REG - BHP Group Limited - Quarterly Activities Report
17/04/2025 07:00
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RNS Number : 3717F BHP Group Limited 17 April 2025
17 April 2025
BHP
Operational review for the nine months ended 31 March 2025
Record iron ore and copper production demonstrating resilience of business
"BHP's performance in FY25 to date demonstrates the resilience of our
business, with our copper and iron ore operations achieving record nine-month
production amid challenging operating and market conditions. Group copper
production rose 10%, underpinned by a 20% increase in output at Escondida and
strong performances at Spence and Copper SA. In our WA iron ore operations, we
continue to demonstrate supply chain excellence from pit to port, and
delivered record tonnes from the Central Pilbara hub. At BMA in Queensland, in
the highest rainfall wet season in more than a decade, steelmaking coal
volumes rose by 5% following a strong performance across the open cut mines.
BHP recently achieved 40% female representation across our global employee
base, a 23 point increase since 2016. The efforts that have underpinned this
have made BHP a safer, more productive, and better performing business. We
have a distinctive competitive advantage in responding to labour and skills
shortages across our sector.
Despite the limited direct impact of tariffs on BHP, the implication of slower
economic growth and a fragmented trading environment could be more
significant. China's ability to shift toward a consumption-led economy and for
trade flows to adapt to the new environment will be key to sustaining the
global outlook.
In the face of global volatility and policy uncertainty, BHP is poised to
benefit from a flight to quality with tier one assets, industry-leading
margins and high-return organic growth opportunities that will underpin value
and returns through the cycle."
Mike Henry
BHP Chief Executive Officer
Summary
Operational excellence Guidance
Record iron ore and copper production Production on track; Escondida MT updated
BHP delivered record nine-month group copper production of 1.5 million We are on track to deliver production in the upper half of the FY25 guidance
tonnes, driven by a 20% increase at Escondida and strong underlying ranges at Escondida, Pampa Norte and NSWEC, with Samarco expected at the upper
performances across all other operated copper assets. end. FY25 production guidance ranges at all assets remain unchanged, with BMA
now no longer guided to the upper half due to wet weather. We also remain on
We also delivered record nine-month iron ore production, with WAIO track to deliver FY25 unit cost guidance across all assets, except BMA where
demonstrating its resilience to offset the impact of Tropical Cyclone Zelia we expect unit costs to be higher due to weather and geotechnical challenges
and Tropical Storm Sean, and as Samarco continues to ramp up. at Broadmeadow.
We have optimised the growth program schedule at Escondida, including
extending the expected life of the Los Colorados concentrator beyond FY29.
This and other operational measures add ~400 kt of incremental production and
extend medium term guidance of 900 - 1,000 ktpa to FY31.
Growth Social value
Growing in copper and potash Progress on decarbonisation
We are executing on our growth program with Jansen Stages 1 and 2 now 66% and We are on track to achieve our target of reducing operational greenhouse gas
8% complete (respectively), the formation of the Vicuña joint venture, and emissions by at least 30% by FY30(i). The pace of development of some
the submission of the DIA permit relating to the Laguna Seca concentrator decarbonisation technology has slowed, particularly relating to the
expansion at Escondida. displacement of diesel used for materials movement. We continue to work with
our Original Equipment Manufacturer partners to advance zero emission
technology and we are progressing certain site trials.
Production Quarter performance YTD performance FY25 production guidance
Q3 FY25 v Q2 FY25 v Q3 FY24 YTD Mar FY25 v YTD Mar FY24 Previous Current
Copper (kt) 513.2 0% 10% 1,500.2 10% 1,845 - 2,045 1,845 - 2,045
Escondida (kt) 333.6 (2%) 16% 977.6 20% 1,180 - 1,300 1,180 - 1,300 Upper half
Pampa Norte (kt)(ii) 67.9 3% 10% 194.2 (3%) 240 - 270(ii) 240 - 270(ii) Upper half
Copper South Australia (kt) 78.9 11% (0%) 223.5 (4%) 300 - 325 300 - 325 Unchanged
Antamina (kt) 30.9 1% (9%) 97.7 (7%) 115 - 135 115 - 135 Unchanged
Carajás (kt) 1.9 (37%) (39%) 7.2 17% - - -
Iron ore (Mt) 61.8 (7%) 0% 192.6 1% 255 - 265.5 255 - 265.5
WAIO (Mt) 60.1 (7%) (0%) 188.3 1% 250 - 260 250 - 260 Unchanged
WAIO (100% basis) (Mt) 67.8 (7%) (0%) 212.5 1% 282 - 294 282 - 294 Unchanged
Samarco (Mt) 1.6 11% 39% 4.4 18% 5 - 5.5 5 - 5.5 Upper end
Steelmaking coal - BMA (Mt)(iii) 3.9 (12%) (35%) 12.9 (26%) 16.5 - 19 16.5 - 19 Original
BMA (100% basis) (Mt)(iii) 7.8 (12%) (35%) 25.7 (26%) 33 - 38 33 - 38 Original
Energy coal - NSWEC (Mt) 3.6 (3%) (13%) 11.0 (6%) 13 - 15 13 - 15 Upper half
Nickel - Western Australia Nickel (kt)(iv) 2.3 (71%) (88%) 29.9 (49%) - - -
Note: Updates with respect to FY25 production guidance since the HY25 Results
Announcement are shown in italics. Refer page 5 for footnotes.
