The BHP Group Ltd (ASX: BHP) share price is under the spotlight after reporting its FY25 first quarter operational update.
BHP is one of the world’s largest resource businesses, which produces a number of commodities including iron ore and copper.
BHP reports FY25 Q1
The mining business revealed how much it produced in the three months to September 2024.
Iron ore production for the quarter was 64.6 million tonnes (mt), which was up 2% year on year, but down 7% compared to the FY24 fourth quarter. The average realised price for the quarter was around US$80 per wet metric tonne, down 18% year on year.
Copper production was 476.3kt, which represented a 4% year on year increase, but a 6% decrease compared to the FY24 fourth quarter. The average realised price for copper increased by 17% to US$4.24 per pound.
Steelmaking coal production was 4.5mt, down 19% year on year, and down 8% from the fourth quarter of FY24.
Energy coal production was 3.7mt, up 2% year on year and down 2% from the FY24 fourth quarter.
Nickel production was 19.6kt, down 3% year on year and down 15% quarter on quarter.
Operational highlights
BHP said copper production increased 4% due to higher grade and recoveries at Escondida, while Western Australia Iron Ore production increased 3% as it “unlocked capacity by completing the debottlenecking work at the port.”
In Canada, its Jansen potash project stage 1 is 58% complete after a productive summer period with first production scheduled in around two years.
Nickel production reduced as it commenced the temporary suspension of operations, starting in October 2024. It plans to invest around US$300 million per year, starting in January 2025, to preserve optionality for a potential restart.
Final thoughts on the BHP share price
The ASX mining share noted China has announced a series of monetary easing policies in an effort to support economic growth, and has indicated more significant financial stimulus is on the horizon. This is good news for BHP shareholders if it increases commodity demand.
BHP said upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.
The ASX miner’s share price has rallied 9% since 23 September, so I don’t think it is as good value now as it was. I’d want to wait for a better price.
There are other ASX dividend shares that may be better value and could achieve more growth, in my view.
