18 July 2025

BHP Group Limited

Operational review for the year ended 30 June 2025

Record copper and iron ore production drives strong 2025 performance

"BHP delivered record iron ore and copper production, which demonstrates the strength and resilience of our business and underpins our ability to deliver growth and returns to shareholders amid global volatility and uncertainty.

BHP's WA iron ore operations set multiple records, including for full year production. South Flank exceeded name plate capacity production in its first full year of operation after being delivered on time and on budget in FY24. The efficiency of our infrastructure hubs continues to strengthen performance with rail, port and technology investments delivering tangible production outcomes. Our steelmaking coal business increased production by 5% with improved truck productivity offsetting heavy wet weather and geotechnical challenges at Broadmeadow.

BHP produced more than 2 million tonnes of copper across the group - a record level of production in a commodity critical to urbanisation, digitisation and electrification. In Chile, Escondida achieved its highest production in 17 years, and Spence delivered record production. In Australia, Copper SA finished the year strongly with copper production records in June and for the final three months of the year.

In Canada, Jansen Stage 1 continues to progress. Today, we are providing an update on the cost and schedule estimates for Stage 1. We estimate capital expenditure to be in the range of US$7.0 bn to US$7.4 bn (including contingencies), versus our original estimate of US$5.7 bn, and first production to revert to the original schedule of mid-CY27. Our Group capex guidance remains ~US$11 bn for each of FY26 and FY27.

Commodity demand globally has remained resilient so far in 2025. That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector. Copper and steel demand have benefited from a sharp acceleration in renewable energy investment, electricity grid build out, strong machinery exports and EV sales. While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact. Going forward, China's 15^th 5-year plan is likely to provide more visibility on policies to sustain longer term growth and development."

Mike Henry, BHP Chief Executive Officer

Summary

Operational excellence				Guidance
Record iron ore and copper production				Production achieved and unit costs on track
BHP delivered record group copper production of >2.0 Mt, up 8%, driven by strong performances across all operated copper assets, including a 16% production increase at Escondida, record production at Spence and record quarterly (Q4) production from Copper SA. We also delivered record iron ore production, with WAIO producing 290 Mt (100% basis), overcoming the impacts of Tropical Cyclone Zelia and Tropical Storm Sean in Q3. The ramp up of the second concentrator at Samarco ahead of schedule, also contributed to our record iron ore production.				We exceeded the top end of our production guidance ranges at Escondida and NSWEC, while Spence, WAIO and BMA were all in the upper half of their production guidance ranges, and Copper SA achieved the mid-point of its revised production guidance (and was within its original guidance). We remain on track to achieve FY25 unit cost guidance at Escondida, Spence, Copper SA and WAIO, and revised guidance at BMA. After delivering 28% copper production growth between FY22 and FY25, guidance for FY26 is between 1.8 to 2.0 Mt.
Portfolio				Social value
Jansen project update				Agreements to reduce value chain emissions
The Jansen Stage 1 (JS1) potash project is 68% complete. We estimate capex for JS1 to be in the range of US$7.0 bn - US$7.4 bn, and first production to revert to the original schedule of mid-CY27. We are also considering the extension of first production from Jansen Stage 2 (JS2) to FY31 as part of our regular review of capex sequencing under the Capital Allocation Framework and given potential for additional potash supply coming to market in the medium-term. Group capital expenditure for FY26 and FY27 will remain at ~US$11 bn.				BHP has signed contracts with COSCO Shipping for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers, capable of reducing GHG emissions by 50% to 95% on a per voyage basisi. Copper SA has partnered with Aurizon to deliver a major logistics solution that will significantly reduce emissions in South Australia. BHP and China Baowu celebrated successful commercial-scale DRI trials using BHP's Pilbara iron ores to support potential pathway for steelmaking decarbonisation.
Production	Quarter performance				Full year performance		Guidance
	Q4 FY25	v Q3 FY25	v Q4 FY24		FY25	v FY24	FY25e	FY26e
Copper (kt)	516.2	1%	2%		2,016.7	8%	1,845 - 2,045	1,800 - 2,000
Escondida (kt)	327.3	(2%)	6%		1,304.9	16%	1,180 - 1,300	1,150 - 1,250
Pampa Norte (kt)ii	73.4	8%	11%		267.6	1%	240 - 270ii	230 - 250ii
Copper South Australia (kt)	92.1	16%	3%		315.9	(2%)	300 - 325	310 - 340
Antamina (kt)	21.2	(31%)	(45%)		118.9	(17%)	115 - 135	120 - 140
Carajás (kt)	2.2	18%	8%		9.4	15%	-	-
Iron ore (Mt)	70.3	14%	2%		263.0	1%	255 - 265.5	258 - 269
WAIO (Mt)	68.3	14%	0%		256.6	1%	250 - 260	251 - 262
WAIO (100% basis) (Mt)	77.5	14%	1%		290.0	1%	282 - 294	284 - 296
Samarco (Mt)	2.0	22%	91%		6.4	34%	5 - 5.5	7.0 - 7.5
Steelmaking coal - BMA (Mt)iii	5.1	31%	5%		18.0	(19%)	16.5 - 19	18 - 20
BMA (100% basis) (Mt)iii	10.3	31%	5%		36.0	(19%)	33 - 38	36 - 40
Energy coal - NSWEC (Mt)	4.1	13%	8%		15.0	(2%)	13 - 15	14 - 16
Nickel - Western Australia Nickel (kt)iv	0.3	(87%)	(99%)		30.2	(63%)	-	-