Segment and asset performance | FY25 YTD v FY24 YTD
Further information in Appendix 1 (#_Appendix_1)
Detailed production and sales information for all operations in Appendix 2
(#_Appendix_2_1)
BHP | Operational review for the nine months ended 31 March 2025
Copper
Production Total copper production increased 10% to a record 1,500 kt. Copper production
guidance for FY25 remains unchanged at between 1,845 and 2,045 kt.
1,500 kt Up 10%
Escondida 978 kt Up 20% (100% basis)
Production increased primarily due to strong material mined, higher
YTD Mar FY24 1,360 kt concentrator feed grade of 1.05%, increasing from 0.85%, and higher
concentrator throughput. This was partially offset by planned lower cathode
FY25e 1,845 - 2,045 kt production, as the integration of the Full SaL leaching project continued. The
project remains on track for first production later in FY25.
Production guidance for FY25 remains unchanged at between 1,180 and 1,300 kt
Average realised price and is now expected to be in the upper half of this range, as strong
operational performance across the year offset the challenges of Union N°1
US$4.19/lb Up 13% strike action, sea swells at Puerto Coloso and the national Chilean power
outage in February. Concentrator feed grade is now expected to be above 0.95%
YTD Mar FY24 US$3.72/lb (previously above 0.90%) for FY25.
Following the site visit in November 2024, we have continued to optimise our
growth program schedule to reduce production impacts. It is expected the
operation of the Los Colorados concentrator will be extended beyond FY29,
without any impact to the remainder of the growth program. We anticipate this
extension and other operational measures will increase production across the
period from 2027 to 2031, to between 900 - 1,000 ktpa, extending current
medium term guidance. The actions have the potential to add an incremental
~400 kt of production across the period.
Pampa Norte 194 kt Down 3%
Pampa Norte consists of Spence and Cerro Colorado. Spence production increased
3% due to improved stacked material and grades, notwithstanding the impact of
the national Chilean power outage in February. Concentrator feed grade was
broadly in line with the prior period.
Production guidance for FY25 for Spence remains unchanged at between 240 and
270 kt, with production now expected to be in the upper half of the range.
Cerro Colorado remains in temporary care and maintenance having contributed 11
kt of copper production in HY24.
Copper South Australia 224 kt Down 4%
Strong underlying performance following the weather-related power outage in
Q2. The Olympic Dam smelter and refinery demonstrated operating stability,
delivering strong copper cathode production and record refined gold and silver
production in the quarter.
Carrapateena is achieving higher productivity from the sub-level cave enabled
by Crusher 2, delivering record mine and concentrator performance. Production
was lower at Prominent Hill due to the impacts of the minor pit geotechnical
instability and ventilation constraints in Q1, which was partially offset by
inventory drawdowns.
Production guidance for FY25 remains unchanged at between 300 and 325 kt.
Other copper
At Antamina, copper production decreased 7% to 98 kt reflecting planned lower
concentrator throughput and a slight decline in feed grade. Zinc production
was 22% lower at 68 kt, as a result of planned lower feed grade and lower
throughput.
For FY25, at Antamina, copper production guidance of between 115 and 135 kt
and zinc production guidance of between 90 and 110 kt remain unchanged.
Carajás produced 7.2 kt of copper and 5.5 troy koz of gold.
