BHP
on Tuesday reported a 6.3% rise in third-quarter iron ore
production that only narrowly missed analyst estimates, and kept outlook
unchanged for two of its key products despite global economic disruption caused
by the coronavirus outbreak.
Total
iron ore production increased by 3% to 181 million tonnes YTD. Guidance for the
2020 financial year remains unchanged at between 242 and 253 million tonnes.
The
miner’s iron ore output came in at 68 million tonnes for the quarter ended
March 31, up from 64 million tonnes a year earlier. However, it missed a UBS
forecast of 69.2 million tonnes.
Western
Australia Iron Ore (WAIO) achieved record year-to-date production despite
weather impacts from Tropical Cyclone Blake and Tropical Cyclone Damien.
In
Chile, record average concentrator throughput was delivered at Escondida and
record ore was stacked at Spence.
Group
copper equivalent production was broadly unchanged over the nine months ended
March 2020, with volumes for the full year now expected to be in line with last
year. Total production increased by 5% to 1,310 kt.
The
company’s copper guidance remains unchanged, while Antamina guidance is under
review following suspension
of operations due to covid-19.
Guidance
unchanged
Production
guidance for the 2020 financial year remains unchanged for petroleum, iron ore
and metallurgical coal.
“We
have delivered strong performance across the portfolio despite the impacts of
planned maintenance, natural field decline and wet weather in Australia,” BHP
chief executive Mike Henry said.
Energy
coal production guidance is under review with Cerrejón placed on temporary care
and maintenance due to covid-19.
BHP has
so far maintained that most of its operations remain unaffected by the pandemic
despite a “small number” of its 72,000 employees testing positive for covid-19.
“While
demand in China has strengthened in recent weeks, we expect other major
economies, including the US, Europe and India, to contract sharply in the June
2020 quarter. The situation remains fluid, however, with our strong financial position
and low-cost operations,” Henry added.
BHP
is reviewing guidance for 2021 and said it will be lower than the current
guidance of around $8 billion.
Source:
mining.com