TIDMBHP
RNS Number : 4498Q
BHP Group Limited
18 October 2023
18 October 2023
Operational review for the quarter ended 30 September 2023
We remain on track to deliver full year production and unit cost
guidance at all assets.
First quarter operational performance was highlighted by a 11%
uplift in copper production from the previous year. After
completing a typically busy quarter of planned maintenance
particularly at our Australian assets, we are on track to achieve
full year production and unit cost guidance. BMA in particular was
impacted by planned maintenance, an extended longwall move and low
opening inventory following drawdowns in the prior year.
Jansen Stage 1 in Canada is approximately one-third complete
after a productive summer. In South Australia, we saw strong
operational performance in the first full quarter of production for
the new province, as we bring our copper assets together and
progress further exploration drilling.
Mike Henry
BHP Chief Executive Officer
Summary
Operational performance Social value
On track to deliver production guidance Operational decarbonisation
FY24 production guidance remains unchanged. BMA entered into a new renewable
Copper production increased 11%, including power purchase agreement (PPA) which
record quarterly production at Spence. is expected to provide half the
BMA production was lower due to maintenance, forecasted electricity demand of
an extended longwall move and low inventory. BMA's operations over five years
We also executed major planned maintenance from January 2026; and we signed
across our Australian business. a memorandum of understanding (MoU)
with Toyota to reduce GHG emissions
from light vehicles in Australia.
-------------------------------------------- --------------------------------------------
Large, long-life, low-cost assets Growth
3 Bt of iron ore shipped to China Progress in copper and potash provinces
In September, BHP recognised the shipment We saw strong underlying operational
of 3 Bt of high-quality iron ore to performance in the first full quarter
China . Since its initial investment of production from the newly-integrated
over 30 years ago to the end of FY23, Copper South Australia, while our
WAIO has delivered 15% average annual Jansen Stage 1 project remains on
returns and, over the past decade, budget and on track to deliver first
has increased production by >50% and production by the end of CY26 (32%
lowered costs by >30%. complete).
FY24 YTD v Q1 FY24 v Current FY24
Production Q1 FY24 FY23 YTD Q4 FY23 guidance
-------------------------------------------- ----------- ---------------- ------------- ------------- ---------
Copper (kt) 457.0 11% (4%) 1,720 - 1,910
Escondida (kt) 273.3 8% (7%) 1,080 - 1,180 Unchanged
Pampa Norte (kt) 78.3 11% 14% 210 - 250(i) Unchanged
Copper South Australia (kt)(ii) 71.7 44% (6%) 310 - 340 Unchanged
Antamina (kt) 32.5 (12%) (11%) 120 - 140 Unchanged
Carajás (kt)(ii) 1.2 - (25%) - -
Iron ore (Mt) 6 3.2 (3%) (3%) 254 - 264.5
WAIO (Mt) 62.0 (3%) (3%) 250 - 260 Unchanged
WAIO (100% basis) (Mt) 69.4 (4%) (4%) 282 - 294 Unchanged
Samarco (Mt) 1.2 7% 1% 4 - 4.5 Unchanged
Metallurgical coal - BMA (Mt) 5.6 (16%) (34%) 28 - 31
BMA (100% basis) (Mt) 11.2 (16%) (34%) 56 - 62 Unchanged
Energy coal - NSWEC (Mt) 3.6 38% (24%) 13 - 15 Unchanged
Nickel - Nickel West (kt) 20.2 (2%) (8%) 77 - 87 Unchanged
i Production guidance for FY24 is for Spence only and excludes
Cerro Colorado which is now expected to produce 11 kt, up from
previous guidance of 9 kt, as it transitions to closure by 31
December 2023.
ii Q4 FY23 production volumes for the operations acquired from
OZL are for the period of 1 May to 30 June 2023.
1
BHP | Operational review for the quarter ended 30 September
2023
Segment and asset performance | FY24 YTD v FY23 YTD
Copper
Production Total copper production increased by 11% to 457 kt.
457.0 kt Up 11% Guidance for FY24 remains unchanged at between 1,720
Q1 FY23 410.1 kt and 1,910 kt.
FY24e 1,720 - 1,910 Escondida 273 kt Up 8 % (100% basis)
kt Increased production was primarily due to higher
concentrator feed grade of 0. 85 %, compared to 0.
Average realised 83 % in the September 2022 quarter . Concentrator
price(1,2) feed grade is expected to be between 0.85% and 0.90%
US$3.63/lb Down during FY24. Guidance for FY24 remains unchanged
4 % at between 1,080 and 1,180 kt, with production expected
H2 FY23 US$3.80/lb to be weighted towards the second half of the year.
Escondida successfully completed negotiations for
a new collective agreement with the Union Ndeg2 of
Supervisors, effective for 36 months from 1 October
2023.
Pampa Norte 78 kt Up 11 %
Production at Spence increased 19% to a quarterly
record of 69 kt, largely as a result of improved
concentrator performance and recoveries. The concentrator
plant modifications, which commenced in August 2022,
are now expected to be completed in FY24. Guidance
for Spence remains unchanged at between 210 and 250
kt for FY24, subject to the remediation of the previously
identified anomalies in the Spence Tailings Storage
Facility.
Production at Cerro Colorado was 26% lower at 9 kt
as it transitions towards closure by t he end of
December 2023. Production for H1 FY24 is now expected
to be 11 kt, up from a previous estimate of 9 kt.
