ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

BHP Bhp Group Limited

2,275.00
18.00 (0.80%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Bhp Group Limited LSE:BHP London Ordinary Share AU000000BHP4 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  18.00 0.80% 2,275.00 2,278.00 2,278.50 2,286.50 2,264.50 2,286.00 1,147,582 16:35:26
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs 54.19B 12.92B 2.5513 17.39 224.66B

BHP Group PLC Operational Review Half Year Ended 31 Dec 2018 (6995N)

22/01/2019 7:00am

UK Regulatory


Bhp (LSE:BHP)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Bhp Charts.

TIDMBHP

RNS Number : 6995N

BHP Group PLC

21 January 2019

 
Release Time     IMMEDIATE 
Date             22 January 2019 
Release Number   01/19 
 

BHP OPERATIONAL REVIEW

FOR THE HALF YEARED 31 DECEMBER 2018

- Production guidance for the 2019 financial year remains unchanged for petroleum, iron ore, metallurgical coal and energy coal. Total copper production guidance increased to between 1,645 and 1,740 kt and reflects the retention of Cerro Colorado.

- Group copper equivalent production(1) was broadly unchanged in the December 2018 half year, with volumes for the full year also expected to be in line with last year.

- Full year unit costs for all major assets are expected to be in line with guidance(2) , predominantly reflecting stronger anticipated volumes in the second half of the year. However, unit costs were tracking above full year guidance at the December 2018 half year as a result of planned maintenance and production outages during the period.

   -    All major projects under development are tracking to plan. 

- In Petroleum, the first appraisal well at Trion in Mexico (Trion-2DEL) encountered oil, in line with expectations. A downdip sidetrack is currently being drilled to further appraise the field.

- The Onshore US sale process was completed on 31 October 2018, with the net proceeds of US$10.4 billion to be returned to shareholders. On 17 December 2018, a US$5.2 billion off-market buy-back of BHP Group Limited shares was successfully completed. The balance of the net proceeds will be paid on 30 January 2019 as a special dividend of US$1.02 per share.

- The financial results for the December 2018 half year are expected to reflect certain items as summarised in the table on page two.

- Productivity for the December 2018 half year has been impacted by unplanned production outages at Olympic Dam, Spence and Western Australia Iron Ore, with a total negative impact of approximately US$600 million.

 
                 Dec H18    Dec Q18 
                  (vs Dec    (vs Sep 
Production         H17)       Q18)    Dec Q18 commentary 
                                      Lower seasonal gas sales at Bass Strait 
                                       partially offset by Pyrenees resuming 
Petroleum                              production following maintenance in 
 (MMboe)               63         30   the previous quarter. 
                    (-1%)      (-8%) 
Copper (kt)           825        416  Record throughput at Cerro Colorado 
                                       and higher volumes at Spence as production 
                                       returned to full capacity following 
                                       a fire in September 2018, partially 
                                       offset by lower volumes at Escondida 
                                       as a result of expected lower copper 
                                       grades. 
                    (-1%)      (+2%) 
                                      Volumes at Western Australia Iron Ore 
                                       (WAIO) impacted by a train derailment 
Iron ore (Mt)         119         58   on 5 November 2018. 
                    (+2%)      (-6%) 
                                      Record production at South Walker Creek 
Metallurgical                          offset by the impact of the scheduled 
 coal (Mt)             21         10   longwall move at Broadmeadow. 
                    (+2%)      (-1%) 
Energy coal            13          7  Increased production at New South Wales 
 (Mt)                                  Energy Coal (NSWEC) as a result of 
                                       higher bypass coal offset by the impact 
                                       of mine sequence changes at Cerrejón. 
                    (-5%)       (0%) 
 

BHP Chief Executive Officer, Andrew Mackenzie, said: "Production in the first half was broadly in line with the prior period despite planned maintenance and outages. In Petroleum, our first appraisal well at Trion in Mexico encountered oil and we added to our exploration options with successful bids for two licences offshore Eastern Canada. We completed the sale of our US shale assets and returned US$5.2 billion to shareholders through a share buy-back program, with a further US$5.2 billion to be returned as a special dividend on 30 January 2019."

1

Summary

Operational performance

Production for the December 2018 half year and guidance for the 2019 financial year are summarised below.

 
                                       Dec H18   Dec Q18   Dec Q18 
                                          vs        vs        vs     Previous FY19  Current FY19 
Production           Dec H18  Dec Q18   Dec H17   Dec Q17   Sep Q18     guidance       guidance 
Petroleum - 
 Conventional 
 (MMboe)                  63       30      (1%)      (2%)      (8%)      113 - 118      113 - 118   Upper end of range 
Copper (kt)              825      416      (1%)      (3%)        2%  1,620 - 1,705  1,645 - 1,740            Increased 
  Escondida (kt)         580      285        0%     (10%)      (4%)  1,120 - 1,180  1,120 - 1,180            Unchanged 
  Other copper(i)                                                                                       Cerro Colorado 
   (kt)                  245      132      (2%)       15%       16%      500 - 525      525 - 560  60 - 70 kt for FY19 
Iron ore(ii) (Mt)        119       58        2%      (6%)      (6%)      241 - 250      241 - 250            Unchanged 
  WAIO (100% basis) 
   (Mt)                  135       66      (1%)      (9%)      (6%)      273 - 283      273 - 283            Unchanged 
Metallurgical coal 
 (Mt)                     21       10        2%        6%      (1%)        43 - 46        43 - 46            Unchanged 
Energy coal (Mt)          13        7      (5%)      (9%)        0%        28 - 29        28 - 29            Unchanged 
 

(i) Other copper comprises Pampa Norte (including Cerro Colorado production for the full 2019 financial year to reflect its retention, previous guidance only included 35 kt of production for the first half of the 2019 financial year), Olympic Dam and Antamina.

(ii) Increase in BHP's share of volumes reflects the expiry of the Wheelarra Joint Venture sublease in March 2018, with control of the sublease area reverted to the Jimblebar Joint Venture, which is accounted for on a consolidated basis with minority interest adjustments.

Summary of disclosures

BHP expects its financial results for the first half of the 2019 financial year to reflect certain items as 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 19 February 2019. Accordingly, the information is subject to update.

