BHP To Unlock South American Copper Riches: Partners With Lundin For Filo Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
BHP and Lundin Mining Acquisition: BHP Group and Lundin Mining have agreed to jointly acquire Filo Corp. for approximately C$4.1 billion, with each company set to hold a 50% stake post-acquisition. The deal includes cash payments and share placements aimed at providing interim financing to Filo.
Market Reaction and Future Plans: Following the announcement, BHP shares fell by 2.47%. The acquisition aligns with BHP's strategy to invest in early-stage copper projects and establish joint ventures to enhance mining operations in Argentina and Chile, with the deal expected to close in Q1 2025.
Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BHP is 54.88 USD with a low forecast of 48.00 USD and a high forecast of 68.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
1 Hold
1 Sell
Hold
Current: 65.610
Low
48.00
Averages
54.88
High
68.00
Current: 65.610
Low
48.00
Averages
54.88
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
