Category: Stock Market

The Wesfarmers Ltd (ASX: WES) share price has managed to shoot higher recently after hitting a 6-month low last month. The company’s shares touched the bottom at $53.83 on 11 October before zipping upwards.

However, when looking at the past 3 months, the conglomerate’s shares have lost around 8.6%. By compassion, the S&P/ASX 200 Index (ASX: XJO) has fallen 1.7% over the same time frame.

Below, we take a closer look at what’s been happening with the Wesfarmers share price.

What’s troubling Wesfarmers shares?

Investors have been mixed on the Wesfarmers share price as the company continues to navigate its way through COVID-19.

Wesfarmers released the notes from its annual general meeting (AGM) last month, holding back on providing a new trading update.

The company reported very similar commentary to how it performed over the FY21 period

In particular, it stated that some of its businesses, such as Bunnings, K-mart and Target, were impacted by store closures. Although, it said strong online sales managed to offset the loss of potential revenue.

On the other hand, Officeworks thrived as customer demand for technology and office furniture accelerated. This was attributed to more people working from home due to government-mandated restrictions.

The Wesfarmers chemicals, energy and fertilisers division continued to grow on the back of ammonium nitrate and favourable LPG pricing.

The company has progressed its proposal on acquiring Australian Pharmaceutical Industries Ltd (ASX: API). An all-cash proposal of $1.55 per share was made to buy up the remaining interest in the pharmaceutical chain operator.

Wesfarmers recently upped its stake in Australian Pharmaceutical Industries to a 19.3% interest.

Are Wesfarmers shares a buy?

A number of brokers note weighed in on the company’s shares following the release of its AGM.

Swiss global investment bank Credit Suisse raised its price target on Wesfarmers shares by 0.8% to $60.38. Following suit, Jarden also lifted its outlook by 1% to $60.60 apiece.

While this is slightly above the current Wesfarmers share price of $60.09 at the time of writing, analysts at Citi had a different view.

The firm retained its “sell” rating and put a bearish $50.00 price target on the conglomerate’s shares.

Investors appear to be somewhere around the middle ground between Credit Suisse and Citi’s estimates.

Wesfarmers share price review

In 2021, the Wesfarmers share price has gained 19%, surging past pre-pandemic levels and making new record highs.

Wesfarmers commands a market capitalisation of around $68 billion, making it the 8th largest company on the ASX.

The post Why the Wesfarmers (ASX:WES) share price has underperformed the ASX 200 in the last 3 months appeared first on The Motley Fool Australia.

More reading

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• Citi tips Wesfarmers (ASX:WES) share price to dip 16% following API deal
• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A major Sydney Airport (ASX: SYD) shareholder is reportedly contesting the airport’s takeover, saying he believes it’s worth $12 per share.

Private investor Joe Cambria reportedly told the Australian Financial Review (AFR) he wants a board spill in response to the recently accepted $8.75 per share takeover offer. Cambria holds approximately $5.88 million dollars in stock based on the current share price.

At the time of writing, Sydney Airport shares are selling for $8.40, 0.12% higher than their previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.38% today.

Let’s take a closer look at the shareholder’s opposition to the takeover.  

Cambria calls for to board spill

Cambria, who owns 400,000 shares in Sydney Airport and indirectly holds another 300,000, has voiced his disappointment with the airport’s $23 billion takeover offer.

He reportedly wrote to the airport’s board saying he was questioning its “competence, suitability for office, and independence”.

He believes there should be an immediate spill and a new board instated. The AFR quoted Cambria as saying:

I don’t believe that [chair David] Gonski is actually working in the interests of shareholders. This to me looks like it’s a friendly sale rather than an acquisition.

The publication also claims Cambria is seeking legal advice in a bid to stop the takeover.

The takeover bid was posed by the Sydney Aviation Alliance – led by IFM Investors and made up of various super funds.

Cambria reportedly believes, post-COVID-19, the Sydney Airport share price could be $12 and described the takeover offer as a “theft”.

Of course, the final say on the takeover will come from Sydney Airport’s shareholders. The decision is expected to be put to a shareholder vote in late January.

At least 75% of Sydney Airport’s shareholders must approve of the takeover before it will go ahead.

Sydney Airport share price

Right now, the Sydney Airport share price is 0.84% higher than it was this time last month.

It has also gained 31% since the start of 2021. That includes the 33% boost it received when the consortium first put forward its takeover bid.  

