Why did the BHP (ASX:BHP) share price move up by 8% in November?

The mining giant gave the market plenty of good news in November.

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Three mining workers stand proudly in front of a mine smiling because the BHP share price is rising

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The BHP Group Ltd (ASX: BHP) share price ticked up a notch during November following a raft of company announcements. For the month, the mining giant’s shares posted an 8.13% gain, highlighting renewed investor optimism.

And today, the BHP share price is continuing to ride on the momentum, up 1.35% to close at $39.90.

What happened to BHP in November?

Investors pushed the BHP share price higher last month following the company’s annual general meeting (AGM) on 11 November.

Management noted an exceptionally challenging time as COVID-19 disrupted commodity prices and global operations. Despite the complexity, BHP handled the situation by adapting quickly to keep its world-class assets running safely and efficiently.

The company advised that it has a clear strategy to deliver long-term value by repositioning its portfolio towards future-facing commodities.

As such, BHP made strong progress towards meeting its commitments to trim operational and value-chain emissions. At an estimated cost of US$2.4 billion, the miner established a pipeline of decarbonisation projects to decrease emissions by at least 30% by FY30.

Management also discussed the impending end of the group’s dual-listed company structure.

The 20-year-old dual-listed company structure began when BHP Ltd merged with Billiton Plc. The corporate structure enabled both companies to amalgamate without legally acquiring or merging, creating a tax-efficient business structure.

Shareholders are expecting to receive a 1-for-1 swap of PLC shares to BHP shares.

In a separate release dated 22 November, the company provided an update on the proposed merger of its petroleum business with Woodside Petroleum Limited (ASX: WPL). It stated that a binding share sale agreement (SSA) had been entered, paving the way to create a global energy company.

BHP is aiming to complete the deal in the second quarter of 2022.

The after-market release sent the BHP share price 4% higher the following day, hitting a 1-month high at the time.

BHP share price summary

Since the beginning of the year, the BHP share price has moved in circles due to a volatile market environment. The share price is down 7.34% over the past 11 months.

This is in stark contrast to August when the BHP share price was tracking about 25% higher year-to-date.

Based on today’s price, BHP presides a market capitalisation of $117.7 billion and has approximately 2.95 billion shares outstanding.

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Motley Fool contributor Aaron Teboneras owns shares of Woodside Petroleum Ltd. 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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