BHP Half-Year Review 2024
Performance: -13%
Dividend received: BHP paid a dividend of 1.09619C per share
Full-year weighted portfolio Forecast: 8.8pc
Summary: I find it difficult to HOLD BHP in the portfolio as I don’t see a large enough recovery in China, Iron and Copper to offset the loss this year. I will update members shortly on the replacement.
BHP share price vs the 7.8% gain seen by the ASX 200 over the same time period resulted in BHP underperformin the index average by over 17pc.
The main factors affecting the price of BHP shares were iron ore which brings in the most money for BHP, with copper coming in second.
Iron ore was worth about US$110 a tonne at the start of FY 2023. As of January the metal was it was more than US$144 a tonne.
Iron ore prices dropped to $100 a tonne in early April because of problems in China’s real estate and manufacturing sectors and are now selling at $106 a tonne.
Copper has held up better and was worth US$8,315 a tonne at the start of FY 2024. In late May, it hit almost all-time highs of US$10,890. But the price of copper has also gone down since then. It is now selling for US$9,600 a tonne.
Anglo-American takeover
After everything was said and done, it’s hard to say whether BHP’s share price went up or down when its $74 billion plan to buy global miner Anglo American fell through.
Its dead in the water and we will never know, though I believe, some egos at BHP would have loved the fact that BHP would have been the world’s largest copper miner.