Research archive for BIL

b>All I have heard since BHP Billiton put forward a price for Potash is that there is going to be a counter bid here, or there, or from this group or that. And yet, I have still seen nothing concrete. I said at the time (perhaps naively) that I thought that BHP Billiton were the ONLY company that could make a bid of that size. It was just too big for Rio Tinto, and their shareholders are shy of taking on more debt again and Vale had other issues of sorts, although they might find it easier to muster up the cash than Rio.

The Potash Corp. board are suing BHP Billiton for what looks like a serious accusation. Reuters Canada reports Potash Corp sues BHP as takeover struggle escalates. Wow. BHP say absolutely nonsense and Potash are just trying to deflect the fact that there are no counterbids of any sort.

BHP Billiton has extended their offer to Potash Corp. shareholders to November the 18th. I wonder exactly how many people have tendered their shares at 130 bucks a share when the stock is trading 18 bucks higher. Any takers? Yes, no. If you have been out of touch, in the bush, in a coma (I hope you get better) or didn't care but now do here is a refresher, quite a fun one: Potash vs. BHP: The Fertilizer War From A to Z.

BHP Billiton have lined up their funding for the Potash Corp. purchase. That is all very well, but you have to have a willing seller first of course. Reuters reported Friday: BHP signs jumbo $45 bln Potash bid loan. As the story suggests, BHP Billiton plan to pay this back pretty soon: "The loan comprises a $25 billion, 364-day bridge loan to bond issue; a $10 billion, three-year term loan; a $5 billion three-year revolving credit facility; and a $5 billion, four-year revolving credit facility. The 364-day facility includes a one-year extension option."

BHP Billiton results have hit the streets this morning. OK, so first things first, let us dive into the numbers, I hope you brought your swimming trunks and towel. Sales increased 5.2 percent to 52.798 billion Dollars, that translates at current exchange rates to 390 billion Rands worth of sales, more or less. Profits of 12.722 billion Dollars, up 116 percent, that equates in Rand terms (using the current exchange rate) to 94 billion Rands worth of profits. Gearing is negligible, down to 6 percent or 3.3 billion Dollars in total.

Now dust off the memory banks, because no doubt you remember the Rio Tinto and BHP Billiton JV proposal between their Iron Ore assets? Yes? No? Well, the Sydney Morning Herald is running the story BHP-Rio tie-up said to be 'dead'. Turns out that the regulatory hoops were always going to be the toughest obstacles to overcome. Remember that if there is no conclusion by the last day of this year, well then, the deal expires and the only folks who would have made any money, would have been the folks that drafted all of the documents. I hope that the docs were in electronic format.

Let us explore this BHP Billiton bid for Potash a little further. We understand the reasons why, growing world populations are going to put increasing pressure on food production, higher yields are going to be demanded over time, and there should be bigger demand for fertilizer. In order to achieve the crops that farmers will have to produce. What is also apparent to me is that mechanized farming will become a more important industry, it is quicker and it can work around the clock.

We talk about BHP Billiton and Potash Corp, how it would work practically and how it is something that has been knocking around for a while. The JSE release their first half results. Public sector strike begins today, around one million government employees will "down tools" in order to get the government to budge on their wage demands. Lastly, what does an explosion in the global population tell you, that ties in nicely with the thinking by BHP?

The BHP Billiton production report for their fourth quarter and for the for the full year was released this morning. If you want to download it, check it out here: BHP BILLITON PRODUCTION REPORT FOR THE YEAR ENDED 30 JUNE 2010. Wow, some of the headlines are pretty mind blowing: "Western Australia Iron Ore achieved its tenth consecutive annual production record." and "Petroleum delivered its third consecutive annual production record following the successful delivery of a series of growth projects in the Gulf of Mexico (USA) and Australia." And that division is much higher margin than their others.

BHP Billiton releasing their chairman's letter to shareholders yesterday outlining the tax issues that all the mining companies face in Australia. As the letter points out however, "there is still a great deal of detailed work to be done before this tax is enacted and its impact is certain. We will work with the Government to ensure that the final outcome of the minerals taxation proposal maintains the international competitiveness of the Australian resources industry and is in the long term interests of all Australians." And not just Australians is where our interests lie, but rather the shareholders of BHP Billiton, who are spread across the globe. I think what I read into it is that whilst all parties feel a little more comfortable, the fact remains that Australia still has a high tax rate. Check out the whole letter.

The Bartman says that BHP Billiton and their Australian mining peers have succeeded in thwarting the Labour initial proposal, or is this a win for labour in the looming elections? A Homer run? All I can say for sure is that certainty makes for a better outcome. Time for our department to step up to the plate, our Venezuela moment is what it is being called. Things with V, Vuvuzela's for BP, we could really show Tony Hayward. Non-farm payrolls, this is a big day for the traders. And Chinese minimum wage gets a leg up, good idea I in the long run.

So BHP Billiton are going to be investing in an iron ore project in Liberia. Sounds like a good neighbourhood, but not really. Plain diversification but the timing of the release will make it look like the opposite. Quite simply because negotiations between the Liberian government and BHP Billiton have been ongoing for the better part of 18 months according to the wires. The source and let me quote Reuters: "an official in the West African country said on Monday." Check out the original Reuters article Liberia, BHP sign $3 bln iron ore deal.

Afghanistan finds amazing riches, in the form of an amazing mineral find. BHP Billiton on their version of what has happened so far with the Aussie super tax on mining resources, this ties in quite nicely with the Afghan find. My version of Friday's football at Soccer city, as well as a few mobile pictures.

BHP Billiton. And the other majors down under have found an ally with the closest ties to government. Check it out: Australia Future Fund Chairman Says Mining Tax Must Be Changed Or Abandoned - Report. I recall making these points at the get go, because resources makes up such a big amount of the Aussie exchange, all internal pension funds were going to suffer as a result of the sell-off. If the pension administrators convey this message to their holders and benefactors then there could be serious implications for the ruling Labour party. Who as far as we understand it, are under extreme pressure already, so from a business point of view you can see this as a desperate measure.

We saw Marius Kloppers, the BHP Billiton chief on CNBC squawk box on Friday. Joe Kernan was more interested in his beer tastes, he said no Fosters, yes to VB Bitter, no to the Outback Steakhouse, Kloppers is a vegetarian. And yes, he is coming to the World Cup, he will watch some games in Cape Town and at Soccer City. A city all by itself, I can't wait. Check out the video: Exclusive: BHP Billiton CEO on Mining Tax Hike. Phew, tough stuff from Kloppers (he does sound strangely like Nathaniel), but you know, they need to come out fighting. He talks about a rule change.