BHP Smashes Profit Forecasts on Record Copper Prices

BHP Group Limited exceeded expectations and delivered strong full-year earnings, beating profit forecasts. The company's underlying attributable profit rose 30% to $13.20 billion for the year ended June 30.

The world's largest miner saw record copper prices boost its portfolio, pushing the orange metal ahead of iron ore as the main profit driver. Copper delivered record underlying EBITDA of $18.19 billion, representing 54% of group EBITDA and marking the first year the commodity generated the majority of BHP's earnings.

Chief Executive Officer Brandon Craig said, 'Copper is the engine that is driving BHP's growth.' The company produced about 2 million tons of copper for a second consecutive year and expects its pipeline to lift attributable copper production by about 40% to roughly 2 million tons a year by fiscal 2035.

BHP also saw significant free cash flow generated from its copper business, which will be used to fund future growth projects. However, the company faces internal and external challenges, including cost pressures due to the Middle East conflict and labor tensions at Port Hedland.