Home » BHP share price: Group flags potential new copper find in South Australia

BHP share price: Group flags potential new copper find in South Australia

Tsveta van Son
  • November 27th, 08:11
  • Last Updated: October 21st, 15:12

BHP Group (LON:BHP) has identified a potential new iron oxide, copper and gold mineralised system in South Australia, the London- and Sydney-listed mining group has said. The news comes after the blue-chip group recently settled a transfer pricing dispute with Australian regulators over its marketing operations in Singapore, agreeing to pay A$529 million (£300 million).

BHP’s share price has started trading higher this morning, having gained 0.60 percent to 1,520.00p as of 08:05 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.12 percent lower at 7,027.83 points. The group’s shares have added more than nine percent to their value over the past year, as compared with about a 4.7-percent dip in the Footsie.

Potential copper find

BHP announced in a statement today that it had identified a potential new iron oxide, copper, gold mineralised system, located 65 kilometres to the south east of the group’s operations at Olympic Dam in South Australia. The company, however, noted that the exploration project was at an early stage and there was currently insufficient geological information to assess the size, quality and continuity of the mineralised intersections. BHP said that it was evaluating and interpreting the results reported and planning a further drilling programme which would start early next year.

Reuters noted in its coverage of the news that the FTSE 100 group’s announcement coincided with  investor excitement over a potential copper find by blue-chip rival Rio Tinto (LON:RIO) in Western Australia. Rio Tinto, however, has not commented on reports of the find.

Analysts on BHP

UBS reiterated its ‘buy’ rating on BHP last week, without specifying a price target on the shares, while JPMorgan Chase & Co continues to see the company as a ‘neutral’. According to MarketBeat, the Anglo-Australian miner currently has a consensus ‘hold’ rating and an average price target of 1,770.94p.

As of 08:12 GMT, Tuesday, 27 November, BHP share price is 1,520.00p.

About the author

Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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