17th Oct 2019 06:54
(Alliance News) - Australian miner BHP Group PLC on Thursday retained its production guidance for financial 2020 despite recording a decline in first quarter production for all commodities, except copper.
For the three months to the end of September, BHP's copper production was 429,500 tonnes, up 5% from 409,100 tonnes the year before, following record concentrator throughput as the Escondida mine in Chile.
Due to the unexpected throughput lift, the company has kept its full-year copper production guidance at 1.16 million tonnes to 1.23 million tonnes.
Iron ore production for the quarter declined by 1% to 61.0 million tonnes from 61.4 million tonnes, as a result of planned maintenance at the Port Hedland area in Australia. Annual iron ore production is estimated between 242 million to 253 million tonnes.
First quarter metallurgical coal production slipped by 10% to 9.4 million tonnes from 10.4 million tonnes due to planned major wash shutdowns at Goonyella, Peak Down and Caval Ridge at BHP's Queensland Coal operations in Australia. Production guidance for financial 2020 remains at between 41 million to 45 million tonnes.
Energy coal production dropped by 15% to 5.6 million tonnes due to adverse weather conditions at the Cerrejon mine in Colombia and a change in product strategy in BHP's New South Wales Energy Coal operations in Australia.
However, BHP kept its production guidance for energy coal at 24 million to 26 million tonnes.
Petroleum production also fell by 11% in the quarter to 29 million barrels of oil equivalent due to natural field declines and the impact of tropical storm Barry in the Gulf of Mexico. BHP expects annual petroleum production between 110 million and 116 million barrels.
"We delivered a solid start to the 2020 financial year through ongoing strong operational performance across our portfolio. While group production for the quarter decreased slightly due to the expected impacts of planned maintenance and natural field decline in petroleum, guidance remains unchanged and we are on track to deliver slightly higher volumes than last financial year," said BHP Chief Executive Andrew Mackenzie.
Shares in BHP were down 3.3% at AUD34.86 on Thursday in Sydney.
By Dayo Laniyan; [email protected]
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