REG - BHP Group Limited - BHP FY2025 Results Announcement
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RNS Number : 8085V BHP Group Limited 19 August 2025
BHP Group Limited 19 August 2025
Financial results for the year ended 30 June 2025
Record operational performance and capital discipline delivers resilient
returns and growth
"FY25 was another strong year for BHP, marked by record production, continued
sector-leading margins and disciplined capital allocation. Safety remains our
highest priority, and we achieved year-on-year improvements across key
metrics. Against a backdrop of global uncertainty this strong performance has
led to robust financial outcomes and reflects the resilience of BHP's business
and strategy.
We met full-year production guidance across all assets, and set new records in
copper and iron ore. Copper production exceeded 2 Mt for the first time, up
28% over the past three years. We maintained our position as the world's
lowest-cost major iron ore producer at WAIO where we delivered 290 Mt - a new
production record. Underlying EBITDA was US$26 bn with a 53% margin, and
underlying attributable profit was US$10.2 bn. This strong performance allowed
us to determine a final dividend of 60 US cents per share.
We also continue to invest in growth. In each of the next two years we expect
to spend US$11 bn in capital and exploration, reducing to US$10 bn on
average each year between FY28 and FY30. The Jansen project in Canada is
estimated to deliver first potash production by mid-2027. We are optimising
our growth program at Escondida in Chile, Copper South Australia has the
potential to double production through phased expansions and the Vicuña
project in Argentina is advancing towards a multi-decade copper opportunity.
At WAIO, over the medium term we are targeting sustained production of greater
than 305 Mtpa.
We made meaningful progress on sustainability and remain on track to reduce
operational greenhouse gas emissions by at least 30% from FY20 levels by FY30.
Recently we signed charter contracts for two ammonia dual-fuelled bulk
carriers - to progress GHG emissions intensity reduction of our shipping - and
partnered with Aurizon in South Australia to reduce truck movements and
related emissions. Indigenous procurement spend rose 40% over the past year,
and we launched plans for a 158,000-hectare conservation project at Copper
South Australia. In April we achieved gender balance within our global
employee base.
The global economic outlook is mixed. Growth is expected to ease to 3% or
slightly below in the near-term amid shifting trade policies, yet demand for
commodities remains strong, particularly in China and India. Chinese copper
demand outperformed in FY25, while iron ore demand was resilient, driven by
strong infrastructure investment and manufacturing activity in China.
Steelmaking coal prices have softened due to oversupply, though policy shifts
in China and new blast furnace capacity in Asia are expected to support the
market. Potash markets are expected to continue to benefit from a growing and
wealthier population and the need for more sustainable agriculture.
We remain confident in the long-term fundamentals of steelmaking materials,
copper and fertilisers, which are critical to global growth, urbanisation and
the energy transition. Backed by a diversified portfolio of large, long-life
assets, disciplined low-cost operations and a strong balance sheet, BHP is
well-positioned to deliver enduring value through the cycle."
Mike Henry, BHP Chief Executive Officer
Safety Operational excellence
Improvement in key metrics Record copper and iron ore production
Most importantly, in FY25, no one lost their life on the job at BHP. High BHP delivered record group copper production of >2.0 Mt, including a 16%
Potential Injury Frequency (HPIF) i (#_edn1) declined 18% and over the past production increase at Escondida, record production at Spence and record H2
five years our teams have achieved a 63% reduction in HPIF. production at Copper SA.
This result is driven by the significant investment in engineering controls We also delivered record iron ore production of 263 Mt driven by recent
through our Fatality Elimination Program, continuous improvement of how investment in the WAIO supply chain and record production at the Central
leaders support their teams through field leadership and the enhancement in Pilbara hub, where South Flank exceeded nameplate capacity, while retaining
operating discipline delivered through the BHP Operating System. our position as the lowest cost major iron ore producer globally. ii (#_edn2)
Financial results Payments to governments
Attributable profit Total payments to governments
US$9.0 bn Up 14% US$10.4 bn
FY24 US$7.9 bn FY24 US$11.2 bn
The Group's Attributable profit reflects our strong underlying operational and BHP continues to be one of the largest corporate taxpayers in Australia and in
cost performance against a backdrop of global volatility. Chile. Our global adjusted effective tax rate(iii) increased to 37.2% (FY24:
32.5%) and is 44.6% (FY24: 41.7%) once revenue and production-based royalties
are included.
Investing in growth Shareholder value
Capital and exploration expenditure iii (#_edn3) Fully franked final dividend
US$9.8 bn Up 6% US$0.60 per share
FY24 US$9.3 bn 60% payout ratio
We have increased copper production by 28% between FY22 and FY25, and expect We have determined a final dividend of US$3.0 bn.
to invest ~70% of our medium-term capital expenditure in the future-facing
commodities of potash and copper. We also invested US$2.1 bn to acquire a 50% This brings total cash returns to shareholders announced for the year to
interest in the Vicuña joint venture, consisting of the Josemaria and Filo US$5.6 bn, which is US$1.10 per share fully franked.
del Sol deposits, the latter of which is one of the largest copper deposit
discoveries in the last 30 years.
1
BHP | Financial results for the year ended 30 June 2025
Social value
Our approach to social value underpins stable operations, reduces risk and
opens doors to opportunities, partnerships, talent and capital. It delivers
business value. We continue to progress towards our 2030 goals.
Decarbonisation Safe, inclusive, and future-ready workforce
Operational GHG emissions(( iv (#_edn4) )) Female representation(( v (#_edn5) ))
8.7 Mt CO(2)-e 41.3% Up 4.2% pts
Down36% vs FY20 adjusted baseline FY24 37.1%
Our operational GHG emissions were 5% lower than FY24 largely driven by We achieved our gender balance aspiration with female representation in our
ongoing renewable purchase power agreements in execution and the transition of global employee base more than doubling from 17.6% in CY16. We are the first
Western Australia Nickel into temporary suspension in HY25. global, listed mining company to achieve this milestone.
We remain on track to achieve our target of reducing our operational GHG We also improved our representation of women in leadership to 36.5% (FY24:
emissions by at least 30% from FY20 levels by FY30, through structural 31.7%).
abatement.
Healthy environment Indigenous partnerships
Area under nature-positive management practices(( vi (#_edn6) )) Record Indigenous procurement spend vii (#_edn7)
98 k hectares US$853 m Up 40%
Up 14.6 k hectares since FY24 FY24 US$609 m
We initiated our Healthy environment goal roadmap by creating an We achieved record spend, met our FY25 Australian Reconciliation Action Plan
implementation plan for a 158,000-hectare voluntary conservation project at target, and released our first Canada Indigenous Partnerships Plan.
Copper South Australia.
Responsible supply chains Thriving, empowered communities
The Copper Mark Total economic contribution viii (#_edn8)
Escondida and Spence accreditation maintained US$46.8 bn
FY24 US$49.2 bn
In FY25, Escondida and Spence were accredited under The Copper Mark for a During the year, we contributed US$40.5 bn to suppliers, contractors,
second cycle, which is a credible assurance framework for responsible employees, governments and voluntary investment in social projects across the
environmental, social and governance practices. communities where we operate. This was 87% of our total economic contribution
with shareholder payments of US$6.3 bn (13%).
Detailed information on social value is included in Appendix 1
(#_Health,_safety_and) and OFR 9 in the Annual Report
(https://www.bhp.com/AR2025_OFR9)
2
BHP | Financial results for the year ended 30 June 2025
Group financial performance
Earnings and margins
Operational excellence drives strong financial performance in a lower price
environment
Revenue BHP delivered another year of strong operational performance, with record Our adjusted effective tax rate increased to 37.2%. Our operating costs
copper and iron ore production volumes and increased steelmaking coal included US$2.6 bn of revenue or production-based royalties. Including these
US$51.3 bn Down 8% production. ix (#_edn9) payments, our Group effective tax rate was 44.6% (FY24: 41.7%). For further
details see OFR 13 (https://www.bhp.com/AR2025_OFR10ETR)
FY24 US$55.7 bn Revenue however decreased US$4.4 bn primarily due to the decline in iron ore (https://www.bhp.com/AR2025_OFR10ETR) - Effective tax rate
and coal prices. This was partially offset by higher copper prices. (https://www.bhp.com/AR2025_OFR10ETR) .
Our strong operational performance, combined with favourable foreign exchange Attributable profit increased by US$1.1 bn, though Underlying attributable
Attributable profit movements enabled us to lower our unit costs(iii) by (~4.7%) x (#_edn10) profit decreased US$3.5 bn (after adjusting for exceptional items).
across our major assets, against the global rate of inflation of ~3.1%, with
US$9.0 bn Up 14% WAIO maintaining its position as the lowest cost major iron ore producer For further details see
globally,ii and Escondida and Copper SA delivering 18% and 14% reductions in Note 3 - Exceptional items (https://www.bhp.com/AR2025_Note3) and
FY24 US$7.9 bn unit costs respectively. Note 4 - Significant events - Samarco dam failure
(https://www.bhp.com/AR2025_Note4) .
Overall, Underlying EBITDA(iii) decreased 10% due to the lower revenue. Copper
contributed 45% (FY24: 29%) of Group Underlying EBITDA,(iii) increasing to a
Underlying attributable profit(iii) record US$12.3 bn.
US$10.2 bn Down 26% Our Underlying EBITDA margin remained strong at 53%, maintaining our 20-year
average Underlying EBITDA margin above 50%. xi (#_edn11) In copper, we
FY24 US$13.7 bn achieved an Underlying EBITDA margin of 59%, an increase of 8% points, as a
result of record production volumes and lower unit costs in a higher price
environment.
Profit from operations For further details see
Underlying EBITDA waterfall (#_Underlying_EBITDA_waterfall_7_0) .
