Meanwhile, in 2022, it offered to buy the outstanding shares of copper miner Turquoise Hill Resources ( NYSE:TRQ) that it doesn’t already own. For example, in recent years, it has exited the coal mining business due to the sector’s dwindling prospects amid climate change concerns. It has a strong balance sheet and routinely sells non-core mines to reallocate cash to better opportunities. Rio Tinto has proven its ability to make money even during weak market conditions. Rio Tinto's investments in new technologies, such as autonomous vehicles and renewable energy, reduce costs and increase productivity. It's able to keep costs down by operating mining assets that are integrated and big. Like BHP Group, Rio Tinto aims to be a low-cost producer of metals and minerals. Rio Tinto also mines a variety of other metals and minerals, including boron, salt, diamonds, and titanium. It's a leading producer of the three most-consumed industrial metals - iron ore, aluminum, and copper. Rio Tinto is a diversified mining company. The company pays out at least 50% of its profits each reporting period in dividends, so its dividend outlay will rise or fall with its cash flow. Like Barrick, BHP Group’s dividend has some variability. Although there’s some variability to its cash flow, BHP’s low costs enable it to generate free cash flow to reliably pay dividends and repurchase stock. Its production volumes are relatively stable. The mining company is well-positioned to invest in high-return expansion projects even when commodity prices are low. The mining company's focus on minimizing expenses also helps to mute the impact of inflation.īHP Group combines its low-cost operations with a strong balance sheet, which it strengthens by routinely selling its least-profitable mines and non-core assets. It efficiently operates large resource-rich mines and uses technology such as autonomous vehicles to reduce costs. The merger transformed BHP into a pure-play mining company.Īlthough BHP Group produces several commodities, it primarily aims to be a low-cost producer. BHP Group also had an oil and natural gas business but merged those assets with Woodside Petroleum ( NYSE:WDS) in a deal that closed in 2022. It operates fully integrated mining assets that extract and process copper, iron ore, coal, nickel, zinc, and potash. Data source: Barrick Gold.īHP Group is a diversified resources company. Tier One mines produce a relatively steady supply of low-cost gold and copper, enabling Barrick to continue making money when prices are low.īarrick Gold’s Tier One mines can generate lots of cash, allowing it to pay an attractive base dividend payment that it complements with a quarterly performance dividend payment that fluctuates with its cash balance.
0 Comments
Leave a Reply. |