Latest news with #US1.10
The Age
a day ago
- Business
- The Age
BHP profits take a hit as prices fall for Australia's mining exports
Australia's biggest miner BHP has reported a 26 per cent fall in full-year profit and slashed its dividend to the lowest mark in eight years as prices for iron ore and coal tumbled on softer demand from China. The Melbourne-based mining giant on Tuesday said it had earned an underlying profit of $US10.2 billion ($15.7 billion) in the year to June 30, its smallest profit in five years. The result comes as US President Donald Trump's trade wars continue to cast a cloud over the global economy and the outlook for Australia's most lucrative mining exports. BHP earns most of its money from digging up iron ore in Western Australia and selling it to China to be processed into steel. However, demand in China has been starting to cool as its property sector battles an oversupply crisis, which has weakened steel production rates and subdued demand for iron ore. The glut has also pummelled the price of BHP's exports of metallurgical coal, which is used to fire steel-making furnaces. Falling revenue across the year was 'primarily due to the decline in coal and iron ore prices', BHP said in a statement to shareholders. Still, the Australian miner's full-year result was in line with analysts' expectations. Loading Shareholders will receive a final dividend worth US60¢ a share, taking BHP's payout for the year to $US1.10 a share. While that's better than analysts had expected, it's the lowest full-year payout since the year ended June 2017. Chief executive Mike Henry said the past 12 months had been a strong year for BHP, with the company delivering strong outcomes against a 'backdrop of global uncertainty'. The outlook for some of Australia's largest mining and energy companies has deteriorated since April, when the US imposed across-the-board tariffs at much higher rates than many had been expecting, leading to increased uncertainty and lower global growth forecasts.
The Age
a day ago
- Business
- The Age
BHP profit, dividends take a hit as prices fall for Australia's mining exports
Australia's biggest miner BHP has reported a 26 per cent fall in full-year profit and slashed its dividend to the lowest in eight years as prices for iron ore and coal tumbled on softer demand from China. The Melbourne-based mining giant on Tuesday said it had earned an underlying profit of $US10.2 billion ($15.7 billion) in the year to June 30, its smallest profit in five years. It comes as Donald Trump's trade wars continue to cast a cloud over the global economy and the outlook for Australia's most lucrative mining exports. Falling revenue across the year was 'primarily due to the decline in coal and iron ore prices', the company said in a statement to shareholders. BHP earns most of its money from digging up iron ore in Western Australia and selling it to China to be processed into steel. However, demand in China has been starting to cool, as its property sector battles an oversupply crisis, weakening steel production rates and subduing demand and prices for iron ore. The glut has also pummelled the price of BHP's exports of metallurgical coal, which is used to fire steel-making furnaces. Still, the Australian miner's full-year result was in line with analysts' expectations. Shareholders will receive a final dividend worth US60¢ a share, taking BHP's payout for the year to $US1.10 a share. While that's better than analysts had expected, it's the lowest full-year payout since the year ended June 2017. Loading Chief executive Mike Henry said the past 12 months had been a strong year for BHP, with the company delivering strong outcomes against a 'backdrop of global uncertainty'. The outlook for some of Australia's largest mining and energy companies has deteriorated since April, when the US imposed across-the-board tariffs at much higher rates than many had been expecting, leading to increased uncertainty and lower global growth forecasts.
Sydney Morning Herald
a day ago
- Business
- Sydney Morning Herald
BHP profit, dividends take a hit as prices fall for Australia's mining exports
Australia's biggest miner BHP has reported a 26 per cent fall in full-year profit and slashed its dividend to the lowest in eight years as prices for iron ore and coal tumbled on softer demand from China. The Melbourne-based mining giant on Tuesday said it had earned an underlying profit of $US10.2 billion ($15.7 billion) in the year to June 30, its smallest profit in five years. It comes as Donald Trump's trade wars continue to cast a cloud over the global economy and the outlook for Australia's most lucrative mining exports. Falling revenue across the year was 'primarily due to the decline in coal and iron ore prices', the company said in a statement to shareholders. BHP earns most of its money from digging up iron ore in Western Australia and selling it to China to be processed into steel. However, demand in China has been starting to cool, as its property sector battles an oversupply crisis, weakening steel production rates and subduing demand and prices for iron ore. The glut has also pummelled the price of BHP's exports of metallurgical coal, which is used to fire steel-making furnaces. Still, the Australian miner's full-year result was in line with analysts' expectations. Shareholders will receive a final dividend worth US60¢ a share, taking BHP's payout for the year to $US1.10 a share. While that's better than analysts had expected, it's the lowest full-year payout since the year ended June 2017. Loading Chief executive Mike Henry said the past 12 months had been a strong year for BHP, with the company delivering strong outcomes against a 'backdrop of global uncertainty'. The outlook for some of Australia's largest mining and energy companies has deteriorated since April, when the US imposed across-the-board tariffs at much higher rates than many had been expecting, leading to increased uncertainty and lower global growth forecasts.
West Australian
18-06-2025
- Business
- West Australian
Iron ore price drops again to flirt with multi-year lows amid gloomy forecasts
The value of WA's most important mineral commodity is tumbling towards lows not seen in two-and-a-half years, putting three of the four big banks on track for vindication. A tonne of the benchmark iron ore product is currently being traded for $US92.40 after shedding $US1.10/t overnight. It was above $US100/t during the middle of last month. The steel-making commodity's value is now at its lowest point since September and could be heading towards a sustained sub-$US90/t price for the first time since November 2022. Iron ore briefly dipped below $US90/t in September — hitting $US89.50/t — but quickly rebounded. Shares in local mining giants BHP, Rio Tinto and Fortescue were all in the red on Wednesday. Fortescue is the most exposed to fluctuations in the iron ore price of the trio and its stock was down more than 4 per cent by noon. Temporary factors and long-term structural shifts in the global steel market are behind iron ore's price decline. Construction in China, where virtually all of WA's iron ore is pumped into, is currently at a seasonal ebb. The Asian powerhouse has also ordered its steelmakers to curb their output this year to supposedly meet carbon emission reduction requirements. More broadly, China's multi-decade building boom is winding down. Rio Tinto's iron ore chief executive Simon Trott last year said the peak of steel demand from the country had been reached. India has been touted as a new growth market but its iron ore consumption is still nowhere near China's. While demand is waning, supply has been steadily rising, and tens of millions of additional tonnes are soon set to come online from Brazil and West Africa. Global investment bank Citi this week downgraded its iron ore forecasts, predicting the price to stay around $US90/t over the next 12 months. Australia's banks have been even more bearish. Commonwealth Bank reckons the price will drop to $US80/t this year, Westpac thinks it will start 2026 at $US86/t, and NAB is pencilling in a 2025 average of $US87/t. ANZ has been an outlier and last month raised its short-term iron ore prediction from $US90/t to $US100/t. WA's Treasury in December adopted a $US95/t expectation for the 2025 financial year, marking a $US18/t increase from the price estimate on Budget day in May. Every $US1/t change in iron ore's value can directly add or remove almost $100m from the State's coffers. For the 2024 financial year, WA received just under $10 billion from iron ore royalties. Nearly 90 per cent of WA's entire royalty income stream comes from iron ore.
