BHP shares up on strong quarterly results
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More news: Shares in BHP rose nearly 2% to $45.30 in early trading on the ASX after the resources giant lifted quarterly output for most of its commodities and was on track to achieve full-year production guidance.
The stock was also supported by iron ore futures rising to six-week highs.
What they said: However, RBC Capital Markets analysts found BHP's results to be "mixed".
"While 3Q production numbers were higher than consensus and RBC estimates on copper (and iron ore vs RBC estimates), there has been another notable reduction in CY24 met coal production guidance (two quarter's in a row) and higher unit-costs guidance," the analysts said.
"This will likely weigh on the stock today, resulting in FY24 consensus earnings per share/free cash flow reductions. On the positive side, copper volumes beat with Spence [Chile copper mine] reporting strong throughout and recovery."
BHP lifts quarterly output, on track for FY guidance
The news: Large resources company BHP has kept its full-year production guidance unchanged after lifting output for most of its commodities despite some operations being impacted by weather.
The numbers: March quarter iron ore output from the Pilbara operations was up 3% to 60.3 million tonnes, leaving it on track to produce between 250 million and 260 million tonnes for the year to June 2024.
Year-to-date copper production was up 10% to 1.36 million tonnes, with the full-year target unchanged at 1.72 million to 1.91 million tonnes.
The context: The company said operations were affected by heavy rainfall in Western Australia and in Queensland. However, BHP remained on track to meet copper, iron ore and energy coal production for the year, CEO Mike Henry said.
Meanwhile, the mining giant will make a decision on its ailing WA nickel operations by August, as it continues to decide on whether it will put the struggling Nickel West division into care and maintenance.
BHP had slashed the value of Nickel West in its half-year accounts, in the face of the sliding global prices.
The source: ASX announcement