The post $6m shareholder says Sydney Airport (ASX:SYD) selling too cheap, calls for board spill appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.4% to 7,472.9 points.

Here’s what is happening on the ASX 200 today:

Incitec Pivot results impress

The Incitec Pivot Ltd (ASX: IPL) share price jumped as much as 17% this morning following the release of its full year results. As management promised, Incitec Pivot delivered a strong second half performance. This led to the agricultural chemicals company reporting a 10% lift in full year revenue to $4,348.5 million and 91% jump in net profit after tax (NPAT) excluding individually material items to $209 million. This was driven by a strong performance from its Fertilisers APAC business, which benefited from a commodity price upswing and strong ammonium phosphates production.

Mesoblast shares jump

The Mesoblast limited (ASX: MSB) share price is charging higher today after the allogeneic cellular medicines developer released positive data from a phase three trial of rexlemestrocel-L in 565 patients with New York Heart Association (NYHA) class II and class III chronic heart failure (CHF) with reduced ejection fraction (HFrEF). Among other things, the study notes that a single dose of rexlemestrocel-L on top of standard of care reduced the incidence of heart attacks or strokes by 65% across all 537 NYHA class II or class III treated patients compared with standard of care alone.

NAB shares fall

The National Australia Bank Ltd (ASX: ANZ) share price is trading lower on Monday. However, this has nothing to do with its performance. Today’s decline is attributable to the banking giant’s shares trading ex-dividend for its final dividend for FY 2021. Last week NAB declared a fully franked final dividend of 67 cents per share with its full year results. Eligible NAB shareholders can look forward to receiving this latest dividend on 15 December.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Mesoblast share price with a 10% gain. This follows its trial update this morning. The worst performer on the ASX 200 has been the Ampol Ltd (ASX: ALD) share price with a decline of almost 3%. This is despite there being no news out of the fuel retailer.

The post ASX 200 (ASX:XJO) midday update: Incitec Pivot and Mesoblast jump, NAB drops appeared first on The Motley Fool Australia.

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• Mesoblast (ASX:MSB) share price surges 9% higher on trial update
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN) are two shares that investors have been keeping a close eye on. Pilbara Minerals is the smaller of the two companies, but it has some big plans for future growth.

It’s no secret that the potential for abundance within the electric vehicle market and other battery applications has the lithium sector booming. But, one fund manager believes there could be more value in Mineral Resources than its high-flying pure-play peer.

Let’s take a look at how Pilbara Minerals compares, according to this expert investor.

Comparing the pair

To say that the ASX lithium space is rife with speculation would be somewhat of an understatement. Uncapped exuberance has spilled over as the beginning of an electric era dawns. Projections of a sixfold increase in lithium consumption under the International Energy Agency’s net-zero by 2050 emissions scenario offers a peek into what could be ahead.

However, Airlie Funds portfolio manager Emma Fisher thinks there is still relative value to be found within the red-hot industry. In a self-published article on Livewire last week, Fisher gave her take on “The cheapest lithium stock in the market”.

Although, perhaps to the surprise of some investors, it was not a ‘pure-play’ candidate among the ASX ranks. Instead, the fundie with over 10 years experience pointed out the recently battle-hardened mining services company Minerals Resources.

Comparing the two, Fisher noted that both mining companies currently have a similar spodumene capacity. Across its Pilgan and Ngungaju plants, Pilbara Minerals’ assets add up to 536 kilotonne (kt) per annum of capacity. Meanwhile, Mineral Resources’ share of its Mt Marion and Wodgina operations equate to 535kt per year.

Furthermore, both lithium contenders have plans for future expansion. The Pilbara Minerals share price has surged on the miner’s ambition to produce 1 million tonne of spodumene annually in the future. Similarly, the company intends to reach an estimated 13kt of lithium hydroxide production capacity within 3 years.

Simultaneously, Mineral Resources will be charting its own course toward an estimated 40kt to 45kt of lithium hydroxide production over the same period.

Pulling it all together, within three years Mineral Resources and Pilbara Minerals will have similar spodumene production and Mineral Resources will be producing three times more lithium hydroxide.

Emma Fisher, Airlie Funds

More value outside the Pilbara Minerals share price?

After mapping out forecasts, the Airlie Funds portfolio manager deduces that Mineral Resources would likely be making more money from lithium than Pilbara Minerals 3 years from now.

Specifically, Fisher estimates it would be around $1 billion in earnings before interest, tax, depreciation, and amortisation (EBITDA) for Mineral Resources. Whereas the pure-play lithium company has a FY24 EBITDA forecast of $569 million.

