BHP Billiton (BHP) Share Trading Recommendation

Submitted by Craig Strzelecki on 23 February, 2007 - 17:44

BHP Billiton (BHP) have a maintained Buy 2 share trading recommendation and a share price target of $34 from analyst UBS. The analyst has attended a Diamonds & Specialty Products CSG briefing. Alberto Calderon (President - Diamonds & Specialty Products CSG) held a briefing in London to discuss the outlook for his group. The briefing is to be repeated in Sydney on Thursday, 01 Mar 2007. On diamonds BHP sees a positive market outlook with the gap between supply and demand growing. Ekati mine life is targeting 2030 with the focus on constant revenue. BHP acquired Corridor Sands when it purchased WMC in 2005. BHP indicated that WMC's original proposal for a stand alone operation in Mozambique was no longer economic given capital cost increases and no corresponding increase in product prices. The proposal now is to modularise the development and locate the smelter next to the Mozal aluminium smelter where infrastructure is already in existence. Alberto outlined BHP's new potential potash project in Canada. BHP has been successful in putting its foot on a substantial amount of property in Saskatchewan alongside existing operations. The potash market is attractive because it is capital intensive, requires high technology and is a tight market with the top 6 producers having about 75 percent market share. EBIT margins are in the 40-60% range.

BHP Billiton Limited is listed on the Australian Stock Exchange (ASX) under stock code BHP. You can view their investor website here. BHP was listed on the ASX on 13 August, 1885. Charles "Chip" Goodyear is the CEO of BHP Billiton and Don Argus the Chairman. BHP Billiton was created through the Dual Listed Companies (DLC) merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton Limited and BHP Billiton Plc continue to exist as separate companies, but operate on a combined basis as BHP Billiton. The headquarters of BHP Billiton Limited, and the global headquarters of the combined BHP Billiton Group, are located in Melbourne, Australia. BHP Billiton Plc is located in London, United Kingdom. The company is principally involved in minerals exploration, production and processing (particularly coal, iron ore, copper and manganese ore) and hydrocarbon exploration, production and refining. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade BHP. Check your charts and good luck with your share trading!

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