BHP Group Ltd (LSE:BHP, ASX:BHP) shares fell 3% to $58.73 after its FY27 copper production guidance came in below market expectations, despite June quarter output broadly matching forecasts.
The miner expects group copper production to decline 12% in FY27, mainly due to a previously flagged grade decline at Escondida. However, a conveyor failure at the Carrapateena mine in South Australia added further pressure.
RBC said Copper SA guidance of 290,000 to 320,000 tonnes was below consensus estimates of 333,000 tonnes, while Macquarie identified the Carrapateena disruption as the key contributor to the miss.
Morgans retained its Hold rating and $59.80 price target, describing BHP as a best-in-class global miner benefiting from a healthy resources cycle.
Coal provided the strongest result, with BMA production beating consensus by around 11%.
RBC maintained a $57 target, while Macquarie remained Neutral ahead of BHP’s August 18 results.
