Own BHP shares? Here's what to watch in October

There's a lot to watch next month if you own this mining giant's shares.

| More on:
A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As one of the most widely held shares on the Australian share market, readers will no doubt be keen to know what's on the cards for BHP Group Ltd (ASX: BHP) shares in October.

Let's take a look and find out.

What could impact BHP shares in October?

Given how much iron ore contributes to the mining giant's earnings, the price of the steel-making ingredient will be something to watch in October.

As things stand, the spot iron ore price is fetching US$120.84 a tonne. This is up strongly on BHP's average realised price of US$92.54 a tonne in FY 2023. It is even ahead of FY 2022's average of US$113.10 a tonne.

If iron ore prices remain above US$120 a tonne throughout October, it could force analysts to upgrade their earnings estimates. Especially the team at Goldman Sachs, which has based its estimates on an average iron ore price of US$94.00 a tonne.

What else is happening next month?

All eyes will be on BHP shares when the mining giant releases its quarterly update in the middle of the month. This will give investors a chance to see if the company is on course to achieve its guidance in FY 2024.

As a reminder, the company is guiding to the following for the year:

  • Copper production of 1,720kt to 1,910kt
  • Iron ore production of 254Mt to 264.5Mt
  • Met coal production of 28Mt to 31Mt
  • Energy coal production of 13Mt to 15Mt
  • Nickel production of 77kt to 87kt

For copper and iron ore, this will mean quarterly production of 430kt to 477.5kt and 63.5Mt to 66.13Mt, respectively.

It will also be worth keeping an eye on its costs, with management aiming for Escondida (copper) unit costs of US$1.40 to US$1.70 per pound and WAIO (iron ore) unit costs of US$17.40 to US$18.90 a tonne.

Here's hoping the Big Australian had a strong quarter.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Materials Shares

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Materials Shares

How much upside does Macquarie forecast for Pilbara Minerals shares?

Is the broker bullish or bearish on this lithium giant? Let's find out.

Read more »

Group of miners working at a coal mine with one smiling and holding up a piece of coal.
Materials Shares

How much upside does Macquarie project for South32 shares?

Is this miner's luck about to change?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Materials Shares

Down but not out: Can these ASX mining shares bounce back?

Here’s what one broker is predicting for Australia’s largest mining companies. 

Read more »

Broker analysing the share price.
Materials Shares

Buy, hold, or sell? Broker's verdict on 3 ASX 200 materials shares

Materials was one of four market sectors that weakened in overall value in FY25.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why is this ASX mining stock crashing 14% today?

Let's see what is causing investors to hit the sell button on Monday.

Read more »

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

$10,000 invested in BHP shares in FY25 is now worth

Did the Big Australian outperform or underperform during the last financial year?

Read more »

A male investor sits at his desk pondering at his laptop screen with a piece of paper in his hand.
Share Market News

Why did Macquarie just downgrade Liontown resources shares?

Here’s what the broker had to say about this materials company. 

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why did Macquarie downgrade Mineral Resources shares?

The broker is no longer bullish on this mining and mining services company.

Read more »