Market Trends - Iron ore prices are declining due to softer Chinese demand and abundant global supply [1] Company Performance - BHP Group reported falling profits [1]

Core Viewpoint - BHP's profit for the fiscal year 2025 was $10.16 billion, a 26% decrease year-on-year, falling short of analyst expectations of $10.22 billion [1] Financial Performance - The final dividend announced was $0.60 per share, down from $0.74 per share in the previous year, with an annual dividend of $1.10, the lowest since 2017, but above analyst expectations of $1.01 [1] - The average price of iron ore decreased by 19% during the fiscal year, although the rise in copper prices partially offset this impact [1] Future Outlook - BHP expects commodity demand to remain resilient despite uncertainties in the global economic environment [1] - The company has raised its net debt target range from $5 billion to $15 billion to $10 billion to $20 billion [1] - BHP is considering acquisitions in copper and potash sectors, contingent on reasonable pricing and high quality [1] Investment Plans - The company plans to invest $11 billion in growth projects and exploration over the next two years, with average annual spending expected to decrease to $10 billion from 2028 to 2030 [1]

Group 1 - BHP's annual profit decreased by 26% due to weak demand, particularly for iron ore and coking coal, with a basic distributable profit of $10.2 billion, aligning with analyst expectations [1] - Revenue dropped by $4.4 billion over the past 12 months, primarily due to falling prices of iron ore and coal, although rising copper prices partially offset this impact [1] - The company raised its net debt range from $5 billion to $15 billion to $10 billion to $20 billion [1] Group 2 - CEO Mike Henry expressed a mixed outlook on the global economic landscape but remains confident in the long-term fundamentals for steelmaking materials, copper, and fertilizers [1] - BHP's copper business saw growth during this period, becoming a key growth area as demand is expected to surge with global electrification and decarbonization efforts [1] - The ongoing real estate crisis has led to an oversupply of steel, negatively impacting iron ore demand and limiting price increases for coking coal [1] Group 3 - BHP indicated that the external operating environment for fiscal year 2025 is influenced by complex and evolving global conditions, with increased policy uncertainty affecting investment and trade flows [2]

Financial Data and Key Metrics Changes - BHP achieved a record iron ore and copper production in the 2025 financial year, with copper production exceeding 2 million tons, reflecting a 28% volume growth over the past three years [4][21] - The underlying EBITDA margin remained healthy at 53%, maintaining an average margin exceeding 50% over the past twenty years [8][10] - The company incurred almost $10 billion in taxes and royalties against an underlying attributable profit of $10.2 billion, with a final dividend of $0.60 per share, resulting in a full year dividend of $5.6 billion [9][10] Business Line Data and Key Metrics Changes - Western Australia Iron Ore demonstrated a strong performance with record production and shipments, achieving an EBITDA margin of 63% and C1 costs of $17.29 per tonne, making it the lowest cost major iron ore producer globally [11][12] - In copper, BHP generated a record $12 billion of EBITDA, accounting for 45% of the group total, with an impressive margin of 59% [13] - Copper South Australia produced over 300,000 tonnes of copper in each of the last two years, with plans to double copper production [36] Market Data and Key Metrics Changes - China and India showed resilient economic and commodity demand growth, with China exceeding economic growth expectations and India projected to remain the fastest growing major economy [21][22] - The global focus on critical mineral supply and supply chain security is increasing, reflecting the mining sector's role in supporting national security and energy transition [23] Company Strategy and Development Direction - BHP's strategy focuses on being in highly attractive commodities with resilient demand and steep cost curves, optimizing for risk, value, and growth [2][3] - The company plans to sequence projects to enhance value and deliverability, with a revised capital and exploration spend target of around $11 billion for FY 2026 and 2027, which is $1 billion lower than previous guidance [18][39] - BHP aims to maintain a strong balance sheet and pay a minimum dividend of 50% of underlying attributable profit each reporting period [15] Management's Comments on Operating Environment and Future Outlook - The management noted that while global economies face policy uncertainty, demand for commodities remains resilient, particularly in China and India [21][22] - BHP expects to meet its 2030 target for operational greenhouse gas emissions despite a slowdown in the pace of development of decarbonization technology [17][20] Other Important Information - BHP contributed almost $47 billion globally through wages, taxes, royalties, community contributions, and payments to suppliers and shareholders [5] - The company achieved gender balance in its global workforce, with female representation at 41.3% [5] Q&A Session Summary Question: What are the expectations for copper production growth? - BHP's aspiration to double copper production remains unchanged, with stable operational performance supporting this growth [36] Question: How is BHP addressing the challenges in project execution? - The company is learning from experiences like the Janssen project to improve planning and execution, while maintaining a good track record of delivering major projects on time and budget [31] Question: What is BHP's outlook on the iron ore market? - BHP expects Chinese steel production to plateau and eventually decline, focusing on improving performance and reducing costs to sustain margins [32]

