BHP Group (BHP)

[Steveam]

https://www.bhp.com/news/media-centre/r ... ember-2023

Operational Review. Nickel prices drop and may lead to a write down.

Best wishes,

Steve

[idpickering]

RNS re the above;

https://www.investegate.co.uk/announcem ... rt/7994589

Ian.

[Steveam]

https://www.bbc.com/news/business-68102511

Brazilian judge orders payment of about $10bn for Samarco mine disaster.

Best wishes,

Steve

[idpickering]

Response to media commentary regarding Brazil Federal Court decision

BHP notes the recent media commentary regarding a decision by the Federal Court of Brazil in relation to the BRL$155 billion (approximately US$32 billion) Federal Public Prosecution Office claim.

As previously disclosed in BHP's 2023 Annual Report, in May 2016, Brazil's Federal Public Prosecution Office (and 18 other public entities) filed a public civil claim against Samarco Mineração S.A. (Samarco), Vale S.A. (Vale) and Billiton Brasil Ltda (BHP Brasil) seeking BRL$155 billion (approximately US$43 billion at the time) for reparation, compensation and collective moral damages in relation to the failure of the Fundão tailings dam on 5 November 2015.

The Fundão tailings dam was operated by Samarco, a non-operated joint venture owned by BHP Brasil (a subsidiary of BHP Group Limited) and Vale. BHP Brasil and Vale each hold a 50 per cent interest in Samarco.

On 16 October 2023, an interlocutory motion was filed by the Brazilian Federal Prosecutors in the Federal Prosecution Office claim seeking the early payment of collective moral damages, which is one of the categories of damages sought in the BRL$155 billion claim. The media commentary reports that the Federal Court of Brazil issued an interlocutory decision quantifying collective moral damages arising from the Fundão tailings dam failure in the amount of BRL$47.6 billion (US$9.7 billion) (excluding interest and inflation from the date of the dam failure) and ordering Samarco, Vale and BHP Brasil to pay these damages, when any and all appeals are finally determined.

BHP Brasil has not been served with a decision by the Court and will review the decision to assess its implications, the potential for an appeal and any potential impact to the Group's provision related to the Samarco dam failure. Since early CY2021, the parties have been engaging in negotiations to seek a settlement of obligations under the Framework Agreement and BRL$155bn Federal Public Prosecution Office claim and the negotiations are expected to resume in February 2024.

https://www.investegate.co.uk/announcem ... co/8007480

Ian (No holding).

[idpickering]

Half Year 2024 Exceptional Items Update

BHP announces two items which will be recognised as exceptional items in BHP's financial results for the half year ended 31 December 2023 (HY24 Results).

These items relate to an impairment of the carrying value of the Nickel West operations and West Musgrave project (Western Australia Nickel) and an increase to the provision for the Samarco dam failure.

The HY24 Results remain subject to review by BHP's external auditor and final review and approval by the BHP Board.

The HY24 Results will be released on 20 February 2024.

BHP Chief Executive Officer, Mike Henry, said "This is an uncertain time for the Western Australia nickel industry and we are taking action to address the current market conditions. We are reducing operating costs at Western Australia Nickel and reviewing our capital plans for Nickel West and West Musgrave.

BHP Brasil along with Samarco and Vale continue to progress negotiations towards a settlement of the Federal Public Prosecutor Office Claim and Framework Agreement obligations in Brazil. The Renova Foundation has made good progress on reparation and compensation programs and over 84% of the community resettlement cases have been completed."

https://www.investegate.co.uk/announcem ... te/8038732

Ian (No holding).

[Steveam]

BHP Half year results

https://www.bhp.com/investors/financial ... al-reviews

Div payable 28-March 2024 USD0.72

Best wishes,

Steve

[idpickering]

Notice of Dividend Currency Exchange Rates - 2024 Interim Dividend

On 20 February 2024, the Board of BHP determined to pay an interim dividend of 72 US cents per share for the half-year ended 31 December 2023. Currency conversions are based on foreign currency exchange rates on a single day or an average for a period of days ending on or before the Record Date, being 8 March 2024.

56.298381p per share.

https://www.investegate.co.uk/announcem ... on/8079934

Ian (No holding).

[idpickering]

BHP completes divestment of Daunia and Blackwater.

BHP and Mitsubishi Development Pty Ltd (MDP) have completed the divestment of the Blackwater and Daunia mines to Whitehaven Coal.

