Latest news with #MikeHenry
AU Financial Review
18-07-2025
- Business
- AU Financial Review
BHP investors worry about returns on potash after ‘shock' cost blowout
BHP investors have warned the world's biggest miner that returns on its $US10 billion push into Canadian potash are becoming unattractive after delays and a blowout in costs. BHP chief executive Mike Henry's claim to be the industry's best operator was dented by Friday's news that the first stage of the Jansen potash mine would cost 30 per cent more than expected and be delivered a year late.
Times
18-07-2025
- Business
- Times
BHP pushes back potash mine opening after $1.7bn cost overrun
BHP has warned of a $1.7 billion cost overrun at its project to develop one of the world's biggest potash mines in Canada. The world's largest mining company said that its Jansen mine in Saskatchewan would now not start up until mid 2027, reverting its original schedule and ditching its plans to accelerate first production to the end of next year. BHP approved the first stage of the Jansen development in 2021, its first foray into potash, aiming to meet what it believes will be growing demand for the fertiliser ingredient as the world's population grows and arable land comes under pressure. • BHP boss warns Trump tariffs could be 'significant' hit to trade Mike Henry, BHP's chief executive, said that the first stage of Jansen was now estimated to cost between $7 billion and $7.4 billion, up from $5.7 billion originally. 'The estimated cost increase is driven by inflationary and real cost-escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period,' BHP said, adding that Jansen stage one is now 68 per cent complete. The company approved a $4.9 billion investment in stage two of Jansen in 2023 but said it was now considering delaying first production from the second phase by two years to its financial year ending June 2031, citing the 'potential for additional potash supply coming to market in the medium term'. Analyst at Jefferies said that the '[capital expenditure] blowout at Jansen is the clear negative' and warned that 'the fundamental outlook for potash is very challenging'. The delays and cost overruns overshadowed an otherwise strong trading update including record iron ore and copper production ahead of BHP's annual results for the year to the end of June. The Australian miner was a FTSE 100 group until 2022 when it unified its dual company structure behind a primary listing in Australia, retaining only a secondary listing in London. It reported net profits of $7.9 billion in its last financial year, to June 2024 from commodities including iron ore, copper, steelmaking coal and nickel. Copper output rose 8 per cent year on year to top two million tonnes for the first time. Henry said it was 'a record level of production in a commodity critical to urbanisation, digitisation and electrification'. Iron ore output rose 1 per cent to a record 263 million tonnes. 'The efficiency of our infrastructure hubs continues to strengthen performance with rail, port and technology investments delivering tangible production outcomes,' Henry said. Shares in mining companies including BHP were hard hit by President Trump's tariff announcements in April on fears of weaker economic growth hitting commodity demand, but have since recovered their losses. Henry said that commodity demand so far this year had remained resilient, reflecting 'China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector'. 'Copper and steel demand have benefited from a sharp acceleration in renewable energy investment, electricity grid build out, strong machinery exports and EV sales. While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact,' he said.
News.com.au
18-07-2025
- Business
- News.com.au
BHP, CSL, CBA drive the ASX higher
Australia's sharemarket hit its third record high in five days on Friday, on the back of a jump in the major iron ore miners and healthcare stocks. The ASX 200 continued its record breaking run, jumping 118.20 points or 1.37 per cent to 8,757.20 with the index having its best day since April 10. The broader All Ordinaries surged 116 points or 1.30 points to 9,006.80. On an overall strong day for investors, all 11 sectors finished in the green. Healthcare shares led the way up 2.47 per cent while the materials sector gained 2.06 per cent and information technology closed the week 1.50 per cent higher. Healthcare darling CSL rallied 3.62 per cent to $257.38, Sigma Healthcare gained 1.08 per cent to $2.81 and Telix Pharmaceuticals jumped 2.77 per cent to $25.26. The major iron ore miners continued their run higher as the price of the commodity rose above $US100 a tonne for the first time in two months through the trading week, on the back of better than expected economic data out of China. BHP chief executive Mike Henry told the market the demand for iron ore remained resilient on the back of strong Chinese demand. 'That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,' Mr Henry said. 'While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact.' BHP jumped on this news, 3.02 per cent to $40.29, Fortescue rose 0.53 per cent to $17 and Rio Tinto finished in the green up 1.81 per cent to $113.11. The big four banks also had a strong day with CBA adding 0.92 per cent to $182.46, NAB gained 1.27 per cent to $39.19. Westpac jumped 1.81 per cent to $34.31 and ANZ finished 1.22 per cent higher to $30.82. Despite the strong run up from the major Australian shares, Morningstar says the top end could be overvalued with an 'earnings recession' likely to continue for the third straight year. Morningstar market strategist Lochlan Halloway said while the other indexes continued to rise, Australia's largest businesses – from an earnings point of view – were actually falling. 'Eventually, something's got to give – either earnings catch up to lofty prices, or valuations rebase to reflect the reality of slower growth,' Mr Halloway said. 'This disconnect between prices and profits goes a long way to explaining why valuations look so stretched at the top end of the market. In company news, shares in Mesoblast soared 34.7 per cent to $2.41 after the biotech company informed the market it had $20m in sales of its flagship stem cell therapy which was launched in March.
