ASX growth shares offering substantial upside could be compelling ideas to look at this month, according to investment experts.

Many business valuations are now cheaper this year after heavy declines amid concerns about inflation and interest rates.

A lower price may not necessarily make an ASX share more worthwhile buying, but it could be a good idea to think about investments that are rated as buys right now.

The below two shares are not the most well known, but they are growing at an attractive rate which experts like.

NextDC Ltd (ASX: NXT)

NextDC describes itself as Asia’s most innovative data centre as a service provider. It says it’s building the infrastructure platform for the digital economy, “delivering the critical power, security, and connectivity for global cloud computing providers, enterprise, and government”.

One of the brokers that rates NextDC as a buy is Macquarie, with a price target of $13.90. That implies a potential rise of more than 30% on the current NextDC share price of $10.36.

The broker thinks NextDC has an attractive addressable market in both metropolitan locations and regional areas.

The NextDC FY22 half-year result was better than what Macquarie had been expecting. NextDC’s underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 29% to $85 million, while earnings before interest and tax (EBIT) jumped 59% to $31.3 million.

The ASX growth share increased its underlying EBITDA guidance range when it released its HY22 result to $163 million to $167 million, up from $160 million to $165 million.

NextDC’s CEO and managing director Craig Scroggie said:

NextDC is in an outstanding position to take advantage of current and future customer opportunities and to press its advantage into new regions and edge locations.

Superloop Ltd (ASX: SLC)

Superloop says its purpose is to “enable better internet for Australian homes and businesses, by enabling challenger retail brands (including Superloop and Exetel brands) to take a larger share of the market, leveraging Superloop’s infrastructure-on-demand platform”.

Its three segments of the market — consumer, business, and wholesale — all leverage the company’s investments in physical infrastructure assets that include fibre, subsea cables, and fixed wireless, as well as its software platforms.

Morgans rates the ASX growth share as a buy, with a price target of $1.37. That implies the Superloop share price — currently 69 cents — could double over the next year.

Last month, Superloop announced it was acquiring Acurus, a white label and technology business, allowing Superloop to expand its “white label broadband relationships and profitable growth in its subscriber base”.

The Acurus business provides technology services to businesses such as Energy Australia, Wesfarmers Ltd (ASX: WES)’s Officeworks, and Bakers delight. The initial cost for this deal is $15 million.

Superloop also noted the ongoing organic growth of the business.

In the fourth months to 30 April 2022, Superloop said it achieved net subscriber growth of 7,300 in the consumer division, compared to 6,100 in the six months to 31 December 2021.

The ASX growth share also noted that it has 19,300 subscribers on its Connect platform, up from 11,600 at 31 December 2021.

Superloop is expecting to generate EBITDA of between $23 million and $25 million, up from $18.2 million in FY21.

The post 2 ASX growth shares to buy this month: experts 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 positions in and has recommended SUPERLOOP FPO. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Core Lithium Ltd (ASX: CXO) share price is rebounding today following two consecutive days of being heavily sold off.

Over Tuesday and Wednesday, the lithium producer’s shares fell 7.3% while the S&P/ASX All Ordinaries Index (ASX: XAO) dipped 5.1%.

At the time of writing, Core Lithium shares are powering ahead by 6.09% to $1.22.

Core Lithium shares recover lost ground

ASX investors are bidding up Core Lithium shares despite no announcements from the company today.

With lithium prices stable, it’s likely that bargain hunters are swooping in after the recent share price fall.

Confidence in the lithium sector took a dive this month on the back of a Goldman Sachs’ analysis.

The global investment powerhouse released a bearish report forecasting the price of lithium will tumble to US$16,000 in 2023.

This sent shockwaves throughout the battery metals market and made ASX investors panic.

A number of lithium companies pushed back on the report saying they believe lithium demand is here to stay.

It’s no secret that Core Lithium will need to play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

The company has been developing its wholly-owned Finniss Lithium Project.

Last month, Core Lithium provided an update advising it will have its first production of lithium concentrate in Q4 2022.

Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia.

The Australian Government has highlighted how critical it is to have this capability within the country.

Core Lithium share price summary

Regardless of the turbulent month, the Core Lithium share price has soared by 388% in the past 12 months.

Year-to-date, its shares are up 94%.

Core Lithium presides a market capitalisation of $1.99 billion and has approximately 1.73 billion shares outstanding.

