BHP shares fall as iron ore output disappoints due to Samarco shutdown

 
Jessica Morris
Follow Jessica
BHP Billiton Announces Record Financial Results
BHP isn't yet able to provide an update on the financial impact of the disaster (Source: Getty)

Shares in BHP Billiton fell today, after iron ore output from the world's biggest miner came in below expectations.

Iron ore output fell 2.58 per cent on an annual basis to 227m metric tonnes in the year ended 30 June, below its original estimate of 247m metric tonnes.

Read more: Industry veteran to head firm formed from Tata's long products division

This came as record Australian volumes were offset by the suspension of operations at Samarco, due to the mine tragedy. The firm added that it isn't yet able to provide an update on the financial impact of the disaster.

Its shares fell as much as 4.28 per cent to 907.90p this afternoon, before parring some losses to trade at 910.10p.

Petroleum output fell six per cent to 240,000 barrels of oil equivalent, while copper slumped eight per cent to 1.6m metric tonnes and energy coal tumbled 16 per cent to 34m metric tonnes. However, metallurgical coal inched up one per cent to 43m metric tonnes.

Andrew Mackenzie, chief executive of BHP Billiton, said: "Over the next 12 months, we expect volumes and costs across our minerals businesses to benefit from our continued drive to safely improve productivity."

Read more: Anglo slips as bad weather takes shine off copper target

"We can create significant value through further cost reductions, taking advantage of latent capacity in our assets and investing in low-capital projects."

"These initiatives are expected to grow production by five per cent in copper, up to four per cent in iron ore and three per cent in metallurgical coal in the next financial year."

Related articles