BHP cuts iron ore forecasts after Australia cyclone
BHP Group Limited NPV (DI)
2,135.00p
17:15 08/11/24
BHP cut iron ore output forecasts on Wednesday, reflecting the impact of tropical cyclone Veronica in Western Australia, which also hit production at sector peer Rio Tinto.
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The world's biggest miner cut its forecast to 265m - 270m tonnes, from 273m – 283m tonnes. Iron ore output for the three months to end-March fell 5% to 64m tonnes.
Full-year production costs were increased to less than $15 a tonne, from previous guidance of less than $14 a tonne, due to lower volumes and increased remediation costs.
BHP reported an 8% fall in copper production quarter on quarter to 420,000 tonnes, mainly due to lower output at the Escondida mine in Chile.
However, annual copper production guidance was maintained at 1.65m – 1.74m tonnes.
Rio Tinto on Tuesday reported a 14% fall in quarterly iron ore shipments and cut its 2019 shipments estimate due to the cyclone and a fire at its Port Kembla port facility.