BHP Shares Trade Higher As Mining Giant Confirms Record Outputs For Copper, Iron Ore

BHP Group Limited BHP shares are trading higher today after the company reported fiscal year 2024 operational results.

The company reported copper production of 504.9 Kt (+6% Y/Y), led by growth at Escondida (+6% Y/Y), Copper South Australia (+17% Y/Y), and Antamina (+5% Y/Y).

The copper production beat Vuma consensus of 469.2 kt, as per Reuters.

BHP reported iron ore production of 69.2 Mt (+6% Y/Y) and Metallurgical coal production of 4.9 Mt (-42% Y/Y).

The company stated that FY24 production met guidance for all commodities, with metallurgical coal hitting the upper end of revised targets.

The company disclosed record outputs achieved at WAIO, Spence, and Carrapateena, as well as the highest production in four years at Escondida.

In FY24, total copper production increased by 9% and is projected to rise by another 4% in FY25.

BHP disclosed that average realized prices for copper and iron ore increased in FY24, while metallurgical coal prices stayed relatively stable, and nickel and energy coal prices decreased.

The company divested Blackwater and Daunia, started Jansen Stage 2 construction (with Stage 1 over 50% complete), ramped up South Flank to 80 Mtpa, and completed Carrapateena Crusher 2.

Outlook: BHP expects production for copper of 1,845 – 2,045 kt, iron ore of 255 – 265.5 Mt and Metallurgical coal of 16.5 – 19 Mt in FY25.

Mike Henry, CEO, said, “WAIO continued its strong performance, delivering a second consecutive year of record production on the back of ongoing incremental improvements along its supply chain as we progress toward our medium-term goal of increasing production to greater than 305 Mtpa.”

Read: BHP Group Anticipates Uptick In 2024 Carbon Emissions, Remains Committed To 30% Reduction By 2030

“We continued to execute against our strategy, progressing growth options in the commodities the world needs to meet the demands of the energy transition and population growth. This includes our Jansen potash mine in Canada, where construction of Stage 1 is now more than 50% complete and Stage 2 is underway. We will see first production in 2026 and will be a major global producer of potash by the end of the decade.”

This month, BHP stated the temporary suspension of its Nickel West operations and West Musgrave project in Western Australia starting October 2024.

Investors can gain exposure to the stock via Exchange Traded Concepts Trust Optica Rare Earths & Critical Materials ETF CRIT and VanEck Natural Resources ETF HAP.

Price Action: BHP shares are up 0.42% at $57.44 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

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