Full 2013 financial year production results from BHP Billiton have returned figures that make the company’s forecasting look conservative, despite the recent pallor of the major commodities markets.
BHP outstrips expectations
BHP’s Western Australia iron ore delivered a thirteenth consecutive annual production record.
BHP reported “A strong year of production as two of our major assets, Western Australia iron ore and Escondida, exceeded production guidance and annual records were achieved across seven operations and five commodities.”
Western Australia iron ore delivered a thirteenth consecutive annual production record as shipments in the June 2013 quarter increased to an annualised rate of 217mt (100% basis).
Escondida copper production increased by 28% to 1.1mt (100% basis) in the 2013 financial year as the average copper grade mined rose to 1.4% and milling rates improved.
Queensland Coal production in the June 2013 quarter increased by 54% from the prior corresponding period to an annualised rate of 61mt (100% basis).
Total copper production increased by 10% in the 2013 financial year to 1.2mt.
Total iron ore production increased by 7% in the 2013 financial year to 170mt.
Total metallurgical coal production increased by 13% in the 2013 financial year to 38mt.
Total energy coal production increased by 3% in the 2013 financial year to 73mt.
Deutsche Bank analyst Paul Young, quoted in the Australian Financial Review, said the overall performance was one of the strongest he had seen in years.
He predicted the strong results could lead to upward revisions of his full-year earnings forecasts.
“The fact that BHP beat expectations means our numbers will increase for the 2013 financial year. I also think BHP’s guidance for the 2014 financial year is conservative as well. There is potential for upward revisions for 2014 numbers as well.”
Deutsche Bank has forecast BHP to post a net profit after tax of $12bn for the full 2013, AFR reported.
Source from here