(RTTNews) – Mining giant BHP Group Ltd. (BHP, BLT.L, BHP.AX, BHP.L) reported Thursday lower production of copper and iron ore in the fourth quarter. Looking ahead, the company projects weak production of copper in fiscal 2027.
In Australia, the shares were losing around 2.43 percent, at A$59.09.
Further, BHP said it expects its second half of fiscal 2026 to reflect Jansen project impairment of around $2.30 billion, as announced earlier. Negative EBITDA for Jansen would be around $150 million.
The company also expects higher depreciation and amortisation of around $450 million compared to first half, due to the capitalisation of various projects.
In the fourth quarter, copper production dropped 5 percent yearover-year to 491.9 kt and Iron ore production fell 3 percent to 68.1 Mt.
However, steelmaking coal – BMA grew 10 percent from last year to 5.7 Mt and Energy coal – NSWEC increased 3 percent to 4.2 Mt.
In fiscal 2026, total copper production decreased 3 percent to 1,953 kt, while Iron ore production increased 1 percent to 264.7 Mt.
Looking ahead for fiscal 2027, the company projects copper production to be between 1,650 and 1,800 kt predominately as a result of the forecast grade decline at Escondida.
Escondida Production guidance for the year remains unchanged at between 1,000 and 1,100 kt.
Iron ore production for the new year is expected to be between 260 and 272 Mt.
Brandon Craig, BHP Chief Executive Officer, said, “We remain confident in the demand for our core commodities, supported by the long-term trends shaping the world, including industrialisation, urbanisation, digitalisation, the energy transition, population growth and food security.”
