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Investing.com - Citi has reiterated a Buy rating on BHP Billiton (NYSE:BBL) Ltd. (NYSE:BHP) with a price target of GBP43.00, following the mining giant’s strong fourth-quarter production results that exceeded expectations in copper, iron ore, and coal.
BHP finished fiscal year 2025 with better-than-expected production and guided net debt to approximately US$13 billion, lower than Citi’s previous estimate of US$14.8 billion. The company achieved price realization for iron ore at 98.2% of the benchmark 62% Fe index, though production guidance for FY26 remains broadly flat.
The company reported that its Jansen Stage 1 potash project is now 68% complete, but faces delays and cost increases. BHP has pushed back the project’s start-up to mid-2027 from the previous target of late 2026, while increasing its capital expenditure estimate to US$7.0-7.4 billion from the earlier projection of US$5.7 billion.
According to BHP, the Jansen cost increase stems from inflationary pressures, real cost escalation, design development, scope changes, and lower-than-expected productivity during construction. The company plans to provide an updated timeline and optimized capital expenditure estimate for Jansen Stage 1 in the second half of fiscal year 2026.
BHP is also considering a two-year extension for Jansen Stage 2 execution, potentially moving it from FY29 to FY31, with timing estimates expected during the first half of FY26 and optimized capital expenditure figures in the second half of FY26.
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