BHP Full-Year Profit Plunges 81% on Price Collapse

The video discusses the end of a commodity slump, focusing on oil and iron ore. It highlights the volatility in prices and the potential for short-term pressure. Despite this, companies like BHP Billiton are still generating cash and paying dividends. The discussion shifts to the importance of cash costs and the need for commodity prices to rise. The elasticity of supply and demand is examined, with a focus on BHP Billiton's strategic decisions regarding cap ex and market positioning. The video concludes with an analysis of China's economic impact on the mining industry and the need for supply adjustments.

What is the current state of the commodity market according to the first section?

• Prices are expected to rise significantly.

• The market is experiencing a free fall in prices.

• There is short-term pressure with a neutral outlook.

• Investors are not receiving any dividends.

Why is the company still able to pay dividends despite market conditions?

• Because of high commodity prices.

• Due to reduced operational costs.

• Due to its ability to generate large amounts of cash.

• Because of government subsidies.

What is the company's current focus to drive its bottom line?

• Increasing supply of commodities.

• Expanding into new markets.

• Reducing cash costs.

• Raising capital expenditure.

What is a significant factor that could drive commodity prices upwards?

• Increased government regulations.

• Stable market conditions.

• A decrease in demand.

• A decrease in supply.

What is the company's expectation for China's GDP growth in the coming year?

• Between 6.5% and 7%

• Between 5% and 6%

• Below 5%

• Above 7%