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2018 Global Metals Mining and Steel Conference
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
Issued by: BHP Billiton Plc
Date: 15 May 2018
To: London Stock Exchange
JSE Limited
For Release: Immediately
Contact: Helen Ratsey +44 (0) 20 7802 7540
BHP – 2018 Global Metals, Mining and Steel Conference Presentation
UK Listing Authority Submissions
The following document has today been submitted to the National Storage Mechanism
and will shortly be available for inspection at www.hemscott.com/nsm.do:
- 2018 Global Metals, Mining and Steel Conference Presentation.
The document may also be accessed via BHP’s website - bhp.com
Sponsor: UBS South Africa (Pty) Limited
NEWS RELEASE
Release Time IMMEDIATE
Date 15 May 2018
Release Number 06/18
BHP delivering value and returns
BHP Chief Executive Officer, Andrew Mackenzie, today said the continued successful
delivery of the Company’s roadmap to grow long-term shareholder value, together
with stronger commodity prices, has underpinned a significant increase in return on
capital employed and delivered a 30 per cent increase in BHP’s base value (1) over
the past two years.
Speaking at the Bank of America Merrill Lynch Global Metals, Mining & Steel
Conference in Florida, Mr Mackenzie said: “We have maximised operating cash flow
as we have lowered costs through productivity; we have been disciplined and
transparent in capital allocation; and we have identified new options to increase value
and returns.”
Mr Mackenzie said over the past two years, through six key value drivers, BHP has:
- Reduced unit costs by more than 15 per cent;
- Accelerated our technology and innovation program;
- Progressed five high-return, latent capacity projects;
- Sanctioned two major projects in copper and oil;
- Made discoveries at four petroleum exploration prospects; and
- Improved the performance of our Onshore US acreage in preparation for exit into a
supportive price environment.
“Alongside this, we have reduced net debt by over US$10 billion, returned
US$8 billion to shareholders and, crucially, replenished our pipeline with new
opportunities.
“This pipeline has the potential to add a further 40 per cent to the value of BHP,
subject to our strict capital allocation processes.”
Looking ahead, Mr Mackenzie said BHP:
- Continues to target a further US$2 billion in productivity gains by the end of the 2019
financial year, on top of the more than US$12 billion achieved since 2012;
- Would leverage its scale and simplicity to capitalise on the benefits of new
technology to reinforce our position in safety and productivity and deliver a step-
change in company performance;
- Has renewed its suite of latent capacity opportunities which have the potential to
generate average returns in excess of 100 per cent;
- Continues to enhance its pipeline of future options, diversified across commodities
and timeframes, which have an unrisked value of more than US$15 billion and the
potential to deliver average returns of 17 per cent;
- Would continue to push its ongoing exploration program, focused on copper and
petroleum, in line with favourable outlooks for these commodities; and
- Is making good progress with the exit from its Onshore US business, with the quality
of acreage, higher oil prices, a lower US corporate tax rate and positive results from
recent well trials all contributing to encouraging interest from potential bidders.
“BHP is set-up for future success. We have a simple, unique portfolio of the very best
assets, diversified across attractive commodities.
“Our relentless pursuit of productivity, aided by a more agile and connected culture,
will make sure we realise the full potential of our assets and capitalise on strong
prices. On top of this, we have built an attractive suite of opportunities to drive further
improvement. But, as always, we will remain disciplined in the allocation of capital with
all investments weighed against cash returns to shareholders.
“Our path is deliberate, and we remain firm in our resolve to increase value and
returns.”
An audio-webcast of the presentation will be made available at:
http://www.veracast.com/webcasts/baml/metalsmining2018/id57103254932.cfm
Further information on BHP can be found at: bhp.com
(1) Base value reflects planning forecasts (at consensus prices) before the addition
of a broad suite of upside opportunities.
Media Relations Investor Relations
Email: media.relations@bhpbilliton.com Email: investor.relations@bhpbilliton.com
Australia and Asia Australia and Asia
Ben Pratt Tara Dines
Tel: +61 3 9609 3672 Mobile: +61 419 968 734 Tel: +61 3 9609 2222 Mobile: +61 499 249 005
United Kingdom and South Africa United Kingdom and South Africa
Neil Burrows Rob Clifford
Tel: +44 20 7802 7484 Mobile: +44 7786 661 683 Tel: +44 20 7802 4131 Mobile: +44 7788 308 844
North America Americas
Judy Dane James Wear
Tel: +1 713 961 8283 Mobile: +1 713 299 5342 Tel: +1 713 993 3737 Mobile: +1 347 882 3011
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
LEI WZE1WSENV6JSZFK0JC28 LEI 549300C116EOWV835768
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Registered Office: Nova South, 160 Victoria Street
Melbourne Victoria 3000 Australia London SW1E 5LB United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Group which is
headquartered in Australia
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