2
BHP | Operational review for the nine months ended 31 March 2025
Iron ore
Production Iron ore production increased 1% to a record 193 Mt. Production guidance for
FY25 remains unchanged at between 255 and 265.5 Mt.
193 Mt Up 1%
WAIO 188 Mt Up 1% | 213 Mt (100% basis)
Production increased as a result of continued strong supply chain performance,
YTD Mar FY24 190 Mt with record volumes delivered from the Central Pilbara hub (South Flank and
Mining Area C) following the completion of the ramp up of South Flank in FY24
FY25e 255 - 265.5 Mt and a 13% increase in productive movement.
The Port Debottlenecking Project 1 (PDP1), which was delivered in CY24, has
continued to unlock improved car dumper and ship loader performance with
Average realised price record nine-month shipments of iron ore.
US$82.93/wmt Down 21% This strong performance was partially offset by the impact of Tropical Cyclone
Zelia and Tropical Storm Sean, and the planned increase in tie-in activity of
YTD Mar FY24 US$104.53/wmt the multi-year Rail Technology Programme (RTP1).
Production guidance for FY25 remains unchanged at between 250 and 260 Mt (282
and 294 Mt on a 100% basis).
Samarco 4.4 Mt Up 18% | 8.8 Mt (100% basis)
Production continues to increase following the restart of the second
concentrator in December. Ramp up is progressing well and production capacity
is expected to increase to ~16 Mtpa of pellets (100% basis) once fully ramped
up by the end of FY25 (ahead of schedule).
Production guidance for FY25 remains unchanged at between 5 and 5.5 Mt, with
production expected to be at the upper end of the range.
Coal
Steelmaking coal
Production BMA 12.9 Mt Down 26% | 25.7 Mt (100% basis)
Production increased 5% (excluding the contribution of Blackwater and Daunia
12.9 Mt Down 26% in FY24). Strong performance across the open cut mines, underpinned by
improved truck productivity and a draw down of inventory, helped mitigate the
YTD Mar FY24 17.4 Mt impact of significant wet weatherv in the December and March quarters.
FY25e 16.5 - 19 Mt At Broadmeadow, we are operating at slower mining rates to safely manage the
geotechnical characteristics of the current longwall panel. We expect this
will continue into Q1 FY26.
Average realised price Production guidance for FY25 remains unchanged at between 16.5 and 19 Mt (33
and 38 Mt on a 100% basis). Following the impact of significant wet weather
US$200.12/t Down 26% and geotechnical challenges at Broadmeadow, production is now no longer guided
to the upper half of the range and unit costs for FY25 are now expected to be
YTD Mar FY24 US$272.09/t between US$128/t and US$133/tvi.
Our work to improve raw coal inventory levels in prior periods has assisted in
stabilising operating performance across the asset, as we have drawn down on
inventory this quarter to help mitigate the impact of wet weather and
geotechnical challenges. This will extend the inventory rebuild into CY27.
3
BHP | Operational review for the nine months ended 31 March 2025
Energy coal
Production NSWEC 11.0 Mt Down 6%
Production decreased as a result of reduced truck availability, increased wet
11.0 Mt Down 6% weather and a higher proportion of washed coal, partially offset by a draw
down of inventory.
YTD Mar FY24 11.6 Mt
Production guidance for FY25 remains unchanged at between 13 and 15 Mt, with
FY25e 13 - 15 Mt production expected to be in the upper half of the range.
On 16 April 2025, we received approval from the NSW Government to extend
mining to 30 June 2030.
Average realised price
US$115.99/t Down 4%
YTD Mar FY24 US$120.97/t
Group & Unallocated
Nickel
Production Western Australia Nickel 30 kt Down 49%
Western Australia Nickel (WAN) transitioned into temporary suspension in HY25.
30 kt Down 49% No production guidance has been provided for FY25.
YTD Mar FY24 59 kt BHP intends to review the decision to temporarily suspend WAN by February
2027.
Quarterly performance | Q3 FY25 v Q2 FY25
Copper Iron ore
513 kt Up -% Higher production at Copper SA with strong performance following the 62 Mt Down 7% Lower production at WAIO as a result of the impact of Tropical Cyclone Zelia
weather-related power outage in Q2 was offset by lower production at Escondida
and Tropical Storm Sean.
Q2 FY25 511 kt due to a national Chilean power outage and high sea swells which prevented Q2 FY25 66 Mt
concentrate loading onto vessels resulting in a temporary suspension to
upstream concentrator operations.
