BHPB profit forecast raised 22% on copper, RBS says

Finance

Publishing Date: 02 Oct 2009 11:38am GMT
Author: Mining Journal

BHP Billiton, the world's largest mining company, may report full-year earnings 22% greater than earlier forecast because of higher metal prices, Royal Bank of Scotland Group plc said.

BHPB's profit after tax may be US$10.68 billion in the year ending June 30, analysts led by Warren Edney said in a report dated yesterday. Profit may be US$14.9 billion in the year ending June 30, 2011, up 11% on an earlier forecast, he said.

The bank lifted its forecast for copper in this financial year by 28% and 20% the following year. Copper has gained 95% this year.

"BHPB is one of the best-placed miners to take advantage of the global economic recovery and the subsequent increase in commodity demand," Mr Edney said. He has a "buy" rating on the company.

Mr Edney increased his target price for the stock by 8.8% to A$46.86. BHPB declined 2.7% to A$36.20 at the 4:10pm Sydney time close on the Australian stock exchange.

(Bloomberg, Oct 2)