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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bhp Billiton Ltd | LSE:0HN3 | London | Ordinary Share | BHP BILLITON ADR REPTG 2 ORD SHS |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 51.49 | 1 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 56.94B | 7.9B | 1.5600 | 26.83 | 260.66B |
From Dec 2022 to Dec 2024
TIDMBHP
RNS Number : 5867G
BHP Group Limited
20 July 2023
A version of this document with the diagram related to the Oak Dam Exploration Target referred to as Figure 1 in Appendix 1 is available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Release Time IMMEDIATE Date 20 July 2023 Release Number 13/23
BHP OPERATIONAL REVIEW
FOR THE YEARED 30 JUNE 2023
-- There were two fatalities during the financial year. We are committed to sharing the learnings from these tragic events and remain resolute in our commitment to eliminating fatalities and serious injuries at BHP.
-- Full year production guidance was achieved for copper, iron ore, metallurgical coal and energy coal. Nickel achieved revised guidance and finished in line with the lower end of original guidance.
-- Annual production records at Western Australia Iron Ore (WAIO) of 285 Mt (100% basis), Spence of 240 kt, and Olympic Dam for both copper of 212 kt and refined gold of 186 troy koz.
-- Full year unit cost guidance(1) is expected to be achieved at Escondida, WAIO and New South Wales Energy Coal (NSWEC). BHP Mitsubishi Alliance (BMA) is expected to be marginally above its revised guidance range.
-- Average realised prices for copper, iron ore and metallurgical coal products were lower in the 2023 financial year compared to the prior year. Nickel prices remained stable, while thermal coal prices were stronger, predominantly in the first half.
-- BHP completed the acquisition of OZ Minerals Ltd (OZL) on 2 May 2023 (2) .
-- BHP has continued to make strong progress at Oak Dam in South Australia. We have defined an Exploration Target(3) and plan to increase the number of exploration drills from nine to eleven by the end of the 2023 calendar year.
-- In Australia, BHP released its sixth Reconciliation Action Plan, which was awarded Elevate status.
BHP Chief Executive Officer, Mike Henry:
"The financial year was marked by the deaths of Jody Byrne and Nathan Scholz. These tragic events underscore the absolute importance of safety and we are resolute in our commitment to eliminating fatalities and serious injuries at BHP.
"BHP finished the year with a strong fourth quarter, increasing annual production across the board and achieving annual records at WAIO, Olympic Dam and Spence. WAIO shipped record volumes on the back of productivity in its supply chain, rail network and car dumpers, while South Flank completed its deployment of autonomous haul trucks in May and is on track to ramp up to full production in the next 12 months. Olympic Dam's improved reliability and productivity delivered record annual output in copper, gold and silver, and the integration of OZ Minerals into our South Australian copper business is expected to lift production to between 310 and 340 kt in FY24. At Escondida, the team managed through operational challenges to deliver solid production and position the asset to increase output further in FY24. Our Queensland coal operations achieved strong underlying performance including the transition to autonomous fleets at Goonyella Riverside and Daunia, offsetting the impact of significant wet weather.
1
"Inflationary pressures impacted our business in the year, and we remain laser focused on safety and productivity to remain competitive. Competitiveness will be ever more important as we enter the new financial year and at a time when there are new challenges and opportunities to resource development and global economic volatility.
"BHP's portfolio is geared towards high quality steelmaking and growth options in future facing commodities. The Jansen potash project in Canada remains ahead of plan and studies for Stage 2 are progressing. Through the year, BHP made strategic investments and exploration progress in copper and nickel prospects globally, including Kabanga in Tanzania, Oak Dam in Australia, Filo Mining with the Filo del Sol Project in Argentina and Chile, and Ocelot in the United States, as well as Serbia and Peru."
Summary
Operational performance
Production and guidance are summarised below.
Hot Features
Premium
FY23 Jun Q23 Jun Q23
Jun vs vs vs FY24 FY24e
Production FY23 Q23 FY22 Jun Q22 Mar Q23 guidance vs FY23
---------------------------------- ------- ----- ----- -------- -------- -------------- -------------
Copper (kt) (i) 1,716.5 476.2 9% 3% 17% 1,720 - 1,910 0% - 11%
Escondida (kt) 1055.3 293.0 5% 1% 16% 1,080 - 1,180 2% - 12%
Pampa Norte (kt) 288.8 68.5 3% (11%) (6%) 210 - 250 (ii) (27%) - (13%)
Copper South Australia (kt)(iii) 232.4 76.6 68% 38% 48% 310 - 340 33% - 46%
Antamina (kt) 138.4 36.5 (8%) (8%) 23% 120 - 140 (13%) - 1%
Carajás (kt) 1.6 1.6 - - - - -
Iron ore (Mt) 257.0 65.3 1% 2% 9% 254 - 264.5 (1%) - 3%
WAIO (Mt) 252.5 64.1 1% 1% 9% 250 - 260 (1%) - 3%
WAIO (100% basis) (Mt) 285.3 72.7 1% 1% 10% 282 - 294 (1%) - 3%
Samarco (Mt) 4.5 1.2 11% 22% 17% 4 - 4.5 (11%) - 0%
Metallurgical coal - BMA (Mt) 29.0 8.5 0% 4% 22% 28 - 31 (4%) - 7%
BMA (100% basis) (Mt) 58.0 17.0 0% 4% 22% 56 - 62 (4%) - 7%
Energy coal - NSWEC (Mt) 14.2 4.8 3% 22% 21% 13 - 15 (8%) - 6%
Nickel (kt) 80.0 22.0 4% 17% 12% 77 - 87 (4%) - 9%
i. Includes contribution of 21.5 kt from operations acquired from OZL(2) .
ii. Production guidance for FY24 is provided for Spence only. Cerro Colorado is expected to produce 9 kt as it transitions to closure by 31 December 2023.
iii. Comprised of Olympic Dam, Prominent Hill and Carrapateena. Refer to the production and sales report for more details.
