The BHP Group Ltd (ASX: BHP) share price is under the spotlight after the company reported its June 2024 mining operational update.
BHP is involved in a number of commodities including copper, iron ore, metallurgical coal (used for steel), energy coal and nickel.
BHP’s June 2024 performance
The ASX mining giant revealed how it performed for each of its commodities.
BHP produced 69.2mt of iron in the FY24 fourth quarter, which was up 6% year on year and up 13% quarter on quarter.
It produced 504.9kt of copper, which was an increase of 6% year on year. and a rise of 8% quarter on quarter.
The miner produced 4.9mt of metallurgical coal, which was down 42% year on year and down 18% quarter on quarter. It sold the Blackwater and Daunia mines on 2 April 2024.
Energy coal production was 3.8mt, down 21% year on year and down 10% quarter on quarter.
Nickel production came to 23kt, up 5% year on year and up 22% quarter on quarter.
These numbers also allowed the company to report its FY24 annual production figures. It reported it met FY24 production guidance for all commodities. Impressively, there was record production of 254.9mt (up 1%) at its key Western Australian Iron Ore (WAIO) operations. Total copper production increased 9% to 1,865.2kt.
The average realised prices for copper and iron ore were higher in FY24, which is good news for the BHP share price, while metallurgical coal prices remained “relatively stable”. Nickel and energy coal prices were lower.
In terms of mining costs, unit cost guidance is “expected to be met” at WAIO, as well as at copper projects Escondida and Spence.
Construction of stage one of its Jansen potash mine in Canada is now more than 50% complete and stage two is underway. It expects to see first production in 2026 and that it will be a major global producer of potash by the end of the decade.
FY25 guidance
The ASX miner revealed how much it expects to produce in FY25.
Copper production is guided at between 1,845kt to 2,045kt, which would be between a decline of 1% and a rise of 10%, year on year.
Iron ore production is guided at 255mt to 265.5mt, which would represent up to a 2% decline or 2% increase compared to FY24.
The company expects to produce no nickel after its recent announcement to stop operations.
Both metallurgical and energy coal could see double-digit production declines.
Final thoughts on the BHP share price
BHP did well at its iron ore and copper operations. However, the continuing Samarco fallout and the nickel pain were disappointing during FY24.
I believe it can make sense to look at BHP when commodity prices and weak, leading to a lower BHP share price. Resource prices don’t seem at depressed prices right now, so I’d wait on buying the ASX miner and look at other ASX dividend shares instead.
