On the pricey side
Published Date: 2019-05-17 | Source: INCE|Community | Author: Mark Ingham
Did you know that iron ore makes up 40% of BHP profits? Which is why higher iron ore prices this year could have a dramatic impact, boosting earnings by 40% relative to more sustainable iron ore prices.
This means that BHP is looking expensive at the current share price on more modest iron ore price assumptions but less so than if spot prices prevailed for a full year.
Whilst Ingham Analytics has a positive view on the fundamentals of the company, it cautions that the elevated share price may not last and explains why.
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