BHP, the largest mining company in the world that mainly produces iron ore, copper, coal, gold, nickel and uranium, has reported a steep 58% decline in attributable profit for the financial year ended June.
In value terms, its profit fell from $30.9 billion to $12.9 billion. Revenue for the full year was down 17% to $53.8 billion from $65.1 billion a year earlier, primarily as a result of the significantly lower prices for iron ore, metallurgical coal and copper.
The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) was down 31% in the full year from $40.6 billion to $28 billion.
At the same time BHP reported that its iron ore production increased by 1%, while copper mining was up 9% and nickel production rose by 4% during the year.
"Our financial results for the year were strong, underpinned by reliable production together with capital and cost discipline," said BHP's CEO Mike Henry. "Our balance sheet is robust and deliberately positioned to support portfolio growth in commodities the world needs for population growth, urbanisation and decarbonisation."
BHP’s capital and exploration expenditure increased by 16% in the 2023 financial year to $7.1 billion. For 2024 and 2025, the company is targeting a capital and exploration expenditure of $10 billion a year.
"Commodity demand has remained relatively robust in China and India even as developed world economies have slowed substantially. In the near term, China’s trajectory is contingent on the effectiveness of recent policy measures," Henry added. "More broadly, there is increased recognition of the importance of critical minerals and strategies across the globe to incentivise investment in supply and demand, which provides opportunities and challenges."
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
