- Australia’s largest mining company BHP (BHP) delivers a “strong performance” for the quarter, however, warns of a “volatile” FY23
- Over the fourth quarter, the mining giant produced 71.7 million tonnes for a full year output of 282.8 million tonnes, just missing analysts’ expectations but remaining in the annual guidance of 278-290 million tonnes
- Despite a record breaking iron ore shipments for the full year, BHP CEO Mike Henry has warned of significant challenges ahead for the group from “broader market volatility”
- In good news, the company is running ahead of schedule to ramp-up its new South Flank iron ore mine in the Pilbara
- Shares in BHP are up 0.35 per cent on the market to trade at $37.10 at 12:15 pm AEST
BHP (BHP) has delivered a “strong performance” for the quarter, however, warns of a “volatile” FY23.
Over the fourth quarter, the mining giant produced 71.7 million tonnes for a full year output of 282.8 million tonnes.
The figures missed analysts’ expectations of 73 million tonnes, however, it did remain in the annual guidance of 278-290 million tonnes.
Its WA iron ore production saw a record full-year sales due to reliable operational performance, with the stand-out from Mining Area C.
However, despite a record breaking iron ore shipments for the full year, BHP CEO Mike Henry has warned of significant challenges ahead for the group from “broader market volatility”.
“Broader market volatility continues and we expect the lag effect of inflationary pressures to continue through the 2023 financial year, along with labour market tightness and supply chain constraints,” Mr Henry said.
“Over the year ahead, China is expected to contribute positively to growth as stimulus policies take effect, however, the continuing conflict in the Ukraine, the unfolding energy crisis in Europe and policy tightening globally is expected to result in an overall slowing
of global growth.
“Our strong focus on safety, operational reliability, cost control and social value will help us navigate these challenges and continue to deliver for all of our stakeholders.”
For FY23, BHP is expecting to sell between 278 and 290 million tonnes of iron ore.
In good news, the company is running ahead of schedule to ramp-up its new South Flank iron ore mine in the Pilbara.
South Flank is averaging a rate of 67 million tonnes per annum in the June quarter, contributing to record production from the Mining Area C hub and record lump sales.
Mr Henry also commented on the Queensland Government’s decision to lift coal royalties, where BHP is currently assessing the impacts on economic reserves and mine lives at its BMA business in the state.
“The near tripling of top end royalties has worsened what was already one of the world’s highest coal royalty regimes, threatening investment and jobs in the state,” he said
Queensland metallurgical coal delivered strong underlying performance for the quarter despite significant wet weather, according to the company.
At Nickel West, full-year nickel production was lower than the revised guidance because of a smelter outage in the June quarter with annual production down 14 per cent to 76,800 tonnes.
Shares in BHP were up 0.35 per cent on the market to trade at $37.10 at 12:15 pm AEST.