Global mining firm BHP (ASX:BHP) has signalled a strong finish to the financial year, announcing that annual copper production is tracking towards the upper end of its forecasted guidance.
Despite a 7% year-on-year dip in copper output during the third quarter, the group remains confident in meeting its annual target of 1.9 million to 2 million metric tonnes by June.
A primary driver for this optimism is the stellar operational performance at the Escondida mine in Chile.
BHP has slashed unit cost guidance for the world’s largest copper mine to between $1 and $1.20 per pound, down from previous estimates of $1.20 to $1.50.
The downward revision reflects a significant increase in by-product credits and streamlined operations.
In the iron-ore sector, production saw a 2% increase, bolstered by the conclusion of sales contract negotiations with the China Mineral Resources Group.
While the miner remained tight-lipped on the specific terms of the deal, the finalisation of these talks marks a key milestone in BHP’s trade relations with its largest consumer market.
CEO Mike Henry reassured shareholders that the company’s centralised procurement strategy is successfully insulating it from global volatility.
At the time of reporting, BHP's share price was $56.06.