BHP Group has announced a renewed focus on expanding its copper operations following a better-than-expected 2% rise in annual underlying profit. The world’s largest listed miner is prioritizing copper, recognizing its critical role in the energy transition and a challenging outlook for iron ore due to slowing economic growth in China.
After withdrawing a $49 billion bid for Anglo American, which would have significantly enhanced its copper portfolio, BHP is now concentrating on existing projects and new opportunities. CEO Mike Henry emphasized that the company’s primary strategy remains intact, focusing on outlined growth plans rather than acquisitions.
For the fiscal year ending June 30, BHP reported an underlying attributable profit of $13.66 billion, surpassing the Visible Alpha consensus of $13.26 billion. Despite facing a $5.7 billion impairment related to its nickel business and the 2015 Samarco dam disaster, BHP’s shares rose approximately 2% in early trading.
Copper currently accounts for about 30% of BHP’s profits, with plans to increase production in South Australia to over 500,000 metric tons annually by the early 2030s. Recently, BHP announced a joint venture with Lundin Mining to acquire Filo Corp for its copper projects near the Argentine-Chilean border.
BHP maintains a flexible balance sheet, with net debt at $9.1 billion, allowing for potential value-accretive opportunities. The company declared an interim dividend of 74 cents per share, totaling $1.46 for the full year, its lowest since the 2020 financial year but still among the top four in its history.