Copper Just Overtook Iron Ore at BHP Group (BHP). Is Its Portfolio Finally Re-Rating?

BHP is reviewing the future of its Kalgoorlie Nickel Smelter, which was mothballed in 2024. A WA MP seeks government bailout support, citing nickel's critical mineral status. BHP may divest or restart the asset by February 2027, with a decision pending. The company reported a $9.8 billion profit for 2025-26.

BHP reported $18.19 billion in copper earnings, surpassing iron ore, with copper contributing 54% of its $32.9 billion EBITDA. Profit rose 30% to $13.2 billion, revenue increased 15% to $58.8 billion, and dividend reached $1.72 per share. BHP is exploring copper opportunities in Zambia, aiming to boost production by 40% by 2035.

BHP Group reported its highest full-year dividend in four years at $8.7 billion. Copper became the largest earnings contributor, generating $18 billion in EBITDA (54% of group EBITDA). The company expects 3-4% annual growth through 2035, with copper growing at 5% annually. BHP also announced operational improvements and investments in copper projects, including a new concentrator at Escondida. According to BHP, copper prices rose 35% and iron ore prices increased 3% during the year.

The S&P/ASX 200 fell 0.27% on Wednesday as gold prices dropped and bond yields surged. CSL rose 17.25% after strong earnings, with Bell Potter raising its price target to $150. BHP gained 2.65% on a 30% profit increase. Gold miners faced pressure, and banks declined amid interest rate concerns. Australia's Wage Price Index release is awaited.

BHP reported that copper overtook iron ore as its largest profit contributor, generating US$18 billion in earnings. BHP forecasts global copper demand to rise from 34 million to 50 million tonnes by 2050, driven by electrification, AI, and data centers. The company plans to increase copper production across its global portfolio, signaling a shift in the mining industry's focus.

BHP reported a 15% revenue increase to $58.76B and 30% profit rise to $13.2B, boosting shares 2.65%. Copper now drives 54% of EBITDA, with margins at 70%. The company raised its full-year dividend to $1.72 per share and reduced net debt to $8.7B. BHP plans to expand copper operations organically, targeting 3-4% annual growth through 2035.