Note: Refer to page 7 for footnotes.

 

 

 

 

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BHP | Operational review for the year ended 30 June 2025

Summary of disclosures

BHP expects its financial results for the second half of FY25 (H2 FY25) to reflect certain items summarised in the table below. The table does not provide a comprehensive list of all items impacting the period. The financial statements are the subject of ongoing work that will not be finalised until the release of the financial results on 19 August 2025. Accordingly, the information in the table below contains preliminary information that is subject to update and finalisation.

Description	H2 FY25 impacti (US$M)	Classificationii
Unit costs (at guidance FX)
Unit costs for FY25 are expected to be at the bottom end of the guidance range at Escondida, within the guidance range at Spence and the revised guidance range at BMA, and in the upper half of the guidance ranges at Copper SA and WAIO	-	Operating costs
Note: Average realised exchange rates for FY25 of AUD/USD 0.65 (guidance rate AUD/USD 0.66) and USD/CLP 951 (guidance rate USD/CLP 842)	-
Income statement
Negative EBITDA for WA Nickel	250 - 300	↓ EBITDA
Increase in closure and rehabilitation provision for closed sites (predominantly in Group and Unallocated)	~100	↑ Operating costs
The Group's adjusted effective tax rate for FY25 is expected to be towards the top end of the guidance range of 33 - 38%	-	Taxation expense
Cash flow statement
Working capital movements	600 - 700	↑ Operating cash flow
Net cash tax paid	3,800 - 3,900	↓ Operating cash flow
Dividends received from equity-accounted investments	~150	↑ Operating cash flow
Capital and exploration spend is expected to be broadly in line with full year guidance of ~US$10 bn	~4,600	↓ Investing cash flow
Proceeds received from the sale of BHP's 50% interest in the Blackwater and Daunia minesiii	~250	↑ Investing cash flow
Impact of BHP Brasil's obligations relating to the Samarco dam failure	~1,100	↓ Investing cash flow
Payment for the completion of the Vicuña transaction	~2,000	↓ Investing cash flow
Dividends paid to non-controlling interests	~800	↓ Financing cash flow
Payment of the H1 FY25 dividend	~2,500	↓ Financing cash flow
Balance sheet
The Group's net debt balance as at 30 June 2025 is expected to be ~US$13 bn	-	Net debt
Exceptional items
Financial impact of the Samarco dam failure	Refer footnoteiv	Exceptional item

i        Numbers are not tax effected, unless otherwise noted.

ii       There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant, unless otherwise noted.

iii     For detail on future payments in relation to the divestment please refer to: BHP completes the divestment of Daunia and Blackwater.

iv      Financial impact is the subject of ongoing work and is not yet finalised. See iron ore section for further information on Samarco operations.

 

Further information in Appendix 1 Detailed production and sales information for all operations in Appendix 2

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BHP | Operational review for the year ended 30 June 2025

 

Segment and asset performance | FY25 v FY24

Copper

Production 2,017 kt Up 8% FY24 1,865 kt FY26e 1,800 - 2,000 kt   Average realised price US$4.25/lb Up 7% FY24 US$3.98/lb