 
                                                    H1 FY19 
                                                     impact 
Description                                          US$M(i)     Classification(ii) 
Continuing operations 
Change in the accounting classification of                 260             Revenue 
 treatment and refining charges as a result                         Operating costs 
 of IFRS15(3) (reclassification between revenue 
 and operating costs) 
Unit costs tracking above full year guidance(2)           Refer     Operating costs 
 in H1 FY19 as a result of planned maintenance    footnote(iii) 
 and production outages 
Exploration expense (including petroleum                    222         Exploration 
 and minerals exploration programs)                                         expense 
Impairment charges related to the Whenan                100-150       Depreciation, 
 shaft refurbishment project at Olympic Dam                            amortisation 
 (changes to the mine access plan) and Cerro                        and impairments 
 Colorado (termination of the sale and purchase 
 agreement 
The Group's adjusted effective tax rate for               Refer    Taxation expense 
 H1 FY19 is expected to be slightly above         footnote(iii) 
 the full year guidance range of 30 to 35 
 per cent 
Non-cash fair value adjustments related to                Refer            Net debt 
 interest rate and exchange rate movements        footnote(iii) 
 are expected to increase net debt in H1 FY19 
Higher Australian and Chilean income tax                   700      Operating cash 
 payments in H1 FY19 compared with H1 FY18                                   inflow 
 primarily due to higher instalment rates 
 and settlement of an Australian transfer 
 pricing dispute 
Dividends paid to non-controlling interests                620      Financing cash 
                                                                            outflow 
Reversal of provisions for global taxation                 240         Exceptional 
 matters which were resolved during the period                          item credit 
Financial impact on BHP Billiton Brasil of                Refer         Exceptional 
 the Samarco Dam failure                          footnote(iii)         item charge 
Discontinued operations 
Loss from Onshore US (after taxation) mainly            275-325        Profit after 
 due to incremental costs (including redundancy                            taxation 
 costs and retention payments to employees) 
 and State and Federal tax expenses 
Net proceeds received from the sale of Onshore            7,028      Investing cash 
 US (comprising Fayetteville US$0.3 billion                                  inflow 
 and Eagle Ford, Haynesville and Permian US$6.7 
 billion, representing one-half of the gross 
 consideration at completion less customary 
 completion adjustments and two instalment 
 payments) 
 
   (i)     Numbers are not tax effected, unless otherwise noted. 

(ii) There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant.

   (iii)   Financial impact is the subject of ongoing work and is not yet finalised. 

Productivity for the December 2018 half year has been impacted by lower than expected volumes at Olympic Dam (unplanned acid plant outage in August 2018, volume impact of 45 kt), Spence (fire at the electro-winning plant in September 2018, volume impact of 25 kt) and WAIO (train derailment in November 2018, volume impact of 4 Mt), with a total negative impact of approximately US$600 million. Productivity guidance for the full year is currently under review and revised guidance will be provided in December 2018 half year financial results.

2

Average realised prices

The average realised prices achieved for our major commodities are summarised below.

 
                                                                           Dec H18 
                                                                              vs      Dec H18     Dec H18 
Average realised                                                             Dec         vs          vs 
 prices(i)                      Dec H18    Dec H17    Jun H18     FY18       H17       Jun H18      FY18 
Oil (crude and condensate) 
 (US$/bbl)                        69.41      53.76      67.07     60.12        29%          3%        15% 
Natural gas (US$/Mscf)(ii)         3.98       3.54       3.71      3.62        12%          7%        10% 
  US natural gas (US$/Mscf)        2.88       2.84       2.77      2.80         1%          4%         3% 
LNG (US$/Mscf)                    10.19       7.48       8.65      8.07        36%         18%        26% 
Copper (US$/lb)(v)                 2.54       3.08       2.93      3.00      (18%)       (13%)      (15%) 
Iron ore (US$/wmt, 
 FOB)                             55.62      56.54      56.86     56.71       (2%)        (2%)       (2%) 
Metallurgical coal 
 (US$/t)                         179.82     164.22     189.66    177.22         9%        (5%)         1% 
  Hard coking coal 
   (US$/t)(iii)                  197.86     182.29     205.80    194.59         9%        (4%)         2% 
  Weak coking coal 
   (US$/t)(iii)                  134.12     120.99     143.40    131.70        11%        (6%)         2% 
Thermal coal (US$/t)(iv)          84.15      87.49      86.47     86.94       (4%)        (3%)       (3%) 
Nickel metal (US$/t)             12,480     11,083     13,974    12,591        13%       (11%)       (1%) 
 

(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)    Includes internal sales. 

(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; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.

(v) Comparative financial information has been restated for the new accounting standard, IFRS15 Revenue from Contracts with Customers, which became effective from 1 July 2018.

The majority of iron ore shipments were linked to the index price for the month of shipment, with price differentials predominantly a reflection of product quality and market fundamentals. The majority of metallurgical coal and energy coal exports were linked to the index price for the month of shipment or sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.

At 31 December 2018, the Group had 339 kt of outstanding copper sales that were revalued at a weighted average price of US$2.70 per pound. The final price of these sales will be determined over the remainder of the 2019 financial year. In addition, 364 kt of copper sales from the 2018 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will decrease Underlying EBITDA(4) by US$272 million in the 2019 financial year and is included in the average realised copper price in the above table.

Major development projects

During the December 2018 quarter, the North West Shelf Greater Western Flank-B project achieved first production ahead of schedule and under budget. The North West Shelf Greater Western Flank-B project will not be reported in future Operational Reviews.

At the end of December 2018, BHP had five major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$10.6 billion over the life of the projects.

Corporate update

The Onshore US sales process was completed on 31 October 2018, with the net proceeds of US$10.4 billion to be returned to shareholders through an off-market buy-back and a special dividend shareholder return program. On 17 December 2018, the US$5.2 billion off-market buy-back of BHP Group Limited shares was successfully completed and enabled the buy-back of approximately 265.8 million shares (5.0 per cent of the total issued capital of BHP Group Limited and BHP Group Plc) at A$27.64 per share. In addition, the Board of BHP determined to pay a special dividend to shareholders of US$1.02 per share, representing the residual US$5.2 billion of net proceeds, based on the reduced number of shares on issue (approximately 5,058 million) following completion of the off-market buy-back.

3

On 19 November 2018, BHP settled its transfer pricing dispute relating to its marketing operations in Singapore with the Australian Taxation Office. The settlement fully resolved all prior years, being 2003 to 2018, with no admission of tax avoidance by BHP. As part of the settlement, BHP paid a total of approximately A$529 million in additional taxes for the prior years (BHP paid A$328 million of this amount when the amended assessments were received in prior years, with the balance of A$201 million paid in the December 2018 quarter). In addition, the settlement provides certainty in relation to the future taxation treatment as, due to a change in ownership of the main marketing entity, all profits made in Singapore in relation to the Australian assets owned by BHP Group Limited will be fully subject to Australian tax under the Controlled Foreign Company tax rules from the 2020 financial year.

BHP has agreed to fund a total of US$515 million in further financial support for the Renova Foundation and Samarco. This comprises US$438 million to fund the Renova Foundation until 31 December 2019 which will be offset against the Group's provision for the Samarco dam failure, and a short-term facility of up to US$77 million to be made available to Samarco until 30 June 2019.

As at the date of this Operational Review, we are not in a position to provide an update, for the purpose of the December 2018 half year financial results, on the ongoing potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. Any financial impacts will continue to be treated as an exceptional item.

Petroleum

Production

 
                                                       Dec H18     Dec Q18     Dec Q18 
                                                          vs          vs          vs 
                                 Dec H18    Dec Q18     Dec H17     Dec Q17     Sep Q18 
Crude oil, condensate and 
 natural gas liquids (MMboe)          29         14        (5%)        (3%)          3% 
Natural gas (bcf)                    206         94          1%        (2%)       (16%) 
Total petroleum production 
 (MMboe)                              63         30        (1%)        (2%)        (8%) 
 

Petroleum - Total Conventional petroleum production was broadly flat at 63 MMboe. Guidance for the 2019 financial year remains unchanged at between 113 and 118 MMboe, with volumes expected to be towards the upper end of the guidance range.

