(THERE MAY BE LIGHT AT THE END OF THE TUNNEL AFTER A LONG “WINTER” FOR MINERS IN AUSTRALIA)
August 28, 2024
Hello everyone,
Some good news from BHP
BHP has achieved a multi-billion-dollar profit, and it was all about China.
BHP shipped most of its iron ore off to China, but a hefty amount also went to Japan.
China’s insatiable demand for iron ore (and coal) drives prices, and BHP’s profits – last year, this year, and out into the 2030s.
Because of this trade, Canberra receives a sizeable tax from BHP as do the states from royalties. In the 2023-24 year, a not too shabby $US11bn ($16bn) changed hands.
The future of BHP, and indeed, Australia, remains all about China.
Despite China’s structural problems, BHP does not see Chinese demand for iron ore slipping, or even dramatically plunging, in the future.
And to counter all the negative narratives about BHP’s health in relationship to its main trading partner, BHP is actually planning to increase its production out of the Pilbara, from 260 million tonnes a year to 305 million tonnes; and has longer-term plans to go to 330m tonnes.
BHP is also increasingly about copper; and that is also mostly about China.
Worthy of note is the fact that 50% of copper produced in the world is consumed by China, as was pointed out on Tuesday by BHP’s CFO, Vandita Pant.
Copper contributed just under $US9bn, or nearly one-third of the group’s gross profit.
Interestingly, BHP’s CEO has stated that he expects a turnaround in China’s property sector in the year ahead.
BHP WEEKLY CHART
QI CORNER
SOMETHING TO THINK ABOUT
Identity Theft is on the Rise
To protect your data, experts say freezing your credit should be a priority.
“Freezing your credit is the single most important thing you can do when you get a data breach notice,” James E. Lee, chief operating officer at the Identity Theft Resource Centre, a nonprofit working to minimize the risk of identity theft.
Freezing your credit is free and takes just minutes.
A credit freeze will limit access to your credit report and prevent the opening of new accounts in your name, either by you or other parties.
A credit freeze will last until you remove it.
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Monitor your free credit report to check the latest activity.
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Use complex and unique passwords for each website.
Use two-factor authentication or encryption.
Remove personal information on social media that can be used by identity thieves.
Set up alerts on accounts which will keep you up to date on the latest activity.
Cheers,
Jacquie
