After visiting BHP Group's new South flank iron ore operations, the analyst notes the ramp-up is progressing well. A key highlight for the analyst was 40% of the workforce is female.

The tour also took in the company's Mining Area C (MAC) operations in the Pilbara region. The broker considers the operations will be long life and low cost. Management sees a third of the resource base being very close to the MAC hub.

Despite Morgan Stanley 's view that management is conservative in maintenaning production guidance, the trip highlighted complexity in adding capacity to ageing infrastructure.

The Equal-weight rating and $43.20 target are retained. Industry View: Attractive.

Sector: Materials.

Target price is $43.20.Current Price is $40.76. Difference: $2.44 - (brackets indicate current price is over target). If BHP meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena