BHP Could Net $6 Billion By Selling Olympic Dam Stake: Deutsche WSJ, By Robb M. Stewart, 8 June 12 With question marks hanging over the timing of BHP Billiton’s massive expansion of the Olympic Dam mine in South Australia, could a sale of a minority stake to a strategic partner offer the answer?….. The expansion of Olympic Dam is one of three $10 billion-plus “mega” projects that BHP’s board is due to decide on by the end of the year.
But with costs in Australia and other countries escalating and commodities prices slumping, the thinking of many analysts is that approval for one or more projects will be deferred.
In a research report, Deutsche valued Olympic Dam after all five phases of its expansion at about $14 billion on a life-of-mine net present value. But the internal rate of return was a modest 11.3% due to the large upfront cost to develop an open pit at the mine site….. http://blogs.wsj.com/dealjournalaustralia/2012/06/08/bhp-could-net-6-billion-by-selling-olympic-dam-stake-deutsche/