CEO Andrew Mackenzie said the company had seen the early signs of a market rebalancing.

“Fundamentals suggest both oil and gas markets will improve over the next 12 to 18 months,” he said.

“Iron ore and metallurgical coal prices have been stronger than expected, although we continue to expect supply to grow more quickly than demand in the near-term.

“Together, the combination of steadier markets, continued capital discipline, improved productivity and increased volumes in copper, iron ore and metallurgical coal should further support strong free cashflow generation this financial year.”

It comes after a steady September quarter, though the company is reviewing its guidance for the Olympic Dam copper-gold-uranium mine in South Australia after a state-wide power outage.

September quarter performance allowed the company to maintain 2017 financial year production and cost guidance for all operations.

Iron ore production was 58 million tonnes, or 67Mt on a 100% basis, beating UBS’ forecast of 65.8Mt.

Pilbara production was flat as the ramp-up of Jimblebar was offset by lower volumes at Yandi.

Rail works are progressing on schedule and the company will complete the installation of a new primary crusher and additional conveying capacity in Jimblebar in the December quarter, for sustaining capital of around $US4 per tonne.

Copper production was down by 6% to 355,000 tonnes due to planned lower grades at Escondida and lower output at Olympic Dam.

Nickel production dropped by 20% quarter-on-quarter to 19,000t, but should increase by 10% over FY17.

Metallurgical coal production was up by 1% to 11Mt, while energy coal output dropped by 4% to 7Mt.

Petroleum production was down by 15% due to the deferral of development activity in the US.

BHP spent $34 million on minerals exploration during the September quarter, mainly focused on copper.

Shares in BHP gained around 1.2% yesterday to $A22.64 and were up by a similar amount in London overnight.