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ANALYST VIEWS: IS BHP’S DECISION TO INCREASE CAPITAL SPENDING A SURPRISE?

IVOR PETHER | ROYAL LONDON ASSET MANAGEMENT
Xstrata emphasised its capital spending projects yesterday so BHP are just continuing the theme. However its joint venture with Rio has been delayed. Overall it is a good set of results although the debt level is higher than expected. The main base metals and petroleums divisions improved substantially.

CHARLIE GIBSON | EDISON MINING
The capital spending is consistent with BHP’s good year and the fact that it made a reasonable amount of money. When profits allow it will invest. The results are nothing that the market didn’t expect and are on line with expectations - it’ll interesting to see the comparison with Rio’s results tomorrow.

TOM GIDLEY-KITCHIN | CHARLES STANLEY GROUP
BHP’s results were ahead of expectations and there were no major shocks. The economy remains fragile and the miner was right to make that clear in its statements. The positives are the joint venture with Rio Tinto and the fact that steel demand in China has picked up.