BHP Group Ltd (ASX: BHP) shares are in the spotlight on Wednesday after the mining giant released its third-quarter update.
At the time of writing, the Big Australian's shares are up 1.5% to $56.41.
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BHP share price pushes higher on quarterly update
Investors have been buying the company's shares after it released a solid production update for the three months ended 31 March.
According to the release, total copper production decreased 3% to 1,461kt. However, copper production guidance for FY 2026 remains unchanged at between 1,900kt and 2,000kt and is now expected to be in the upper half of the range.
This was achieved with an average realised price of US$5.47 per pound, which represents a 31% increase on the prior corresponding period.
Another positive is that management has lowered its cost guidance for the massive Escondida copper operation in Chile. It now expects unit costs to be US$1.00 to US$1.20 per pound (from US$1.20 to US$1.50 per pound).
Iron ore production increased 2% to 197Mt for the quarter. This was driven by record production from WAIO, which posted a 2% lift in average realised price to US$84.91 per tonne. As a result, iron ore production guidance for FY 2026 remains unchanged at between 258Mt and 269Mt.
Elsewhere, steelmaking coal production was up 1% and energy coal production lifted 11% for the third quarter.
Management commentary
Commenting on the quarter, BHP's outgoing CEO, Mike Henry, said:
BHP has delivered strong performance over the past nine months, including record material mined and concentrator throughput at Escondida and record production at WAIO. These results reflect the consistency of our operations and the strength of our high margin diversified portfolio in an evolving operating environment. In copper, strong performance at Escondida and Antamina supports our expectation of delivering production in the upper half of FY26 Group copper guidance.
We continue to make steady progress across our copper growth program, consistent with our focus on long-life, high-quality copper supply and disciplined capital allocation. During the quarter we submitted a permit application for Escondida's new concentrator, and Resolution Copper achieved a key milestone, allowing the project to progress drilling required to complete its mine design and feasibility study.
Henry also commented on the impacts of the war in the Middle East. He said:
Our centralised procurement capability and our low-cost operations have positioned us advantageously in the face of industry wide pressure on the cost of energy and consumables as a result of the conflict in the Middle East.
