BHP Raises Copper Guidance, Delivers Record Ore Output, Hikes Dividend 46%
BHP raised copper production guidance after setting half-year records in copper and iron ore and delivering a 25% rise in underlying EBITDA. The miner boosted its interim dividend 46% to $0.73 per share and plans to unlock more than $6 billion through silver streaming and power agreements.
1. Operating Performance
BHP reported half-year production records in copper and iron ore, supported by its operating system which identified performance improvements and cost efficiencies. The company raised Escondida copper guidance for both this year and next, reflecting stronger throughput, recovery rates and byproduct contributions despite lower ore grades.
2. Financial Results and Dividend
Underlying EBITDA rose 25% year-on-year, driven by an $8 billion copper EBITDA at a 66% margin and improved unit costs across operations. Underlying attributable profit reached $6.2 billion, and the interim dividend was increased 46% to $0.73 per share, totaling $3.7 billion.
3. Capital Unlocking Agreements
BHP expects to receive $4.3 billion from a silver streaming deal on its Antamina share and $2 billion from a power tariff agreement linked to Vale operations. Together these deals will unlock over $6 billion, with up to $10 billion potential for redeployment or shareholder returns under its capital framework.
4. Future Guidance and Growth Pipeline
The group targets about 2.5 million tonnes of copper equivalent per annum by the mid-2030s and iron ore volumes above 305 million tonnes by FY2028, with optional upside to 330 million. Jansen stage one is on track for mid-2027 start-up at a cost of $8.4 billion and expected EBITDA of $1 billion per stage when ramped.