2
Jun Q23
FY23 (vs Mar Q23)
Production (vs FY22) Jun Q23 vs Mar Q23 commentary
----------------------- ----------- ------------- -------------------------------------------------------------------------------------------
Copper (kt) 1,716.5 476.2 Higher concentrate volumes at Escondida reflect the higher concentrate feed grade of 0.93
per cent, and higher volumes at Copper South Australia resulted in a BHP record for quarter
ly
production from the refinery at Olympic Dam, and reflect the addition of Prominent Hill and
Carrapateena.
9% 17%
Iron ore (Mt) 257.0 65.3 Increased production at WAIO, despite unfavourable impacts from Tropical Cyclone Ilsa, due
to strong supply chain performance and the prior period impacts from the temporary shutdown
of operations following the fatality, as well as the tie-in activity of the Port Debottlene
cking
Project 1 (PDP1).
1% 9%
Metallurgical coal (Mt) 29.0 8.5 Increased production driven by increased yield, improved truck productivity and favourable
weather conditions, partially offset by the commencement of a second longwall move at Broad
meadow.
0% 22%
Energy coal (Mt) 14.2 4.8 Higher volumes as a result of additional stripping volumes, decreased proportion of washed
coal, favourable weather conditions, and improvement in truck productivity with record quar
terly
annualised truck hours.
3% 21%
Nickel (kt) 80.0 22.0 Higher volumes due to improved mining performance at Mt Keith, increased third party purcha
ses
and inventory drawdowns enabling increased concentrate production, partially offset by a he
avy
rain event in April 2023.
4% 12%
Summary of disclosures
BHP expects its financial results for the second half of the 2023 financial year to reflect certain items summarised in the table below. The table does not provide a comprehensive list of all items impacting the period. The financial statements are the subject of ongoing work that will not be finalised until the release of the financial results on 22 August 2023. Accordingly, the table below contains preliminary information that is subject to update and finalisation.
H2 FY23
impact
Description US$M(i) Classification(ii)
------------------------------------------------------------- ---------- -------------------------------------------
For the 2023 financial year, unit costs at Escondida and WAIO - Operating costs
are expected to be towards the
upper end of guidance ranges, and unit costs at NSWEC are
expected to be in line with the
revised guidance range (at guidance exchange rates)
Unit costs at BMA are expected to be marginally above the
revised guidance range (at guidance
exchange rates)
Note: Australian dollar and Chilean peso were weaker than
guidance rates in the period(iii)
Unit costs will not include any costs relating to the review
of employee entitlements and
allowances.
Review of employee entitlements and allowances 280 Operating costs - Group and Unallocated
Transaction and integration costs associated with the OZL 100 - 150 Operating costs - Group and Unallocated
acquisition
Increase to depreciation and amortisation expense relative to 100 - 200 Depreciation, amortisation and impairments
H1 FY23, predominantly at WAIO,
and includes the contribution of the OZL assets acquired
during the period
3
The Group's adjusted effective tax rate for the 2023 financial year is - Taxation expense expected to be in the lower half of the guidance range of 30 to 35 per cent Working capital decrease relating to net price impacts, and provisions 950 - 1,050 Operating cash flow relating to employee entitlements and allowances Decrease in cash tax paid relative to H1 FY23 1,600 - 1,700 Operating cash flow Gross dividends received from equity-accounted investments 250 Investing cash flow Capital and exploration spend is expected to be approximately US$7.1 bn, - Investing cash flow below full year guidance of approximately US$7.6 bn, primarily driven by favourable FX Gross dividends paid to non-controlling interests 650 Financing cash flow Payment of the H1 FY23 dividend 4,600 Financing cash flow Acquisition of OZL 6,000 Investing cash flow Net debt acquired through OZL acquisition 1,000 Net debt The Group's net debt balance at 30 June 2023 is expected to be between US$11 - Net debt and US$11.5 bn and is expected to remain towards the upper end of our target range of US$5 to US$15 bn in the near term Financial impact on BHP Brasil of the Samarco dam failure Refer footnote(iv) Exceptional item The financial impact is expected to primarily relate to amortisation of discounting on the provision and the impact of foreign exchange Revaluation of deferred tax balances following the substantive enactment of 250 - 300(v) Exceptional item the Chilean Royalty Bill
i Numbers are not tax effected and comparisons are against the 31 December 2022 financial results, unless otherwise noted.
ii There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant, unless otherwise noted.
iii Average exchange rates for FY23 of AUD/USD 0.67 (guidance rate AUD/USD 0.72) and USD/CLP 864 (guidance rate USD/CLP 830).
iv Financial impact is the subject of ongoing work and is not yet finalised. See Iron ore section for further information on Samarco.
v To reflect an increase to the mining tax rates in Chile.
Average realised prices
The average realised prices achieved for our major commodities are summarised below.
FY23 H2 FY23 H2 FY23
vs vs vs
Average realised pricesi H2 FY23 H1 FY23 FY23 FY22 FY22 H2 FY22 H1 FY23
---------------------------------- ------- ------- ------ ------ ----- -------- --------
Copper (US$/lb)(ii) 3.80 3.49 3.65 4.16 (12%) (5%) 9%
Iron ore (US$/wmt, FOB) 99.88 85.46 92.54 113.10 (18%) (11%) 17%
Metallurgical coal (US$/t) 273.08 268.73 271.05 347.10 (22%) (36%) 2%
Hard coking coal (US$/t)(iii) 276.22 270.65 273.59 366.82 (25%) (37%) 2%
Weak coking coal (US$/t)(iii) 250.38 252.12 251.13 296.51 (15%) (35%) (1%)
Thermal coal (US$/t)(iv) 157.21 354.30 236.51 216.78 9% (48%) (56%)
Nickel metal (US$/t) 23,652 24,362 24,021 23,275 3% (14%) (3%)
i Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments.
ii Does not include sales from assets acquired through the purchase of OZL.
iii Hard coking coal (HCC) refers generally to those metallurgical coals with a Coke Strength after Reaction (CSR) of 35 and above, which includes coals across the spectrum from Premium Coking to Semi Hard Coking coals, while weak coking coal (WCC) refers generally to those metallurgical coals with a CSR below 35.
iv Export sales only. Includes thermal coal sales from metallurgical coal mines.
