BHP(US:BHP)2025-10-23 00:02Financial Data and Key Metrics Changes - Financial year 2025 was a strong year for the company, with a return of 20.6% on capital employed and an underlying margin of 53% on EBITDA [24][25] - The company paid $5.6 billion in dividends, marking over $100 billion returned to shareholders over the past decade [25][18] - The effective tax rate was approximately 45%, contributing nearly $10 billion in taxes and royalties to fund public services [24] Business Line Data and Key Metrics Changes - Record production was achieved at Western Australia Iron Ore, maintaining its position as the lowest-cost major iron ore producer for six consecutive years [24] - Overall copper production increased by 28% over the past three years, representing the largest absolute growth among major miners globally [24] - 45% of the company's EBITDA now comes from copper, more than double the percentage from five years ago [25] Market Data and Key Metrics Changes - The company is pursuing growth in copper and potash, with significant investments in projects like the Jansen potash project in Canada and the Resolution Copper project in Arizona [26][25] - The Argentinian government has introduced incentives for large investments, which could benefit the company [27] - The company is facing challenges in Queensland due to high royalties, impacting profitability in its coal division [46][48] Company Strategy and Development Direction - The company aims for high-quality growth that drives value, focusing on a mix of assets and commodities that are attractive for the future [15][23] - There is a commitment to decarbonization, with a target of a 30% reduction in carbon footprint by 2030 [79] - The company emphasizes the importance of competitive tax policies to attract global investment [40][46] Management's Comments on Operating Environment and Future Outlook - The management highlighted the growing demand for sustainable commodities due to urbanization and shifts in energy sources [23] - There is a recognition of the need for nations to create favorable conditions for investment to enhance economic development and national security [16] - The company is optimistic about its future, citing a strong pipeline of growth projects and a commitment to operational excellence [29][19] Other Important Information - The company achieved gender balance within its global employee base, reflecting its commitment to inclusivity [21] - The management is focused on creating social value and building community trust as part of its operational strategy [17][18] Q&A Session Summary Question: Impact of a turnover tax on BHP and the mining industry - The Chair acknowledged the proposal for a net cash flow tax and emphasized the need for competitive tax policies to attract investment [40] Question: Conversations with the Queensland government regarding coal taxes - The Chair noted that the company is paying significantly more in royalties than it generates in profit, indicating unsustainable tax settings [46][48] Question: Status of iron ore sales and currency used - The Chair confirmed that about 10% of sales are conducted in currencies other than US dollars, primarily in RMB for portside sales in China [56][59] Question: Operational performance and dividend payment dates - The Chair explained that variations in dividend payment dates are linked to the timing of financial results announcements [72] Question: Environmental sustainability and koala habitat protection - The Chair assured that the company is committed to environmental sustainability and has set targets for reducing its carbon footprint [79][80] Question: Update on the Samarco dam failure compensation - The Chair provided an update, stating that 98% of community resettlement cases are finalized and approximately $5.6 billion has been paid in compensation [86]