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Question 3(a)(Chart 2: Share price of BHP Billiton in 5 years)Based on the graph, the current price of ordinary share in BHP Billiton is $33.79 as of 14th May2018. As shown in the chart above, the share price over the past five years which is from 14thMay 2013 to 14th April 2018 (BHP Billiton, 2018).Based on the chart, the share price of five years ago which is on 14th May 2013 was $32.40. Theshare price of the company has a small increase from yearly basis (BHP Billiton, 2018). Itincreased about 4.4% through the five years. In the chart, the lowest share price in these fiveyears is $14.20 on 20th of January 2016. Thus, the highest share price in this five years is $37.08on the 19th August 2014 (Michael G, 2016)In the year 2016, BHP Billiton shares has reduced to the lowest point because mining companyproduces below their target point of 10m due to that BHP share have grieved more losses afterthe company is forced to write-down to nearly $1.4 and they force BHP to cut down iron oreproduction because of the price fall (BHP Billiton, 2018). Company stock fell nearly 4% forabout $14.20, the lowest point from 2015 onwards. However, 21stFebruary 2017, shows BHPBilliton returns on profit and this causes their dividends to increase. Due to that global minershave been furthering upswing in commodity prices which allows them to raise their financialincome. Even iron ore is doubled in value compared to 2016, and prices of coal and crude oilincreases (BHP Billiton, 2018).
BHP Billiton (BHP AUD) performances will be compared with S&P/ASX 300 metal and miningindex. In 14thMay 2018, BHP Billiton shares increase then August 2014 and this gives the indexobtainable improvement (BHP Billiton, 2018). The improvement is because the stock they tradein low multiple provides them with surprising interest that causes increase in share prices. BHPBilliton Limited increases copper production for nearly 37% and it is supported by a new project(BHP’S Los Colorado’s Extension). The project started last year September. BHP workingaggressively towards greatest levels of iron invention which will roast across 2018 (BHPBilliton, 2018).Moreover, S&P /ASX 300 metal and mining index is trading at close to a span high and this hasaffected BHP shares trade at a highest level. The inferior Aussie dollar is creating Australianstocks appearance more striking to foreign buyers. Even, BHP commodity prices are increasing,mainly in oil prices. Even though iron ore is around 38% of the company’s revenue, thepetroleum shares revenue is 18%, this shows it is a profit (BHP Billiton, 2018).