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BHP’s Copper Surge Becomes Main Profit Engine

Record copper prices are funding large shareholder payouts alongside higher capital spending to back a project pipeline that could raise output about 40% by 2035.

Overview

  • BHP reported its fiscal 2026 results on Tuesday, showing underlying attributable profit of US$13.2 billion and net profit of US$9.8 billion driven by higher copper prices and volumes.
  • Copper produced roughly 2 million tonnes for a second year and generated about US$18 billion, or roughly 54% of group underlying EBITDA, overtaking iron ore as the biggest earnings contributor.
  • The group announced a final dividend of US$0.99 and a full-year payout of US$1.72 per share, the largest annual distribution in four years, supported by US$21.8 billion in operating cash flow.
  • Management said BHP will raise capital and exploration spending to advance a multi‑jurisdictional copper pipeline across Chile, Australia and Argentina that it says could lift production about 40% by 2035, but cautioned projects, labour and permitting could create delays and higher costs.
  • BHP cut net debt to about US$8.7 billion, reported record iron‑ore shipments from Western Australia and recorded a US$2.3 billion non‑cash impairment on the Jansen potash project, underscoring a balance‑sheet focus while it pivots toward copper growth.