As a result, Mineral Resources would be valued at 7 times FY24 EBITDA. Meanwhile, the Pilbara Minerals share price puts a near 13-times valuation on the company’s FY24 EBITDA. This stark difference in valuations is only exacerbated once we account for Mineral Resources’ other businesses.

Importantly, Fisher notes that Minerals Resources’ mining services and iron ore businesses are being ascribed little to no value. This is despite the iron ore business pulling in $1.5 billion of EBITDA last year.

Finally, Emma Fisher is not alone in seeing value in Mineral Resources. Analysts from Macquarie Group hold Pilbara Minerals and Mineral Resources shares as their ASX lithium picks.

The Pilbara Minerals share price is up 437% in the past year. In contrast, the Mineral Resources share price is up only 50%.

The post How does the Pilbara Minerals (ASX:PLS) share price compare to Mineral Resources? appeared first on The Motley Fool Australia.

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• ASX 200 lithium shares in focus amid China supply shortage
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Motley Fool contributor Mitchell Lawler owns shares of Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BrainChip Holdings Ltd (ASX: BRN) share price has started the week deep in the red.

In morning trade, the artificial intelligence technology company’s shares are down 9% to 55 cents.

Why is the BrainChip share price sinking?

The BrainChip share price has come under pressure on Monday after announcing the appointment of its new Chief Executive Officer (CEO).

According to the release, the company has appointed Sean Hehir as its new CEO, with effect from 29 November 2021.

He will be replacing former CEO Louis DiNardo who left the company suddenly in March after leading the company for four and a half years.

The release advises that Mr Hehir is a proven technology executive with significant experience in driving revenue growth for technology organisations. This includes sales-based executive roles with Compaq, Fusion-io, and HP.

He will be tasked with guiding the company towards full commercialisation of the Akida neuromorphic computing platforms out of the Aliso Viejo office in California.

Why the poor reaction?

Judging by the BrainChip share price performance today, it appears that investors were hoping for a more experienced CEO or one with a background in artificial intelligence.

Nevertheless, BrainChip’s Founder and Interim CEO Peter van der Made was pleased with the appointment.

He said: “As outgoing (interim) CEO, I welcome Sean to the company and am happy to hand over the reins of a world-class company that is in an excellent position to commercialize our unique product that is years ahead of the competition. We have every confidence that Sean is the right executive to guide BrainChip into the future, to make sound decisions about the business opportunities before us and ignite industry enthusiasm for the new AI capabilities that are made possible by Akida.”

“After more than a decade of R&D and design, he will lead the shift into commercialization and bringing new technologies to life, which has long been our vision,” he added.

The BrainChip share price is up almost 30% in 2021.

The post Why the BrainChip (ASX:BRN) share price is sinking 9% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price is edging lower in morning trade, down 0.4% to $3.96 per share.

The S&P/ASX 200 Index (ASX: XJO) is heading the other way, up 0.3% after briefly dipping into the red on opening.

That’s this morning’s price action.

Below we look at the telco giant’s latest foray into the world of artificial intelligence (AI).

What AI plans are in the pipeline?

According to Telstra’s head of product and technology, Kim Krogh Andersen, every week sees the company connect another 5,000 internet of things (IoT) devices. These range from ‘smart’ household appliances to broader home monitoring and environmental control systems.

As the Australian Financial Review reports, this vast amount of new data is driving a surge in demand for a limited supply of tech savvy employees.

Which brings us to Telstra’s new joint venture (JV) with data and analytics company Quantium, 75% owned Woolworths Group Ltd (ASX: WOW).

Telstra’s CEO, Andy Penn said the JV will speed up the telco’s adopted of AI, and aid in its recruitment efforts of tech talent “eager to work on some of the biggest data sets in the country”.

According to Penn (quoted by the AFR), “There is an absolute war for talent, and this talent in particular. But the single biggest defining difference is the data science problems that those people get to come and work on and to solve.”

Penn continued:

We will effectively identify the problems and the projects that we can work jointly on, and then we’ll apply our respective resources to go solve them. This is about accelerating what we’re already doing, but accelerating it by partnering with these guys, who are absolutely world-leading in the work that they’re doing.

Commenting on the JV with Telstra, Quantium’s CEO, Adam Driussi said, “What we need to be careful of is how we deploy our resources. So, we’re not looking to do one-off small projects with a whole series of clients. We’d rather have big, deep partnerships with leading brands and that’s the way that we can then really work on the biggest problems for those clients.”

