The BHP Group Ltd (ASX: BHP) share price is in focus after the ASX mining share announced its update for the first quarter of FY24.
It mines a number of commodities, including copper, iron ore, coal and coal.
BHP Group Ltd (ASX: BHP) share price
BHP quarterly production
Compared to the first quarter of FY23, this was a mixed bag.
BHP said that its copper production increased by 11% to 457kt, with Escondida production rising 8% to 273kt primarily due to higher concentrator feed grade. In South Australia, it saw “strong operational performance” in its first full quarter of production for the new province, as it brings its copper assets together and progresses further exploration drilling.
However, iron ore production declined by 3% to 63.2mt. BHP put this down to “tie-in activity for the rail technology programme, the ongoing ramp-up and maintenance at South Flank and Mining Area C, and the timing of truck renewal maintenance.” The iron division often has the biggest impact on the BHP share price.
But, the company did say that South Flank remains on track to ramp-up to full production capacity of 80mt per year by the end of FY24. The planned tie-in of the port debottlenecking project continues to progress and remains “on track” to be completed in the 2024 calendar year.
Metallurgical coal production decreased 16% to 5.6mt and energy coal production rose 38% to 3.6mt.
Nickel production saw a 2% decline to 20.2kt. Production decreased in line with higher stripping activity at Mt Keith mining operations.
BHP said that it’s on track to deliver its full-year production and unit cost guidance at all assets.
The potash project Jansen’s stage 1 progress in Canada is going well, it’s one-third complete after a productive summer.
Coal assets to be sold to Whitehaven Coal Ltd (ASX: WHC)
In February 2023, it announced its intention to pursue options to divest the Daunia and Blackwater mines together with its joint venture partner Mitsubishi Development.
BHP said that Whitehaven Coal Ltd (ASX: WHC) has been selected as the preferred bidder in the divestment process.
Final thoughts on the BHP share price
BHP shares are close to a 6-month high, so I wouldn’t call it a good value buy today, with the iron ore price continuing to defy expectations.
I like the green direction that it is moving with copper, nickel and potash. However, I think it’s better to invest when the iron ore price is low. It could pay a good dividend in FY24, but I’d wait for a share price of below $40 to invest.
