BHP Reports Record Iron Ore Production in FY24, Copper Up 9%

Core Insights - BHP's copper output reached a 15-year high in fiscal 2024, increasing by 9% year over year to 1,865 kt, with fourth-quarter output improving by 6% to 504.9 kt [1] - The company met its production targets for copper and nickel, with metallurgical coal production near the higher end of its guidance range and energy coal outperforming expectations [2] - BHP's iron ore production rose 6% year over year to 69.2 Mt in the fourth quarter, contributing to a total of 260 Mt for fiscal 2024, which is a record [14] Copper Production - Copper output at Pampa Norte decreased by 8%, while Spence achieved record output of 255 kt due to improved concentrator throughput [4] - Escondida's copper production increased by 7% year over year, although there was a planned reduction in cathode production [16] - Production from Copper South Australia surged by 39% to 322 kt, and Antamina's copper production rose by 4% to 143.9 kt [17] Nickel Production - Nickel production increased by 5% year over year to 23 kt in the fourth quarter and by 2% to 81.6 kt in fiscal 2024, with guidance set between 77 kt and 87 kt [5] Coal Production - Energy coal production rose by 8% year over year to 15.4 Mt, exceeding the guidance range of 13-15 Mt [6] - Metallurgical coal production fell by 42% year over year to 4.9 Mt in the fourth quarter, with total production for fiscal 2024 at 22.3 Mt, down 23% from fiscal 2023 [18][19] Price Performance - Average realized prices for copper increased by 19% sequentially to $4.85 per pound, while nickel prices rose by 11% to $18,414 per ton [7] - Iron ore prices decreased by 14% sequentially to $91.31 per ton, and thermal coal prices increased by 6% to $123.38 per ton [7] Future Guidance - BHP's iron ore production guidance for fiscal 2025 is set between 255-265.5 Mt, with WAIO's production expected to be between 250 Mt and 260 Mt [8] - The company anticipates copper production in the range of 1,845-2,045 kt for fiscal 2024, with metallurgical coal guidance between 16.5-19 Mt and energy coal between 13-15 Mt [21] Other Updates - BHP commenced construction of Jansen Stage 2 during fiscal 2024, with Jansen Stage 1 over 50% completed [9] - The company announced the divestment of the Blackwater and Daunia mines to Whitehaven Coal, part of its strategy to optimize its metallurgical coal operations [22]