BHP Group Limited

BHP expects global potash demand to grow 2% to 3% a year and sees the market potentially moving into deficit by 2035, according to Karina Gistelinck, the company's head of potash, in a March interview with Bloomberg. BHP is itself building much of the new supply it refers to through its Jansen project in Saskatchewan, whose first-stage investment is now put at US$8.4 billion, up from US$5.7 billion when it was approved in 2021, with first production back on a mid-2027 schedule. Jansen's first stage is meant to reach 4.1 million tonnes a year within two years of startup, while Buffalo Potash's Initial Production Module at the Disley project in Saskatchewan is designed for 125,000 tonnes a year, roughly 3% of that, with first production targeted for Q1 2027. Buffalo's preliminary economic assessment contemplates up to 1.125 million tonnes a year across three facilities for US$639 million in initial capital, with Disley West and Disley East starting in July and October 2029, but that depends on a positive construction decision gated by a feasibility study. On September 25, Buffalo announced it had finished the third and final horizontal well at the IPM, bringing the project to five wells, with each horizontal well reporting about 95% contact with the target clay seam, though brine circulation has yet to prove the Horizontal Line-Drive system works at commercial scale.

BHP said Tuesday it agreed to sell its Kambalda nickel concentrator plant, along with a package of tenements and mineralization rights in Western Australia, to Gold Fields for an undisclosed sum. BHP called Gold Fields a reliable and credible operator that will evaluate options for the long-term use of the concentrator and offer employment to people directly supporting the asset. BHP suspended operations across its entire Nickel West business in early 2024 as metal prices plunged amid global oversupply, taking a $2.5B impairment on its nickel assets that year. Australia has since designated nickel a critical mineral, making the industry eligible for billions of dollars in government support. BHP said it will review the suspension by February 2027, assessing options including divestment, continuing temporary suspension, restart, or closure.

Impulsa Mendoza has awarded Public Tender No. 2/2026 to Cerro Quebrado S.A., a BHP Group company, granting it an exploration contract with a purchase option for the El Seguro copper project in Argentina's Malargüe Western Mining District. The award gives BHP a second route into the district alongside its alliance with Kobrea Exploration, deepening its copper exploration exposure in a single emerging Andean jurisdiction. The contract sits alongside BHP's recent production and guidance updates, in which copper output in FY2026 fell 3% year on year to 1,952.8 kt and 2027 copper guidance was set below 2026 levels. BHP's narrative projects $56.1 billion in revenue and $13.3 billion in earnings by 2029, with a fair value of A$61.02, while some of the lowest ranked analysts assumed revenue would fall to about US$52.5 billion by 2029 even as earnings rose to roughly US$11.7 billion.

BofA Securities raised its long-term copper price forecast by 20% to $12,000 per ton for 2026 and updated its mining sector rankings, upgrading BHP to Buy with a price objective of A$68 and naming the world's largest copper producer its top pick among large-cap mining stocks. Glencore was rated Buy with a price objective of GBp650, with BofA highlighting its copper growth options and monitoring a potential Australian listing for the diversified miner. Norsk Hydro received a Buy rating with a price objective of NOK98, which BofA described as offering interesting risk-reward characteristics for the pure-play aluminum company. Antofagasta maintained its Buy rating with a price objective of GBp4700, with the bank noting roughly 30% volume growth potential. BofA also trimmed its 2027 aluminum forecast by 5% to $3,625 per ton, and cautioned that investors should be prepared for potential drawdowns of 10% to 20%, noting that during China's super cycle from 2002 to 2008 markets experienced multiple corrections despite overall upward trends.