Total copper production increased for a third consecutive year, a 28% increase from FY22, to a record 2,017 kt. Copper production for FY26 is expected to be between 1,800 and 2,000 kt reflecting planned lower grade in Chile. Escondida 1,305 kt Up 16% (100% basis) Escondida achieved its highest production in 17 years, increasing 16% due to record concentrator throughput, improved recoveries, higher concentrator feed grade of 1.02% (FY24: 0.88%) and the Full SaL leaching project which achieved first production in Q4 FY25. Production for FY26 is expected to be between 1,150 and 1,250 kt. Concentrator feed grade for FY26 is expected to be approximately 0.85%. Pampa Norte 268 kt Up 1% Pampa Norte consists of Spence and Cerro Colorado. Spence production increased 5% to a record 268 kt due to improved stacked feed grade. Concentrator throughput, feed grade and recovery was broadly in line with the prior period. Production at Spence for FY26 is expected to be between 230 and 250 kt due to expected lower concentrator feed grades and increased volume of transitional ore processed. Cerro Colorado remains in temporary care and maintenance, having contributed 11 kt of copper production in FY24. Copper South Australia 316 kt Down 2% Strong underlying performance continued in Q4, with record quarterly copper production achieved. Full year production declined marginally due to the significant two-week weather-related power outage in Q2. Copper South Australia performed strongly across all three operations following the outage, delivering an 18% uplift in copper production in H2. The smelter and refinery demonstrated continued operating stability and performance improvement, achieving record half-year copper production at Olympic Dam (under BHP ownership) and record full year concentrate smelted. Carrapateena achieved higher productivity from the sub-level cave, resulting in strong annual copper production and record gold production. Production for FY26 is expected to increase to between 310 and 340 kt, weighted to the second half. Other copper At Antamina, copper production decreased 17% to 119 kt reflecting lower concentrator throughput and a decline in feed grade. Zinc production was 5% higher at 109 kt, as a result of higher zinc feed grade. For FY26, at Antamina, copper production is expected to increase to between 120 and 140 kt and zinc production is expected to be between 90 and 110 kt. Carajás produced 9.4 kt of copper and 7.3 troy koz of gold.

 

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BHP | Operational review for the year ended 30 June 2025

Iron ore

Production 263 Mt Up 1% FY24 260 Mt FY26e 258 - 269 Mt   Average realised price US$82.13/wmt Down 19% FY24 US$101.04/wmt

Iron ore production increased to a record 263 Mt. Production for FY26 is expected to increase to between 258 and 269 Mt. WAIO 257 Mt Up 1% | 290 Mt (100% basis) WAIO delivered another full year production record of 257 Mt (290 Mt on a 100% basis) and record shipments. This strong performance reflects supply chain excellence with record productive movement, in addition to improved rail cycle times, and enhanced car dumper and ship loader performance unlocked by the Port Debottlenecking Project 1 (PDP1). South Flank exceeded nameplate capacity of 80 Mt (100% basis) in its first year following ramp up, contributing to record Ore for Rail (OFR) volumes from the Central Pilbara hub (South Flank and Mining Area C). The record production was delivered despite the impact of Tropical Cyclone Zelia and Tropical Storm Sean in Q3, and the planned increase in tie-in activity of the multi-year Rail Technology Programme (RTP1). Production for FY26 is expected to be between 251 and 262 Mt (284 and 296 Mt on a 100% basis), incorporating the planned rebuild of Car Dumper 3 in HY26 and the ongoing tie-in activities for RTP1.  Samarco 6.4 Mt Up 34% | 12.8 Mt (100% basis) Production increased following the ramp up of the second concentrator. FY26 production is expected to increase to between 7.0 and 7.5 Mt with the second concentrator now online, somewhat offset by planned maintenance expected during the financial year. Since the October 2024 Agreement with the Public Authorities, Samarco has incurred R$10.3 bnv on performance obligations ('Obligations to Perform'), including approximately R$5.5 bnv paid directly to people impacted by the 2015 Fundão dam failure. Another R$10.9 bnv has been paid to Public Authorities ('Obligations to Pay') in the same period.

Coal

Steelmaking coal

Production 18.0 Mt Down 19% FY24 22.3 Mt FY26e 18 - 20 Mt   Average realised price US$193.82/t Down 27% FY24 US$266.06/t

BMA 18 Mt Down 19% | 36 Mt (100% basis) Production increased 5% (excluding the contribution of Blackwater and Daunia in FY24), and raw coal inventory levels increased 12%. The strong performance was underpinned by improved truck productivity and led to increased production across all open cut mines. Our focus on rebuilding raw coal inventory enabled us to stabilise operating performance across the asset and increase production despite the geotechnical challenges at Broadmeadow and a 36% year-on-year increase in rainfallvi. Production guidance for FY26 is expected to increase to between 18 and 20 Mt (36 and 40 Mt on a 100% basis), weighted to the second half. We expect the inventory rebuild to continue into CY27.

