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It's time to buy the 'Big Australian'

This mining colossus is a smart, long-term option with its clear focus on a slimmed-down set of metals and fertiliser
December 28, 2023

At the risk of anthropomorphising a digger of rocks, BHP (BHP) comes across as the most relaxed of the major miners.

Tip style
Income
Risk rating
Medium
Timescale
Long Term
Bull points
  • Stock looks cheap
  • Incremental focus
  • Better metals balance
  • Strong balance sheet
Bear points
  • Nickel investment concerns
  • Earnings down on 2022

While it is the sector’s largest by market capitalisation, the ‘Big Australian’ has kept to its antipodean roots while Rio Tinto (RIO) looks to massively expand its iron ore output with the Simandou mine in Guinea and Glencore (GLEN) shifts beyond its current coal, copper, cobalt and trading remit with a company split in two years. 

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