BHP Group – world’s third largest iron ore producer has today announced Q1 CY20 results. The production for the quarter Q1 CY20 from Western Australia iron ore operations recorded at 68 MnT, stable on a quarterly basis. The output remained majorly stable despite the Tropical cyclone impacts depicting increased car dumper availability and reliability, improved performance at Jimblebar. Fig mentioned is on 100% basis.
However, the production picked 7% against 63.6 MnT in Q1 CY19.
For the nine months of FY20 (July 19- Mar’20) production witnessed at 205 MnT, up about 4% compared to 198 MnT for the same period last fiscal (July’18-Mar’19).
FY20(July 19- June’20) production guidance
BHP Group FY20 iron ore production target intact at 273-286 MnT for the fiscal year.
BHP Group’s iron ore sales down 2% in Q1 CY20
BHP Group’s total iron ore sales from Pilbara on 100% basis witnessed at 68.4 MnT for Q1 CY’20, down 2% as against 69.5 MnT in Q4 CY19. On a yearly basis, the sales picked up 9% compared to 62.9 MnT in Q1 CY19.
The total sales for FY’20 (July’19-Mar’20) witnessed 4% rise to 206.2 MnT, as compared to 198.1 MnT for FY19 (July’18-Mar’19).
BHP Group: Key Updates
1. 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 66% complete and is expected to be initiated by CY21.
2. 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 a 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.
3. The Jimblebar fines have improved in Mar’20 quarter and expects Fe content to return to above 60% in the June quarter.
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