Strong cash generation, with majority of earnings from copper, increase returns and investment in growth
“A contracting colleague was fatally injured at BMA last month. It was a tragic event, and while investigations continue, his loss sharpens our focus on safety above all, and on the controls that protect our employees and contractors every day. We will learn from this event to further improve safety.
FY26 was a strong year for BHP. We delivered record iron ore production and shipments at WAIO, ~2 Mt of copper for a second year running and a stronger result in coal. We met or beat guidance across much of the portfolio and achieved industry-leading cost positions.
This reliability, together with strong prices, drove a big lift in earnings with Underlying EBITDA increasing to ~US$33 bn. As a result of this, alongside unlocking of capital from undervalued assets and investing in growth, net debt fell to below US$9 bn, while returning substantial cash to shareholders through a final dividend of 99 US cents per share, the largest in four years.
Copper is the engine that is driving BHP’s growth. For the first time, Copper contributed more than half our Underlying EBITDA and generated significant free cash flow, which means our copper growth is self-funding. We have a well-defined project pipeline across Chile, Australia and Argentina that can potentially lift copper production by around 40% by FY35. At Escondida, we approved US$0.5 bn in pre-commitment funding for a new concentrator ahead of a final investment decision in CY27-28. In Australia, we continue to advance our copper growth plans, building on record operational and financial performance at Copper SA. We are also growing through partnerships, from Resolution in Arizona to Vicuña on the Argentina-Chile border, while maintaining exposure to future opportunities through our investment in Faraday Copper and an MOU with Sierra Gorda SCM.
In iron ore, we announced plans for Ministers North, a new mine in the Pilbara. The project will help sustain WAIO production above 305 Mtpa and further strengthen one of the most competitive businesses in the global mining industry.
Beyond copper and iron ore, Stage 1 of our Jansen potash project in Canada is 84% complete and on track for first production in mid-CY27. Jansen is expected to operate for more than 60 years and establishes BHP in a new commodity that is essential to food security.
Demand for what we mine is building. Copper demand alone is set to grow from about 34 Mtpa today to more than 50 Mtpa by 2050. We expect China to continue producing ~1 Btpa of steel this decade while it also invests heavily in its power grid, the United States is investing in copper-intensive technology, and India is importing more of the raw materials it needs as the fastest growing major economy.
Our commitments to social value and partnerships with customers and communities make a positive difference. Our operational emissions are down about a third since FY20 and we remain on track for our FY30 target, we spent a record amount with Indigenous businesses in FY26 and are the only global listed miner to have achieved a gender balance across our workforce.
BHP is well set for what comes next. We have significant opportunity to further lift performance across our assets and a clear pathway for growth. We are committed to keeping people safe, delivering our projects and generating strong returns for shareholders.”
Brandon Craig, BHP Chief Executive Officer