On July 17th, As soon as the report, ‘BHP Operational Review for the Year Ended 30 June 2024,’ was published on the company website, it made headlines. The BHP news highlighted the new record set by the BHP Group for the second consecutive year in iron ore production. The company surpassed all analysts’ expectations not only for iron production but also for copper production. “We finished the year with a strong fourth quarter, achieving several production records, and we are meeting current production and unit cost guidance for all commodities,” Mr Mike Henry, the CEO of BHP Group, mentioned.
About the BHP Group
BHP is a world-leading resources company, operating in over 90 locations and selling products globally. Since 1851, BHP has been a key player in industry development, community support, and global economies. With over 80,000 employees and contractors, BHP focuses on essential resources: iron ore, copper, nickel, and potash. In FY2023, BHP’s economic contribution was an impressive USD 54.2 billion. The BHP news on Tuesday marked significant progress in the company’s portfolio.
Figure 1: Logo of BHP Group
Details of the BHP News: Iron and Copper Production
Iron Production
- BHP Group’s iron ore production reached a record 260 million tonne (Mt) in FY24, a 1% increase from the previous year.
- WAIO (Western Australia Iron Ore) achieved a full-year production record of 255 Mt, reflecting robust supply chain performance, increased capacity from Port Debottlenecking Project 1 (PDP1), and record production at South Flank.
- The successful ramp-up to full production capacity of 80 million tonnes per annum (Mtpa) at South Flank significantly contributed to this achievement. Despite ongoing tie-in activities for the Rail Technology Programme 1 (RTP1), WAIO’s production remained strong.
- For FY25, BHP expects iron ore production to be between 255 and 5 Mt, with continued contributions from PDP1 and planned tie-in activities for RTP1.
Copper Production
- BHP’s total copper production increased by 9% to 1,865 kt (thousand tonnes) in FY24.
- Escondida’s production rose by 7% to 1,125 kt due to higher concentrator feed grades.
- Pampa Norte saw an 8% decrease, with Spence achieving a record 255 kt despite lower cathode production.
- Cerro Colorado entered temporary care and maintenance after producing 11 kt.
- Copper South Australia’s production surged by 39% to 322 kt, driven by the successful integration of OZL and operational improvements.
- Antamina’s copper production increased by 4% to 144 kt.
- For FY25, BHP projects copper production to be between 1,845 and 2,045 kt.
Figure 2: Production of different minerals and performance of BHP in FY24 as compared to FY23
Recent BHP News
The company’s CEO, Mr Mike Henry, mentioned some recent activities: “We successfully completed the sale of the Blackwater and Daunia metallurgical coal operations on 2 April 2024. After a challenging year at BMA, we have plans in place to increase production to between 43 and 45 Mtpa (100%) in the next five years.”
Other than that, there have been some noteworthy BHP news stories lately. On July 11th, BHP announced the temporary suspension of Nickel West operations and the West Musgrave project from October 2024 due to global nickel market oversupply. The decision will be reviewed by February 2027, following a sharp decline in forward consensus nickel prices due to increased low-cost supply. Also, in late May, BHP abandoned a USD 49 billion bid to acquire Anglo American (AAL.L). This proposal aimed to secure Anglo’s valuable copper assets in Latin America and enhance BHP’s copper access.
Investor’s Outlook
On July 18th, 2024, BHP Group’s share price was AUD 42.58, and its market capitalisation was AUD 215.95 billion. The company had over 5 billion shares on the issue. This recent BHP news highlights the company’s record-breaking production, exceeding expectations in iron and copper output, which suggests strong financial health and promising future performance.
