BHP: Solid Iron Ore and Copper Sales
No-moat-rated BHP’s share of sales from its key Western Australian Iron Ore business in the fourth quarter of fiscal 2024 was roughly 67 million metric tons, up 7% on last year and 9% higher than the previous quarter. WAIO’s fiscal 2024 sales of 256 million metric tons were in line with our forecast and a 3% increase on last year, helped by its South Flank mine ramping up to full capacity of 80 million metric tons on a 100% basis during the year. Average prices of about USD 108 per metric ton for the year were also broadly aligned with our forecast. WAIO’s fiscal 2024 unit cash costs will likely be similar to our unchanged estimate of about USD 19 per metric ton when BHP reports its fiscal 2024 earnings in August. BHP’s iron ore business accounts for roughly 65% of our forecast fiscal 2024 EBITDA of about USD 30 billion.