Company Interview / Copper takes the crown at the Big Australian

Key points:

Copper now contributes more than half of BHP earnings, with strong growth from Copper South Australia Cost discipline and by-product credits are said to offset inflation, diesel and geopolitical pressures Janssen potash project and Western Australian iron ore investments are framed as long-term growth pillars

Chief Financial Officer of BHP (ASX:BHP), Vandita Pant states that the miner delivers a standout year, with underlying profit up 30% to US$13.2 billion and revenue rising 15% to almost US$59 billion. Copper is said to overtake iron ore as BHP’s largest earnings driver, with copper earnings up 35% versus a 3% lift in iron ore. Western Australian iron ore operations reportedly achieve record production and shipments with the lowest unit costs in the industry for a seventh year. Pant highlights a full-year dividend of US$8.7 billion, or US$1.70 per share, the highest in four years, equating to a 66% payout ratio.

Pant outlines strong cost discipline across the group, suggesting BHP offsets inflation, currency and diesel headwinds, including impacts linked to Middle East conflict. In Copper South Australia, Olympic Dam is said to record its best production in 20 years, with unit costs falling sharply, supported by by-products such as gold, uranium and silver. Pant signals that a final investment decision on Olympic Dam smelter and refinery expansion is targeted within 18 months, with aspirations to lift Copper South Australia output towards 1 million tonnes of copper equivalent over time.

Pant also emphasises diversification, claiming BHP would still generate over US$15 billion in free cash flow over five years even at the lowest copper and iron ore prices of the past three years. The Janssen potash project is described as 84% complete, with first production targeted for mid next year and long-life margins Pant characterises as highly attractive. Investment in Western Australian iron ore capacity, the Miners North project, and AI-enabled safety systems is presented as underpinning future growth and risk management. Pant concludes that BHP’s growth outlook in copper and potash supports continued attractive shareholder returns while maintaining a strong balance sheet.