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BHP – McKenzie shows his hand
BHP yesterday finally caved into media speculation after the AFR released the following article: BHP Billiton mulls $20bn merger. Having played second fiddle to RIO CEO Sam Walsh over the last 12...
View ArticleSpin-offs, another example of the benefits
Like Metso we have another example of the benefit of spin-offs, this time from GEA Group (HQGB) and see Reckitt Benckiser’s comments on Pharma. We refer you to our Spin-off list, companies that have...
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Iron ore – Everyone bullish, but outlook bearish
When we went bullish on RIO in April last year (http://www.aviatelive.com/rio-tinto-strong-buy-detailed-thoughts/), one of the reasons was analyst iron ore forecasts were cum upgrades. Fast forward 1...
View ArticleMick the Miner back for BHP break-up
MICK DAVIS, the former boss of Xstrata, is in talks over an ambitious deal that would break up BHP Billiton, the world’s biggest miner. Davis, who built Xstrata into a FTSE 100 company in a decade-long...
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Iron-ore, Rio, BHP and Anglo: an observation
HSBC China June flash PMI came in at a seven month high of 50.8, (est. 49.7) vs. May final 49.4 and new orders were particularly impressive, growing at their fastest pace in 15 months. Also note Hebei,...
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Look East to copper
Chinese copper prices are up 16% from lows, reflecting a combination of incredibly low inventory, improving demand in China (and US) and Chinese targeting of infrastructure (especially Rail) and social...
View ArticleLook East to China (cont)
Further call to our comment in the European Daily on May 22nd, our Asian strategist remains resolutely positive on China. Today’s PMI is another data-point in support of his view. (It improved to 51, a...
View ArticleLook east (cont): China property crash?
We were invited to the Camp Alphaville conference on Wednesday which included open discussions on topics such as China, robotics, life after QE and so on. Our main takeaway was the general consensus...
View ArticleMiners, commodity rally continues
See Zinc prices are closing in on their highest levels in over a year. Nickel is strong despite the Russian issues being settled. Chinese copper prices are nearly at year highs and aluminium is at the...
View ArticleLook east to China: property crash?
After good numbers from Vanke on Friday, another 4 property companies have released positive June data (and we’ll here from another 17 over the next four days). Sino Ocean Land June sales +37% YoY...
View ArticleShould RIO/BHP be in the GET-Clean basket?
Higher-grade, lower-sulphur “green” iron ores are garnering a premium price in China, while lower grades are trading at larger discounts, according to major miners such as Brazil’s Vale. Chinese mills...
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BHP demerger & DLC collapse – Joining the dots
Dot 1 – Andrew McKenzie becomes new CEO of BHP and announces simplification of portfolio back to 4 core commodities (iron ore, petroleum, copper, coal) Dot 2 – Asset sales have slowed meaning only...
View ArticleBHP – Port data indicates strong production result
BHP release their production report tomorrow pre market. Given Port Hedland data shows shipments totalled 104.5mtns (+15.5%) for the June quarter, of which 43.5mtns are attributable to FMG, AGO etc, we...
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Aluminium, don’t forget Rio and BHP
While we have discussed the benefits to Norsk Hydro – a pure play, and Rio (Alcan) we haven’t really discussed it with respect to BHP, and so were surprised to see how big they were in terms of the...
View ArticleAluminium, don’t forget Rio and BHP
While we have discussed the benefits to Norsk Hydro – a pure play, and Rio (Alcan) we haven’t really discussed it with respect to BHP, and so were surprised to see how big they were in terms of the...
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BHP – Lower iron ore cost + higher oil price
All eyes on BHP production report today but as mentioned in previous “best ideas” we expect this to be strong. Our focus though remains on what lies ahead and why you should be buying BHP into its FY...
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Time to invest in energy
Geopolitical crisis now seen as the biggest tail risk in global markets, so why is market underweight energy? The de-rating in energy sector (see chart below) has been driven by multiple contraction...
View ArticleBHP, next catalyst comes from costs
Production was 9% above consensus, and was consistent with our Australian desk’s expectations post the release of the port data (yesterday). Now, post that excitement it’s time to focus on costs...
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Aluminium – Don’t forget BHP
While we have discussed the benefits to Chalco and Alumina – pure playa, and Rio (Alcan) we haven’t really discussed it with respect to BHP. Most would probably be surprised to see how big they are in...
View ArticleEnergy M&A highlights value in listed equities
All the recent $1bn+ transactions in the conventional E&P space highlight significant value in listed equities: Aug 2013: Sinopec acquires 33% of Apache’s Egyptian business for USD3.1bn. Egypt was...
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