BHP(US:BHP)2026-02-17 00:00Financial Data and Key Metrics Changes - The underlying EBITDA grew by 25%, with an increased margin of 58% [9] - Underlying attributable profit reached $6.2 billion, and return on capital employed was 24%, both significantly up from the previous year [9] - An interim dividend of $0.73 per share was declared, representing a 46% increase half-on-half [4] 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% [10] - Production in copper increased by 2%, while unit costs improved by approximately 4.5% despite inflation [10] - Western Australia Iron Ore achieved record first-half production and shipments, maintaining its position as the lowest-cost major iron ore producer globally [11] Market Data and Key Metrics Changes - Global demand for copper is projected to grow by around 70% between 2021 and 2050, driven by economic growth and energy transition [21] - The company expects to generate around $60 billion in attributable free cash flow over the next five years at current spot prices [12] - Even in a prolonged low-price environment, the company anticipates generating around $10 billion in attributable free cash flow [12] Company Strategy and Development Direction - The company focuses on investing in highly attractive commodities, operating world-class assets, and maintaining disciplined capital allocation [4][5] - A clear pathway to grow iron ore volumes to over 305 million tons per year by the end of financial year 2028 has been established [19] - The Jansen Potash asset is expected to deliver around $1 billion of EBITDA per year per stage, enhancing the company's portfolio [20] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the business outlook, supported by healthy demand and favorable trade outcomes [17] - The company is well-positioned to thrive amid geopolitical uncertainties and expects global GDP growth in 2026 to align with the previous year [17] - The management highlighted the importance of operational performance in generating maximum value for deployed capital [6] Other Important Information - The company has identified potential to unlock up to $10 billion in capital for reinvestment or increased shareholder returns [4][15] - Recent agreements related to silver streaming and power consumption are expected to unlock over $6 billion in cash [13][14] - The company has a clear capital allocation framework to maximize value and returns for shareholders [13] Q&A Session Summary Question: What are the expectations for copper production growth? - The company expects a production growth of around 40% by 2035, primarily through capital-efficient brownfield projects [20] Question: How does the company plan to manage costs in the current environment? - The company has reduced costs in real terms post-COVID and aims to maintain its position as the lowest-cost major producer [6] Question: What is the outlook for the iron ore market? - The company anticipates fierce competition in the iron ore market but is well-positioned due to its cost leadership and operational excellence [18]