BHP profits take a hit as prices fall for Australia’s mining exports
The appearance of the largest mining companies in Australia has worsened since April, when many of the US government has expected much higher than the expected, increased uncertainty and lower global growth forecasts.
Loading
While Trump gives Australia a 10 percent minimum base line tariff ratio, the sprinkling of the nation is expected to face much higher US tariffs between a stagnant time, especially for China, especially China, China, especially China.
Iron ore is Australia’s largest commodity exports and generates $ 116 billion in revenue in the past financial year.
Mike Henry, the Chairman of the Executive Officer, said that BHP’s operations are performing in a strong and consistent way even in the face of a very uncertain and variable outdoor environment ”.
The company described the economic appearance as “mixed, but pointed out flexible demand for commodities, especially in China and India.
“Policy uncertainty has increased around tariffs, finance policy, financial expansion and industrial policy, and continues to affect investment and trade flows,” he said. “Despite these dynamics, the demand for commodity remained flexible.”
BHP’s copper work was noticeable in Tuesday’s results, because the demand for Red Metal proved that it was stronger than expected throughout the year, increasing prices and gains.
BHP is a critical building block for renewable energy, transmission lines and electric cars.
Copper, BHP in June in 12 months before the pre -tax earnings of 45 percent of the earnings. The company said copper production has increased by 28 percent in the last three years.
On Tuesday, analysts said that BHP’s gains decline “tension in commodity markets”.
Etoro market analyst Farhan Badami said, “Copper provided a little relief at more strict prices, but it was not enough to compensate for the wider commodity weakness,” he said.
“The decline in iron ore and coal prices only points to more than market imbalances, underlining economic acceleration that slows down in large buyers like China.”
RBC Capital Markets Analyst Kaan Peker said that BHP’s “strong set of conclusions” reflects the “consistency” of the work, and that better dividends will be seen positively than expected.
In the Business Briefing Bulletin, great stories offer special scope and expert opinion. Sign up for getting every morning on weekdays.
