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Highlights
- BHP shares were trading lower after the release of its first quarter production update.
- BHP has kept its FY23 guidance unchanged.
Shares of BHP Group Limited (ASX:BHP) on Thursday were trading in the red, a day after the company released its first quarter production update. The Australian mining and exploration company on Wednesday had announced a sequential drop in copper production, while iron ore production rose in the quarter ending 30 September 2022. However, BHP’s management has reaffirmed all production and cost guidance for FY2023 in its quarterly activities report released on ASX on 19 October 2022
Meanwhile, BHP’s shares were trading 1.732% lower at AU$38.570 at 10:54 AM AEDT today (20 October 2022). On Wednesday, BHP’s shares closed at AU$39.25.
On a year-to-date (YTD) basis, BHP’s share price has fallen over 9%. The share price is down over 26% in the past year.
How did BHP perform?
BHP reported copper production of 410.1kt in the three months ending 30 September 2022. The production was down 11% from the June quarter. The guidance for the financial year 2023 remained unchanged between 1,635 kt and 1,825 kt
BHP’s iron ore production for the given quarter was 1% higher at 65.1Mt. The guidance for the financial year 2023 remained unchanged between 249 Mt and 260 Mt.
Talking about BHP’s coal assets, the company said that it managed to overcome adverse weather conditions along with labour constraint to keep the production numbers only marginally lower on an annual basis.
According to the company, Western Australia Iron Ore’s (WAIO) strong operational performance was partially offset by planned car dumper maintenance in the September quarter.
Additionally, BHP announced a partnership with Pan Pacific Copper to reduce GHG emissions from maritime transportation, signed an MoU with India's Tata Steel to collaborate on lower GHG emission steelmaking, and reached a new agreement to supply WAIO port facilities with renewable electricity, which is expected to halve GHG emissions from the electricity used. These actions are part of BHP’s ongoing efforts to reduce GHG emissions while supporting the decarbonisation of its economy.
In a statement, Mike Henry, CEO, BHP, said:
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Data Source- Company announcement dated 19 October 2022