Copper South Australia 72 kt Up 44 %
Production increased due to the additional 23 kt
from Prominent Hill and Carrapateena. Pleasingly,
integration of the Olympic Dam, Prominent Hill and
Carrapateena assets has gone well, with strong operational
performance and continued focus on safe and reliable
production, in particular at Olympic Dam (record
material mined since FY15) and Carrapateena (record
development metres achieved in September). Planned
maintenance was completed across the province. In
addition, we upgraded a conveyor at Carrapateena,
ahead of the planned commissioning of Crusher 2 in
Q3 FY24. Olympic Dam also delivered record gold production
(for the second time in three quarters) and gold
sales in the quarter.
Production guidance remains unchanged at between
310 and 340 kt for FY24.
Exploration drilling continued beneath the Olympic
Dam ore body with eight active drill rigs and at
Oak Dam with 10 operating drill rigs.
Other copper
Antamina copper production decreased by 12% to 33
kt reflecting planned lower copper feed grades. Zinc
production was 9% higher at 36 kt, reflecting higher
grades. Copper guidance of 120 to 140 kt and zinc
guidance of between 85 and 105 kt remains unchanged
for FY24.
Carajás produced 1.2 kt of copper and 0.8 troy
koz of gold. Operations were suspended in August
due to a geotechnical event, and are expected to
recommence in Q2 FY24.
2
BHP | Operational review for the quarter ended 30 September
2023
Iron ore
Production Total iron ore production decreased by 3% to 63 Mt. Guidance for FY24 remains unchanged at
63.2 Mt Down 3 % between 254 and 264.5 Mt.
Q1 FY23 65.1 Mt WAIO 62 Mt Down 3 % | 69 Mt (100% basis)
FY24e 254 - 264.5 Mt Production was lower due to tie-in activity for the Rail Technology Programme (RTP1), the
ongoing ramp up and maintenance at the Central Pilbara hub (South Flank and Mining Area
Average realised price(1) C),
US$98.04/wmt Down 2% and the timing of track renewal maintenance.
H2 FY23 US$99.88/wmt South Flank remains on track to ramp up to full production capacity of 80 Mtpa (100%
basis)
by the end of FY24. The planned tie-in of the Port Debottlenecking Project (PDP1)
continues
to progress and remains on track to be completed in CY24.
Guidance for FY24 remains unchanged at between 250 and 260 Mt (282 and 294 Mt on a 100%
basis).
We are building inventory at the mines while we complete planned maintenance and with
South
Flank continuing to ramp up, volumes are expected to be weighted to the second half.
Samarco 1.2 Mt Up 7 % | 2.5 Mt (100% basis)
Production increased as a result of higher concentrator throughput. Guidance for FY24
remains
unchanged at between 4 and 4.5 Mt.
-------------------------- ------------------------------------------------------------------------------------------
Coal
Metallurgical coal
Production BMA 5.6 Mt Down 16% | 11.2 Mt (100% basis)
5.6 Mt Down 16 % Lower production was due to planned wash plant maintenance at Goonyella, mining in higher
Q1 FY23 6.7 Mt strip ratio areas, an extended longwall move at Broadmeadow, and a stoppage at Peak Downs.
FY24e 28 - 31 Mt This was partially offset by strong underlying truck productivity and favourable weather
conditions.
Average realised price(1) BMA also opened the period with low inventory levels compared with an inventory drawdown
US$237.07/t Down 13% in
H2 FY23 US$273.08/t the prior year due to wet weather.
Guidance for FY24 remains unchanged at between 28 and 31 Mt (56 and 62 Mt on a 100%
basis).
Planned wash plant maintenance at Peak Downs and Caval Ridge and the ramp up of
Broadmeadow
from the longwall move will continue into Q2. Once completed, we expect underlying
operating
performance to deliver increased production in the second half.
In February 2023, we announced our intention to pursue options to divest the Daunia and
Blackwater
mines together with our joint venture partner Mitsubishi Development Pty Ltd. BHP confirms
that Whitehaven Coal has been selected as the preferred bidder in the divestment process.
Energy coal
Production NSWEC 3.6 Mt Up 38 %
3.6 Mt Up 38% Production increased due to favourable weather conditions
Q1 FY23 2.6 Mt and eased labour constraints, which enabled record
FY24e 13 - 15 Mt annualised truck hours for the quarter. This was partially
offset by planned wash plant maintenance completed
Average realised in August.
price(1,3) Guidance for FY24 remains unchanged at between 13
US$125.66/t Down and 15 Mt.
20% On 6 September 2023, the NSW Government announced
H2 FY23 US$157.21/t a 2.6% point increase in coal royalties (from 8.2%
to 10.8% for open cut mines), which will become effective
from 1 July 2024, coinciding with the end of the legislated
period for the domestic reservation policy.
We have submitted a consent modification to mine beyond
FY26 to closure in FY30, and will take into consideration
the increase to NSW royalties in the plans for closure.
3
BHP | Operational review for the quarter ended 30 September
2023
Group & Unallocated
Nickel
Production Nickel West 20.2 kt Down 2 %
20.2 kt Down 2% Production decreased marginally in line with higher
Q1 FY23 2 0.7 kt stripping activity at Mt Keith mining operations.
FY24e 7 7 - 87 Guidance remains unchanged at between 77 and 87 kt
kt for FY24. The refinery shutdown planned for October
2023 will now largely be completed in February 2024,
Average realised and as a result production is expected to be relatively
price (1) flat across the remainder of the year.
US$20,354/t Down
14%
H2 FY23 US$23,652/t
Quarterly performance | Q1 FY24 v Q4 FY23
Copper Iron ore
457 kt Down Strong underlying operational 63.2 Mt Down Lower production at
4% performance, including 3% WAIO as a result of
Q4 FY23 476.2 record quarterly production Q4 FY23 65.3 planned equipment maintenance
kt at Spence, was offset Mt and the ongoing ramp-up
by planned maintenance of the Central Pilbara
across Copper South hub , partially offset
Australia and lower by favourable weather
concentrator and stacking following Tropical Cyclone
grades at Escondida Ilsa in the prior quarter.
