Steve Johnson

Yesterday’s record full year loss will mark a turning point for BHP Billiton. The Big Fella, as BHP is affectionately known, got far too big for his boots. We won’t be seeing senseless acquisitions for a long time. The management team is going to get back to focusing on operating the most efficient mining assets in the world - South32 has halved its cost of producing some commodities since separating from BHP, which must leave shareholders of the latter wondering what their management team was doing. And the directors have finally sent shareholders the message they had already worked out for themselves – a constantly increasing dividend is an idiotic policy for any business, let alone one as cyclical as a miner. (VIEW LINK)


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