BHP (ASX:BHP) Reports 10% Copper Production Growth in 1HFY25, Eyes 1,845-2,045kt for FY25

Highlights

• BHP reported significant growth in copper and iron ore production in 1HFY25 but faced declines in coal production.
• In FY24, profit after tax dropped by almost 39% YoY to USD 7.9 billion.
• For FY25, BHP has reaffirmed its production guidance for key assets.

BHP Group Limited (ASX:BHP), renowned for its leadership in the resources sector, posted a 10% YoY increase in copper production in the first half of the financial year 2025 (1HFY25), which was largely driven by a 22% YoY rise at the Escondida mine, which achieved a 10-year production record.

The company also reported a modest 1% YoY gain in iron ore production, with Western Australia Iron Ore (WAIO) achieving record half-year output. The reported period saw a 21% decline in steelmaking coal production, while energy coal production dropped by 1%.

FY24 Financial Performance

For the full year ended 30 June 2024, BHP reported:

• Revenue: USD 55.66 billion (up 3% YoY from USD 53.82 billion in FY23).
• Profit After Tax: USD 7.9 billion (down 39% from USD 12.92 billion in FY23).
• Net Operating Cash Flows: USD 20.67 billion (up 11% from USD 18.70 billion in FY23).
• Dividends: 146 US cents per share, representing a 54% payout ratio.

Outlook

In FY25, the company expects net debt to rise to the upper end of its target range of USD 15 billion. This increase is associated with strategic investments, including the Vicuña transaction and settlement obligations related to Samarco in the second half of the fiscal year.

For FY25, BHP has reaffirmed its production guidance for key assets. Notably, production from WAIO, BMA, NSWEC, and Samarco is on track to meet the upper half of its guidance range. However, the guidance for Copper South America (Copper SA) has been adjusted downward due to a weather-related power outage.

The company's full-year FY25 production guidance includes:

• Copper: 1,845-2,045kt
• Iron Ore: 255-265.5Mt
• Steelmaking Coal (BMA): 16.5-19Mt
• Energy Coal (NSWEC): 13-15Mt

Share performance of BHP

BHP shares closed 1.78% lower at AUD 39.24 per share on 3 February 2025. Over the past year, BHP’s share price has dropped by almost 17.58% and in the last three months, it has declined by nearly 7.89%.

52-week high of BHP is AUD 46.88, recorded on 5 February 2024 and 52-week low is AUD 38.28, recorded on 6 September 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 03 February 2025. The reference data in this report has been partly sourced from REFINITIV.

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