BHP Group Limited ( BHP ) shares are trading lower on Tuesday. The company reported a sequential decline in first-quarter production across all elements.

Production Update

The mining giant reported a decline of 4% quarter on quarter (Q/Q) to 493.6 kt in Copper due to weak output at Spence from lower ore grades and at Copper SA due to planned major maintenance.

For Steelmaking coal, the company saw a production decline of 5% Q/Q to 4.9 Mt owing to a planned higher strip ratio from mine sequencing.

Also, Iron ore output dipped 9% Q/Q to 64 Mt due to a decline in production at WAIO on planned maintenance.

On a year-over-year basis, production rose 4% in Copper and 8% in Steelmaking coal but declined 1% in Iron Ore.

Fiscal 2026 Outlook

The company reiterated the production outlook for Copper at 1,800 – 2,000 kt, Iron Ore at 258 – 269 Mt, and Steelmaking coal at 18 – 20 Mt.

Management Commentary

Mike Henry, BHP Chief Executive Officer said, “The long-term demand fundamentals for potash are attractive and Jansen is expected to be one of the lowest cost producers. Overall macro-economic signals for commodity demand remain resilient, and global growth forecasts are moving higher. While we expect some deceleration in growth in H2 CY25, in China we still expect GDP growth of ~5% for the year.

“In Copper, major disruptions at some of our competitors’ mines have tightened overall market fundamentals, benefitting our world-class portfolio of assets. With momentum from a strong first quarter, BHP is on track to deliver on full-year guidance and we are making progress on our growth pipeline across Australia and the Americas.”

Recent Key Events

Last week, BHP resumed iron ore sales into China, quelling speculation that Beijing had restricted purchases from the world’s top producer.

Investors can gain exposure to the stock via Exchange Traded Concepts Trust Range Global Coal Index ETF and the 2023 ETF Series Trust II GMO International Value ETF .

Price Action: BHP shares were trading lower by 1.27% to $56.08 at last check Tuesday.

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