.
Metallurgical coal Energy coal
5.6 Mt Down The low opening inventory 3.6 Mt Down Lower volumes at NSWEC
34 % position following drawdowns 24% reflected planned wash
Q4 FY23 8.5 in Q4 FY23, along with Q4 FY23 4.8 plant maintenance, and
Mt planned wash plant maintenance Mt a focus on additional
at Blackwater and Goonyella, stripping volumes which
a higher strip ratio, resulted in higher strip
a longer than planned ratios .
longwall move at Broadmeadow
and an unexpected stoppage
at Peak Downs resulted
in lower volumes at
BMA.
Nickel
20.2 kt D Lower volumes in line
own 8% with higher stripping
Q4 FY23 22.0 activity at Mt Keith
kt in the quarter.
Further information in Appendix 1
Detailed production and sales information for all operations in Appendix 2
----------------------------------------------------------------------------
The following footnotes apply to this Operational Review:
1 Based on provisional, unaudited estimates. Prices exclude
sales from equity accounted investments, third party product and
internal sales, and represent the weighted average of various sales
terms (for example: FOB, CIF and CFR), unless otherwise noted.
Includes the impact of provisional pricing and finalisation
adjustments.
2 Does not include sales from assets acquired through the purchase of OZL.
3 Export sales only. Includes thermal coal sales from metallurgical coal mines.
4
BHP | Operational review for the quarter ended 30 September
2023
Appendix 1
Average realised prices(1)
Q1 FY24 v
Q1 FY24 H2 FY23 H2 FY23
--------------------------------------- ------- ------- ---------
Copper (US$/lb)(2) 3.63 3.80 (4%)
Iron ore (US$/wmt, FOB) 98.04 99.88 (2%)
Metallurgical coal (US$/t) 237.07 273.08 (13%)
Hard coking coal (US$/t)(3) 242.52 276.22 (12%)
Weak coking coal (US$/t)(3) 190.74 250.38 (24%)
Thermal coal (US$/t)(4) 125.66 157.21 (20%)
Nickel metal (US$/t) 20,354 23,652 (14%)
1 Based on provisional, unaudited estimates. Prices exclude
sales from equity accounted investments, third party product and
internal sales, and represent the weighted average of various sales
terms (for example: FOB, CIF and CFR), unless otherwise noted.
Includes the impact of provisional pricing and finalisation
adjustments.
2 Does not include sales from assets acquired through the purchase of OZL.
3 Hard coking coal (HCC) refers generally to those metallurgical
coals with a Coke Strength after Reaction (CSR) of 35 and above,
which includes coals across the spectrum from Premium Coking to
Semi Hard Coking coals, while weak coking coal (WCC) refers
generally to those metallurgical coals with a CSR below 35.
4 Export sales only. Includes thermal coal sales from metallurgical coal mines.
Current year unit cost guidance
Current
FY24 guidance(1)
------------------------------- ---------------- ---------
Escondida unit cost (US$/lb)(2) 1.40 - 1.70 Unchanged
Spence unit cost (US$/lb) 2.00 - 2.30 Unchanged
WAIO unit cost (US$/t) 17.40 - 18.90 Unchanged
BMA unit cost (US$/t) 95 - 105 Unchanged
1 FY24 unit cost guidance is based on exchange rates of AUD/USD 0.67 and USD/CLP 810.
2 Escondida unit costs for FY24 onwards exclude revenue-based government royalties.
Medium term guidance
Production Unit cost
guidance guidance(1)
----------------- ---------------- ---------------------
Escondida(2) 1,200 - 1,300 kt US$1.30 - $1.60/lb(3)
Spence(4) 250 kt
WAIO (100% basis) >305 Mt <US$17/t
1 Medium term unit cost guidance is based on exchange rates of
AUD/USD 0.67 and USD/CLP 810.
2 Medium term refers to FY25 and FY26.
3 Escondida unit costs for FY24 onwards exclude revenue-based government royalties.
4 Average of 250 ktpa over five years on the basis that
remediation of the previously identified TSF anomalies does not
impact operations.
Major projects
First
Capital production
Project and expenditure target
Commodity ownership Project scope / capacity US$M date Progress
--------- -------------- --------------------------------------------------------------------------------------- ----------- ---------- -----------------------
Potash Jansen Stage 1 Design, engineering and construction of an underground potash mine and surface infrastr 5,723 End-CY26 Project is 32% complete
ucture,
with capacity to produce 4.35 Mtpa.
(Canada)
100%
Exploration
Minerals exploration and evaluation expenditure was US$105 m for
Q1 FY24, of which US$93 m was expensed.
5
BHP | Operational Review for the quarter ended 30 September
2023
Appendix 2
Production Sales
----------------------------------------------------------------- ------------------------------------------------------------------
Quarter ended Year to date Quarter ended Year to date
----------------------------------------- ---------------------- ----------------------------------------- -----------------------
Sep Dec Mar Jun Sep Sep Sep Var Sep Dec Mar Jun Sep Sep Sep Var
2022 2022 2023 2023 2023 2023 2022 % 2022 2022 2023 2023 2023 2023 2022 %
------ ------ ------- ------- ------- ------- ------ ---- ------ ------ ------- ------- ------- ------- ------ -----
Group Production and Sales Summary
By Commodity
Metals production is payable metal unless otherwise noted
Throughout this report figures in italics indicate that this
figure has been adjusted since it was previously reported.
