BHP Billiton

⛏️ Titans of the deep: Rio, Glencore, BHP, Vale - who will dig up the biggest profits? 💎

Company presentation

Rio Tinto, BHP and Vale are among the three largest iron ore producers in the world, while Glencore plays a key role in global commodity trading as a leading commodity trader and producer.

- Rio Tinto: An Anglo-Australian mining group with dual headquarters in London and Melbourne.

- BHP: Australia's largest industrial group, headquartered in Melbourne.

- Glencore: A Swiss commodities trading and mining company headquartered in Baar.

- Vale: A Brazilian mining group specializing in iron ore.

Historical development

Rio Tinto was founded in 1873 and developed into a global mining giant through the development of deposits in Africa, Australia and Canada. The current structure as a dual company was created in 1995.

BHP goes back to Charles Rasp's silver discovery in Broken Hill in 1883. With the diversification into iron ore, coal and oil and the merger with Billiton in 2001, BHP created one of the world's largest commodity groups.

Glencore, founded in 1974 as Marc Rich + Co AG, grew to become one of the most important commodity traders in the world and went public in 2011.

Vale was founded in 1942 as a state-owned company and privatized in 1997. The company's focus has always been on iron ore production in Brazil.

Business model and core competencies

Rio Tinto focuses on the extraction of iron ore, copper, aluminum and other metals. Efficient production and the operation of large-scale mines are among the company's core competencies.

BHP is active in the iron ore, copper, coal and oil sectors and has a diversified product range and an extensive global presence.

Glencore combines commodity production and trading and controls the entire value chain, from extraction to distribution. This vertical integration is one of the company's greatest strengths.

Vale specializes in iron ore exports, complemented by activities in nickel and copper.

Future prospects and strategic initiatives

- Rio Tinto is increasingly investing in copper, lithium and aluminum, which play a key role in electromobility and renewable energies.

- BHP is focusing on "future-proof" raw materials such as copper and nickel, which are needed for batteries and green technologies.

- Glencore is positioning itself as an important supplier to the battery industry and is investing in cobalt and nickel.

- Vale is increasing its involvement in the nickel business in order to benefit from the growing demand in the electric automotive sector.

Market position and competition

- Rio Tinto, BHP and Vale together control around 70% of the world's seaborne iron ore trade.

- Glencore is a leader in global commodity trading and is one of the largest producers of copper and cobalt.

Competition in this industry is focused on cost efficiency, the development of new resources and positioning in the growing market for metals that are essential for the energy transition.

Total Addressable Market (TAM)

The total addressable market (TAM) of the global mining industry is estimated at over USD 1.5 trillion. This figure is expected to rise further in the coming years, particularly due to the increasing demand for critical raw materials such as battery metals, which are essential for the expansion of green technologies.

Share performance

Mining company share prices are strongly linked to commodity prices, leading to high volatility. Glencore's TR over 5 years is 120%, Rio Tinto's TR is 92%, BHP's TR is 101% and Vale's TR is 116%.

For the development (company figures), a better view and more, check out the free blog: https://topicswithhead.beehiiv.com/p/titanen-der-tiefe-rio-glencore-bhp-vale-wer-gr-bt-den-gr-ten-gewinn-aus

Conclusion

Vale, BHP and Rio Tinto are not significantly different. Although BHP has clearly outperformed in some cycles, it has always subsequently adjusted to the average. Vale could be unfavorable from a regulatory perspective, but the industry is facing challenges anyway, and it's not as if the others are any better, as the mines are not exactly in the cleanest regions.

Looking at the individual stock data, BHP does seem like the best candidate, but I would never bet on just one when it comes to mining companies. Therefore, I would consider a combination of BHP and Rio Tinto, and if you want, you can also include Vale.

Glencore is large and well positioned, but the figures are not really convincing. Even after countless announcements about certain strategies, I don't like the results. The growth is impressive, but when the results deteriorate like this - especially in terms of sales - it doesn't help much. For me, Glencore is more of a trading candidate, as every year you experience a brief decline, then recover and then fall again.

