In addition, BHP s shares have fallen particularly heavily over the last five trading days as a resu

It s been a dogged year for investors in BHP Billiton Limited (ASX: BHP), and for investors in the iron ore sector as a whole. With iron ore down 47% since the beginning of the year at just US$71 a tonne, BHP s shares process have dropped 18.7% over the last 11 months.
With just over three weeks remaining in this calendar year however, it s time investors put 2014 behind process them to focus on what s in store for the miner in 2015. Here s a guide to the Big Australian in the year ahead..
Some of the key things you need to be aware of which will impact BHP s overall process performance include: Total group production growth of 16% over FY15 Metallurgical coal production of 47 million tonnes (Mt), up 4% Energy coal production to hit 73Mt, down from 73.5Mt in FY14 Western Australian process Iron Ore (WAIO) production guidance of 245Mt Iron ore production tipped for 225Mt, up 10% Petroleum production guidance at 255 million barrels of oil equivalent, up 4% Total copper production to hit 1.8Mt, up 5%
As can be seen from the numbers mentioned above, BHP Billiton will continue to expand production in its four pillar commodities in an effort to improve efficiency and reduce operational costs. What the numbers do not reflect however, is the impact of falling prices across the iron ore, coal and petroleum process industries.
BHP s increase in production may only partially offset the heavy fall in commodity prices. As an example, while iron ore production process is set to increase by 10%, the price it recognises will fall substantially further. In fact, some analysts expect the commodity to drop below US$60 a tonne which could severely impact the miner s margins. process
In addition, BHP s shares have fallen particularly heavily over the last five trading days as a result of the crumbling oil price. process Oil has fallen around 40% in the last six months and is expected to fall even further in the year ahead. Given that petroleum products make up around a quarter of BHP s overall revenues, that could also have a major impact on BHP’s earnings.
Investors who have been holding out for greater shareholder returns may also be in for more disappointment. While the miner has made its intentions clear on improving returns, the falling commodity prices may make it impossible to do so in FY15.
On the plus side, the miner is pushing ahead with its demerger plan which should help unlock shareholder value. Currently dubbed NewCo , the spin-off would include most of the miner s non-core assets which would allow both entities to focus on maximising efficiency and overall process value.
At $30.68 per share, BHP Billiton certainly warrants a position on your watchlist but may not be the greatest stock to buy right now. Given the high level of volatility and uncertainty facing the sector along with further falls expected in commodity prices we could well see this ship sink further before it begins to resurface. Until then, there are plenty of other great ASX stocks to buy before 2015..
Handpicked by our investment experts, this promising ASX stock boasts a fully franked yield of nearly 6% ... putting term deposits to shame! You can get the name and code FREE in our brand-new report, "The Motley process Fool's Top Dividend process Stock for 2015." Click here now for your free copy.
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It’s been a dogged year for investors in BHP Billiton Limited (ASX: BHP), and for investors in the iron ore sector as a whole. With iron ore down 47% since the beginning of the year at just US$71 a tonne, BHP’s shares have dropped 18.7% over the last 11 months. With just over three weeks remaining in this calendar year however, it’s time investors put 2014 behind them to focus on what’s in store for the miner in 2015. Here’s a guide to the Big Australian in the year ahead.. What you need to know Some of the key things process you need to be aware…
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading process for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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