Payable metal
in
Copper concentrate kt 268.8 276.0 262.4 310.7 319.0 319.0 268.8 19% 260.3 272.7 268.4 323.1 298.0 298.0 260.3 14%
Escondida kt 203.1 208.3 200.8 220.5 221.3 221.3 203.1 9% 196.7 216.0 197.3 220.3 209.5 209.5 196.7 7%
Pampa Norte kt 28.6 32.5 32.0 32.2 38.8 38.8 28.6 36% 26.0 22.0 38.7 38.6 31.3 31.3 26.0 20%
Copper South
Australia kt 19.9 25.2 25.2 27.6 22.2 22.2
Antamina kt 37.1 35.2 29.6 36.5 32.5 32.5 37.1 (12)% 37.6 34.7 32.4 34.5 32.8 32.8 37.6 (13)%
Carajás kt 1.6 1.2 1.2 2.1 2.2 2.2
Cathode kt 141.3 148.3 143.5 165.5 139.7 139.7 141.3 (1)% 134.2 155.9 130.3 179.9 131.9 131.9 134.2 (2)%
Escondida kt 49.6 49.7 50.8 72.5 52.0 52.0 49.6 5% 45.9 53.5 43.8 78.0 49.2 49.2 45.9 7%
Pampa Norte kt 42.0 44.2 41.0 36.3 39.5 39.5 42.0 (6)% 42.4 45.6 36.0 42.4 36.6 36.6 42.4 (14)%
Copper South
Australia kt 49.7 54.4 51.7 56.7 48.2 48.2 49.7 (3)% 45.9 56.8 50.5 59.5 46.1 46.1 45.9-
Total kt 410.1 424.3 405.9 476.2 458.7 458.7 410.1 12% 394.5 428.6 398.7 503.0 429.9 429.9 394.5 9%
Payable metal
in
Lead concentrate t 228 114 169 146 96 96 228 (58)% 130 91 181 143 154 154 130 18%
Antamina t 228 114 169 146 96 96 228 (58)% 130 91 181 143 154 154 130 18%
Payable metal
in
Zinc concentrate t 32,685 29,929 23,612 38,822 35,669 35,669 32,685 9% 33,820 29,127 25,851 37,629 33,912 33,912 33,820-
Antamina t 32,685 29,929 23,612 38,822 35,669 35,669 32,685 9% 33,820 29,127 25,851 37,629 33,912 33,912 33,820-
Payable metal
in troy
Gold concentrate oz 43,757 52,277 57,106 96,655 89,024 89,024 43,757 115% 43,757 52,277 57,106 108,552 87,703 87,703 43,757 100%
Escondida troy oz 38,236 48,402 48,954 53,503 48,063 48,063 38,236 26% 38,236 48,402 48,954 53,503 48,063 48,063 38,236 26%
Pampa Norte troy oz 5,521 3,875 8,152 9,263 3,931 3,931 5,521 (29)% 5,521 3,875 8,152 9,263 3,931 3,931 5,521 (29)%
Copper South
Australia troy oz 32,736 36,228 36,228 44,098 34,176 34,176
Carajás troy oz 1,153 802 802 1,688 1,533 1,533
troy
Refined gold oz 47,184 43,280 49,086 46,479 53,028 53,028 47,184 12% 49,542 41,900 47,300 49,182 54,036 54,036 49,542 9%
Copper South
Australia troy oz 47,184 43,280 49,086 46,479 53,028 53,028 47,184 12% 49,542 41,900 47,300 49,182 54,036 54,036 49,542 9%
troy
Total oz 90,941 95,557 106,192 143,134 142,052 142,052 90,941 62% 93,299 94,177 104,406 157,734 141,739 141,739 93,299 52%
Payable metal
in troy
Silver concentrate koz 2,652 2,678 2,556 2,592 2,582 2,582 2,652 (2)% 2,477 2,605 2,523 2,409 2,527 2,527 2,477 2%
Escondida troy koz 1,210 1,510 1,346 1,008 1,168 1,168 1,210 (3)% 1,210 1,510 1,346 1,008 1,168 1,168 1,210 (3)%
Pampa Norte troy koz 252 245 409 412 356 356 252 41% 252 245 409 412 356 356 252 41%
Copper South
Australia troy koz 201 260 271 242 258 258
Antamina troy koz 1,190 923 801 971 798 798 1,190 (33)% 1,015 850 768 747 745 745 1,015 (27)%
Refined troy
silver koz 295 261 277 256 261 261 295 (12)% 320 233 307 270 219 219 320 (32)%
Copper South
Australia troy koz 295 261 277 256 260 260 295 (12)% 320 233 307 270 219 219 320 (32)%
troy
Total koz 2,947 2,939 2,833 2,848 2,843 2,843 2,947 (3)% 2,797 2,838 2,830 2,679 2,746 5,273 5,274-
Payable metal
in
Uranium concentrate t 817 943 833 813 825 825 817 1% 272 1,127 683 1,275 481 481 272 77%
Copper South
Australia t 817 943 833 813 825 825 817 1% 272 1,127 683 1,275 481 481 272 77%
Payable metal
in
Molybdenum concentrate t 296 564 636 666 612 612 296 107% 275 514 789 594 564 564 275 105%
Pampa Norte t 34 216 407 333 329 329 34 868% 25 216 492 367 303 303 25 1,112%
Antamina t 262 348 229 333 283 283 262 8% 250 298 297 227 261 261 250 4%
Western
Australia
Iron Iron Ore
Ore (WAIO) kt 63,925 65,807 58,725 64,074 62,004 62,004 63,925 (3)% 62,257 64,496 59,204 62,926 64,180 64,180 62,257 3%
Samarco kt 1,148 1,095 1,048 1,221 1,231.0 1,231.0 1,148 7% 1,146 1,097 1,111 1,160 1,136 1,136 1,146 (1)%
Total kt 65,073 66,902 59,773 65,295 63,235 63,235 65,073 (3)% 63,403 65,593 60,315 64,086 65,316 65,316 63,403 3%
BHP
Mitsubishi
Metallurgical Alliance
coal(1) (BMA) kt 6,662 6,952 6,929 8,477 5,601 5,601 6,662 (16)% 6,482 7,027 6,186 8,876 5,325 5,325 6,482 (18)%
Energy NSW Energy
coal Coal (NSWEC) kt 2,622 2,851 3,934 4,765 3,613 3,613 2,622 38% 2,441 2,862 3,667 4,894 3,307 3,307 2,441 35%
Nickel Nickel West kt 20.7 17.7 19.6 22.0 20.2 20.2 20.7 (2)% 20.7 18.4 19.6 23.4 18.9 18.9 20.7 (9)%
Cobalt Nickel West t 238 93 175 246 192 192 238 (19)% 238 93 175 246 192 192 238 (19)%
