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Australian Mining Company BHP Billiton is Having a G’Day

>Stock experts have become very interested in Australia’s BHP Billiton (BHP) natural resource stock option. The company, valued around $175 billion, is one of the largest mining companies in the world and takes up 14% of Australia’s entire market index.

BHP has over 100 operations in 25 countries with a sales concentration in Asia and Europe. China has taken a huge interest in BHP’S iron ore and has generated more than 20% of sales in the company’s $50.2 billion fiscal 2009 sales.

Aside from iron ore, metallurgical coal, petroleum, base metals and energy coal businesses have contributed to 13-16% of this year’s sales.

Petroleum business is poised to become a great hedge fund against the rise in mining costs that have been resulting from higher energy prices.

Stock experts believe that shares in BHP will start expanding due to an earnings growth and a higher value Australian dollar.

Shares in the company trade at around 18 times any forward earnings estimates. This should prove to be a low-risk stock due to the company’s position on sustainable earnings growth.

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