Kobrea Exploration Corp. announced that the Management Committee under its exploration alliance with BHP Metals Exploration Pty Ltd. has approved a US$4 million Work Program and Budget for the 2026/2027 exploration season at its Western Malargüe Copper Projects in Mendoza Province, Argentina. BHP Metals Exploration will fund the US$4 million program under the alliance agreement, and it will be conducted during the Project Generation Phase. The program is designed to advance known porphyry copper targets and systematically evaluate the broader 733 km² land package for additional prospects. Activities include property-wide geochemical sampling, geological mapping and ground geophysical surveys, as well as diamond drilling at the El Destino copper-gold-molybdenum porphyry prospect, induced polarization at the El Destino and KBX-17 prospects, and property-wide hyperspectral analysis and stream sediment sampling. CEO James Hedalen said the approval allows the company to move into a comprehensive summer field season, combining district-scale exploration with diamond drilling at El Destino, one of the priority targets identified by its technical teams.

BHP Group Limited has begun a progressive resumption of activities at its Escondida asset in Chile, the world's largest copper mine, following a temporary site-wide suspension triggered by a fatal maintenance accident. The company had halted mining operations to conduct safety assessments, evaluate workforce readiness, and secure clearance from Chilean regulatory authorities. BHP holds a 57.5% controlling interest in Escondida, alongside joint-venture partners Rio Tinto with 30% and JECO Corp with 12.5%, and the mine produced approximately 1.3 million tonnes of copper in fiscal 2026. Because copper accounts for over half of BHP's underlying earnings, restoring operational continuity at Escondida is vital to protecting the group's near-term production targets and cash flow generation. The restart comes as BHP faces separate cost pressures, with capital expenditure for Stage 1 of the Jansen potash project escalating 22% to 29% to $7.0 to $7.4 billion, while Jansen Stage 2 faces potential timeline delays.

BHP Group is partnering with US-based SiTration on pilot copper projects in Arizona that extract copper from legacy mining water using SiTration's advanced valorization technology, rather than processing new ore. The collaboration aims to support more sustainable copper production in response to demand from electrification and digital infrastructure. Bench-scale work has already produced LME Grade A copper, and the larger Arizona pilot is targeting about two tonnes of cathode over two months. The key question is scalability, with investors watching for BHP to confirm commercial-scale rollout plans after reviewing pilot results over the next year. BHP, a large A$324.2b resources company, sees copper as a key growth driver alongside iron ore and potash.

Wheaton Precious Metals Corp. has seen strong performance this year, driven by its new precious metals purchase agreement with BHP Group Limited. The $4.3-billion Antamina stream deal, effective April 1, 2026, is Wheaton's largest transaction, increasing its attributable silver to 67.5% and adding 33.75% of payable silver until thresholds step down, with ongoing payments equal to 20% of spot silver. Despite Antamina's second-quarter production falling short due to lower grades and a maintenance shutdown, the mine's silver output rose 56% year over year to 2.3 million ounces. Wheaton's attributable gold-equivalent production increased 13.8% to 414,755 ounces in the first half of 2026, and the company reaffirmed its 2026 guidance of 860,000-940,000 GEOs, expecting a 30% rise at the midpoint from 2025's 692,000 ounces. Wheaton projects 1.2 million GEOs by 2030, with the Antamina deal and new mines driving growth. Shares have jumped 43.5% in a year, and the Zacks Consensus Estimate for 2026 sales is $3.66 billion, up 58.1% year over year.

NexGen Energy Ltd. is in active talks with BHP Group Limited regarding a potential equity stake and financing for its Rook I uranium project in Saskatchewan, as CEO Leigh Curyer revealed on August 17. NexGen, which recently broke ground on the project slated to be one of the world's largest and lowest-cost uranium mines, aims to raise $1 billion in capital over the next nine months through prepayments, debt, or direct equity. The company posted a net income of $74.55 million CAD in Q2 2026, reversing a net loss of $86.69 million CAD a year earlier, and holds $970.25 million CAD in cash and short-term investments. In contrast, BHP reported record FY2026 results with underlying EBITDA of $33 billion, up 27% year-over-year, and free cash flow of $9.8 billion, up 83%. BHP's financial strength and diversified portfolio contrast sharply with NexGen's development-stage profile, making the potential partnership a key catalyst for NexGen's funding gap.

