The world’s largest mining firm BHP Group missed analyst estimates for profits by a wide margin, generating net income of $3.76bn in the first half of its fiscal year vs. analyst estimates of $4.37bn. The company suffered from a train derailment, a fire at the Spence copper mine in Chile and an acid plant outage at the Olympic Dam mine in South Australia. On the positive side, the company expects to boost earnings in the second half of its fiscal year since iron ore prices spiked after the dam catastrophe in Brazil - this event has had a negative impact on Vale’s ability to produce iron ore and should leave BHP and Rio Tinto in a position to pick up the profits. The company’s CEO Andrew Mackenzie also dangled a carrot in front of investors’ noses by stating that there might be additional share buybacks of up to $3bn once the company has finalized asset sales of $10.4bn.
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(Almost) Daily Market News Update
- Published:
19 Feb 2019 -
Author:
Joachim Klement -
Pages:
5
The world’s largest mining firm BHP Group missed analyst estimates for profits by a wide margin, generating net income of $3.76bn in the first half of its fiscal year vs. analyst estimates of $4.37bn. The company suffered from a train derailment, a fire at the Spence copper mine in Chile and an acid plant outage at the Olympic Dam mine in South Australia. On the positive side, the company expects to boost earnings in the second half of its fiscal year since iron ore prices spiked after the dam catastrophe in Brazil - this event has had a negative impact on Vale’s ability to produce iron ore and should leave BHP and Rio Tinto in a position to pick up the profits. The company’s CEO Andrew Mackenzie also dangled a carrot in front of investors’ noses by stating that there might be additional share buybacks of up to $3bn once the company has finalized asset sales of $10.4bn.