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Highlights:
- The Australian benchmark index S&P/ASX200 was declining by 0.29% and trading at 7,340.60 points on Friday, 21 April 2023, at 12:06 pm AEST.
- For this fiscal year, BHP Group Limited (ASX:BHP) production guidance continues to be the same for iron ore, metallurgical coal, and energy coal.
- Whitehaven Coal Limited (ASX:WHC) ROM production of 4.3Mt in the March quarter decreased by 12% compared to the December quarter.
The Australian benchmark index S&P/ASX200 was declining by 0.40% and trading at 7,340.60 points on Friday, 21 April 2023, at 12:06 pm AEST. Simultaneously, there were two ASX200 stocks- BHP Group Limited (ASX:BHP), which was trading down by 1.975%, whereas, Whitehaven Coal Limited (ASX:WHC), was trading up by 2.869% after they released their respective March quarter reports.
Let’s find out more about the 2 ASX200 bluechip stocks- BHP and WHC March quarter report.
BHP Group Limited (ASX: BHP)
The metals and mining company was trading down by 1.975% at AU$45.150 on Friday, at 12:06 pm AEST, after it released its March quarter report.
During the quarter period, BHP’s copper production was 405.9 kt, decreasing 4% from the December quarter of 2022. Iron ore production during the period was 59.8 Mt, down 11% from December quarter last year. Whereas metallurgical coal production was 6.9 Mt and energy coal were 3.9 Mt, growing 38% over the December quarter. Nickel production of 19.6, which is an 11% rise over the December quarter.
For this fiscal year, production guidance continues to be the same for iron ore, metallurgical coal and energy coal. The Olympic Dam and Pampa Norte are anticipated to move towards the upper end of their guidance ranges. However, BHP Mitsubishi (BMA) is likely to be at the bottom of the guidance range.
Production guidance at Escondida has been reduced to fall in the range of 1050 to 1080, which was earlier expected to be between 1080 to 1,180 kt. On the back of a robust performance at the other copper assets, FY23 total copper production guidance stays the same between 1,635 to 1,825 kt. On the contrary, FY23 nickel production has decreased to 75 and 85 kt, which was earlier anticipated to be between 80 and 90 kt.
Further, FY23 unit cost guidance stays the same from the half-year period ended December last year. Also, Escondida and Western Australia Iron Ore are projected to be at the top of their respective guidance ranges.
Further, the company has recognised a new copper porphyry mineralised system, the Miami-Globe district based in Arizona, namely, Ocelot.
Whitehaven Coal Limited (ASX: WHC)
The coal miner and explorer was trading up by 2.869% at AU$7.170 on Friday at 12:06 pm AEST post it released its March 2023 quarter report.
During the reported period, managed run-of-mine (ROM) production of 4.3Mt, decreasing 12% compared to the December quarter. The company’s average coal price of AU$400 per tonne has reduced from AU$527 per tonne in the December quarter. The total equity sales of produced coal were 3.4Mt, down by 2% QoQ. During the quarter period, the company generated cash from operations of around AU$1.2 billion. As of 31 March, this year, WHC held a net cash position of AU$2.7 billion.
Given the robust December quarter, Narrabri ROM coal production of 1.2Mt during the quarter decreased by 39%. Saleable coal production of 1.0Mt during the March quarter decreased by 43%, consistent with lesser ROM production. In the March quarter, Maules Creek ROM coal production of 2.3Mt, increased 9% QoQ in spite of wet weather and flooding events in the previous quarter. However, in the reported quarter, saleable coal production was 1.7Mt.
On the FY23 guidance front, WHC expects managed coal sales to fall between 15.3 to 16 million tonnes. The equity coal sales are anticipated to fall between 12.3Mt to 12.9Mt, and the unit cost of coal is likely to fall in the range of AU$100 a tonne-AU$107 a tonne. Also, WHC’s board have consented to the beginning of the initial mining of the Vickery coal deposit.
