BHP Group Limited (NYSE: BHP, ASX: BHP)

BHP (BHP Group Limited)

BHP Group Limited (NYSE: BHP, ASX: BHP) is one of the world's largest diversified mining companies, with its business increasingly centered on copper while maintaining major iron ore, steelmaking coal and potash operations. Investors are paying particular attention to BHP because its FY2026 results showed stronger earnings and cash generation, while copper emerged as the company's largest earnings contributor for the first time.

1. Company Overview and Business Model

Company Name: BHP Group Limited

BHP is the successor to the historic Broken Hill Proprietary Company and has operated since 1885. The company has evolved from an Australian silver and lead miner into a global resources company supplying commodities used in construction, manufacturing, electricity, technology, agriculture and energy infrastructure.

Headquarters

BHP's global headquarters are located at: 171 Collins Street, Melbourne, Victoria 3000, Australia.

Stock Exchanges and Tickers

BHP Group Limited is primarily listed on the Australian Securities Exchange (ASX: BHP) and also trades on the New York Stock Exchange (NYSE: BHP) through an American Depositary Share program. BHP also maintains secondary listings in London and Johannesburg.

One important difference for investors is that each BHP ADS traded on the NYSE represents two ordinary BHP shares.

CEO

As of July 1, 2026, Brandon Craig is BHP's Chief Executive Officer. He succeeded Mike Henry after more than 25 years of leadership experience across BHP's copper, iron ore and coal businesses.

Established and Market Position

BHP was incorporated in 1885 after the discovery of valuable silver and lead deposits at Broken Hill in New South Wales. Over more than 140 years, it has transformed into one of the world's largest diversified resource companies.

Today, BHP's business is organized around several major commodities:

∙ Copper

∙ Iron ore

∙ Steelmaking coal

∙ Potash

BHP's strategy has increasingly emphasized commodities with long-term structural demand growth, particularly copper and potash.

Revenue Model

BHP primarily makes money by exploring, developing, mining, processing and selling natural resources to customers around the world.

The company's revenue and profitability are therefore highly influenced by commodity prices, production volumes, operating costs, exchange rates and global economic conditions. Unlike a traditional consumer company, BHP does not primarily compete by selling branded finished products. Its financial performance is closely linked to the global supply and demand balance for raw materials.

This model creates substantial operating leverage. When copper or iron ore prices rise while production costs remain controlled, BHP can generate significantly higher cash flow. Conversely, falling commodity prices can quickly reduce earnings.

2. Major Products and Services: Core Competitive Advantages

Major Businesses

BHP's most important businesses are copper and iron ore, supported by steelmaking coal and the developing potash business.

Copper

Copper has become the centerpiece of BHP's long-term growth strategy.

BHP produced approximately 2 million tonnes of copper in FY2026 for the second consecutive year, while copper contributed more than half of the company's Underlying EBITDA for the first time. BHP's annual report describes copper as the main engine of its future growth.

Major copper assets and growth opportunities include:

∙ Escondida in Chile

∙ Copper South Australia

∙ Spence in Chile

∙ Resolution Copper in the United States

∙ Vicuña projects in Argentina and Chile

BHP estimates that its copper growth options could increase attributable copper production by approximately 40% by FY2035.

Iron Ore

Western Australia Iron Ore, commonly referred to as WAIO, remains one of BHP's most important cash-generating businesses.

In FY2026, WAIO achieved record production and maintained its position as one of the world's lowest-cost major iron ore operations. Its scale, integrated mine-rail-port infrastructure and relatively low operating costs are major competitive advantages.

Steelmaking Coal

BHP's steelmaking coal operations supply metallurgical coal used in steel production. The business provides exposure to global steel demand while also offering diversification from BHP's copper and iron ore operations.

Potash

Potash represents BHP's major diversification project.

The company's Jansen project in Saskatchewan, Canada, is intended to establish BHP as a major potash producer. Stage 1 was approximately 84% complete in FY2026 and first production remains targeted for mid-2027.

Key Competitive Advantages

BHP's main competitive advantages include:

∙ Large-scale, long-life mining assets

∙ Low-cost iron ore operations

∙ Strong copper resource base

∙ Geographic diversification

∙ Integrated logistics infrastructure

∙ Strong balance sheet

∙ Operational expertise and scale

∙ Significant future copper growth pipeline

BHP's scale is particularly important because large mines require enormous amounts of capital, infrastructure and technical expertise. This creates barriers to entry that smaller competitors may find difficult to overcome.

