Australia: BHP's iron ore production falls 7% q-o-q in Q1CY'25

• Iron ore production guidance unchanged
  
  
• Sales edge down y-o-y in CY'25
  
  

BHP has announced its Q1CY'25 (January-March 2025) results, revealing that iron ore production from all its Western Australia mines totalled 67.8 million tonnes (mnt) on a 100% basis, down 7% from 73.1 mnt in Q4CY'24. On a y-o-y basis, production remained largely flat compared to the corresponding period last year. For Samarco, production was reported at 1.6 mnt, marking an 11% increase from the previous quarter.

However, the quarter witnessed a notable dip in production levels at WAIO due to operational disruptions caused by Tropical Cyclone Zelia and Tropical Storm Sean. The extreme weather conditions significantly affected mining activities and logistical operations, resulting in lower throughput and contributing to the q-o-q decline. Although WAIO demonstrated resilience in managing these challenges, the full impact of the cyclones was still reflected in reduced output figures for the period.

Iron ore sales fall

Total iron ore sales from the WAIO region on a 100% basis were recorded at 66.8 mnt in Q1CY'25, representing an 8% decrease from 72.6 mnt in Q4CY'24. On a y-o-y basis, sales were also down 4% compared to 69.8 mnt. Meanwhile, Samarco sales dropped slightly by 4% q-o-q, standing at 1.45 mnt in Q1CY'25 versus 1.51 mnt in the previous quarter.

Other highlights

Production guidance for FY'25 remains unchanged: BHP's FY'25 iron ore production guidance from Western Australia remains at 250-260 mnt (282-294 mnt on a 100% basis).

In Samarco the ramp-up is progressing ahead of schedule, with production capacity anticipated to reach approximately 16 mntpa of pellets (100% basis) by the end of FY'25. Guidance for FY'25 remains unchanged at 5-5.5 mnt, with output expected to reach the upper end of the range.

Samarco's production guidance for FY'25 remains steady at 5-5.5 mnt, with expectations leaning toward the upper end of the range.

Australian companies report their FY from 1st July-30th June.