The BHP Group Ltd (ASX: BHP) share price is pushing higher on Tuesday morning.
At the time of writing, the mining giant's shares are up over 1% to $40.71.
This follows the release of the Big Australian's second quarter and first half update.
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BHP share price higher on Q2 update
Investors have been bidding the company's shares higher this morning after responding positively to its update.
Commenting on the half, BHP CEO Mike Henry said:
BHP delivered safe and reliable performance in the first half. Our flagship copper, iron ore and steelmaking coal assets delivered particularly strong production in the period.
Group copper production increased 10% to 987kt during the first half thanks largely to a 22% increase at Escondida. This key operation achieved a 10-year production record in the first half, primarily due to higher concentrator feed grade and higher recoveries as mining progressed into areas of higher-grade ore as planned. BHP averaged a realised copper price of US$3.99 per pound for the half (up 9%).
The consensus estimate was for copper production of 480kt for the quarter, bringing half year production to 956kt. Whereas BHP's copper production was well ahead of this at 511kt for the quarter and 987kt for the half.
Iron ore production increased 1% to 131Mt during the half with an average realised price of US$81.11 per wet metric tonne (down 22%).
This reflects a 1% lift in WAIO production to 128Mt and a 9% in Samarco production to 2.8Mt. Management advised that WAIO production increased thanks to continued strong supply chain performance. It achieved record volumes delivered from the Central Pilbara hub following the completion of the ramp up of South Flank in FY 2024 and a 9% increase in productive movement across the asset.
Finally, steelmaking coal production was down 21% to 8.9Mt for the half, energy coal production reduced by 1% to 7.4Mt, and nickel production was down 31% to 28kt. The latter reflects the miner's decision to transition the Nickel West supply chain into temporary suspension.
Management commentary
All of BHP's FY 2025 guidance except Copper SA has been reaffirmed with today's update. It notes:
We are on track to deliver production in the upper half of the FY25 guidance range at WAIO, BMA and NSWEC, as is Samarco. FY25 production guidance at all assets remains unchanged, with the exception of Copper SA, which has been lowered due to the impacts from the weather-related power outage. We maintain sector leading cost discipline and remain on track to deliver FY25 unit cost guidance across all assets.
Looking ahead, BHP's leader spoke positively about the future. Henry said:
We made further progress on our growth pathways in future facing commodities. In January, we completed the formation of Vicuña Corp. with Lundin Mining to advance the Filo del Sol and Josemaria projects in Argentina, which we consider to be one of the most significant global copper discoveries in decades. In Canada, our Jansen Stage 1 potash project is now 63% complete, with first production scheduled for late 2026, and we continue to execute Stage 2 in parallel.
We are well positioned to continue strong momentum into the second half with a number of assets now expected to deliver production in the upper half of their respective ranges, while maintaining tight cost control. BHP is in good shape and we have a clear pathway for growth.
The BHP share price remains down 11% since this time last year.
