RTNTF - BHP: Dealing With Subdued Iron Ore Price And Higher Costs
2024-07-14 11:58:51 ET
Summary
- BHP's failed acquisition attempt for Anglo American might just be a positive at a time when the company has to deal with a weak broader environment.
- Subdued iron ore prices on muted demand from China and strong exports, along with rising labour costs and payments for damages, are expected to affect revenues and profits for FY24.
- Despite positive market multiples and good dividend yield, BHP's stock price upside remains limited, making it more suitable for dividend investors.
Since I last wrote on the Australian iron ore miner BHP (BHP)(BHPLF) in April, its price has barely moved. This gives the appearance of a quiet past quarter for the miner, but it has been anything but....
BHP: Dealing With Subdued Iron Ore Price And Higher Costs