BHP Billiton Limited (ASX: BHP) shares rose this morning after the mining giant reported its operational review for the nine months to 31 March 2018.
BHP is one of the largest resource companies in the world, producing significant amounts of petroleum, copper, iron ore and coal.
For the financial year to date, BHP reported:
- Petroleum production down 8% due to natural field decline
- Copper production up 37% with increased volumes at Escondida
- Iron ore production up 2% with record production at Jimblebar
- Metallurgical coal production down 2%
- Energy coal down 4% due to unfavourable weather impacts
“BHP remains on track to achieve 6% volume growth for the 2018 financial year. Strong performance in copper was underpinned by the Los Colorados Extension project at Escondida and higher utilisation rates at Pampa Norte,” BHP CEO Andrew Mackenzie said.
Our exit from Onshore US [petroleum] is progressing to plan with bids expected by June 2018. – Mackenzie
Looking out to the full year, BHP said it still expects to produce between 330 and 340 million tonnes of iron ore.
Takeaway
Investors appear to have liked what they saw from BHP’s report, with the share price going up 3% in early trade, according to Google Finance. BHP’s report follows that of rival Rio Tinto Limited (ASX: RIO) earlier in the week, revealing an 8% increase in iron ore production.
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