BHP on Tuesday reported a 6.3% rise in third-quarter iron ore production that only narrowly missed analyst estimates, and kept outlook unchanged for two of its key products despite global economic disruption caused by the coronavirus outbreak.
Total iron ore production increased by 3% to 181 million tonnes YTD. Guidance for the 2020 financial year remains unchanged at between 242 and 253 million tonnes.
Production guidance for the 2020 financial year remains unchanged for petroleum, iron ore and metallurgical coal
The miner’s iron ore output came in at 68 million tonnes for the quarter ended March 31, up from 64 million tonnes a year earlier. However, it missed a UBS forecast of 69.2 million tonnes.
Western Australia Iron Ore (WAIO) achieved record year-to-date production despite weather impacts from Tropical Cyclone Blake and Tropical Cyclone Damien.
In Chile, record average concentrator throughput was delivered at Escondida and record ore was stacked at Spence.
Group copper equivalent production was broadly unchanged over the nine months ended March 2020, with volumes for the full year now expected to be in line with last year. Total production increased by 5% to 1,310 kt.
The company’s copper guidance remains unchanged, while Antamina guidance is under review following suspension of operations due to covid-19.
Production guidance
Production guidance for the 2020 financial year remains unchanged for petroleum, iron ore and metallurgical coal.
“We have delivered strong performance across the portfolio despite the impacts of planned maintenance, natural field decline and wet weather in Australia,” BHP chief executive Mike Henry said.
Energy coal production guidance is under review with Cerrejón placed on temporary care and maintenance due to covid-19.
BHP has so far maintained that most of its operations remain unaffected by the pandemic despite a “small number” of its 72,000 employees testing positive for covid-19.
“While demand in China has strengthened in recent weeks, we expect other major economies, including the US, Europe and India, to contract sharply in the June 2020 quarter. The situation remains fluid, however, with our strong financial position and low-cost operations,” Henry added.
BHP is reviewing guidance for 2021 and said it will be lower than the current guidance of around $8 billion.
(With files from Reuters)