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BHP Billiton Doles Out Initial Funding to South Flank Project
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BHP Billiton Limited (BHP - Free Report) approved an initial funding of $184 million for the South Flank project. The company affirmed that this central Pilbara project will not only generate construction jobs but will also help boost productivity in Western Australia.
Over the last three months, BHP Billiton’s shares have lost 6.98%, compared with the 8.13% decline of the Zacks categorized Mining - Miscellaneous industry.
Inside the Headlines
BHP Billiton’s South Flank project calls for the construction of a new ore deposit, which is located approximately 130 kilometers (km) away from the north-west of the Newman town and is roughly 8 km away from the company’s Mining Area C operation. The new deposit will be constructed to sustain aggregate iron ore production in the Western-Australian region as the company’s Yandi mine is anticipated to witness ramp down by early or mid-2020.
The company anticipates that the ramping up of activities at the South Flank deposit will overlap with the operations of its Yandi mine. Also, capital efficiency of the South Flank project is strengthened because it will include usage of Mining Area C operation’s premium infrastructure. The capital cost of the project is estimated at $30--$40 per ton.
Reasons for Underperformance
BHP Billiton currently carries a Zacks Rank #5 (Strong Sell). The company and its peers, VALE S.A. (VALE - Free Report) , Rio Tinto PLC (RIO - Free Report) and Glencore Plc (GLNCY - Free Report) , are currently under pressure due to the recent slump in iron ore prices. Over the last three months, iron-ore prices have dipped nearly 37.7% to $55.5 per ton as of Jun 26, 2017. An overall excess supply situation is weakening the prices of this major steel making component in the recent times.
Moreover, headwinds such as outbreak of natural disasters, excessive industry rivalry or unfavorable government mining and exploration policies might hurt performance of these stocks in the quarters ahead.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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BHP Billiton Doles Out Initial Funding to South Flank Project
BHP Billiton Limited (BHP - Free Report) approved an initial funding of $184 million for the South Flank project. The company affirmed that this central Pilbara project will not only generate construction jobs but will also help boost productivity in Western Australia.
Over the last three months, BHP Billiton’s shares have lost 6.98%, compared with the 8.13% decline of the Zacks categorized Mining - Miscellaneous industry.
Inside the Headlines
BHP Billiton’s South Flank project calls for the construction of a new ore deposit, which is located approximately 130 kilometers (km) away from the north-west of the Newman town and is roughly 8 km away from the company’s Mining Area C operation. The new deposit will be constructed to sustain aggregate iron ore production in the Western-Australian region as the company’s Yandi mine is anticipated to witness ramp down by early or mid-2020.
The company anticipates that the ramping up of activities at the South Flank deposit will overlap with the operations of its Yandi mine. Also, capital efficiency of the South Flank project is strengthened because it will include usage of Mining Area C operation’s premium infrastructure. The capital cost of the project is estimated at $30--$40 per ton.
Reasons for Underperformance
BHP Billiton currently carries a Zacks Rank #5 (Strong Sell). The company and its peers, VALE S.A. (VALE - Free Report) , Rio Tinto PLC (RIO - Free Report) and Glencore Plc (GLNCY - Free Report) , are currently under pressure due to the recent slump in iron ore prices. Over the last three months, iron-ore prices have dipped nearly 37.7% to $55.5 per ton as of Jun 26, 2017. An overall excess supply situation is weakening the prices of this major steel making component in the recent times.
Moreover, headwinds such as outbreak of natural disasters, excessive industry rivalry or unfavorable government mining and exploration policies might hurt performance of these stocks in the quarters ahead.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks ""Strong Sells"" absolutely free >>