Financial Data and Key Metrics Changes - BHP achieved an underlying EBITDA margin of 53%, maintaining an average margin exceeding 50% over the past twenty years [8] - The company incurred almost $10 billion in taxes and royalties against an underlying attributable profit of $10.2 billion, resulting in a final dividend of $0.60 per share, with a payout ratio of 60% [9] - There was a 10% decline in EBITDA attributed solely to commodity prices, with unit costs improving nearly 5% year on year despite inflation [10][11] Business Line Data and Key Metrics Changes - Record production in copper exceeded 2 million tons, with a 28% volume growth over the past three years, contributing to a record EBITDA of $12 billion, representing 45% of the group total [4][13] - Western Australia Iron Ore demonstrated an EBITDA margin of 63%, with C1 costs at $17.29 per tonne, maintaining its position as the lowest cost major iron ore producer globally [11][12] - BMA saw a 5% increase in volumes despite weather-related disruptions, while Copper South Australia produced over 300,000 tons of copper in each of the last two years [12][36] Market Data and Key Metrics Changes - China and India showed resilient economic and commodity demand growth, with China exceeding economic growth expectations and India projected to remain the fastest growing major economy [20][21] - The global focus on critical mineral supply and supply chain security is increasing, reflecting the mining sector's role in national security and energy transition [22] Company Strategy and Development Direction - BHP's strategy focuses on being in highly attractive commodities with resilient demand and steep cost curves, optimizing for risk, value, and growth [2][3] - The company plans to reduce capital spend by $1 billion per year over the medium term and has revised its net debt target range to $10 billion to $20 billion [3][19] - BHP is committed to maintaining a strong balance sheet and paying a minimum dividend of 50% of underlying attributable profit each reporting period [15] Management's Comments on Operating Environment and Future Outlook - The management highlighted that while global policy uncertainty persists, demand for commodities remains resilient, particularly from China and India [20][21] - The company expects to achieve average production growth of 2.2% per annum over the next decade, driven by investments in attractive commodities and world-class assets [40][41] Other Important Information - BHP contributed nearly $47 billion globally through wages, taxes, royalties, and community contributions, achieving gender balance in its workforce with female representation at 41.3% [5] - The company has made significant safety improvements, achieving a 63% reduction in high potential injury frequency over the past five years [6] Q&A Session Summary Question: What are the expectations for copper production growth? - The company aspires to double copper production and expects to take a final investment decision on phase one of the smelter and refinery expansion in the 2028 financial year [36] Question: How is BHP addressing the challenges in project execution? - BHP acknowledged higher inflation and cost escalation in project execution and is applying learnings to improve planning and execution across projects [31] Question: What is the outlook for iron ore production? - The company maintains plans to grow iron ore production to 305 million tonnes per year by the end of the financial year 2028, with expectations to further improve unit costs [33]

Resilience and growth Full year ended 30 June 2025 For personal use only Copper SA Disclaimer The information in this presentation is current as at 19 August 2025. It is in summary form and is not necessarily complete. It should be read together with the BHP Results for the year ended 30 June 2025. Forward-looking statements This presentation contains forward-looking statements, which involve risks and uncertainties. Forward-looking statements include all statements other than statements of historical or pr ...

Group 1 - The core viewpoint of the article highlights a collective decline in U.S. copper stocks, with major companies like Rio Tinto and BHP experiencing notable pre-market drops due to revised copper production forecasts from Chile's National Copper Corporation [1] - Chile's National Copper Corporation has significantly lowered its 2025 copper production growth forecast to 1.5%, which is half of the previously predicted 3% increase made in May [1] - The downward revision in production growth is attributed to decreased output from major mines, specifically BHP's Escondida mine and the joint-operated Coya Sur mine by Anglo American and Glencore, which saw a decline in June production [1] Group 2 - Pre-market performance shows Rio Tinto down nearly 2% at $63.570, BHP down 1.4% at $54.730, Freeport-McMoRan down 0.54% at $42.740, and Southern Copper down 0.20% at $99.500 [1] - The article provides specific stock price changes and percentages, indicating a broader trend of declining investor confidence in copper-related equities amid production concerns [1]

