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Value and returns at the centre of everything we do

In 2016 our CEO, Andrew Mackenzie, announced our 6 point plan to grow value and returns BHP and our shareholders. Here's Andrew talking to the plan:

BHP CEO Andrew Mackenzie speaks on our 6 point plan to grow value [video]

An update on our plan to grow shareholder value


1. Cost Efficiencies

Focused on further gains

We have reduced unit costs by more than 15%.

Since 2012 our annualised productivity gains have exceeded US$12 billion and we’ve targeted a further US$2 billion in gains by the end FY2019.

Our Plan to Grow Value - Cost Efficiencies


2. Technology

Improve safety, lower costs and unlock resource

We have sharpened our focus on technology to redefine what is possible.

Three new Integrated Remote Operations Centres have been implemented at our Mineral assets and we will continue to accelerate high-value initiatives such as mine autonomy.

Our Plan to Grow Value - Technology


3. Latent Capacity

Attractive returns, limited risk

Latent capacity projects allow us do more with what we’ve already got through building on existing infrastructure. They are often high return, low risk and some of the best investments we can make.

Over the last two years we have sanctioned five latent capacity opportunities and have developed a suite of new initiatives in their place, with an average return of greater than 100 per cent.

Our Plan to Grow Value - Latent Capacity


4. Future Options

Worked for value, timed for returns

We’ve approved two major projects in copper and oil that will cement our future in these commodities.

We have improved the risk-return profile of our other major projects and will continue to be guided by our capital allocation process to make sure we get the most out of every dollar invested.

Our Plan to Grow Value - Future Options


5. Exploration

Focused on copper and petroleum

We are excited by the opportunities we are exploring in oil and copper.

We’ve made discoveries at four petroleum exploration prospects and also successfully bid on the Trion discovered resource in Mexico.

We continue to seek, secure and test high potential copper discovery locations like Ecuador, Canada and Peru.

 

6. Onshore US

Exit to maximise value and returns

We have improved the performance of our Onshore US acreage as we prepare for exit into a supportive price environment.

Our Plan to Grow Value - Onshore US


BHP Chief Executive Officer Andrew Mackenzie updated progress on the Company’s roadmap to grow long-term shareholder value. See the presentation or listen to the audio webcast.

1. Unit cost reduction: Copper equivalent unit costs between FY15 and FY17. Copper equivalent production based on FY17 average realised prices.
2.
Average returns: Returns at 2016 analyst consensus price forecasts; ungeared, post-tax, nominal return.


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