Steelmaking coal Energy coal
3.9 Mt Down 12% Lower production due to significant wet weather, partially offset by inventory 3.6 Mt Down 3% Lower production due to reduced wash plant availability and the impact of wet
draw down.
weather.
Q2 FY25 4.4 Mt Q2 FY25 3.7 Mt
Nickel
2.3 kt Down 71% Inventory was drawn down as operations transitioned into temporary suspension
in HY25.
Q2 FY25 8.0 kt
4
BHP | Operational review for the nine months ended 31 March 2025
Footnotes
i Our operational GHG emissions are the Scopes 1 and 2 emissions from
our operated assets. Our FY30 reduction target is from our FY20 baseline,
adjusted for acquisitions, divestments and greenhouse gas emission calculation
methodology changes. The latest BHP GHG Emissions Calculation Methodology is
available at bhp.com/climate.
ii YTD March FY24 includes 11 kt from Cerro Colorado, which entered
temporary care and maintenance in December 2023. Excluding these volumes, YTD
March FY25 production increased 3%. Production guidance for FY25 is for Spence
only. Refer to copper (#_Copper) and the production and sales report
(#_Appendix_2_2) for further information.
iii YTD March FY24 production includes 5 Mt (10 Mt on a 100% basis) from
the Blackwater and Daunia mines, which were divested on 2 April 2024.
Excluding these volumes, YTD March FY25 production increased 5%. Following the
impact of significant wet weather and geotechnical challenges, production is
now no longer guided to the upper half of the guidance range. Refer to
steelmaking coal (#_Metallurgical_coal) and the production and sales report
(#_Appendix_2_2) for further information.
iv Western Australia Nickel ramped down and entered temporary suspension
in December 2024. Refer to nickel (#_Nickel) and the production and sales
report (#_Appendix_2_2) for further information.
v 649mm of rainfall recorded at Moranbah in the nine months ended 31
March 2025, 32% higher than the nine months ended 31 March 2024 (493mm).
vi FY25 unit cost guidance is based on an exchange rate of AUD/USD 0.66.
5
BHP | Operational review for the nine months ended 31 March 2025
Appendix 1
Average realised prices(i)
Quarter performance YTD performance
Q3 FY25 v Q2 FY25 v Q3 FY24 YTD Mar FY25 v YTD Mar FY24
Copper (US$/lb)(i)(i) 4.56 22% 18% 4.19 13%
Iron ore (US$/wmt, FOB) 86.85 6% (18%) 82.93 (21%)
Steelmaking coal (US$/t) (iii) 184.98 (7%) (34%) 200.12 (26%)
Energy coal (US$/t)(iv) 97.81 (21%) (16%) 115.99 (4%)
i Based on provisional, unaudited estimates. Prices exclude sales from
equity accounted investments, third party product and internal sales, and
represent the weighted average of various sales terms (for example: FOB, CIF
and CFR), unless otherwise noted. Includes the impact of provisional pricing
and finalisation adjustments.
ii Sales from Carrapateena and Prominent Hill acquired through the
purchase of OZL are included since Q4 FY24 period.
iii From FY25, steelmaking coal refers to hard coking coal which is
generally those steelmaking coals with a Coke Strength after Reaction (CSR) of
35 and above. Comparative periods include impacts from weak coking coal, which
refers generally to those steelmaking coals with a CSR below 35, which were
sold by Blackwater and Daunia mines, divested on 2 April 2024.
iv Export sales only. Includes thermal coal sales from steelmaking coal
mines.
Current year unit cost guidance
FY25 guidance(i)
Unit cost Current
Escondida (US$/lb) 1.30 - 1.60 Unchanged
Spence (US$/lb) 2.00 - 2.30 Unchanged
Copper SA (US$/lb)(ii) 1.30 - 1.80 Upper half
WAIO (US$/t) 18.00 - 19.50 Unchanged
BMA (US$/t) 128 - 133 Increased
i FY25 unit cost guidance is based on exchange rates of AUD/USD
0.66 and USD/CLP 842.
ii Calculated using the following assumptions for by-products: gold
US$2,000/oz, and uranium US$80/lb.
Medium term guidance(i)
Production Unit cost
guidance guidance(ii)
Escondida(iii) 900 - 1,000 ktpa US$1.50 - 1.80/lb
Spence ~250 ktpa US$2.05 - 2.35/lb
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