BHP Group Ltd on Wednesday said its annual production performance for its 2024 financial year met its prior guidance, while it also noted rising prices for copper and iron ore, which offset weaker nickel and energy coal prices.
The Melbourne, Australia-based resource miner indicated that it ended the year with a ‘strong’ fourth quarter, setting ‘several’ production records.
Copper output rose 8.8% to 1.86 million tonnes for the financial year that ended June 30 from 1.71 million tonnes the year before.
Increased production was primarily due to a higher concentrator feed grade, as mining progressed into areas of higher-grade ore.
At the Spence operations in Pampa Norte, Chile, production increased 6% to a record 255,000 tonnes, BHP said.
For the fourth quarter, copper output was up 8.4% to 505,000 tonnes from 466,000 tonnes in the third quarter.
In the recent year, the average price of copper improved 9.0% to $3.98 per pound from $3.65 per pound in 2023.
Annual iron ore production was 1.2% higher at 260 million tonnes, compared to 257 million tonnes, getting a boost from Western Australia Iron Ore, or WAIO, in Australia.
Full-year production at WAIO delivered another record on the back of strong supply chain performance, BHP said, with increased capacity unlocked by the Port Debottlenecking Project 1 and record production at South Flank.
Iron ore output for the fourth quarter rose 13% to 69 million tonnes from 61 million tonnes.
Average iron ore price jumped 9.2% to $101.04 per wet metric tonnes from $92.54 per wet metric tonnes.
But metallurgical coal production from BHP Mitsubishi Alliance or BMA - its coal joint venture with Mitsubishi Development in Queensland - fell 23% to 22.3 million tonnes from 29.0 million tonnes as a result of supply chain challenges, bad weather and labour constraints, and the divestment of Blackwater and Daunia mines in April.
Metallurgical coal production was 4.9 million tonnes in the fourth quarter, down 18% from 6.0 million tonnes in the third.
But full-year energy coal production was up 8% to 15.4 million tonnes from 14.2 million tonnes in financial 2023, while fourth-quarter output declined 10% to 3.8 million tonnes from 4.1 million tonnes in the third quarter.
The average annual energy coal price plunged 49% to $121.52 per tonne from $236.51 per tonne.
Nickel production for all of financial 2024 rose to 81,600 tonnes from 80,000 tonnes, and output for the fourth quarter rose 22% to 23,000 tonnes from 19,000 tonnes in the third.
The nickel price on average in the year slumped 24% to $18,197 per tonne from $24,021 per tonne.
‘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,’ Chief Executive Office Mike Henry said.
Copper production for 2025 is expected to be between 1.84 million and 2.04 million tonnes.
Iron ore production guidance is between 255 million and 265.5 million tonnes.
Metallurgical coal production is guided between 16.5 million and 19.0 million tonnes, reflecting the divestment of the Blackwater and Daunia mines, BHP said.
BHP shares were up 0.1% to 2,193.99 pence early Wednesday in London. They were up 0.4% to R 515.70 in Johannesburg.
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