BHP -1.8%: The Big Australian was out with 2Q production numbers today with the high notes coming broadly in line with expectations. Iron ore output was up marginally on 1Q24, but down -2% on pcp. Copper was the reverse, down -4% on 1Q but up +3% on 2Q23. Elsewhere, nickel and energy coal production was in line with expectations but met coal struggled which also weighed on costs. Guidance was left unchanged for all except for energy coal which was lowered by ~20%. For the most part there will be few changes to expectations on the back of today ‘s update. BHP has been weak in recent sessions as steel mills in China seem oversupplied and demand faces some headwinds.
- For now, BHP looks well placed though and remains our preferred large resource company pick.
MM remains long and bullish BHP
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