Balanced Portfolio Update: BHP Quarterly

*** QUARTERLY OPRATIONAL UPDATE ***

BHP Operational Review Summary (Year Ended June 30, 2024)

Operational Highlights

• Iron Ore: Record production at Western Australia Iron Ore (WAIO) for the second consecutive year.
• Copper: Highest production in over 15 years, with significant contributions from Escondida and Spence.
• Coal: Sale of Blackwater and Daunia metallurgical coal operations; plans to increase BMA production in the next five years.
• Nickel: Temporary suspension of Western Australia Nickel operations due to market conditions.
• Potash: Progress on Jansen Stage 1 and 2 in Canada, targeting major global production by the end of the decade.

Financial Performance

• Prices: Higher average realized prices for copper and iron ore; stable metallurgical coal prices; lower prices for nickel and energy coal.
• Costs: FY24 unit cost guidance met for Escondida, WAIO, and Spence; revised guidance met for BMA.
• Revenue: Strong operational performance led to higher production and revenue in key commodities.

Decarbonisation Efforts

• Progress on Scope 1, 2, and 3 emissions.
• Collaborations on battery electric haul trucks and pilot electric smelting furnace.

Production Guidance for FY25

• Copper: 1,845 – 2,045 kt, slight increase from FY24.
• Iron Ore: 255 – 265.5 Mt, consistent with FY24.
• Metallurgical Coal: 16.5 – 19 Mt, lower due to divestments and operational challenges.
• Energy Coal: 13 – 15 Mt, slight decrease.
• Nickel: No production guidance due to temporary suspension.

Conclusion

Overall, BHP has shown strong operational performance with record production in several key commodities and has met or exceeded its production and cost guidance for FY24. The company is actively progressing its growth and decarbonisation strategies, despite challenges in the nickel market.