Copper Prices Fuel BHP's Record-Breaking Profit Growth
BHP Group (ASX: BHP) reported a significant jump in its full-year underlying profit, driven by higher copper prices. The miner's top earnings driver is now copper, surpassing iron ore as the red metal continues to rise.
Copper prices have reached record highs above $14,000 a tonne this year, fueled by the rapid growth of energy-hungry AI data centers and the global shift towards cleaner power. This surge in demand has intensified mining majors' competition to secure high-grade copper assets.
BHP's CEO Brandon Craig stated that 'Copper is the engine that is driving BHP's growth.' The miner expects copper demand to grow from 34 million tonnes per annum today to more than 50 Mtpa by 2050, driven by increasing energy needs and the transition towards cleaner power.
BHP reported a full-year underlying attributable profit of $13.20 billion for the year ended June 30, beating the Visible Alpha consensus estimate of $12.66 billion. This represents a 30% increase from last year's profit, making it one of the miner's best performances in recent years.