| BHP Billiton Faces External Market Headwinds, Scopes Exist - Analyst Blog | |
| | |
|
On Jan 19, 2015, we issued an updated research report on premium basic materials company BHP Billiton Limited (BHP). BHP Billiton is one of the world’s largest diversified resource firm with operations spanning over several continents. It is involved in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising
Existing Business Issues
Lately, BHP Billiton’s business is being adversely affected by certain external market headwinds such as equipment shortage and labor crisis. Also, volatile prices of metal as well as minerals are raising the operating expenses of the company. Taking into account the fact that the company’s future prospects depend on its successful exploration and production efforts, operational risks like mining disruptions due to bad weather conditions may prove detrimental to its growth. Moreover, delays in government permits for project development and civil engineering have resulted in higher operating costs for the company over a considerable period.
BHP Billiton renders its commercial services over diversified geographical locations. Thus, it is also subject to currency and exchange-rate risks. Unfavorable fluctuations of these macroeconomic indicators can create severe profitability hazards for the organization.
Scopes for Improvement
BHP Billiton aims to significantly improve its business yield in the upcoming quarters on the back of its portfolio-simplification initiatives such as demerger of business. In fiscal 2014, over 96% of the company’s operating profit was generated by its core assets. Henceforth, the company aims to reduce costs without losing the benefits of economies of scale and diversity, as experienced by its manufacturing facilities. BHP Billiton is revising its corporate structure by favorably trimming down its asset portfolio. Under this regime, the company is de-merging its nickel, manganese, aluminum, coal and silver assets. Ceasing the manufacturing in these asset firms can considerably lower the company’s operational costs in the near future, hence, improving its margins.
With a market capitalization of $122.76 billion, BHP Billiton currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the industry include Denison Mines Corp. (DNN), Platinum Group Metals Ltd. (PLG )and Alcoa Inc. (AA). All the three stocks currently hold a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BHP BILLITN LTD (BHP): Free Stock Analysis Report ALCOA INC (AA): Free Stock Analysis Report DENISON MINES (DNN): Free Stock Analysis Report PLATINUM GROUP (PLG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
|
|
|
Platinum Group metals Ltd
|
|
DEVELOPMENT STAGE |
CODE : PTM.TO |
|
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Platinum Group Metals is a platinum development stage company based in Canada. Platinum Group Metals holds various exploration projects in Philippines. Its main asset in development is WESTERN BUSHVELD JV in South Africa and its main exploration properties are AGNEW LAKE and LAC DES ILES in Canada, WAR SPRINGS and TWEESPALK in South Africa and ACT (ADLAY CAGDIANAO TANDAWA NICKEL) in Philippines. Platinum Group Metals is listed in Canada and in United States of America. Its market capitalisation is CA$ 252.8 millions as of today (US$ 183.7 millions, € 172.4 millions). Its stock quote reached its highest recent level on November 30, 2012 at CA$ 9.90, and its lowest recent point on June 15, 2018 at CA$ 0.12. Platinum Group Metals has 133 070 008 shares outstanding. |