Highlights

  • BHP's FY24 revenue rose 3.4%, reaching USD 55,658 million, driven by copper production.
  • Underlying EBITDA increased by 3.8% in FY24, rising from USD 27,956 million to USD 29,016 million.
  • Copper production increased by 4%, and copper price rose by 17% in Q1 FY25.
  • BHP’s FY25 production outlook includes copper guidance of 1,845-2,045 kt and iron ore at 255-265.5 Mt.

BHP Group Ltd (LSE: BHP) is an Australia-based resources company. It is listed on the FTSE index with a market cap of 105.12 billion.

In FY24, BHP Group saw a 3.4% increase in revenue, rising to USD 55,658 million from USD 53,817 million in FY23, driven by higher copper production and increased average realized prices across various commodities. Its underlying EBITDA increased by 3.8%, from USD 27,956 million in FY23 to USD 29,016 million in FY24. This growth was partly due to exceptional items included in profits from operations, amounting to USD 11,479 million in FY24, compared to USD 5,024 million in FY23.

Recent Business Update

On October 17, 2024, BHP Group shared its Q1 FY25 operational update. In the reported period, copper production increased by 4%, reaching 476,000 tons, compared to 457,000 tons in the prior corresponding period, due to efficient operations. The price of copper also went up by 17%, reaching US$4.24 per pound. Iron ore production rose by 2% to 65 million tons, up from 63 million tons, due to efficient operations. However, the price of iron ore dropped by 18%, now at US$80.10 per ton due to market pressures. Steelmaking coal production fell by 19% to 4.5 million tons, down from 5.6 million tons in pcp, mainly due to operational issues. The price of steelmaking coal also dropped by 9%, now at US$214.86 per ton.

Company Outlook

The company has provided its production guidance for FY25, estimating copper production between 1,845 and 2,045 kt. Iron ore production is expected to range from 255 Mt to 265.5 Mt. Steelmaking coal production is forecasted to be between 16.5 Mt and 19 Mt for FY25.

Looking ahead, copper demand is projected to grow by 70% by 2050. This increase will be driven by global economic expansion, advancements in electrification, energy transition efforts, and the rising need for digital infrastructure, such as data centers.

Top 10 Shareholders

The top 10 shareholders of BHP Group own about 24.50% of the total shares. The Vanguard Group, Inc. holds the largest share, with around 4.99%. State Street Global Advisors Australia Ltd. follows, with approximately 3.97%. This is shown in the chart below.

Stock Information

The stock price of BHP has declined by about 2.36% over the last three months and 11.54% in the past six months. The stock's 52-week low is GBX 1,941.00, and the 52-week high is GBX 2,722.00. Currently, it is trading below the average of its 52-week high and low. As of November 20, 2024, the stock’s closing price is GBX 2060.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 20 November 2024. The reference data in this report has been partly sourced from EODHD/Others.