Bayon Financial

Graeme Cunningham

Mr. Cunningham is a CFA Charterholder with over 15 years of experience as an equity research analyst, mostly on the sell side at investment banks, including Goldman and Jefferies, and with some time on the buy side. He has covered the consumer, telecoms, financials, energy and mining sectors, with a focus mainly on Southeast Asia, including Thailand and Vietnam.

BHP: Last Strong Driver (Copper) Turns Volatile

Independent Insight Provider

Bayon Financial provides industry and company analysis focusing on mid and small cap equity research coverage across a range of sectors including mining, financials and telecoms.

Equity Bottom-Up

<ul>
<li>BHP announced an AUD1.5bn (US$1.0bn) deal with Aurizon for transport logistics for South Australia Copper, which could affect about 5% of EBITDA and reduce costs marginally</li>
<li>The shares declined over the past month on declining iron ore and coal prices, and while copper has risen on supply side issues, we see risks of a H2/25 drop</li>
<li>The company looks about fairly valued on an ROE to P/B comparison versus its Australian peers and the current price is almost exactly inline with our DCF valuation </li>
</ul>


BHP announced an AUD1.5bn (US$1.0bn) deal with Aurizon for transport logistics for South Australia Copper, which could affect about 5% of EBITDA and reduce costs marginally
The shares declined over the past month on declining iron ore and coal prices, and while copper has risen on supply side issues, we see risks of a H2/25 drop
The company looks about fairly valued on an ROE to P/B comparison versus its Australian peers and the current price is almost exactly inline with our DCF valuation 


Marginal Cost Reduction from Copper Shipment Deal

BHP Group Ltd

Marginal Cost Reduction from Copper Shipment Deal