So if you want to position yourself in mining and thus include the anti-cyclicals in your portfolio, it is best to look at BHP and Rio Tinto. In view of China's most important customer, however, you should also be aware that 50% of sales here also come from one country, which no longer seems so abnormal these days.

For myself, I am going with Vale, Rio Tinto and a possible entry into BHP as far as the situation allows. Entry prices for me are 24 euros for BHP, 10 euros for Vale and 60 euros for Rio Tinto and then down in 10-15% jumps.

$RIO (-0.88%)
$ABHPG
$BHP (-0.47%)
$VALE3 (+0.14%)
$GLEN (-0.84%)

Who $RIO (-0.88%) missed it, here is another trade in the commodities sector:

$BHP (-0.47%) could get interesting at ~36.09 AUD.

Of course, the value can be pulled up by the strength of Rio and run away with it,

Nevertheless, the alarm is set.

Cheers from Vilnius🇱🇹

So, after my lukewarm stumble onto the stage of the community recently, now for real:

Hello everyone (friendly nods to all),

I've been a mostly silent reader for a while now, but I'd like to introduce myself - even if I don't know what I'm up to - in keeping with local custom:

I am 55 & a civil servant in the Federal Civil Service, which puts me in the fortunate position (I hope) of not having to rely on additional income from investments for a materially bearable retirement (in twelve years' time, I would just about reach retirement without deductions after 40 years in the civil service). Investment is therefore essentially a consumption alternative, a safety cushion and - later - intended for my sons (living with their mother, 17 & 13 years old; each with their own portfolios / savings plans). My investment horizon is therefore open ended (or determined biologically or by the legitimate major needs of the offspring).

My investment history - still perceptible in the portfolio presented here - begins in 1996/1997 with the first (and later unfortunately also the second) placement of the $DTE (+0.43%) T-share and the IPO of $PSM (-1.13%) ProSieben (which has since more than made up for its initial investment through dividends, good boy). At some point, he inherited the current e.on position from his grandparents $EOAN (+2.88%) e.on position and a position in $VOW3 (+0.25%) Volkswagen, which I sold several years later on the advice of my savings bank at the time (bygones).

Then nothing for a long time (studies/traineeship, career start - I was "investing in my current account" and couldn't even manage to process my business trip expenses on time, tststs).

With a wife and children came the need to make provisions (the little guys simply cost a tidy sum through the cycle), which I initially did through sporadic ad hoc investments:

In particular hubris, at the beginning of the subprime crisis I trusted the investment banks to have everything under control and bought shares in $DBK (-3.52%) Deutsche Bank (close to ATH), Bear Stearns and Merrill Lynch (the relics can be found as a minus at $BAC (+0.48%) Bank of America for Bear Stearns and - invisibly - a tax loss carryforward to offset the now quite respectable $JPM (+0.51%) J.P. Morgan position for Merrill Lynch), $DBK (-3.52%) with additional purchases slowly creeping back into a "perhaps at some point back to zero" zone.

Otherwise, a number of active funds ($n/a LU0557858130, $n/a LU1143163779, $n/a IE00BG7PHW03, $n/a LU1496713741, $n/a DE0008474750, $n/a GB0030932676, $n/a (-0.49%) LU1864952335 and predecessors), of which only $n/a (+0.15%) Pictet Water had actually performed noticeably positively on a time-weighted basis.

From around 2015, I then gradually started to populate the current portfolio with various equity and ETF savings plans at ING ($GOOG (+0.69%) Alphabet C, $AAPL (+0.77%) Apple, $KO (+0.75%) Coca-Cola, $NESN (-0.1%) Nestlé, $BAYN (+0.16%) Bayer (ouch!), $SIE (-0.85%) Siemens, $DIS (+0.04%) Walt Disney, $PFE (+0.6%) Pfizer, $PR1J (+0.56%), $FLXC (-1.96%), $FLXK (-0.02%), $EXS1 (-0.03%), $LCUK (+0.51%), $C060, $XMUS (+0.53%), $DBXW (+0.5%), mostly at 50 euros/month), supplemented by a few nicely timed individual purchases in $AAPL (+0.77%) , when it was still trading at around 80 euros before the 3:1 stock split, as well as $MT (-1.1%) AcelorMittal and $BHP (-0.47%) (mini position, but with a nice dividend yield since then).