3. Market Environment and Recent Developments

Industry Trends

The global mining industry is being influenced by several competing forces.

On the positive side, copper demand is benefiting from electricity-grid investment, renewable energy, electric vehicles, data centers and broader electrification. The International Energy Agency (IEA) expects copper to record the largest volume increase among critical minerals through 2040, reflecting its importance to electricity networks and emerging technologies.

At the same time, new mine development is becoming increasingly difficult. Declining ore grades, long permitting processes, higher construction costs and geopolitical uncertainty can make it difficult to bring new copper supply to market.

The IEA's 2026 outlook still identifies copper as an important area of potential supply tightness, despite improvements in the projected project pipeline.

This environment is potentially favorable for established miners such as BHP because they already own operating assets and have the capital and expertise required to expand production.

FY2026 Financial Performance

BHP's financial performance improved substantially during the fiscal year ended June 30, 2026.

According to BHP's FY2026 annual report:

∙ Revenue: approximately US$58.8 billion

∙ Attributable profit: approximately US$9.8 billion

∙ Underlying attributable profit: approximately US$13.2 billion

∙ Underlying EBITDA: approximately US$33 billion

∙ Free cash flow: approximately US$9.8 billion

∙ Net debt: approximately US$8.7 billion

∙ FY2026 total dividend: US$1.72 per share

∙ FY2026 capital expenditure and exploration: approximately US$10.3 billion

Underlying EBITDA increased approximately 27%, while free cash flow increased approximately 83% year over year. BHP also reported that its average unit costs across major assets were approximately 6% lower despite inflation and higher diesel costs.

One reason underlying profit was considerably higher than statutory attributable profit was the impairment associated with the Jansen potash project. BHP indicated that higher projected capital intensity could result in an approximately US$2.3 billion impairment charge related to Jansen.

Copper Overtakes Iron Ore as the Earnings Engine

One of the most important developments in BHP's FY2026 results was the changing composition of its earnings.

Copper generated approximately US$18.2 billion of operating earnings, exceeding iron ore's approximately US$14.5 billion, according to Reuters.

This is strategically important because it shows that BHP is gradually evolving from an iron-ore-heavy diversified miner into a company with much greater exposure to copper.

Recent Strategic Developments

BHP is investing heavily in future copper supply and expects its copper growth options to potentially increase attributable production by around 40% by FY2035. The company has also approved approximately US$500 million in pre-commitment funding for a new Escondida concentrator ahead of a potential final investment decision in 2027–2028.

BHP also completed the acquisition of Filo Corp. in January 2025 with Lundin Mining, creating the Vicuña joint venture and strengthening its long-term copper growth pipeline in Argentina and Chile.

Another recent development is potential interest from China Baowu in acquiring a minority stake in BHP's Jimblebar iron ore mine. Reuters reported in September 2026 that Baowu was considering a 15–25% stake, although no final transaction had been announced.

Major Competitors

BHP competes with several major global mining companies, including:

∙ Rio Tinto

∙ Vale

∙ Glencore

∙ Anglo American

∙ Freeport-McMoRan

∙ Fortescue

The competitive landscape varies by commodity. Rio Tinto is particularly important in iron ore, Vale is a major iron ore and base-metals producer, while Freeport-McMoRan is more heavily focused on copper.

4. Recent BHP Stock Price

BHP is unusual in that investors can access the company through both the ASX and NYSE.

According to Google Finance data available on September 9, 2026, BHP traded on the ASX at approximately A$64.58, up 3.25% on the day. The session opened at A$63.89 and reached an intraday high of A$64.58.

The ASX-listed shares had a 52-week range of approximately A$39.30 to A$68.77. At A$64.58, the stock was therefore trading relatively close to its 52-week high.

On the NYSE, Google Finance showed BHP at approximately US$91.99 at the September 8, 2026 U.S. market close, up 1.74% for the session. The 52-week range was approximately US$51.83 to US$98.71.

Google Finance also showed a market capitalization of approximately US$230.8 billion for the NYSE security, a trailing P/E ratio of about 23.8, and a dividend yield of approximately 3.74% at the time of its latest displayed data.

