BHP Group Limited

BHP and SiTration, a Massachusetts Institute of Technology spin-out, are planning two pilot programmes of copper recovery technology at BHP's site in the Globe-Miami district of Arizona. The initial phase will be a small-scale trial running over one month, followed later this year by a larger deployment expected to produce up to two tonnes of commercial-scale copper cathodes over two months. The companies aim to extract copper from legacy mining water at the historic Copper Cities site, which produced nearly 400,000 tonnes of copper between the 1950s and early 1980s. SiTration has already conducted bench-scale tests on feedstock from Copper Cities that reportedly produced LME Grade A copper without chemicals, without new waste products, and with energy consumption below 3–4 kilowatt-hours per kilogram. Both companies have signed an agreement to collaborate on the pilot programme and evaluate future opportunities if results are positive.

BHP Group Limited reported that copper generated $18.19 billion of underlying EBITDA in the year ended June 30, overtaking iron ore's $14.53 billion and contributing more than half of group EBITDA for the first full year. Underlying attributable profit rose 30% to $13.2 billion, above consensus estimates of $12.66 billion, while Australian shares climbed as much as 4.2% to a two-month high. The miner reduced net debt to $8.69 billion and lifted its FY2026 dividend to $1.72 per ordinary share, the highest in four years. BHP expects average annual capital and exploration spending of about $11 billion over the medium term, with more than half directed toward copper growth, and estimates its project pipeline could increase attributable copper production by approximately 40% by fiscal 2035. The company produced approximately 2 million metric tons of copper for a second consecutive year and describes itself as the world's largest copper producer, while its average realized copper price increased 35% to $5.74 per pound.

BHP delivered sharply higher full-year earnings as rising copper prices and improved operational performance boosted margins, while the mining giant outlined plans to direct billions of dollars toward expanding its copper business over the coming decade. Underlying EBITDA rose 27% to $32.9 billion for the year ended June 30, from $26.0 billion a year earlier, while underlying attributable profit climbed 30% to $13.2 billion. The company declared $8.7 billion of dividends for the year, equivalent to 172 U.S. cents per share, including a final dividend of 99 cents per share. Copper has now become the center of gravity of BHP's portfolio, with the segment accounting for 54% of group EBITDA in fiscal 2026 and delivering an EBITDA margin of 70%, compared with 61% for iron ore. BHP expects copper demand to rise from around 34 million tons per year currently to more than 50 million tons by 2050, and sees the potential for a copper supply deficit of as much as roughly 10 million tons annually during the next decade. The company approved about $500 million of pre-commitment funding for a new concentrator at Chile's Escondida mine, a project estimated to require $5.4 billion to $6.3 billion of capital and produce 230,000-270,000 tons of copper annually, with a final investment decision targeted for 2027-2028 and first production expected in 2031-2032. BHP plans to spend roughly $11 billion annually on capital projects over the medium term, including about $4 billion per year on growth, with more than 55% of growth spending expected to target copper.

BHP Group is in talks with NexGen Energy over the massive Rook I uranium project in Saskatchewan, moving the mining giant closer to the center of the uranium race. NexGen is searching for roughly $1 billion in funding over the next nine months and is considering a mix of project equity, debt financing and long-term customer agreements. Rook I is not expected to start production until around 2030, but the project could become one of the world's biggest uranium operations. BHP already has uranium exposure through Olympic Dam, and Reuters reported that the mining giant previously explored a potential NexGen acquisition, although BHP has stayed quiet on the latest discussions. Shares gained about 1.4% to $87.96 as investors looked beyond traditional commodities and focused on uranium's growing role in powering the next wave of artificial intelligence infrastructure.

Resolution Copper has awarded contracts totaling approximately $110 million to Major Drilling America and Redpath USA Corporation for early-phase work on its proposed underground copper mine in Arizona. The contracts are part of a planned $500 million investment program and follow the completion of the Final Environmental Impact Statement process, a Record of Decision, and a congressionally required land exchange earlier this year. Major Drilling America will conduct deep-hole directional diamond core drilling over two-and-a-half years, while Redpath USA Corporation will handle the first phase of underground development, including converting two 7,000-foot shafts and installing new infrastructure. The work is expected to create 100 new full-time positions, and a final investment decision remains subject to ongoing data collection, permitting, and partner approvals. Resolution Copper is a joint venture between Rio Tinto, which holds a 55% stake, and BHP, which owns 45%.

Wheaton Precious Metals reported record quarterly revenue of $929 million, an 85% increase year-over-year, driven by higher gold and silver prices and increased sales volumes. Net earnings rose 86% to $543 million, while operating cash flow reached $650 million, up 57%. Second-quarter production was 202,000 gold equivalent ounces, a 6% increase, with sales volumes of 209,000 GEOs, up 14%. The company closed the Antamina silver stream with BHP, the largest precious metals streaming transaction ever, and ended the quarter with a net debt position of approximately $1.9 billion. Wheaton also paid $171 million in dividends and highlighted an industry-leading organic growth profile targeting 1.2 million GEOs by 2030.