1 Includes BMA thermal coal sales.
7
BHP | Operational Review for the quarter ended 30 September
2023
Production Sales
----------------------------------------------------------------------- ----------------------------------------------------------------
Quarter ended Year to date Quarter ended Year to date
------------------------------------------ -------------------------- --------------------------------------- ----------------------
Sep Dec Mar Jun Sep Sep Sep Var Sep Dec Mar Jun Sep Sep Sep Var
2022 2022 2023 2023 2023 2023 2022 % 2022 2022 2023 2023 2023 2023 2022 %
------- ------- ------- ------ ------- ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ -----
Production and Sales
By Asset
Copper
Metals production is payable metal unless otherwise noted
Escondida,
Chile BHP interest
(1) 57.5%
Material mined kt 110,248 101,987 106,170 95,451 87,462 87,462 110,248 (21)%
Concentrator
throughput kt 32,894 33,911 33,309 30,750 33,332 33,332 32,894 1%
Average copper
grade - concentrator % 0.83% 0.76% 0.78% 0.93% 0.85% 0.85% 0.83% 2%
Production
ex mill kt 214.6 212.8 210.0 228.9 225.7 225.7 214.6 5%
Payable copper kt 203.1 208.3 200.8 220.5 221.3 221.3 203.1 9% 196.7 216.0 197.3 220.3 209.5 209.5 196.7 7%
Copper cathode
(EW) kt 49.6 49.7 50.8 72.5 52.0 52.0 49.6 5% 45.9 53.5 43.8 78.0 49.2 49.2 45.9 7%
Oxide leach kt 15.2 17.6 14.7 29.3 17.5 17.5 15.2 15%
Sulphide leach kt 34.4 32.1 36.1 43.2 34.5 34.5 34.4-
Total copper kt 252.7 258.0 251.6 293.0 273.3 273.3 252.7 8% 242.6 269.5 241.1 298.3 258.7 258.7 242.6 7%
Payable gold
concentrate troy oz 38,236 48,402 48,954 53,503 48,063 48,063 38,236 26% 38,236 48,402 48,954 53,503 48,063 48,063 38,236 26%
Payable silver
concentrate troy koz 1,210 1,510 1,346 1,008 1,168 1,168 1,210 (3)% 1,210 1,510 1,346 1,008 1,168 1,168 1,210 (3)%
1 Shown on a 100%
basis.
Pampa BHP
Norte, interest
Chile 100%
Payable metal
in
Copper concentrate kt 28.6 32.5 32.0 32.2 38.8 38.8 28.6 36% 26.0 22.0 38.7 38.6 31.3 31.3 26.0 20%
Cathode kt 42.0 44.2 41.0 36.3 39.5 39.5 42.0 (6)% 42.4 45.6 36.0 42.4 36.6 36.6 42.4 (14)%
Total copper kt 70.6 76.7 73.0 68.5 78.3 78.3 70.6 11% 68.4 67.6 74.7 81.0 67.9 67.9 68.4 (1)%
Gold troy oz 5,521 3,875 8,152 9,263 3,931 3,931 5,521 (29)% 5,521 3,875 8,152 9,263 3,931 3,931 5,521 (29)%
Silver troy koz 252 245 409 412 356 356 252 41% 252 245 409 412 356 356 252 41%
Molybdenum t 34 216 407 333 329 329 34 868% 25 216 492 367 303 303 25 1,112%
Cerro
Colorado
Material mined kt 3,179 583 172 145 - - 3,179 (100)%
Ore stacked kt 4,373 4,119 3,567 3,928 154 154 4,373 (96)%
Average copper
grade - stacked % 0.54% 0.56% 0.57% 0.53% 0.58% 0.58% 0.54% 7%
Copper cathode
(EW) kt 12.8 12.2 12.0 12.2 9.5 9.5 12.8 (26)% 13.3 12.2 10.9 14.1 8.8 8.8 13.3 (34)%
Spence
Material mined kt 26,956 26,980 24,858 25,622 27,654 27,654 26,956 3%
Ore stacked kt 5,577 5,155 4,947 5,625 5,113 5,113 5,577 (8)%
Average copper
grade - stacked % 0.70% 0.66% 0.60% 0.58% 0.60% 0.60% 0.70% (14)%
Concentrator
throughput kt 6,433 7,602 7,290 6,927 8,473 8,473 6,433 32%
Average copper
grade - concentrator % 0.63% 0.60% 0.61% 0.61% 0.64% 0.64% 0.63% 2%
Payable copper kt 28.6 32.5 32.0 32.2 38.8 38.8 28.6 36% 26.0 22.0 38.7 38.6 31.3 31.3 26.0 20%
Copper cathode
(EW) kt 29.2 32.0 29.0 24.1 30.0 30.0 29.2 3% 29.1 33.4 25.1 28.3 27.8 27.8 29.1 (4)%
Total copper kt 57.8 64.5 61.0 56.3 68.8 68.8 57.8 19% 55.1 55.4 63.8 66.9 59.1 59.1 55.1 7%