BHP and SiTration, a Massachusetts Institute of Technology spin-out, are planning two pilot programmes of copper recovery technology at BHP's site in the Globe-Miami district of Arizona. The initial phase will be a small-scale trial running over one month, followed later this year by a larger deployment expected to produce up to two tonnes of commercial-scale copper cathodes over two months. The companies aim to extract copper from legacy mining water at the historic Copper Cities site, which produced nearly 400,000 tonnes of copper between the 1950s and early 1980s. SiTration has already conducted bench-scale tests on feedstock from Copper Cities that reportedly produced LME Grade A copper without chemicals, without new waste products, and with energy consumption below 3–4 kilowatt-hours per kilogram. Both companies have signed an agreement to collaborate on the pilot programme and evaluate future opportunities if results are positive.

BHP Group Limited reported that copper generated $18.19 billion of underlying EBITDA in the year ended June 30, overtaking iron ore's $14.53 billion and contributing more than half of group EBITDA for the first full year. Underlying attributable profit rose 30% to $13.2 billion, above consensus estimates of $12.66 billion, while Australian shares climbed as much as 4.2% to a two-month high. The miner reduced net debt to $8.69 billion and lifted its FY2026 dividend to $1.72 per ordinary share, the highest in four years. BHP expects average annual capital and exploration spending of about $11 billion over the medium term, with more than half directed toward copper growth, and estimates its project pipeline could increase attributable copper production by approximately 40% by fiscal 2035. The company produced approximately 2 million metric tons of copper for a second consecutive year and describes itself as the world's largest copper producer, while its average realized copper price increased 35% to $5.74 per pound.

BHP Group, the world's largest listed mining company, reported results for the fiscal year 2026 ended June 30, 2026, with underlying attributable profit of 13.2 billion US dollars, up 30 percent from the prior year and above the Visible Alpha consensus estimate of 12.66 billion US dollars. The company also declared a final dividend of 99 cents per share, bringing total dividends for the full year to 1.72 dollars per share, the highest level in four years. Helped by global copper prices surging past 14,000 US dollars per metric ton to a record high, operating profit from the copper segment reached 18.19 billion US dollars, including by-products from mining such as gold and uranium, surpassing the iron ore segment's 14.53 billion US dollars to become the company's top profit driver. Meanwhile, iron ore operations in Western Australia generated operating profit of 14.67 billion US dollars, up 2 percent from last year and in line with the Visible Alpha estimate of 14.75 billion US dollars. BHP aims to increase copper production capacity by 40 percent by 2035 and expects global copper demand to exceed 50 million metric tons per year by 2050, up from 34 million tons this year. Capital expenditure is expected to rise by more than 1 billion US dollars next year, with the company holding a further 3.5 billion US dollars in assets that can be unlocked under a total capital portfolio plan of 10 billion US dollars. Most recently, Global Infrastructure Partners invested 2 billion US dollars for a minority stake in the power network within the company's mining areas. Net debt fell to 8.69 billion US dollars, below the target range of 10 to 12 billion US dollars and below the Visible Alpha estimate of 9.1 billion US dollars. Brandon Craig, BHP's new chief executive, stressed the importance of the company's project pipeline, saying copper, iron ore, steelmaking coal and potash are all fundamental to global development, so the company must bring these commodities to market as quickly as possible. Although acquiring copper mining assets costs about five times more than developing them internally, BHP continues to watch for market opportunities. For the Western Australia iron ore business, despite facing pressure from a major strike by workers at Port Hedland, the first in decades, Craig expressed confidence it will not have a negative impact on operations while negotiations continue. On trade negotiations with Chinese state-owned iron ore buyers, BHP remains focused on efficient market mechanisms rather than setting up a joint sales desk with other mining producers. Craig also dismissed speculation about a possible review to sell the Queensland steelmaking coal business within the next one to five years, confirming the assets remain an important part of BHP's portfolio if market conditions develop as expected. Regarding reports that NextGen Energy, a Canadian uranium mining company, is exchanging information and holding regular discussions with BHP about the Rook I uranium project in Saskatchewan, Craig said BHP will continue to study options in other commodities but would not speculate or comment further on the matter.

