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Highlights
- Copper and iron ore production hit record highs in the first nine months of FY25, up 10% and 1% YoY, respectively.
- Profit from operations surged 90% YoY to USD 9.1 billion for 1HFY25, despite an 8% YoY decline in revenue.
- BHP maintains FY25 production guidance and commits to reducing greenhouse gas emissions by 30% by FY30.
BHP Group Limited (ASX:BHP) is one of the largest diversified miners, specialising in the exploration, processing and production of multiple minerals including coal, copper and iron ore. In the nine months ended 31 March 2025 (9MFY25), BHP reported record copper production of 1,500 kilo tonnes (kt), up 10% YoY, and iron ore output of 193 million tonnes (Mt), up 1% from the previous year.
The surge in copper production was largely driven by a 20% output uplift at Escondida, along with the performance of Spence and Copper South America. Despite weather-related disruptions, Western Australia Iron Ore (WAIO) operations delivered record volumes, supporting BHP’s supply chain performance.
Meanwhile, steelmaking coal output at BMA in Queensland rose 5% YoY, overcoming one of the wettest periods in over a decade.
Recent Financial Performance
In the first half of FY25 ended 31 December 2024 (1HFY25), BHP’s revenue slipped 8% YoY to USD 25.2 billion, attributed to lower iron ore and coal prices. Notably, in 1HFY25, the company achieved record sales volume across iron ore, copper, and steelmaking coal.
During the reported period, profit from operations nearly doubled to USD 9.1 billion, a 90% increase from the prior corresponding period and underlying EBITDA fell by 11% YoY to USD 12.4 billion.
Outlook
Despite these pricing headwinds, BHP remains confident about the remainder of FY25. The company expects to meet or exceed its production guidance on the back of key assets including Escondida, NSWEC, Pampa Norte and Samarco. Copper production expected to fall between 1,845–2,045kt, iron ore production at 255–265.5Mt, steelmaking coal at 16.5–19Mt, and energy coal from NSWE&C in the 13–15Mt range.
Enhancements at Escondida, including the extension of the Los Colorados concentrator’s life beyond FY29, are expected to boost medium-term copper output by 400kt annually, raising guidance to 900–1,000 ktpa through FY31.
Furthermore, the miner continues to drive its decarbonisation agenda, aiming to slash operational greenhouse gas emissions by at least 30% by FY30. Progress is being made through OEM partnerships and zero-emission technology trials, though some delays have occurred.
Share performance of BHP
BHP shares closed 0.57% higher at AUD 38.57 per share on 26 May 2025. In a month, BHP’s share price has increased by almost 1.34%, and in a year, it has dropped by approximately 13.60%.
52-week high of BHP is AUD 46.41, recorded on 22 May 2024 and 52-week low is AUD 33.25, recorded on 7 April 2025.
Support and Resistance Summary
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 26 May 2025. The reference data in this report has been partly sourced from EODHD/Others.
Technical Indicators Defined:
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Disclaimer
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