BHP Group (BHP), Whitehaven Coal (WHC), and Beach Energy (BPT) reported production numbers this morning, and all had one thing in common. BHP reported first-quarter copper production numbers of 410.1kt, below consensus of 430.4kt, while met coal production fell 38% due to extreme weather conditions on the east coast.  

BPT reported quarter production down 8% to 5.2MMboe, stating, “Flooding in the Cooper Basin caused shut-in of some wells and delay of well connections”. See the connection yet? This wet weather we’re experiencing is not just annoying for your beach plans on the weekend, it is having a significant impact on production numbers for some of our miners. The La Niña weather pattern is expected to persist for a while longer, bringing with it more wet weather, and potentially further impacts on production. Despite this, companies have been reluctant to downgrade guidance, yesterday, we saw RIO lower its guidance to the bottom end of its prior range, but BHP reaffirmed its full-year guidance. WHC also maintained its guidance but accompanied it with the comment, “Notwithstanding La Niña impacts and labour constraints, we remain on track”.   Founded in 1998, Marcus Today Stock Market Newsletter is a business that has built a community of like-minded investors who want to survive and thrive in the stock market. We achieve that through a combination of daily stock market education, ideas and activities.  

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