Company Overview

BHP Group Limited is a prominent global resources company with extensive operations across Australia, Europe, China, Japan, India, South Korea, other parts of Asia, North America, South America, and internationally. Founded in 1851, BHP Group Limited is headquartered in Melbourne, Australia. As of recent data, the company boasts a market capitalization of $203.28 billion USD, having seen a slight increase of 0.10% in the past week.

BHP stands as one of the world's largest and most diversified natural resources companies, maintaining its position as a global leader in the mining and extraction of essential commodities. The company employs approximately 62,000 people, with the majority concentrated in the Americas and Australia.

Business Segments and Operations

The company's operations are structured primarily around its Copper, Iron Ore, and Coal segments. Beyond these core areas, BHP engages in the mining of a broad spectrum of minerals and resources, including copper, uranium, gold, zinc, lead, molybdenum, silver, cobalt, and both metallurgical and energy coal. Furthermore, BHP is involved in the mining, smelting, and refining of nickel, alongside active development in potash.

Key Commodities:

- Iron Ore: Recognized as the world's lowest-cost major producer.

- Copper: Achieved record production levels, demonstrating strong operational output.

- Coal: Engaged in both metallurgical and energy coal operations.

- Potash: Ongoing development activities are underway to expand this segment.

- Precious Metals: Includes gold, silver, and other valuable metals extracted from its operations.

Financial Performance and Market Position

Full Year 2025 Results (ended 30 June 2025)

FY2025 proved to be another robust year for BHP, characterized by record production volumes, sustained sector-leading profit margins, and disciplined capital allocation. Navigating a landscape of global uncertainty, this strong performance has yielded substantial financial outcomes, underscoring the inherent resilience of BHP's business model and strategic approach.

#### Key Financial Highlights:

- Achieved an underlying EBITDA of US$26 billion, with a margin of 53%.

- Generated net operating cash flow totaling US$18.7 billion for the year.

- Underlying attributable profit stood at US$10.2 billion, after accounting for an adjusted effective tax rate, including royalties, of 44.6%.

- Demonstrated a strong return on capital employed (ROCE) of 20.6%.

- The Board declared a final dividend of 60 US cents per share, bringing the total dividends for the year to 110 US cents per share, amounting to US$5.6 billion.

H1 2025 Performance (ended 31 December 2024)

In the first half of FY2025, the company reported an underlying EBITDA of $12.4 billion with a healthy margin of 51%, maintaining its industry-leading performance. An interim dividend of USD 0.50 per share was declared.

#### Operational Achievements (H1 FY2025):

- Production Growth: Experienced an increase of over 5% in major commodities production, excluding any divestments or suspensions.

- Unit Cost Reduction: Achieved a reduction of close to 4% in unit costs across major operational assets.

- Copper Production: Grew by 10% during this half, contributing to a significant 24% growth over a three-year period. Substantial progress was made in copper and potash projects.

Production Records and Operational Excellence

Record Production Achievements FY2025:

- BHP successfully met its full-year production guidance across all its operational assets and set new records in both copper and iron ore production.

- Copper production surpassed 2 million tonnes for the first time, marking a 28% increase over the preceding three years.

- At the Western Australia Iron Ore (WAIO) operations, the company maintained its status as the world's lowest-cost major iron ore producer, delivering 290 million tonnes, a new annual production record.

- Specific site achievements include:

- 2 million tonnes of annual copper production.

- Highest copper production in 17 years at Escondida.

- A record year at Spence.

- Record Q4 production at Copper South Australia.

Cost Management:

- Escondida achieved an 18% reduction in unit costs.

- WAIO continues to be the lowest-cost major iron ore producer globally.

- Across the group, unit costs at major assets saw a year-on-year decrease of 4.7%.

Capital Investment and Growth Strategy

In FY2025, BHP allocated US$9.8 billion towards capital and exploration expenditure. The company maintains a robust growth pipeline, with a strategic focus on future-facing commodities, particularly emphasizing copper and potash development projects.

Financial Position:

- With a net debt of US$12.9 billion, BHP's balance sheet remains strong.

- The inherent resilience of its diversified portfolio, coupled with a consistent track record of stable operations and robust financial performance, has led to an improved debt servicing capacity.

- Consequently, the company is revising its net debt target range to US$10 billion to US$20 billion, from the previous range of US$5 billion to US$15 billion.

Market Position and Future Outlook

BHP commands a leadership position across several key global commodity markets. While growth is anticipated to moderate to around 3% or slightly below in the near term due to evolving trade policies, the underlying demand for commodities remains strong, particularly in major markets like China and India. Chinese copper demand exceeded expectations in FY2025, and iron ore demand demonstrated resilience, buoyed by significant infrastructure investment and manufacturing activities in China.

Long-term Fundamentals:

BHP remains confident in the enduring long-term fundamentals of steelmaking materials, copper, and fertilizers. These commodities are critically important to global economic growth, ongoing urbanization trends, and the accelerating global energy transition.

Sustainability and Environmental Commitment

BHP is committed to reducing its environmental footprint and supporting the global energy transition through the production of critical minerals.

- A 5% reduction in operational GHG emissions (Scopes 1 and 2 from operated assets) was targeted from FY2024.

BHP's diversified portfolio, unwavering commitment to operational excellence, and strong financial standing solidify its position as a cornerstone investment within the global resources sector. The company is exceptionally well-positioned to capitalize on the sustained long-term demand for commodities and the global transition towards cleaner energy.