BHP said it was on track to meet full-year production guidance across all its commodities after a strong operational performance in the first nine months.
Full-year copper production, in particular, is now expected to be in the upper half of its guided range thanks to higher output and lower costs at Escondida, the group’s flagship Chilean mine.
With copper prices trading at record highs, spurred by data centre demand and tariff uncertainty, the group is on track to report bumper profits in the coming months.
Against this backdrop, all eyes will be on incoming CEO Brandon Craig when he takes the helm on July 1, opening the door for a new growth strategy.
Despite a favourable price environment, Craig, a 26-year veteran of the company, faces the challenge of navigating the fallout from the Iran war and its impact on global growth, which remains a looming threat to base metal demand.
In its latest update for the nine months to end-March, current CEO Mike Henry said the company’s “centralised procurement capability and low-cost operations” would set it apart in an industry increasingly threatened by Middle East tensions.
These features have “positioned us advantageously in the face of industry-wide pressure on the cost of energy and consumables as a result of the conflict in the Middle East”, he said.
Still, the group said it “continues to actively manage the impacts of higher diesel and consumables costs, as well as movements in foreign exchange rates”.
Copper production edged down 3% year on year in the nine months to end-March, due to lower feed grades at Escondida, but full-year guidance remains unchanged at 1.9-million tonnes to 2-million tonnes.
Iron ore output was up 2% during the first three quarters thanks to steady growth at the group’s Western Australian operations. Full-year guidance was held at 258-million tonnes to 269-million tonnes.
Recent dealmaking has also given the group’s balance sheet a $4.8bn boost. It completed its silver streaming transaction for the Peruvian Antamina mine and concluded the $465m sale of its Carajas mine in Brazil.
Business Day
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