FIM Asignment sem 1, 2018 Q 3(A,B), Q4 (A,B,C) (1) - Question 3(a(Chart 2 Share price of BHP Billiton in 5 years Based on the graph the current

FIM Asignment sem 1, 2018 Q 3(A,B), Q4 (A,B,C) (1) -...

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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 May 2018. As shown in the chart above, the share price over the past five years which is from 14th May 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. The share price of the company has a small increase from yearly basis (BHP Billiton, 2018). It increased about 4.4% through the five years. In the chart, the lowest share price in these five years is $14.20 on 20th of January 2016. Thus, the highest share price in this five years is $37.08 on the 19th August 2014 (Michael G, 2016) In the year 2016, BHP Billiton shares has reduced to the lowest point because mining company produces below their target point of 10m due to that BHP share have grieved more losses after the company is forced to write-down to nearly $1.4 and they force BHP to cut down iron ore production because of the price fall (BHP Billiton, 2018). Company stock fell nearly 4% for about $14.20, the lowest point from 2015 onwards. However, 21 st February 2017, shows BHP Billiton returns on profit and this causes their dividends to increase. Due to that global miners have been furthering upswing in commodity prices which allows them to raise their financial income. Even iron ore is doubled in value compared to 2016, and prices of coal and crude oil increases (BHP Billiton, 2018).
BHP Billiton (BHP AUD) performances will be compared with S&P/ASX 300 metal and mining index. In 14 th May 2018, BHP Billiton shares increase then August 2014 and this gives the index obtainable improvement (BHP Billiton, 2018). The improvement is because the stock they trade in low multiple provides them with surprising interest that causes increase in share prices. BHP Billiton 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 working aggressively towards greatest levels of iron invention which will roast across 2018 (BHP Billiton, 2018). Moreover, S&P /ASX 300 metal and mining index is trading at close to a span high and this has affected BHP shares trade at a highest level. The inferior Aussie dollar is creating Australian stocks 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, the petroleum shares revenue is 18%, this shows it is a profit (BHP Billiton, 2018).

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