In This Article:
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Production Growth: Over 5% increase in major commodities production, excluding divestments and suspensions.
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Unit Cost Reduction: Close to 4% reduction in unit costs for major assets.
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Inflation Impact: Almost a 4% inflation headwind, successfully overcome.
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Interim Dividend: USD 0.50 per share.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BHP Group Ltd (NYSE:BHP) reported a strong operational and financial performance for the December 2024 half-year, with a production increase of over 5% in major commodities.
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The company achieved a close to 4% reduction in unit costs for major assets, overcoming a 4% inflation headwind.
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BHP Group Ltd (NYSE:BHP) declared an interim dividend of USD0.50 per share, reflecting strong underlying operational performance.
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The company is advancing attractive organic growth projects, including a joint venture with Lundin Mining in Argentina for a significant copper discovery.
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BHP Group Ltd (NYSE:BHP) is well-positioned with strong demand for its products, supported by early signs of recovery in China, resilient US economic performance, and strong growth in India.
Negative Points
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BHP Group Ltd (NYSE:BHP) faces challenges in mergers and acquisitions (M&A) due to market circumstances, making it difficult to find value in large global deals.
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The company has not yet provided a timeline for the CapEx announcement or investment decision on the Waikuna project.
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BHP Group Ltd (NYSE:BHP) is cautious about the iron ore market, anticipating a contracting market towards the end of the decade due to plateauing Chinese steel demand.
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The nickel market remains uncertain, with BHP Group Ltd (NYSE:BHP) suspending operations and planning to review the decision to restart in early 2027.
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The company is dealing with ongoing legal challenges related to the Samarco disaster, with claimants in the UK case and potential liabilities still unresolved.
Q & A Highlights
Q: Can you provide an update on the timing for the Waikuna project, including CapEx announcements and investment decisions? A: We haven't specified exact timings yet, but we plan to provide resource updates and outline key milestones, including potential FID completion, in the first half of the year. - Mike Henry, CEO
Q: How does BHP view M&A opportunities given current market conditions? A: M&A is challenging due to market circumstances, and our focus remains on organic growth, particularly in copper and potash. We are committed to delivering on our existing projects. - Mike Henry, CEO