4
The large majority of iron ore shipments were linked to index pricing for the month of shipment, with price differentials predominantly a reflection of market fundamentals and product quality. Iron ore sales for the June 2023 half year were based on an average moisture rate of 6.6 per cent. The large majority of metallurgical coal and energy coal exports were linked to index pricing for the month of scheduled shipment or priced on the spot market at fixed or index-linked prices, with price differentials reflecting product quality. The large majority of copper cathodes sales were linked to index price for quotation periods one month after month of shipment, and three to four months after month of shipment for copper concentrates sales with price differentials applied for location and treatment costs.
At 30 June 2023, the Group had 342 kt of outstanding copper sales that were revalued at a weighted average price of US$3.77 per pound. The final price of these sales will be determined in the 2024 financial year.
In addition, 354 kt of copper sales from the 2022 financial year were subject to a finalisation adjustment in the 2023 financial year. The provisional pricing and finalisation adjustments will decrease Underlying EBITDA by US$243 million in the 2023 financial year and are included in the average realised copper price in the above table.
Corporate update
BHP released its sixth Reconciliation Action Plan in June 2023, which has been recognised with 'Elevate' status from Reconciliation Australia. Some examples of the commitments made in the plan include increasing Indigenous representation across our Australian workforce to a target of 9.7 per cent by the end of the 2027 financial year, and a target to achieve an A$1.5 billion spend with Traditional Owner and Indigenous businesses in aggregate across our Australian assets.
Portfolio
On 2 May 2023, BHP announced the completion of the OZL acquisition . The acquisition strengthens BHP's portfolio in copper, nickel and uranium and is in line with our strategy to pursue value adding growth in future facing commodities. The cash payment by BHP was funded using a combination of BHP's existing cash reserves and the proceeds of a debt facility.
In June 2023, BHP agreed to invest an additional C$30 million in Filo Mining Corp via a private placement. The proceeds from BHP's investment will be used by Filo for exploration and development of the Filo del Sol project, located in San Juan Province, Argentina and adjacent Region III in Chile, and for working capital and general corporate purposes.
Decarbonisation
In the June 2023 quarter, BHP held a briefing updating on its progress and plans to achieve its medium and long-term operational decarbonisation target and goal and released two Prospects updates on the Pathways to decarbonisation which are available on the BHP website: The many, many roads to Paris and the electric smelting furnace .
Copper
Production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
------- ------- ----- -------- --------
Copper (kt) 1,716.5 476.2 9% 3% 17%
Zinc (t) 125,048 38,822 1% 41% 64%
Uranium (t) 3,406 813 43% 5% (2%)
Copper - Total copper production increased by nine per cent to 1,717 kt. Production for the 2024 financial year is expected to be between 1,720 and 1,910 kt.
5
Escondida copper production increased by five per cent to 1,055 kt primarily due to higher concentrator feed grade of 0.82 per cent, compared to 0.78 per cent in the 2022 financial year. The positive impact of the higher grade was partially offset by the impact of road blockades across Chile in the December 2022 quarter, which reduced availability of some key mine supplies. Full year production came in at the low end of revised guidance largely as a result of measures implemented to manage geotechnical events in a high grade section of the Escondida pit. These included a resequencing of the mine plan, resulting in lower than anticipated volumes of mined ore and increased processing of lower grade stockpiles through the concentrators. Production is expected to increase to between 1,080 and 1,180 kt for the 2024 financial year and reflects both an expected increase in concentrator feed grade and an expected increase in concentrator throughput compared to the 2023 financial year.
Pampa Norte copper production increased by three per cent to 289 kt including a record 240 kt at Spence and 49 kt at Cerro Colorado. This was largely a result of higher concentrator throughput at the Spence Growth Option (SGO), partially offset by lower production at Cerro Colorado as it transitions towards closure. The concentrator plant modifications, which commenced in August 2022, remain on track to be completed in the 2023 calendar year. Expected capital expenditure for the concentrator modification works remains unchanged at approximately US$100 million. Production for Spence is expected to be between 210 and 250 kt for the 2024 financial year, with planned higher concentrator grade and concentrator throughput but lower stacking grade for cathodes. Cerro Colorado continues to transition towards planned closure by December 2023, with production for the six months until closure expected to be approximately 9 kt. We are continuing to closely monitor previously identified Spence Tailings Storage Facility anomalies.
Following the completion of the acquisition of OZL, we have established the Copper South Australia business. Production from Copper South Australia was 232 kt, comprised of full year production from Olympic Dam of 212 kt and two months of production(2) from Prominent Hill and Carrapateena of 8 kt and 12 kt respectively. Olympic Dam delivered record BHP copper production as a result of continued strong concentrator and smelter performance following the major smelter maintenance campaign (SCM21) in the prior year. Record annual gold and silver production was also achieved following the implementation of debottlenecking initiatives in the prior year, 27 per cent higher than the previous gold production record.
Integration activity is underway, including the transfer of small volumes of copper concentrate from Prominent Hill to Olympic Dam for processing. Copper South Australia production of between 310 and 340 kt is expected for the 2024 financial year.
Antamina copper production decreased by eight per cent to 138 kt reflecting the expected lower copper feed grades, partially offset by higher throughput. Zinc production was one per cent higher at 125 kt, reflecting higher throughput. Copper production of 120 to 140 kt and zinc production of between 85 and 105 kt is expected for the 2024 financial year.
Following the acquisition of OZL, Carajás produced 1.6 kt of copper and 1.2 troy koz of gold(2) .
Iron ore
Production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
------- ------- ----- -------- --------
Iron ore (kt) 257,043 65,295 1% 2% 9%
Iron ore - Total iron ore production increased by one per cent to 257 Mt. Production for the 2024 financial year is expected to be between 254 and 264.5 Mt.
6
WAIO achieved record production of 253 Mt (285 Mt on a 100 per cent basis), reflecting continued strong supply chain performance, including improved rail performance and increased car dumper utilisation. This was partially offset by the temporary suspension of operations following the fatality in February, unfavourable weather impacts from Tropical Cyclone Ilsa in the June 2023 quarter and the ongoing planned tie-in of PDP1, which remains on track to be completed in the 2024 calendar year.
