BHP, Fortescue Offer Positive Production Outlook

Marcus Jacob
16 Apr, 2014
New York City

Australian market indexes opened higher and gained 0.6%. BHP Billiton lifted its annual production outlook and Fortescue Metals reaffirmed its iron ore production estimate. National Broadband Netowrk said quarterly loss widened.

[R]5:00 PM Sydney – Australian market indexes opened higher and gained 0.6%. BHP Billiton lifted its annual production outlook and Fortescue Metals reaffirmed its iron ore production estimate. National Broadband said quarterly loss widened.[/R]

Australian stocks opened higher after China reported better than expected quarterly growth rate. Australian dollar slipped a fraction.

In addition, BHP Billiton revised higher its iron ore production and Fortescue Metals reaffirmed its production outlook.

Australian dollar closed at 93.74 U.S. cents and stock market trading turnover slipped to 605 million shares worth $3.57 billion.

The ASX 200 index rose 32.10 or 0.6% to 5,420.30 and the broader All Ordinaries gained 32.30 to 5,412.60.

China reported economy expanded at 7.4% annual rate in the first-quarter to March, ahead of expectations set by many economists.

Stocks in Review

Rio Tinto rose 2 cents to $63.37.

BHP gained 16 cent to $37.94 after the iron-ore producer forecasted to produce steel-making ingredient above the expectation.

The miner estimated to produce 217 million tons of iron ore from its Australian mines in the year ending in June, up from the earlier estimate of 212 million tons. In last financial year, BHP produced 187 million tons of iron ore from its Australian mines.

In a quarterly report, BHP said its independent production of iron-ore climbed 23% to 49.6 million tons and production of metallurgical coal surged 28% and petroleum output totaled 60.9 million barrels of oil equivalent, up 10% from a year earlier.

Total group aluminum production in the quarter declined 6% to 286,000 tons from a year ago.

Woodside Petroleum Limited jumped 1.1% to $39.59.

Westpac Banking Corp increased 22 cents to $34.59.

Fortescue Metals Group Limited gained 1.1% to $5.39 after the iron ore producer lifted its output in the third quarter by 56% and the miner shipped 30.8 million tons from 19.4 million tons a year earlier and reaffirmed its full-year production guidance of 127 million tons.

Fortescue said mined output declined 8% to 29.6 million tons and completed its expansion to produce 155 million tons and expected to produce 41.6 million tons of iron ore in the June quarter.

National Broadband Network Co Ltd., the said total revenue in the third-quarter climbed $69.8 million from $47 million a year ago.

Net loss in the quarter widened to $1.14 billion compared to $679.9 million a year earlier.