BHP Group is in talks with NexGen Energy over the massive Rook I uranium project in Saskatchewan, moving the mining giant closer to the center of the uranium race. NexGen is searching for roughly $1 billion in funding over the next nine months and is considering a mix of project equity, debt financing and long-term customer agreements. Rook I is not expected to start production until around 2030, but the project could become one of the world's biggest uranium operations. BHP already has uranium exposure through Olympic Dam, and Reuters reported that the mining giant previously explored a potential NexGen acquisition, although BHP has stayed quiet on the latest discussions. Shares gained about 1.4% to $87.96 as investors looked beyond traditional commodities and focused on uranium's growing role in powering the next wave of artificial intelligence infrastructure.

Resolution Copper has awarded contracts totaling approximately $110 million to Major Drilling America and Redpath USA Corporation for early-phase work on its proposed underground copper mine in Arizona. The contracts are part of a planned $500 million investment program and follow the completion of the Final Environmental Impact Statement process, a Record of Decision, and a congressionally required land exchange earlier this year. Major Drilling America will conduct deep-hole directional diamond core drilling over two-and-a-half years, while Redpath USA Corporation will handle the first phase of underground development, including converting two 7,000-foot shafts and installing new infrastructure. The work is expected to create 100 new full-time positions, and a final investment decision remains subject to ongoing data collection, permitting, and partner approvals. Resolution Copper is a joint venture between Rio Tinto, which holds a 55% stake, and BHP, which owns 45%.

Wheaton Precious Metals reported record quarterly revenue of $929 million, an 85% increase year-over-year, driven by higher gold and silver prices and increased sales volumes. Net earnings rose 86% to $543 million, while operating cash flow reached $650 million, up 57%. Second-quarter production was 202,000 gold equivalent ounces, a 6% increase, with sales volumes of 209,000 GEOs, up 14%. The company closed the Antamina silver stream with BHP, the largest precious metals streaming transaction ever, and ended the quarter with a net debt position of approximately $1.9 billion. Wheaton also paid $171 million in dividends and highlighted an industry-leading organic growth profile targeting 1.2 million GEOs by 2030.

The S&P/ASX 200 index of the Australian stock market closed at a record high today, buoyed by the Dow Jones index surging to a new high for two consecutive trading days, as signs of progress in negotiations to end the war between the United States and Iran dragged oil prices lower. The S&P/ASX 200 closed at 9,227.80 points, up 82 points or 0.90 percent, while the All Ordinaries index closed at 9,405.40 points, up 93.50 points or 1.00 percent. Non-energy mining stocks and technology stocks led the market higher, with BHP and Rio Tinto surging 3.3 percent and 2.3 percent respectively on copper business revenue. Gold mining stocks rose in line with gold prices, with Evolution Mining jumping 6.3 percent and Northern Star Resources up 5.8 percent. The big four bank stocks fell between 0.4 percent and 1.4 percent, and energy stocks also declined.

The S&P/ASX 200 index of the Australian stock market closed sharply higher by 121.70 points, or 1.39%, at 8,894.00 points today, supported by a drop in oil prices and an easing of tensions in the Middle East after the United States and Iran temporarily halted attacks on each other. The All Ordinaries index closed at 9,063.80 points, up 122.30 points, or 1.37%. All sectors advanced, led by technology, commercial services, non-energy minerals, and processing industries. Capricorn Metals soared 14.3%, BHP jumped 2.2%, Goodman Group rose 3.3%, Aristocrat Leisure gained 2.1%, and Evolution Mining added 2%. The four major banks rose between 1.1% and 1.5%. However, the market trimmed gains as investors turned cautious ahead of the release of Australia's June and second-quarter 2026 inflation data this week, amid concerns over persistent inflationary pressures.

