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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30479)	12/17/2008 8:54:15 PM
From: LoneClone	Read Replies (1) \| Respond to of 194964

BHP Billiton says in strong financial position Wednesday December 17, 8:19 pm ET ca.us.biz.yahoo.com BHP Billiton says in strong financial position; no plans to begin new projects SYDNEY, Australia (AP) -- Mining giant BHP Billiton is in a strong position to weather the financial crisis and will continue to expand existing operations, the chairman said in a letter to shareholders Thursday. Don Argus acknowledged that uncertainty in international commodity markets remains a challenge but said the company's "strong balance sheet" and existing portfolio would give it the flexibility to respond to fluctuating demands for its products. "I want to be very clear that BHP Billiton, as a standalone company, is in a strong financial and operating position," Argus said. "As to the future, we have a portfolio of long-life, low-cost, expandable, tier one assets," he said. "As a result of this portfolio, and low-cost position, BHP Billiton's margins are the highest among the industry and in these difficult times, we expect to outperform our peers." The company has a net debt of $6.3 billion at the end of October, against a market capitalization of around $115 billion as of Thursday. Argus said "robust cash flows" would continue to support investments. The company plans to focus on "lower risk brown-field expansions in areas we know" during the current economic uncertainty rather than start new projects in new places, Argus said. The miner also said it is ready to respond if production cuts become necessary. The letter follows BHP Billiton's decision in November to abandon its bid to take over fellow miner Rio Tinto Ltd. Argus said the decision had been difficult but was the best course for shareholders. Argus said the miner's priorities for cash flow were to invest in core businesses, manage its balance sheet to a solid single A credit rating, maintain a progressive dividend policy and return any surplus cash to shareholders. The global miner closed Wednesday up 36 cents at $44.68 on the New York Stock Exchange.