Copper is undergoing a profound structural shift. After years of cyclical trading, it’s broken out, driven by an irrefutable reality: the world simply doesn't have enough of it to meet future demand.For investors, the narrative is shifting from a standard cyclical play to a potential long-term macro investment, based on supply demand dynamics.This backdrop creates a compelling opportunity for ASX-listed miners, particularly those capable of bringing new, long-term supply online in tier-one jurisdictions lik ...

Copper exchange inventories have climbed above 1 million tons for the first time in 21 years. Meanwhile, smelter activity has slowed, China’s demand softened, yet the price remains elevated despite pulling back from January highs.The answer lies in a lack of confidence in long-term supply. The market has entered an era of electricity intensity. Therefore, copper is no longer merely a cyclical industrial input but a foundational infrastructure for the 21st-century economy.Months Vs. DecadesElectric vehicles ...

Key TakeawaysRBC Capital Markets has initiated coverage on major private equity firms Blackstone, KKR, and TPG with Outperform ratings, signaling a highly bullish outlook for the alternative asset management sector.Citigroup raised its price target for BHP Group to 2,800p (up from 2,600p), following a trend of analyst upgrades driven by the company's strong copper momentum and disciplined balance sheet.President Volodymyr Zelenskiy marked the fourth anniversary of the full-scale invasion of Ukraine, reaffir ...

Faraday Copper’s Copper Creek project, Arizona. Credit: Henry Lazenby Faraday Copper (TSX: FDY) is undertaking a C$100 million ($73 million) private placement backed by investors such as including the Lundin Family Trusts and BHP Group (ASX: BHP) to fund the ongoing development of its projects based in Arizona. Shares of the company surged.In a statement on Monday, the Vancouver-based copper developer said it plans to issue up to 23.81 million common shares at C$4.20 per share, which is the same as its mark ...

The Australian sharemarket on Monday (February 23, 2026) closed with a drop as fresh uncertainty around U.S. tariff policy unsettled investors. The S&P/ASX 200 closed lower, dropping 55.40 points, or 0.61%, to 9,026.00. The downward trend in Australian shares dragged most sectors lower except miners, which gained on safe-haven flows, as reported by news agency Reuters. Markets were left with a murky picture after ‌the U.S. Supreme ⁠Court struck ⁠down US President Donald Trump’s emergency tariffs, prompting ...

Market Performance - The Stock Exchange of Thailand (SET) benchmark index increased by 1.2%, reaching a multi-month peak of 1,483.63 points, driven by investor confidence following recent election results indicating prolonged political stability under a new coalition government [2][9] - Major contributors to the market rally included Delta Electronics Thailand (DELTA) and True Corp (TRUE), with a total increase in investor wealth of 1.2 trillion baht over the past week [2][3] Sector Highlights - PTT Oil & Retail Business (OR) saw a rise of 2.9%, while Bumrungrad Hospital (BH) increased by 2.4%, reflecting positive market sentiment [3] - Infrastructure and energy firms such as Gulf Energy Development (GULF) and WHA Corp (WHA) attracted significant interest as the new government emphasized debt-relief and investment-led growth [3] International Developments - In India, the AI Impact Summit in Delhi continued despite Bill Gates canceling his keynote address, with the event featuring global leaders from companies like Alphabet Inc. (GOOGL) and OpenAI [4] - South American markets are closely watching political developments in Peru, where Jose Balcazar has been named interim president following the impeachment of President Jose Jeri, marking the ninth leader in a decade [5][9] Regional Market Trends - Broader Asia-Pacific markets exhibited mixed performance, with the Nikkei 225 facing challenges due to disappointing preliminary GDP data, while the ASX 200 found support from the mining sector, highlighted by a 28% increase in half-year net profit from BHP Group (BHP) [6]

