BHP's copper production guidance for FY2027 falls 12%

en.Wedoany.com Reported - BHP Group Ltd expects copper production in FY2027 to decline 12% year-on-year, below market expectations, primarily due to declining ore grades at its Escondida mine, while a conveyor belt failure at the Carrapateena mine in South Australia has further exacerbated production pressures. Although the miner's June quarter output was broadly in line with forecasts, the group's shares fell 3% to $58.73.

RBC noted that BHP's Copper SA production guidance of 290,000 to 320,000 tonnes was below the market consensus of 333,000 tonnes. Macquarie believes that the production disruption at the Carrapateena mine was the main factor behind the weaker-than-expected guidance.

Morgans maintained a "Hold" rating on BHP with a target price of $59.80, describing it as a top-tier global miner benefiting from a healthy resource cycle. In the coal business, BMA (BHP Mitsubishi Alliance) posted the strongest performance, with output exceeding market consensus by approximately 11%. RBC maintained a target price of $57, while Macquarie kept a "Neutral" rating ahead of BHP's results release on August 18.