Daunia and Blackwater were part of the BHP Mitsubishi Alliance (BMA) metallurgical coal joint venture in Queensland. Each of BHP and MDP hold a 50% interest in BMA.

Whitehaven Coal has paid BMA US$2.0 billion cash consideration on completion plus a preliminary completion adjustment of US$44.1 million for working capital and other agreed adjustments (100% interest basis). Whitehaven Coal paid a US$100 million deposit on signing of the Asset Sale Agreement on 18 October 2023.

US$1.1 billion cash remains payable by Whitehaven Coal to BMA over 3 years after completion and a potential additional amount of up to US$900 million in a price-linked earnout may also be payable by Whitehaven Coal to BMA over 3 years (100% interest basis). The price-linked earnout is subject to a cap of US$350 million each year and depends on average realised pricing exceeding agreed thresholds for each of the 3 years following completion on 2 April 20241.

https://www.investegate.co.uk/announcem ... r-/8114349

Ian (No holding).

[absolutezero]

I received a letter in the post this morning from the Federal Court of Australia regarding 'BHP Class Action'.
Wondering if anyone else has received this letter.
I'm guessing you had to have a share certificate rather than be a nominee.

It seems if you owned BHP shares between 8 August 2012 and 9 November 2015 then you may be affected by this class action and receive a letter from the court!

It seems a group of people are suing BHP over failing to fulfill its obligations over the Fundao Dam in Brazil. Environmental catastrophe. Etc etc.
BHP investors are apparently "entitled to compensation" as we apparently paid more for our shares than we should have because of BHP's conduct.
News to me.

I have 3 options:
1. Register as part of the class action as a 'Group Member'.
2. Opt out.
3. Ignore - "be bound by the settlement but not be able to seek any benefit from it". I.e. Receive no compensation and not be able to sue BHP myself. Not that I was planning to.

It claims Group Members will not pay any costs in the event of... blah blah.

I want nothing to do with it....

Has anyone else had this? What do you plan to do?

Moderator Message:
Just for the sake of keeping things together in one place please could any responses to this post be made here, thanks. - Chris

[idpickering]

Operational review for the nine months ended 31 March 2024.

Solid operational performance in copper, iron ore and energy coal.

"We remain on track to meet copper, iron ore and energy coal production for the year. Copper volumes have increased by 10 per cent reflecting strong performance and additional tonnes from Copper South Australia, record year-to-date performance from Spence, and improved grades and production at Escondida.

"Western Australia Iron Ore, the lowest cost iron ore producer globally, delivered another consistent period of production despite heavy rainfall. We continue to invest in improvements to our rail and port operations, which are essential for growth in the medium term to 305 million tonnes per annum and beyond.

"At our BMA metallurgical coal operations in Queensland, significant wet weather including the impact of two tropical cyclones and operational challenges impacted production and unit costs, and we have revised guidance for the year. We successfully completed the sale of the Blackwater and Daunia mines on 2 April for a total of up to US$4.1 bn (100%).

"In Canada, the Jansen Stage 1 project remains ahead of its initial schedule and is now 44 per cent complete. In Western Australia, we expect to announce a decision on the future of our nickel business in the coming months, where efforts to optimise operations and preserve value are underway."

Mike Henry

BHP Chief Executive Officer

https://www.investegate.co.uk/announcem ... rt/8143501

Ian (No holding).

[idpickering]

BHP eyes takeover of $52b rival Anglo American.

Mining giant BHP has approached its rival Anglo American about buying the 107-year-old mining company in what could rank as this year’s biggest deal.

London-listed Anglo American said this morning it received an unsolicited all-share merger proposal from the world’s biggest miner, confirming media reports about a potential bid.

Anglo’s board is reviewing the proposal and cautioned that there is no certainty a binding offer will be made. BHP’s proposal was conditional on Anglo first splitting off its South African platinum and iron ore units, the statement said.

https://www.smh.com.au/business/compani ... 5fmfg.html

Ian (No holding in either company).

[idpickering]

Response to announcement by Anglo American plc

BHP Group Ltd ("BHP") notes the announcement by Anglo American plc ("Anglo American") in response to recent press speculation regarding a proposal by BHP for a potential combination with Anglo American.

