When investors think of commodities and their long-term demand cycles, gold and silver often come to mind as investments that can take advantage of the market's long-term upside. However, the answer to aligning a portfolio with a long-term winning commodity involves figuring out which leading economy relies on which commodity and how steady the demand could be. Nations like China and the United States rely on commodities like iron ore to construct steel. As long as the real estate sector (residential and co ...

Financial Data and Key Metrics - Underlying EBITDA increased by 4% with a healthy margin of 54% [10] - Adjusted effective tax rate including royalties was around 42%, resulting in an underlying attributable profit of $13.7 billion and a return on capital employed of 27% [10] - Total attributable profit was $7.9 billion after net exceptional charges of $5.8 billion, including a $2.7 billion non-cash impairment of Western Australia Nickel Business and a $3.8 billion charge for the Samarco dam failure [11] - Net operating cash flow exceeded $20 billion, enabling $9.3 billion in business investments, a 31% increase from the previous year, and reducing net debt to $9.1 billion [11] - Full-year dividend is $1.46 per share, with total dividends for the year reaching $7.4 billion [4] Business Line Performance - Record production at Western Australia Iron Ore, Spence, and Carrapateena, with copper production growing by 9% for the second consecutive year [4] - Copper production reached its highest level in over 15 years, with Escondida achieving its best production outcome in four years and Spence having another record year [13] - Iron Ore delivered record production volumes with an EBITDA margin of 68%, maintaining the lowest cost iron ore producer globally with C1 costs of $15.84 per ton [13] - Western Australia Nickel operations were temporarily suspended due to tough market conditions, with plans to restart if market conditions improve [6] Market Performance - Copper South Australia saw successful integration of OZ Minerals assets, unlocking significant synergies and delivering operational records [13] - In Chile, projects at Escondida and Spence are progressing well, with potential to add around 200,000 tons per year of incremental copper production [28] - The Jansen potash project is ahead of schedule, with first production forecast for late 2026, and Stage 2 is in execution [5] Strategic Direction and Industry Competition - The company's strategy focuses on operational excellence, creating social value, and shaping the portfolio for future growth, particularly in commodities benefiting from megatrends like urbanization and energy transition [2][3] - BHP is investing in future-facing commodities, with plans to spend around $10 billion in the 2025 financial year, primarily on growth and improvement projects [17] - The company is well-positioned in copper, with a pathway to over 2 million tons per year of copper production, and is expanding its portfolio through joint ventures like the one with Lundin Mining in Argentina [24][29] Management Commentary on Operating Environment and Future Outlook - Global economic growth is expected to be slightly above 3% for 2024 and 2025, with China's uneven recovery and India's continued growth as key factors [19] - The company anticipates continued strong demand for its products, driven by population growth, urbanization, and decarbonization infrastructure, but expects some price volatility due to supply growth [20] - Long-term demand for copper and potash is projected to grow by around 70% by 2050, with BHP well-positioned to benefit from its leading resource positions and growth options [21][22] Other Important Information - The company made significant progress on social value goals, including a 32% reduction in operational greenhouse gas emissions from the 2020 baseline and increasing female employee participation to over 37% [7][8] - BHP increased spending with small, local, and indigenous businesses to $3.3 billion, including over $600 million with indigenous businesses, an 83% increase from the previous year [9] Q&A Session Summary Question: How does BHP balance free cash flow generation and investment in South Australia Copper? [38] - The company focuses on stable operational performance to justify growth investments, with $600 million in synergies already captured from the OZ Minerals acquisition, faster than anticipated [39] - Returns escalate quickly with scale, and investments will be made if they stack up well under the capital allocation framework [40] Question: What are the expected returns for the Filo and Josemaria projects? [41] - The Filo opportunity represents a significant new copper basin, and the company is working with Lundin Mining to determine the optimal development pathway [41] - The capital allocation framework ensures projects compete based on returns, with flexibility to phase and sequence projects based on market dynamics [42] Question: What is driving the increase in CapEx to $11 billion in FY '26? [45] - Higher growth projects in copper, increased spending on potash, and fleet replacement across major assets are the primary drivers of the increased CapEx [46] Question: How does BHP view the iron ore market and its expansion to 330 million tons? [47] - The company is creating the option to expand to 330 million tons, with decisions based on market conditions and economic returns under the capital allocation framework [48][49] Question: What are the plans for copper expansion at Spence and Cerro Colorado? [50] - The company is focusing on stabilizing operations at Spence and exploring further leaching options to sustain production, with potential to extend the life of leaching operations [51][52] Question: How does BHP manage capital allocation and shareholder returns with higher CapEx and potential acquisitions? [53] - The company maintains a rigorous capital allocation framework, balancing growth investments with shareholder returns, and has flexibility within its net debt range to fund value-accretive projects [54][55] Question: What is the outlook for iron ore prices and BHP's position in the market? [59] - BHP expects the iron ore market to face increasing competition, but its low-cost position and high-quality product suite provide resilience, with significant high-cost production still in the market [60][96] Question: How does BHP plan to execute multiple growth projects across different regions? [90] - The company has a strong track record of project execution and will sequence projects to optimize returns under the capital allocation framework, while managing within its financial envelope [91][92] Question: What is the impact of industrial relations and tax changes on project returns in Australia versus offshore? [108] - BHP evaluates project returns based on relative risk and competitiveness, with recent policy changes in Australia creating some drag on competitiveness, but the company remains focused on global competitiveness [109][110]

