Finance

South Africa: Analysts advise investors to buy BHP Group’s shares

South Africa: Analysts advise investors to buy BHP Group’s shares
Wednesday, 26 August 2020 17:52

In South Africa, analysts from investment firm Anchor Capital encourage investors to buy shares in BHP Group, a company specialized in the exploitation and sale of mining raw materials.

In a note, Anchor explained that the BHP Group’s shares are currently trading at eight times its net profit, which seems fair for a company that is the least expensive iron ore producer on the Johannesburg Stock Exchange.

The mining group has indeed reported strong financial results for its 2019/2020 year ending June 30, 2020, especially given the international situation characterized by the coronavirus, and the tensions between China and the USA, which are weighing on the world's economies. Earnings per share ended with a slight increase of 2%.

In terms of the stock market, BHP Group also held up well. As of 26 August 2020, its share value has risen by 15.03% since the beginning of the year. This increase was 20.9% for the last 12 months. The capital gain is more significant for historical shareholders, as the BHP shares have increased by 87.6% over the last ten years.

But the company has some weaknesses. The strong performance in its activities has been supported by its iron operations segment, where prices exploded during the year under review. As a result, the group continues to face a high level of indebtedness.

BHP manages to reduce its bonds, but they still stand at $12 billion. The company’s performance seems to depend on the evolution of iron prices, even though BHP is quite diversified and can rely on other segments of its business.

Idriss Linge

On the same topic
• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector could grow to $20 bln annually and create 20 mln...
• BRICS plans a guarantee fund to reduce political and financial risks in developing countries.• The fund will be managed by the New Development Bank...
BEAC granted Afreximbank the first-ever foreign access to the CEMAC public securities market. Cameroon raised $359.3 million via a...
(EBID) - The Board of Directors of the ECOWAS Bank for Investment and Development (EBID) held its 92nd Ordinary Session on June 30, 2025. The Board...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
03

• BOAD releases CFA10 billion ($17.8 million) to support Boungou and Wahgnion gold mines.• Burkina F...

BOAD Grants CFA10 Billion to Revive Boungou and Wahgnion Gold Mines in Burkina Faso
04

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
05

• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...

Burkina Faso: Vista Group Acquires Controlling Stake in Société Générale
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.