Mining companies like BHP Billiton have been facing a tough time since the end of the commodity super cycle in 2011. Based in Australia, BHP is one of the largest, most cost effective producers of materials such as iron ore, copper, petroleum and coal. The commodity super cycle caused participants to ramp up production, which lead to overcapacity when demand declined, leading to lower commodity prices.
CEO Andrew Mackenzie is not as worried. “Cycles are part of our industry,” Mr. Mackenzie said. “We have to get better in the way we operate” rather than rely on markets improving, he said. BHP has been at this game for decades, and has been through many commodity cycles. Through the cycle, BHP investors get paid a solid growing dividend to wait while they hold stock in one of the premier operators in the segment.
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