Question: What is the justification for holding BHP shares? I have had these for quite a significant time and have lost money? Why should I continue to hold these?
Answer (by Paul Rickard): This is a really good question, particularly following yesterday’s BHP operational review. This foreshadowed production decreases in FY16 in four key commodities:
- Petroleum by 7%
- Copper by 12%
- Metallurgical Coal by 6%
- Energy Coal by 2%
Iron Ore is forecast to grow by 6%, with BHP’s share of production in FY 16 rising to 247m tonnes.