BHP (ASX:BHP) shares slip on soft quarterly production

• BHP (BHP) posts soft WA iron ore and copper production for the March quarter, down 11 per cent and 4 per cent, respectively, compared to the December quarter
• Year-to-date iron ore production from WA remains at a record high, albeit only marginally higher than the prior corresponding period
• BHP is banking on China’s economic rebound to fuel commodity demand, though it’s reduced its production guidance for its Escondida and Nickel West operations
• Still, CEO Mike Henry says recent engagements with customers in China and India have reaffirmed the company’s “positive outlook” for commodity demand
• Company shares are down 2.4 per cent, trading at $44.96 at 1:45 pm AEST

BHP (BHP) has posted soft WA iron ore and copper production for the March quarter, down 11 per cent and 4 per cent, respectively, compared to the December quarter.

The mining giant produced 59.8 million tonnes of iron ore from its WA division over the March quarter — down 11 per cent on the quarter before.

However, year-to-date production for the 2023 financial year remains at a record high, up one per cent compared to the same time period the year before.

For the nine months to March 31, BHP’s WA iron ore division produced 59.8 million tonnes of the steel-making material.

Iron ore production for the full year remains on track for BHP’s guidance of between 249 to 260 million tonnes.

Similarly, quarterly copper output for the period was down 4 per cent on the December quarter but up 12 per cent year-to-date.

While the company is banking on China’s economic rebound to fuel commodity demand, BHP CEO Mike Henry said the company was pursuing growth options in both copper and nickel globally and had eyes on a new copper prospect in Arizona.

“Recent engagements with customers in China and India have reaffirmed our positive outlook for commodity demand, with China’s economic rebound and solid momentum in India’s steelmaking growth helping to offset the impact of slowing growth in the US, Japan and Europe,” Mr Henry said.

The company acknowledged the death of Jody Byrne at its Port Hedland operations in a rail incident in February. Mr Henry said the company was deeply saddened by the incident but maintained that safety was paramount. He said an investigation into Mr Byrne’s death was underway and the findings would be shared widely.

BHP shares were down 2.4 per cent, trading at $44.96 at 1:45 pm AEST.