RECORD production in iron ore and copper has helped BHP to what it describes as “robust” financial outcomes.
The company released its full-year results on 19 August in a global economy that CEO Mike Henry said had a mixed outlook.
“Growth is expected to ease to 3% or slightly below in the near-term amid shifting trade policies, yet demand for commodities remains strong, particularly in China and India,” Mr Henry said.
“Chinese copper demand outperformed in FY25, while iron ore demand was resilient, driven by strong infrastructure investment and manufacturing activity in China.
“Steelmaking coal prices have softened due to oversupply, though policy shifts in China and new blast furnace capacity in Asia are expected to support the market.
“Potash markets are expected to continue to benefit from a growing and wealthier population and the need for more sustainable agriculture.”
Mr Henry said BHP was confident in the long-term fundamentals of steelmaking materials, copper and fertilisers, which are critical to global growth, urbanisation and the energy transition.
“Backed by a diversified portfolio of large, long-life assets, disciplined low-cost operations and a strong balance sheet, BHP is well-positioned to deliver enduring value through the cycle.”
BHP met full-year production guidance across all assets, and set new records in copper and iron ore.
“Copper production exceeded 2 Mt for the first time, up 28% over the past three years. We maintained our position as the world’s lowest-cost major iron ore producer at WAIO (WA Iron Ore) where we delivered 290 Mt – a new production record.
“Underlying EBITDA was US$26 billion with a 53% margin, and underlying attributable profit was US$10.2 billion. This strong performance allowed us to determine a final dividend of 60 US cents per share.”
In each of the next two years BHP expects to spend US$11 billion in capital and exploration, reducing to US$10 billion on average each year between FY28 and FY30.
The Jansen project in Canada is estimated to deliver first potash production by mid-2027.
“We are optimising our growth program at Escondida in Chile, Copper South Australia has the potential to double production through
phased expansions and the Vicuña project in Argentina is advancing towards a multi-decade copper opportunity,” Mr Henry said.
“At WAIO, over the medium term we are targeting sustained production of greater than 305 Mtpa.
“We made meaningful progress on sustainability and remain on track to reduce operational greenhouse gas emissions by at least 30% from FY20 levels by FY30.”
BHP has also signed charter contracts for two ammonia dual-fuelled bulk carriers – to progress greenhouse gas emissions intensity reduction of its shipping – and partnered with Aurizon in South Australia to reduce truck movements and related emissions.