BHP, as it is seen as safe, high quality and a quasi-oil stock. BHP will, in our view, underperform in a continuing sector rally, whilst also being exposed on the downside in the event that iron ore/oil prices roll over. Post the recent strength in iron ore prices, the BHP share price is up +30% off its 2012 lows and trading toward the top of its recent trading range. On P/NPV, the current multiple of 1.25x is also toward the top end of historical ranges.
Despite its valuation premium, BHP currently has the least volume growth of the big diversified miners (chart 2). We see the group as struggling to grow. The recent record of capital allocation at BHP has been patchy, in our view, with the group taking some write-downs in its recently acquired Shale Gas assets. As discussed in our November “Big Miners” report, we see further write-down risks in businesses such as Alumina and Nickel. Absent growth, we think the stock also looks expensive on a dividend yield basis vs. big oil companies (3.4% 2013 DY vs. average 5.1% for oil majors)."

chart starting to look interesting with sp just nudging through 200 dma

i bought in early today at 1788
for logic etc, go to FTSE thread and read posts 13912+link / 13926 / 13927

Citigroup comment on the sector:
"A Bullish Stance — We move our 12-month sector stance to Bullish, from Neutral, our first bullish call in three years; key picks are BHP Billiton, Rio Tinto and Glencore-Xstrata. While we remain concerned about the potential long-term structural demand story for commodities in China, and we are cognisant of a potential seasonal slowdown in the first quarter of this year, our move to bullish reflects better bottom-up fundamentals, particularly from the major miners. We would rather be too early than too late in making this call.
We have Sell ratings on Antofagasta, First Quantum, Nyrstar, New World Resources, African Barrick, Assore, Fresnillo, Hochschild, Petropavlovsk and Randgold Resources. We remain underweight the gold and base metals stocks, and our least favoured large-cap miner is Anglo American."

OPERATIONAL REVIEW-HALF YEAR ENDED 31 DEC 2013

BHP BILLITON OPERATIONAL REVIEW FOR THE HALF YEAR ENDED 31 DECEMBER 2013

· Strong operating performance in the December 2013 half year with production records achieved across 10 operations and three commodities. Full year production guidance maintained for our Petroleum, Copper, Iron Ore and Coal businesses.

· Western Australia Iron Ore achieved record production of 108 million tonnes (100% basis) for the December 2013 half year as the operation benefited from the early delivery of first production from the Jimblebar mine.

· Queensland Coal achieved record production for the December 2013 half year as several productivity initiatives increased annualised production to 68 million tonnes (100% basis) in the December 2013 quarter.

· Petroleum liquids production increased by 9% to 50 million barrels of oil equivalent in the December 2013 half year, underpinned by a 72% increase at Onshore US.

· Another two major projects delivered first production in the December 2013 quarter and all remaining projects are on schedule and budget.

· BHP Billiton's share of capital and exploration expenditure for the 2014 financial year is expected to be US$16.1 billion(i), as planned.

BHP BILLITON RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2013

§ A substantial improvement in productivity and additional volume from our low risk, largely brownfield investment program contributed to a significant increase in profitability in the December 2013 half year.

§ Underlying EBIT(1) increased by 15% to US$12.4 billion and Underlying attributable profit(1)(2) increased by 31% to US$7.8 billion.

§ The commitment we made 18 months ago to deliver more from existing infrastructure at a lower unit cost is delivering tangible results with annualised productivity led volume and cost efficiencies totalling US$4.9 billion(3) now embedded.

§ This sustainable increase in productivity supported a 9% increase in the Group's Underlying EBIT margin(2) to 38% and a strong improvement in the Group's Underlying return on capital(2) to 22%(4).

§ A 65% increase in net operating cash flow and a 25% reduction in cash outflows from investing activities led to a US$7.8 billion(5) increase in free cash flow(2).

§ Our progressive base dividend, which increased by 3.5% to 59 US cents per share, is comfortably covered by internal cash flow.

§ Proceeds of US$2.2 billion(6) from portfolio simplification further strengthened the Group's solid A balance sheet.

§ With strong free cash flow projected, net debt(2) of US$27.1 billion is expected to approach US$25 billion by the end of the 2014 financial year.

§ We are well placed to extend our strong track record of capital management.

BLT
a strong looking signal, and not without reason

Summary from the UBS note today:
"Diversified miners: we prefer BHP Billiton and Rio Tinto over Anglo American and Glencore. In our opinion, BHP and Rio Tinto are well positioned to improve free cash flow by cutting capex/ costs and delivering high quality volume growth. We expect BHP to be the first diversified miner to increase returns though a buy-back (expected in Aug-14), while, in our opinion, Rio Tinto offers a more attractive free cash flow profile medium-term. We also see potential for BHP to crystallize some hidden value by spinning out its non-core assets over the next 12 months. We are attracted by the restructuring potential at Anglo American, in particular in the Platinum division, and believe that Minas Rio is finally on track to start up at the end of 2014. In our opinion, Glencore has the most dynamic management team, though we maintain a Neutral rating on the stock due to valuation and our cautious outlook on its key commodities (copper, coal). We see the sale of Las Bambas as a potential positive catalyst near-term, as well as the improving outlook for nickel/ zinc.
Mid-caps: we remain cautious on all the UK mid-cap bulk/ base metal producers mining companies under coverage due to valuation (Antofagasta), free cash flow and restructuring uncertainty (Kazakhmys), and the political risk in the Ukraine (Ferrexpo). We prefer the low-cost precious metal producers (Fresnillo, Randgold) and those which will improve free cash flow by cutting capex and improving operational performance (Polymetal)."

worth a punt i think as sp pops back up through 200 dma ...

so popped back in at 1881.5

Never traded this one before cynic, MACD needs to turn up sharpish but hopefully that will occur with volume if your right. In @ 1887.9 tight stop (27 pips)

That's me stopped out cynic, back on watch list till back above 200DAM.

rarely do stops so i'm happy to stay put

what do i know about charts?
bugger all, but others who do may have something to say

They are big big in Iron ore - Iron ore price is weak at moment - I think no rush to buy BLT just yet _ FXPO also down massively with Ukraine problem and weak iron ore price demand. Suppose BAO is down also, but have not checked - no world shortages of iron ore. Be wary "Beware the ides of March".

the good thing about BLT is that it has a very wide portfolio, which is why it has appeal to me

Still sitting on my hands cynic, new to me. If or when volume improves may have another dabble.

That's the 200DMA banjaxed, if it doesn't bounce from here 1800ish would be a tempting entry point.

That's the 200DMA banjaxed, if it doesn't bounce from here 1800ish would be a tempting entry point.