South Flank remains on track to ramp up to full production capacity of 80 Mtpa (100 per cent basis) by the end of the 2024 financial year. Current year performance has contributed to record annual production at the Mining Area C hub and record WAIO lump sales. Additionally, the deployment of autonomous haul trucks at South Flank was completed in May 2023.
WAIO also achieved record shipments for the year, which was inclusive of sales of of 249 Mt (281 Mt on a 100 per cent basis) and inventory in China of almost 4 Mt for portside sales.
WAIO production is expected to increase to between 250 and 260 Mt (282 and 294 Mt on a 100 per cent basis) in the 2024 financial year.
Samarco production increased by 11 per cent to 4.5 Mt (BHP share), as a result of higher concentrator throughput. Production for the 2024 financial year is expected to be between 4 and 4.5 Mt (BHP share).
In May 2023, Samarco announced it had agreed with its shareholders and a group of Samarco's financial creditors to a restructure of the company's financial debts. The agreement was entered into following a 2-month court-supervised settlement process. The proposed terms are subject to approval by a majority of Samarco's creditors, ratification by the Judicial Reorganisation Court and the entry into definitive debt restructure documents. Samarco, BHP Brasil, Vale, and creditors are working together to implement the restructure terms to resolve Samarco's judicial reorganisation process.
Coal
Production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
------ ------- ----- -------- --------
Metallurgical coal (kt) 29,020 8,477 0% 4% 22%
Energy coal (kt) 14,172 4,765 3% 22% 21%
Metallurgical coal - BMA production of 29 Mt (58 Mt on a 100 per cent basis) was in line with the prior period. The significant wet weather experienced in the first three quarters(4) was offset by strong underlying operational performance, in particular, continued improvement in truck productivity at Goonyella and Daunia following the completion of their transitions to autonomous fleet. Production for the period was further supported by a drawdown of raw coal inventory and improved labour availability compared to the prior period.
Production for the 2024 financial year is expected to be between 28 and 31 Mt (56 and 62 Mt on a 100 per cent basis).
The near tripling of top end royalties by the Queensland Government makes Queensland the highest coal taxing regime in the world. Given the negative impact this has on investment economics and the increase in sovereign risk, we will not be investing in any further growth in Queensland, however we will sustain and optimise our existing operations.
7
Energy coal - NSWEC production increased by three per cent to 14.2 Mt driven by an improvement in weather conditions in the second half of the year and an uplift in truck productivity compared to the prior year. Additional deployed capacity into a new mining area also resulted in an uplift in prime stripping volumes. Production for the 2024 financial year is expected to be between 13 and 15 Mt.
Higher quality products made up 77 per cent of sales, compared to 89 per cent in the prior period, reflecting the impacts of the change in export market conditions and the commencement of domestic sales under the NSW Government Coal Market Price Emergency (Directions for Coal Mines) Notice in the June 2023 quarter. The reservation allocation for the 2024 financial year is expected to be 0.7 Mt in line with the Directions.
Other
Nickel production
FY23 Jun Q23 Jun Q23
vs vs vs
FY23 Jun Q23 FY22 Jun Q22 Mar Q23
---- ------- ----- -------- --------
Nickel (kt) 80.0 22.0 4% 17% 12%
Nickel - Nickel West production increased by four per cent to 80 kt due to an increased proportion of concentrate and matte products and inventory drawdowns. This was partially offset by the slower than planned ramp up of the refinery following planned maintenance in the December 2022 quarter and a heavy rain event at the Mt Keith operations in early April 2023 impacting mine progression.
During the year, Nickel West has experienced ongoing issues with the quality and volume of ore deliveries from Mincor Resources containing high levels of arsenic, and in March advised that it would no longer accept off-specification product. In the second half, Nickel West purchased more third-party products compared to the first half, including higher cost third party concentrate to offset the impact of the ore supply issues.
Production is expected to be between 77 and 87 kt for the 2024 financial year, weighted to the second half of the year due to planned refinery maintenance in the first half.
The West Musgrave nickel project in Western Australia is in early stages of execution following the final investment decision by OZL in September 2022 (prior to the acquisition by BHP).
Potash - Our major potash project under development at Jansen is tracking to the accelerated plan with first production still targeted for the end of the 2026 calendar year, compared to the initial target of the 2027 calendar year. In the June 2023 quarter, we completed all piling activities for the mill and storage facilities. During the 2024 financial year, we will transition from civil works into steel and equipment installation on the surface and underground, as well as continuing with equipment procurement. Port construction will also continue. The feasibility study for Jansen Stage 2 continues to progress and is on track to be completed during the 2024 financial year.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
------------ ------------ ----------- --------------------------------- --------------
Jansen Stage 5,723 End-CY26 Design, engineering Project is 26%
1 and construction of complete
an underground potash
mine and surface infrastructure,
with capacity to produce
4.35 Mtpa.
(Canada)
100%
8
Minerals exploration
Minerals exploration and evaluation expenditure increased by 37 per cent for the year ended 30 June 2023 to US$350 million, of which US$294 million was expensed.
At BHP's recently identified copper porphyry mineralised system, Ocelot, located in the Miami-Globe copper district of the United States, the final hole of a 6-hole program was completed in May 2023. The project remains at an early exploration stage and data from the recent drill program will be used to update the overall resource range estimation at Ocelot.
At Oak Dam in South Australia, we have defined an Exploration Target(3) (refer to Appendix 1) and commenced the next phase of drilling as we work towards defining a first Mineral Resource(5) . In line with the environmental approvals received in March 2023, we plan to increase from nine drill rigs to eleven and to establish core processing facilities and an accommodation camp of up to 150 rooms by the end of the 2023 calendar year. We are continuing community and stakeholder engagement in preparation for submission of our application to convert the Oak Dam tenement from an exploration licence to a retention lease, enabling progression of an early access decline.
