BHP Billiton plc (LON:BLT), the world’s biggest miner, has cut its full-year production guidance for copper and metallurgical coal due to industrial action in Chile and to bad weather at mines in Australia over the past quarter.
In an operational review, the FTSE 100-listed firm also said it was progressing the sale of two key fields at its onshore US petroleum interests.
The moves come with the group under pressure from activist shareholder Elliott Management to decouple the US petroleum division from the company, one of a number of radical proposals to enhance shareholder value proposed by the hedge fund firm.
READ: BHP Billiton says Elliott “materially overstates” potential value of its proposals
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BHP Billiton said: "Divestment of non-core onshore US acreage is progressing, with the sales process well advanced for up to 50,000 acres of the southern Hawkville.”
It added that its Fayetteville field is under currently review and that it was "considering all options including divestment."
“Everything we do at BHP Billiton is designed to create value", says BHP Billiton boss
Andrew Mackenzie, BHP Billiton’s chief executive officer, said: “Everything we do at BHP Billiton is designed to create value for all of our shareholders, today and for the long term.
“We have fundamentally restructured BHP Billiton to increase returns.”
The miner cut its guidance for full-year copper output by 17% to a range of 1.33mln to 1.36mln tonnes following a six-week strike at the Escondida mine, the world's biggest copper mine, that ended in late March.
BHP Billiton’s partner in Escondida, Rio Tinto PLC (LON:RIO ) also cut its 2017 guidance for copper production in an operational update last week.
In early morning trading, BHP Billiton shares were 0.7%, or 8.0p higher at 1,214.5p.
In a note to clients, analysts at Shore Capital said: “BHP reported reductions in iron ore, coking coal and copper production for the March 2017 quarter, reflecting issues similar to that suffered by Rio Tinto during the period – but generally, not as severe.”
READ: Rio Tinto cuts full year copper guidance
BHP Billiton reduced its full-year guidance for coking coal guidance by 9% to 39mln to 41mln tonnes, while the firm also narrowed its iron ore output guidance to 268mln to 272mln tonnes.
The miner said shipments of Australian coking coal to Asian steel mills will be affected in the current quarter after a cyclone swept across eastern Australia in late March, cutting off rail lines to Pacific Ocean ports.
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