US$19.5 bn Up 11%
FY24 US$17.5 bn
Underlying EBITDA(iii)
US$26.0 bn Down 10%
FY24 US$29.0 bn
Underlying EBITDA margin(iii)
53%
FY24 54%
Adjusted effective tax rate
37.2%
FY24 32.5%
FY26e 36 - 40%
Detailed financial information is included in Appendix 1 (#_Appendix_1_3_0)
and OFR 5 in the Annual Report (https://www.bhp.com/AR2025_OFR5)
3
BHP | Financial results for the year ended 30 June 2025
Cash flow and balance sheet
Strong cash flow generation supports debt service capacity and provides
investment optionality
Net operating cash flow Our net operating cash flow decreased primarily as a result of lower realised We paid dividends to BHP shareholders of US$6.4 bn, and to non-controlling
prices, particularly in iron ore and coal. These were partially offset by interests of US$1.9 bn; and we also paid US$1.8 bn in Samarco settlement
US$18.7 bn Down 10% record copper production and favourable foreign exchange movements. obligations.
FY24 US$20.7 bn We generated free cash flow of US$5.3 bn after investing US$9.8 bn of capital As at 30 June 2025, our net debt increased by US$3.8 bn from 30 June 2024 to
and exploration expenditure including US$4.5 bn in copper, US$1.6 bn in US$12.9 bn.
potash and US$3.2 bn in steelmaking materials.
Since we last revised our net debt target range in 2022, our underlying
Capital and exploration expenditure Capital and exploration expenditure guidance remains unchanged in FY26 and portfolio fundamentals have improved with materially higher copper production,
FY27 at ~US$11 bn. xii (#_edn12) We have sought to optimise our capital improved operational stability, an industry leading cost position at WAIO and
US$9.8 bn Up 6% profile over FY28 to FY30, and reduced forecast capital spend by US$1 bn per lower unit costs at our operated copper assets leading to improved debt
annum, to ~US$10 bn each year on average over this period.xii service capacity.
FY24 US$9.3 bn
We also invested US$2.1 bn to acquire a 50% interest in the Vicuña joint Our balance sheet remains strong, and we are putting it to work to assist in
FY26e ~US$11 bn venture, consisting of the Josemaria and Filo del Sol deposits, the latter of funding our suite of high-quality organic growth projects while we continue to
which is one of the largest copper deposit discoveries in the last 30 years. deliver attractive shareholder returns. As a result, we have increased our net
debt target range to between US$10 bn and US$20 bn (from between US$5 bn and
As well as Vicuña, we have a strong pipeline of growth projects, including at US$15 bn).
Free cash flow(iii) Jansen, Escondida, Copper SA and WAIO. We maintain flexibility to adjust our
capital spending and phasing of projects to accommodate market dynamics and Our global credit ratings(( xiii (#_edn13) )) remained unchanged in FY25.
US$5.3 bn Down 55% cash flow generation. Moody's rating is A1(stable)/P-1 and Fitch's rating is A (stable)/F1
(long-term/short-term respectively).
FY24 US$11.9 bn
For further details see Note 21 (https://www.bhp.com/AR2025_Note21)
(https://www.bhp.com/AR2025_Note21) - (https://www.bhp.com/AR2025_Note21)
(https://www.bhp.com/AR2025_Note21) Net debt
Net debt(iii) (https://www.bhp.com/AR2025_Note21) .
US$12.9 bn
FY24 US$9.1 bn
HY25 US$11.8 bn
Gearing ratio(iii)
19.8%
FY24 15.7%
HY25 19.2%
Detailed financial information is included in Appendix 1 (#_Appendix_1_3_0)
and OFR 5 in the Annual Report (https://www.bhp.com/AR2025_OFR5)
4
BHP | Financial results for the year ended 30 June 2025
Value and returns
Operational performance and disciplined capital allocation deliver excellent
returns
Final dividend Earnings per share - basic Our operations continued to generate strong Underlying ROCE of 20.6%, with
Escondida and WAIO achieving 37% and 43% respectively.
60 US cps 177.8 US cps
A final dividend of US$0.60 per share (US$3.0 bn) has been determined,
Fully franked FY24 155.8 US cps equivalent to a 60% payout ratio, with a payment date to shareholders of 25
September 2025.
60% payout ratio
This extends our track record of strong returns while balancing investment in
growth. Including the FY25 final dividend determined, we will have returned
US$59 bn cash to shareholders since 1 January 2020.
Underlying return on capital employed (ROCE)(iii) Earnings per share - Underlying(iii)
20.6% 200.2 US cps
FY24 27.2% FY24 269.5 US cps
Important dates for shareholders
BHP's Dividend Reinvestment Plan (DRP) will operate in respect of the final
dividend. Full terms and conditions of the DRP and details about how to
participate can be found at: bhp.com/DRP (http://www.bhp.com/drp)
Events in respect of the final dividend Date
Announcement of currency conversion into RAND 26 August 2025
Last day to trade cum dividend on Johannesburg Stock Exchange (JSE) 2 September 2025
Ex-dividend Date JSE 3 September 2025
Ex-dividend Date Australian Securities Exchange (ASX) and London Stock 4 September 2025
Exchange (LSE)
Ex-dividend Date New York Stock Exchange (NYSE) 5 September 2025
Record Date 5 September 2025
Announcement of currency conversion into AUD, GBP and NZD 8 September 2025
DRP and Currency Election date 8 September 2025(1)
Payment Date 25 September 2025
DRP Allocation Date(2) 9 October 2025
1 5:00 pm AEST.
2 Allocation dates may vary between registers but all allocations
will be completed on or before 9 October 2025.
Shareholders registered on the South African branch register will not be able
to dematerialise or rematerialise their shareholdings between the dates of 2
September 2025 and 5 September 2025 (inclusive), and transfers between the
Australian register and the South African branch register will not be
permitted between the dates of 26 August 2025 and 5 September 2025
(inclusive). American Depositary Shares (ADSs) each represent two fully paid
ordinary shares and receive dividends accordingly.
Any eligible shareholder who wishes to participate in the DRP, or to vary a
participation election should do so before 5.00 p.m. (AEST) on 8 September
2025, or, in the case of shareholdings on the South African branch register of
BHP Group Limited, in accordance with the instructions of your CSDP or broker.
The DRP Allocation Price will be calculated in each jurisdiction as an average
of the price paid for all shares actually purchased to satisfy DRP elections.
The DRP Allocation Price applicable to each exchange will be made available
at: bhp.com/DRP (https://www.bhp.com/drp/)
5
BHP | Financial results for the year ended 30 June 2025
Economic outlook
xiv (#_edn14)
BHP's external operating environment in FY25 was shaped by complex and
evolving global developments. Policy uncertainty, particularly around tariffs,
fiscal policy, monetary easing, and industrial policy, has been elevated and
continues to influence investment and trade flows. Despite these dynamics,
commodity demand remained resilient. Copper prices were volatile but rising
towards the end of the period. Steel raw material prices ended the year below
where they began, though iron ore has since rebounded to near its FY25
average.
The International Monetary Fund (IMF) projects global growth to moderate to 3%
in CY25, an upward revision from its April estimate of 2.8%, albeit slower
than the CY24 outcome of 3.3%. This reflects ongoing trade policy shifts,
though we anticipate that fiscal and monetary policy support will provide an
important offset to these headwinds, helping to cushion the impact on
commodity demand.
China's economic growth exceeded expectations in H1 CY25, recording 5.3%
year-on-year growth. This strength was supported by fiscal stimulus and robust
export activity ahead of the implementation of US tariffs. While some
moderation is expected in the second half as the temporary boost from
'pulled-forward' exports fades and tariffs continue to take effect, policy
support is likely to remain a key stabiliser. We expect the outlook to remain
constructive as China continues to rebalance its economy and strengthen
domestic demand. India will likely remain the fastest-growing major economy,
driven by sustained public investment, improving monetary conditions, and
resilient service sector activity. Its relatively low trade exposure compared
to regional peers, along with the government's capacity to deliver targeted
support, positions it to weather the commodity demand impact of recent tariff
developments. Developed economies will need to navigate rising trade barriers
and policy uncertainty, although supportive fiscal and monetary policy will
help mitigate downside risks.
Commodity demand
Demand for most of our commodities was stronger than expected in H1 CY25.
Chinese policymakers introduced a range of supportive measures over the last
year that have underpinned steel and metals-related manufacturing activity.
Chinese grid investment, automotive production, and machinery output all
recorded YoY growth exceeding 10% in H1 CY25. China's housing sales also
showed some signs of stabilisation in the most populous cities, and the
ongoing decline in total housing starts and completions slowed in H1 CY25
compared with CY24. Consequently, Chinese steel end-use demand was resilient,
while copper was stronger than expected over the period, supported by robust
infrastructure investment and manufacturing activity. Manufacturing exports to
emerging economies remained solid and offset weaker direct exports to the
United States.
Indian commodity demand continues to grow strongly, though competing imports
from China narrowed margins for the steel industry over the last year. We
expect the country's economic growth to remain resilient over the next two
years, supported by strong structural fundamentals and long-term development
momentum.
Over the long term, population growth, urbanisation, rising living standards,
and the infrastructure required for digitalisation and decarbonisation are all
expected to drive demand for steel, non-ferrous metals and fertilisers. We
also believe that China's economic transition is expected to result in an
increase in demand for copper and potash.
For the review and outlook relating to our individual commodities please refer
to the relevant sections below.
Costs and inflation
Inflationary pressures across our cost base have largely normalised, although
pockets of pressure persist in some areas, and overall cost levels remain
materially higher than pre-pandemic benchmarks. In Australia, headline
consumer inflation remained within the Reserve Bank's 2 - 3% target range over
FY25. Chile was an exception, where electricity price adjustments temporarily
lifted inflation in FY25, though it has been easing since January. While
consumer inflation has fallen to close to 2% in Canada, price growth for
industrial construction works has been significantly stronger, increasing by
over 10% in the past two years in Saskatoon. This has placed upwards pressure
on costs for Jansen.
Labour market conditions have also moderated, with varying regional dynamics.
In Australia, wage growth has broadly returned to long-term average levels.
However, recent regulatory changes have introduced uncertainty into workforce
planning, with implications for labour costs and Australia's international
competitiveness. In Chile, the mining labour market has remained strong, with
employment reaching record highs during FY25 while wage growth is broadly
consistent with historical trends.
Movements in raw material input costs have been mixed. Ammonia and diesel
prices have generally trended lower, with diesel reflecting expectations of
global oversupply, albeit with some geopolitical-induced volatility at the end
of FY25. In contrast, prices for sulphuric acid and natural rubber have been
more variable, averaging higher in FY25 compared to FY24.