Payable gold
concentrate troy oz 5,521 3,875 8,152 9,263 3,931 3,931 5,521 (29)% 5,521 3,875 8,152 9,263 3,931 3,931 5,521 (29)%
Payable silver
concentrate troy koz 252 245 409 412 356 356 252 41% 252 245 409 412 356 356 252 41%
Payable molybdenum t 34 216 407 333 329 329 34 868% 25 216 492 367 303 303 25 1,112%
8
BHP | Operational Review for the quarter ended 30 September
2023
Production Sales
------------------------------------------------------------- -------------------------------------------------------------
Quarter ended Year to date Quarter ended Year to date
-------------------------------------- --------------------- -------------------------------------- ---------------------
Sep Dec Mar Jun Sep Sep Sep Var Sep Dec Mar Jun Sep Sep Sep Var
2022 2022 2023 2023 2023 2023 2022 % 2022 2022 2023 2023 2023 2023 2022 %
------ ------ ------ ------ ------ ------ ------ ---- ------ ------ ------ ------ ------ ------ ------ ----
Copper (continued)
Copper South Australia, Australia
BHP interest 100%
Payable
metal in
Copper concentrate kt 19.9 26.2 26.2 27.6 22.2 22.2
Cathode kt 49.7 54.4 51.7 56.7 48.2 48.2 49.7 (3)% 45.9 56.8 50.5 59.5 46.1 46.1 45.9-
Total copper kt 49.7 54.4 51.7 76.6 74.4 74.4 49.7 50% 45.9 56.8 50.5 87.1 68.3 68.3 45.9 49%
Payable metal in concentrate
transfer to Olympic
Dam(1) kt (1.0) (1.0)
Net copper 49.7 54.4 51.7 76.6 73.4 73.4 49.7 48%
Payable
metal in troy
Gold concentrate oz 32,736 41,424 41,424 44,098 34,176 34,176
troy
Refined gold oz 47,184 43,280 49,086 46,479 53,028 53,028 47,184 12% 49,542 41,900 47,300 49,182 54,036 54,036 49,542 9%
troy
Total gold oz 47,184 43,280 49,086 79,215 94,452 94,452 47,184 100% 49,542 41,900 47,300 93,280 88,212 88,212 49,542 78%
Payable
metal in
concentrate
transfer to
Olympic troy
Dam(1) oz
troy
Net gold oz 47,184 43,280 49,086 79,215 94,452 94,452 47,184 100%
Payable
metal in troy
Silver concentrate koz 201 271 271 242 258 258
troy
Refined silver koz 295 261 277 256 261 261 295 (12)% 320 233 307 270 219 219 320 (32)%
troy
Total silver koz 295 261 277 457 532 532 295 80% 320 233 307 512 477 477 320 49%
Payable
metal in
concentrate
transfer to
Olympic troy
Dam(1) koz
troy
Net silver koz 295 261 277 457 532 532 295 80%
Uranium t 817 943 833 813 825 825 817 1% 272 1,127 683 1,275 481 481 272 77%
Olympic
Dam
Material mined kt 2,412 2,264 2,317 2,356 2,639 2,639 2,412 9%
Ore milled kt 2,570 2,687 2,433 2,755 2,596 2,596 2,570 1%
Average copper grade % 2.13% 2.08% 1.95% 2.00% 1.96% 1.96% 2.13% (8)%
Average uranium grade kg/t 0.58 0.58 0.59 0.55 0.56 0.56 0.58 (3)%
Copper cathode (ER
and EW) kt 49.7 54.4 51.7 56.7 48.2 48.2 49.7 (3)% 45.9 56.8 50.5 59.5 46.1 46.1 45.9-
Payable uranium t 817 943 833 813 825 825 817 1% 272 1,127 683 1,275 481 481 272 77%
troy
Refined gold oz 47,184 43,280 49,086 46,479 53,028 53,028 47,184 12% 49,542 41,900 47,300 49,182 54,036 54,036 49,542 9%
troy
Refined silver koz 295 261 277 256 261 261 295 (12)% 320 233 307 270 219 219 320 (32)%
Prominent
Hill(2)
Material mined kt 661 1,110 1,110
Ore milled kt 1,228 1,652 1,652
Average copper grade % 0.77% 0.85% 0.85%
Production ex mill kt 16.3 23.8 23.8
Payable copper kt 8.2 12.1 12.1 15.7 8.4 8.4
troy
Payable gold concentrate oz 17,432 22,031 22,031 28,856 15,524 15,524
troy
Payable silver concentrate koz 44 63 63 87 53 53
Carrapateena(2)
