BHP Demerger

May 19, 2015

BHP spin-off South 32 had a cautious debut  on the ASX yesterday. South 32, named after the line of latitude that runs through a number of its major assets in Australia and South Africa, will produce aluminium, silver, manganese, zinc, lead, nickel and coal. At the first day closing price of $2.05 the company has a market capitalisation of around $10 billion which places it as Australia’s third largest miner and within the top 50 Australian companies by capitalisation.

Morgan Wealth LogoThe new company represents around 10% of the value of BHP prior to the demerger. With tepid investor appetite for the mining sector currently holding sway, South 32 is likely to have a wide trading range before settling. BHP will now consist of its four key commodities of iron ore, coal, copper and petroleum.

Our Top Recommendations
Total returns on capital growth and dividends for 12 months ended 31 March 2018
Altium
165.13%
Orocobre
93.60%
Reliance Worldwide
55.73%
Blue Sky Limited
34.56%
ResMed Inc
34.40%
RCR Tomlinson
28.96%
iShares Asia 50 ETF
28.90%
CSL Limited
25.57%
Platinum International Fund
19.86%
Macquarie Group
19.46%
ASX200 Accum Index (for comparison)
2.54%