On Wednesday BHP Group reported record annual iron ore production for a second consecutive year, helped by improved weather conditions and higher contribution from its South Flank operations in Western Australia. BHP, the world’s largest listed miner beat analyst expectations for both its quarterly iron ore and copper production in its production report.
BHP iron ore production increase
BHP has given consistent gains from a project to debottleneck its Western Australian iron ore operations, while also benefiting from higher throughput at its Escondida mine in Chile.
The upbeat performance comes after BHP said last week it was suspending its Western Australia nickel operations from October. According to the company, plunge in the metal’s prices and an oversupply in the global market is the reason.
BHP quarterly results
For the full year ended June 30, BHP produced 287.0 million metric tons (Mt) of iron ore. It expects to produce between 282 Mt and 294 Mt for fiscal 2025, as it progresses towards its medium-term target beyond 305 Mt.
BHP finished fiscal 2024 with a strong results for production performance, beating Citi’s quarterly production expectations across all key divisions, the brokerage said.
BHP’s output
BHP’s South Flank operations ramped up to full operational capacity of 80 Mt during the quarter.
Iron ore output from Western Australia on a 100% basis was 76.8 Mt in the three months to June 30, beating a Visible Alpha consensus estimate of 75.4 Mt compiled by Macquarie.
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BHP’s rise in copper production
The global miner had recorded Western Australia iron ore output of 72.7 Mt last year.
Copper production during the quarter increased 6%, compared with the prior year to 504.9 kilo tons (kt), helped by higher concentrator grade and throughput at Escondida, BHP said. That beat a Vuma consensus of 469.2 kt.
In late May, BHP walked away from a $49 billion takeover offer for rival Anglo American, a plan which was at the time aimed at securing Anglo’s prized copper assets in Latin America and increase BHP’s access to copper.
BHP’s energy coal output
Energy coal output fell partly due to unfavorable weather and maintenance works brought forward while metallurgical coal production fell 18% during the quarter following the divestment of its Blackwater and Daunia mines in Queensland to Whitehaven Coal
BHP share price
Share price of BHP fell 0.1% to A$43.02 per share at 0051 GMT, in a mixed market for iron ore producers. BHP share price is down 5% over the last 12 months. BHP is expected to report its full-year results on Aug. 27.
