BHP Billiton Ltd (LON:BHP) shares rallied after the miner achieved record iron ore production for the year after higher-than-expected output in the fourth quarter.
Iron ore production in the fourth quarter ended June 30 rose 6% year-on-year to 72 million tonnes (mt). The total for the year came to 275mt, up 3% on last year.
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BHP set a higher production target for the 2019 financial year at 273-283mt.
Copper production for the final quarter was up 20% to 463,000 tonnes. For the year, copper production gained 32% to 1.75mt and is expected to reach between 1.68mt and 1.77mt in 2019.
Petroleum output fell 6% in the fourth quarter to 49 million barrels of oil equivalent (boe) and dropped 8% for the year to 192 million boe.
Metallurgical coal production in the fourth quarter came to a record 12mt, up 41% on the same period a year ago, while full year output increased 7% to 43mt. It sees output of between 42mt and 46mt in 2019.
“We have delivered a strong finish to the 2018 financial year with an 8% increase in annual production and record output at Western Australia Iron Ore, Queensland Coal and at our Spence copper mine in Chile,” BHP chief executive Andrew Mackenzie said.
“Good prices and our culture of continuous improvement give us positive momentum into the 2019 financial year."
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BHP also expects to take a US$650mln charge in its 2018 results following the 2015 Samarco dam disaster in Brazil that killed 19 people.
The company said its plan to divest its underperforming US shale oil and gas business is on track. It expects to announce more transactions in coming months for a complete exit by the end of 2018.
British oil giant BP PLC (LON:BP) has reportedly made an offer worth more than US$10bn for BHP’s onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins.
In morning trading, shares rose 2.5% to 1,664.