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2/21/17 (Two Links)>Mining giant BHP Billiton (BHP) reported soaring fiscal first-half earnings early Tuesday and raised its dividend.

BHP Billiton earned $3.244 billion in underlying six-month profit, a 687% year-over-year gain, thanks to higher prices for the metal ore and crude oil that it produces. That missed analyst estimates slightly according to Thomson Reuters, but topped views based on the consensus according to Dow Jones and Bloomberg. Revenue jumped 20% to $18.8 billion. BHP also raised its interim dividend to 40 cents a share, up 150% vs. a year earlier and also above some views.

Government mediation between BHP Billiton and striking workers at the Chile's Escondido mine broke down Monday. Workers have been striking for nearly two weeks. But that's helping to push up copper prices. So is a standoff between copper miner Freeport McMoRan (MO) and Indonesia. The Grasberg mine, the world's No. 2 copper mine. Assuming the export halt continues, it would cut Freeport's Q1 copper production by 17% and gold output by 59%. Freeport already missed fourth-quarter earnings estimates. Rio Tinto (RIO) also has a significant interest in Grasberg.

more http://www.investors.com/news/mining-giant-bhp-billiton-earnings-surge-687-dividend-hiked-150/

Miners boosted by commodity prices

wo of the world's biggest mining companies, BHP Billiton and Anglo American, have reported a sharp increase in profits, boosted in part by the rise in commodity prices.

BHP's half-year profits were $3.24bn (£2.6bn), up from $412m a year earlier.

Chief executive Andrew MacKenzie said told the BBC the strong results were also helped by improved productivity.

Anglo American reported full-year profits of $1.6bn compared with a $5.6bn loss in 2015.
China impact

BHP's Mr MacKenzie said the results followed a five-year plan to "improve productivity and redesign our portfolio and operating model".

"Our steadfast commitment to this plan has positioned us to take full advantage in a period of higher prices," he added.

The price of some commodities has risen, in part because of increased demand from China. Iron ore has risen by more than 80% and coal by up to 300%.

However, Mr MacKenzie said there was another factor at play: "China's improved a little bit but I would say much of what's going on in terms of the iron ore price is down to less production of iron ore elsewhere and companies like us have been able to fill that gap.

"The Chinese economy is going quite strongly at the moment, partly down to stimulus that was stated probably about three quarters back, and that has really pushed up the premia for high quality iron ore and metallurgical coal and they're our principle products."

But in its statement, BHP said China's economic growth was expected to moderate in the coming year, with the housing and car markets expected to cool. It also said "exports may be challenged by the rising threat of protectionism".

Commenting on Anglo American's results, chief executive Mark Cutifani said: "The high quality assets across our De Beers, platinum group metals and copper businesses underpin our positions in those respective markets and are the cornerstone of a more resilient and competitive Anglo American, through the economic and commodity price cycle.

"In addition, we continue to benefit from the performance of a number of other world class assets across the bulk commodities of iron ore and coal, as well as nickel."

http://www.bbc.com/news/business-39037194