2 Mining Stocks – S32, BHP

As the mining sector has been outperforming the market since a couple of years now, the investors are seeking satisfactory earnings, and with companies having strong balance sheet there are still buying opportunities with some of the mining sector stocks like the ones mentioned here:

South32 Limited (ASX: S32) – The company says climate issues are affecting investment decisions as public concern over climate change has made it critical to be open and transparent about related risks and opportunities. The company coupled detailed climate risk disclosures with actions to reduce exposure which is in line with the recommendations from the G20’s Task Force on Climate related Financial Disclosures. However, the completion of acquisition of Eagle Down metallurgical coal project in Queensland in September and the acquisition of Arizona Mining, owner of the silver, lead, zinc Hermosa project in Arizona has been supported by the group’s cashflow position. With 16% rise in the underlying earnings of 1.3 billion dollars, the company posted the revenue of 7.5 billion dollars posted. There was 8% rise in statutory profit of 1.3 billion dollars, the return on invested capital was recorded at 13.5% and 53% of total shareholder returns. During the September 2018 quarter, net cash balance decreased to US $679 m by 50% from US $1362m. The stock is trading up by 0.277% at $3.620 as at October 31, 2018. However, the stock has witnessed a performance change of 6.47% over the past 12 months. 

BHP Billiton Limited (ASX: BHP) – The company earlier reported that its underlying profit increased by 33% up to US$8.9 billion with dividend of US 63 cents per share being recorded and free cash flow of US $12.5 billion. Driven by Underlying profit increasing by 33 percent to US$8.9 billion. The market cap of BHP was recorded at $98.92bn, with price to earnings ratio (P/E) of 34.210x as on October 31, 2018 and earnings per share (EPS) of 0.942 AUD represent a comparatively higher ratio. Recorded dividend of US 63 cents per share is another reason to look at the stock with an annual dividend yield of 4.94%. In total the company returned US$6.3 billion to shareholders. The company is focused on high quality, low cost assets that generate strong cash flows through the cycle, and the capex is below US$8 billion for FY2019 and FY2020. The stock is trading at $32.210 as at October 31, 2018. However, the stock has witnessed a performance change of 20.99% over the past 12 months.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

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