The post Why is the Core Lithium share price surging 6% on Thursday? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs. 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 Scott Phillips.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. The benchmark index is currently up 0.4% to 6,625.7 points.

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

Link shares sink

The Link Administration Holdings Ltd (ASX: LNK) share price is falling hard on Thursday. Investors have been selling the administration company’s shares for a couple of reasons. One is news of legal action against it and the other is the prospect of its takeover collapsing. The latter has been driven by ACCC concerns over the deal. And with the Link share price now trading 35% below the offer price, it seems as though the market believes the deal is now dead.

BHP to retain NSW coal assets

The BHP Group Ltd (ASX: BHP) share price is under pressure today after the mining giant revealed that it has failed to offload its New South Wales based coal operations. The Big Australian will instead retain the operations and aims to keep them running until 2030. After which, BHP will spend 10 to 15 years and US$700 million rehabilitating the land.

Eagers Automotive’s $250 million buyback

The Eagers Automotive Ltd (ASX: APE) share price is racing higher today. This follows news that the auto retailer plans to buy back up to 10% of its shares on-market over the next 12 months. The value of this buyback equates to approximately $250 million based on the current Eagers Automotive share price. Management said that this reflects the board’s prudent focus on active capital management and is a testament to the company’s strong balance sheet.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Appen Ltd (ASX: APX) share price with an 11% gain. This is despite there being no news out of the artificial intelligence data services company. Going the other way, the worst performer has been the Link share price with a 10% decline following its aforementioned disappointing updates.

The post ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks appeared first on The Motley Fool Australia.

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More reading

• Why I think the BHP share price is a good buy for the long term
• Westpac says consumer confidence is falling. Could this actually be good news?
• BHP share price pushes higher despite coal sale fail
• Double whammy: Link share price sinks 9% amid ACCC probe, litigation news
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike

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 positions in and has recommended Appen Ltd and Link Administration Holdings Ltd. 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 Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

On one of the better days for the stock market in recent times, Amazon (NASDAQ: AMZN) was a standout. On a general resurgence in tech stocks and a very positive new analyst note, the giant online retailer’s stock zoomed more than 5% higher on Wednesday, easily topping the 1.5% gain of the bellwether S&P 500 index.

So what

The tech rally was certainly a tailwind for Amazon at the end of the day, but investors were probably more encouraged by that research note. It was written by JPMorgan Chase analyst Doug Anmuth, who shared a very heartening update on the company’s Prime loyalty program.

Following what he calls a “deep dive” into Prime’s present and future, Anmuth came up with a new estimate of the program’s value to its subscribers. All told, according to his calculations, Prime membership confers roughly $1,100 in annual benefits, such as free shipping and savings on items like drug prescriptions. This makes it quite the compelling value proposition even at the recently increased rate of $139 per year.

It also makes it an increasingly more attractive add-on for Amazon customers. Again according to his estimates, Anmuth says those yearly benefits totaled around $1,000 in 2020, and only approximately $544 in 2016.

Now what

Not surprisingly, the prognosticator is very bullish on Amazon stock. With his new take, he’s maintaining his overweight (buy) recommendation on it, at a price target of $200 per share. This level is nearly double that of the stock’s most recent closing price, even after Wednesday’s pop. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Amazon stock crushed the market today appeared first on The Motley Fool Australia.

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Eric Volkman has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The BHP Group Ltd (ASX: BHP) share price has been volatile over the last year. But I think it’s shaping up to be a long-term opportunity due to its portfolio of commodities.

BHP is one of the biggest resource businesses in the world, though it’s now a bit smaller after divesting its oil and gas business to Woodside Energy Group Ltd (ASX: WDS).

Oil and gas still have their place in the world, particularly in the current global energy situation. However, eventually, there may be a transition away from fossil fuels, so it was probably a good idea for BHP to divest while prices are good for those commodities.

I do like the look of what’s left within the ASX mining share’s commodity portfolio and this is what attracts me to BHP’s share price as a long-term idea.

Decarbonisation

Many countries and governments around the world are working on decarbonising and electrifying.

As BHP says, it’s “actively managing” its portfolio for long-term value creation through the cycle.

There are three ‘future-facing’ commodities that BHP is focused on – copper, nickel, and potash.

