In key news on Australian stocks, BHP Group Limited (AU:BHP) shares gained 1.46% today after the company released its update for Q3 FY24 and maintained its annual production targets on multiple commodities. For Fiscal 2024, the company expects iron ore production to be between 254 million and 264.5 million tonnes. The production guidance for copper was also kept unchanged in the range of 1,720 and 1,910 kt (thousands of tonnes) for the full year.
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BHP is a multinational mining company that produces diverse commodities, such as iron ore, coal, copper, nickel, and other minerals.
BHP’s Increased Output
BHP witnessed an increase in iron ore and copper production compared to the corresponding period last year. The company reported iron ore production of 61.5 Mt (metric tons) in the three months ending in March, marking a 3% year-over-year increase. However, the iron ore output declined by 7% quarter-over-quarter. Total production for the first nine months of FY24 declined by 1% to 190 Mt. The decline was mainly attributed to the lower output at Western Australia Iron Ore due to heavy rainfall and the ongoing rail infrastructure work.
Regarding copper, total production rose by 10% to 1,360 kt during the first nine months of FY24. In the third quarter alone, output increased by 15% to 465.9 kt compared to the same quarter last year.
BHP also indicated that it is currently evaluating its plans for the nickel business, aiming to optimize operations and conserve cash. Nickel production witnessed a 1% increase to 58.6 kt in the first three quarters. However, for FY24, production is anticipated to come in at the lower half of the guidance range, which is between 77 kt and 87 kt.
What is the Prediction for BHP Stock?
According to TipRanks’ consensus, BHP stock has been assigned a Moderate Buy rating, backed by 11 Hold and five Buy recommendations. The BHP share price target is AU$45.56, which is 1% above the current trading price.