Overall, the cost of mining production is higher than it was at the beginning
of the decade. This implies that price support is also higher, and low-cost
operators are well positioned to capture relatively stronger margins in
certain commodities.
6
BHP | Financial results for the year ended 30 June 2025
Segment and asset performance
Detailed financial information on all business segments in the Financial
performance summary (#_Financial_performance_summary1_3)
Copper
Production Commodity review and outlook
Copper was heavily influenced by the threat of tariffs on US copper imports
2,017 kt Up 8% for much of H2 FY25. US prices on COMEX traded at a significant premium to the
London Metal Exchange (LME), which incentivised much of the world's available
FY24 1,865 kt cathode to be shipped to the United States. Declining copper inventories
elsewhere helped lift LME copper prices above US$10,000/t (US$4.54/lb) at the
FY26e 1,800 - 2,000 kt end of FY25. Average prices for H2 FY25 were around US$9,400/t (US4.28/lb), up
against the prior half, as well as year-on-year. In July 2025, the US
announced tariffs would exclude copper cathode, largely closing the COMEX-LME
differential. Forward curves suggest the market still sees a risk of future
Average realised price tariffs, which could continue to influence trade flows.
US$4.25/lb Up 7% Chinese copper demand was stronger than expected during FY25, with growth in
power infrastructure investment and policy support for domestic consumer
FY24 US$3.98/lb durables supplemented by a sharp rise in exports of manufactured goods.
Chinese demand in FY26 is expected to remain strong, though growth will
decelerate off the current high base.
Underlying EBITDA We maintain our expectation for the copper market to be broadly balanced in
the coming year. Mine supply has seen some challenges in recent months, with
US$12.3 bn Up 44% growth expectations downgraded in several regions. Trade barriers could also
hinder the movement of copper scrap, which may lead to greater demand for
FY24 US$8.6 bn primary supply.
45% contribution to the Group's Underlying EBITDA In the late 2020s, we expect new, as-yet uncommitted, mine supply to be
required as demand continues to grow and existing supply peaks. The world is
59% Underlying EBITDA margin expected to need around 10 Mt of new annual mine supply over the next 10 years
to meet growing demand.
In the longer run, copper fundamentals remain attractive. Demand is expected
Underlying ROCE to grow from ~33 Mt today to >50 Mt by 2050, with the key drivers being
'Traditional' economic growth (home building, electrical equipment and
17% household appliances), 'Energy Transition' (renewables and electric vehicles)
and 'Digital' (Artificial Intelligence and Data Centres). We anticipate that
FY24 13% the cost curve for the mines needed to meet this demand is likely to steepen
as both operational and development challenges progressively increase. For
future mine supply to be incentivised we believe prices still need to rise
from levels seen in H2 FY25.
Capital and exploration expenditure
Segment outlook
In FY25, BHP's total copper production increased for a third consecutive year
US$4.5 bn to a record 2,017 kt, 28% higher than in FY22 xv (#_edn15) , driven by strong
performances across all operated copper assets. This drove a 44% increase in
FY24 US$3.9 bn our total copper Underlying EBITDA to US$12.3 bn and increased copper's
contribution to the Group's Underlying EBITDA to 45% (FY24: 29%).
FY26e ~US$5.1 bn
Group copper production for FY26 is expected to remain strong at between 1,800
kt and 2,000 kt on a consolidated basis. As we look ahead to the 2030s, we
have a number of projects in execution and under study that we estimate could
deliver ~2 Mtpa of attributable copper production during the decade. xvi
(#_edn16) These include:
· In Chile, we have a strong pipeline of organic growth options with
attractive returns across our Escondida and Pampa Norte assets, which we
expect will enable copper production in Chile to average ~1.4 Mtpa through the
2030s. Since the Chilean copper site tour
(https://www.bhp.com/investors/presentations-events/presentations-and-briefings)
in November 2024, we have further optimised and sequenced various elements of
our growth program at Escondida that we estimate will generate an incremental
~400 kt of cumulative production over FY27 to FY31, weighted to the later
years.
7
BHP | Financial results for the year ended 30 June 2025
· In South Australia, we are assessing the pathway to deliver >500
ktpa of copper production (>700 ktpa CuEq), and a strategy to deliver up to
650 ktpa copper production from the 100%-owned Copper SA. xvii (#_edn17)
During FY25, we have further optimised the sequence of this growth program.
· In Peru, we hold a 33.75% share in Antamina, a top 10 global copper
producer. xviii (#_edn18) Antamina is expected to produce between 120 - 140
kt in FY26, and in FY24 it received environmental approval to continue mining
to 2036 (from 2028).
· BHP Canada and Lundin Mining have formed the joint venture company,
Vicuña, to hold the combined Josemaria and Filo del Sol copper deposits
located in the Vicuña district of Argentina and Chile, the latter of which is
one of the largest copper deposit discoveries in the last 30 years.
· We also have a 45% interest in the Resolution Copper Project in the
United States, one of the largest undeveloped copper projects in the world,
with the potential to become a significant copper producer in North America.
BHP has entered into a binding agreement for the divestment of the Carajás
assets in Brazil to a wholly-owned subsidiary of CoreX Holding on 15 August
2025 for a total consideration of up to US$465 m. This is structured as US$240
m received on completion and up to US$225 m as contingent payments based on a
range of production and project related targets, with the potential for the
contingent payments to begin as early as 2027. Subject to the satisfaction of
customary closing conditions (including regulatory approvals), the transaction
is expected to complete in early CY26. This transaction follows a strategic
review in 2024, which concluded that the Carajás assets would benefit from
owners prioritising the operations and developing the assets to their full
growth potential.
8
BHP | Financial results for the year ended 30 June 2025
Escondida
Copper production Unit cost(1,2) Underlying EBITDA
1,305 kt Up 16% US$1.19/lb Down 18% US$8.6 bn Up 49%
FY24 1,125 kt FY24 US$1.45/lb FY24 US$5.8 bn
FY26e 1,150 - 1,250 kt FY26e US$1.20 - US$1.50/lb
Medium-term(3) 900 - 1,000 ktpa Medium-term(3) US$1.50 - US$1.80/lb
1 Based on exchange rates of: FY25 USD/CLP 951 (realised); FY24
USD/CLP 907 (realised); FY26 and medium-term USD/CLP 940 (guidance).
2 Refer to OFR 13 - (https://www.bhp.com/AR2025_OFR13UC)
(https://www.bhp.com/AR2025_OFR13UC) Non-IFRS information
(https://www.bhp.com/AR2025_OFR13UC) for detailed unit cost reconciliation.
3 Medium-term refers to an average for FY27 - FY31.
Financial performance
Underlying EBITDA increased 49% primarily as a result of:
· Increased sales volumes in line with higher concentrator feed grade
and throughput due to operational improvements, mine sequencing and higher
levels of material mined, which had a favourable impact of US$1.8 bn; and
· Higher realised copper prices, which had a favourable impact of US$1.0
bn (net of price linked costs).
These were partially offset by the impacts of one-off labour related costs.
Overall Escondida unit cost performance was strong, delivering an 18%
reduction due to the increase in production volumes, partially offset by the
impact of general inflation.
Asset outlook
Production for FY26 is expected to be between 1,150 and 1,250 kt as
concentrator feed grade for FY26 is expected to be lower at ~0.85%.
Full SaL, a BHP designed leaching technology which has already been
successfully deployed at Spence, delivered first production during FY25. We
expect it to produce ~410 kt in copper cathodes at Escondida over a 10-year
period through improved recoveries and shorter leach cycle times.
Since the Chilean copper site tour in November 2024, we have identified
several positive initiatives to improve the capital efficiency, production
profile and value of the Escondida growth program. These include:
· Several low capital intensity productivity initiatives that can be
executed immediately across the Laguna Seca concentrators.
· We also plan to extend the life of Los Colorados concentrator by ~6-12
months and, in parallel, optimise the demolition process to allow earlier
access to high grade PL2 zone ore to offset the impact of this extension.
These initiatives are expected to generate an incremental ~400 kt of
cumulative production at Escondida over FY27 to FY31, with most of this
occurring over the later years. Medium term guidance remains between 900 -
1,000 ktpa across FY27 to FY31, with grade below 0.80%.
Beyond this, timing of elements of the Laguna Seca Expansion are being
considered, lowering capital investment and project execution risk. This
staged execution of the overall program is expected to reduce the capital
required in the FY26 to FY31 period, generating earlier free cash flow and
improving returns.
Our plans for a new concentrator remain core to the growth program and on
track for a potential FID by CY27-28, and first ore by CY31-32. Economics for
the potential new concentrator are unchanged from the Chilean copper site tour
and remain attractive with an expected capital intensity of US$15 - 21k/t
copper equivalent and IRR of 13 - 16%. xix (#_edn19) We also continue to
study various leaching technologies, with each at different stages of
evaluation.
Our permitting strategy has progressed as expected and the first permit
application submitted in March 2025 will enable critical early works to
achieve our optimised plan. Permitting for the new concentrator is under
preparation and will be submitted by the end of FY26.
The overall changes and initiatives above do not materially change our total
expected production aspiration over FY31 to FY40 from what we expected at the
time of the Chilean copper site tour, which remains an average of ~1.4 Mtpa
for Chile. However, we now expect this to be achieved with lower overall
capital required.
9
BHP | Financial results for the year ended 30 June 2025
Pampa Norte
Copper production(1,2) Spence unit cost(2,3,4) Underlying EBITDA
268 kt Up 1% US$2.07/lb Down 3% US$1.3 bn Up 42%
FY24 266 kt FY24 US$2.13/lb FY24 US$0.9 bn
FY26e 230 - 250 kt FY26e US$2.10 - US$2.40/lb
Medium-term ~235 ktpa Medium-term US$2.05 - US$2.35/lb
1 FY25 production is for Spence only. FY24 includes 11 kt from Cerro
Colorado which entered temporary care and maintenance in December 2023.
Excluding these volumes, FY25 production increased 5%. Medium-term guidance
refers to an average of ~235 ktpa over five years.
2 FY26 and medium-term production and unit cost guidance is provided
for Spence only.