Material mined kt 880 969 969
Ore milled kt 856 1,230 1,230
Average copper grade % 1.52% 1.29% 1.29%
Production ex mill kt 30.1 37.6 37.6
Payable copper kt 11.7 14.1 14.1 11.9 13.8 13.8
troy
Payable gold concentrate oz 15,304 19,393 19,393 15,242 18,652 18,652
troy
Payable silver concentrate koz 157 208 208 155 205 205
1 Excludes prior year production previously reported and transferred during the period.
2 Production and sales included from 1 May 2023, following the acquisition of OZL on 2 May 2023.
9
BHP | Operational Review for the quarter ended 30 September
2023
Production Sales
------------------------------------------------------------- -------------------------------------------------------------
Quarter ended Year to date Quarter ended Year to date
-------------------------------------- --------------------- -------------------------------------- ---------------------
Sep Dec Mar Jun Sep Sep Sep Var Sep Dec Mar Jun Sep Sep Sep Var
2022 2022 2023 2023 2023 2023 2022 % 2022 2022 2023 2023 2023 2023 2022 %
------ ------ ------ ------ ------ ------ ------ ---- ------ ------ ------ ------ ------ ------ ------ ----
Copper (continued)
Antamina, Peru BHP interest 33.75%
Material
mined kt 63,865 68,750 57,939 62,894 63,310 63,310 63,865 (1)%
Concentrator
throughput kt 13,858 14,272 12,349 13,897 14,246 14,246 13,858 3%
Average head
grades
Average head
grade - copper % 0.93% 0.86% 0.88% 0.88% 0.83% 0.83% 0.93% (11)%
Average head
grade - zinc % 1.09% 0.99% 1.06% 1.25% 1.17% 1.17% 1.09% 7%
Payable copper kt 37.1 35.2 29.6 36.5 32.5 32.5 37.1 (12)% 37.6 34.7 32.4 34.5 32.8 32.8 37.6 (13)%
Payable zinc t 32,685 29,929 23,612 38,822 35,669 35,669 32,685 9% 33,820 29,127 25,851 37,629 33,912 33,912 33,820-
Payable silver troy koz 1,190 923 801 971 798 798 1,190 (33)% 1,015 850 768 747 745 745 1,015 (27)%
Payable lead t 228 114 169 146 96 96 228 (58)% 130 91 181 143 154 154 130 18%
Payable
molybdenum t 262 348 229 333 283 283 262 8% 250 298 297 227 261 261 250 4%
BHP
Carajás, interest
Brazil(1) 100%
Material
mined kt 103 74 74
Ore milled kt 100 70 70
Average copper
grade % 1.71% 1.91% 1.91%
Production
ex mill kt 6.6 5.2 5.2
Payable copper kt 1.6 1.2 1.2 2.1 2.2 2.2
Payable gold
concentrate troy oz 1,153 802 802 1,688 1,533 1,533
1 Production and sales included from 1 May 2023, following the acquisition
of OZL on 2 May 2023.
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
BHP
interest
WAIO, Australia 85%
Newman kt 14,053 16,172 11,925 14,795 13,234 13,234 14,053 (6)%
Area C Joint
Venture kt 26,971 26,302 25,284 28,818 25,804 25,804 26,971 (4)%
Yandi Joint
Venture kt 5,497 5,613 4,941 5,359 3,150 3,150 5,497 (43)%
Jimblebar(1) kt 17,404 17,720 16,575 15,102 19,816 19,816 17,404 14%
Total kt 63,925 65,807 58,725 64,074 62,004 62,004 63,925 (3)%
Total (100%) kt 72,135 74,292 66,163 72,717 69,448 69,448 72,135 (4)%
Lump kt 19,561 20,375 18,021 20,022 20,969 20,969 19,561 7%
Fines kt 42,696 44,121 41,183 42,904 43,211 43,211 42,696 1%
Total kt 62,257 64,496 59,204 62,926 64,180 64,180 62,257 3%
Total (100%) kt 70,276 72,688 66,580 71,172 71,748 71,748 70,276 2%
1 Shown on a 100% basis. BHP interest in saleable production is
85%.
BHP
interest
Samarco, Brazil 50%
Total kt 1,148 1,095 1,048 1,221 1,231 1,231 1,148 7% 1,146 1,097 1,111 1,160 1,136 1,136 1,146 (1)%
10
BHP | Operational Review for the quarter ended 30 September
2023
Production Sales
------------------------------------------------------------- -------------------------------------------------------------
Quarter ended Year to date Quarter ended Year to date
-------------------------------------- --------------------- -------------------------------------- ---------------------
Sep Dec Mar Jun Sep Sep Sep Var Sep Dec Mar Jun Sep Sep Sep Var
2022 2022 2023 2023 2023 2023 2022 % 2022 2022 2023 2023 2023 2023 2022 %
------ ------ ------ ------ ------ ------ ------ ---- ------ ------ ------ ------ ------ ------ ------ ----
Coal
Coal production is reported on the basis of saleable product.
BHP
BMA, interest
Australia 50%
Blackwater kt 1,283 1,160 1,107 1,505 1,295 1,295 1,283 1%
Goonyella kt 1,780 1,997 2,185 2,348 827 827 1,780 (54)%
Peak Downs kt 1,325 1,480 1,251 1,424 1,121 1,121 1,325 (15)%
Saraji kt 1,020 1,243 1,007 1,326 1,010 1,010 1,020 (1)%
Daunia kt 324 441 607 617 545 545 324 68%
Caval Ridge kt 930 631 772 1,257 803 803 930 (14)%
Total(1) kt 6,662 6,952 6,929 8,477 5,601 5,601 6,662 (16)%
Total (100%) kt 13,324 13,904 13,858 16,954 11,202 11,202 13,324 (16)%
Coking coal kt 5,615 5,872 5,372 7,448 4,497 4,497 5,615 (20)%
Weak coking
coal kt 600 727 710 1,064 529 529 600 (12)%
Thermal coal kt 267 428 104 364 299 299 267 12%
Total kt 6,482 7,027 6,186 8,876 5,325 5,325 6,482 (18)%
Total (100%) kt 12,964 14,054 12,372 17,752 10,650 10,650 12,964 (18)%
1 Production figures
include some thermal
coal.