In addition, we have commenced exploratory drilling beneath the Olympic Dam mine, at depths between 900m and 1,500m, with nine surface exploration rigs.
In June 2023, BHP signed a Sales and Purchase Agreement to acquire 100 per cent of Ragnar Metals Sweden AB, for a cash payment of A$9.8 million. Ragnar's assets include the Granmuren Nickel project, an early-stage nickel-copper tenement package located 110 km north-west of Stockholm, Sweden. BHP intends to undertake additional drilling to determine whether the known mineralisation has continuous high grade nickel sulphide and to test additional targets.
The inaugural BHP Xplor accelerator program was completed, with a number of the early-stage mineral exploration companies selected for further investment. Applications for the program's second year will open at the end of August 2023.
Elsewhere, we continue to progress exploration activities in Australia, Canada, Chile, Ecuador, Peru, Serbia and the United States.
9
Variance analysis relates to the relative performance of BHP and/or its operations during the 12 months ended June 2023 compared with the 12 months ended June 2022, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis. Numbers presented may not add up precisely to the totals provided due to rounding.
The following footnotes apply to this Operational Review:
1 2023 financial year unit cost guidance: Escondida US$1.25-1.45/lb, WAIO US$18-19/t, BMA US$100-105/t and NSWEC US$84-91/t; based on exchange rates of AUD/USD 0.72 and USD/CLP 830.
2 Throughout this report, production volumes for the operations acquired from OZL are for the period of 1 May to 30 June 2023, whilst the acquisition completion date was 2 May 2023.
3 An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource.
4 803mm of rainfall recorded at Moranbah for the year ended 30 June 2023 compared to 648mm in the prior year.
5 The potential quantity and grade of an Exploration Target is conceptual in nature and as such there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration or analysis will result in the estimation of a Mineral Resource.
The following abbreviations may have been used throughout this report: cost and freight (CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); megawatt (MW); metre (m); millimetre (mm); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand ounces (koz); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
In this release, the terms 'BHP', the 'Group', 'BHP Group', 'we', 'us', 'our' and 'ourselves' are used to refer to BHP Group Limited and, except where the context otherwise requires, our subsidiaries. Refer to note 28 'Subsidiaries' of the Financial Statements in BHP's 30 June 2022 Appendix 4E for a list of our significant subsidiaries. Those terms do not include non-operated assets. On and from 2 May, the BHP Group includes OZ Minerals Limited and its subsidiaries referred to in note 17 of their Financial Statements in its Annual Report for the year ended 30 December 2022. Notwithstanding that this release may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise. Our non-operated assets include Antamina and Samarco. BHP Group cautions against undue reliance on any forward-looking statement or guidance in this release, particularly in light of the current economic climate and significant volatility, uncertainty and disruption arising in connection with COVID-19. These forward-looking statements are based on information available as at the date of this release and are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this release.
Further information on BHP can be found at: bhp.com
10
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Group Company Secretary
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
Australia and Asia Australia and Asia
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Tel: +61 3 9609 3830 Mobile: Mobile: +61 499 006 018
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Europe, Middle East and Africa
Europe, Middle East and Africa
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Americas
Americas
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11
Production summary
Quarter ended Year to date
--------------------------------------------- ------------------
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2022 2022 2022 2023 2023 2023 2022
------- ------- ------- -------- -------- -------- --------
Copper (1)
Copper
Payable metal in
concentrate (kt)
Escondida (2) 57.5% 233.5 203.1 208.3 200.8 220.5 832.7 802.6
Pampa Norte (3) 100% 28.2 28.6 32.5 32.0 32.2 125.3 111.2
Copper South Australia(4) 100% 19.9 19.9
Antamina 33.8% 39.6 37.1 35.2 29.6 36.5 138.4 149.9
Carajas(5) 100% 1.6 1.6
Total 301.3 268.8 276.0 262.4 310.7 1,117.9 1,063.7
Cathode (kt)
