Huge drop in value - Mining/Gas/Ag town - what to do??

Discussion in 'Investment Strategy' started by MBO, 1st Feb, 2016.

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  1. radson

    radson Well-Known Member

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  2. Inov8ive

    Inov8ive Well-Known Member

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    I swear sometimes it feels like people are seriously just trolling with some of these utterly ridiculous statements. Out of all the companies that need support and assistance in this country I rate the foreign owned mining companies as somewhere toward the bottom. Anyone would think BHP & RioTinto were out there saving orphans or planting trees, I mean get a clueo_O
     
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  3. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    And while you are so anti-tax, I challenge you to turn off your tax benefited water supply, your electricity and your internet service. All services funded by tax funded infrastructure.

    I dare you to live as though you actually believed and knew what your words mean.
     
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  4. kierank

    kierank Well-Known Member

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    BHP Total Revenue: US$52.267B


    BHP Profit After Tax: US$1.910B

    That is, 3.65%

    You call this a BIG profit. Wow, I call it a little better than breaking even!!!!
     
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  5. radson

    radson Well-Known Member

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  6. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    So you know commodity prices have completely collapsed right!

    However, in good times, BHP and their shareholders benefitted. And now they are crying because share price reflects their earnings. Their share price is where it was decades ago.

    BHP still operates in profit. It still exists.

    But in the meantime, the communities and the countries they are operating in are suffering.

    Does that not tell you that the scales are always in BHP's favour.
     
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  7. radson

    radson Well-Known Member

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    Did you actually read your link?

    noting the miner paid $US5.2bn in tax, royalties and other payments to government in the last financial year, with payments of $US7.3bn to governments worldwide.
     
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  8. radson

    radson Well-Known Member

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    I actually thought the 'Mining tax' is a good idea in theory. Tax super profits when commodity prices are high to help government smooth the inevitable lows.
     
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  9. Inov8ive

    Inov8ive Well-Known Member

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    Ok this is really gonna be last post on the matter now because we could all easily go onto Google and find one sided information that supports our claim. @radson I don't know if you read the entire document that you posted but it actually very clearly states what most normal people already know: 1stly BHP are transferring a large amount of their profit to Singapore and other tax havens to minimise tax and secondly the tax that they claim to pay is not accurate either because it is combined with Royalties. Thanks for that, I can't be arsed troweling the internet for this stuff.
     
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  10. Inov8ive

    Inov8ive Well-Known Member

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    BHP profit for past five years
    • 2014: $US13.8 billion
    • 2013: $US10.9 billion
    • 2012: $US15.4 billion
    • 2011: $US23.6 billion
    • 2010: $US12.7 billion
     
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  11. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    No. That isn't what I am saying at all.

    The original land holders and communities should benefit from commodity booms....it is their resource. And the likes of BHP should pay royalties to those owners. States benefit from taxing income that is derived for those incomes.

    That way, everyone benefits.

    The present system only benefits the likes of BHP......and an inept Govt who should be representing its voters, not multinationals who owe no loyalty to anyone unless held accountable to pay and do their fair share.
     
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  12. radson

    radson Well-Known Member

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    From those Marxists at the ABC on the same figures:
    BHP Billiton finance chief denies Singapore tax-dodge deal

    Aid group Oxfam has welcomed the BHP report because it states how much tax it pays on a country-by-country and project-by-project basis.

    Also..They also transferred revenue to Singapore not profit and apparently 1/52 of their revenue.

    Yet you do. At least you know now that mining companies pay more than zip..Dont you feel better now :)
     
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  13. radson

    radson Well-Known Member

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    Yeah I dont agree. but I am from a Pilbara perspective and decades of boom and bust. Those communities were only set up to service the mining boom. I think benefits from royalties should be distributed equally across the state. People living in mining towns have benefited by higher wages otherwise they wouldn't live there.
     
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  14. THX

    THX Well-Known Member

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    Did you actually read before you post? I did not say whether I like paying taxes or not, I said paying them is not a choice so your rant is just meaningless.

    What is underneath your land is not your land(in Australia). Why are you having trouble understanding this?

    The state doesn't want it, they already have it. They own it already.

    Current laws are for the communal good. You are the one advocating the community be excluded, let me quote you:
    Your words.
     
    Last edited: 16th Feb, 2016
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  15. THX

    THX Well-Known Member

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    And yet you advocating taking what does not belong to you for yourself. Middle of the road voters don't advocate socialism.
     
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  16. Ran Gus

    Ran Gus Well-Known Member

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    You mean utterly ridiculous statements like 'mining contributes nothing at all to society'?
    See, here's the thing. Nobody is arguing that miners are Mother Teresa. They're just arguing that they aren't anywhere near as bad as some of you are trying to make out.
     
    Last edited: 16th Feb, 2016
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  17. THX

    THX Well-Known Member

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    Mind you even if they were completely evil, mining underpins all of civilization so they would be the most necessary evil around.
     
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  18. kierank

    kierank Well-Known Member

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    This is meaningless. If you are going to quote profit, quote revenue and % profit as well.

    In other words, quote all three, otherwise it is meaningless.

    If BHP made 3.65% profit in FY15, then, for a high risk venture such as a mining company, that is a crap profit. That was my point. Your point was that "BHP was generating such BIG profits in a climate of low commodity prices". BHP isn't and their share price reflects this.

    Apple made US$39.8B profit on US$182.8B revenue. That is 21.6% profit. That's a nice profit.
     
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  19. Big Will

    Big Will Well-Known Member

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    Understand commodity prices have dropped, welcome to the world of supply and demand!

    Why do businesses exist? Why do shareholders buy shares? To make money..

    How much profit do you think is acceptable for BHP to make?

    If you were Gina how much profit would you want BHP to make?
     
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  20. BigKahuna

    BigKahuna Well-Known Member

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    With the best lawyers and tax accountants money can buy, loopholes in the tax system, tax-free havens, what do you expect?
     
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