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BIL 201705160013A
2017 Global Metals Mining and Steel Conference
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
Issued by: BHP Billiton Plc
Date: 16 May 2017
To: London Stock Exchange
JSE Limited
For Release: Immediately
Contact: Helen Ratsey +44 (0) 20 7802 7540
BHP Billiton Plc – 2017 Global Metals, Mining and Steel Conference Presentation
UK Listing Authority Submissions
The following document has today been submitted to the National Storage Mechanism
and will shortly be available for inspection at www.hemscott.com/nsm.do:
- 2017 Global Metals, Mining and Steel Conference Presentation
The document may also be accessed via BHP Billiton’s website - www.bhpbilliton.com
BHP Billiton Plc Registration number 3196209
Registered in England and Wales
Registered Office: Nova South, 160 Victoria Street, London SW1E 5LB UK
A member of the BHP Billiton Group which is headquartered in Australia
NEWS RELEASE
Release Time IMMEDIATE
Date 16 May 2017
Release Number 16/17
BHP provides update on progress to grow value and improve returns
BHP Chief Executive Officer Andrew Mackenzie today updated progress on
the Company’s roadmap to grow long-term shareholder value.
Speaking at the Bank of America Merrill Lynch Global Metals, Mining & Steel
Conference, Andrew Mackenzie said: “At this conference one year ago, I
outlined ambitious plans to improve returns and grow the value of BHP. Since
that time, we have made consistent progress and we are confident that
continued delivery of these plans, from our stronger base today, could grow the
value of our Company by up to 50 per cent and almost double the return on
capital.”
Mr Mackenzie outlined key contributors to value creation. These include the
following:
- Further cost reductions support a 10 per cent value uplift as we continue
to leverage our simple portfolio, standardised systems and greater
connectivity across the Company to further improve safety and
productivity.
- The release of more latent capacity across the portfolio offers attractive
returns for low-risk. For a total investment of US$5 billion, these
opportunities could add over 20 per cent to current production at an
average return of 75 per cent.
- Substantial advances in the operating capability and capital productivity
of our shale assets continue to lower drilling and completion costs,
supporting returns on invested capital in excess of 30 per cent on
incremental investments. All options to fully realise the value of our
shale acreage will be pursued, including further appraisal, new
technology and additional asset sales and swaps. We will be flexible
with our plans and commercial in our approach.
- Major growth projects valued at up to US$25 billion offer potential
average returns of over 16 per cent at consensus prices. The Spence
Growth Option will be considered by the Board in August 2017. Studies
on the Olympic Dam expansion are progressing well. A phased
expansion of our Jansen potash project is expected to generate
competitive returns in stage 1, with significant potential upside in
subsequent stages.
- Our focused Petroleum exploration program has an unrisked value of
over US$20 billion, close to a quarter of which sits in low to medium risk
prospects to be tested in the next two years. Recent successes in the
Gulf of Mexico and Trinidad and Tobago, along with the successful
Trion bid, give us the confidence to accelerate our counter-cyclical
investment.
- Technology programs to improve safety, lower costs and unlock
resource with an unrisked value of up to US$12 billion are among the
most capital efficient options in the portfolio. Attractive options include
leaching optimisation, mass mining methods and precision extraction.
“We have achieved a great deal over the past year but we are not standing
still. Our roadmap today contains an enhanced set of opportunities that will see
us prosper and grow value per share throughout the cycle, and in multiple price
scenarios.
“Above all, we will remain disciplined, and drive consistent and transparent
application of our capital allocation framework, which includes cash returns to
shareholders.
“Our path is deliberate, with value and returns at the centre of everything we
do.”
Further information on BHP can be found at: bhpbilliton.com
Sponsor: UBS South Africa (Pty) Limited
Media Relations Investor Relations
Australia and Asia Australia and Asia
Ben Pratt Tara Dines
Tel: +61 3 9609 3672 Mobile: +61 419 968 734 Tel: +61 3 9609 2222 Mobile: +61 499 249 005
Email: Ben.Pratt@bhpbilliton.com Email: Tara.Dines@bhpbilliton.com
Paul Hitchins Andrew Gunn
Tel: +61 3 9609 2592 Mobile: +61 419 315 001 Tel: +61 3 9609 3575 Mobile: +61 402 087 354
Email: Paul.Hitchins@bhpbilliton.com Email: Andrew.Gunn@bhpbilliton.com
Fiona Hadley United Kingdom and South Africa
Tel: +61 3 9609 2211 Mobile: +61 427 777 908
Email: Fiona.Hadley@bhpbilliton.com Rob Clifford
Tel: +44 20 7802 4131 Mobile: +44 7788 308 844
Amanda Saunders Email: Rob.Clifford@bhpbilliton.com
Tel: +61 3 9609 3985 Mobile: +61 417 487 973
Email: Amanda.Saunders@bhpbilliton.com Elisa Morniroli
Tel: +44 20 7802 7611 Mobile: +44 7825 926 646
Kester Hubbard Email: Elisa.Morniroli@bhpbilliton.com
Tel: +61 7 3227 5671 Mobile: +61 408 727 261
Email: Kester.Hubbard@bhpbilliton.com Americas
United Kingdom and South Africa James Wear
Tel: +1 212 310 1421 Mobile: +1 347 882 3011
Neil Burrows Email: James.Wear@bhpbilliton.com
Tel: +44 207 802 7484
Email: Neil.Burrows@bhpbilliton.com Cristian Coloma
Tel: +1 713 235 8902 Mobile: +1 346 234 8483
North America Email: Cristian.CA.Coloma@bhpbilliton.com
Bronwyn Wilkinson
Mobile: +1 604 340 8753
Email: Bronwyn.Wilkinson@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
LEI WZE1WSENV6JSZFK0JC28 LEI 549300C116EOWV835768
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Registered Office: Nova South, 160 Victoria Street
Melbourne Victoria 3000 Australia London SW1E 5LB United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is
headquartered in Australia
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