At time of writing, shares of BHP Group Ltd [ASX:BHP] are down 2%, to trade at $35.77.
The BHP share price bounced strongly off the March market lows on the back of firm iron ore prices, but has been locked in a mini-slide since mid-August:
There was plenty to unpack in the quarterly activities report, we look at the main highlights.
A few parentheses in the BHP quarterly update
Here are the key numbers to look at from the update:
Source: BHP Group Ltd
A fair few numbers in parentheses here means lower production versus last year.
Iron ore is tracking reasonably well though, with mostly unchanged guidance across the portfolio and a couple under review.
The copper price surged on the back of infrastructure spending around the world, as you can see below:
I expect the spending to continue to ramp up or even accelerate in the coming months, so it’s possible that if BHP can get production back to previous levels, there might be upside.
Outlook for BHP share price
I’m largely bearish on BHP’s prospects, despite their long history of dividends.
Partly because the breadth of their portfolio of resources exposes it to more risk.
Both due to political factors and due to certain trends within commodities.
Smaller, more nimble miners focused on specific commodities might be better.
And energy coal and petroleum may take a long time to recover.
Or might not make it back, should the world’s energy choices change.
I’ve got a few educational resources/reports for you too:
- If you are looking for a selection of deep-value stocks and how to identify them, you can find that here.
- If you are looking for dividend ‘survivors’, you can find our five favourite stocks in this theme here.
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