The BHP Group Ltd (ASX: BHP) share price is on the move on Thursday.
At the time of writing, the mining giant's shares are up 0.5% to $36.29.
Why is the BHP share price rising?
Investors have been buying the Big Australian's shares this morning following the release of its third quarter update.
For the three months ended 31 March, BHP reported copper production of 513.2kt. This is flat on the second quarter but up 10% on the prior corresponding period. It also means that copper production is still up 10% financial year to date to a record of 1,500.2kt.
BHP's iron ore production was down 7% quarter on quarter but flat over the prior corresponding period at 61.8Mt. This bring its iron ore production to 192.6Mt financial year to date, which is another record.
Commenting on the quarter, BHP's CEO, Mike Henry, said:
BHP's performance in FY25 to date demonstrates the resilience of our business, with our copper and iron ore operations achieving record nine-month production amid challenging operating and market conditions. Group copper production rose 10%, underpinned by a 20% increase in output at Escondida and strong performances at Spence and Copper SA. In our WA iron ore operations, we continue to demonstrate supply chain excellence from pit to port, and delivered record tonnes from the Central Pilbara hub.
One disappointment was that met coal production was down significantly (35%) year on year at 3.9Mt. However, this was due to heavy rainfall. Henry explained that it battled "the highest rainfall wet season in more than a decade."
What's next?
BHP's leader acknowledges that trade tariffs could be a challenge for the miner. But not from direct impacts, but from the potential impact they have on economic growth and ultimately demand for commodities.
Nevertheless, Henry believes the company is well-placed to benefit from a flight to quality and growth opportunities. He said:
Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant. China's ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook.
In the face of global volatility and policy uncertainty, BHP is poised to benefit from a flight to quality with tier one assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle.
Looking ahead, all guidance remains unchanged for FY 2025. However, positively, management advised that it is on track to deliver production in the upper half of the guidance ranges at Escondida, Pampa Norte and NSWEC, with Samarco expected at the upper end.