Escondida (2) 57.5% 55.8 49.6 49.7 50.8 72.5 222.6 201.4 Pampa Norte (3) 100% 49.0 42.0 44.2 41.0 36.3 163.5 170.0 Copper South Australia(4) 100% 55.7 49.7 54.4 51.7 56.7 212.5 138.4 Total 160.5 141.3 148.3 143.5 165.5 598.6 509.8 Total copper (kt) 461.8 410.1 424.3 405.9 476.2 1,716.5 1,573.5 Lead Payable metal in concentrate (t) Antamina 33.8% 181 228 114 169 146 657 1,118 Total 181 228 114 169 146 657 1,118 Zinc Payable metal in concentrate (t) Antamina 33.8% 27,576 32,685 29,929 23,612 38,822 125,048 123,200 Total 27,576 32,685 29,929 23,612 38,822 125,048 123,200 Gold Payable metal in concentrate (troy oz) Escondida (2) 57.5% 45,770 38,236 48,402 48,954 53,503 189,095 166,972 Pampa Norte (3) 100% 8,198 5,521 3,875 8,152 9,263 26,811 28,870 Copper South Australia(4) 100% 32,736 32,736 Carajas(5) 100% 1,153 1,153 Total 53,968 43,757 52,277 57,106 96,655 249,795 195,842 Refined gold (troy oz) Copper South Australia(4) 100% 26,080 47,184 43,280 49,086 46,479 186,029 119,517 Total 26,080 47,184 43,280 49,086 46,479 186,029 119,517 Total gold (troy oz) 80,048 90,941 95,557 106,192 143,134 435,824 315,359 Silver Payable metal in concentrate (troy koz) Escondida (2) 57.5% 1,311 1,210 1,510 1,346 1,008 5,074 5,334 Pampa Norte (3) 100% 262 252 245 409 412 1,318 1,011 Copper South Australia(4) 100% 201 201 Antamina 33.8% 1,212 1,190 923 801 971 3,885 5,078 Total 2,785 2,652 2,678 2,556 2,592 10,478 11,423 Refined silver (troy koz) Copper South Australia(4) 100% 145 295 261 277 256 1,089 743 Total 145 295 261 277 256 1,089 743 Total silver (troy koz) 2,930 2,947 2,939 2,833 2,848 11,567 12,166 Uranium Payable metal in concentrate (t) Copper South Australia(4) 100% 776 817 943 833 813 3,406 2,375 Total 776 817 943 833 813 3,406 2,375 Molybdenum Payable metal in concentrate (t) Pampa Norte(3) 100% 71 34 216 407 333 990 71 Antamina 33.8% 249 262 348 229 333 1,172 798 Total 320 296 564 636 666 2,162 869
13
Production summary
Quarter ended Year to date
------------------------------------------- ------------------
BHP Jun Sep Dec Mar Jun Jun Jun
interest 2022 2022 2022 2023 2023 2023 2022
------- ------- ------- ------- ------- -------- --------
Iron Ore
Iron Ore
Production (kt) (6)
Newman 85% 14,063 14,053 16,172 11,925 14,795 56,945 57,041
Area C Joint Venture 85% 27,685 26,971 26,302 25,284 28,818 107,375 94,431
Yandi Joint Venture 85% 6,409 5,497 5,613 4,941 5,359 21,410 38,922
Jimblebar (7) 85% 15,005 17,404 17,720 16,575 15,102 66,801 58,782
Samarco 50% 1,000 1,148 1,095 1,048 1,221 4,512 4,071
Total 64,162 65,073 66,902 59,773 65,295 257,043 253,247
Coal
Metallurgical coal
Production (kt) (8)
BHP Mitsubishi Alliance
(BMA) 50% 8,183 6,662 6,952 6,929 8,477 29,020 29,142
Total 8,183 6,662 6,952 6,929 8,477 29,020 29,142
Energy coal
Production (kt)
NSW Energy Coal 100% 3,919 2,622 2,851 3,934 4,765 14,172 13,701
Total 3,919 2,622 2,851 3,934 4,765 14,172 13,701
Other
Nickel
Saleable production
(kt)
Nickel West 100% 18.8 20.7 17.7 19.6 22.0 80.0 76.8
Total 18.8 20.7 17.7 19.6 22.0 80.0 76.8
Cobalt
Saleable production
(t)
Nickel West 100% 110 238 93 175 246 752 632
Total 110 238 93 175 246 752 632
1 Metal production is reported on the basis of payable metal.
2 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
3 Includes Spence and Cerro Colorado. Refer to the Production and Sales Report for more details.
4 Includes Olympic Dam and two months of production from Prominent Hill and Carrapateena from 1 May 2023, following the acquisition of OZL on 2 May 2023. Refer to the Production and Sales Report for more details.
5 Includes two months of production from 1 May 2023, following the acquisiton of OZL on 2 May 2023.
6 Iron ore production is reported on a wet tonnes basis. 7 Shown on a 100% basis. BHP interest in saleable production is 85%.
8 Metallurgical coal production is reported on the basis of saleable product. Production figures may include some thermal coal.
Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.
14
Production and sales report
Year to
Quarter ended date
----------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
-------- -------- -------- -------- ------- -------- --------
Copper
Metals production is payable metal
unless otherwise stated.
Escondida, Chile
(1)
Material mined (kt) 115,409 110,248 101,987 106,170 95,451 413,856 454,243
Concentrator throughput (kt) 34,318 32,894 33,911 33,309 30,750 130,864 133,868
Average copper grade
- concentrator (%) 0.88% 0.83% 0.76% 0.78% 0.93% 0.82% 0.78%
Production ex mill (kt) 239.5 214.6 212.8 210.0 228.9 866.3 835.8
Production
Payable copper (kt) 233.5 203.1 208.3 200.8 220.5 832.7 802.6
Copper cathode (EW) (kt) 55.8 49.6 49.7 50.8 72.5 222.6 201.4
- Oxide leach (kt) 17.5 15.2 17.6 14.7 29.3 76.8 57.6
- Sulphide leach (kt) 38.3 34.4 32.1 36.1 43.2 145.8 143.8
Total copper (kt) 289.3 252.7 258.0 251.6 293.0 1,055.3 1,004.0
(troy
Payable gold concentrate oz) 45,770 38,236 48,402 48,954 53,503 189,095 166,972
(troy
Payable silver concentrate koz) 1,311 1,210 1,510 1,346 1,008 5,074 5,334
Sales
Payable copper (kt) 230.4 196.7 216.0 197.3 220.3 830.3 798.1
Copper cathode (EW) (kt) 58.9 45.9 53.5 43.8 78.0 221.2 202.5
(troy
Payable gold concentrate oz) 45,770 38,236 48,402 48,954 53,503 189,095 166,972
(troy
Payable silver concentrate koz) 1,311 1,210 1,510 1,346 1,008 5,074 5,334
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
15
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------- ------- ------- ------- ------- ------------- -------
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 3,604 3,179 583 172 145 4,079 17,280
Ore stacked (kt) 4,259 4,373 4,119 3,567 3,928 15,987 15,035
Average copper
grade - stacked (%) 0.55% 0.54% 0.56% 0.57% 0.53% 0.55% 0.58%
Production
Copper cathode
(EW) (kt) 14.7 12.8 12.2 12.0 12.2 49.2 55.0
Sales
Copper cathode
(EW) (kt) 16.2 13.3 12.2 10.9 14.1 50.5 54.8
Spence
Material mined (kt) 26,749 26,956 26,980 24,858 25,622 104,416 95,968
Ore stacked (kt) 5,099 5,577 5,155 4,947 5,625 21,304 20,483
Average copper
grade - stacked (%) 0.66% 0.70% 0.66% 0.60% 0.58% 0.64% 0.66%
Concentrator throughput (kt) 6,311 6,433 7,602 7,290 6,927 28,252 24,843
Average copper
grade - concentrator (%) 0.66% 0.63% 0.60% 0.61% 0.61% 0.61% 0.64%
Production
Payable copper (kt) 28.2 28.6 32.5 32.0 32.2 125.3 111.2
