BHP shares push higher on strong Q4 production
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More news: BHP shares jumped in morning trade after the mining giant reported an uptick in fourth-quarter production, topping market estimates.
Shares were up 2.8% to $40.20 at 11:40am AEST.
RBC Capital Markets analyst Kaan Peker said BHP enjoyed a "strong end to FY25", beating fourth-quarter estimates across all of its commodity segments.
However, Peker flagged that delays to first production at BHP's Jansen potash mine, and a likely increase to the project's capital expenditure, distract from what was "otherwise a good FY25".
BHP posts record iron, copper production for FY25
The news: BHP has set records for iron ore and copper production in financial year 2025, coming in within overall guidance as demand from China’s export industries remained strong.
The numbers: Copper production hit two million tonnes across the group representing an 8% increase on financial year 2024.
This included the highest production in 17 years at BHP’s Escondida mine in Chile and record production at the Spence mine. Copper SA in Australia also set production records in June and for the final three months of the year.
BHP’s Western Australian iron ore operations set a full year production record at 290 million tonnes (100% basis) which is a 1% increase on financial year 2024, overcoming the impacts of Tropical Cyclone Zelia and Tropical Storm Sean in Q3.
The ramp up of BHP’s second concentrator at Samarco ahead of schedule also contributed to record iron ore production.
For the full year, steelmaking coal production fell 19% to 36 million tonnes (100% basis) – reflecting the divestment of Blackwater and Daunia mines in Queensland – and energy coal production fell by 2% to 15 million tonnes.
Financial year 2026 production guidance for copper is set at 1.8 million to 2 million tonnes, for iron ore at 258 million to 269 million tonnes, for steelmaking coal at 18 million to 20 million tonnes and for energy coal at 14 million to 16 million tonnes.
The company also flagged a negative EBITDA impact of USD250 million to USD300 million from the shuttered WA Nickel operation. Full-year financial results will be reported on 19 August.
The context: BHP chief executive Mike Henry said that commodity demand has “remained resilient so far in 2025” as China continues to grow its export base despite a significant decline in exports to the US in addition to “robust domestic demand” in China despite weakness in the property sector.
Copper and steel demand is also benefiting from “renewable energy investment, electricity grid build out, strong machinery exports and EV sales”.
Fragmenting global trade will be a potential headwind while stimulus efforts in the US and China would be potential tailwinds.
The company is now looking forward to China’s 15th five-year plan for “more visibility on policies to sustain longer term growth and development”.
The source: ASX
