BHP Billiton share price rises as it goes full steam ahead with iron ore
BHP Billiton yesterday showed no signs of slowing down during the commodities rout, as it reported record iron ore production over the last quarter.
The FTSE 100 mining giant said iron ore production had risen by seven per cent year-on-year to a record 61m tonnes. Full-year guidance remains unchanged at 247m tonnes.
BHP, alongside its peers Rio Tinto, Anglo American and Vale, is particularly exposed to the iron ore price, which has been suffering like the rest of the commodities sector, due to a global slowdown in growth and a surplus in supply.
In response, the largest miners have ramped up iron ore output in order to push out smaller players through economies of scale.
BHP’s production across all parts of the business during the last quarter largely beat analysts’ estimates. The miner said earlier this month that it has no plans to cut output in the face of falling prices, just days after rival Glencore announced that it would slash its zinc output by a third.
“BHP Billiton remains on track to meet full-year production and cost guidance after a solid operational performance this quarter,” said chief executive Andrew Mackenzie.
BHP shares closed 0.3 per cent higher in London at 1,096.50p.