BHP Reports Mixed Financial Results for Fiscal Year 2024
BHP, the largest mining group in Australia, has released its financial results for the fiscal year 2024, covering the period from July 2023 to June 2024. The company reported a global sales figure of $55.7 billion, representing a 3% increase from the previous year's $53.8 billion. However, attributable profits saw a significant decline, falling 39% to $7.9 billion from $12.9 billion in fiscal year 2023.
In its copper operations, BHP reported a strong performance with underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) rising 29% to $8.6 billion, up from $6.7 billion the previous year. The copper segment contributed 29% to the company’s overall EBITDA, highlighting its importance within BHP’s portfolio.
Copper production increased by 9% during fiscal year 2024, and BHP has projected a further 4% increase for fiscal year 2025, largely due to higher ore grades at its Escondida mine and improved output from other copper assets. BHP emphasized its ongoing commitment to expanding its copper operations, mentioning projects in Chile and Australia that are currently in the pipeline. Specifically, BHP has a strategy in place to produce up to 650,000 tons of copper annually and has recently published its first inferred mineral resource at the Oak Dam site in Australia.
Escondida, one of BHP's key assets, saw a 7% increase in production to 1,125 thousand metric tons. The mine’s EBITDA rose 17% to $5.76 billion, up from $4.93 billion in fiscal year 2023. Sales from Escondida also grew, reaching $10.01 billion compared to $8.85 billion the previous year. For the upcoming fiscal year, BHP projects an increase in Escondida’s production by 5% to 16%, estimating a range between 1,180,000 and 1,200,000 metric tons.
Looking ahead, BHP CEO Mike Henry expressed optimism about the long-term demand for the company's products, despite potential short-term volatility in global commodity markets. Henry noted that China’s uneven economic recovery and the effectiveness of its recently announced pro-growth policies will be crucial for achieving its official 5% growth target. He also highlighted India's position as the world's fastest-growing major economy and anticipated gradual relief for developed economies from the impacts of rising interest rates over the next few years.
"We are well-positioned to capitalize on the positive momentum we've built this year. Our world-class assets, consistent operational performance, and strong balance sheet give us the confidence to invest in future growth while maintaining robust shareholder returns throughout the cycle," Henry said in a statement.
