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 13.7billionandareturnoncapitalemployedof277.9 billion after net exceptional charges of 5.8billion,includinga2.7 billion non-cash impairment of Western Australia Nickel Business and a 3.8billionchargefortheSamarcodamfailure[11]−Netoperatingcashflowexceeded20 billion, enabling 9.3billioninbusinessinvestments,a319.1 billion [11] - Full-year dividend is 1.46pershare,withtotaldividendsfortheyearreaching7.4 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 15.84perton[13]−WesternAustraliaNickeloperationsweretemporarilysuspendedduetotoughmarketconditions,withplanstorestartifmarketconditionsimprove[6]MarketPerformance−CopperSouthAustraliasawsuccessfulintegrationofOZMineralsassets,unlockingsignificantsynergiesanddeliveringoperationalrecords[13]−InChile,projectsatEscondidaandSpenceareprogressingwell,withpotentialtoaddaround200,000tonsperyearofincrementalcopperproduction[28]−TheJansenpotashprojectisaheadofschedule,withfirstproductionforecastforlate2026,andStage2isinexecution[5]StrategicDirectionandIndustryCompetition−Thecompany′sstrategyfocusesonoperationalexcellence,creatingsocialvalue,andshapingtheportfolioforfuturegrowth,particularlyincommoditiesbenefitingfrommegatrendslikeurbanizationandenergytransition[2][3]−BHPisinvestinginfuture−facingcommodities,withplanstospendaround10 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 3.3billion,includingover600 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 600millioninsynergiesalreadycapturedfromtheOZMineralsacquisition,fasterthananticipated[39]−Returnsescalatequicklywithscale,andinvestmentswillbemadeiftheystackupwellunderthecapitalallocationframework[40]Question:WhataretheexpectedreturnsfortheFiloandJosemariaprojects?[41]−TheFiloopportunityrepresentsasignificantnewcopperbasin,andthecompanyisworkingwithLundinMiningtodeterminetheoptimaldevelopmentpathway[41]−Thecapitalallocationframeworkensuresprojectscompetebasedonreturns,withflexibilitytophaseandsequenceprojectsbasedonmarketdynamics[42]Question:WhatisdrivingtheincreaseinCapExto11 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]
