BHP Group shares (ASX:BHP) have managed to hold on to the $40 support level, ending the day down 1.33% at $40.01. With the last 5 sessions delivering a 8.10% decline in the share price, holders are looking for the turnaround story, and the Chile roadshow could shed some light on one angle. From November 17th to 20th, BHP plans to present a detailed itinerary of its plans to analysts and investors by hosting a roadshow at its Escondida and Spence copper operations. This event is expected to provide greater insights into the company’s strategy and execution plan for enhancing copper extraction and processing capabilities.
The firm has unveiled plans to significantly raise investments in their Chilean operations, with a focus on the world’s largest copper mine, Escondida. The move, which entails the company spending at least $7 billion, is aimed at increasing metal recovery to maintain its leading copper production levels.
The heavy influx of capital into the Escondida copper mine is part of BHP’s broader strategy to leverage its existing assets. These investments are estimated to range from $7 billion to $12 billion. The company has pegged its current capital spending for the financial year at $10 billion and anticipates this could rise to $11 billion in the medium term. A significant allocation of these funds is earmarked for initiatives in Chile.
BHP’s commitment to expanding its copper output is evident through proposed upgrades to its concentrators and the integration of advanced leaching technologies. These improvements aim to access more resources and elevate the company’s standing in the global copper market.
This substantial investment comes at a time when copper prices show potential for an upswing. Analysts project that the price for copper could escalate towards $5 a pound. Meanwhile, recent figures from the London Metal Exchange (LME) showed copper trading at $8,966 a ton, roughly equivalent to $4 a pound, indicating market conditions that could be favourable for BHP’s ambitious growth plans.
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The strategic decisions by BHP Group reflect a long-term vision for their copper operations, with a particular emphasis on sustainability, innovation, and growth. This financial commitment could potentially reshape the global copper industry and have lasting implications on mineral supply dynamics.
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