Copper cathode
(EW) (kt) 34.3 29.2 32.0 29.0 24.1 114.3 115.0
Total copper (kt) 62.5 57.8 64.5 61.0 56.3 239.6 226.2
(troy
Payable gold concentrate oz) 8,198 5,521 3,875 8,152 9,263 26,811 28,870
Payable silver (troy
concentrate koz) 262 252 245 409 412 1,318 1,011
Payable molybdenum (t) 71 34 216 407 333 990 71
Sales
Payable copper (kt) 28.1 26.0 22.0 38.7 38.6 125.3 109.5
Copper cathode
(EW) (kt) 35.4 29.1 33.4 25.1 28.3 115.9 114.5
(troy
Payable gold concentrate oz) 8,198 5,521 3,875 8,152 9,263 26,811 28,870
Payable silver (troy
concentrate koz) 262 252 245 409 412 1,318 1,011
Payable molybdenum (t) 25 25 216 492 367 1,100 25
16
Production and sales report
Year to
Quarter ended date
------------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Copper South Australia
Olympic Dam
Material mined (1) (kt) 2,477 2,412 2,264 2,317 2,356 9,349 8,834
Ore milled (kt) 2,436 2,570 2,687 2,433 2,755 10,445 7,687
Average copper grade (%) 2.15% 2.13% 2.08% 1.95% 2.00% 2.04% 2.14%
Average uranium grade (kg/t) 0.56 0.58 0.58 0.59 0.55 0.58 0.57
Production
Copper cathode (ER
and EW) (kt) 55.7 49.7 54.4 51.7 56.7 212.5 138.4
Payable uranium (t) 776 817 943 833 813 3,406 2,375
(troy
Refined gold oz) 26,080 47,184 43,280 49,086 46,479 186,029 119,517
(troy
Refined silver koz) 145 295 261 277 256 1,089 743
Sales
Copper cathode (ER
and EW) (kt) 55.8 45.9 56.8 50.5 59.5 212.7 139.1
Payable uranium (t) 1,031 272 1,127 683 1,275 3,357 2,344
(troy
Refined gold oz) 24,622 49,542 41,900 47,300 49,182 187,924 118,979
(troy
Refined silver koz) 87 320 233 307 270 1,130 685
Prominent Hill(2)
Material mined (kt) 661 661
Ore milled (kt) 1,228 1,228
Average copper grade (%) 0.77% 0.77%
Production ex mill (kt) 16.3 16.3
Production
Payable copper (kt) 8.2 8.2
(troy
Payable gold concentrate oz) 17,432 17,432
(troy
Payable silver concentrate koz) 44 44
Sales
Payable copper (kt) 15.7 15.7
(troy
Payable gold concentrate oz) 28,856 28,856
(troy
Payable silver concentrate koz) 87 87
Carrapateena(2)
Material mined (kt) 880 880
Ore milled (kt) 856 856
Average copper grade (%) 1.52% 1.52%
Production ex mill (kt) 30.1 30.1
Production
Payable copper (kt) 11.7 11.7
(troy
Payable gold concentrate oz) 15,304 15,304
(troy
Payable silver concentrate koz) 157 157
Sales
Payable copper (kt) 11.9 11.9
(troy
Payable gold concentrate oz) 15,242 15,242
(troy
Payable silver concentrate koz) 155 155
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
2 Includes two months of production and sales from 1 May 2023, following the acquisiton of OZL on 2 May 2023.
17
Production and sales report
Quarter ended Year to date
------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------- ------- ------- ------- ------- -------- --------
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined
(100%) (kt) 64,026 63,865 68,750 57,939 62,894 253,448 246,904
Concentrator throughput
(100%) (kt) 13,131 13,858 14,272 12,349 13,897 54,376 52,496
Average head grades
- Copper (%) 1.02% 0.93% 0.86% 0.88% 0.88% 0.89% 0.98%
- Zinc (%) 1.05% 1.09% 0.99% 1.06% 1.25% 1.10% 1.11%
Production
Payable copper (kt) 39.6 37.1 35.2 29.6 36.5 138.4 149.9
Payable zinc (t) 27,576 32,685 29,929 23,612 38,822 125,048 123,200
(troy
Payable silver koz) 1,212 1,190 923 801 971 3,885 5,078
Payable lead (t) 181 228 114 169 146 657 1,118
Payable molybdenum (t) 249 262 348 229 333 1,172 798
Sales
Payable copper (kt) 40.7 37.6 34.7 32.4 34.5 139.2 148.2
Payable zinc (t) 30,847 33,820 29,127 25,851 37,629 126,427 125,915
(troy
Payable silver koz) 1,230 1,015 850 768 747 3,380 4,816
Payable lead (t) 363 130 91 181 143 545 1,208
Payable molybdenum (t) 205 250 298 297 227 1,072 660
Carajas, Brazil(1)
Material mined (kt) 103 103
Ore milled (kt) 100 100
Average copper
grade (%) 1.71% 1.71%
Production ex mill (kt) 6.6 6.6
Production
Payable copper (kt) 1.6 1.6
(troy
Payable gold concentrate oz) 1,153 1,153
Sales
Payable copper (kt) 2.1 2.1
(troy
Payable gold concentrate oz) 1,688 1,688
1 Includes two months of production and sales from 1 May 2023, following the acquisiton of OZL on 2 May 2023.
18
Production and sales report
Quarter ended Year to date
------------------------------------------- ------------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------- ------- ------- ------- ------- -------- --------
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia
Iron Ore, Australia
Production
Newman (kt) 14,063 14,053 16,172 11,925 14,795 56,945 57,041
Area C Joint Venture (kt) 27,685 26,971 26,302 25,284 28,818 107,375 94,431
Yandi Joint Venture (kt) 6,409 5,497 5,613 4,941 5,359 21,410 38,922
Jimblebar (1) (kt) 15,005 17,404 17,720 16,575 15,102 66,801 58,782
Wheelarra (kt) - - - - - - -
Total production (kt) 63,162 63,925 65,807 58,725 64,074 252,531 249,176
Total production (100%) (kt) 71,660 72,135 74,292 66,163 72,717 285,307 282,773
Sales
Lump (kt) 20,006 19,561 20,375 18,021 20,022 77,979 72,345
Fines (kt) 44,308 42,696 44,121 41,183 42,904 170,904 178,343
Total (kt) 64,314 62,257 64,496 59,204 62,926 248,883 250,688
Total sales (100%) (kt) 72,796 70,276 72,688 66,580 71,172 280,716 283,943
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil Production (kt) 1,000 1,148 1,095 1,048 1,221 4,512 4,071 Sales (kt) 991 1,146 1,097 1,111 1,160 4,514 3,995
19
Production and sales report
Quarter ended Year to date
------------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------- ------- ------- ------- ------- ------- -------
Coal
Coal production is reported on the basis of saleable product.
