The BHP Group Ltd (ASX: BHP) share price is under the spotlight as the miner just revealed solid production.
BHP’s HY23 production
The large miner reported how much it produced in the December 2022 quarter and the December half.
In the six months to December 2022:
- Iron ore production of 132 mt, up 2%
- Copper production of 834.4 kt, up 12%
- Metallurgical (steel) coal production of 13.6 mt, up 5%
- Energy coal production of 5.5 mt, down 24%
- Nickel production of 38.4 kt, down 2%
The mining giant also told investors how the quarter for the three months to December 2022 performed:
- Iron ore production of 66.9 mt, up 3%
- Copper production of 424.3 mt, up 3%
- Metallurgical coal production of 7 mt, up 4%
- Energy coal production of 2.9mt, up 9%
- Nickel production of 17.7mt, down 14%
BHP explained that it achieved record iron ore production in the month of December 2022 because of “strong supply chain performance and reduced impacts of labour constraints and wet weather”.
Nickel saw lower production because of planned maintenance at the smelter and refinery. Copper production saw higher volumes at Escondida due to “higher throughput, higher concentrate volumes at Spence reflecting the ramp up of the Spence growth option, and strong volumes at Olympic Dam as a result of planned refinery maintenance in the prior period.”
BHP also noted that it’s seeing the impact of inflation across its global supply chains and continues to focus on productivity and controllable costs.
Management commentary on the outlook
The BHP CEO Mike Henry said:
BHP believes China will be a stabilising force when it comes to commodity demand in the 2023 calendar year, with OECD nations experiencing economic headwinds. China’s pro-growth policies, including in the property sector, and an easing of COVID-19 restrictions are expected to support progressive improvement from the difficult economic conditions of the first half. China is expected to achieve its fifth straight year of over 1 billion tonnes of steel production.
During the quarter, we continued to progress a number of growth pathways to shape our portfolio toward future facing commodities and reduce our operational emissions. In December 2022, BHP’s scheme implementation deed to acquire 100% of Australian copper producer OZ Minerals Limited (ASX: OZL) received unanimous support from the OZ Minerals board ahead of a shareholder vote in the coming months.
Final thoughts on the BHP share price
BHP shares have gone up a lot over the past few months, so it’d probably be best to wait for the heat to be taken out of the share price before thinking about buying. But, it was good to see the company’s production continue to perform.
Until then, there are other ASX dividend shares I think look better value.
