Shares of BHP Group (ASX: ASX:BHP) saw a notable increase of 0.53% on Wednesday, reaching AU$43.39 apiece, their highest level since mid-June. This rise comes as analysts at Macquarie forecast mixed output results for the mining giant in Q4 FY24.
Iron Ore Shipments:
Macquarie analysts expect BHP's Western Australia Iron Ore (WAIO) operations to record Q4 shipments of 78.7 million tons (mt), a significant increase from the 68.1 mt shipped in the previous quarter. For FY24, Macquarie forecasts BHP's total iron ore shipments to reach 291 mt. This is within BHP's own guidance range of 282 mt to 294 mt.
Metallurgical Coal Production
Despite the positive outlook for iron ore, Macquarie anticipates BHP will miss market consensus estimates for Q4 metallurgical coal production. This is attributed to depleted inventory positions affecting output.
Market Performance
The broader Australian mining sector (.AXMM) rose as much as 1.1%, hitting its highest level since June 17. However, BHP's stock has experienced a 14.4% decline this year, as of the last close.
BHP Group's share price gains reflect positive sentiment around its iron ore shipments, despite concerns over its metallurgical coal production. The company's performance in the upcoming quarter will be closely watched by investors, particularly in light of the mixed output expectations and the broader trends in the mining sector.