With supply chain problems and inflation emerging at the end of corona/beginning of Ukraine, I then started to invest in another portfolio, the actually far too expensive $SPAG (+0.76%) iShares Agribusiness and $EXV6 (-0.26%) iShares STOXX Europe 600 Basic Resources as a hedge against the rising cost of living that had gone wrong (had bet on more pronounced sectoral greed-flation).

Since I have since followed the recommendations of $VWCE (+0.5%) resp. $ACWI (Glashaus!) in the meantime, the aggregated lump and the $AAPL (+0.77%) and $GOOG (+0.69%) was getting a bit scary, but I didn't want to touch the corresponding equity savings plans (more on this in a moment), I put my basic trust in the long-term out-performance of the US equity market into practice by investing in two "equal weight" index funds, namely with $WEBA (+0.5%) on the NASDAQ100 (also with a savings plan) and $XDEW (+0.69%) on the S&P500 (one-off investment only).

Some of this, especially the earlier investment history, is foreign to my Getquin portfolio history, as I only entered this after a portfolio reorganization in early 2023.

Over the years, my employer has steadily introduced stricter regulations for private financial transactions, which currently makes it practically impossible for me to invest in individual names or funds with certain predominant industry shares. However, in an exemplary manner under the rule of law, previously existing savings plans were protected in the respective iterations of the tightening, so that I jealously continue the remaining share savings plans (see above lump at $GOOG (+0.69%) and in particular $AAPL (+0.77%)).

I currently save monthly as follows (savings rate): Grandfathering: $GOOG (+0.69%) (100), $AAPL (+0.77%) (50), $DIS (+0.04%) (50), $PFE (+0.6%) (50), $KO (+0.75%) (50); "regular": $VWCE (+0.5%) (currently 520 with annual 4% dynamic), $SPAG (+0.76%) (100), $WEBA (+0.5%) (100), $EXV6 (-0.26%) (100), $10AJ (+0.69%) (100) and - before first-time execution - (100). $SDIP (-0.09%) (100).

In addition, I have reflected certain market assessments at the respective point in time through individual purchases in country ETFs (long-term catch-up potential of the emerging markets through $HMEF (+0.36%), $FLXC (-1.96%), $FLXK (-0.02%) - $FLXI (+2.25%) was now too expensive for me and the Indian economy was not sufficiently represented by companies listed there; the sleeping innovation giant Japan through $PR1J (+0.56%), "luxury always works" even in times of inflation through $DX2G (-0.33%)Europe - especially CH and UK - as a general counterweight to the US through $VEUR (+0.24%) and the sensible Nordics by $XNZN (+1.07%)), so that there is now a colorful bouquet of ETFs. However, I am not fundamentally dissatisfied with this, especially as far as these are distributing & savings plan-capable in my ING portfolio, so that their distributions (from 75 euros) are automatically reinvested ($VEUR (+0.24%) - is so large that this could work for each of the quarterly distributions, $DX2G (-0.33%), $PR1J (+0.56%)).

I think that as long as I am still subject to my employer's investment restrictions, I will only make marginal changes to this. For a "fire and forget" portfolio, however, I could imagine switching to a 70/20/10 portfolio in the medium term. $WEBG (+0.5%), $HMEF (+0.36%), $SDIP (-0.09%) (@ING: please $SDIP (-0.09%) savings plan, thank you!). Let's see what the end of PFOF brings on the cost side, especially for savings plans.

So, that's it; thanks for your patience and perseverance. You're welcome to give me tips, but as I said, my hands are largely tied (and I don't think much of the crypto tulip bulbs until they become an actual means of payment, not just for buying sinister services on the dark web)...

Here's to a successful investment community (&thanks for having me)!

An initial position established. It is predicted that demand for copper will exceed supply as a result of the energy transition.

