The BHP Group Ltd (ASX: BHP) share price is trading slightly higher on Thursday morning.
At the time of writing, the mining giant's shares are up slightly to $43.64.
This follows the release of the Big Australian's first quarter update before the market open.
BHP share price higher on Q1 update
Investors have been buying the company's shares this morning after it reported a strong start to FY 2025.
According to the release, BHP reported iron ore production of 71.6Mt. While this was down 7% quarter on quarter it was up 3% on the prior corresponding period.
Management advised that its production increased as a result of strong supply chain performance with increased capacity unlocked by PDP1. In addition, higher volumes were delivered from the Central Pilbara hub (South Flank and Mining Area C) following the completion of South Flank ramp up in FY 2024.
In light of this, management has reiterated its FY 2025 iron ore production guidance of 250 Mt to 260 Mt (282 Mt to 294 Mt on a 100% basis).
As for copper, BHP reported a strong operational performance with production increasing 4% to 476.3kt. This was ahead of the consensus estimate (463kt) and driven by higher concentrator feed grades and recoveries at Escondida. This was in line with management's expectations and means that its FY 2025 copper production guidance remains unchanged at between 1,845 kt and 2,045 kt.
Elsewhere, energy coal production was up 2% on the prior corresponding period, whereas steelmaking coal and nickel production was down 19% and 3%, respectively.
Management commentary
BHP's CEO, Mike Henry, was pleased with BHP's strong start to the year. He said:
BHP had a strong start to the 2025 financial year, with production up across all major commodities for the quarter. Copper production was up 4% due to higher grade and recoveries at Escondida, and WAIO production was up 3% as we unlocked capacity by completing the debottlenecking work at the port. We are also seeing signs of stabilisation in our steelmaking coal business with production up 20% in the quarter, excluding the recently divested Blackwater and Daunia mines.
Henry also spoke about its growth outlook. The CEO adds:
We added to our copper growth prospects in the quarter, announcing a proposed 50/50 joint venture in Argentina with Lundin Mining to advance what we consider to be one of the most significant global copper discoveries in decades. In Canada, our Jansen Stage 1 potash project is 58% complete after a productive summer period with first production scheduled in around two years.
China has announced a series of monetary easing policies in an effort to support economic growth, and has indicated more significant fiscal stimulus is on the horizon. Upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.
The BHP share price is down 5% over the past 12 months.
