Home / Business and Economy / BHP's Copper Surge Fuels Profit Growth Amidst China Slowdown
BHP's Copper Surge Fuels Profit Growth Amidst China Slowdown
17 Feb
Summary
- BHP's profits rose over 20% due to surging copper prices.
- Copper division earnings increased 59%, now over half of total profit.
- Company received $4.3 billion from a silver streaming deal in Peru.
BHP Group reported a more than 20% increase in earnings for the six months concluding December 2025, largely propelled by a surge in copper prices.
The company's underlying attributable profit reached $6.2 billion, aligning with analyst expectations. The copper division, a key area for BHP's growth, contributed over half of the company's bottom line for the first time, with its earnings before interest, tax, depreciation, and amortization climbing 59% to $8 billion.
Realized copper prices increased by nearly a third during this period, a development anticipated by BHP's CEO Mike Henry, who noted a 30% growth in copper production over the past four years. Meanwhile, earnings from iron ore saw a modest 4% increase, supported by steel exports and manufacturing demand in China, which helped offset weaknesses in the real estate sector.
In a strategic move to capitalize on high silver prices, BHP announced it would receive $4.3 billion from a long-term silver streaming agreement with Wheaton Precious Metals Corp. This deal pertains to silver produced as a by-product at the Antamina copper mine in Peru. The company also confirmed an interim dividend of 73 cents per share, representing a 60% payout ratio.
