Australia: BHP's iron ore production falls by 7% q-o-q in Q3CY'24; FY'25 guidance unchanged

• Sales decline q-o-q
  
  
• Production up y-o-y
  
  

BHP Group recently announced its Q3CY'24 (June-September 2024) results, revealing that iron ore production from all its Western Australia mines totalled 71.59 million tonnes (mnt) in this quarter on a 100% basis, down 7% as against 76.77 mnt in Q2CY'24.

Production, on a y-o-y basis, marginally increased by 3% as against 69.45 mnt in Q3CY'23. Meanwhile, in 9MCY'24 (January-September 2024), production edged up by 4% y-o-y to 216.49 mnt as against 208.31 mnt in 9MCY'23.

Iron ore sales up in Q3

The company's total iron ore sales from Pilbara on a 100% basis were recorded at 71.54 mnt in Q3CY'24, a 6% drop compared to 75.9 mnt in Q2CY'24. However, sales remained largely stable as against 71.75 mnt in Q3CY'23. Meanwhile, sales rose 4% y-o-y to 217.2 mnt in 9MCY'24 as against 209.42 mnt in 9MCY'23.

Other highlights

• Production guidance for FY'25 remains unchanged: BHP's FY'25 iron ore production guidance from Western Australia remains unchanged at 250-260 mnt (282-294 mnt on a 100% basis).
  
  
• Contribution of South Flank: Production increased due to robust supply chain performance, with additional capacity unlocked through PDP1. The Central Pilbara hub (South Flank and Mining Area C) contributed higher volumes following the successful ramp-up of South Flank in FY24.
  
  
• Samarco's pellet production increases: Samarco's pellet production rose by 23% q-o-q to 1.3 mnt in Q3CY'24. Production guidance for FY'25 remains at around 5-5.5 mnt (BHP's share).