Energy coal

Production 15.0 Mt Down 2% FY24 15.4 Mt FY26e 14 - 16 Mt   Average realised price US$107.80/t Down 11% FY24 US$121.52/t

NSWEC 15 Mt Down 2% NSWEC exceeded the top end of production guidance again in FY25. Production decreased slightly due to increased wet weather impacting truck productivity, as well as a higher proportion of washed coal and reduced truck availability in Q1. This was partially offset by a draw down of inventory. Production for FY26 is expected to be between 14 and 16 Mt. In April 2025, we received approval from the NSW government to extend mining to 30 June 2030. We also entered into an agreement with renewable energy and infrastructure company ACCIONA Energía to explore the development of a pumped hydro energy storage project, located in part of the Mt Arthur Coal operation.

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BHP | Operational review for the year ended 30 June 2025

Group & Unallocated

Nickel

Production 30 kt Down 63% FY24 82 kt

Western Australia Nickel 30 kt Down 63% Western Australia Nickel (WAN) transitioned into temporary suspension in HY25. As previously announced, BHP intends to review the decision to temporarily suspend WAN by February 2027. As part of this review, BHP is assessing the potential divestment of the WAN assets. Any decision to divest will be subject to an assessment against other options, including continuing temporary suspension, restart or closure. During the review process, BHP is committed to: ·      support the workforce with a people first approach; ·      ensure the ongoing safety and integrity of the mines and related infrastructure; ·      work closely with Traditional Owners, governments and suppliers, and to invest in local communities via the A$20 m Community Fund established in 2024; and ·      invest in exploration to extend the resource life of WAN and preserve optionality.

Quarterly performance | Q4 FY25 v Q3 FY25

Copper		Iron ore
516 kt Up 1% Q3 FY25 513 kt	Copper SA achieved record copper production in Q4. Spence production also increased driven by higher concentrator feed grade. Escondida cathode production increased as Full SaL ramped up, offset by lower concentrate feed grade.	70 Mt Up 14% Q3 FY25 62 Mt	Record quarterly production at WAIO underpinned by strong supply chain performance with record productive movement, following significant weather impacts in Q3. Samarco production continued to increase as the ramp up of the second concentrator was completed.
Steelmaking coal		Energy coal
5.1 Mt Up 31% Q3 FY25 3.9 Mt	Higher production, including improved mining rates at Broadmeadow despite ongoing geotechnical challenges, and increased stripping and inventory build following significant weather in Q3.	4.1 Mt Up 13% Q3 FY25 3.6 Mt	Higher production due to improved wash plant performance, including record feed volumes and increased yield, as well as inventory draw down. This was partially offset by significant wet weather.
Nickel
0.3 kt Down 87% Q3 FY25 2.3 kt	Additional saleable production recovered from inventory during temporary suspension.

 

 

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BHP | Operational review for the year ended 30 June 2025

Major projects

Commodity	Project and ownership	Capacity	Capital expenditure US$M	First production target date	Progress
Potash	Jansen Stage 1 (Canada) 100%	Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.15 Mtpa.	Currently under review. Expected range is 7,000 - 7,400	Currently under review. Expected date may revert to original project timeline of mid-CY27	Approved in August 2021. Project is 68% complete1
Potash	Jansen Stage 2 (Canada) 100%	Development of additional mining districts, completion of the second shaft hoist infrastructure, expansion of processing facilities and addition of rail cars to facilitate production of an incremental 4.36 Mtpa.	Currently under review	Currently under review. Expected date may extend by two years to FY31	Approved in October 2023. Project is 11% complete

1       Jansen Stage 1 completion percentage has been re-baselined since our Q3 FY25 Operational Review.

 

We continue to make progress at Jansen with JS1 now 68% complete. We estimate capital expenditure for JS1 to increase from US$5.7 bn to be in the range of US$7.0 bn to US$7.4 bn (including contingencies) and first production to revert to the original schedule of mid-CY27. The estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period. We expect to update the market on JS1's timing and optimised capital expenditure estimate in H2 FY26.

Given potential for additional potash supply coming to market in the medium term, and as part of our regular review of the sequencing of capital projects under the Capital Allocation Framework, we are considering a two-year extension for the execution of JS2 from FY29 to FY31. We expect to update the market on JS2's timing estimate during H1 FY26, and optimised capital expenditure estimate in H2 FY26.

We have spent US$4.5 bn on JS1 and US$0.4 bn on JS2 since they commenced execution.