Crude oil, condensate and natural gas liquids production declined by five per cent to 29 MMboe due to natural field decline across the portfolio and a 70 day planned dry dock maintenance program at Pyrenees completed during the September 2018 quarter. This decline was partially offset by higher uptimes at our Gulf of Mexico assets.

Natural gas production was broadly flat at 206 bcf, reflecting increased tax barrels at Trinidad and Tobago in accordance with the terms of our Production Sharing Contract. This was partially offset by planned maintenance at Trinidad and Tobago in the December 2018 quarter and natural field decline across the portfolio.

On 30 November 2018, BHP completed the sale of its interests in the Bruce and Keith oil and gas fields in the United Kingdom to Serica Energy UK Ltd, with an effective date of 1 January 2018.

Projects

 
Project and              Capital expenditure      Initial production 
 ownership                       US$M                target date        Capacity                Progress 
North West Shelf                           216                    CY19  To maintain LNG plant   First production 
Greater Western                                                         throughput from the     achieved in October 
Flank-B                                                                 North West Shelf        2018, ahead of 
(Australia)                                                             operations.             schedule and below 
16.67% (non-operator)                                                                           budget. The overall 
                                                                                                project is 98% 
                                                                                                complete. 
Mad Dog Phase 2                          2,154                    CY22  New floating            On schedule and 
 (US Gulf of Mexico)                                                    production facility     budget. The overall 
 23.9% (non-operator)                                                   with the capacity to    project is 37% 
                                                                        produce up to 140,000   complete. 
                                                                        gross barrels 
                                                                        of crude oil per day. 
 

During the December 2018 quarter, the Bass Strait West Barracouta project was approved. The A$200 million (BHP share) investment is expected to produce first gas in the 2021 calendar year to help offset Bass Strait production decline, and to deliver competitive returns.

On 8 January 2019, BP (the operator) announced the sanction of the Atlantis Phase 3 project. Approval from BHP's Board will be sought during the March 2019 quarter. Study work continues on the Ruby project in Trinidad and Tobago.

4

Petroleum exploration

Exploration and appraisal wells drilled during the December 2018 quarter are summarised below.

 
                                                                                                                                       Total 
                                                                     Formation                                               Water      well 
Well                                  Location           Target         age            BHP equity           Spud date        depth     depth                                Status 
Samurai-2 ST01 (sidetrack)    US Gulf of Mexico GC476        Oil         Miocene                  50%      25 August 2018   1,088 m   10,088 m   Plugged and abandoned 
                                                                                    (Murphy Operator) 
Concepcion-1                  Trinidad & Tobago              Gas    Pleistocene/                  65%   30 September 2018   1,721 m    3,506 m   No commercial hydrocarbons encountered; plugged and abandoned 
                                Block TTDAA 5                           Pliocene       (BHP Operator) 
Trion-2DEL                    Mexico                         Oil          Eocene                  60%    15 November 2018   2,379 m    4,659 m   Hydrocarbons encountered 
    Block AE-0093                                                                      (BHP Operator) 
 

In the US Gulf of Mexico, a sidetrack of the Samurai-2 exploration well commenced on 25 August 2018 to further appraise the discovery, and was plugged and abandoned on 2 November 2018 after delineating the Samurai discovery. Appraisal and development planning is in progress. In the Western US Gulf of Mexico, the Ocean Bottom Node(5) seismic acquisition is expected to be completed in the March 2019 quarter. This is the world's first deepwater exploration ocean bottom node seismic acquisition.

In Trinidad and Tobago, the Concepcion-1 well was spud on 30 September 2018 to further test the Magellan play, with no commercial hydrocarbons encountered. The well was plugged and abandoned on 25 October 2018. This completed Phase 2 of our deepwater exploration drilling campaign in Trinidad and Tobago.

In Mexico, we spud the Trion-2DEL appraisal well on 15 November 2018 and encountered oil in line with expectations. This was the first well drilled by an international operator in the Mexican deepwater. A downdip sidetrack of the Trion-2DEL well commenced on 4 January 2019 to further appraise the field, including the oil water contact.

BHP was successful in its bids to acquire a 100 per cent interest in, and operatorship of, two exploration licences for blocks 8 and 12 in the Orphan Basin, offshore Eastern Canada. BHP's aggregate bid amount of US$625 million reflects the costs of the drilling and seismic work likely to be performed during the exploration phase, although there is no minimum work program under the licence agreements. BHP's minimum commitment under the licence agreements, if no work is performed, is approximately US$119 million for block 8 and US$38 million for block 12.

Petroleum exploration expenditure for the December 2018 half year was US$316 million, of which US$166 million was expensed. A US$750 million exploration and appraisal program is being executed for the 2019 financial year.

Onshore US - Discontinued operations

The Onshore US sales process was completed on 31 October 2018, with the rights to the economic profits transferring to the purchasers from 1 July 2018. Onshore US production for the July 2018 to October 2018 period was 26 MMboe, with drilling and development expenditure of US$0.4 billion. Our operated rig count remained unchanged at five, with two rigs at Eagle Ford, two rigs at Permian and one at Haynesville. We continue to provide certain transitional services to BP for up to nine months following completion, however no further production will be reported by BHP.

Copper

Production

 
                                                                                      Dec Q18 
                                                                  Dec H18   Dec Q18      vs 
                                                                     vs        vs       Sep 
                                   Dec H18          Dec Q18        Dec H17   Dec Q17    Q18 
Copper (kt)                                825               416      (1%)      (3%)       2% 
Zinc (t)                                54,795            24,237      (6%)     (17%)    (21%) 
Uranium oxide concentrate (t)            1,495               936       33%      285%      67% 
 

Copper - Total copper production decreased by one per cent to 825 kt. Guidance for the 2019 financial year has been increased to between 1,645 and 1,740 kt and reflects the retention of Cerro Colorado.

5

Escondida copper production was broadly unchanged at 580 kt as higher concentrator throughput and improved recoveries offset the impact of expected lower copper grades. Production guidance remains unchanged at between 1,120 and 1,180 kt for the 2019 financial year.

Pampa Norte copper production decreased by 17 per cent to 105 kt and reflects planned maintenance and a production outage at Spence following a fire at the electro-winning plant in September 2018. Record ore milled was achieved in the half year at both Spence and Cerro Colorado. Spence returned to full capacity during the December 2018 quarter, with production guidance of between 160 and 175 kt unchanged for the 2019 financial year. In the December 2018 quarter, BHP and EMR Capital agreed to terminate their agreement for the sale and purchase of Cerro Colorado after it became clear that the financing conditions of the transaction would not be satisfied by the end of the 2018 calendar year. Production at Cerro Colorado for the 2019 financial year is expected to be between 60 and 70 kt.

Olympic Dam copper production increased by 20 per cent to 65 kt as a result of the major smelter maintenance campaign in the prior period, which was partially offset by an unplanned acid plant outage in August 2018. Surface operations resumed at the end of October 2018 following completion of acid plant remediation works. Underground operations continue to progress into the Southern Mine Area, with record development kilometres achieved and the mine's third decline becoming fully operational in the quarter. Production guidance for the 2019 financial year remains unchanged at between 170 and 180 kt.

