BHP Group announced on Wednesday a second consecutive year of record annual iron ore production, aided by better weather conditions and increased output from its South Flank operations in Western Australia. The world's largest listed mining company exceeded analyst forecasts for both its quarterly iron ore and copper production in its latest report. BHP has steadily improved its Western Australian iron ore operations through a debottlenecking project, while also reaping benefits from increased throughput at its Escondida mine in Chile.
This positive performance follows BHP's recent decision to suspend its Western Australia nickel operations starting October, due to a sharp decline in metal prices and global oversupply. For the fiscal year ending June 30, BHP produced 287.0 million metric tons (Mt) of iron ore. It anticipates production between 282 Mt and 294 Mt for fiscal 2025, aiming towards a medium-term target beyond 305 Mt.
BHP concluded fiscal 2024 with a robust June-quarter production performance, surpassing Citi's expectations across all key divisions. Its South Flank operations reached 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, exceeding a Visible Alpha consensus estimate of 75.4 Mt compiled by Macquarie. The company had previously recorded 72.7 Mt of Western Australia iron ore output last year.
Copper production increased by 6% during the quarter to 504.9 kilo tons (kt), supported by higher concentrator grade and throughput at Escondida, surpassing a Vuma consensus of 469.2 kt. In late May, BHP abandoned a $49 billion takeover bid for rival Anglo American, originally intended to secure Anglo's valuable copper assets in Latin America and enhance BHP's copper access. Energy coal output declined partly due to adverse weather and advanced maintenance, while metallurgical coal production dropped 18% following the sale of its Blackwater and Daunia mines in Queensland to Whitehaven Coal.
Shares of the mining giant slipped 0.1% to A$43.02 per share at 0051 GMT, amidst a mixed market for iron ore producers. BHP is scheduled to report its full-year results on August 27.
