BHP Group: Getting through difficult environment

About the author:

Author name:

By Adrian Prendergast

Job title:

Senior Analyst

Date posted:

21 July 2023, 10:00 AM

Sectors Covered:

Mining, Energy

• A strong 4Q’FY23 operational result from BHP Group (ASX:BHP), achieving FY23 production and unit cost guidance (ex-BMA which is expected to sit just above the range).
• WAIO iron ore production was ahead at 65.3mt (vs consensus 64.5mt) while shipments diverged from sales volumes with 4mt of ore stockpiled in China.
• OZL assets are off to a good start within the BHP portfolio, contributing to group numbers for 2 of the 3 months in the quarter.
• Working capital release of ~US$1bn will help boost 2H’FY23 operating cash flow.
• We maintain an Add rating on BHP with a revised (login to view) Target Price.

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