Media group Reuters reported on comments made by BHP’s chief commercial officer, Vandita Pant, at the FT Commodities Asia Summit late last year. She said:

Some of the modelling that we have done showed that in, let’s say a decarbonised world … the world will need almost double the copper in the next 30 years than in the past 30.

And for a commodity like nickel, that quadruples. So four times nickel needed for the next 30 years than the past 30 years and all to be done as sustainably as possible.

Why are copper and nickel so important for decarbonisation? Nickel is an important commodity for use in electric vehicle batteries. Copper is used for various electrical wiring including inside the electrical vehicle, the charging stations and other renewable energy infrastructure, as noted by Bloomberg.

In terms of its copper resources, BHP says it has the “largest resource endowment of any company globally, and amongst the highest average grade”.

BHP also says it has the second-largest nickel sulphide resource with around 90% of nickel metal sales to the electric vehicle supply chain.

I think BHP has built a very useful commodity portfolio which can help the BHP share price for many years to come.

Potash

The Jansen project in Canada is a key focus for growth for the business. Potash is seen as a lower-emission fertiliser.

BHP says there is significant expansion potential to support up to a century of production in the world’s “best” potash basin.

Management calls Jansen a world-class asset which increases the diversification of the business, customer base and operating footprint.

The demand for potash is expected to grow thanks to “reliable base demand leveraged by population growth and higher living standards”.

BHP believes Jansen will enter the market at the bottom of the global cost curve, delivering 4.35 million tonnes per annum.

The company points to structural competitive advantages for Jansen such as using around 60% less equipment to deliver lower costs, a shaft designed to be 25% to 50% larger than competitors (supporting low capital intensity expansion options), leading equipment and material handling systems, and a continuous, automated loading system.

Final thoughts on the BHP share price

BHP is certainly not a hidden gem. It’s the biggest business on the ASX. But, I think its exposure to commodities with growth potential is attractive for the long term, while iron ore generates big cash flow and dividends in the short term.

The post Why I think the BHP share price is a good buy for the long term appeared first on The Motley Fool Australia.

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• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
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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 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 Scott Phillips.

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The Treasury Wine Estates Ltd (ASX: TWE) share price has whipsawed in 2022, trading as high as $13.20 and as low as $10.54 in that time.

It has danced between $11 and $12 from March to May and it’s down 11.8% this year to date (below). It’s been trending down since 31 May and today, the Treasury Wine share price is $10.88 — down 0.37% for the day so far.

Analysts stacked on the buy side

Over the past 12 months, the number of buy calls on Treasury Wine has crept upwards. Currently, 58% of brokers covering the stock have it rated as a buy, according to Bloomberg data.

That’s crept up from 33% this time last year.

Another 37% have it rated a hold — that number reducing from roughly 46% a year ago. In terms of price targets, an Evans and Partners note from November 2021 lists a valuation for Treasury Wine of $14.60.

However, a June note from Credit Suisse has it valued at $13.50 per share. Jefferies valued it at $14.50 apiece earlier this month as well.

Macquarie and Goldman Sachs are both neutral at $12.55 and $11.90 respectively.

Those at Barrenjoey aren’t a fan. The team rates the Treasury Wine share price underweight on a $9.50 price objective in May. This is the only sell rating.

The consensus price target is $13.17 from this list. That suggests about a 20% potential upside.

Treasury Wine share price snapshot

In the past 12 months, Treasury Wine stock has slipped about 9.5% into the red. From its 52-week high, it has slipped 18%.

That means it must gain about 23% to return to its former highs. Moreover, there’s no telling how long this volatility will last.

The post Despite recent volatility, brokers are bullish on the Treasury Wine share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Yesterday, Westpac Banking Corp (ASX: WBC) unveiled Australia’s consumer confidence measurement for June.

A combination of persistent inflation and more expected interest rate increases significantly dampened the average consumer’s sentiment in the latest quarter. The unsettling data was accompanied by further weakness in the S&P/ASX 200 Index (ASX: XJO), as the benchmark sunk another 1.27% on Wednesday.

At face value, the consumer sentiment index hitting recessionary lows is worrisome. Though, there might be a silver lining to be found.

Let’s dive deeper into the data.

How bad is it?

The consumer sentiment index, often referred to as consumer confidence, is an economic indicator that aims to convey how consumers are feeling about their financial situation. In short, it’s an approximate reflection of how likely people are to spend their money.

