BHP Group FY26 Record Iron Ore, ~2Mt Copper Production
BHP Group reported a strong operational performance for the year ended June 30, 2026, achieving record iron ore production of 264.7 Mt and approximately 2 Mt of copper production for the second consecutive year. The company benefited from higher realized prices for copper and iron ore, alongside disciplined cost control with several assets meeting the bottom end of unit cost guidance. However, the company expects to record a significant impairment of approximately US$2.3 billion for the Jansen potash project and negative EBITDA for WA Nickel and Jansen. Strategic growth initiatives, including the approval of the Ministers North iron ore project and advancements in copper growth options, are progressing, while net debt is projected at US$9 billion.
Key Highlights
- Record iron ore production of 264.7 Mt for FY26, a 1% increase year-over-year.
- Copper production of 1,952.8 kt for FY26, marking the second consecutive year around 2 Mt.
- Average realized copper price increased 35% to US$5.74/lb; iron ore price rose 3% to US$84.56/wmt.
- FY26 unit costs for Escondida, Spence, and Copper South Australia are at the bottom end of guidance.
- Jansen potash project impairment of approximately US$2.3 billion recorded for H2 FY26.
- Net debt is expected to be approximately US$9 billion as of June 30, 2026.
- Ministers North iron ore project approved for a US$0.9 billion investment, with first ore expected in FY29.
- Brandon Craig commenced as CEO, and a new Executive Leadership Team was announced.
Price Impact
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