BHP Billiton stock outlook january 2012

BHP Billiton stock outlook january 2012 : BHP Billiton (LON:BLT) said that iron ore production increased 4% q-o-q and 22% y-o-y in Q2 2012, while half-year annual production increased 23% y-o-y, in a production update for its first half which ended in December. Production of petroleum products increased 56% y-o-y in Q2 2012 and 36% y-o-y in H2 2012.

Aluminium production was flat for the quarter and half year. The mining for base metals including copper, lead, zinc, silver and uranium oxide declined, with notable declines in production of zinc (H1 2012: -33% y-o-y and -23% in Q2 2012) and copper (H1 2012: -16% y-o-y and -7% in Q2 2012).

Our view: The company's aggressive expansion plans to mine iron ore in the Pilbara region of Australia matches that of rival Rio Tinto. However, BHP's stock is more expensive than that of Rio Tinto (P/E of 8.2x compared to Rio's 6.8x). We prefer Rio and maintain a Hold recommendation for BHP. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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