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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@nicholaslepan$BHP – BHP launches new Freight Uber – online freight platform to cut shipping costs
- BHP might be about to score a bit of an own goal with its new online freight platform
- While we suspect that the platform might help to reduce the cost of managing its ship chartering we also wonder if use of the platform might cause some shippers to scrap some older vessels faster than they might have otherwise.
- Almost every ship yard in the world is now struggling for survival with only a few in China likely to continue as they are.
- Taking more ships out of the system should inevitably lead to higher freight rates in the longer term and given the precarious state of the shipping industry then the longer term may not be so long away.
- BHP says the portal has so far cut rates to below $0.30/t below the spot price which is currently at $5.19/t according to the spot freight index rate.
- BHP estimates it has spent $764m to ship 275mt of iron ore from Western Australia to its customers, mainly in China in the last financial year to end June 30.
- Like Uber, BHP will automatically match vessels with cargos according to its algorythm, unlike Uber ride sharing might not be a preferred option.
@nicholaslepanEuropean equities climb for a third day (Stoxx Europe 600 +0.2%) with miners trading lower amid range bound base and precious metals prices and stronger pound.
- #Gold prices are little changed this morning after having climbed $23/oz since the start of the week and touched the highest level since Nov on Wednesday on safe haven demand.
- An increase in gold prices came despite a 0.2% appreciation in the US$ index during the week.
- $BHP stopped production at Escondida ahead of the labour action; copper prices are flat today after having climbed 1.7% in the previous trading session.
- Brent is up 1.1% this morning building on gains recorded yesterday despite the EIA report showing a 13.8mbbl jump in US stockpiles last week, marking the second biggest gain on record.
- #Iron ore futures have almost regained all its losses recorded post the end of Lunar New Year holiday season on the back of strong spot steel prices. May Dalian futures climbed 1.1% as Shanghai rebar and hot-rolled coil contracts gained 0.1% and 0.3%, respectively.
@nicholaslepan$Miners continue to break new ground as prospects for stronger earnings drive value
- $BHP's Escondida declares ‘Force Majeure’ causing copper prices to take off at a time when Chinese traders are expected to come back into the market
- #Copper prices have broken-out convincingly on the upside to hit US$ 6,119/t this morning versus US$5,927/t seen on Friday morning.
- Cyclones and heavy rains are causing some concern in Western Australia disrupting iron ore and nickel shipments.
- Chris Lynch, CFO at Rio Tinto $RIO.L comments that #iron ore prices will defy forecasts of a dramatic collapse as Chinese economy remains strong
@nicholaslepanWorkers at the world's largest copper mine in Chile are digging in for a long strike, emboldened by new labor laws that are likely to result in tough wage negotiations in the industry in 2017 in one of Latin America's most free-market economies. negotiations stalled in part because of a freshly minted labor code that aims to return power lost by unions decades ago. The law does not take effect until April, but its provisions and language have influenced the union's negotiating position. #copper#chile#mining$BHPhttp://www.reuters.com/article/us-chile-copper-escondida-labor-idUSKBN15U0H5
@nicholaslepan$BHP Billiton reports a reversal of the US$7.030 bn half year loss in 2015 to report US$3.204 bn of attributable profits in the six month period to December 2016. The Company notes that it expects world economic growth in the range 3-3.5% in 2017 and that it expects “China’s economic growth to moderate in the coming year … [as] … China’s policymakers … seek a balance between the pursuit of reform and the maintenance of macroeconomic and financial stability”. Sp Angel Meyer concludes that BHP Billiton has achieved a strengthening of its balance sheet and the plan to repurchase US$2.5bn of debt should help position the company to take advantage of opportunities to “invest counter cyclically” should they present themselves in the future.
@drilltracker@Brendan@MiningBookGuy I saw the problem with biznoids taking over exploration with BHP in the early 2000's. When they replaced explorers and visionaries like Hugo Dummet, Oliver Warren and Jim Bratt with finance guys in 2000, the exploration department lost its mojo. They had people like me build "risk adjusted NPV models" to evaluate projects instead of geos that had vision to make the next big discovery. When you compare the discoveries in 1980-2000 with what came after is pretty sad. Cannington, Escondida, Ekati, Syama, Mabangu, Rico Dic, Antapacay, Oyo Tolgoi, Prominent Hil, Hope Bay, Spence, Superior, are all world class deposits discovered by BHP, Rio Algom, Billiton, or Magma joint ventures. (Well maybe not Hope bay but maybe one day.) To no bodies surprise, $BHP has made very few (if any..perhaps Angola diamonds) significant discoveries since. #index
@hunter@MiningBookGuy - $BHP and $FCX both getting hurt- stoppages at Escondida in Chile, Grasberg in Indonesia- worlds two biggest copper mines. Now Peru, too. Cerro Verde, where Freeport completed a US$4.6bn expansion at the end of 2015, produced 1.1Blb (490,000t) of copper and 9,580t of molybdenum in 2016. #copper#Peru#Indonesia#Chile
@hunterIndonesia Grasberg mine $FCX, Escondida in Chile $BHP (worlds two biggest copper mines) and now Peru's Cerro Verde all on stoppages, strikes. This has to pinch the copper supply... should be positive for $CDB no? #copper#Peru#Indonesia#Chile
@GoldfingerHmmm...."BHP Billiton plans to restart operations at its Escondida copper mine in Chile by using temporary workers after striking workers rejected an invitation to return to negotiations." $BHP$copper
@PamplonaTraderKevin if @teevee spent more than 2 minutes looking at $SOLG.L and $CGP he'd realize that access to capital is the least of their worries. He'd realize that not only has Newcrest (which he says is having difficulty with this very kind of deposit in PNG) made a 10% strategic, but also has sponsorship from $GUY Guyana Goldfields. Too, the incredible upside at Cascabel has also compelled $BHP to offer $300M to earn up to 70% of the project. He says not to read too much into it but I think he means *HE* hasn't read much into anything. Also, why not ask Warren Irwin at Rosseau why he is buying 4% of $SOLG.L? He has been to site unlike some desktop critics. Does it seem $SOLG.L is having any difficulty raising capital? Also, does the stock chart look like price has been stagnating?