BHP Group Limited (ASX:BHP) Operational Review for Half Year 2024
Operational Performance
BHP Group Limited (ASX:BHP) reported a strong underlying operational performance for the half year ending December 31, 2024, with a notable 10% increase in copper production. The flagship Escondida mine achieved a 10-year production record, boosting volumes by 22%. Furthermore, BHP’s Western Australia Iron Ore (WAIO) operations shipped record tons during this period, driven by recent supply chain improvements.
Growth and Strategic Ventures
In January 2025, BHP enhanced its copper growth pathways by forming Vicuña Corp., a joint venture with Lundin Mining to develop significant projects in Argentina. Additionally, the Jansen Stage 1 potash project in Canada is now 63% complete, with first production expected in late 2026. BHP remains focused on these future-facing commodities while maintaining cost discipline.
Production Guidance and Financial Outlook
The company anticipates delivering production in the upper half of its FY25 guidance range, aside from minor adjustments to its Copper South Australia output due to weather impacts. BHP expects FY25 unit cost guidance to be maintained across most assets, albeit with a slight increase in Copper SA costs attributed to the recent power outage.
Executive Comments
BHP Chief Executive Officer Mike Henry stated, “BHP is in good shape and we have a clear pathway for growth.” He highlighted the company’s commitment to operational excellence and emphasized the ongoing work to support sustainable development initiatives following recent events in Brazil related to the Samarco dam failure.
Financial Disclosures
BHP’s preliminary financial results for the first half of FY25 will be released on February 18, 2025. The company anticipates a net debt balance between US$11.5 billion and US$12.5 billion as of December 31, 2024, influenced by recent strategic transactions and settlements.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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