The difference between the ASX and NYSE prices should not be interpreted as a simple valuation difference because the NYSE ADS represents two underlying BHP ordinary shares.

Recent share-price strength reflects more than just improved earnings. Investors have increasingly recognized BHP's potential exposure to copper, which is benefiting from structural demand associated with electrification, power infrastructure and data-center development.

However, the stock remains sensitive to commodity prices. A sharp decline in copper or iron ore prices could quickly change the earnings outlook.

5. Investment Attractions and Risk Factors

Why Investors May Find BHP Attractive

• Strong copper exposure

Copper is increasingly central to BHP's earnings and growth strategy. This gives investors exposure to a commodity that could benefit from long-term electrification and infrastructure investment.

• High-quality iron ore assets

WAIO provides BHP with large-scale, relatively low-cost iron ore production and substantial cash-generation capacity.

• Improving balance sheet

Net debt declined to approximately US$8.7 billion at the end of FY2026, strengthening BHP's financial flexibility.

• Dividend income

BHP declared a FY2026 total dividend of US$1.72 per share, its highest annual distribution in four years.

• Future growth projects

The company's copper expansion projects and Jansen potash development could provide additional sources of production and earnings over the next decade.

Major Risks

• Commodity price risk:

BHP's earnings remain strongly linked to copper, iron ore and other commodity prices. A global recession or weaker Chinese industrial demand could negatively affect prices.

• China exposure:

China is a major consumer of iron ore and other commodities. Changes in Chinese construction, infrastructure spending and steel production can have significant effects on BHP.

• Project execution risk:

Large mining projects can experience cost overruns, delays and technical problems. Jansen illustrates this risk, with projected capital intensity leading to a substantial impairment charge.

• Labor and operational risk:

Mining operations depend on reliable labor, transportation infrastructure and port facilities. In September 2026, BHP was still negotiating with unions representing Port Hedland iron ore workers.

• Environmental and regulatory risk:

Mining companies face environmental regulations, climate-related requirements, permitting challenges and community expectations that can increase costs or delay projects.

• Capital intensity:

Copper mines and processing facilities require significant upfront investment. Even when long-term demand is strong, shareholders face the risk that project returns fail to meet expectations.

BHP SWOT Analysis

Strengths: Global scale, world-class assets, strong copper portfolio, low-cost iron ore operations, diversified commodities and improving balance sheet

Weaknesses: High exposure to commodity cycles, capital-intensive projects and significant dependence on successful project execution

Opportunities: Copper demand growth, electrification, AI data centers, renewable-energy infrastructure, copper expansion and Jansen potash

Threats: Commodity-price declines, Chinese economic weakness, labor disputes, environmental regulation, geopolitical risks and project cost inflation

6. Conclusion

BHP is no longer simply an iron ore investment story. Its FY2026 results demonstrate that copper has become the company's most important earnings engine, while iron ore continues to provide substantial cash flow and potash offers a potential new growth platform.

The long-term copper thesis is particularly interesting. Electricity grids, renewable energy, electric vehicles, digital infrastructure and data centers all require significant quantities of copper. The IEA's latest critical-minerals analysis also highlights the strategic importance of copper and the continuing challenges of developing enough new supply.

At the same time, investors should not overlook BHP's risks. The company's financial results remain sensitive to commodity prices, while major growth projects require billions of dollars of capital and careful execution. The Jansen impairment is a useful reminder that even a large and financially strong mining company can make costly project decisions.

In my view, BHP's most compelling feature is the combination of high-quality existing assets, strong cash generation and increasing exposure to copper. The company appears strategically well positioned for a world that requires more electricity, infrastructure and critical minerals. However, the recent rise in the share price means investors should also consider valuation and commodity-cycle risks rather than assuming that strong recent performance will continue indefinitely.

For long-term investors, BHP is best understood as a large-scale global mining company transitioning toward a more copper-focused growth strategy, rather than simply as a traditional iron ore producer.

Disclaimer

This article is provided for educational and informational purposes only. It does not constitute investment advice, financial advice, trading advice, or a recommendation to buy or sell BHP shares or any other security. The article contains the subjective opinions of the author and should not be considered a substitute for professional financial research or advice. Stock prices, financial figures and market conditions can change rapidly. Investors should conduct their own research and consider their individual financial circumstances and risk tolerance before making any investment decision.