BHP Group reported a 19% decline in copper production for the first quarter of fiscal 2027, citing lower ore grades, scheduled maintenance, and operational disruptions. The company produced 400,700 metric tons of copper in the three months ended September 30, down from 493,600 tons a year earlier. The drop was attributed to lower planned concentrator feed grades at its Escondida and Spence operations in Chile, severe weather, and a conveyor belt failure at Carrapateena in Australia.
Despite the setbacks in copper production, BHP saw a 4% increase in iron ore output, reaching 66.5 million metric tons from 64.1 million tons a year earlier. This growth was driven by strong performance across its Western Australia Iron Ore mines, rail, and port operations. The company also set quarterly production records at both its mines and port, despite significant planned maintenance.
BHP maintained its fiscal 2027 copper production forecast at 1.65 million to 1.8 million tons and iron ore guidance at 260 million to 272 million tons. The company noted that stronger commodity prices supported earnings, with its average realized copper price rising 53% year over year to $7.01 per pound. However, iron ore's average realized price fell 9% to $76.27 per wet metric ton.
Safety remained a key priority for BHP following fatal incidents at its Escondida and Peak Downs operations, with investigations underway. Sydney-listed BHP shares fell 2.1% to A$59.22 by 00:16 GMT.