fbpx

Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

BHP Billiton announces strong increase in iron ore and metallurgical coal production

BHPBHP Billiton Plc, which is one of the most successful diversified natural resources company, has announced strong increases in iron ore and metallurgical coal production for the final quarter of 2013. The company also shared that it believes its focus on financial discipline is one of the main reasons why it is put in a position to reward its shareholders.

The company, which is also known as the biggest mining company in the world, announced today that its iron ore production increased by 16% to 48.8 million tonnes in the period between October to the end of December 2013. BHP Billiton Plc also shared its metallurgical coal production reached record levels in the period between July and December 2013.

The Chief Executive Officer of the company – Andrew Mackenzie, explained that the company became more focused on increasing the productivity of its operations and maintaining strict financial discipline. He said in a statement cited by the Financial Times: “We also remain committed to actively manage our portfolio for value. This strategy leaves us well positioned to deliver a substantial increase in free cash flow and higher returns to shareholders.” Mr. Mackenzie also shared that the productivity agenda of the company was in full swing and would carry strong momentum into the second half of the financial year, as reported by the Financial Times.

One of the analysts of BT Investment Management, which is one of the BHP stock holders – Brenton Saunders commented the iron ore production of the company, saying that: “this is a pretty solid set of numbers form BHP, which are on forecast. Most of the big mining companies are singing from the same hymn sheet at the moment – cutting costs, boosting efficiency and productivity.”

Not only BHP Billiton Plc, but also many of its rivals still bear the consequences of the mining investment boom, which lasted for ten years. As a result, they are now shifting their focus towards some operations in order to cut their costs, and also to increase their efficiency and increase their shareholder returns.

Some investors of BHP Billiton Plc expressed their worry about the fact that the China commodities demand is growing weaker amid slowing economic growth. The price of iron ore, which is one of the key ingredients in steelmaking, has also fallen over the past two weeks, while the steel prices in China are declining.

According to the Financial Times, the current share price of BHP Billiton Plc on the London Stock Exchange is 0.90% down, and its one-year return rate is 11.73% down.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News