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BHP Billiton's earnings are strong despite price weakness (Part 7 of 12) (Continued from Part 6) Mixed production results
BHP’s (BHP) alumina production was broadly unchanged in the December 2014 half year at 2.6 million tons, including record production at the Alumar refinery. BHP aluminum production declined by 16% in the same period to 517 kilotons. The decline reflects the suspension of smelter capacity at Alumar and the cessation of smelting activities at Bayside. Manganese ore and alloys reported strong production growth of 7% year-over-year (or YoY) due to an improvement in ore recovery at Mamatwan.
Strong financial performance
Underlying EBIT for the December 2014 half year increased by $568 million to $716 million. Higher average realized prices for alumina, aluminum, and nickel, and a stronger US dollar increased EBIT by $368 million and $170 million, respectively. These factors along with reduction in controllable cash costs, including continued focus on labor and contractor productivity led EBIT to rise 384% YoY.
Outlook
Aluminum demand growth has been strong. New supply is expected to continue curtailing high-cost capacity. This should benefit BHP and its peers like Rio Tinto (RIO) and Alcoa (AA). BHP, RIO, and AA form 32.3% of the iShares MSCI Global Metals & Mining Producers ETF (PICK). The SPDR S&P Metals & Mining ETF (XME) also invests in some of these stocks.
The nickel market isn’t picking up as analysts had expected following a ban on nickel exports by Indonesia. MMC Norilsk Nickel (NILSY) has projected flat nickel production in fiscal year 2015.
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Norilsk Nickel
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PRODUCTEUR |
CODE : NILSY |
ISIN : US46626D1081 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Norilsk est une société de production minière de nickel basée in Russia. Norilsk est productrice de nickel, de chromium, de cobalt, de cuivre, d'or, de palladium, de platine et de plomb au Botswana, en Australie, en Afrique Du Sud et in Russia, en développement de projets de cobalt, de cuivre et de nickel au Botswana et en Australie, et détient divers projets d'exploration en Australie et in Russia. Ses principaux projets en production sont WATERLOO et SILVER SWAN en Australie, TATI NICKEL au Botswana, NKOMATI OXIDE MASSIVE CHROMITE et NKOMATI MINE & EXPANSION en Afrique Du Sud et TAIMYR PENINSULA, ZHDANOVSKOE, J-M REEF et OLYMPIADA in Russia, ses principaux projets en développement sont BLACK SWAN, LAKE JOHNSTON, CAWSE et HONEYMOON WELL en Australie et SELKIRK au Botswana et ses principaux projets en exploration sont JERICO en Australie et NATALKA et VERMINSKOE in Russia. Norilsk est cotée au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 5,8 milliards US$ (5,5 milliards €). La valeur de son action a atteint son plus haut niveau récent le 31 mars 2006 à 98,55 US$, et son plus bas niveau récent le 06 décembre 2022 à 3,02 US$. Norilsk possède 1 906 280 000 actions en circulation. |