Core Viewpoint - BHP Group reported a stronger-than-expected half-year underlying profit, primarily driven by copper, which has now surpassed iron ore in earnings for the first time, due to increased demand fueled by AI and cleaner energy initiatives [1][2]. Financial Performance - First-half underlying attributable profit rose 22% to $6.20 billion, exceeding the Visible Alpha consensus of $6.03 billion [3]. - BHP declared an interim dividend of 73 cents per share, surpassing market estimates of 63 cents, with a payout ratio of 60% [3]. - Copper, including byproducts, contributed $7.95 billion to operating earnings, higher than iron ore's $7.50 billion, making up 51% of total underlying operating earnings of $15.46 billion [3]. Market Dynamics - Demand for copper is surging due to rapid growth in power use for AI data centers and the transition to cleaner energy, leading to increased competition among mining companies for high-quality copper assets [2]. - A 32% increase in realized copper prices, along with higher prices for precious metals, significantly boosted profits [4]. - Iron ore prices have recently hit a seven-month low, and unit costs for iron ore increased by 7% to $19.41 per metric ton [4][5]. Strategic Focus - BHP is focusing on organic growth options for copper and does not feel pressured to pursue mergers and acquisitions, having previously walked away from a potential acquisition of Anglo American [7]. - The company has raised its copper production forecast for the year to between 1.9 million and 2 million tons, citing strong operational performance [8]. - BHP announced an $18 billion multi-year investment plan to develop copper, gold, and silver mining projects in northern Argentina, with potential peak copper production exceeding 500,000 tons annually [9]. Partnerships and Agreements - BHP entered a silver streaming agreement with Wheaton Precious Metals for an upfront payment of $4.3 billion, part of a targeted $10 billion to be raised from existing assets to potentially enhance dividend payouts [11].

Financial Data and Key Metrics Changes - The company's underlying EBITDA grew by 25%, with an increased margin of 58% [10] - Underlying attributable profit reached $6.2 billion, and return on capital employed was 24%, both significantly up from the previous year [10] - An interim dividend of $0.73 per share was declared, representing a 46% increase half-on-half, with a total half-year dividend of $3.7 billion and a payout ratio of 60% [4][10] Business Line Data and Key Metrics Changes - Copper business generated a record $8 billion of EBITDA, accounting for over half of the group total, with a margin of 66% [11] - Production in copper increased by 2%, while gold production rose by 12% in Copper South Australia, leading to a more than 50% reduction in unit costs [12] - Western Australia Iron Ore achieved record first-half production and shipments, with C1 costs up only 1% to $17.66 per ton, maintaining its position as the lowest-cost major iron ore producer globally [12] Market Data and Key Metrics Changes - Global demand for copper is projected to grow by around 70% between 2021 and 2050, driven by traditional economic growth, energy transition, and increased data center needs [22] - The company expects to generate around $60 billion in attributable free cash flow over the next five years, even in a prolonged low-price environment [13] Company Strategy and Development Direction - The company's strategy focuses on investing in highly attractive commodities, operating world-class assets, and maintaining disciplined capital allocation [4][8] - Plans to grow copper production by around 40% by 2035, with a capital-efficient, predominantly brownfield growth approach [21] - The company aims to unlock up to $10 billion in capital for reinvestment into higher-returning opportunities and increased shareholder returns [4][16] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the business's ability to thrive amid favorable commodity demand and supportive policy environments, particularly in China and India [18][19] - The company is well-positioned to benefit from tight supply and strong fundamentals in the commodities market [19] Other Important Information - The company has made significant progress in its capital allocation framework, including a valuable silver streaming agreement related to Antamina's future silver production, unlocking $4.3 billion in cash [14][15] - The company is advancing its plans for the Jansen Potash asset, expected to deliver around $1 billion of EBITDA per year per stage, with margins above 60% [21] Q&A Session Summary Question: What is the outlook for copper production growth? - The company has raised production guidance for financial year 2026 and 2027, expecting to deliver over 500,000 more tons over the next five years compared to previous estimates, which could result in an additional $5 billion of EBITDA [23][24] Question: How does the company plan to manage costs amid increasing competition? - The company has maintained its position as the world's lowest-cost major iron ore producer and aims to reduce costs further while increasing production volumes [20]