Antamina copper production increased by eight per cent to 75 kt due to higher head grades. Production guidance for the 2019 financial year remains unchanged at approximately 135 kt for copper and approximately 85 kt for zinc.

Projects

 
                                     Initial 
                         Capital    production 
Project and            expenditure    target 
 ownership                US$M         date     Capacity                                                                                             Progress 
 Spence Growth Option        2,460        FY21   New 95 ktpd concentrator is expected to increase Spence's payable copper in concentrate production   On schedule and budget. The overall p 
                                                  by approximately 185 ktpa in the first 10 years of operation and extend the mining operations       roject is 34% complete. 
                                                  by more than 50 years. 
   (Chile) 
   100% 
 

Iron Ore

Production

 
                                  Dec H18   Dec Q18   Dec Q18 
                                     vs        vs        vs 
                Dec H18  Dec Q18   Dec H17   Dec Q17   Sep Q18 
Iron ore (kt)   119,226   57,835        2%      (6%)      (6%) 
 

Iron ore - Total iron ore production increased by two per cent to 119 Mt (135 Mt on a 100 per cent basis). Guidance for the 2019 financial year remains unchanged at between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per cent basis.

At WAIO, increased volumes reflected record production at Jimblebar and the impact from the Mt Whaleback fire in the prior period. This was partially offset by the impact of planned maintenance in the September 2018 quarter and a train derailment on 5 November 2018 which resulted in the suspension of rail operations for five days and a production impact of approximately 4 Mt. During the rail outage, mine stockpile levels were built and are expected to be partially drawn down in the March 2019 quarter.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.

Projects

 
                              Initial 
                  Capital    production 
Project and     expenditure    target 
 ownership         US$M         date                                              Capacity                                                           Progress 
 South Flank          3,061        CY21   Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi   On schedule and budget. The overall p 
                                           mine.                                                                                       roject is 21% complete. 
   (Australia) 
   85% 
 

6

Coal

Production

 
                                            Dec H18   Dec Q18   Dec Q18 
                                               vs        vs        vs 
                          Dec H18  Dec Q18   Dec H17   Dec Q17   Sep Q18 
Metallurgical coal (kt)    20,630   10,272        2%        6%      (1%) 
Energy coal (kt)           13,307    6,667      (5%)      (9%)        0% 
 

Metallurgical coal - Metallurgical coal production increased by two per cent to 21 Mt. Guidance for the 2019 financial year remains unchanged at between 43 and 46 Mt, with volumes weighted to the second half of the year as expected.

At Queensland Coal, increased production was supported by record production at South Walker Creek and higher wash-plant throughput at Poitrel following the purchase of the Red Mountain processing facility. This increase was partially offset by the scheduled longwall move at Broadmeadow which was successfully completed during the quarter.

The Caval Ridge Southern Circuit project was completed according to plan with the conveying of first coal in October 2018.

Energy coal - Energy coal production decreased by five per cent to 13 Mt. Guidance for the 2019 financial year remains unchanged at approximately 28 to 29 Mt.

New South Wales Energy Coal production decreased by four per cent as a result of a higher average strip ratio. Cerrejón production decreased by seven per cent due to mine sequence changes.

Other

Nickel production

 
                                Dec H18   Dec Q18   Dec Q18 
                                   vs        vs        vs 
              Dec H18  Dec Q18   Dec H17   Dec Q17   Sep Q18 
Nickel (kt)      39.5     18.1     (15%)     (22%)     (15%) 
 

Nickel - Nickel West production decreased by 15 per cent to 40 kt as operations were suspended following a fire at the Kalgoorlie smelter in September 2018. The smelter returned to operation on 1 October 2018, with full repairs now expected to be completed in the March 2019 quarter. Planned maintenance at the Kwinana refinery was brought forward to align with the smelter outage and, as a result, production guidance for the 2019 financial year remains unchanged and is expected to be broadly in line with the 2018 financial year.

Potash project

 
Project and    Investment 
 ownership        US$M                                             Scope                                                                    Progress 
Jansen Potash       2,700   Investment to finish the excavation and lining of the production and service shafts,   The project is 82% complete and within the approved budget. 
                             and to                                                                                 The main activity for the quarter 
                            continue the installation of essential surface infrastructure and utilities.           focussed on removing the boring equipment from both shafts. 
  (Canada) 
  100% 
 

Minerals exploration

Minerals exploration expenditure for the December 2018 half year was US$81 million, of which US$56 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Peru, Canada, South Australia and the South-West United States.

Consistent with our exploration focus on copper, in September 2018, BHP acquired an initial 6.1 per cent interest in SolGold Plc (SolGold), the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador. On 15 October 2018, BHP entered into an agreement to acquire an additional 100 million shares in SolGold, for an investment of US$59 million, with our total interest now approximately 11.2 per cent.

7

In November 2018, BHP confirmed identification of a potential new iron oxide, copper, gold (IOCG) mineralised system, located 65 kilometres to the south east of BHP's operations at Olympic Dam in South Australia. BHP is evaluating and interpreting the results reported and planning a further drilling program, to commence in early in the 2019 calendar year.

Variance analysis relates to the relative performance of BHP and/or its operations during the December 2018 half year compared with the December 2017 half year, 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. Copper equivalent production based on 2018 financial year average realised prices.

The following footnotes apply to this Operational Review:

   (1)   Excludes production from Onshore US. 

(2) 2019 financial year unit cost guidance: Conventional Petroleum <US$11/boe, Escondida <US$1.15/lb, WAIO <US$14/t, Queensland Coal US$68-72/t and NSWEC US$43-48/t; based on exchange rates of AUD/USD 0.75 and USD/CLP 663.

   (3)   IFRS15 Revenue from Contracts with Customers became effective for the Group from 1 July 2018. 

(4) Underlying EBIT and Underlying EBITDA are used to reflect the underlying performance of BHP. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items. Underlying EBITDA is Underlying EBIT before depreciation, amortisation and impairment.

   (5)   WGOM OBN 2018 Seismic Permit is OCS Permit T18-010. 

The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); 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); metre (m); million barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic feet (Mscf); 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', 'Group', 'BHP Group', 'we', 'us', 'our' and ourselves' are used to refer to BHP Group Limited, BHP Group Plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 27 'Subsidiaries' in section 5.1 of BHP's 30 June 2018 Annual Report on Form 20-F, unless stated otherwise. 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.

