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BHP - operational review
BHP released an operational review for the year ended 30 June 2020.
Highlights
- The commitment of BHP's workforce, disciplined controls and financial strength has enabled the group to continue to safely operate through the COVID-19 pandemic and deliver a strong performance.
- Met full year production guidance for iron ore, metallurgical coal and operated copper and energy coal assets. Petroleum production marginally below guidance with lower than expected gas demand due to the impact of COVID-19 in the June 2020 quarter. Antamina and Cerrejon production lower than guidance following the temporary suspension of operations due to COVID-19, with both operations now ramping back up.
- Record production was achieved at Western Australia Iron Ore (WAIO), Caval Ridge and Poitrel despite impacts from wet weather and COVID-19, while record coal was mined at Broadmeadow and record average concentrator throughput was delivered at Escondida.
- Group copper equivalent production for the 2020 financial year broadly in line with the prior year, with volumes expected to be slightly lower in the 2021 financial year due to impacts from a reduction in operational workforces in copper in response to COVID-19 and petroleum natural field decline.
- BHP expects to achieve full year unit cost guidance at WAIO, Queensland Coal and New South Wales Energy Coal (NSWEC). Petroleum and Escondida unit costs are expected to be slightly better than guidance (based on 2020 financial year guidance exchange rates of AUD/USD 0.70 and USD/CLP 683).
- BHP's major projects under development in petroleum and iron ore are tracking to plan. As a result of measures put in place to reduce the spread of COVID-19 in Chile, first production from the Spence Growth Option is now expected between December 2020 and March 2021. BHP continues to assess the impacts of COVID-19 and the temporary reduction in construction activity at Jansen.
- As previously announced, BHP will provide updated capital and exploration expenditure guidance for the 2021 financial year with BHP's full year results.
The financial statements are the subject of ongoing work that will not be finalised until the release of our full year financial results on 18 August 2020.
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