The S&P/ASX 200 index of the Australian stock market closed at a record high today, buoyed by the Dow Jones index surging to a new high for two consecutive trading days, as signs of progress in negotiations to end the war between the United States and Iran dragged oil prices lower. The S&P/ASX 200 closed at 9,227.80 points, up 82 points or 0.90 percent, while the All Ordinaries index closed at 9,405.40 points, up 93.50 points or 1.00 percent. Non-energy mining stocks and technology stocks led the market higher, with BHP and Rio Tinto surging 3.3 percent and 2.3 percent respectively on copper business revenue. Gold mining stocks rose in line with gold prices, with Evolution Mining jumping 6.3 percent and Northern Star Resources up 5.8 percent. The big four bank stocks fell between 0.4 percent and 1.4 percent, and energy stocks also declined.

The S&P/ASX 200 index of the Australian stock market closed sharply higher by 121.70 points, or 1.39%, at 8,894.00 points today, supported by a drop in oil prices and an easing of tensions in the Middle East after the United States and Iran temporarily halted attacks on each other. The All Ordinaries index closed at 9,063.80 points, up 122.30 points, or 1.37%. All sectors advanced, led by technology, commercial services, non-energy minerals, and processing industries. Capricorn Metals soared 14.3%, BHP jumped 2.2%, Goodman Group rose 3.3%, Aristocrat Leisure gained 2.1%, and Evolution Mining added 2%. The four major banks rose between 1.1% and 1.5%. However, the market trimmed gains as investors turned cautious ahead of the release of Australia's June and second-quarter 2026 inflation data this week, amid concerns over persistent inflationary pressures.

Zacks Investment Research has identified Freeport-McMoRan, Southern Copper, and BHP Group as copper producers poised to benefit from the massive growth in AI-powered data centers. The four major hyperscalers have raised their AI capital expenditure budget to $750 billion for 2026, a figure expected to surpass $1 trillion next year, with Moody's estimating more than $3 trillion in total investment over the next five years. An AI-led data center consumes ten times more copper than a conventional one, and while data centers currently account for just 1% of global copper demand, the AI boom could dramatically reshape the landscape. Freeport-McMoRan is expanding reserves and executing smelter projects in Indonesia, Southern Copper is advancing over $20.5 billion in investments across Peru and Mexico, and BHP Group is leveraging strong execution at Escondida and Copper South Australia while shifting toward future-facing commodities. All three stocks carry a Zacks Rank of 3, or Hold.

Copper futures for September delivery on the COMEX market closed up 7.60 cents, or 1.21%, at 6.3410 dollars per pound on Monday, supported by declining inventories and lower-than-expected supply from Chile, a major producer. BHP Group signaled that copper output in Chile is likely to decline next year, while South32 missed its production target in the fourth quarter as severe weather affected mines at its Chilean project. Goldman Sachs warned that if the Middle East conflict escalates, it could pressure prices through inflation concerns and prolonged high interest rates, which would hit industrial metals that rely on economic growth, amid steadily falling copper stockpiles.

BHP has approved a $900 million investment to develop the Ministers North iron ore project in Western Australia's Pilbara region. The project will develop the high-grade Brockman ore deposit as a satellite extension of the Yandi mine, leveraging existing infrastructure to reduce costs and improve efficiency. Once fully ramped up, Ministers North is expected to produce 20 million tonnes per annum, supporting BHP's medium-term iron ore production target of 305 million tonnes per year on a 100% basis. Construction is set to begin this month with first ore targeted in fiscal 2029. The joint venture is owned by BHP with 85%, Itochu Corporation with 8%, and Mitsui & Co. with 7%.

BHP Group's iron ore production recovered in the fourth quarter after weather-related disruptions hit output in the prior quarter, while copper production also edged up. West Australian iron ore production, on a 100% basis, rose 7% quarter-on-quarter to 74.8 million metric tons in the three months to June 30, and hit a record high for the fiscal year at 291.2 million metric tons, in line with guidance. Average realised iron ore prices were $83.58 per metric ton, down 2% sequentially but up 5% from a year ago. Copper production rose 3% quarter-on-quarter to 491.9 thousand metric tons, but fell 5% from a year earlier, with fiscal year output down 3% to 1.95 million metric tons, also in line with guidance. BHP guided fiscal 2027 iron ore production of 286 to 298 million metric tons and copper production of 1.65 to 1.80 million metric tons, citing an unexpected snag in its South Australia operations, while average realised copper prices surged to $6.53 per pound, up 11% sequentially and 47% year-on-year.

The Sydney stock market closed higher. Major mining stocks were bought, and iron ore prices rose as concerns over supply disruptions grew due to a planned strike by workers at BHP's Port Hedland operations in Western Australia. The mining stock index gained 1.7 percent, with BHP rising as much as 4.4 percent to hit its highest level in about four weeks. The S&P/ASX index finished up 32.600 points at 8841.100.

