17th Oct 2019 11:13
(Alliance News) - BHP Group PLC is in a strong position going into 2020, Chief Executive Andrew MacKenzie said at the bluechip Anglo-Australian miner's annual general meeting Thursday.
The outlook for BHP is positive, MacKenzie said, with a strong balance sheet. This comes after a "strong" financial performance in its year ended June 2019, he added, with operating performance "solid".
"We enter the 2020 financial year with a positive outlook for our business. We have a simplified portfolio of world-class assets and a strong balance sheet. Our six major projects are on track and on budget in iron ore, copper, oil and potash (and like our operations, our project management benchmarks are world-class)," the CEO said.
"We have exploration licences in the world's top basins with options for future development that have enjoyed recent competitive discoveries. And finally, a greater focus on the capability of our workforce."
MacKenzie did note global economic growth concerns, however, adding: "While our foundations are strong we remain conscious of the geopolitical landscape. Current trade tensions are weighing on consumer confidence and have the potential to impact demand for our key commodities.
"With our strong balance sheet, low cost operations, and successful capital allocation framework we are confident that we are well positioned to weather any future volatility."
"Longer term our view remains positive. Industrialisation and urbanisation, along with decarbonisation and electrification, will generate demand for energy, metals, and fertilisers for decades to come. We are confident we have the right assets, in the right commodities, to meet this demand," he continued.
Earlier on Thursday, the company reported a "solid" start to financial 2020, though output across a number of commodities fell. BHP did, however, reiterated production guidance for the year.
BHP's shares were 0.2% lower in London on Thursday morning at 1,620.00 pence each. In Johannesburg, they were 1.0% lower at ZAR309.17, and in Sydney they closed down 3.3% at AUD34.86.
By George Collard; [email protected]
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