8

Further information on BHP can be found at: bhp.com

 
Media Relations                  Investor Relations 
Email: media.relations@bhp.com   Email: investor.relations@bhp.com 
Australia and Asia               Australia and Asia 
Matthew Nette                    Tara Dines 
Tel: +65 6421 6719 Mobile: +65   Tel: +61 3 9609 2222 Mobile: +61 
 9169 1017                        499 249 005 
United Kingdom and South Africa  United Kingdom and South Africa 
Neil Burrows                     Elisa Morniroli 
Tel: +44 20 7802 7484 Mobile:    Tel: +44 20 7802 7611 Mobile: 
 +44 7786 661 683                 +44 7825 926 646 
North America                    Americas 
Judy Dane                        James Wear 
Tel: +1 713 961 8283 Mobile: +1  Tel: +1 713 993 3737 Mobile: +1 
 713 299 5342                     347 882 3011 
 
 
BHP Group Limited ABN 49 004 028   BHP Group Plc Registration number 
 077                                3196209 
LEI WZE1WSENV6JSZFK0JC28           LEI 549300C116EOWV835768 
Registered in Australia            Registered in England and Wales 
Registered Office: Level 18, 171   Registered Office: Nova South, 
 Collins Street                     160 Victoria Street 
Melbourne Victoria 3000 Australia  London SW1E 5LB United Kingdom 
Tel +61 1300 55 4757 Fax +61 3     Tel +44 20 7802 4000 Fax +44 20 
 9609 3015                          7802 4111 
 

Members of the BHP Group which is

headquartered in Australia

Follow us on social media

9

Production summary

 
                                                        Quarter ended                     Year to date 
                                     BHP       Dec      Mar       Jun      Sep      Dec       Dec       Dec 
                                   interest    2017     2018      2018     2018     2018      2018      2017 
Petroleum (1) 
Petroleum 
Conventional 
    Crude oil, condensate 
     and NGL (Mboe)                           14,869   13,960    13,486   14,087   14,497    28,584    29,959 
    Natural gas (bcf)                           96.1     82.9      90.7    112.3     93.9     206.2     203.4 
 
    Total (Mboe)                              30,886   27,777    28,603   32,804   30,147    62,951    63,859 
 
 
 
Total petroleum production 
 (MMboe)                                        48.4     44.7      49.0     52.8     36.1      88.9      98.7 
 
Copper (2) 
Copper 
Payable metal in concentrate 
 (kt) 
    Escondida (3)                     57.5%    238.5    244.9     246.1    240.0    212.6     452.6     434.8 
    Antamina                          33.8%     33.8     35.2      34.6     37.0     38.3      75.3      69.7 
 
    Total                                      272.3    280.1     280.7    277.0    250.9     527.9     504.5 
 
Cathode (kt) 
    Escondida (3)                     57.5%     76.1     69.4      70.1     55.4     71.9     127.3     148.0 
    Pampa Norte (4)                    100%     68.4     66.8      70.6     43.4     61.8     105.2     126.4 
    Olympic Dam                        100%     12.2     40.5      42.0     33.3     31.6      64.9      54.2 
 
    Total                                      156.7    176.7     182.7    132.1    165.3     297.4     328.6 
 
 
 
Total copper (kt)                              429.0    456.8     463.4    409.1    416.2     825.3     833.1 
 
Lead 
Payable metal in concentrate 
 (t) 
    Antamina                          33.8%    1,009      464       546      563      600     1,163     2,424 
 
    Total                                      1,009      464       546      563      600     1,163     2,424 
 
Zinc 
Payable metal in concentrate 
 (t) 
    Antamina                          33.8%   29,054   25,562    35,983   30,558   24,237    54,795    58,255 
 
    Total                                     29,054   25,562    35,983   30,558   24,237    54,795    58,255 
 
Gold 
Payable metal in concentrate 
 (troy oz) 
    Escondida (3)                     57.5%   50,279   59,953    68,345   63,578   73,726   137,304   100,804 
    Olympic Dam (refined gold)         100%   15,969   28,989    33,497   23,471   17,856    41,327    29,070 
 
    Total                                     66,248   88,942   101,842   87,049   91,582   178,631   129,874 
 
 
 

10

 
                                                        Quarter ended                Year to date 
                                       BHP       Dec     Mar     Jun     Sep      Dec     Dec     Dec 
                                     interest    2017    2018    2018    |2018   2018     2018    2017 
Silver 
Payable metal in concentrate 
 (troy koz) 
    Escondida (3)                       57.5%   2,193   2,339   2,527    1,997   2,570   4,567   3,930 
    Antamina                            33.8%   1,331   1,189   1,321    1,309   1,178   2,487   2,927 
    Olympic Dam (refined silver)         100%     135     248     278      213     212     425     266 
 
    Total                                       3,659   3,776   4,126    3,519   3,960   7,479   7,123 
 
Uranium 
Payable metal in concentrate 
 (t) 
    Olympic Dam                          100%     243   1,118   1,123      559     936   1,495   1,123 
 
    Total                                         243   1,118   1,123      559     936   1,495   1,123 
 
Molybdenum 
Payable metal in concentrate 
 (t) 
    Antamina                            33.8%     579     420     261      464     417     881     981 
 
    Total                                         579     420     261      464     417     881     981 
 
 
 

11

Production summary

 
                                                  Quarter ended                    Year to date 
                               BHP       Dec      Mar      Jun      Sep      Dec       Dec       Dec 
                             interest    2017     2018     2018     |2018    2018      2018      2017 
Iron Ore 
Iron Ore 
Production (kt) (5) 
    Newman                        85%   18,317   16,412   18,500   16,378   17,578    33,956    32,159 
    Area C Joint Venture          85%   13,575   12,802   12,041   11,696   10,280    21,976    26,674 
    Yandi Joint Venture           85%   16,348   15,802   17,339   16,870   15,627    32,497    30,907 
    Jimblebar (6)                 85%    4,583    4,669   15,092   16,333   14,320    30,653    10,866 
    Wheelarra                     85%    8,734    8,006      614      114       30       144    16,538 
    Samarco                       50%        -        -        -        -        -         -         - 
 
    Total                               61,557   57,691   63,586   61,391   57,835   119,226   117,144 
 
Coal 
Metallurgical coal 
Production (kt) (7) 
    BMA                           50%    7,394    7,983    9,220    7,744    7,694    15,438    15,690 
    BHP Mitsui Coal (8)           80%    2,291    2,396    2,789    2,614    2,578     5,192     4,562 
 
    Total                                9,685   10,379   12,009   10,358   10,272    20,630    20,252 
 
Energy coal 
Production (kt) 
    Australia                    100%    4,383    3,662    6,261    3,982    4,311     8,293     8,618 
    Colombia                    33.3%    2,914    2,444    2,762    2,658    2,356     5,014     5,411 
 
    Total                                7,297    6,106    9,023    6,640    6,667    13,307    14,029 
 
Other 
Nickel 
Saleable production (kt) 
    Nickel West (9)              100%     23.1     21.1     25.6     21.4     18.1      39.5      46.4 
 
    Total                                 23.1     21.1     25.6     21.4     18.1      39.5      46.4 
 
Cobalt 
Saleable production (t) 
    Nickel West                  100%      263      240      277      249      154       403       543 
 
    Total                                  263      240      277      249      154       403       543 
 
 
 

(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.

   (2)   Metal production is reported on the basis of payable metal. 
   (3)   Shown on a 100% basis. BHP interest in saleable production is 57.5%. 
   (4)   Includes Cerro Colorado and Spence. 
   (5)   Iron ore production is reported on a wet tonnes basis. 
   (6)   Shown on a 100% basis. BHP interest in saleable production is 85%. 

(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

   (8)   Shown on a 100% basis. BHP interest in saleable production is 80%. 
   (9)   Production restated to include other nickel by-products. 

Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.