BHP Mitsubishi Alliance (BMA), Australia
Production (1)
Blackwater (kt) 1,751 1,283 1,160 1,107 1,505 5,055 5,834
Goonyella (kt) 2,429 1,780 1,997 2,185 2,348 8,310 8,360
Peak Downs (kt) 1,366 1,325 1,480 1,251 1,424 5,480 4,944
Saraji (kt) 1,168 1,020 1,243 1,007 1,326 4,596 4,614
Daunia (kt) 472 324 441 607 617 1,989 1,491
Caval Ridge (kt) 997 930 631 772 1,257 3,590 3,899
Total production (kt) 8,183 6,662 6,952 6,929 8,477 29,020 29,142
Total production
(100%) (kt) 16,366 13,324 13,904 13,858 16,954 58,040 58,284
Sales
Coking coal (kt) 6,734 5,615 5,872 5,372 7,448 24,307 23,358
Weak coking coal (kt) 1,118 600 727 710 1,064 3,101 3,411
Thermal coal (kt) 765 267 428 104 364 1,163 2,280
Total sales (kt) 8,617 6,482 7,027 6,186 8,876 28,571 29,049
Total sales (100%) (kt) 17,234 12,964 14,054 12,372 17,752 57,142 58,098
1 Production figures include some thermal coal.
20
Production and sales report
Year to
Quarter ended date
-------------------------------------- ----------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------ ------ ------ ------ ------ ------- -------
NSW Energy Coal, Australia
Production (kt) 3,919 2,622 2,851 3,934 4,765 14,172 13,701
Sales
Export (kt) 3,923 2,441 2,862 3,667 4,693 13,663 14,124
Domestic(1) (kt) - - - - 201 201 -
Total (kt) 3,923 2,441 2,862 3,667 4,894 13,864 14,124
------ ------ ------ ------ ------ ------- -------
1 The domestic sales are made under the NSW Government Coal Market Price Emergency (Directions for Coal Mines) Notice 2023.
Year to
Quarter ended date
-------------------------------------- --------------
Jun Sep Dec Mar Jun Jun Jun
2022 2022 2022 2023 2023 2023 2022
------ ------ ------ ------ ------ ------ ------
Other
Nickel production is reported
on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 48.0 42.6 39.6 38.8 44.5 165.5 195.8
Average nickel grade (%) 16.1 17.0 15.5 16.5 16.2 16.3 14.6
Leinster
Nickel concentrate (kt) 76.0 66.8 47.9 68.4 71.1 254.2 305.2
Average nickel grade (%) 10.3 9.9 9.4 8.6 8.5 9.1 9.3
Saleable production
Refined nickel(1) (kt) 11.7 17.5 10.8 13.2 13.1 54.6 57.6
Nickel sulphate(2) (kt) 0.5 1.2 0.4 0.9 0.7 3.2 1.6
Intermediates and nickel
by-products(3) (kt) 6.6 2.0 6.5 5.5 8.2 22.2 17.6
Total nickel (kt) 18.8 20.7 17.7 19.6 22.0 80.0 76.8
Cobalt by-products (t) 110 238 93 175 246 752 632
Sales
Refined nickel(1) (kt) 11.7 18.1 10.2 13.0 13.1 54.4 57.7
Nickel sulphate(2) (kt) 0.5 0.8 0.5 0.9 0.8 3.0 1.3
Intermediates and nickel
by-products(3) (kt) 6.4 1.8 7.7 5.7 9.5 24.7 16.1
Total nickel (kt) 18.6 20.7 18.4 19.6 23.4 82.1 75.1
Cobalt by-products (t) 110 238 93 175 246 752 632
1 High quality refined nickel metal, including briquettes and powder.
2 Nickel sulphate crystals produced from nickel powder.
3 Nickel contained in matte and by-product streams.
21
Appendix 1
The Oak Dam Exploration Target, shown in Table 1, was determined using the BHP internal process of Range Analysis based on 49 drill roles (61km of drilling). Refer to " BHP Results for the half year ended 31 December 2022, Appendix 1 - Explanatory Notes and JORC table 1 " for previously reported Exploration Results.
Table 1: Oak Dam Exploration Target.
Low High
---- ------
Tonnes ( Mt) 500 1,700
Grade ( Cu%) 0.8 1.1
The potential quantity and grade of an Exploration Target is conceptual in nature and as such there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration or analysis will result in the estimation of a Mineral Resource.
The target is interpreted as IOGC style of mineralisation based on exploration results from the Oak Dam project. Currently, drilling is at varying degrees of spacing.
Target ranges were compiled within a facilitated process called Range Analysis, in which potential volumes and grades are determined over a range of assumptions on continuity and extension that are consistent with available data and genetic models of IOCG copper style of mineralisation.
The target remains open at depth, to the south, and west of "Hardy Hill fault" as per cross section on figure 1 below.
Figure 1: Oak Dam geology schematic W-E cross section looking north showing mineralisation is open to the west of Hardy Hill fault, at depth and to the south.
Intended activities for exploration target testing
BHP is currently running nine drill rigs at Oak Dam, with eleven rigs expected by November 2023.
A 150-room camp, including a drilling core processing facility, will be constructed on the tenement in 2023 to support the drilling program.
Competent Person s Statement
The information in this report that relates to Exploration Targets is based on information compiled by Dr. Kathy Ehrig, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists.
Dr. Kathy Ehrig has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results. Dr. Kathy Ehrig consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.
22
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