BHP Group reported a 30% increase in underlying profit to $13.2 billion for the year ending June 30. This growth was driven by strong copper prices. The mining giant's revenue rose 15% to $58.8 billion, exceeding market expectations. The company declared a final dividend of 99 cents per share, bringing the total annual payout to $1.72, its highest in four years.
Key Details
Copper has become BHP's largest earnings driver, making up over half of its underlying EBITDA. The company produced 1.95 million metric tons of copper, keeping its output near the 2 million ton mark for the second year in a row. CEO Brandon Craig emphasized the need for increased copper production. He projects a potential rise of up to 40% by 2035 to meet growing demand, especially from electrification and AI data centers. He stated, "Copper is the engine room that is driving BHP growth."
Background
BHP's operational performance also benefited from record iron ore shipments. This contributed to a stable EBITDA of $14.5 billion. The company plans to invest significantly in expanding its copper operations. It expects an annual growth of 3%-4% through fiscal 2035. Additionally, BHP is nearing completion of its Jansen potash project, which is set to start production in mid-2024.
Related coverage: Aviva’s H1 Profit Rises 24% to £1.33 Billion, Beats, Balfour Beatty Raises Profit Guidance, Shares Jump 9%.
BHP's strong earnings and dividend announcement are likely to boost its stock price. The stock has already seen a 4.2% increase to a two-month high. The results may also increase investor confidence in the mining sector, particularly in copper and iron ore markets.
Watch for updates on BHP's investment decisions and further developments in its copper expansion plans.
Based on reporting by: oilprice.com, businesstimes.com.sg