Consumers are more likely to spend their money on goods and services when they are optimistic about their financial future. In contrast, consumers are more likely to tighten their belts during economic uncertainty.

According to the June report, consumer confidence in Australia fell 4.5% from the prior quarter to 86.4. A reading below 100 is considered a pessimistic outlook held by the consumer.

The deterioration in sentiment follows the Reserve Bank of Australia (RBA) lifting the cash rate by 50 basis points on 7 June, making debts more expensive in the process.

Westpac chief economist Bill Evans highlighted that this figure is in close proximity to some of the worst financial periods for the country. In the June report, Evans stated:

Over the 46-year history of the survey, we have only seen Index reads at or below this level during major economic dislocations. The record lows have been during COVID-19 (75.6); the Global Financial Crisis (79.0); early 1990s recession (64.6); the mid-1980s slowdown (78.7) and the early 1980s recession (75.5). Those last three episodes were associated with high inflation; rising interest rates; and a contracting economy – a mix that may be threatening to repeat.

Additionally, consumers are likely putting off household purchases, based on the report’s findings. The ‘time to buy a major household item’ sub-index slipped 3.3% to 89.5. Such a number has only been recorded prior to a severe economic contraction.

Potential positive in Australia’s falling consumer confidence

The consumer confidence data might sound like a lot of doom and gloom, but perhaps there’s a bright side.

Ultimately, the RBA is jacking up interest rates in a bid to tame the raging beast that is inflation. In a sentence, inflation is the evaporation of our dollar’s purchasing power due to increasing prices.

This can either be attributable to increased demand (more dollars competing for the same number of goods/services), or reduced supply (the same amount of dollars competing for a smaller number of goods/services).

While both supply and demand are creating issues, interest rate increases ‘force’ consumers to spend less on inflationary items, and more on debts.

Essentially, the fall in consumer confidence might be an early sign that the RBA’s rate hike is starting to work on lowering inflation. If so, it might mean Australia won’t require the feared interest rates of 3% to 4% to bring inflation back in line.

AMP chief economist Shane Oliver noted this in a tweet yesterday, as shown below.

Aust Westpac/MI consumer confidence -4.5% in June to a well below average 86.4% and rising cost of living/rising rates impact. Broad based falls in components but particularly in “family finances”. This will ultimately cap how much rates can rise… pic.twitter.com/aKu3cR2K7Z

— Shane Oliver (@ShaneOliverAMP) June 15, 2022

https://platform.twitter.com/widgets.js

As Oliver states, the notable collapse in consumer confidence in Australia hints at an upper bound for interest rates.

Much of the share market is pricing in peak interest rates of ~4%. If Oliver is right, a lower peak in rates could result in a more positive outlook for equities.

The post Westpac says consumer confidence is falling. Could this actually be good news? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 Scott Phillips.

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The Humm Group Ltd (ASX: HUM) share price is sliding on Thursday. It comes as the battle to sell the company’s consumer finance leg – housing its buy now, pay later (BNPL) business – heats up.

The company’s director and largest shareholder Andrew Abercrombie – who opposes the sale of the company’s consumer finance segment – has labelled the transaction “nothing but a garage sale”. He urged the company’s board to inform shareholders of the sale’s falling value yesterday afternoon.

However, Humm chair Christine Christian noted the segment has been underperforming in 2022 and will continue to struggle if not sold.  

At the time of writing, the Humm share price is 65 cents, 3.7% lower than it was at its previous close. However. it was up by almost 4% at 70 cents in early trade before retreating.

Let’s take a closer look at the clash emerging over the future of Humm’s BNPL business.

Directors disagree on proposed BNPL sale

The Humm share price is sinking on Thursday as Abercrombie continues his campaign against the sale of the company’s consumer finance business despite its tumbling earnings.

In a trading update released to the market this morning, the finance provider outlined the extent of the segment’s suffering.

Its cash net profit after tax plummeted 61% over the fiscal year to date to May. Meanwhile, its net receivables slipped 3.6% between 31 December and 31 May.

 â€œThe trading environment is very tough for [Humm consumer finance], with intense competition, rising interest rates, and weakening consumer sentiment,” Christian told the market.

“Without enhanced scale, which the [Latitude Group Holdings Ltd (ASX: LFS)] transaction will deliver, the outlook for [the segment] will be even more challenging.”

The company has previously flagged not selling the business could pose a “significant risk” for the Humm share price.