3 Refer to OFR 13 - (https://www.bhp.com/AR2025_OFR13UC)
(https://www.bhp.com/AR2025_OFR13UC) Non-IFRS information
(https://www.bhp.com/AR2025_OFR13UC) for detailed unit cost reconciliation.
4 Based on exchange rates of: FY25 USD/CLP 951 (realised); FY24
USD/CLP 907 (realised); FY26 and medium-term USD/CLP 940 (guidance).
Financial performance
Underlying EBITDA increased 42% predominately due to increased sales volumes,
driven in part by record production, and higher realised copper prices.
Unit costs at Spence decreased by 3% due to record production volumes,
partially offset by the impact of general inflation.
Asset outlook
Production at Spence for FY26 is expected to be between 230 and 250 kt.
Production is expected to average ~235 ktpa over the next five years due to
increased processing of transitional ores as we progress from the supergene to
the hypogene zone.
Since the Chilean copper site tour in November 2024, we have continued to
advance options to expand and debottleneck the Spence concentrator to further
lift throughput and recoveries. This could potentially increase copper
production by 10 - 15 ktpa and FID for these projects is expected in CY27.
We also continue to advance the option for the implementation of BHP's
patented Simple Approach to Leaching 2 (SaL2) technology at the sulphide leach
pad, which would enable processing of transitional and hypogene ores. The
ability to leach low-grade ores would allow us to prioritise higher grades at
the concentrator and potentially extend life of cathode production.
Cerro Colorado entered temporary care and maintenance in December 2023 and we
are continuing to study the application of BHP's Full SaL leaching technology
to potentially restart operations in the future.
10
BHP | Financial results for the year ended 30 June 2025
Copper South Australia
Copper production Unit cost(1,2) Underlying EBITDA
316 kt Down 2% US$1.18/lb Down 14% US$1.9 bn Up 23%
FY24 322 kt FY24 US$1.37/lb FY24 US$1.6 bn
FY26e 310 - 340 kt FY26e US$1.00 - US$1.50/lb
1 Based on exchange rates of: FY25 AUD/USD 0.65 (realised); FY24
AUD/USD 0.66 (realised); FY26 AUD/USD 0.65 (guidance) and prices for
by-products of: gold US$2,900/oz, and uranium US$70/lb (guidance). (FY25
prices for by-products: gold US$2,000/oz, and uranium US$80/lb (guidance)).
2 Refer to OFR 13 - (https://www.bhp.com/AR2025_OFR13UC)
(https://www.bhp.com/AR2025_OFR13UC) Non-IFRS information
(https://www.bhp.com/AR2025_OFR13UC) for detailed unit cost reconciliation.
Financial performance
Underlying EBITDA increased 23% predominantly as a result of:
· Higher average realised prices for copper, gold and silver, which had
a favourable impact of US$0.4 bn (net of price linked costs); and
· Higher sales volumes reflecting strong underlying performance,
including recovery following the weather-related power outage in Q2 FY25.
This was partially offset by inventory drawdowns which resulted in higher
operating costs, though unit costs declined 14%.
Asset outlook
Production for FY26 is expected to be between 310 and 340 kt, weighted to the
second half.
Copper SA's performance has improved significantly over the past few years. We
now consistently deliver >300 ktpa copper production (>450 ktpa copper
equivalent production), supporting strong unit cost performance and increasing
annual free cash flow. This operational stability provides a strong foundation
to invest in the business, with growth programs now advancing at all assets.
· At Prominent Hill, the Operation Expansion (PHOX) project has
progressed, with shaft sinking completed in Q4 FY25. Work to complete the
hoisting infrastructure is also continuing to progress. The project is
forecast to be completed in H2 FY27 for a total investment of US$0.9 bn. The
Wira shaft hoisting system is expected to extend the mine life to at least
2040.
· At Carrapateena, the commissioning of Crusher 2 has supported higher
productivity from the sub-level cave and we continue to invest in processing
plant capacity to enable an uplift in throughput to 7 Mtpa of mined ore. The
Block Cave Expansion project is progressing with underground development for
an access decline below the existing sub-level cave continuing. The project is
expected to extend the mine life beyond the existing sub-level cave and
increase throughput up to 12 Mtpa, ramping up from FY29.
· At Olympic Dam, the Southern Mining Area Decline was approved during
the year for a total investment of US$0.2 bn and has commenced construction.
It is expected to unlock up to 2.5 Mtpa of additional vertical capacity and
support future mine expansion options, with completion expected in FY28.
At Oak Dam, exploration activity peaked at 13 active drill rigs during the
period (8 now active). We are seeking government, heritage and regulatory
approvals to begin execution activities on twin underground access declines.
During FY25, we continued to study the potential Smelter and Refinery
Expansion (SRE), including sequencing, to optimise the profile of capital
spend. We expect to consider the first phase of the potential project for FID
in HY28, to align with execution of the Smelter Campaign Maintenance 2027
program (SCM27). The first phase would involve a transition to a two-stage
smelter configuration with 1,100 to 1,400 ktpa concentrate smelting capacity
better suited to asset mineralogy, which would be expected to unlock remaining
synergies from the OZL acquisition. This would be supported by production
growth from Carrapateena and Olympic Dam. The second phase of the expansion
would increase capacity to align with potential further growth from Oak Dam
and Olympic Dam, including OD Deeps.
11
BHP | Financial results for the year ended 30 June 2025
Iron ore
Production Commodity review and outlook
Iron ore benchmark prices averaged around US$100/dmt in H2 FY25, similar to
263 Mt Up 1% the first half. The price was supported by steady seaborne iron ore demand and
relatively weak iron ore supply from the major seaborne exporters in the March
FY24 260 Mt quarter. Chinese demand has been resilient, benefiting from solid
infrastructure investment, healthy manufacturing particularly for sectors
FY26e 258 - 269 Mt related to the energy transition, and strong steel exports. These factors
offset continued weakness in the real estate sector. Iron ore demand in the
rest of the world was mixed: demand from developing Asian economies continued
to grow along with new blast furnace capacity, while Developed Asia and
Average realised price (WAIO) European demand was impacted by planned blast furnace capacity retirements and
maintenance in response to subdued steel demand.
US$82.13/wmt Down 19%
Looking ahead, rising trade protectionism could weigh on global iron ore and
FY24 US$101.04/wmt steel demand in the near term. Seaborne supply is expected to be higher as
production from existing supply basins normalises, and as new capacity comes
onto the market including from Simandou.
Underlying EBITDA Our estimate of cost support continues to sit in the US$80 - 100/t range on a
62% Fe CFR basis, formed by approximately 180 Mt of higher cost supply, mainly
US$14.4 bn Down 24% from Australian junior miners, Indian fines and some Chinese domestic mines.
Over 60% of this supply sits above the US$90/t mark for cost support. Export
FY24 US$18.9 bn volumes of price-sensitive Indian fines continued to drop significantly over
H2 FY25. As the market turns more competitive, some additional high-cost
53% contribution to the Group's Underlying EBITDA suppliers may leave the market in the coming years.
63% Underlying EBITDA margin We maintain our view that China's steel production is likely to maintain its
plateau around the 1 Bt level until the late 2020s. However, Chinese pig iron
production is expected to decline over this period with more scrap used in
steelmaking. In the long run, seaborne iron ore trade is likely to undergo
Underlying ROCE (WAIO) steady diversification as demand grows in other developing regions. On the
supply side, traditional suppliers may need to weigh future investment to
43% sustain production in the face of grade decline and resource depletion.
Segment outlook
FY24 61%
Over the last 6 years, WAIO has solidified its position as the lowest cost
major iron ore producer globally,ii building margin resilience as steel
production in China has plateaued.
Capital and exploration expenditure (WAIO) We plan to increase production to >305 Mtpa (100% basis) and decrease unit
costs to 305 Mtpa (100% basis) production from Q4 FY28.
FY26e ~US$3.3 bn
In Brazil, Samarco is set to double production capacity following the restart
and ramp up of a second concentrator, helping to support the local community
through jobs, investment and taxes.
12
BHP | Financial results for the year ended 30 June 2025
Western Australia Iron Ore
Iron ore production Unit cost(1,2) Underlying EBITDA
257 Mt Up 1% US$18.56/t Up 2% US$14.4 bn Down 24%
C1 US$17.29/t(3)
FY24 255 Mt FY24 US$18.19/t FY24 US$19.0 bn
FY26e 284 - 296 Mt (100% basis) FY26e US$18.25 - US$19.75/t
Medium-term >305 Mtpa (100% basis) Medium-term 305 Mtpa
(100% basis) from Q4 FY28 through a period of planned major car dumper
renewals beginning in FY29. It will also improve our ore blending and
screening capability at the port. CD6 is expected to generate attractive
returns of >30%, with a payback period of less than 3 years after first ore
in Q4 FY28. xxi (#_edn21)
Sustained production of >305 Mtpa (100% basis) over the medium term will be
supported by increased rail operation capacity unlocked by RTP1, and the
Western Ridge Crusher Project, which will replace production from the
depleting orebodies around Newman (first production Q1 FY27; low capital
intensity of US$38/t). Average annual sustaining capital expenditure guidance
over the medium term, excluding costs associated with CD6, operational
decarbonisation and automation programs, remains unchanged at
~US$6.50/t. xxii (#_edn22) We anticipate that this will also include
Ministers North (utilising the existing Yandi infrastructure), which is
subject to potential FID in FY26.
By leveraging the installed infrastructure, improved labour productivity, such
as the transition to autonomous haulage across all sites (excluding Yandi) and
the improvements from the implementation of the BHP Operating System, we
expect unit costs to decrease to 1.0% copper. We are
FY24 US$457 m seeking government, heritage and regulatory approvals to begin execution
activities on twin underground access declines.
Our greenfield exploration strategy is focused on the discovery of
high-quality resources, with a current focus on copper. We leverage advanced
technologies including AI-driven geoscience models, machine learning and
proprietary data systems to accelerate high-value mineral discoveries, improve
exploration precision and unlock new resources globally.
In May 2025 we announced a partnership with Codelco to explore the Anillo
project in Antofagasta, Chile. The property is located approximately 30 km
from Escondida and BHP has agreed to invest up to US$40 m.
Our other greenfield exploration activities are currently focused on Chile,
Peru, Canada, Australia, Serbia, Norway, Finland, Botswana and the United
States.
