BHP tightlipped about whether or not the big new Olympic Dam uranium mine will actually go ahead
For all the hype about its planned “biggest uranium mine in the world” at Olympic Dam, BHP is experiencing some jitters, as shareholders are not so keen on seeing the company blow $30 billion on this behemoth, before there’s a sign of any profit from this geewhiz dream of CEO Marius Kloppers.
BHP Seeks Friends in Volatile Times, Wall Street Journal, 19 July 12“…..fuel for volatility in BHP’s shares is the question of BHP’s spending discipline. Commonwealth Bank has said it remains concerned by the company’s capital allocation policy, and believes the market would rather see windfall cashflow returned to shareholders via dividends or share buybacks…
BHP has declined to comment on the progress of the multibillion dollar projects, including the expansion of the OlympicDam copper-uranium mine in South Australia …“Cuts to capex [capital expenditure] and growth profile are…likely if commodity prices weaken further than expected,” Citi analysts said.