Dividend ExpectationsWith the possible additional provisions from the Mariana settlement and lower cash flow generation from lower iron prices, the likelihood of extraordinary dividends is reduced.
Legal SettlementThe proposed settlement amount is within the range of values mentioned by the press over the past year so falls broadly within expectations, yet there is still likely to be some back and forth between the government and the three companies before a final settlement is reached.
Provisioning RiskBHP announced a $3.1bn additional provision related to Samarco, taking the total balance to $6.5bn, which could impact the company's financial stability.