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2026-02-17 17:34:13
[BHP Billiton's Profits Grow by 22%: Can Innovative Financing Model Drive Valuation Restructuring?] ⑴ Global mining giant BHP Billiton released its interim report on Tuesday, showing strong performance. In the six months ending December last year, the company achieved a basic net profit attributable to shareholders of US$6.2 billion, a year-on-year increase of 22%, while revenue also increased by 11%. Boosted by this, the company's shares listed in Sydney closed up 4.75% at A$52.74, a record high. ⑵ At the same time as the earnings release, CEO Murray Hamel announced an innovative financing arrangement. BHP Billiton reached a long-term silver flow transaction agreement with Wheaton Precious Metals, involving future silver production from the Antamine mine in Peru. Under the agreement, Wheaton will make an upfront payment of US$4.3 billion, with settlement based on 20% of the spot price per ounce of silver delivered in the future. ⑶ This transaction brings BHP Billiton a substantial upfront cash inflow, strengthening its balance sheet without diluting equity. Han Murray has consistently emphasized that a diversified asset portfolio is key to the company's value, but also hopes the market will give it a valuation multiple similar to that of pure copper miners. (4) While strong earnings and innovative silver mining deals have supported the share price increase, market analysts believe this is insufficient to drive a comprehensive valuation reassessment. Investors are still watching to see if this asset portfolio strategy and financial innovation can truly change the market's pricing logic for this diversified giant.