12

Production and sales report

 
                                                       Quarter ended                Year to date 
                                            Dec     Mar     Jun     Sep     Dec     Dec      Dec 
                                            2017    2018    2018    2018    2018    2018     2017 
Petroleum - Conventional 
 (1) 
Bass Strait 
     Crude oil and condensate   (Mboe)     1,513   1,126   1,361   1,653   1,401    3,054   3,328 
     NGL                        (Mboe)     1,584   1,170   1,428   1,840   1,447    3,287   3,534 
     Natural gas                (bcf)       32.9    20.5    29.9    35.1    25.2     60.3    75.5 
 
     Total petroleum products   (MMboe)      8.6     5.7     7.8     9.3     7.0     16.4    19.4 
 
North West Shelf 
     Crude oil and condensate   (Mboe)     1,442   1,377   1,267   1,514   1,520    3,034   2,916 
     NGL                        (Mboe)       200     210     186     242     206      448     427 
     Natural gas                (bcf)       36.2    35.8    34.2    36.6    37.5     74.1    72.4 
 
     Total petroleum products   (MMboe)      7.7     7.6     7.2     7.9     8.0     15.8    15.4 
 
Pyrenees 
     Crude oil and condensate   (Mboe)     1,210   1,250   1,168     282   1,101    1,383   2,720 
 
     Total petroleum products   (MMboe)      1.2     1.3     1.2     0.3     1.1      1.4     2.7 
 
Other Australia (2) 
     Crude oil and condensate   (Mboe)         8       8       7       7       8       15      17 
     Natural gas                (bcf)       13.3    13.4    13.9    13.8    13.9     27.7    29.4 
 
     Total petroleum products   (MMboe)      2.2     2.2     2.3     2.3     2.3      4.6     4.9 
 
Atlantis (3) 
     Crude oil and condensate   (Mboe)     3,377   3,459   3,471   3,190   3,802    6,992   6,399 
     NGL                        (Mboe)       195     248     217     215     268      483     413 
     Natural gas                (bcf)        1.8     1.8     1.5     1.5     1.9      3.4     3.4 
 
     Total petroleum products   (MMboe)      3.9     4.0     3.9     3.7     4.4      8.0     7.4 
 
Mad Dog (3) 
     Crude oil and condensate   (Mboe)     1,231   1,140     581   1,270   1,158    2,428   2,251 
     NGL                        (Mboe)        72      55      27      61      54      115     116 
     Natural gas                (bcf)        0.2     0.2     0.1     0.2     0.2      0.4     0.3 
 
     Total petroleum products   (MMboe)      1.3     1.2     0.6     1.4     1.2      2.6     2.4 
 
Shenzi (3) 
     Crude oil and condensate   (Mboe)     2,513   2,323   2,110   2,016   2,024    4,040   4,804 
     NGL                        (Mboe)       184     140     151     122     121      243     325 
     Natural gas                (bcf)        0.5     0.4     0.4     0.4     0.4      0.8     0.9 
 
     Total petroleum products   (MMboe)      2.8     2.5     2.3     2.2     2.2      4.4     5.3 
 
 

13

Production and sales report

 
                                                              Quarter ended                        Year to date 
                                             Dec        Mar        Jun        Sep        Dec       Dec      Dec 
                                             2017       2018       2018       2018       2018      2018     2017 
Petroleum - Conventional 
 (1) 
  (continued) 
Trinidad/Tobago 
     Crude oil and condensate   (Mboe)          135        232        233        447        200      647      253 
     Natural gas                (bcf)          10.5       10.0        9.8       24.0       14.0     38.0     20.2 
 
     Total petroleum products   (MMboe)         1.9        1.9        1.9        4.4        2.5      7.0      3.6 
 
Other Americas (3) 
 (4) 
     Crude oil and condensate   (Mboe)          207        189        313        207        218      425      436 
     NGL                        (Mboe)            3          3         22          3          4        7        8 
     Natural gas                (bcf)           0.1          -        0.3          -        0.1      0.1      0.2 
 
     Total petroleum products   (MMboe)         0.2        0.2        0.4        0.2        0.2      0.4      0.5 
 
UK (5) 
     Crude oil and condensate   (Mboe)           22         43         38         36         36       72       62 
     NGL                        (Mboe)           13         18         18         21         21       42       52 
     Natural gas                (bcf)           0.6        0.8        0.6        0.7        0.7      1.4      1.1 
 
     Total petroleum products   (MMboe)         0.1        0.2        0.2        0.2        0.2      0.3      0.3 
 
Algeria 
     Crude oil and condensate   (Mboe)          960        969        888        961        908    1,869    1,898 
 
     Total petroleum products   (MMboe)         1.0        1.0        0.9        1.0        0.9      1.9      1.9 
 
Petroleum - Total 
 (1) 
    Conventional 
     Crude oil and condensate   (Mboe)       12,618     12,116     11,437     11,583     12,376   23,959   25,084 
     NGL                        (Mboe)        2,251      1,844      2,049      2,504      2,121    4,625    4,875 
     Natural gas                (bcf)          96.1       82.9       90.7      112.3       93.9    206.2    203.4 
 
     Total                      (Mboe)       30,886     27,777     28,603     32,804     30,147   62,951   63,859 
 
 
 
Total petroleum production 
 (MMboe)                                   48,392.0   44,716.0   48,952.0   52,854.7   36,061.0   88,916   98,678 
 
 

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.

   (2)   Other Australia includes Minerva and Macedon. 
   (3)   Gulf of Mexico volumes are net of royalties. 
   (4)   Other Americas includes Neptune, Genesis and Overriding Royalty Interest. 

(5) BHP completed the sale of its interest in the Bruce and Keith oil and gas fields on 30 November 2018. The sale has an effective date of 1 January 2018.

14

Production and sales report

 
                                                           Quarter ended                      Year to date 
                                            Dec       Mar       Jun       Sep       Dec       Dec       Dec 
                                            2017      2018      2018      2018      2018      2018      2017 
Copper 
Metals production is payable metal 
 unless otherwise stated. 
 
Escondida, Chile (1) 
    Material mined               (kt)     101,371   103,385   106,788   107,260   105,580   212,840   206,238 
    Sulphide ore milled          (kt)      30,260    32,203    31,732    30,513    30,507    61,020    54,340 
    Average concentrator 
     head grade                  (%)        0.98%     0.96%     0.96%     0.94%     0.87%     0.91%     1.02% 
    Production ex mill           (kt)       245.7     252.6     253.6     241.9     219.9     461.8     449.9 
 
    Production 
    Payable copper               (kt)       238.5     244.9     246.1     240.0     212.6     452.6     434.8 
    Copper cathode (EW)          (kt)        76.1      69.4      70.1      55.4      71.9     127.3     148.0 
     - Oxide leach               (kt)        27.4      24.5      27.1      19.5      23.4      42.9      49.8 
     - Sulphide leach            (kt)        48.7      44.9      43.0      35.8      48.5      84.3      98.2 
 
    Total copper                 (kt)       314.6     314.3     316.2     295.4     284.5     579.9     582.8 
 
 
                                 (troy 
    Payable gold concentrate      oz)      50,279    59,953    68,345    63,578    73,726   137,304   100,804 
                                 (troy 
    Payable silver concentrate    koz)      2,193     2,339     2,527     1,997     2,570     4,567     3,930 
 
    Sales 
    Payable copper               (kt)       236.7     228.3     260.3     216.5     229.2     445.7     431.8 
    Copper cathode (EW)          (kt)        84.1      61.7      80.9      53.2      72.3     125.5     145.7 
                                 (troy 
    Payable gold concentrate      oz)      50,279    59,953    68,345    63,578    73,726   137,304   100,804 
                                 (troy 
    Payable silver concentrate    koz)      2,193     2,339     2,527     1,997     2,570     4,567     3,930 
 

(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.

