Dismantling the Dual-Listed Structure Unlikely to Add Value to BHP

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Equity Bottom-Up

We maintain our AUD 18.50 per share fair value estimate for BHP Billiton. First-half fiscal 2017 production was broadly in line with our expectations. Guidance for the major commodities, apart from copper, is maintained. Realised prices in the first half were generally better than expected, particularly for coal. In addition, weaker first-half coking coal sales volumes means sales will be biased to the second half and higher priced.The near-term tailwinds see our full year earnings forecast improve to AUD 1.76 per share from AUD 1.39 previously. The strong near-term cash flow outlook drives our fiscal 2017 full-year dividend forecast to USD 0.90 from USD 0.70 previously.Analysts: Matthew Hodge and David Wong

We maintain our AUD 18.50 per share fair value estimate for BHP Billiton. First-half fiscal 2017 production was broadly in line with our expectations. Guidance for the major commodities, apart from copper, is maintained. Realised prices in the first half were generally better than expected, particularly for coal. In addition, weaker first-half coking coal sales volumes means sales will be biased to the second half and higher priced.The near-term tailwinds see our full year earnings forecast improve to AUD 1.76 per share from AUD 1.39 previously. The strong near-term cash flow outlook drives our fiscal 2017 full-year dividend forecast to USD 0.90 from USD 0.70 previously.Analysts: Matthew Hodge and David Wong

Buoyant Prices and Solid Production Should Lift BHP Billiton's Fiscal 2017 Earnings

BHP Group Ltd

Buoyant Prices and Solid Production Should Lift BHP Billiton's Fiscal 2017 Earnings