Australia: BHP's iron ore production rises marginally y-o-y in Q1CY'24; guidance unchanged

BHP Group announced its Q1CY'24 (January-March 2024) results recently. Iron ore production for the quarter from its Western Australia mines was recorded at 68.13 million tonnes (mnt) on 100% basis, up 3% y-o-y as against 66.16 mnt in Q1CY'23. The above-mentioned figures relate to production from all its mines.

There was an increase in output despite heavy rainfall and improvement in rail and port operations.

On a quarterly basis, BHP's output fell by 7% compared to 65.8 mnt in Q4CY'23.

Iron ore sales up in Q1

The company's total iron ore sales from Pilbara on 100% basis were recorded at 69.775 mnt in Q1CY'24, up y-o-y by 5% as compared to 66.58 mnt in Q1CY'23. On a quarterly basis, sales remained largely stable as against 70.34 mnt in Q4CY'23.

Other highlights

• Production guidance for FY'24 remains unchanged: BHP's FY'24 iron ore production guidance from Western Australia remains unchanged at 250 and 260 mnt (282 and 294 mnt on a 100% basis).
  
  
• South Flank to reach full capacity in 3 years: The South Flank ramp-up to full production capacity of 80 mntpa (on a 100% basis) is proceeding as planned. The commissioning of the Port Debottlenecking Project (PDP1) took place in December 2023 with progress continuing as planned for completion in CY24.
  
  
• Samarco pellet production guidance unchanged: Samarco's pellet production so far has reached 1.17 mnt (BHP's share) increased by 13% y-o-y as compare to 1.04 mnt in Q1CY'23. Production guidance for the 2024 financial year remains unchanged at around 4-4.5 mnt (BHP's share).