BHP Group has secured an initial environmental permit for the expansion of its Escondida copper mine in Chile. The approval allows the company to proceed with early-stage projects valued at $1.3 billion, including sulphide leaching operations and electricity infrastructure improvements. This permit is a key milestone within BHP's broader investment plan, which involves spending between $10.7 billion and $14.7 billion on its Chilean operations in the coming years. The upgrades aim to address declining ore grades and support the company's long-term goal of doubling its global copper output to over two million tonnes by the mid-2030s. BHP holds a 57.5% interest in the Escondida site, with the remaining ownership split between Rio Tinto Group and a consortium of Japanese companies.

Faraday Copper has signed a definitive agreement to acquire BHP's San Manuel property in Arizona, creating a multi-asset copper district in the USA. Faraday will issue common shares to BHP equivalent to a 30% fully diluted interest, with BHP expected to hold approximately 138 million shares after closing. The transaction combines San Manuel with Faraday's adjacent Copper Creek project, aiming to accelerate near-term copper cathode production and leverage private land and existing infrastructure. Faraday shareholders will vote on the deal at a special meeting expected in August 2026, with completion targeted by the end of the third quarter of 2026. The Board unanimously recommends approval, and TD Securities has provided a fairness opinion.

BHP, Rio Tinto and Caterpillar have launched a trial of Cat 793 XE Early Learner battery-electric haul trucks at BHP's Jimblebar iron ore mine in Western Australia's Pilbara region. The trial follows months of safety validation in the United States and is now subjecting the trucks to rigorous testing in one of the world's most demanding mining environments. Jimblebar is hosting two of the seven Caterpillar Early Learner trucks being tested globally, with more than 100 hours of operation and 200 test laps already providing critical data on safety, technology and maintenance. The trial is also exploring high-powered static and dynamic charging, and the next phase will evaluate in-motion energy transfer systems to boost efficiency. Executives from the three companies emphasized that collaboration is essential to reducing emissions from large-scale haulage, and the trial is expected to accelerate electrification technologies supporting lower emissions and sustainable mining.

BHP-backed I-Pulse has signed an agreement with the U.S. Department of Commerce for a $250 million award to advance its semiconductor and pulsed-power technology. The funding from the CHIPS Research and Development Office will support development of high-performance silicon-carbide semiconductor components used in pulsed-power systems, with applications in geothermal drilling, mining, rock crushing, manufacturing, and defense. The program will be led by the company's Albuquerque team near Sandia National Laboratories and the U.S. Air Force Research Laboratory, involving U.S. national laboratories, universities, and specialized manufacturers.

Zacks Investment Research named three stocks with a buy rank and strong income characteristics for investors to consider on June 24. Bunge Global SA, a Zacks Rank #1 company, saw its current-year earnings consensus estimate rise 12.3% over the last 60 days and offers a dividend yield of 2.6% versus an industry average of 0.0%. TFI International Inc., also a Zacks Rank #1 company, had its current-year earnings estimate increase 12.6% over the same period and provides a dividend yield of 1.3% compared with an industry average of 0.0%. BHP Group Limited, another Zacks Rank #1 company, experienced a 4% increase in its current-year earnings estimate over the last 60 days and carries a dividend yield of 3.4% against an industry average of 0.0%.

The Australian stock market is trading modestly higher on Tuesday, reversing some of the losses in the previous three sessions. The benchmark S&P/ASX 200 Index is gaining 24.80 points or 0.28 percent to 8,840.90, with iron ore miners advancing while gold miners and technology stocks weigh. Among major miners, Fortescue, BHP Group and Rio Tinto are gaining almost 1 percent each, while gold miner Northern Star Resources is declining almost 2 percent. The manufacturing sector continued to expand in June, with the S&P Global manufacturing PMI rising to 51.2 from 50.7 in May. The Aussie dollar is trading at $0.699.

Canadian National Railway Co has secured a deal to provide rail services to mining giant BHP for transporting potash from the Jansen mine in Saskatchewan to Vancouver ports for export. The initial contract will run for approximately four years and is focused on the Jansen Stage 1 production, with the railroad operator potentially involved in later phases. Canadian National Railway will operate unit trains using BHP-owned railcars between the mine and export terminals. BHP stated the arrangement strengthens its supply chain reliability and positions it well to deliver potash to global customers, while Canadian National Railway called the Jansen project a significant opportunity for Canada's export industry. The Jansen mine is expected to begin production in mid-2027.

BHP is preparing to sell its power transmission lines in Chile valued at approximately $1.5 billion, as it refocuses toward copper mining in the country, newspaper Diario Financiero reported Wednesday. The transaction would include the transmission lines that feed power to BHP's Escondida, Spence, and Cerro Colorado mines, spanning roughly 1,000 kilometers across the three operations, including the currently shuttered Cerro Colorado. Potential bidders could include transmission companies, other energy firms, or institutional investors. The possible sale was not included when Morgan Stanley last month estimated the miner could generate more cash than expected from asset sales, analyst Rahul Anand said. The bank said in May that BHP's target of $10 billion from asset sales could be exceeded by about $3 billion, supporting its balance sheet and growth plans, and BHP has already unlocked more than $6 billion through a power network stake sale in Australia and its Antamina silver stream.