Latitude has offered Humm shareholders $35 million cash and 150 million Latitude shares in exchange for the business. When the offer was initially tabled, the scrip portion of the sale was valued at $300 million.

However, the Latitude share price has since fallen 25%. As of its previous close, the offer is, therefore, valued at around $225 million.

Yesterday Abercrombie reconfirmed his belief that the proposed transaction was “a dud deal from the very beginning”.

He continued: “[It] undervalu[es] what I believe is a great business which the very same board confirmed was profitable just seven months ago.”

Abercrombie is calling for the company to outline the current value of the transaction. He says doing so will allow shareholders to place an informed vote when they go to the ballots on the sale next week.

“When I speak to shareholders, some of them continue to believe that the consideration payable by Latitude is worth $335 million,” he said.

“I think it is only fair for the chair to inform all shareholders of this huge drop in value.”

Humm share price snapshot

The Humm share price is currently 27% lower than it was at the start of 2022. It has also slipped 36% since this time last year and is down 5% over the past month.

The post ‘A dud deal’: Why is the Humm share price falling on Thursday? 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 recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Chalice Mining Ltd (ASX: CHN) share price has nosedived by more than 60% since November but it’s captured the attention of investors today.

Chalice Mining opened strongly, rising to $4.11 shortly after the open. This was 6.5% higher than its previous close. It has since settled at a gain of 4% with shares trading at $4.01.

In wider market moves, the S&P/ASX 300 Metals & Mining (ASX: XMM) index is up 1.75% today.

What’s up with the Chalice Mining share price?

Chalice Mining shares have been gliding downwards in a persistent trend since November 2021. Since that time, Chalice Mining shares have lost more than 60% of its value.

The shares rapidly declined from 20 May and also suffered during the wider market sell-off in recent weeks.

An institutional placement in May saw the company raise $100 million. However, market pundits weren’t impressed, as seen on the chart.

But investors are piling into Chalice Mining today in sync with the mining index, suggesting broad sector strength.

Notably, commodity markets for most metals are rallying in today’s session. Copper is up 1.27% and steel is up by 1.57%. Nickel is up 2.39% and gold has dipped 0.02%.

Metal prices remain buoyant amid an ongoing commodity boom.

In the past 12 months, the Chalice Mining share price has slipped 49% into the red.

The post Chalice Mining share price spikes 6%, reversing series of losses appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price is pushing higher this morning.

At the time of writing, the mining giant’s shares are up over 1% to $44.43.

While this is positive, it is a touch softer than the gains being made by some of its large cap rivals.

What’s going on with the BHP share price?

The relative underperformance of the BHP share price today in comparison to its peers may have been driven by news that the Big Australian will not be selling its New South Wales Energy Coal (NSWEC) portfolio.

Following a coal divestment review, the mining giant appears to have decided that holding onto these assets would create more value than selling them even if it ruffles the feathers of some of its ESG-focused shareholders.

This follows a trade sale process for NSWEC that was conducted but did not result in a viable offer being tabled.

According to the release, an assessment of the resource economics, geotechnical profile, and future investment requirements determined that continued mining in the near term and moving to a closure in 2030 provides the optimal financial outcome when compared to alternate options.

Though, plans to continue operating NSWEC to FY 2030 are subject to obtaining relevant approvals to enable mining beyond the current consent of 2026. Work is now underway to prepare the application for the relevant approvals with the New South Wales and Australian governments.

BHP advised that this will include plans for closure of the operations, including rehabilitation and determining the most appropriate post-mining land use.

It is expected that continued work on rehabilitation will take 10 to 15 years following the cessation of mining. The provision for closure of the mine as at 31 December 2021 was approximately US$700 million.

Management commentary

BHP’s Minerals Australia President, Edgar Basto, commented:

We thoroughly reviewed potential options for NSWEC including divestment and future investment requirements. Seeking approval to continue mining until 2030 avoids closure in 2026 and enables BHP to balance the value and risk of those considerations and our commitments to our people and local communities.

NSWEC’s Vice President, Adam Lancey, added:

We will work with our people, local business partners, Traditional Owners and local and state governments to operate safely and productively, prepare for closure and sustainable rehabilitation of the site, and ensure the pathway to closure is managed in a way that meets community and regulatory expectations.

The post BHP share price pushes higher despite coal sale fail 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 Scott Phillips.

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