BHP Group Ltd (ASX: BHP)
BHP Group Ltd (ASX: BHP), on 17 April 2025 announced its operational review for the nine months ended 31 March 2025.
The company has displayed impressive performance for the nine months ending 31 March 2025, setting records in both iron ore and copper production. The company saw a 10% increase in group copper output due to a 20% rise in production at the Escondida mine and strong performances across other copper asset like Spence and Copper SA. The Western Australia Iron Ore operations achieved record production, overcoming the disruptions caused by Tropical Cyclone Zelia and Tropical Storm Sean. Even in the face of the highest rainfall in over a decade, the company BMA operations in Queensland managed to achieve a 5% rise in steelmaking coal volumes due to solid performance across its open-cut mines.
BHP performance for the half year ending FY25 reflected its operational achievement. Underlying EBITDA reaching US$12.4 billion and a margin of 51.1%. The company also recorded an underlying attributable profit of US$5.1 billion and generated strong net operating cash flow of US$8.3 billion. Capital and exploration expenditure amounted to US$5.2 billion, while dividend of US$2.5 billion were declared, underscoring the company's commitment to rewarding shareholders. BHP ability to consistently generate strong cash flows, with an average EBITDA margin of 53% since FY10, supports its plan of investing in both growth opportunities and shareholder returns.
The company growth policy continues to focus on its copper and potash assets, both of which hold significant potential. BHP copper growth initiatives, including the ongoing development of its Chilean assets like Escondida and the Pampa Norte project, position it to unlock substantial value from the world's largest copper reserves. The company is advancing its Jansen potash project, which is expected to be a low cost, high cash generating asset in the coming years. The potash market is fueled by worldwide megatrends like population growth and increased standards of living, which are creating strong demand for the commodity.
BHP is also advancing its sustainability efforts, principally in lowering its operational greenhouse emissions. The company is on track to meet its target of reducing emissions by at least 30% by FY30, even as it faces challenges with the development of some decarbonization technologies, particularly in the displacement of diesel for materials handling. Though, BHP remains committed to advancing zero-emission technologies, collaborating with Original Equipment Manufacturer partners and conducting trials to drive the pace of innovation.
(Source: Company Announcements)
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