Applications for the fourth round of Xplor will open in September. This
innovative accelerator program enables BHP to partner with early-stage
exploration companies that have the potential to help shape our future growth
pipeline. Since the program's inception in 2022, we have formed follow-on
commercial arrangements with several companies.
Vicuña, our joint venture in Argentina and Chile with Lundin Mining, expects
to spend ~US$430 m (100% basis) in CY25 to advance project studies and mine
planning, exploration drilling and access road construction.
Today we announced the mineral resource estimate for the Josemaria and Filo
del Sol deposits, which collectively contain 38 Mt of copper, as well as
globally significant amounts of gold (81 Moz) and silver (1.5 Boz). Refer to
Appendix 1 (#_Competent_Person_Statement%3A) for more details.
Vicuña has until July 2026 to submit its Incentive Regime for Large
Investments (RIGI) application which, if approved, is expected to be
beneficial to the economics of the project.
The joint venture envisions a phased approach to the development of Vicuña.
Vicuña remains on track to complete its integrated technical report in Q1
CY26.
20
BHP | Financial results for the year ended 30 June 2025
Appendix 1
Detailed financial information is included in OFR 5 in the Annual Report
(https://www.bhp.com/AR2025_OFR5)
Financial performance summary(1)
A summary of performance for FY25 and FY24 is presented below.
Key group metrics
Year ended 30 June 2025 2024 Change
US$M US$M %
Revenue 51,262 55,658 (8%)
Profit from operations 19,464 17,537 11%
Attributable profit 9,019 7,897 14%
Basic earnings per share (cents) 177.8 155.8 14%
Dividend per ordinary share determined in respect of the period (cents) 110 146 (25%)
Net operating cash flow 18,692 20,665 (10%)
Capital and exploration expenditure 9,794 9,273 6%
Net debt 12,924 9,120 42%
Underlying EBITDA 25,978 29,016 (10%)
Underlying attributable profit 10,157 13,660 (26%)
Underlying basic earnings per ordinary share (cents) 200.2 269.5 (26%)
Key asset metrics
Year ended Revenue(2) Underlying Underlying Exceptional Net Capital Exploration Exploration
30 June 2025 EBITDA(3) EBIT(3) items(4) operating expenditure gross to profit(5)
US$M assets(3)
Copper
Escondida 13,177 8,593 7,558 14,093 2,390
Pampa Norte(6) 2,726 1,270 696 5,051 675
Antamina(7) 1,562 1,002 827 1,661 395
Copper South Australia(8) 4,655 1,936 1,247 17,337 1,205
Other(7) 127 (100) (174) 2,742 201
Total Copper from Group production 22,247 12,701 10,154 − 40,884 4,866
Third-party products 1,845 91 91 − − −
Total Copper 24,092 12,792 10,245 − 40,884 4,866 142 142
Adjustment for equity accounted investments(7) (1,562) (466) (289) − − (474) (3) (3)
Total Copper statutory result 22,530 12,326 9,956 − 40,884 4,392 139 139
Iron Ore
Western Australia Iron Ore 22,767 14,394 12,171 20,959 2,609
Samarco(9) − − − (5,522) −
Other 124 (2) (28) (185) 8
Total Iron Ore from Group production 22,891 14,392 12,143 (321) 15,252 2,617
Third-party products 28 4 4 − − −
Total Iron Ore 22,919 14,396 12,147 (321) 15,252 2,617 104 65
Adjustment for equity accounted investments − − − − − − − −
Total Iron Ore statutory result 22,919 14,396 12,147 (321) 15,252 2,617 104 65
Coal
BHP Mitsubishi Alliance 3,422 591 101 6,536 402
New South Wales Energy Coal(10) 1,773 303 193 (121) 106
Other − (173) (203) (58) 17
Total Coal from Group production 5,195 721 91 − 6,357 525
Third-party products − − − − − −
Total Coal 5,195 721 91 − 6,357 525 15 4
Adjustment for equity accounted investments(10) (149) (148) (124) − − − − −
Total Coal statutory result 5,046 573 (33) − 6,357 525 15 4
Group and unallocated items
Potash − (284) (286) 8,524 1,642 1 1
Western Australia Nickel(11) 758 (589) (589) (210) 176 28 28
Other(12) 9 (444) (955) (2,020) 46 109 109
Total Group and unallocated items 767 (1,317) (1,830) (455) 6,294 1,864 138 138
Inter-segment adjustment − − − − − − − −
Total Group 51,262 25,978 20,240 (776) 68,787 9,398 396 346
21
BHP | Financial results for the year ended 30 June 2025
Year ended Revenue(2) Underlying Underlying Exceptional Net Capital Exploration Exploration
30 June 2024 EBITDA(3) EBIT(3) items(4) operating expenditure gross to profit(5)
US$M assets(3)
Copper
Escondida 10,013 5,759 4,821 13,113 1,806
Pampa Norte(6) 2,375 896 468 4,843 721
Antamina(7) 1,478 968 746 1,498 437
Copper South Australia(8) 4,085 1,568 928 16,498 1,048
Other(7) 72 (176) (228) 416 136
Total Copper from Group production 18,023 9,015 6,735 − 36,368 4,148
Third-party products 2,021 74 74 − − −
Total Copper 20,044 9,089 6,809 − 36,368 4,148 216 215
Adjustment for equity accounted investments(7) (1,478) (525) (285) − − (437) (3) (2)
Total Copper statutory result 18,566 8,564 6,524 − 36,368 3,711 213 213
Iron Ore
Western Australia Iron Ore 27,805 18,964 16,902 20,597 2,026
Samarco(9) − − − (6,606) −
Other 122 (48) (74) (179) 7
Total Iron Ore from Group production 27,927 18,916 16,828 (3,066) 13,812 2,033
Third-party products 25 (3) (3) − − −
Total Iron Ore 27,952 18,913 16,825 (3,066) 13,812 2,033 86 41
Adjustment for equity accounted investments − − − − − − − −
Total Iron Ore statutory result 27,952 18,913 16,825 (3,066) 13,812 2,033 86 41
Coal
BHP Mitsubishi Alliance(13) 5,873 1,914 1,394 6,725 533
New South Wales Energy Coal(10) 1,945 502 408 (211) 100
Other − (27) (50) (42) 14
Total Coal from Group production 7,818 2,389 1,752 880 6,472 647
Third-party products − − − − − −
Total Coal 7,818 2,389 1,752 880 6,472 647 14 3
Adjustment for equity accounted investments(10) (152) (99) (75) − − (1) − −
Total Coal statutory result 7,666 2,290 1,677 880 6,472 646 14 3
Group and unallocated items
Potash − (255) (257) 6,138 1,090 1 1
Western Australia Nickel(11) 1,473 (302) (374) (6) 1,254 50 58
Other(12) 1 (194) (764) (1,421) 82 93 93
Total Group and unallocated items 1,474 (751) (1,395) (3,908) 4,711 2,426 144 152
Inter-segment adjustment − − − − − − − −
Total Group 55,658 29,016 23,631 (6,094) 61,363 8,816 457 409
1 Group profit before taxation comprised Underlying EBITDA of
US$25,978 m (FY24: US$29,016 m), exceptional items, depreciation, amortisation
and impairments of US$6,514 m (FY24: US$11,479 m) and net finance costs of
US$1,111 m (FY24: US$1,489 m).
2 Total revenue from energy coal sales, including BMA and NSWEC, was
US$1,652 m (FY24: US$1,873 m).
3 For more information on the reconciliation of non-IFRS financial
information to our statutory measures, reasons for usefulness and calculation
methodology, please refer OFR 13 - Non-IFRS financial information
(https://www.bhp.com/AR2025_OFR13) in the Annual Report.
4 Excludes exceptional items relating to Net finance costs US$458 m
and Income tax benefit US$96 m (FY24: Net finance costs US$506 m and Income
tax benefit US$837 m).
5 Includes US$ nil (FY24: US$10 m) of exploration expenditure
previously capitalised, written off as impaired (included in depreciation and
amortisation).
6 Includes Spence and Cerro Colorado. Cerro Colorado entered
temporary care and maintenance in December 2023.
7 Antamina, SolGold, Vicuña and Resolution (the latter three
included in Other) are equity accounted investments and their financial
information presented above reflects BHP Group's share, with the exception of
net operating assets that represents the Group's carrying value of investments
accounted for using the equity method. Group and Copper level information is
reported on a statutory basis which reflects the application of the equity
accounting method in preparing the Group financial statements - in accordance
with IFRS. Underlying EBITDA of the Group and the Copper segment, includes
D&A, net finance costs and taxation expense of US$466 m (FY24: US$525 m)
related to equity accounted investments.
8 Includes Olympic Dam, Prominent Hill and Carrapateena.
9 Samarco is an equity accounted investment. All financial impacts
following the Samarco dam failure have been reported as exceptional items in
both reporting periods and net operating assets represents predominantly the
Group's carrying value of the provision related to the Samarco dam failure.
10 Includes Newcastle Coal Infrastructure Group (NCIG) which is an
equity accounted investment and its financial information presented above,
with the exception of net operating assets, reflects BHP Group's share. Total
Coal statutory result excludes the contribution related to NCIG until future
profits exceed accumulated losses.
11 Western Australia Nickel is comprised of the Nickel West operations
and the West Musgrave project, both of which transitioned into temporary
suspension in December 2024.
12 Other includes functions, other unallocated operations including
legacy assets and consolidation adjustments. Revenue not attributable to
reportable segments comprises the sale of freight and fuel to third parties,
as well as revenues from unallocated operations. Exploration and technology
activities are recognised within relevant segments.
13 On 2 April 2024 BHP and Mitsubishi Development Pty Ltd (MDP)
completed the divestment of the Blackwater and Daunia mines (which were part
of BMA) to Whitehaven Coal. The Group's share of Revenue, Underlying EBITDA,
D&A, Underlying EBIT and Capital expenditure is included within BMA in the
comparative period.
