[miningmx.com] – BHP Billiton CEO, Andrew Mackenzie, alluded to the possibility the group could cut its dividend when it announces its financial figures in February, said Reuters citing comments to the firm’s December quarter production results in which no mention was made of a medium-term recovery for iron ore or coal.
Mackenzie said it was important to keep balance sheet flexibility so that it could capitalise on the recovery of copper and oil over the medium-term. “In this environment, we are also committed to protecting our strong balance sheet so we have the financial flexibility to manage further volatility,” he said.
“We have written that BHP will either need to meaningfully cut future capex or its dividend, and we stick to that view,” Clarksons Platou analyst Jeremy Sussman told Reuters.
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