17th Oct 2024 08:23
(Alliance News) - BHP Group Ltd on Thursday reported disappointing production for the first three months of its financial year on a quarterly basis, but the annual performance was strong across most of its operations.
The Melbourne-based diversified miner also indicated it was on track to meet its production guidance for the 2025 financial year.
On an annual basis, copper production was up 4.2% at 476,000 tonnes for the first quarter that ended September 30 from 457,000 tonnes in the same quarter a year before.
But copper output fell 5.7% from 505,000 tonnes in the fourth quarter to June 30, due to lower production due to planned maintenance, lower concentrator throughput and production across leaching at Escondida in Chile, and planned lower grades at Spence also in Chile.
Average realised copper price on an annual basis rose 17% to USD4.24 per pound from USD3.63 a pound.
For the 2025 financial year, annual copper production is seen between 1.84 million tonnes and 2.04 million tonnes, compared to 1.86 million tonnes a year earlier.
Iron ore production on-year rose 3.2% to 65 million tonnes from 63 million tonnes, but output was down 5.8% from 69 million tonnes on a quarterly basis as a result of planned equipment maintenance at Western Australia Iron Ore, or WAIO, in Australia.
Realised iron ore price declined 18% on average to USD80.10 per wet metric tonnes on-year from USD98.04.
BHP estimated annual iron ore production at between 255 million tonnes and 265.5 million tonnes, from 260 million tonnes.
In steelmaking coal, production dropped 20% to 4.5 million tonnes on an annual basis from 5.6 million tonnes. Steelmaking coal output was down 8.2% from 4.9 million tonnes in the fourth quarter.
On average, the realised steelmaking coal price was 9.4% lower at USD214.86 per tonne from USD237.07.
BHP said it sees signs of stabilisation in steelmaking coal business. Annual steelmaking coal production is projected between 16.5 million tonnes and 19 million tonnes, down sharply from 22.3 million tonnes.
But energy coal production was up 2.7% to 3.7 million tonnes annually from 3.6 million tonnes, though it fell 2.6% from 3.8 million tonnes on a quarterly basis.
Average realised energy coal price was down 1.1% to USD124.32 per tonne from USS125.66.
For 2025 financial year, annual energy coal output is expected to be between 13 million tonnes and 15 million tonnes from 15.4 million tonnes.
BHP said nickel production fell 2.9% to 19,600 tonnes on-year from 20,200 tonnes, and slumped 15% from 23,000 tonnes in the fourth quarter.
"BHP had a strong start to the 2025 financial year, with production up across all major commodities for the quarter," BHP Chief Executive Officer Mike Henry said.
BHP shares were down 2.6% at 2,180.00 pence in London on Thursday morning, and down 2.7% at ZAR501.50 in Johannesburg. They closed 1.3% lower at AUD42.99 in Sydney.
By Artwell Dlamini, Alliance News reporter
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