BHP Group (BHP) reported a 2% year-over-year increase in underlying attributable profit from continuing operations at $13.7 billion for fiscal 2024 (ended June 30, 2024). The growth was attributed to higher prices and sales volumes in BHP's iron ore and copper operations, productivity initiatives, cost discipline and favorable raw material costs. This offset the impact of lower energy coal and nickel prices and higher labor costs on profits. BHP's underlying earnings per share were $2.70 compared with $2.65 ...

The company logo adorns the side of the BHP gobal headquarters in Melbourne on February 21, 2023. - The Australian multinational, a leading producer of metallurgical coal, iron ore, nickel, copper and potash, said net profit slumped 32 percent year-on-year to 6.46 billion US dollars in the six months to December 31. (Photo by William WEST / AFP) (Photo by WILLIAM WEST/AFP via Getty Images) BHP CEO Mike Henry said he expects China's property sector to rebound in the upcoming year on the back of favorable gov ...

Hefty write-downs bruised an otherwise strong profit for the year to June 30 by BHP, the world's biggest mining company. Before writing down $2.7 billion on its mothballed nickel business and providing a charge of $3.8 billion for the 2015 failure of the Samarco dam at a Brazilian iron ore mine, BHP's underlying profit was up 2% at $13.7 billion. But after the write-offs the full year profit was down 39% at $7.9 billion, earned from a 3% increase in revenue at $55.7 billion. The Australian-based miner also ...

REGINA, Saskatchewan, Aug. 21, 2024 (GLOBE NEWSWIRE) -- The Regina Food Bank and BHP are pleased to announce a partnership to ensure the financial sustainability and programming impact of the recently created BMO ASAHTOWIKAMIK Food Hub. Through the partnership BHP will invest $350,000, designating BHP as the reconciliation partner. Funds will go towards the food sovereignty programme and a mural in the Food Hub created by local Indigenous artist Chantel Yuzicappi, from Standing Buffalo First Nation in Treat ...

BHP, the world's biggest mining company, is facing a costs squeeze on both sides of the Pacific from organized labor at its mines in Australia and Chile. Demands for increased pay and easier working conditions have led to the threat of strike action at the giant Escondida copper mine in Chile while in Australia unions are being accused of a power grab in the company's iron ore mines. An iron ore train arrives at BHP's Port Hedland export operations. Fairfax Media via Getty Images. Fairfax Media via Getty Im ...

Infill Drill Highlights: AZ24375:217 metersof1.11 % Cu, incl.100 metersof1.32 % Cu AZ24335:158 metersof0.84 % Cu, incl.78.5 metersof1.10 % Cu AZ24403:276 metersof0.86 % Cu, incl.160 metersof0.96 % Cu AZ24320:146 metersof0.89 % Cu AZ24332:119.6 metersof0.72 % Cu TORONTO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- McEwen Copper Inc., 48.3% owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to comment on the excitement in Argentina that includes: Remarkable new legislation introduced by President Milei to e ...

Mining M&A is heating up with strategic moves to consolidate operations and strengthen market positions in the copper and gold sectors. BHP and Lundin will form a 50/50 joint venture to manage the Filo del Sol and Josemaria projects in Argentina and Chile. BHP's significant investment underscores the company's confidence in the long-term prospects of copper. The deal is relatively smaller compared to previous industry megadeals, like Barrick Gold's $7.3 billion acquisition of Equinox Minerals in 2011. Howev ...

TORONTO, July 29, 2024 (GLOBE NEWSWIRE) -- BHP and Lundin Mining Corporation (Lundin Mining) have agreed to jointly acquire 100% of Filo Corp., a Toronto Stock Exchange (TSX) listed company, through a Canadian plan of arrangement (Filo Acquisition). Filo Corp. owns 100% of the Filo del Sol (FDS) copper project. Mike Henry, Chief Executive Officer of BHP said: This transaction aligns with BHP's strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where ...