BHP
NSWEC, interest
Australia 100%
Export kt 2,441 2,862 3,667 4,693 3,087 3,087 2,441 26%
Domestic(1) kt 201 220 220
Total kt 2,622 2,851 3,934 4,765 3,613 3,613 2,622 38% 2,441 2,862 3,667 4,894 3,307 3,307 2,441 35%
1 Domestic sales are made under the NSW Government Coal Market Price
Emergency (Directions for Coal Mines) Notice 2023.
Other
Nickel production
is reported on the
basis of saleable
product.
BHP
interest
Nickel West, Australia 100%
Mt Nickel
Keith concentrate kt 42.6 39.6 38.8 44.5 42.7 42.7 42.6-
Average nickel
grade % 17.0 15.5 16.5 16.2 16.7 16.7 17.0 (2)%
Nickel
Leinster concentrate kt 66.8 47.9 68.4 71.1 66.0 66.0 66.8 (1)%
Average nickel
grade % 9.9 9.4 8.6 8.5 8.1 8.1 9.9 (18)%
Refined nickel(1) kt 17.5 10.8 13.2 13.1 13.8 13.8 17.5 (21)% 18.1 10.2 13.0 13.1 13.2 13.2 18.1 (27)%
Nickel sulphate(2) kt 1.2 0.4 0.9 0.7 0.9 0.9 1.2 (25)% 0.8 0.5 0.9 0.8 0.8 0.8 0.8-
Intermediates
and nickel
by-products(3) kt 2.0 6.5 5.5 8.2 5.5 5.5 2.0 175% 1.8 7.7 5.7 9.5 4.9 4.9 1.8 172%
Total nickel kt 20.7 17.7 19.6 22.0 20.2 20.2 20.7 (2)% 20.7 18.4 19.6 23.4 18.9 18.9 20.7 (9)%
Cobalt by-products t 238 93 175 246 192 192 238 (19)% 238 93 175 246 192 192 238 (19)%
1 High quality refined nickel metal, including briquettes and
powder.
2 Nickel sulphate crystals produced from nickel powder.
3 Nickel contained in matte and by-product streams.
11
BHP | Operational review for the quarter ended 30 September
2023
Variance analysis relates to the relative performance of BHP
and/or its operations during the three months ended September 2023
compared with the three months ended September 2022, unless
otherwise noted. Production volumes, sales volumes and capital and
exploration expenditure from subsidiaries are reported on a 100%
basis; production and sales volumes from equity accounted
investments and other operations are reported on a proportionate
consolidation basis. Numbers presented may not add up precisely to
the totals provided due to rounding.
The following abbreviations may have be en used throughout this
report: billion tonnes (Bt); cost and freight (CFR); cost,
insurance and freight (CIF), carbon dioxide equivalent (CO2-e), dry
metric tonne unit (dmtu); free on board (FOB); giga litres (GL);
greenhouse gas (GHG); grams per tonne (g/t); high-potential injury
(HPI); kilograms per tonne (kg/t); kilometre (km); million ounces
per annum (Mozpa); million pounds (Mlb); million tonnes (Mt);
million tonnes per annum (Mtpa); ounces (oz); OZ Minerals Limited
(OZL); pounds (lb); thousand ounces (koz); thousand ounces per
annum (kozpa); thousand tonnes (kt); thousand tonnes per annum
(ktpa); thousand tonnes per day (ktpd); tonnes (t); total
recordable injury frequency (TRIF); wet metric tonnes (wmt); and
year to date (YTD).
In this release, the terms 'BHP', the 'Group', 'BHP Group',
'we', 'us', 'our' and 'ourselves' are used to refer to BHP Group
Limited and, except where the context otherwise requires, our
subsidiaries. Refer to note 30 'Subsidiaries' of the Financial
Statements in BHP's 30 June 2023 Annual Report for a list of our
significant subsidiaries. Those terms do not include non-operated
assets. Notwithstanding that this release may include production,
financial and other information from non-operated assets,
non-operated assets are not included in the BHP Group and, as a
result, statements regarding our operations, assets and values
apply only to our operated assets unless stated otherwise. Our
non-operated assets include Antamina and Samarco. BHP Group
cautions against undue reliance on any forward-looking statement or
guidance in this release. These forward-looking statements are
based on information available as at the date of this release and
are not guarantees or predictions of future performance and involve
known and unknown risks, uncertainties and other factors, many of
which are beyond our control and which may cause actual results to
differ materially from those expressed in the statements contained
in this release.
Further information on BHP can be found at bhp.com
Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
Australia and Asia Australia and Asia
Gabrielle Notley John-Paul Santamaria
Tel: +61 3 9609 3830 Mobile: Mobile: +61 499 006 018
+61 411 071 715
Europe, Middle East and Africa
Europe, Middle East and Africa
James Bell
Neil Burrows Tel: +44 20 7802 7144 Mobile:
Tel: +44 20 7802 7484 Mobile: +44 7961 636 432
+44 7786 661 683
Americas
Americas
Monica Nettleton
Renata Fernandez Mobile: +1 416 518 6293
Mobile: +56 9 8229 5357
BHP Group Limited ABN 49 004
028 077
LEI WZE1WSENV6JSZFK0JC28
Registered in Australia
Registered Office: Level 18,
171 Collins Street
Melbourne Victoria 3000 Australia
Tel +61 1300 55 4757 Fax +61
3 9609 3015
BHP Group is headquartered in Australia
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12
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October 18, 2023 02:00 ET (06:00 GMT)
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