 
Pampa Norte, Chile 
    Cerro Colorado 
    Material mined         (kt)    20,191   17,766   17,918   18,488   19,875   38,363   41,572 
    Ore milled             (kt)     4,611    4,905    4,833    4,802    5,069    9,871    8,562 
    Average copper grade   (%)      0.59%    0.58%    0.58%    0.53%    0.62%    0.58%    0.60% 
 
    Production 
    Copper cathode (EW)    (kt)      17.4     13.6     19.0     14.2     19.4     33.6     30.7 
 
    Sales 
    Copper cathode (EW)    (kt)      17.7     13.7     20.9     13.8     19.0     32.8     30.0 
 
    Spence 
    Material mined         (kt)    23,096   21,463   23,103   23,007   21,661   44,668   45,410 
    Ore milled             (kt)     4,919    5,144    4,009    5,642    5,428   11,070   10,294 
    Average copper grade   (%)      1.18%    1.03%    1.11%    1.15%    1.07%    1.11%    1.20% 
 
    Production 
    Copper cathode (EW)    (kt)      51.0     53.2     51.6     29.2     42.4     71.6     95.7 
 
    Sales 
    Copper cathode (EW)    (kt)      52.2     49.8     57.1     29.7     39.1     68.8     95.2 
 

15

Production and sales report

 
                                                        Quarter ended                    Year to date 
                                           Dec      Mar      Jun      Sep      Dec       Dec       Dec 
                                           2017     2018     2018     2018     2018      2018      2017 
Copper (continued) 
Metals production is payable metal unless otherwise stated. 
Antamina, Peru 
    Material mined (100%)       (kt)      59,125   58,085   59,002   62,470   62,850   125,320   118,341 
    Sulphide ore milled 
     (100%)                     (kt)      13,098   12,166   12,973   13,197   12,912    26,109    25,920 
    Average head grades 
     - Copper                   (%)        0.89%    1.01%    0.91%    0.96%    1.02%     0.99%     0.91% 
     - Zinc                     (%)        0.93%    1.01%    1.19%    1.10%    0.85%     0.98%     0.96% 
 
    Production 
    Payable copper              (kt)        33.8     35.2     34.6     37.0     38.3      75.3      69.7 
    Payable zinc                (t)       29,054   25,562   35,983   30,558   24,237    54,795    58,255 
                                (troy 
    Payable silver               koz)      1,331    1,189    1,321    1,309    1,178     2,487     2,927 
    Payable lead                (t)        1,009      464      546      563      600     1,163     2,424 
    Payable molybdenum          (t)          579      420      261      464      417       881       981 
 
    Sales 
    Payable copper              (kt)        37.0     32.1     36.6     33.6     40.7      74.3      68.9 
    Payable zinc                (t)       30,340   26,456   33,088   31,822   26,072    57,894    55,564 
                                (troy 
    Payable silver               koz)      1,470    1,052    1,311    1,193    1,236     2,429     2,945 
    Payable lead                (t)          972      859      595      612      649     1,261     2,596 
    Payable molybdenum          (t)          693      500      388      208      535       743       861 
 
Olympic Dam, Australia 
    Material mined (1)          (kt)       1,391    2,056    2,201    2,044    2,434     4,478     3,242 
    Ore milled                  (kt)         554    2,188    2,171    1,242    2,157     3,399     2,856 
    Average copper grade        (%)        2.22%    2.36%    2.12%    2.05%    2.10%     2.08%     2.12% 
    Average uranium grade       (kg/t)      0.58     0.71     0.69     0.62     0.62      0.62      0.56 
 
    Production 
    Copper cathode (ER 
     and EW)                    (kt)        12.2     40.5     42.0     33.3     31.6      64.9      54.2 
    Uranium oxide concentrate   (t)          243    1,118    1,123      559      936     1,495     1,123 
                                (troy 
    Refined gold                 oz)      15,969   28,989   33,497   23,471   17,856    41,327    29,070 
                                (troy 
    Refined silver               koz)        135      248      278      213      212       425       266 
 
    Sales 
    Copper cathode (ER 
     and EW)                    (kt)        24.3     36.8     46.0     33.9     26.6      60.5      55.9 
    Uranium oxide concentrate   (t)          338      509    1,230      765      828     1,593     1,018 
                                (troy 
    Refined gold                 oz)      17,999   20,715   35,714   21,145   17,812    38,957    40,434 
                                (troy 
    Refined silver               koz)        118      202      307      216      177       393       337 
 

(1) Material mined refers to run of mine ore mined and hoisted.

16

Production and sales report

 
                                                    Quarter ended                    Year to date 
                                       Dec      Mar      Jun      Sep      Dec       Dec       Dec 
                                       2017     2018     2018     2018     2018      2018      2017 
Iron Ore 
Iron ore production and sales are reported on a wet tonnes basis. 
Pilbara, Australia 
    Production 
    Newman                    (kt)    18,317   16,412   18,500   16,378   17,578    33,956    32,159 
    Area C Joint Venture      (kt)    13,575   12,802   12,041   11,696   10,280    21,976    26,674 
    Yandi Joint Venture       (kt)    16,348   15,802   17,339   16,870   15,627    32,497    30,907 
    Jimblebar (1)             (kt)     4,583    4,669   15,092   16,333   14,320    30,653    10,866 
    Wheelarra                 (kt)     8,734    8,006      614      114       30       144    16,538 
 
    Total production          (kt)    61,557   57,691   63,586   61,391   57,835   119,226   117,144 
 
    Total production (100%)   (kt)    71,611   67,048   72,145   69,342   65,515   134,857   135,898 
 
 
    Sales 
    Lump                      (kt)    15,145   13,993   15,173   15,014   14,020    29,034    29,041 
    Fines                     (kt)    45,769   44,332   47,730   46,527   44,059    90,586    86,502 
 
    Total                     (kt)    60,914   58,325   62,903   61,541   58,079   119,620   115,543 
 
    Total sales (100%)        (kt)    70,733   67,799   71,385   69,421   65,758   135,179   134,055 
 
 
   (1)   Shown on a 100% basis. BHP interest in saleable production is 85%. 
 
Samarco, Brazil (1) 
    Production        (kt)     -    -   -   -    -    -    - 
 
    Sales             (kt)    14   25   -   -   10   10   14 
 

(1) Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.

