The BHP Group Ltd (ASX: BHP) share price has been a strong performer on Wednesday.
In afternoon trade, the mining giant’s shares are up 3% to $46.97.
Why is the BHP share price charging higher?
Today’s rise by the BHP share price mirrors the gains made by the Big Australian’s NYSE listed shares overnight.
This may have been driven by positive sentiment in the materials sector and the mining giant’s presentation at Bank of America Securities 2022 Global Metals, Mining & Steel Conference last night.
What happened at the event?
At the event, BHP’s CEO, Mike Henry, spoke positively about the company’s performance in FY 2022 and its outlook.
Commenting on the company’s performance in FY 2022, he said:
Our Western Australian iron ore business remains on track to achieve full year production and unit cost guidance in spite of the state’s first COVID-19 wave. Amid record high prices, our Queensland metallurgical coal business delivered strong underlying performance. In copper, Spence production is increasing and the Olympic Dam smelter is performing strongly as it returns to full production following planned maintenance.
Looking ahead, Mr Henry remains confident that BHP is well-placed amid rising inflation and a potential economic downturn. He said:
Demand-led inflation though is expected to persist for some time which is a positive for commodity demand and pricing. There is obviously growing concern in some quarters of a further economic downturn.
However, BHP is very well positioned in this environment to continue to create value for our shareholders, partners, and the communities in which we operate. We bring together world-class resources; a strong balance sheet; and a differentiated operating capability, underpinned by our technical centres of excellence and our BHP Operating System.
All in all, this appears to have many believing that the recent weakness in the BHP share price could be a buying opportunity.