BHP (ASX: BHP) share price gains amid CEO’s ‘strong growth outlook for China’

Here’s what BHP’s future might look like, according to its boss
The post BHP (ASX: BHP) share price gains amid CEO’s ‘strong growth outlook for China’ appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price is in the green this morning after the company’s boss outlined its future plans yesterday.

BHP’s CEO Mike Henry reportedly told a conference the company expects big things for its future trade with China.

Additionally, Henry revealed the company hopes to expand its activities into new jurisdictions in a quest for more nickel, copper, and potash.

At the time of writing, the BHP share price is $37.41, 2.1% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.77% this morning.

While the effect of the news on the BHP share price is likely negligible, it’s an interesting insight into what BHP’s business may look like by the end of the decade.

Let’s take a closer look at the revelations reportedly made by BHP’s CEO.

Will these changes drive the future BHP share price?

The BHP share price is gaining today amid reports of Henry’s optimistic comments. The BHP boss made the comments at yesterday’s Financial Times’ 2021 Mining Summit.

According to the Australian Financial Review (AFR), Henry told the conference the “complementarity” between the economies of Australia was strong. Therefore, he believes recent political tensions between both nations will dwindle in the future.

Further, he noted the relationship between BHP and its Chinese suppliers and customers is better than ever. Finally, Henry reportedly said: “We do believe that there is a pretty strong growth outlook for China.”

Additionally, the Financial Times has reported Henry used the conference to comment on the company’s expansion plans.

He is said to have outlined his hopes that half of BHP’s revenue will come from future-facing commodities by 2030.

To reach that goal, BHP will look at growing into “tougher jurisdictions” in an attempt to seek out more of the commodities. However, the Financial Times quoted Henry as saying:

I want to be clear, we don’t see exploration success as being confined to moving into new jurisdictions. We know there is more copper to be found in the areas we like but it is going to be harder to find and perhaps deeper, which is going to bring different technological and financial challenges.

The company already mines minerals for the future economy, notably nickel and copper. In fact, just yesterday the Motley Fool Australia reported BHP recently signed another agreement to supply nickel for electric vehicle batteries.

Henry’s comments are unlikely to be the cause of the BHP share price gains on Friday. Still, they may have pricked the ears of investors interested in BHP’s future.

The post BHP (ASX: BHP) share price gains amid CEO’s ‘strong growth outlook for China’ appeared first on The Motley Fool Australia.

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More reading

CBA (ASX:CBA) warns iron ore price will fall by 27% in the next year
Own BHP shares? Here’s the latest on the miner’s nickel and EV battery play

What is the BHP (ASX:BHP) share price outlook?
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Why is the BHP (ASX:BHP) share price trading at 10-month lows?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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