Financial Data and Key Metrics Changes - The company's underlying EBITDA grew by 25%, with an increased margin of 58% [10] - Underlying attributable profit reached $6.2 billion, and return on capital employed was 24%, both significantly up from the previous year [10] - An interim dividend of $0.73 per share was declared, representing a 46% increase half-on-half, with a total half-year dividend of $3.7 billion and a payout ratio of 60% [4][10] Business Line Data and Key Metrics Changes - Copper business generated a record $8 billion of EBITDA, accounting for over half of the group total, with a margin of 66% [11] - Production in copper increased by 2%, while gold production rose by 12% in Copper South Australia, leading to a more than 50% reduction in unit costs [12] - Western Australia Iron Ore achieved record first-half production and shipments, with C1 costs up only 1% to $17.66 per ton, maintaining its position as the lowest-cost major iron ore producer globally [12] Market Data and Key Metrics Changes - Global demand for copper is projected to grow by around 70% between 2021 and 2050, driven by traditional economic growth, energy transition, and increased use of data centers [22] - The company expects to generate around $60 billion in attributable free cash flow over the next five years, even in a prolonged low-price environment [13] Company Strategy and Development Direction - The company's strategy focuses on investing in highly attractive commodities, operating world-class assets, and maintaining disciplined capital allocation [4][8] - Plans to grow copper production by around 40% by 2035, with a capital-efficient, predominantly brownfield growth approach [21] - The company aims to unlock up to $10 billion in capital for reinvestment into higher-returning opportunities and increased shareholder returns [4][16] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the business's ability to deliver strong results amid favorable commodity prices and operational excellence [3][10] - Expectations for global GDP growth in 2026 to be broadly in line with the previous year, supported by policy responses in major economies [18] - The company is well-positioned to thrive through commodity price cycles due to its diversified portfolio [13] Other Important Information - The company has made significant progress in its capital allocation framework, including a valuable silver streaming agreement related to Antamina's future silver production, unlocking $4.3 billion in cash [14][15] - The Jansen Potash asset is expected to become a world-class, low-cost potash producer, contributing significantly to the company's EBITDA [21] Q&A Session Summary Question: What is the outlook for copper production growth? - The company plans to increase copper production by around 40% by 2035, with a clear pathway for growth [21] Question: How does the company plan to manage capital allocation? - The capital allocation framework ensures all users of capital compete to maximize value and return for shareholders, with a focus on unlocking additional value from the capital base [14] Question: What are the expectations for global demand in the coming years? - Global demand for commodities is expected to remain robust, supported by favorable trade outcomes and improved confidence in major economies [18]

Market Overview - The Australian sharemarket closed flat on February 10, 2026, with the S&P/ASX 200 ending 2.7 points lower at 8,867.40 after a 1.9% rally the previous day [1][9] - The index is currently 2.72% below its 52-week high and has shown virtually no change over the last five days [2][9] Sector Performance - Financials sector declined by 1.1%, primarily due to significant losses in insurance companies [2][9] - 8 out of 11 sectors ended higher, with Information Technology being the best-performing sector, gaining 2.14% [5][9] - Miners advanced by 1% on the back of higher iron ore prices, with BHP Group rising 1.1% and Rio Tinto gaining 1.4% [5][9] Top Gainers - Silex Systems Limited (SLX) led the day's gains, closing at $7.240, up $0.560 or 8.383% [3][9] - Other notable gainers included DroneShield Limited (DRO) up 7.301%, Deep Yellow Limited (DYL) up 7.142%, Zip Co Limited (ZIP) up 6.072%, and Superloop Limited (SLC) up 5.579% [3][9] Bottom Performers - Steadfast Group Limited (SDF) and Insurance Australia Group Limited (IAG) were the bottom performers, down 9.46% and 6.19% respectively [2][9] - AUB Group Limited (AUB) fell by 6.115%, while CSL Limited (CSL) and Suncorp Group Limited (SUN) also experienced declines of 4.979% and 4.237% respectively [2][9] Individual Stock Highlights - Treasury Wine Estates shares rose by 8.1% after resolving a dispute with U.S. distributor Republic National Distributing Company [7][9] - Gold stocks increased by 1.3%, with Genesis Minerals up 2.8% and St Barbara rising 4.4% [6][9] - Energy stocks advanced by 0.6%, with uranium miners Deep Yellow and Paladin Energy up 7.1% and 5.5% respectively [7][9]