The BHP Group Ltd (ASX: BHP) share price is under the spotlight after announcing its FY25 third quarter operational update.
BHP is involved in a number of commodities including iron ore, copper, coal, potash and nickel.
BHP FY25 third quarter update
The ASX mining stock told investors how much of each commodity it produced in the third quarter of FY25, which are the three months to 31 March 2025.
It produced 61.8mt of iron ore, which represented a 0% changed compared to the third quarter of FY24. However, it was 7% lower than the second quarter of FY25.
BHP said its production was strong thanks to its supply chain. The port debottlenecking project was delivered in 2024 and has continued to unlock improved car dumper and ship loader performance. However, its performance was partially offset by weather.
It produced 513.2kt of copper for the quarter, which was up 10% year-on-year, but it was flat compared to the second quarter of FY25.
I’d describe iron ore and copper as the key factors for the BHP share price.
Steelmaking coal production declined by 36% year-on-year to 3.9mt and energy coal production reduced 13% to 3.6mt.
Nickel production was 2.3kt, down 88%, as it transitioned into (temporary) suspension.
The Jansen potash project saw stage 1 reach 66% completion and stage 2 reach 8% completion.
Management comments
The BHP CEO Mike Henry said:
BHP’s performance in FY25 to date demonstrates the resilience of our business, with our copper and iron ore operations achieving record nine-month production amid challenging operating and market conditions. Group copper production rose 10%, underpinned by a 20% increase in output at Escondida and strong performances at Spence and Copper SA. In our WA iron ore operations, we continue to demonstrate supply chain excellence from pit to port, and delivered record tonnes from the Central Pilbara hub. At BMA in Queensland, in the highest rainfall wet season in more than a decade, steelmaking coal volumes rose by 5% following a strong performance across the open cut mines.
BHP recently achieved 40% female representation across our global employee base, a 23% point increase since 2016. The efforts that have underpinned this have made BHP a safer, more productive, and better performing business. We have a distinctive competitive advantage in responding to labour and skills shortages across our sector.
Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant. China’s ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook.
In the face of global volatility and policy uncertainty, BHP is poised to benefit from a flight to quality with tier one assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle.
Final thoughts on the BHP share price
Considering the BHP share price is sitting under $37 right now, this seems like a decent time to buy. BHP is a very strong business in the commodity world and I imagine it will continue to want to pay pleasing dividends to investors.
If the iron ore price weakens from here due to Chinese economic weakness, I think there’s a chance China could respond with financial stimulus.
