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markinspain

Bhp To Cut 6,000 Jobs.

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Bhp To Cut 6,000 Jobs., Looks like the commodities boom is over.

Right, so Obama's going to embark on the biggest ever infrastucture program since the 50's and you think the commodities boom is over?

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Right, so Obama says he's going to embark on the biggest ever infrastucture program since the 50's and you think the commodities boom is over?

So why are Rio Tinto, BHP et al shutting down plants? Perhaps they don't have much faith in Obama.

Edited by markinspain

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So why are Rio Tinto, BHP et al shutting down plants? Perhaps they don't have much faith in Obama.

It's simply a supply squeeze, when Obama kicks off his infrastructure progam there will be huge demand for commodities but little supply then.......

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So why are Rio Tinto, BHP et al shutting down plants? Perhaps they don't have much faith in Obama.

Rio Tinto, BHP et al are shutting down their higher cost "swing" projects which they ramp up during times of high demand. Their core, lower cost projects are able to operate profitably (albeit less so) in a lower price environment.

The junior players on AIM, however, are mostly seeking to develop or operate projects that will generally sit higher on the cost curve. If you have only 1/2 projects and you are a high cost producer, you go bust in these market conditions. Look to see many exploration, development and production licences handed back (taken back?) to governments over the next couple of years. In a few years time the same projects will re-surface with new juniors promising to make you rich. Such is the cycle.

This process can only strengthen the companies that survive and will ride the next upturn, whenever that may be. BHP, Rio, Anglo, Xstrata will be fine.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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