BHP Shares Up As It Maintains Annual Production Guidance
Shares of global iron ore mining giant BHP Billiton spiked by 25 cents, or 0.78 per cent, higher at $32.40 at 1035 AEST on Wednesday morning as it announced it will be maintaining its annual production guidance for the year.
BHP confirmed it will maintain the 183 million tonnes it has set as full-year production guidance for its Pilbara iron ore mines. It likewise did the same for its petroleum business, commiting to churn out 240 million barrels in the financial year to June 2013.
However, BHP was able to produce only 40.2 million tonnes of iron ore during the March quarter, 5 per cent below the previous quarter. Overall, it has churned out 122.2 million tonnes so far.
The world's third-largest iron ore producer, after Vale and Rio Tinto, targets to produce 60 million tonnes of iron ore this quarter, which could prompt annualised production to hit 200 million tonnes.
Total crude production, meantime, reached 55.4 million barrels of oil equivalent, a drop of 2 per cent from a year ago, brought by cyclones that hit the west coast of Australia coupled with maintenance and drilling delays at wells in the Gulf of Mexico.