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 Reports and Commentary from the Investment World

Reports and commentaries are posted here on a regular basis.


BHP update


BHP Billiton Update.

A shift in global capital flows away from America and toward Australia could move BHP and other commodity stocks to new highs by the end of the year.  BHP has enjoyed stunning success in identifying rich ore bodies in South Australia, this year.  In particular, the gold deposit at Olympic Dam is potentially the world's largest.  BHP will release its resource upgrade for the copper, gold, and uranium mine as part of its annual report on Wednesday.  This will detail latest estimates of the size of  the mine's deposits.  The mine already sits atop  the world's largest uranium resource and has one of the world's largest
copper and silver deposits.  Olympic Dam could turn out to be the most valuable ore body in the world, ounce for ounce.
BHP looks set to go from strength to strength.  Its iron-ore properties benefit from China's growth.  Its uranium resources are a real asset during an energy bull market.  And now, as the US dollar continues its decline and Gold is the safe haven investment around the World, BHP is announcing what could be the World's largest gold deposit ever.  Some Gold analysts are  predicting an average gold price of US$823/oz in 2008.

The economic picture is not especially good at the moment, but for the resource sector, the golden age is set to continue for some time yet!
Chinese demand for base metals and steel making materials is fairly independent of American shopping patterns.  China' is in the midst of the third great industrial revolution of the last 200 years. It's a commodity intensive transformation for nearly one billion people. It will have its ups and downs.  But we're still in the upward phase of the bullish cycle and the decline in the US dollar is exaggerating the bullish fundamentals for commodities.

If you do not hold BHP Billiton in your portfolio yet, take another look at the archived reports.

Its not too late to buy it.


Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.