BHP shares fall following quarterly update
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More news: Shares in mining giant BHP were down around 2% to $45.62 in early trading on Thursday following the release of its second quarter update, which reported production boosts in the company's iron ore and copper operations but some struggles amid cuts to nickel prices.
BHP hit by nickel price cuts, reports production gains
The news: BHP reported a "solid" first half in its latest operations update, with iron ore and copper production up, while the company eyes options to mitigate the impact of the sharp fall in nickel prices.
The numbers: The mining giant said its WA iron ore production was up 5% quarter on quarter, with first-half copper production up 7%. The company's NSW energy coal division experienced its best first half in five years, while its BHP Mitsubishi Alliance (BMA) had a "tough" six months, with metallurgical coal production guidance lowered to between 23 and 25 million tonnes.
The context: In its December quarterly production report, BHP flagged that operations at Nickel West are being "actively optimised" to mitigate the impacts of the falling nickel price that have affected the wider sector. BMA's lowered guidance was attributed to a significant increase in planned maintenance, as well as a depleted inventory following recent weather impacts and labour constraints.
The source: ASX announcement
