BHP Billiton Limited (ASX: BHP) shares bounced 3% on Wednesday, according to Google Finance, following an important ASX filing.
In an announcement to the ASX, BHP, Australia’s largest mining company, released its 2018 production report showing strong results across iron ore, coal, copper and petroleum.
For 2018, BHP reported production for each of its key commodities:
- Petroleum of 192 million barrels, down 8% year over year
- 1.75 million tonnes of copper, up 32%, and
- 238 million tonnes of iron ore, up 3%
“We have delivered a strong finish to the 2018 financial year with an eight per cent increase in annual production and record output at Western Australia Iron Ore, Queensland Coal and at our Spence copper mine in Chile,” BHP CEO Andrew Mackenzie said.
Looking into its 2019 financial year, BHP expects flat to slightly negative production across petroleum and copper and a 1% to 5% increase in iron ore output.
Price Boost
Pleasingly for BHP, the prices of its key commodities also increased during 2018.
“Good prices and our culture of continuous improvement give us positive momentum into the 2019 financial year,” Mackenzie added.
Average selling prices of oil, for example, rose 26% year over year. Copper and metallurgical coal prices rose 23% and 9%, respectively. Iron ore prices fell 3%.
Summary
With commodity prices showing strength and solid production, investors reacted favourably to BHP’s announcement this morning. According to The Wall Street Journal and Reuters, the average analyst rating for BHP shares is “overweight”.
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