BHP Group – world’s third largest iron ore producer has today announced H2 CY19 results. The production for the H2 CY’19 from Western Australia iron ore operations recorded at 137 MnT, up marginally as compared with 134.7 MnT in H1 CY19. Fig mentioned is on 100% basis.
For the last quarter CY19 (Q4 CY19) production witnessed at 68 MnT, down against 69 MnT in Q3 CY19. The output witnessed rise amid record production at Jimblebar which was offset by car dumper maintenance program (completed in October 2019).
On yearly basis, the production increased 4% in Q4 CY19 against 65.5 MnT in Q4 CY18.
The total production for the CY19 decreased slightly to 271.1 MnT as compared to 274 MnT in CY18.
FY20(July’19- June’20) production guidance
BHP Group FY20 iron ore production target intact at 273-286 MnT (up against FY19) on back of planned maintenance program at Port Hedland for the fiscal year.
BHP Group’s iron ore sales up 2% in H2 CY19
BHP Group’s total iron ore sales from Pilbara on 100% basis witnessed at 137.7 MnT for H2 CY’19, up as against 135.2 MnT in H1 CY19. On quarterly basis, the sales picked up to 69.5 MnT in Q4 CY19 compared to 68.3 MnT in Q3 CY19. The fourth quarter CY19 shipments recorded 6% rise compared to 65.8 MnT in Q4 CY18.
The total sales for CY’19 witnessed slight drop to 272.9 MnT, as compared to 274.4 MnT for CY18.
BHP Group: Key Updates
· The South Flank project is expected to replace production from 80 MnT p.a. Yandi mines. The project is on schedule and budget. The project is 58% complete and is expected to initiate by CY21.
· Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. However, Samarco received Corrective Operation License (LOC) for its activities in Minas Gerais in Oct’19. Restart can occur when the filtration system is complete and Samarco has met all necessary safety requirements, and will be subject to final approval by Samarco’s shareholders.
· The miner expects the Jimblebar fines to improve in second half of 2020 (H1 CY20) to above Fe 60%.
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