BHP posts mixed quarter, on track for FY guidance

The news: Resources giant BHP has kept its full-year production guidance unchanged despite a mixed quarterly performance that saw it lift copper production but post a drop in iron ore output.

The numbers: September quarter iron ore output from the Pilbara operations was down 3% from a year ago at 63.2 million tonnes, but it still expects to produce between 282 and 294 million tonnes for the year to June 2024. Year-to-date copper production increased 11% to 457,000 tonnes, with the full-year target unchanged at 1.72-1.91 million tonnes.

The context: Demand for iron ore has remained resilient this year, even in the face of weaker economic growth in key market China. BHP’s metallurgical coal production was down 16% and the group has agreed to sell its Daunia and Blackwater mines in Queensland to Whitehaven. "After completing a typically busy quarter of planned maintenance particularly at our Australian assets, we are on track to achieve full year production and unit cost guidance,” the miner said.