Telstra share price snapshot

The Telstra share price is up 31% in 2021, compared to the 12% year-to-date gain posted by the ASX 200.

Over the past month, Telstra shares have gained 3%.

The post Telstra (ASX:TLS) share price edges lower amid new AI joint venture appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price is in the green today despite heightened competition from another Australian airline.

Regional Express Holdings Ltd (ASX: REX) announced this morning it will add Brisbane to its domestic network.

The domestic airline’s chair stated he expects the new offering will force Qantas to drop the prices of its flights between the cities.

At the time of writing, the Qantas share price is $5.69, 0.71% higher than its previous closing price.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.27% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) has gained 0.35%.

Additionally, the Rex share price has gained 5.07% to trade at $1.56 this morning.

Let’s take a closer look at what the new competition might mean for Qantas.

Qantas’ increased competition

The Qantas share price is up despite new competition taking off in Australia’s ‘golden triangle’.

Rex will be operating double-daily flights between Brisbane and Melbourne from 17 December. Ticket prices will start at sale rates of $79 each.

The airline’s launch into the lucrative market between Melbourne, Sydney, and Brisbane has been its long-stated goal.

Rex deputy chair the Honourable John Sharp AM noted the impact today’s news could have on Qantas:

Every time we’ve entered a new market, airfares have fallen dramatically as Qantas and Virgin Australia scramble to match our prices and I have no doubt this will be the case again.

Both Brisbane Airport Corporation CEO Gert-Jan de Graaff and Melbourne Airport chief of aviation Lorie Argus agree Rex’s new offering will increase competition between airlines operating the popular Australian route.

Sharp also commented that Rex offers better value for money than other low-priced airlines, such as Qantas’ Jetstar:

Rex is a full service airline so these fares represent incredible value. Unlike our competitors, Rex passengers don’t get slugged with hidden or extra costs as all fares on our domestic jet network include free 23kg checked baggage and refreshments on board.

While it’s unlikely the news is weighing on the Qantas share price today, market watchers may want to keep an eye out for more planned growth from Qantas’ domestic competitor.

Rex has ambitions to continue adding new routes to its offerings, particularly in Queensland.

Qantas share price snapshot

Right now, the Qantas share price is flat compared to this time last month.

However, it is 15% higher than it was at the start of 2021.

The post Qantas (ASX:QAN) share price gains as Rex ramps up competition appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) lithium shares are under the spotlight as China is reportedly facing a supply shortage.

Analysts bullish on ASX 200 lithium shares

According to reporting by The Australian, analysts at Macquarie Group Ltd (ASX: MQG) are even more confident on the prospects about the lithium miners on the ASX as there is reportedly a lithium shortage in China.

This shortage is due to a “rebound in downstream demand and soft seasonal domestic supply as global demand grows”.

It was reported that Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN) were favoured picks as Australian-based lithium miners.

Pilbara was a preferred pick due to its near-term growth potential.

The Liontown Resources Limited (ASX: LTR) price target was lifted to $2 because of lower stage 2 and downstream funding, and the earlier start of Kathleen Valley.

Macquarie isn’t the only one pointing out the supply issues with the market.

Forbes recently ran an article warning that the shift to electric cars will stall if lithium supply can’t keep up with the forecast demand. The publication noted at report from GlobalData, a leading data and analytics company, said:

Western weaknesses in lithium-ion supply chains will slow electric vehicle adoption and demonstrate China’s dominance of the EV (electric vehicle) market.  With lithium prices set to rise throughout the next decade, the EV sector in the West will have to face rising battery costs. If they pass costs on to the consumer, EV adoption will likely accelerate at a slower rate than previously expected.

By 2026, EV output is expected to rise to 12.76 million cars a year. More than half of this total is expected to come from China.

How strong are lithium prices?

ASX 200 lithium shares, indeed all lithium stocks, make money from the price they can get for the lithium they are producing.

Pilbara has been tapping the Battery Material Exchange (BMX) to auction some of its lithium.

The second time the company used BMX, the highest bid it received was US$2,240 per dry metric tonne (dmt). It said that given the strong margins yielded through the BMX trading platform to date, Pilbara expected to channel more concentrate sales through the platform, including concentrate generated from the recommencement of the Ngungaju processing plant.

