BHP Group Limited ASX BHP Stock performance Australia-based

 ASX: BHP

Australia-based resource business BHP Group Limited (ASX:BHP) mines and explores iron ore, copper, nickel, potash, and metallurgical (steelmaking) coal.

The materials company is concentrated on providing a variety of resources, including potash for sustainable farming, nickel for electric vehicles, copper for renewable energy, and iron ore and metallurgical coal for the steel required for the transition to a more sustainable form of energy and the world’s infrastructure. Coal, iron ore, and copper are among the segment of BHP.

On July 19, 2022, BHP had y shared (19 July 2022) an operational review for the year ended 30 June 2022.

Corporate update

In April 2022, a letter of intent was signed by BHP Group Limited ASX BHP with an aim to evaluate the creation of an iron ore Green Corridor between Australia and East Asia. Green Corridors are designated shipping routes where deploying zero, or nearly zero emission shipping is more economically, logistically, and technologically feasible and where deployment can be aided by focused government and business activity.

On May 3, 2022, BHP finalised the sale of its 80% stake in BMC to Stanmore Resources Limited. At completion, Stanmore Resources paid US$1.1 billion in cash plus an additional US$200 million in working capital as a preliminary completion adjustment.

BHP completed the acquisition of Woodside on 1 June 2022. To qualifying BHP shareholders, BHP distributed Woodside shares and paid a fully franked specie dividend. A rough estimate of the implied value of the in-specie dividend was US$19.6 billion, or US$3.86 per ASX BHP share.BHP paid Woodside a net cash payment of roughly US$0.7 billion as part of the completion.

Production update

The Big Australian reported that its FY 2022 copper output was 1,573.5kt, and its FY 2022 iron ore production was 253.2Mt. This was within the recommended range for iron ore and copper of 249Mt to 259Mt and 1,570Kt to 1,620Kt, respectively.

Update on Samarco

An English Court of Appeal recently permitted more than 200,000 Brazilian plaintiffs to launch a AU$8.8 billion class action against BHP for rupture in Samarco dam in 2015. BHP is currently requesting assistance from the Supreme Court with the Brazil dam dispute.

A total of 19 people lost their lives when the Fundao dam, which is under the control of the Samarco partnership between BHP and the largest iron ore mine in Brazil, Vale, fell.

Stock performance

Shares of BHP closed trading at AU$37.35 apiece, up 1.63% on ASX on Monday (25 July 2022). The company’s shares have fallen almost 12% on a YTD basis and decreased around 18% on a yearly basis.