18th Feb 2025 06:16
(Alliance News) - BHP Group Ltd on Monday reported considerable profit growth in the first half with the company increasing its copper and iron ore output.
The Melbourne, Australia-based mining company said profit attributable to shareholders multiplied to USD4.42 billion in the first half ended December 31 from USD927 million a year prior.
Diluted earnings per share jumped to 86.9 US cents from 18.3c previously.
Revenue declined 7.5% to USD25.18 billion from USD27.23 billion as expenses excluding net finance costs fell 18% to USD16.37 billion from USD19.98 billion.
BHP cut its interim dividend by 31% to 50c from 72c.
Chief Executive Officer Mike Henry said: "The strength of the result demonstrates BHP's operational resilience and its ability to perform through the cycle, with standout production performances in the half from Escondida, [Western Australia Iron Ore] and [BHP Mitsubishi Alliance]. WAIO has maintained its lead as the lowest-cost iron ore producer globally, a testament to our ongoing work to drive productivity at our operations. We continued to invest in growth, including USD3.2 billion in potash and copper, and have now also successfully completed the USD2.0 billion formation of Vicuna Corp, a 50/50 joint venture with Lundin Mining to develop the combined Filo del Sol and Josemaria copper projects in an exciting prospective region in Argentina."
Copper production increased 10% to 987 kilotonnes from 894kt; iron ore production increased 1.6% to 131 metric tonnes from 129Mt; and steel-making coal production declined 21% to 8.9Mt from 11.3Mt.
Capital and exploration expenditure rose 9.7% to USD5.21 billion from USD4.74 billion.
CEO Henry added: "The demand for BHP products remains strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the US and strong growth in India. The trajectory of the world population growing from eight billion today to 10 billion in 2050, with more people living in cities, together with the energy transition and the growth of data centres and [artificial intelligence], will compound the need for more metals and minerals. Against this backdrop, BHP is well positioned, with the ability to leverage our strong balance sheet, technical know-how and sustainable business practices to deliver growth and resilient shareholder returns."
In financial 2025, BHP expects copper production within a range of 1,845kt to 2,045kt, compared with 1,865kt a year prior.
Meanwhile, iron ore production is forecast within a 255Mt to 265.5Mt range, compared with 260Mt before.
BHP shares were 0.4% higher at AUD40.95 each in Sydney on Tuesday morning.
By Elijah Dale, Alliance News reporter
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