BHP hits full year production forecasts
Stock
BHP Group (BHP) $41.71 as at 17/07/2019
Event
Following on from Rio Tinto’s quarterly from yesterday, BHP has posted their 4th quarter production report to the delight of shareholders. BHP is well outpacing the two other big iron ore names in today’s market, adding 1.4% as of early in the afternoon.
BHP has met guidance across the board for FY19 and didn’t throw any curve balls to the market in terms of FY20 forecasts. Here’s the commodity deck from BHP:
On the costs side of things, BHP broadly hit expectations with the slight exception of the their NSW Thermal Coal which was raised on some production issues. The report also noted a number of one-off costs will be absorbed in the full year result due out next month. These mostly stem from redundancy payments and the Samarco rehabilitation. Despite this, BHP are poised to report a stellar profit at the result given the tailwind of significantly higher iron ore price in the back half of the year.
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