Investment Rating - The report rates the industry as "Outperforming the Market" [4] Core Insights - The copper mining industry is experiencing significant supply disruptions, leading to a clear pattern of scarce incremental production for the year [14][15] - The total production guidance for the ten major copper mining companies is projected to be 9.759 million tons for 2025, which represents a decrease of 57,000 tons compared to the actual production in 2024 [14][17] - Major companies are struggling to meet their production guidance, with most achieving less than 50% of their annual targets by mid-2025 [15] Summary by Sections 1. Overview of Supply Disruptions - The report tracks ten major copper mining companies, including Freeport, Codelco, BHP, and others, highlighting frequent supply disruptions in the first half of 2025 [13][14] - The average production for these companies in Q2 2025 increased by 5% quarter-on-quarter but decreased by 2% year-on-year [14][16] 2. Company-Specific Updates Freeport - Freeport's production guidance has been adjusted downwards due to challenges at the Grasberg mine, with a new target of 1.79 million tons for the year [15][18] - The company has a rich asset portfolio with significant copper, gold, and molybdenum reserves [18] Codelco - Codelco's production recovery efforts are hindered by mining accidents, affecting its output and guidance [15] BHP - BHP reported a slight increase in copper production in Q2 2025, but its long-term production guidance indicates a decline in ore grades [15][17] Glencore - Glencore's copper production is under pressure, with expectations of continued declines in 2025 [15] Southern Copper - Southern Copper's production remains stable, with expected increases primarily in the long term [15] First Quantum - First Quantum faces challenges in production recovery, particularly at its Cobre Panama mine [15] Anglo American - Anglo American's production is under pressure due to declining ore grades, impacting overall output [15] Rio Tinto - Rio Tinto's Oyu Tolgoi underground mine is expected to contribute significantly to future production, although current output is still being ramped up [15] Antofagasta - Antofagasta is expanding its operations to mitigate the impact of declining ore grades [15] Teck Resources - Teck Resources has adjusted its production guidance downward due to limitations at its QB2 project [15]

Codelco是全球最大的铜矿商。 与此同时，必和必拓（BHP）旗下全球最大铜矿Escondida矿6月铜产量下滑33%至76,400吨。 6月份，英美资源（Anglo American）和嘉能可（Glencore）联合经营的大型Collahuasi铜矿产量同比下降29%，至34,300吨。 （文华综合） 8月11日（周一），智利铜业委员会Cochilco公布的数据显示，智利国有矿产商--Codelco公司6月铜产量同比增长17%，攀升至120,200吨。 ...

