BHP share price slips amid reduced production targets

BHP reduced production guidance at its Escondida copper mine in Chile.

Key points
  • The BHP share price is in the red on Friday
  • Iron ore prices slipped 2% overnight
  • BHP released its quarterly activities report this morning

The BHP Group Ltd (ASX: BHP) share price is dropping on Friday, down 2.23% in early afternoon trading.

It's not just the BHP share price that's taken a slide, however. With the iron ore price down 1.9% overnight to US$115 per tonne, all the S&P/ASX 200 Index (ASX: XJO) iron ore miners are in the red at the time of writing.

But ASX 200 investors have a little more to consider with BHP today, after the miner released its quarterly update for the three months ending 31 March.

Mining workers in high vis vests and hard hats discuss plans for the mining site they are at as heavy equipment moves earth behind them, representing opportunities among ASX 200 shares as nominated by top broker Macquarie

Image source: Getty Images

How did the results compare to expectations?

The BHP share price could be under some extra pressure today after the company cut production guidance at several of its mines.

Production guidance at its Escondida copper mine in Chile was reduced to between 1,050 and 1,080 kt. Prior guidance forecast a production range of 1,080 to 1,180 kt.

Shipments of iron ore, BHP's biggest revenue generator, through Port Hedland also slipped over the quarter.

Iron ore shipments of 66.5 million tonnes fell short of consensus expectations of 67.9 million tonnes.

But the quarterly update was far from all bad news, which is why the BHP share price likely isn't faring any worse than its rivals today.

Despite some headwinds over the quarter, BHP maintained production guidance for the full 2023 financial year for iron ore, metallurgical coal, energy coal and copper.

"Last week, OZ Minerals shareholders voted overwhelmingly in favour of BHP's offer," BHP CEO Mike Henry noted on the copper front.

"We are now focused on the safe integration of the two businesses, and we look forward to building an internationally competitive copper business in South Australia."

Guidance for nickel production, however, was lowered slightly to between 75,000 and 85,000  tonnes. That's down from the previous forecast of 80,000 to 90,000 tonnes.

BHP also maintained its full-year unit cost guidance.

BHP share price snapshot

As you can see in the chart below, today's decline leaves the BHP share price right about where it commenced trading on 3 January.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Two people wearing hard hats talking with each other at a mine site, with two workers in the background.
Resources Shares

Fortescue vs PLS Group: Which ASX mining share is the better buy?

Which blue chip miner offers more upside—Fortescue or PLS Group? I dig into the numbers, dividends, and value to find…

Read more »

Stacked gold bricks.
Resources Shares

Regis Resources share price steady after Q1 production update

Regis Resources posts steady September quarter gold production and a strong cash position, with full results coming soon.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

This ASX copper company could rise almost 300%, Shaw & Partners says

A recently announced merger adds to the value of the up-and-coming developer.

Read more »

Resources Shares

Capricorn Metals delivers solid Q1 gold output and expansion milestone

Capricorn Metals delivered Q1 gold output of 31,218 ounces and finished its major expansion project on time and within budget.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

PLS Group vs Mineral Resources: ASX mining shares compared

Weighing up PLS Group vs Mineral Resources shares? I compare the fundamentals, recent performance and dividends, and pick my preferred…

Read more »

Two people wearing hard hats talking with each other at a mine site, with two workers in the background.
Resources Shares

Is the Fortescue share price a cheap buy?

I crunch the earnings forecasts to see whether this fallen mining share is actually good value.

Read more »

Three miners looking at a tablet.
Resources Shares

Regis Resources vs Fortescue: Which ASX miner is the better buy?

Regis Resources or Fortescue? I compare value, yield, and share price momentum to pick my preferred ASX mining stock now.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

Which junior ASX mining stock has surged 50% on big news?

A takeover deal has put a rocket under this company's shares.

Read more »