While the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has managed to edge back into the black this afternoon, shares in BHP Billiton Limited (ASX: BHP) remain firmly in the red. The shares have dropped 21c today or 0.54%, taking their price to $38.89.
The shares have ranged between a low of $34.35 and a high of $39.79 over the last 12 months in what has been a rather rollercoaster-like display. They remain just 2.3% below that 52-week peak.
Today's movement could be a sign of profit taking. Investors have watched their shares appreciate 8.3% over the last four weeks, so there is a chance they are taking some of their profits today. In saying that however, Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) have also rallied this month and their shares are up 0.6% and 1.5% today, respectively.
The fall could also be attributed to reports that the miner is considering reactivating its Olympic Dam project. The copper-uranium project was shelved two years ago based on the grounds that commodity prices were falling, while the costs of proceeding with the project would be too great. Although the project remains a key growth prospect for the miner, investors may be uneasy about the decision.
A better bet than BHP Billiton
Thanks to its high level of diversification, BHP remains one of the safest bets from the mining sector. Although it is trading near its 52-week high, it would still make for a good acquisition today.