BHP confirms that on 16 April 2024 it made a proposal to the Board of Directors of Anglo American regarding a potential combination to be effected by way of a scheme of arrangement. BHP's proposal comprises an all-share offer for Anglo American subject to the pro-rata distribution by Anglo American of its entire shareholdings in Anglo American Platinum Ltd ("Anglo Platinum") and Kumba Iron Ore Ltd ("Kumba") to Anglo American shareholders before completion ("Proposal").

Under the terms of the Proposal, ordinary shareholders of Anglo American would receive:

· 0.7097 BHP shares for each ordinary share in Anglo American; and

· ordinary shares in Anglo Platinum and Kumba (which would be distributed by Anglo American to its shareholders in direct proportion to each shareholder's effective interest in Anglo Platinum and Kumba).

The terms of the Proposal would, based on closing market prices as at 23 April 2024, being the last trading day prior to press speculation, represent:

https://www.investegate.co.uk/announcem ... c-/8156355

Ian.

[idpickering]

Rejection of BHP Proposal

Further to the announcement by Anglo American plc ("Anglo American") on 24 April, the Board of Anglo American (the "Board") provides an update regarding the unsolicited, non-binding and highly conditional combination proposal from BHP Group Limited ("BHP") (the "Proposal").

The Proposal comprised an all-share offer for Anglo American by BHP, with a requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The all-share offer and required demergers would be inter-conditional.

The Board has considered the Proposal with its advisers and concluded that the Proposal significantly undervalues Anglo American and its future prospects.

In addition, the Proposal contemplates a structure which the Board believes is highly unattractive for Anglo American's shareholders, given the uncertainty and complexity inherent in the Proposal, and significant execution risks.

The Board has therefore unanimously rejected the Proposal.

https://www.investegate.co.uk/announcem ... al/8158403

Ian.

[77ss]

.....BHP confirms that on 16 April 2024 it made a proposal to the Board of Directors of Anglo American regarding a potential combination to be effected by way of a scheme of arrangement. BHP's proposal comprises an all-share offer for Anglo American subject to the pro-rata distribution by Anglo American of its entire shareholdings in Anglo American Platinum Ltd ("Anglo Platinum") and Kumba Iron Ore Ltd ("Kumba") to Anglo American shareholders before completion ("Proposal")......
Ian.

A complicated proposal. Interesting to note that only a few days ago Rio Tinto Group’s copper head says he sees much more value in building mines rather than buying existing assets.

https://uk.finance.yahoo.com/news/rio-t ... 21995.html

Had he caught a whisper of BHP's intentions?

Perhaps BHP, rejected by Anglo, will have another tilt at Rio - dusting off their 2008 calculations!

[ayshfm1]

I'm not surprised.

Do a bunch of sub optimal disposals so we can avoid competition problems then we can do an all share deal at a rubbish price. Not sure why BHP wasted their time, I doubt the shareholders would have entertained it even if the Anglo board did.

Maybe they have a plan and this the first shot.

[idpickering]

Response to speculation re Samarco settlement.

BHP notes the recent press speculation in Brazil regarding the status of negotiations in Brazil between Samarco Mineração S.A. (Samarco), BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale) and Brazilian Federal and State Government and other public entities relating to the Samarco dam failure.

As disclosed in BHP's 2023 Annual Report and Half Year 2024 Report, Samarco, BHP Brasil and Vale have been engaging in negotiations with the Brazilian State and Federal Government and other public entities to seek a settlement of obligations under the Framework Agreement, the Federal Public Prosecution Office Claim, and other claims by government entities relating to the Samarco dam failure.

BHP Brasil's provision for the Samarco dam failure is US$6.5 billion as at 31 December 2023 which includes the assessment of the estimated costs to resolve all aspects of the Federal Public Prospection Office Claim and the Framework Agreement obligations.

As part of the settlement negotiations, BHP Brasil, Samarco and Vale have submitted a non-binding, indicative settlement proposal which is within BHP Brasil's provision for the Samarco dam failure. The proposal is for a total financial value of approximately R$127 billion (approximately US$25.7 billion[1]) on a 100% basis with Samarco as the primary obligor and a 50% contribution from each of Vale and BHP Brasil as secondary obligors if Samarco cannot fund. The proposal incorporates amounts already invested to date plus future payments and obligations as follows:

https://www.investegate.co.uk/announcem ... t-/8162458

Ian (No holding).