BHP’s Copper EBITDA Tops Iron Ore as Half-Year Profit Jumps 22%
On Feb. 17, BHP’s underlying profit rose 22% to $6.2 billion in its half-year results, driven by record copper EBITDA of $7.95 billion overtaking iron ore at $7.5 billion for the first time. The miner boosted its interim dividend 46% to $0.73 per share and secured a $4.3 billion silver streaming deal to fund copper expansion without adding debt.
1. Earnings Pivot and Commodity Mix
BHP’s half-year underlying profit climbed 22% to $6.2 billion, marking the first time copper EBITDA of $7.95 billion exceeded iron ore earnings of $7.5 billion. This shift signals a move away from reliance on Chinese steel demand toward electrification metals critical for AI and data centers.
2. Dividend Hike and Balance Sheet Strength
The board approved a 46% interim dividend increase to $0.73 per share, reflecting confidence in cash flows. A $4.3 billion silver streaming deal provides upfront capital to fund copper projects without adding debt, keeping net debt around $14.7 billion and preserving investment-grade metrics.
3. Macro Drivers: AI Demand and Strategic Reserves
New AI training data centers consume up to 47 tonnes of copper per megawatt, creating price‐inelastic demand. Concurrently, a $12 billion government critical minerals reserve offers a price floor and de-risks new mine investment, tightening free‐float supply and underpinning future copper prices.
4. Operational Reliability Versus Peers
BHP achieved record throughput at its Escondida copper mine, while major peers face disruptions: Rio Tinto’s Simandou iron operation remains halted and Freeport-McMoRan is recovering from a mudflow at Grasberg. This stability reinforces BHP’s status as the sector’s most dependable copper producer.