Zacks Investment Research has identified Freeport-McMoRan, Southern Copper, and BHP Group as copper producers poised to benefit from the massive growth in AI-powered data centers. The four major hyperscalers have raised their AI capital expenditure budget to $750 billion for 2026, a figure expected to surpass $1 trillion next year, with Moody's estimating more than $3 trillion in total investment over the next five years. An AI-led data center consumes ten times more copper than a conventional one, and while data centers currently account for just 1% of global copper demand, the AI boom could dramatically reshape the landscape. Freeport-McMoRan is expanding reserves and executing smelter projects in Indonesia, Southern Copper is advancing over $20.5 billion in investments across Peru and Mexico, and BHP Group is leveraging strong execution at Escondida and Copper South Australia while shifting toward future-facing commodities. All three stocks carry a Zacks Rank of 3, or Hold.

Copper futures for September delivery on the COMEX market closed up 7.60 cents, or 1.21%, at 6.3410 dollars per pound on Monday, supported by declining inventories and lower-than-expected supply from Chile, a major producer. BHP Group signaled that copper output in Chile is likely to decline next year, while South32 missed its production target in the fourth quarter as severe weather affected mines at its Chilean project. Goldman Sachs warned that if the Middle East conflict escalates, it could pressure prices through inflation concerns and prolonged high interest rates, which would hit industrial metals that rely on economic growth, amid steadily falling copper stockpiles.

BHP has approved a $900 million investment to develop the Ministers North iron ore project in Western Australia's Pilbara region. The project will develop the high-grade Brockman ore deposit as a satellite extension of the Yandi mine, leveraging existing infrastructure to reduce costs and improve efficiency. Once fully ramped up, Ministers North is expected to produce 20 million tonnes per annum, supporting BHP's medium-term iron ore production target of 305 million tonnes per year on a 100% basis. Construction is set to begin this month with first ore targeted in fiscal 2029. The joint venture is owned by BHP with 85%, Itochu Corporation with 8%, and Mitsui & Co. with 7%.

BHP Group's iron ore production recovered in the fourth quarter after weather-related disruptions hit output in the prior quarter, while copper production also edged up. West Australian iron ore production, on a 100% basis, rose 7% quarter-on-quarter to 74.8 million metric tons in the three months to June 30, and hit a record high for the fiscal year at 291.2 million metric tons, in line with guidance. Average realised iron ore prices were $83.58 per metric ton, down 2% sequentially but up 5% from a year ago. Copper production rose 3% quarter-on-quarter to 491.9 thousand metric tons, but fell 5% from a year earlier, with fiscal year output down 3% to 1.95 million metric tons, also in line with guidance. BHP guided fiscal 2027 iron ore production of 286 to 298 million metric tons and copper production of 1.65 to 1.80 million metric tons, citing an unexpected snag in its South Australia operations, while average realised copper prices surged to $6.53 per pound, up 11% sequentially and 47% year-on-year.

The Sydney stock market closed higher. Major mining stocks were bought, and iron ore prices rose as concerns over supply disruptions grew due to a planned strike by workers at BHP's Port Hedland operations in Western Australia. The mining stock index gained 1.7 percent, with BHP rising as much as 4.4 percent to hit its highest level in about four weeks. The S&P/ASX index finished up 32.600 points at 8841.100.

BHP Group has secured an initial environmental permit for the expansion of its Escondida copper mine in Chile. The approval allows the company to proceed with early-stage projects valued at $1.3 billion, including sulphide leaching operations and electricity infrastructure improvements. This permit is a key milestone within BHP's broader investment plan, which involves spending between $10.7 billion and $14.7 billion on its Chilean operations in the coming years. The upgrades aim to address declining ore grades and support the company's long-term goal of doubling its global copper output to over two million tonnes by the mid-2030s. BHP holds a 57.5% interest in the Escondida site, with the remaining ownership split between Rio Tinto Group and a consortium of Japanese companies.