Yahoo
18-07-2025
- Business
- Yahoo
ASX has best week since May
Australia's sharemarket hit its third record high in five days on Friday, on the back of a jump in the major iron ore miners and healthcare stocks. The ASX 200 continued its record breaking run, jumping 118.20 points or 1.37 per cent to 8,757.20 with the index having its best day since April 10. The broader All Ordinaries surged 116 points or 1.30 points to 9,006.80. On an overall strong day for investors, all 11 sectors finished in the green. Healthcare shares led the way up 2.47 per cent while the materials sector gained 2.06 per cent and information technology closed the week 1.50 per cent higher. Healthcare darling CSL rallied 3.62 per cent to $257.38, Sigma Healthcare gained 1.08 per cent to $2.81 and Telix Pharmaceuticals jumped 2.77 per cent to $25.26. The major iron ore miners continued their run higher as the price of the commodity rose above $US100 a tonne for the first time in two months through the trading week, on the back of better than expected economic data out of China. BHP chief executive Mike Henry told the market the demand for iron ore remained resilient on the back of strong Chinese demand. 'That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,' Mr Henry said. 'While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact.' BHP jumped on this news, 3.02 per cent to $40.29, Fortescue rose 0.53 per cent to $17 and Rio Tinto finished in the green up 1.81 per cent to $113.11. The big four banks also had a strong day with CBA adding 0.92 per cent to $182.46, NAB gained 1.27 per cent to $39.19. Westpac jumped 1.81 per cent to $34.31 and ANZ finished 1.22 per cent higher to $30.82. Despite the strong run up from the major Australian shares, Morningstar says the top end could be overvalued with an 'earnings recession' likely to continue for the third straight year. Morningstar market strategist Lochlan Halloway said while the other indexes continued to rise, Australia's largest businesses – from an earnings point of view – were actually falling. 'Eventually, something's got to give – either earnings catch up to lofty prices, or valuations rebase to reflect the reality of slower growth,' Mr Halloway said. 'This disconnect between prices and profits goes a long way to explaining why valuations look so stretched at the top end of the market. In company news, shares in Mesoblast soared 34.7 per cent to $2.41 after the biotech company informed the market it had $20m in sales of its flagship stem cell therapy which was launched in March. Virgin Australia gained 1.9 per cent to $3.27 after the recently relisted airline gained a buy rating from UBS citing clearer strategy and strong fundamentals for the business. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Perth Now
18-07-2025
- Business
- Perth Now
ASX has best week since May
Australia's sharemarket hit its third record high in five days on Friday, on the back of a jump in the major iron ore miners and healthcare stocks. The ASX 200 continued its record breaking run, jumping 118.20 points or 1.37 per cent to 8,757.20 with the index having its best day since April 10. The broader All Ordinaries surged 116 points or 1.30 points to 9,006.80. On an overall strong day for investors, all 11 sectors finished in the green. Healthcare shares led the way up 2.47 per cent while the materials sector gained 2.06 per cent and information technology closed the week 1.50 per cent higher. Healthcare darling CSL rallied 3.62 per cent to $257.38, Sigma Healthcare gained 1.08 per cent to $2.81 and Telix Pharmaceuticals jumped 2.77 per cent to $25.26. The ASX 200 continued its record breaking run. NewsWire Christian Gilles Credit: News Corp Australia The major iron ore miners continued their run higher as the price of the commodity rose above $US100 a tonne for the first time in two months through the trading week, on the back of better than expected economic data out of China. BHP chief executive Mike Henry told the market the demand for iron ore remained resilient on the back of strong Chinese demand. 'That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector,' Mr Henry said. 'While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact.' BHP jumped on this news, 3.02 per cent to $40.29, Fortescue rose 0.53 per cent to $17 and Rio Tinto finished in the green up 1.81 per cent to $113.11. All 11 sectors finished in the green. NewsWire / Jeremy Piper Credit: News Corp Australia The big four banks also had a strong day with CBA adding 0.92 per cent to $182.46, NAB gained 1.27 per cent to $39.19. Westpac jumped 1.81 per cent to $34.31 and ANZ finished 1.22 per cent higher to $30.82. Despite the strong run up from the major Australian shares, Morningstar says the top end could be overvalued with an 'earnings recession' likely to continue for the third straight year. Morningstar market strategist Lochlan Halloway said while the other indexes continued to rise, Australia's largest businesses – from an earnings point of view – were actually falling. 'Eventually, something's got to give – either earnings catch up to lofty prices, or valuations rebase to reflect the reality of slower growth,' Mr Halloway said. 'This disconnect between prices and profits goes a long way to explaining why valuations look so stretched at the top end of the market. In company news, shares in Mesoblast soared 34.7 per cent to $2.41 after the biotech company informed the market it had $20m in sales of its flagship stem cell therapy which was launched in March. Virgin Australia gained 1.9 per cent to $3.27 after the recently relisted airline gained a buy rating from UBS citing clearer strategy and strong fundamentals for the business.
