The BHP Group Ltd (ASX: BHP) share price is under the spotlight after the miner reported its production update for the second quarter of FY25.
BHP has operations related to a number of commodities including copper, iron ore, steelmaking coal, energy coal, nickel and potash.
BHP FY25 second quarter update
For the three months to 31 December 2024 (FY25 Q2), BHP said it produced the following:
66.2mt of iron ore, which was up 1% year on year (on FY24 Q1) and up 2% quarter on quarter (on FY25 Q1).
510.7kt of copper, which was up 17% year on year and up 7% quarter on quarter.
4.4mt of steelmaking coal, down 23% year on year and down 2% quarter on quarter.
3.7mt of energy coal, down 4% year on year and up 1% quarter on quarter.
8kt of nickel, down 59% year on year and down 59% quarter on quarter.
Commentary
The large miner explained its copper Escondida project achieved a 10-year production record, more than offsetting the impact of a weather-related power outage at Copper SA
Its Western Australian iron ore operations shipped record half-year tonnes through the port thanks to supply chain improvements after the completion of major debottlenecking at the port. This division is normally the biggest influence on the BHP share price.
BHP also noted it had made further progress on its growth pathways of future-facing commodities. The company said it completed the formation of Vicuna Corp with Lundi Mining to advance the Filo del Sol and Josemaria projects in Argentina, which BHP said is “one of the most significant global copper discoveries in decades”.
Its Jansen stage 1 potash project is now “63% complete”, with first production scheduled for late 2026 and it’s working on stage 2 at the same time.
However, its WA nickel operations have been transitioned into a period of temporary suspension, with many employees moving into roles to support that phase or within other parts of BHP.
The BHP CEO Mike Henry said:
We are well positioned to continue strong momentum into the second half with a number of assets now expected to deliver production in the upper half of their respective ranges, while maintaining tight cost control. BHP is in good shape and we have a clear pathway for growth.
BHP also said:
We are on track to deliver production in the upper half of the FY25 guidance range at WAIO, BMA and NSWEC, as is Samarco. FY25 production guidance at all assets remains unchanged, with the exception of Copper SA, which has been lowered due to the impacts from the weather-related power outage. We maintain sector leading cost discipline and remain on track to deliver FY25 unit cost guidance across all assets.
Final thoughts on the BHP share price
The company’s short-term success could be entirely dependent on what happens with commodity prices, which is uncertain with a changing geopolitical environment for both the US and China.
This may not be the best time to buy BHP shares, I prefer to consider ASX mining shares when their commodity has sunk. For me, that’d be when the iron ore price is closer to US$90 per tonne than it is today.
