BHP's $13 Billion Profit Driven by Copper Price Surge

BHP's copper division propelled the company to a $13 billion profit in the fiscal year ended June 2026, exceeding expectations and providing reassurance for dividend investors.

The underlying profit rose by nearly a third, driven primarily by higher copper prices, which lifted the commodity's contribution to group earnings from 37% to 54%. The average realized copper price increased about 35% to $5.74 per pound, outperforming iron ore in terms of profitability.

BHP's focus on copper is paying off as it expands its operations and production capacity in Chile, South Australia, and Argentina. The company's Copper South Australia program aims to add several hundred thousand tonnes of additional copper through a Phase 1 opportunity, with a potential final investment decision within the 2027-29 window.

The successful execution of this strategy has led investors to re-rate BHP's stock, but the company still faces risks tied to copper prices and production volumes. As the market awaits further developments, key markers will include confirmation and timing of the Copper South Australia final investment decision, as well as FY27 copper and iron ore production against guidance.