The Q1 production numbers for BHP were on the soft side with weaker production and shipments of Iron ore and coal offsetting slightly better output in Copper and Crude Oil.
The company has left its full year guidance unchanged for FY18, despite recent reports that they could miss those production levels by up to 10%.
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We expect the recent price volatility in Iron Ore and Coal to impact shares price trajectory well into FY18.
The newly appointed Chairman, Ken MacKenzie, addressed shareholders for the first time yesterday as the share price was pressured back below $26.50.
On balance, we believe that Iron Ore prices are at the upper end of the price range and a pullback into the $25.00 range is a reasonable buy level for BHP.
BHP
