BHP second quarter production light on iron ore
BHP Group (BHP) -0.1%: traded lower today but didn’t greatly under perform peers or the market by any means after posting their 2nd quarter production report. The four main segments for BHP are tracking in line with expectations, and guidance was maintained as is as a result, although petroleum production has been talked to the lower end of the guidance range. Iron ore was production was down quarter on quarter, but only marginally so, with BHP finishing up some maintenance projects it’s now set to storm home in the second half.
Copper production grew 9% on 2o19 as their Escondida mine ramped up – although realised grade was lower than previous quarters. Coal production was mixed with metallurgical coal showing strong growth while thermal coal fell year on year. Costs were all in line with expectations. As BHP head into the second half of the year, we doubt there will be too many changes to analyst models after today’s report, although if the iron ore price remains elevated, upgrades will be forced in.
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