All eyes will be on BHP Group Ltd (ASX: BHP) shares later this month.
That's because the mining giant will be releasing its fourth-quarter and full-year update on 20 July.
Ahead of the release of its update, let's see what analysts are expecting from the Big Australian.
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What is the market predicting from BHP?
According to a note out of Goldman Sachs, its analysts are expecting a solid quarterly performance from the mining giant.
In respect to iron ore, the broker has pencilled in shipments of 64.9Mt, up from 59.8Mt in the previous quarter. This estimate is also slightly ahead of consensus expectations for iron ore shipments of 64.5Mt. An average iron ore price of US$101 per tonne is expected by the broker.
As for copper, Goldman expects production to increase 14.3% quarter on quarter to 464kt. This is once again ahead of the consensus estimate, which currently sits at 458kt. Goldman expects BHP to have commanded an average copper price of US$4.10 per pound.
It is a similar story for met coal, with Goldman expecting a 20.2% increase in production to 8.3Mt, compared to the consensus estimate of 8Mt. This is expected to be achieved with an average realised met coal price of US$294 a tonne.
In summary:
- Iron ore shipments of 64.9Mt with a realised price of US$101 a tonne
- Copper production of 464kt with a realised price of US$4.10 per pound
- Met coal production of 8.3Mt with a realised price of US$294 a tonne
What about FY 2023?
Based on the above, Goldman expects the following for the full year:
- Iron ore shipments of 282Mt
- Copper production of 1,704kt
- Met coal production of 28.8Mt
Are BHP shares good value?
Goldman Sachs sees value in BHP shares at the current level.
It currently has a buy rating and $45.70 on them, which implies a potential upside of 6% from current levels.
This return stretches to approximately 10% if you include the fully franked dividends Goldman is forecasting.
