Australian mining giant BHP Billiton $BHP announced it’s iron ore production report and forward guidance Wednesday. $BHP produced 231 million tonnes in the year to June 30.
Australian mining giant BHP Billiton $BHP announced it’s iron ore production report and forward guidance Wednesday. $BHP produced 231 million tonnes of iron ore in the year ended June 30, which was at the lower end of its revised full-year guidance.
The level was higher than fiscal 2016 but less than the 233 million tonnes in fiscal 2015.
BHP forecast an improvement in output next year with guidance range of 239 million to 243 million tonnes for the 2017/18 financial year. BHP’s Western Australian iron ore business is scheduled to increase annual exports by 20 million tonnes over the next 24 months. If Samarco restarts, the iron ore division will ensue strong growth.
They will take a charge of up to $US740 million against its full-year profit for strike-related costs at its Escondida copper mine in Chile and on withholding tax in the country.
The company had been is expected to report declining annual production in four of its five “pillar” commodities on Wednesday, as had been the trend for the past two years global commodities slump. Some of it planned some not, BHP has seen strikes, cyclones, a dam collapse and asset sales.
There was however no planned decline in iron ore output; the Samarco dam disaster in November 2015 caused BHP to lose an estimated 15 million tonnes of iron ore a year since.
UBS issued a report over the weekend saying that fiscal 2017 production forecasts for BHP’s copper, petroleum and thermal coal divisions will have declined near per cent since fiscal 2015. That was the first year BHP’s production numbers excluded the assets that now belong to South32.
The release comes the day after the Australian Dollar Hits 2 Year High on Hawkish RBA, Iron Ore Demand
From the Traders Community News Desk