22
BHP | Financial results for the year ended 30 June 2025
Underlying EBITDA waterfall
The following table and commentary describes the impact of the principal
factorsiii that affected Underlying EBITDA for FY25 compared with FY24:
US$M Total Group Copper Iron ore Coal Group and unallocated
Year ended 30 June 2024 29,016 8,564 18,913 2,290 (751)
Net price impact (3,705) 1,710 (4,274) (1,141) -
Change in sales prices (4,580) 1,794 (4,678) (1,696) -
Price linked costs 875 (84) 404 555 -
WAIO: Lower royalties in line with lower prices. BMA: Lower royalties in line with lower prices.
Changes in volumes 2,215 2,163 (90) 142 -
Escondida: Higher volumes due to higher concentrator feed grade of 1.02% WAIO: Increased weather impacts from Tropical Cyclone Zelia and Tropical Storm BMA: Strong performance across the open cut mines, underpinned by improved
(FY24: 0.88%), record throughput, higher recoveries and timing of sales. Sean and planned increase in tie-in activity of the Rail Technology Programme truck productivity and our focus on improving value chain stability, helped
1 (RTP1), offset by increased capacity unlocked by the Port Debottlenecking mitigate the impact of significant wet weather, and geotechnical
Spence: Higher volumes due to improved cathode stacked ore grades combined Project (PDP1) and record volumes delivered from the Central Pilbara hub characteristics of the current longwall panel at Broadmeadow.
with timing of shipments. (South Flank and Mining Area C) following the completion of the ramp up of
South Flank in FY24.
Copper SA: Higher volumes due to strong operational performance supported by
inventory drawdown, partially offset by the impact of the weather-related
power outage in Q2 FY25.
Change in controllable cash costs (953) (486) (119) (340) (8)
Operating cash costs (893) (442) (111) (338) (2)
Escondida: Primarily one-off labour related costs, combined with higher WAIO: Additional planned shutdown activity and higher costs to support higher BMA: Inventory movements to offset the impact of Broadmeadow geotechnical
operational and maintenance contractor costs to support higher material moved. productive movement partially offset by favourable inventory movements. characteristics and significant wet weather.
Spence: Finished goods inventory drawdown partially offset by one-off labour
related payments in FY24.
NSWEC: Inventory drawdown to offset the impacts of reduced truck availability
Copper SA: Finished goods inventory drawdown. and unfavourable weather conditions.
Exploration and business development (60) (44) (8) (2) (6)
Change in other costs 356 183 173 81 (81)
Exchange rates 354 98 198 98 (40)
Inflation on costs (538) (320) (92) (85) (41)
Inflation rate of 2.4% for Australia and 4.6% for Chile (FY24: 4.1% for
Australia and 4.4% for Chile)
Fuel, energy, and consumable price movements 148 60 20 68 -
Escondida, Spence and Copper SA: Primarily due to lower diesel prices WAIO: Primarily due to lower diesel prices partially offset by higher BMA & NSWEC: Primarily due to lower diesel prices.
partially offset by higher electricity prices. explosives prices.
Non-Cash 392 345 47 - -
Escondida: Higher stripping capitalisation reflecting phase of mine plan. WAIO: Primarily due to deferred stripping capitalisation.
Change in other (951) 192 (207) (459) (477)
Asset sales (40) - 3 (16) (27)
Ceased and sold operations (722) 38 - (449) (311)
BMA: Primarily the contribution of Blackwater and Daunia before sale in April WAN: Operations transitioned into temporary suspension in December 2024 as
2024 combined with a revaluation of contingent consideration due to price planned.
movements.
Other (189) 154 (210) 6 (139)
Antamina: Higher profit driven by higher copper and zinc prices. WAIO: Lower net freight recoveries due to lower freight rate. G&U: Primarily a self insurance claim related to the weather-related power
outage at Olympic Dam in HY25.
Copper SA: Self insurance claim related to the weather-related power outage at Other: Higher rehabilitation costs mainly from increase in provision for
Olympic Dam in H1FY25. contaminated sites in FY25.
Year ended 30 June 2025 25,978 12,326 14,396 573 (1,317)
23
BHP | Financial results for the year ended 30 June 2025
Exchange rates
The following exchange rates relative to the US dollar have been applied in
the financial information:
As at As at As at
Average Average 30 June 30 June 30 June
FY25 FY24 2025 2024 2023
Australian dollar(1) 0.65 0.66 0.65 0.67 0.66
Chilean peso 951 907 936 944 803
1 Displayed as US$ to A$1 based on common convention.
Capital and exploration expenditure
Capital and exploration expenditure and guidance are summarised below:
FY26e(1)
FY25 FY24
Capital and exploration expenditure US$B US$B US$B
Deferred stripping 1.1 1.1 0.8
Baseline sustaining(2) 3.2 3.6 3.5
Non-recurring sustaining 2.7 2.2 2.2
Growth 3.6 2.6 2.2
Exploration 0.3 0.4 0.5
Total ~11.0 9.8 9.3
1 Capital and exploration expenditure guidance is subject to
movements in exchange rates.
2 Baseline sustaining includes "maintenance and decarbonisation
capital" for the purposes of the Capital Allocation Framework. In FY26, this
is expected to be ~US$1.6 bn (FY25 US$1.8 bn).
Major Projects
Commodity Project and ownership Capacity Capital First Progress
expenditure
production
US$M
target date
Potash Jansen Stage 1 Design, engineering and construction of an underground potash mine and surface Currently under review. Expected range is 7,000 - 7,400 Currently under review. Approved in August 2021.
(Canada) infrastructure, with capacity to produce 4.15 Mtpa
100% Expected date may revert to original project timeline of mid-CY27 Project is 68% complete
Potash Jansen Stage 2 Development of additional mining districts, completion of the second shaft Currently under review Extended by two years to FY31 Approved in October 2023.
(Canada) hoist infrastructure, expansion of processing facilities and addition of rail
100% cars to facilitate production of an incremental 4.36 Mtpa Project is 11% complete
Production and unit cost guidance
Historical production and production guidance are summarised below:
Production Medium-term guidance(1) FY26 guidance FY25 v FY24
Copper (kt) 1,800 - 2,000 2,016.7 8%
Escondida (kt) 900 - 1,000(2) 1,150 - 1,250 1,304.9 16%
Pampa Norte (kt)(3) ~235 230 - 250 267.6 1%
Copper SA (kt) 310 - 340 315.9 (2%)
Antamina (kt) 120 - 140 118.9 (17%)
Carajás (kt) - 9.4 15%
Iron ore (Mt) 258 - 269 263.0 1%
WAIO (Mt) 251 - 262 256.6 1%
WAIO (100% basis) (Mt) >305(4) 284 - 296 290.0 1%
Samarco (Mt) 7.0 - 7.5 6.4 34%
Steelmaking coal - BMA (Mt) 21.5 - 22.5 18 - 20 18.0 (19%)
BMA (100% basis) (Mt) 43 - 45 36 - 40 36.0 (19%)
Energy coal - NSWEC (Mt) 14 - 16 15.0 (2%)
Nickel - Western Australia Nickel (kt) - 30.2 (63%)
1 Medium term refers to a five-year horizon unless otherwise noted.
2 Medium term refers to FY27 to FY31.
3 FY24 includes 11 kt from Cerro Colorado, which entered temporary
care and maintenance in December 2023. Excluding these volumes, FY25
production increased 5%. Production guidance is for Spence only. Medium-term
guidance refers to an average of ~235 ktpa over five years.
4 Sustained production of >305 Mtpa (100% basis) from Q4 FY28.
24
BHP | Financial results for the year ended 30 June 2025
Historical unit costs and guidance for our major assets are summarised below:
FY25 at
Medium-term FY26 guidance realised FY25 v
Unit cost(1) guidance(2) guidance(2) exchange rates(3) exchange rates(3) FY24(3) FY24
Escondida (US$/lb)(4) 1.50 - 1.80 1.20 - 1.50 1.27 1.19 1.45 (18%)
Spence (US$/lb) 2.05 - 2.35 2.10 - 2.40 2.18 2.07 2.13 (3%)
Copper SA (US$/lb)(5) 1.00 - 1.50 1.64 1.18 1.37 (14%)
WAIO (US$/t)(6) <17.50 18.25 - 19.75 18.93 18.56 18.19 2%
BMA (US$/t) <110 116 -128 130.31 127.50 119.54 7%
1 Refer to OFR 13 - Non-IFRS information
(https://www.bhp.com/AR2025_OFR13UC) in the Annual Report for detailed unit
cost reconciliations and definitions.
2 FY26 and medium-term unit cost guidance are based on exchange
rates of AUD/USD 0.65 and USD/CLP 940.
3 Based on exchange rates of: FY25 AUD/USD 0.66 and USD/CLP 842
(guidance); FY25 AUD/USD 0.65 and USD/CLP 951 (realised); FY24 AUD/USD 0.66
and USD/CLP 907 (realised).
4 Escondida unit costs for FY24 onwards exclude revenue based
government royalties. Medium-term refers to an average for FY27 - FY31.
5 FY26 unit cost guidance is based on prices for by-products of
gold US$2,900/oz, and uranium US$70/lb. FY25 unit cost guidance was based on
prices for by-products of gold US$2,000/oz, and uranium US$80/lb.
6 The breakdown of C1 unit costs, excluding third party royalties,
are detailed on page 13 (#_Western_Australia_Iron_4) .
