BHP Group (BHP) – All aboard the Copper train
BHP released a solid quarterly yesterday, on a day where miners were already enjoying positive sentiment after the absence of tariffs imposed on China following the start of Donald Trump’s presidency. The result highlights a continued shift in focus by BHP to copper – a theme we have written about extensively.
- Copper production of 510,000 tons, +17% y/y
- Iron ore production of 66.2mt, +0.7% y/y
- FY25 production guidance at all assets remain unchanged except Copper SA, impacted by weather
Higher copper production coupled with higher copper prices is a win-win for BHP. We foresee this continuing in 2025 and beyond given the significant demand stemming from global electrification.
We’ll need to wait and see if the ‘all bark no bite’ from Trump toward China continues – if so, the demand impact on commodities will be far less severe than first thought, and we should see BHP move higher.
MM is long and bullish BHP
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