Report Industry Investment Rating No relevant content provided. Core Views - The production and sales of Vale in the second quarter showed differentiation, and the annual production target remained unchanged. Vale's quarterly iron ore production in the second quarter was 83.6 million tons, a quarter-on-quarter increase of 23.6% and a year-on-year increase of 3 million tons or 3.7%. The quarterly iron ore sales volume was 77.346 million tons, a quarter-on-quarter increase of 16.9% and a year-on-year decrease of 2.45 million tons or 3.1% [3][4]. - Rio Tinto's production and sales both increased significantly in the second quarter, and the shipment of Simandou iron ore was advanced to November. In the second quarter of 2025, Rio Tinto's iron ore production from its Pilbara operations was 83.74 million tons, a quarter-on-quarter increase of 20% and a year-on-year increase of 5.4%. The sales volume was 86.47 million tons, a quarter-on-quarter increase of 14.8% and a year-on-year decrease of 1.1%, with the decline significantly narrowing compared to the first quarter [5][6]. - BHP Billiton's iron ore production and sales both increased quarter-on-quarter and year-on-year in the second quarter, and the target for the 2026 fiscal year was slightly raised. In the second quarter of 2025, BHP Billiton's iron ore production from its Pilbara operations (100% basis) was 77.48 million tons, a quarter-on-quarter increase of 14.2% and a year-on-year increase of 0.9%. The total sales volume was 76.723 million tons, a quarter-on-quarter increase of 14.9% and a year-on-year increase of 1.1% [8][9]. - FMG's production and sales both increased quarter-on-quarter and year-on-year in the second quarter, and the single-quarter shipment reached a record high. In the second quarter, FMG's total iron ore processing volume was 54.4 million tons, a quarter-on-quarter increase of 14.3% and a year-on-year increase of 7.1%. The iron ore shipment volume reached 55.2 million tons, a quarter-on-quarter increase of 19.7% and a year-on-year increase of 2.8% [10]. Summary by Directory Vale - Production: The quarterly iron ore production in the second quarter was 83.6 million tons, a quarter-on-quarter increase of 23.6% and a year-on-year increase of 3 million tons or 3.7%. The increase was mainly due to the strong performance of the Brucutu mine in Minas Gerais and the record-high production of the S11D mine in Parana. The annual production target for 2025 is 325 - 335 million tons, and the new projects VGR1 and Capanema are expected to contribute incremental output in the second half of the year [3][16]. - Sales: The quarterly iron ore sales volume in the second quarter was 77.346 million tons, a quarter-on-quarter increase of 16.9% and a year-on-year decrease of 2.45 million tons or 3.1%. Sales decreased in most regions, with the overall sales volume turning negative year-on-year [4][21]. - Shipping and Arrival: From the steel shipping data, Vale's shipments showed a positive year-on-year growth in the second quarter. As of July 21, the cumulative year-on-year increase in iron ore shipments was 2.24 million tons, and the cumulative year-on-year decrease in China's port iron ore arrivals narrowed to about 5.6 million tons [26]. Rio Tinto - Production: In the second quarter of 2025, the iron ore production from its Pilbara operations was 83.74 million tons, a quarter-on-quarter increase of 20% and a year-on-year increase of 5.4%. The Simandou iron ore will ship its first cargo in November 2025, earlier than previously planned, with a limited supply volume this year [5][31]. - Sales: The sales volume in the second quarter was 86.47 million tons, a quarter-on-quarter increase of 14.8% and a year-on-year decrease of 1.1%, with the decline significantly narrowing compared to the first quarter. The 2025 Pilbara iron ore shipment target (100%) remains unchanged at 323 - 338 million tons, but the shipment volume is expected to be at the lower end of the guidance due to the difficult-to-make-up reduction caused by extreme weather events in the first quarter [6][36]. - Shipping and Arrival: The incremental iron ore shipments in the second quarter showed a pattern of high in the front and low in the back. As of July 21, the cumulative year-on-year decrease in iron ore shipments was 4.65 million tons, and the cumulative year-on-year decrease in shipments to China was 1.08 million tons. The cumulative year-on-year decrease in China's port iron ore arrivals was 1.66 million tons [44]. BHP Billiton - Production: In the second quarter of 2025, the iron ore production from its Pilbara operations (100% basis) was 77.48 million tons, a quarter-on-quarter increase of 14.2% and a year-on-year increase of 0.9%. The production in 2025 fiscal year was 288 million tons, the same as last year, meeting the fiscal year target. The target guidance for the 2026 fiscal year is 284 - 296 million tons (100% basis) [8][51]. - Sales: The total sales volume in the second quarter was 76.723 million tons, a quarter-on-quarter increase of 14.9% and a year-on-year increase of 1.1% [9][54]. - Shipping and Arrival: The shipments continued to recover year-on-year. As of July 21, the cumulative year-on-year decrease in iron ore shipments was 1.09 million tons, and the cumulative year-on-year decrease in shipments to China was 1.67 million tons. The cumulative year-on-year decrease in China's port iron ore arrivals reached 7 million tons [60]. FMG - Production and Sales: In the second quarter, the total iron ore processing volume was 54.4 million tons, a quarter-on-quarter increase of 14.3% and a year-on-year increase of 7.1%. The iron ore shipment volume reached 55.2 million tons, a quarter-on-quarter increase of 19.7% and a year-on-year increase of 2.8%, with a record-high single-quarter shipment [10][63]. - Iron Bridge Project: The Iron Bridge magnetite project contributed 2.4 million tons, with continuous production increase and still in the phased capacity ramp-up [63]. - Fiscal Year Target: The 2026 fiscal year shipment target is set at 195 - 205 million tons (with a target shipment volume of 10 - 12 million tons for the Iron Bridge project), with the upper and lower limits of the guidance target for the 2025 fiscal year increased by 5 million tons respectively [10][63]. - Shipping and Arrival: The cumulative year-on-year growth in shipments was maintained. As of July 21, the cumulative year-on-year increase in iron ore shipments was 5.59 million tons, and the cumulative year-on-year increase in shipments to China was 5.84 million tons. The cumulative year-on-year decrease in China's port iron ore arrivals was 3.07 million tons [66].