 

Footnotes

i        Percentage reductions when run on lower or low to zero GHG emissions ammonia compared to a conventionally fuelled voyage. Vessels expected to be delivered from 2028. Lower GHG emissions: Capable of between 5% to 80% lower GHG emissions intensity (gCO2-e/joule) on a well-to-wake basis compared to conventional fossil fuels used in shipping. Low to zero GHG emissions: Capable of between 81% to 100% lower GHG emissions intensity (gCO2-e/joule) on a well-to-wake basis compared to conventional fossil fuels used in shipping. Well-to-wake means inclusive of the GHG emissions across the entire process of fuel production, delivery and use onboard vessels.

ii       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. Refer to copper and the production and sales report for further information.

iii     FY24 production includes 5 Mt (10 Mt on a 100% basis) from the Blackwater and Daunia mines, which were divested on 2 April 2024. Excluding these volumes, FY25 production increased 5%. Refer to steelmaking coal and the production and sales report for further information.

iv      Western Australia Nickel ramped down and entered temporary suspension in December 2024. Refer to nickel and the production and sales report for further information.

v       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 the 2025 financial year on 30 June 2025. A portion of these payments were funded by cash generated from the Samarco operations. The cash impact of BHP Brasil's obligations relating to the Samarco dam failure for H2 FY25 is outlined on page 2.

vi      821 mm of rainfall recorded at Moranbah Airport in FY25, 36% higher than FY24 (602 mm).

 

 

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BHP | Operational review for the year ended 30 June 2025

Appendix 1

Average realised prices

	Quarter performance			H2 performance			Full year performance
Average realised pricesi	Q4 FY25	v Q3 FY25	v Q4 FY24	H2 FY25	v H1 FY25	v H2 FY24	FY25	v FY24
Copper (US$/lb)ii, iii, iv	4.43	(3%)	(3%)	4.50	13%	5%	4.25	7%
Iron ore (US$/wmt, FOB)v	79.93	(8%)	(12%)	83.15	3%	(16%)	82.13	(19%)
Steelmaking coal (US$/t)vi, vii	177.32	(4%)	(28%)	180.65	(12%)	(32%)	193.82	(27%)
Energy coal (US$/t)viii	85.70	(12%)	(31%)	91.28	(27%)	(24%)	107.80	(11%)

i        Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments.                                                                                                                                

ii       The large majority of copper cathodes sales were linked to index price for quotation periods one month after month of shipment, and three to four months after month of shipment for copper concentrates sales with price differentials applied for location and treatment costs.

iii     At 30 June 2025, the Group had 434 kt of outstanding copper sales that were revalued at a weighted average price of US$4.52/lb. The final price of these sales will be determined in FY26. In addition, 430 kt of copper sales from FY24 were subject to a finalisation adjustment in the current period. The displayed prices include the impact of these provisional pricing and finalisation adjustments.

iv      Sales from Carrapateena and Prominent Hill acquired through the purchase of OZL are included since the Q4 FY24 period.

v       The large majority of iron ore shipments were linked to index pricing for the month of shipment, with price differentials predominantly a reflection of market fundamentals and product quality. Iron ore sales for FY25 and Q4 FY25 were based on an average moisture rate of 7.1% (FY24 6.7%; Q4 FY24 6.9%).

vi      The large majority of steelmaking coal and energy coal exports were linked to index pricing for the month of scheduled shipment or priced on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.

vii    From FY25, steelmaking coal refers to hard coking coal which is generally those steelmaking coals with a Coke Strength after Reaction (CSR) of 35 and above. Comparative periods include impacts from weak coking coal, which refers generally to those steelmaking coals with a CSR below 35, which were sold by Blackwater and Daunia mines, divested on 2 April 2024.

viii   Export sales only. Includes energy coal sales from steelmaking coal mines.

Unit cost guidance

Unit cost	Current FY25 guidancei
Escondida (US$/lb)	1.30 - 1.60	Bottom end
Spence (US$/lb)	2.00 - 2.30	Unchanged
Copper SA (US$/lb)ii	1.30 - 1.80	Upper half
WAIO (US$/t)	18.00 - 19.50	Upper half
BMA (US$/t)	128 - 133	Unchanged

i        FY25 unit cost guidance is based on exchange rates of AUD/USD 0.66 and USD/CLP 842.

ii       Calculated using the following assumptions for by-products: gold US$2,000/oz, and uranium US$80/lb.

Exploration

Minerals exploration and evaluation expenditure was US$396 m for FY25 (FY24: US$457 m) of which US$346 m was expensed (FY24: US$399 m).

 

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BHP | Operational review for the year ended 30 June 2025

Appendix 2

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