Competent Person Statement: Vicuña Mineral Resources
Compiled Filo del Sol and Josemaria Projects Mineral Resources as at 30 June
2025
Measured Resources Indicated Resources Inferred Resources Total Resources Contained Metal BHP
Deposit Material Type Mt Cu Au Ag Mt Cu Au Ag Mt Cu Au Ag Mt Cu Au Ag Cu Au Ag interest (%)
% g/t g/t % g/t g/t % g/t g/t % g/t g/t kt Moz Moz
Filo del Sol Sulphide - - - - 1,190 0.54 0.39 8 6,080 0.37 0.20 3 7,270 0.40 0.23 4 50%
Copper Oxide - - - - 434 0.34 0.28 2 331 0.25 0.21 2 765 0.30 0.25 2
Gold Oxide - - - - 288 - 0.29 3 673 - 0.21 3 961 - 0.23 3
Silver Oxide - - - - 77 0.34 0.37 91 72 0.10 0.17 26 149 0.22 0.27 60
Josemaria Sulphide 654 0.33 0.25 1 992 0.25 0.14 1 736 0.22 0.11 1 2,382 0.26 0.16 1
TOTAL Vicuña 654 0.33 0.25 1 2,980 0.36 0.28 7 7,900 0.32 0.19 3 11,500 0.33 0.22 4 38,000 81 1,500
Health, safety and social value((
1 (#_ftn1)
))
Key safety indicators
Target/Goal FY25 FY24
Fatalities Zero work-related fatalities 0 1
High-potential injury (HPI) frequency(( 2 (#_ftn2) )) Year-on-year improvement in HPI frequency 0.09 0.11
Total recordable injury frequency (TRIF)(2) Year-on-year improvement in TRIF 4.5 4.8
Social value: key indicators scorecard
Target/Goal FY25 FY24
Operational GHG emissions (MtCO(2)-e)(( 3 (#_ftn3) )) Reduce operational GHG emissions by at least 30% from FY20 levels by FY30 8.7 9.2
Value chain GHG emissions (Scope 3): Steelmaking: 2030 goal to support industry to develop steel production 171 140
technology capable of 30% lower GHG emissions intensity relative to
Committed funding in steelmaking partnerships and ventures to date (US$m) conventional blast furnace steelmaking, with widespread adoption expected
post-CY30
Value chain GHG emissions: Maritime transportation: 2030 goal to support 40% GHG emissions intensity 44 42
reduction of BHP-chartered shipping of BHP products
Reduction in GHG emissions intensity of BHP-chartered shipping of our products
from CY08 (%)(( 4 (#_ftn4) ))
Social investment (US$m BHP equity share) Voluntary investment focused on the six pillars of our social value framework 127.8 136.7
Indigenous procurement spend (US$m) 5 (#_ftn5) Key metric for part of our 2030 Indigenous partnerships goal, to support the 853 609
delivery of mutually beneficial outcomes
Female representation(( 6 (#_ftn6) )) (%) Aspirational goal for gender balanced employee workforce(( 7 (#_ftn7) )) by 41.3 37.1
the end of CY25
Indigenous employee participation(6,( 8 (#_ftn8) )) (%) Australia: aim to achieve 9.7% by the end of FY27 9.0 8.3
Chile: aim to achieve 10.0% by the end of FY25 10.5 10.1
Canada: aim to achieve 20.0% by the end of FY26 17.8 11.2
Area under nature-positive management practices 9 (#_ftn9) (%) Create nature-positive(( 10 (#_ftn10) )) outcomes by having at least 30% of 1.5 1.3
the land and water we steward(( 11 (#_ftn11) )) under conservation,
restoration or regenerative practices. 12 (#_ftn12)
BHP | Financial results for the year ended 30 June 2025
This release is unaudited. The financial information for the year ended 30
June 2025 (FY25) presented in this release is derived from the audited
Consolidated Financial statements included in the 2025 Annual Report
(https://www.bhp.com/-/media/Documents/Investors/Annual-Reports/2025/250819_bhpannualreport2025)
, which has been prepared on the basis of accounting policies and methods of
computation consistent with those applied in the 30 June 2024 financial
statements of the Group in the 2024 Annual Report, with the exception of new
accounting standards and interpretations which became effective from 1 July
2024 and other changes in accounting policies applied with effect from 1 July
2024. Users are advised to read this News Release document together with the
2025 Annual Report (simultaneously released to respective stock exchanges).
U.S. investors are advised to refer to BHP's Annual Reports on Form 20-F filed
with the U.S. Securities and Exchange Commission. Analysis relates to the
relative financial and/or production performance of BHP and/or its operations
during FY25 compared with FY24, unless otherwise noted. Medium term refers to
a five-year horizon, unless otherwise noted. Numbers presented may not add up
precisely to the totals provided due to rounding.
The following abbreviations may have been used throughout this release: silver
(Ag); gold (Au); billion dollars (B/bn); billion troy ounces (Boz); billion
tonnes (Bt); cost and freight (CFR); cost, insurance and freight (CIF); carbon
dioxide equivalent (CO(2)-e); copper (Cu); dry metric tonne unit (dmtu); final
investment decision (FID); free on board (FOB); greenhouse gas (GHG); grams
per tonne (g/t); high-potential injury (HPI); kilograms per tonne (kg/t);
kilometre (km); million troy ounces (Moz); million ounces per annum (Mozpa);
million pounds (Mlb); million tonnes (Mt); million tonnes per annum (Mtpa);
ounces (oz); OZ Minerals Ltd (OZL); pounds (lb); million dollars (M); thousand
ounces (koz); thousand ounces per annum (kozpa); thousand tonnes (kt);
thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t);
total recordable injury frequency (TRIF); uranium (U); uranium oxide
(U(3)O(8)); and wet metric tonnes (wmt).
Forward-looking statements
This release contains forward-looking statements, which involve risks and
uncertainties. Forward-looking statements include all statements, other than
statements of historical or present facts, including: statements regarding
trends in commodity prices and currency exchange rates; demand for
commodities; global market conditions, reserves and resources estimates;
development and production forecasts; guidance; expectations, plans,
strategies and objectives of management; climate scenarios; approval of
projects and consummation of transactions; closure, divestment, acquisition or
integration of certain assets, ventures, operations or facilities (including
associated costs or benefits); anticipated production or construction
commencement dates; capital costs and scheduling; operating costs and
availability of materials and skilled employees; anticipated productive lives
of projects, mines and facilities; the availability, implementation and
adoption of new technologies, including artificial intelligence; provisions
and contingent liabilities; and tax, legal and other regulatory developments.
Forward-looking statements may be identified by the use of terminology,
including, but not limited to, 'aim', 'ambition', 'anticipate', 'aspiration',
'believe', 'commit', 'continue', 'could', 'desire', 'ensure', 'estimate',
'expect', 'forecast', 'goal', 'guidance', 'intend', 'likely', 'may',
'milestone', 'must', 'need', 'objective', 'outlook', 'pathways', 'plan',
'project', 'schedule', 'seek', 'should', 'strategy', 'target', 'trend',
'will', 'would', or similar words. These statements discuss future
expectations or performance, or provide other forward-looking information.
Forward-looking statements are based on management's expectations and reflect
judgements, assumptions, estimates and other information available, as at the
date of this release. These statements do not represent guarantees or
predictions of future financial or operational performance, and involve known
and unknown risks, uncertainties and other factors, many of which are beyond
our control, and which may cause actual results to differ materially from
those expressed in the statements contained in this release. BHP cautions
against reliance on any forward-looking statements.
For example, our future revenues from our assets, projects or mines described
in this release will be based, in part, on the market price of the commodities
produced, which may vary significantly from current levels or those reflected
in our reserves and resources estimates. These variations, if materially
adverse, may affect the timing or the feasibility of the development of a
particular project, the expansion of certain facilities or mines, or the
continuation of existing assets.
Other factors that may affect our future operations and performance, including
the actual construction or production commencement dates, revenues, costs or
production output and anticipated lives of assets, mines or facilities include
our ability to profitably produce and deliver the products extracted to
applicable markets; the development and use of new technologies and related
risks; the impact of economic and geopolitical factors, including foreign
currency exchange rates on the market prices of the commodities we produce and
competition in the markets in which we operate; activities of government
authorities in or impacting the countries where we sell our products and in
the countries where we are exploring or developing projects, facilities or
mines, including increases in taxes and royalties or implementation or
expansion of trade or export restrictions; changes in environmental and other
regulations; political or geopolitical uncertainty and conflicts; labour
unrest; weather, climate variability or other manifestations of climate
change; and other factors identified in the risk factors discussed in OFR 11
in the Annual Report (https://www.bhp.com/AR2025_OFR11) and BHP's filings with
the U.S. Securities and Exchange Commission (the 'SEC') (including in Annual
Reports on Form 20-F) which are available on the SEC's website at www.sec.gov
(http://www.sec.gov) .
Except as required by applicable regulations or by law, BHP does not undertake
to publicly update or review any forward-looking statements, whether as a
result of new information or future events.
Past performance cannot be relied on as a guide to future performance.
Emissions and energy consumption data
Due to the inherent uncertainty and limitations in measuring greenhouse gas
(GHG) emissions and operational energy consumption under the calculation
methodologies used in the preparation of such data, all GHG emissions and
operational energy consumption data or references to GHG emissions and
operational energy consumption volumes (including ratios or percentages) in
this release are estimates. There may also be differences in the manner that
third parties calculate or report GHG emissions or operational energy
consumption data compared to BHP, which means third-party data may not be
comparable to our data. For information on how we calculate our GHG emissions,
refer to the BHP GHG Emissions Calculation Methodology 2025, available at
bhp.com (https://www.bhp.com) .
No offer of securities
Nothing in this release should be construed as either an offer, or a
solicitation of an offer, to buy or sell BHP securities in any jurisdiction,
or be treated or relied upon as a recommendation or advice by BHP.
Reliance on third party information
The views expressed in this release contain information that has been derived
from publicly available sources that have not been independently verified. No
representation or warranty is made as to the accuracy, completeness or
reliability of the information. This release should not be relied upon as a
recommendation or forecast by BHP.
No financial or investment advice - South Africa
BHP does not provide any financial or investment 'advice' as that term is
defined in the South African Financial Advisory and Intermediary Services Act,
37 of 2002, and we strongly recommend that you seek professional advice.
BHP and its subsidiaries
In this release, the terms 'BHP', the 'Company, the 'Group', 'BHP Group', 'our
business', 'organisation', 'we', 'us', 'our' and ourselves' refer to BHP Group
Limited and, except where the context otherwise requires, our subsidiaries.
Refer to Note 28 - Subsidiaries (https://www.bhp.com/AR2025_Note28) of the
Financial Statements in the 2025 Annual Report
(https://www.bhp.com/-/media/Documents/Investors/Annual-Reports/2025/250819_bhpannualreport2025)
for a list of our significant subsidiaries. Those terms do not include
non-operated assets. Our non-operated assets include Antamina, Samarco and
Vicuña.
This release covers BHP's functions and assets (including those under
exploration, projects in development or execution phases, sites and operations
that are closed or in the closure phase) that have been wholly owned and
operated by BHP or that have been owned as a BHP-operated joint venture(1)
(referred to in this release as 'operated assets' or 'operations') during the
period from 1 July 2024 to 30 June 2025 unless otherwise stated. Certain
sections of this release include data in relation to the Daunia and Blackwater
mines, which were divested in FY24. Data in relation to the Daunia and
Blackwater mines is shown for the period up to completion on 2 April 2024,
unless stated otherwise.