Is anyone else here invested in mining companies - who have you chosen?

$BHP (-0.47%)
$ABHPG
$RIO (-0.88%)
$GLEN (-0.84%)
$FCX (-0.32%)
$AAUKF

Light at the end of the tunnel! After $AAL (-0.62%) has already performed well since the beginning of the year, today there was a further substantial boost following the confirmation of takeover interest by $BHP (-0.47%) the takeover interest.

The market overview for 🇺🇸 & 🇪🇺:

US MARKET🇺🇸

Monday

• PACS Group ($PACS) and UL Solutions ($ULS) have potential IPOs.
• Neel KashkariPresident of the Minneapolis Fed, delivers remarks.

Tuesday

• Release of the NFIB Small Business Optimism Index (March).
• Quarterly reports from WD-40 ($WDFC (+0.75%) ) and Tilray Brands ($TLRY (-0.36%) ).

Wednesday

• Publication of the consumer price index (March).
• Publication of the wholesale stocks (March).
• Publication of the minutes of the March meeting of the Federal Open Market Committee (FOMC).
• Publication of the monthly federal budget of the USA (March).
• Speeches by Austan GoolsbeePresident of the Chicago Fed.
• Quarterly reports from Delta Air Lines ($DAL (-1.68%) ) and Applied Digital ($APLD ).

Thursday

• Publication of the initial applications for unemployment benefits (April 5).
• Publication of the producer price index (March).
• Speeches by John C. Williams, President of the New York Fed, and Raphael BosticPresident of the Atlanta Fed.
• Quarterly reports from Constellation Brands ($STZ (+0.3%) ), Fastenal ($FAST (+0.89%) ) and CarMax ($KMX (+1.06%) ).

Friday

• Publication of the preliminary Michigan Consumer Sentiment Index (April).
• Speeches by Raphael Bostic, President of the Atlanta Fed, and Mary C. DalyPresident of the San Francisco Fed.
• Quarterly reports from JPMorgan Chase ($JPM (+0.51%) ), Wells Fargo ($WFC (+0.72%) ), BlackRock ($BLK ), Citigroup ($C (+0.44%) ), State Street ($STT (+0.46%) ) and Progressive ($PGR (+1.74%) ).

EUROPEAN MARKET🇪🇺

Monday

• Publication of Industrial Production Index🇪🇺

Tuesday

• ZEW Economic Sentiment🇩🇪 will be published
• Quarterly reports from Ericsson ($ERIC A (+0.86%) )🇸🇪, Beiersdorf AG ($BEI (+0.76%) )🇩🇪, Sika ($SIKA (+0.59%) )🇨🇭, Rio Tinto PLC ($RIO (-0.88%) )🇬🇧

Wednesday

• Release of CPI data🇪🇺
• Quarterly reports from Hays ($HAS (+0%) )🇬🇧, Petershill Partners ($PHLL )🇬🇧, Just Eat Takeaway ($TKWY (-0.42%) )🇬🇧, Entain ($ENT (+0.09%) )🇬🇧, La Francaise ($FDJ (-2.39%) )🇫🇷, Legal & General ($LGEN (+0.02%) ), Tryg ($TRYG (+0.93%) )🇩🇰, BHP Group Ltd ($BHP (-0.47%) )🇬🇧, ASML Holding ($ASML (-0.22%) )🇳🇱Volvo B ($VOLV B (-0.21%) )🇸🇪, Severstal ($CHMF )🇷🇺

thursday

• Publication of Construction Output🇪🇺
• Quarterly reports from Danone ($BN (+0.46%) )🇫🇷, Nokia Oyj ($NOKIA (+0.81%) )🇫🇮, Tele2 AB ($TEL2 B (+1.58%) )🇸🇪

$BHP (-0.47%) with weaker earnings.

Dividend reduced by 40% to lowered to $0.90

Unfortunately, this was to be expected given the prices for raw materials.

https://www.bhp.com/investors

$BHP (-0.47%) or $RIO (-0.88%)

I am not sure which company to invest in. I am leaning towards BH. But I would be happy to hear other opinions.