BHP (NYSE:BHP) -1.2% post-market Wednesday after saying it will take a combined ~$5.7B in impairment charges for the half-year ended in December 2023: $2.5B for its Western Australia Nickel business and another $3.2B related to its Samarco dam failure.
BHP (BHP) said it will take the impairment on the nickel business because it does not expect conditions to improve any time soon, after prices of the metal have been roughly cut in half since the start of 2023; also, capital costs for the business have increased due to inflation.
The company said its Kambalda concentrator will be placed into care and maintenance in June following Wyloo’s decision to suspend its Cassini and Northern Operations mines, and also is reviewing development plans for Western Australia Nickel “with a focus on preserving cash, which includes the potential to place Nickel West into a period of care and maintenance.”
BHP (BHP) said its $3.2B writedown on the Samarco dam disaster will take its provision to $6.5B at year-end 2023.