BHP also holds interests in assets that are owned as a joint venture but not
operated by BHP (referred to in this release as 'non-operated joint ventures'
or 'non-operated assets'). Notwithstanding that this release may include
production, financial and other information from non-operated assets,
non-operated assets are not included in the BHP Group and, as a result,
statements regarding our operations, assets and values apply only to our
operated assets unless stated otherwise.
1 References in this release to a 'joint venture' are used for
convenience to collectively describe assets that are not wholly owned by BHP.
Such references are not intended to characterise the legal relationship
between the owners of the asset.
The following footnotes apply to this Results Announcement:
26
BHP | Financial results for the year ended 30 June 2025
1 (#_ftnref1) Data includes former OZL (except former OZL Brazil
assets), except where specified otherwise.
2 (#_ftnref2) Combined employee and contractor frequency per 1
million hours worked. FY24 data for HPIF and TRIF restated due to ongoing
verification activities resulting in updated recordable injury and exposure
hour data to exclude the Blackwater and Daunia mines divested by BMA
(completed on 2 April 2024) and to add two HPIs due to re-classification.
3 (#_ftnref3) Our operational GHG emissions are the Scopes 1 and
2 emissions from our operated assets. FY24 and FY25 GHG emissions data has
been adjusted for acquisitions, divestments and methodology changes. This
provides the data most relevant to assessing progress against our operational
GHG emissions medium-term target and differs from annual total operational GHG
emissions inventory (unadjusted for acquisitions, divestments and methodology
changes).
4 (#_ftnref4) Baseline year data and performance data have been
adjusted to only include voyages associated with the transportation of
commodities currently in BHP's portfolio due to the data availability
challenges of adjusting by asset or operation for CY08 and subsequent year
data. GHG emissions intensity calculations currently include the
transportation of copper, iron ore, steelmaking coal, energy coal, molybdenum,
uranium and nickel.
5 (#_ftnref5) Includes former OZL (except former OZL Brazil
assets) for FY25 only.
6 (#_ftnref6) Based on a 'point in time' snapshot of employees
as at the end of the relevant reporting period.
7 (#_ftnref7) We define gender balance as a minimum 40% women
and 40% men in line with the definitions used by entities such as the
International Labour Organization.
8 (#_ftnref8) Indigenous employee participation for Australia is
at Minerals Australia operations; for Chile is at Minerals Americas operations
in Chile; and for Canada is at the Jansen Potash project and operations in
Canada.
9 (#_ftnref9) Area under stewardship that has a formal
management plan that includes conservation, restoration or regenerative
practices. FY24 data restated primarily due to identification of additional
former OZL land holdings and areas where we hold sub-surface mineral rights.
For more information refer to the BHP ESG Standards and Databook 2025,
available at bhp.com/sustainability.
10 (#_ftnref10) Nature-positive is defined by the TNFD Glossary
version 1.0 as 'A high-level goal and concept describing a future state of
nature (e.g. biodiversity, ecosystem services and natural capital) which is
greater than the current state'. We understand it to include land and water
management practices that halt and reverse nature loss - that is, supporting
healthy, functioning ecosystems. We are monitoring the evolving external
nature landscape, including developments in nature frameworks, standards and
methodologies and in definition of the global nature ambition.
11 (#_ftnref11) Excluding areas we hold under greenfield
exploration licences (or equivalent tenements), which are outside the area of
influence of our existing mine operations. 30% will be calculated based on the
areas of land and water that we steward at the end of FY30. For more
information refer to the BHP ESG Standards and Databook 2025 available at
bhp.com/sustainability.
12 (#_ftnref12) In doing so we focus on areas of highest ecosystem
value both within and outside our own operational footprint, in partnership
with Indigenous peoples and local communities.
25
i (#_ednref1) Combined employee and contractor frequency
per 1 million hours worked. Prior year data (FY20 to FY23) excludes former OZL
Australian assets (acquired 2 May 2023), which is included for FY24 and FY25.
Prior year data (FY20 to FY24) also excludes (entirely) divested operations as
follows: BHP Mitsui Coal (divested on 3 May 2022), BHP's oil and gas portfolio
(merger with Woodside completed on 1 June 2022) and BMA's Daunia and
Blackwater mines (divested on 2 April 2024). Excludes former OZL Brazil assets
entirely.
ii (#_ednref2) BHP internal analysis based on WAIO C1
reported unit costs compared to publicly available unit costs reported by
major competitors (including Fortescue, Rio Tinto and Vale), adjusted based on
publicly available financial information.
iii (#_ednref3) We use various non-IFRS financial information
to reflect our underlying financial performance. Non-IFRS financial
information (as outlined in ASIC Regulatory Guide 230) is not defined or
specified under the requirements of IFRS, but is derived from the Group's
Consolidated Financial Statements prepared in accordance with IFRS. Non-IFRS
financial information includes some of the following items (for a complete
list of Non-IFRS financial information and their respective definitions and
calculation methodology, please refer to OFR 13 in the Annual Report
(https://www.bhp.com/AR2025_OFR13) ): Underlying attributable profit,
Underlying EBIT, Underlying EBITDA, Underlying EBITDA margin, capital and
exploration expenditure, adjusted effective tax rate, ROCE, Underlying return
on capital employed, unit costs, free cash flow, net debt, gearing ratio, and
Underlying earnings per share. Non-IFRS financial information and relevant
reconciliations are included in the Annual Report document for the year ended
30 June 2025 and comparative periods. Non-IFRS financial information is
unaudited.
iv (#_ednref4) Our operational GHG emissions are the Scopes 1
and 2 emissions from our operated assets (excluding former OZL Brazil assets).
FY20 to FY25 GHG emissions data has been adjusted for acquisitions,
divestments and methodology changes. This provides the data most relevant to
assessing progress against our operational GHG emissions medium-term target
and differs from annual total operational GHG emissions inventory (unadjusted
for acquisitions, divestments and methodology changes).
v (#_ednref5) Based on a 'point in time' snapshot of employees
as at 30 June 2025, including employees on extended absence, as used in
internal management reporting for the purposes of monitoring progress against
our goals. Excludes former OZL Brazil assets. We define gender balance as a
minimum 40% women and 40% men in line with the definitions used by entities
such as the International Labour Organization. 'Women in leadership' refers to
employees with one or more direct reports.
vi (#_ednref6) Area under stewardship that has a formal
management plan that includes conservation, restoration or regenerative
practices. For more information refer to the BHP ESG Standards and Databook
2025 available at bhp.com/sustainability
vii (#_ednref7) Includes former OZL (except former OZL Brazil
assets) for FY25 only.
viii (#_ednref8) For more information refer to the BHP Economic
Contribution Report 2025
(https://www.bhp.com/-/media/Documents/Investors/Annual-Reports/2025/250819_bhpeconomiccontributionreport2025)
.
ix (#_ednref9) Production increased 5%, excluding
production from the now divested Blackwater and Daunia mines.
x (#_ednref10) Calculated on a copper equivalent production
weighted average basis, based on FY25 average realised prices for major assets
(Escondida, Spence, Copper SA, WAIO and BMA).
xi (#_ednref11) On a total operations basis.
xii (#_ednref12) Capital and exploration expenditure guidance is
subject to movements in exchange rates.
xiii (#_ednref13) Credit ratings are forward-looking opinions on
credit risk. Moody's and Fitch's credit ratings express the opinion of each
agency on the ability and willingness of BHP to meet its financial obligations
in full and on time. A credit rating is not a recommendation to buy, sell or
hold securities and may be subject to suspension, reduction or withdrawal at
any time by an assigning rating agency. Any credit rating should be evaluated
independently of any other information.
xiv (#_ednref14) The information in this section is based on BHP
data, analysis and desktop research on public data sources.
xv (#_ednref15) 8% increase in copper production from FY24
(1,865 kt) to FY25 (2,017 kt). 28% increase in copper production from FY22
(1,574 kt) to FY25 (2,017 kt).
xvi (#_ednref16) Represents our current aspiration for BHP group
attributable copper production, and not intended to be a projection, forecast
or production target. Includes potential increases in production rates, as
well as potential from non-operated joint ventures as well as exploration
programs. The pathway is subject to the completion of technical studies to
support Mineral Resource and Ore Reserves estimates, capital allocation,
regulatory approvals, market capacity, and, in certain cases, the development
of exploration assets, in which factors are uncertain.
xvii (#_ednref17) The pathway to increase potential
production at Copper South Australia is subject to regulatory approvals,
market capacity and, in certain cases, the development of exploration assets,
which factors are uncertain. The pathway represents our current aspiration for
Copper South Australia, and is not intended to be a projection, forecast or
production target. Copper equivalent production includes potential increases
in production rates and contribution from by-products, as well as potential
impacts from our exploration program. Copper equivalent production is
calculated using 2025 long term (real) consensus prices as of June 2025 of
US$4.28/lb for copper, US$2,408/oz for gold, US$28/oz for silver and US$73/lb
for uranium.
xviii (#_ednref18) Based on CY24 production.
xix (#_ednref19) Calculation based on long term consensus copper
price of $4.50/lb.
xx (#_ednref20) Estimated capital expenditure is BHP equity
share.
xxi (#_ednref21) Returns and payback period calculated using
consensus iron ore prices as of June 2025 for FY26-FY30, and long-term.
xxii (#_ednref22) Subject to movements in exchange rates; +/- 50%
in any given year over the medium term.
xxiii (#_ednref23) Amounts shown are those incurred by Samarco on
a 100% basis, which includes cash outflows as well as accruals relevant to the
period from when the agreement was signed on 25 October 2024 to the end of
FY25 on 30 June 2025. A portion of these payments were funded by cash
generated from the Samarco operations.
xxiv (#_ednref24) Claims paid under the Definitive
Indemnification Program (PID) to 31 July 2025.
xxv (#_ednref25) Source: Wood Mackenzie H1 2025 report.
27
BHP | Financial results for the year ended 30 June 2025
Authorised for lodgement by:
The Board of BHP Group Limited
Contacts
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