17

Production and sales report

 
                                                  Quarter ended                  Year to date 
                                     Dec     Mar      Jun      Sep      Dec      Dec      Dec 
                                     2017    2018     2018     2018     2018     2018     2017 
Coal 
Coal production is reported on the 
 basis of saleable product. 
Queensland Coal 
    Production (1) 
    BMA 
    Blackwater              (kt)    1,470    1,384    1,849    1,704    1,680    3,384    3,455 
    Goonyella               (kt)    1,369    2,314    2,639    1,989    1,813    3,802    3,008 
    Peak Downs              (kt)    1,367    1,723    1,658    1,131    1,662    2,793    2,969 
    Saraji                  (kt)    1,198    1,240    1,201    1,111    1,288    2,399    2,612 
    Daunia                  (kt)      718      547      629      620      419    1,039    1,380 
    Caval Ridge             (kt)    1,272      775    1,244    1,189      832    2,021    2,266 
 
    Total BMA               (kt)    7,394    7,983    9,220    7,744    7,694   15,438   15,690 
 
 
    BHP Mitsui Coal (2) 
    South Walker Creek      (kt)    1,524    1,490    1,615    1,505    1,636    3,141    2,924 
    Poitrel                 (kt)      767      906    1,174    1,109      942    2,051    1,638 
 
    Total BHP Mitsui Coal   (kt)    2,291    2,396    2,789    2,614    2,578    5,192    4,562 
 
    Total Queensland Coal   (kt)    9,685   10,379   12,009   10,358   10,272   20,630   20,252 
 
 
    Sales 
    Coking coal             (kt)    6,341    7,177    8,489    7,356    7,514   14,870   14,275 
    Weak coking coal        (kt)    2,816    2,598    2,866    2,813    3,058    5,871    5,966 
    Thermal coal            (kt)      173      168       85      141      157      298      275 
 
    Total                   (kt)    9,330    9,943   11,440   10,310   10,729   21,039   20,516 
 
 
   (1)       Production figures include some thermal coal. 
   (2)       Shown on a 100% basis. BHP interest in saleable production is 80%. 

18

 
NSW Energy Coal, Australia 
    Production               (kt)    4,383   3,662   6,261   3,982   4,311   8,293   8,618 
 
    Sales 
    Export thermal coal      (kt)    4,048   3,181   5,795   3,549   4,809   8,358   7,670 
    Inland thermal coal      (kt)      411     400     160     332     393     725     816 
 
    Total                    (kt)    4,459   3,581   5,955   3,881   5,202   9,083   8,486 
 
 
Cerrejón, Colombia 
    Production               (kt)    2,914   2,444   2,762   2,658   2,356   5,014   5,411 
 
    Sales thermal coal 
     - export                (kt)    2,619   2,480   2,763   2,589   2,297   4,886   5,137 
 

Production and sales report

 
                                               Quarter ended                Year to date 
                                    Dec     Mar     Jun     Sep     Dec     Dec      Dec 
                                    2017    2018    2018    2018    2018    2018     2017 
Other 
Nickel production is reported on the basis of saleable product 
 
Nickel West, Australia 
    Mt Keith 
    Nickel concentrate     (kt)     49.8    44.9    55.6    50.2    44.9     95.1   104.2 
    Average nickel grade   (%)      20.3    21.3    18.8    18.9    19.8     38.7    40.7 
 
    Leinster 
    Nickel concentrate     (kt)     87.6    54.7    78.4    78.8    65.3    144.1   166.3 
    Average nickel grade   (%)       8.8     9.3     9.8     8.4     8.4     16.8    18.1 
 
    Saleable production 
    Refined nickel (1) 
     (2)                   (kt)     17.7    19.2    18.5    19.8    16.3     36.1    33.7 
    Intermediates and 
     nickel by-products 
     (1) (3)               (kt)      5.4     1.9     7.1     1.6     1.8      3.4    12.7 
 
    Total nickel (1)       (kt)     23.1    21.1    25.6    21.4    18.1     39.5    46.4 
 
 
    Cobalt by-products     (t)       263     240     277     249     154      403     543 
 
    Sales 
    Refined nickel (1) 
     (2)                   (kt)     17.7    19.5    17.5    19.3    17.3     36.6    34.0 
    Intermediates and 
     nickel by-products 
     (1) (3)               (kt)      6.9     2.5     6.3     2.2     2.1      4.3    11.9 
 
    Total nickel (1)       (kt)     24.6    21.9    23.8    21.5    19.4     40.9    45.9 
 
 
    Cobalt by-products     (t)       263     240     277     249     154      403     543 
 
   (1)   Production and sales restated to include other nickel by-products. 
   (2)   High quality refined nickel metal, including briquettes and powder. 
   (3)   Nickel contained in matte and by-product streams. 

19

Production and sales report

 
                                                        Quarter ended                  Year to date 
                                           Dec      Mar      Jun      Sep      Dec     Dec      Dec 
                                           2017     2018     2018     2018     2018    2018     2017 
Onshore US - Discontinued operations (1)(2) 
 
Eagle Ford (3) 
    Crude oil and condensate   (Mboe)      3,720    2,838    3,826    3,256   1,035    4,291    7,177 
    NGL                        (Mboe)      2,100    1,555    1,767    1,919     614    2,533    3,956 
    Natural gas                (bcf)        14.4     12.6     13.9     13.8     4.3     18.1     28.2 
 
    Total petroleum products   (MMboe)       8.2      6.5      7.9      7.5     2.4      9.8     15.8 
 
 
Permian (3) 
    Crude oil and condensate   (Mboe)      1,142    1,398    1,903    1,478     631    2,109    2,321 
    NGL                        (Mboe)        460      465      770      687     284      971    1,047 
    Natural gas                (bcf)         3.6      4.1      6.4      4.8     1.9      6.7      8.1 
 
    Total petroleum products   (MMboe)       2.2      2.5      3.7      3.0     1.2      4.2      4.7 
 
 
Haynesville (3) 
    Crude oil and condensate   (Mboe)          1        -        -       11       -       11        1 
    NGL                        (Mboe)          -        -        -        -       -        -        - 
    Natural gas                (bcf)        22.0     28.7     33.1     39.0    13.9     52.9     43.5 
 
    Total petroleum products   (MMboe)       3.7      4.8      5.5      6.5     2.3      8.8      7.3 
 
 
Fayetteville (4) 
    Natural gas                (bcf)        20.5     18.7     19.1     18.6       -     18.6     42.1 
 
    Total petroleum products   (MMboe)       3.4      3.1      3.2      3.1       -      3.1      7.0 
 
 
Onshore US 
    Crude oil and condensate   (Mboe)      4,863    4,236    5,729    4,745   1,666    6,411    9,499 
    NGL                        (Mboe)      2,560    2,020    2,537    2,606     898    3,504    5,003 
    Natural gas                (bcf)        60.5     64.1     72.5     76.2    20.1     96.3    121.9 
 
    Total                      (Mboe)     17,506   16,939   20,349   20,051   5,914   25,965   34,819 
 
 

(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.

(2) Volumes are net of mineral holder royalties.

(3) BHP completed the sale of its interests in the Eagle Ford, Haynesville and Permian assets on 31 October 2018.

(4) BHP completed the sale of its Fayetteville assets on 28 September 2018.

20

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR BBMBTMBTTTRL

(END) Dow Jones Newswires

January 22, 2019 02:00 ET (07:00 GMT)

1 Year Bhp Chart

1 Year Bhp Chart

1 Month Bhp Chart

1 Month Bhp Chart

Your Recent History

Delayed Upgrade Clock