Save
PrintBHP Billiton has raised it 2013-14 iron ore production guidance after a stellar first quarter from its Pilbara-region mines, railways and port system in Western Australia.
The production performance reported this morning came with a strong signal the miner is becoming more inclined to send capital back to shareholders.
Iron ore production of 48.85 million tonnes (not including the share of minor jointventure partners) for the September quarter was up 23 per cent on a year ago and 2 per cent on the previous quarter.
Total iron ore sales from the company's WA operations were 53.56 million tonnes, slightly down from the previous quarter but up from expectations of 50 million tonnes that were hastily revised by analysts yesterday in the wake of port statistics and other miners quarterly performances that flagged BHP's strong quarter.
BHP raised its full-year iron ore production guidance from 207 million tonnes to 212 million tonnes.
"Our pursuit of productivity gains and operating excellence is already yielding strong results," chief executive Andrew Mackenzie said.
"There is no better example than in our iron ore business, where the deployment of mobile crushing units and the continued de-bottlenecking of the supply chain has underpinned a 5 million tonne increase in Western Australia Iron Ore’s production guidance."
Mr Mackenzie pointed to BHP's strengthening balance sheet thanks to recent cost savings and asset sales, hinting that capital returns could be on the agenda.
"With strong production growth and our overriding commitment to substantially increase free cash flow, we are well positioned to grow returns to our shareholders.”
BHP's first quarter petroleum production was 62.6 million barrels of oil equivalent, up 2 per cent from the previous quarter and at the higher ends of analysts’ expectations of 60 to 63 million barrels.
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Tell Us What You Think