At the third auction, a cargo of 10,000 dmt at a target grade of 5.5% lithia was presented for sale on the digital platform, with a deferred delivery date in February 2022. There was “strong” bidding by a range of buyers. Pilbara Minerals said it intends to accept the highest bid of US$2,350 per dmt.

ASX 200 lithium share snapshot

In early trading on Monday, the Mineral Resources share price is up 2.4%, the Pilbara Minerals share price is up 2.5%, the Orocobre Limited (ASX: ORE) share price is up 0.5% and the Liontown Resources share price is up 1.9%.

Pilbara Minerals is ramping up its production to take advantage of these prices. In the three months to September 2021, it achieved record production of 85,879 dmt – up 11% quarter on quarter.

The post ASX 200 lithium shares in focus amid China supply shortage appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mesoblast limited (ASX: MSB) share price is starting the week on a very positive note.

In morning trade, the allogeneic cellular medicines developer’s shares are up 9% to $1.87.

Why is the Mesoblast share price surging higher?

Investors have been bidding the Mesoblast share price higher today following the release of an update on a phase three trial.

This relates to a trial of rexlemestrocel-L in 565 patients with New York Heart Association (NYHA) class II and class III chronic heart failure (CHF) with reduced ejection fraction (HFrEF).

According to the release, the results from the randomised, controlled phase three trial were presented as a late breaking presentation at the American Heart Association (AHA) annual Scientific Sessions.

The release explains that the new results show a significant relationship between the presence of systemic inflammation as quantified by high-sensitivity C-reactive protein (hs-CRP) and treatment benefit with rexlemestrocel-L on risk of cardiovascular mortality, heart attacks or strokes.

The trial’s co-principal investigator, Dr Emerson Perin, commented: “Cell therapy has the potential to change how we treat heart failure. This study addresses the inflammatory aspects of heart failure, which go mostly untreated, despite significant pharmaceutical and device therapy development.”

The study notes that a single dose of rexlemestrocel-L on top of standard of care reduced the incidence of heart attacks or strokes by 65% across all 537 NYHA class II or class III treated patients compared with standard of care alone.

Furthermore, compared with standard of care alone, a single dose of rexlemestrocel-L on top of standard of care reduced the incidence of cardiovascular death, heart attacks, or strokes by 33% across all 537 NYHA class II or class III patients.

Though, as previously reported, compared with standard of care alone, the addition of rexlemestrocel-L did not further reduce the frequency of hospitalisation for worsening HF symptoms.

Despite today’s gain, the Mesoblast share price remains down 20% in 2021.

The post Mesoblast (ASX:MSB) share price surges 9% higher on trial update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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BHP Group Ltd (ASX: BHP) shares have come under pressure amid falling iron ore prices.

Indeed, after hitting record prices of US$237 (AU$324) per tonne back in May, iron ore is currently trading for US$90 per tonne, down some 62%.

Those falls have seen BHP shares slide 24% over the past 6 months. But the S&P/ASX 200 Index (ASX: XJO) mining giant’s CEO, Mike Henry, remains bullish on the global economic outlook.

And he’s confident that China’s not about to stop producing record amounts of steel.

Reasons for optimism

Addressing BHP shareholders at the company’s annual general meeting (AGM), Henry ran through the list of growth opportunities on the horizon.

“The big trends unfolding in the world around us,” he said, “include population growth, rising living standards, electrification and decarbonisation. We want to grow in those commodities that stand to benefit greatest from these trends.”

To that end, Henry said that in the financial year gone by, BHP “invested more than US$5 billion in development, growth and exploration across our business.”

And on the sustainability front, he added, “We are also targeting net zero for our direct suppliers’ emissions from the provision of goods and services to BHP, also by 2050.”

How BHP shares can still benefit from Chinese demand

While iron ore prices have plummeted from their May records, Henry noted that the metal is still trading at historically high levels. And he said Chinese demand for the core steel-making ingredient remained strong.

Speaking after the AGM, Henry said (quoted by The Australian):

Of course, with high energy prices we’re seeing some inflation. But that hasn’t changed our very positive outlook for global economic growth. Our medium-term outlook for the recovery from COVID-19 is still for strong economic growth…

The Chinese steel industry will produce a billion tonnes of steel for the second year running, and our outlook for the Chinese economy does remain very positive.

How have BHP shares been performing?

Over the past 12 months BHP shares are up 3%. That compares to a 15% gain posted by the ASX 200 in that same time.

The BHP share price is down around 3% since this time last month.

The post Own BHP (ASX:BHP) shares? Here’s why the company is still bullish on China appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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