BHP reports record copper sales, while ‘best years still to come’ for coking coal

UBS reports diversified miners are focusing on copper expansion for higher valuations. The bank rates Anglo American (£46 target) and Teck Resources (C$105 target) as buys, citing portfolio restructuring and earnings beats. Freeport-McMoRan (NYSE:FCX, $77 target) is also a buy due to Grasberg mine recovery. BHP, Rio Tinto, and Glencore are rated neutral with respective targets of £29.50, £73, and 570 pence. Shares of these companies showed mixed movements in afternoon trading.

BHP reported a 30% profit increase to $13.2B for FY2026, driven by copper prices. Copper earnings surpassed iron ore, contributing over half of operating earnings. Dividends rose to $1.72 per share. However, operational emissions increased slightly to 9.4 MtCO2e, and BHP may need 3-5M carbon credits to meet its 2050 net-zero target. The company faces challenges in reducing diesel and methane emissions.

BHP Group reported that copper accounted for 54% of its underlying EBITDA in fiscal 2026, with plans to grow copper-equivalent production by 5% annually through fiscal 2035. The company approved $500M for a new concentrator at Escondida, expecting 230,000-270,000 tons of annual copper capacity. BHP aims to increase its Operational Excellence Index to 65 and achieve $650M in EBITDA from technology initiatives by 2027. Capital expenditure is expected to average $11B annually, with a focus on coppe

Wheaton Precious Metals (WPM) and BHP Group (BHP) are involved in a $4.3B silver stream deal for BHP's Antamina mine. WPM CEO Haytham Hodaly expects similar large deals annually, driven by $2.7B annual free cash flow. Veteran investor Rick Rule highlights a $250B financing gap in mining, favoring streaming companies. McEwen Inc. (MUX) founder Rob McEwen criticizes the model for reducing operator resilience.

Australia's ASX200 rose 0.13% to 9,065.5 as US bond intervention boosted precious metals. Gold surged, lifting miners like Evolution and Newmont. BHP gained 2.2%, while Fortescue fell 0.6% after reporting a profit drop. Financials declined, with CommBank down 2.1%. Super Retail soared 16% on sales growth. The AUD strengthened slightly to 71.15 US cents.

BHP Group (BHP) reported that copper overtook iron ore as its largest earnings contributor, with copper generating $18.19B EBITDA vs. iron ore's $14.53B. Profit rose 30% to $13.2B, beating estimates. BHP plans to allocate over half of its $11B annual capital spending to copper growth, aiming for 40% production increase by 2035. Copper prices and byproducts drove the profit increase, but iron ore remains a key cash flow source.