BHP posts record profit and hikes dividend as copper demand surges

BHP, the world’s largest mining group, disclosed a 30% rise in underlying profit to $13.2 billion for the fiscal year that ended on June 30, alongside a 15% increase in revenue to $58.8 billion. The company will pay a final dividend of 99 cents per share, which together with the earlier half-year distribution of 73 cents results in a full-year payout of $1.72, the highest in four years. Chief executive Brandon Craig said the firm enjoyed record iron ore shipments and produced two million tonnes of copper for the second consecutive year, emphasizing copper’s contribution to earnings and cash flow.

Iron ore continues to generate substantial profit, while coal earnings improved modestly despite high Australian taxes. Construction of the first stage of the Jansen potash project in Saskatchewan is 84% finished, positioning BHP in the fertilizer market for the long term. Some analysts cautioned that the share price, up 41% since the start of the year, may be overvalued, with a lower price target suggested by RBC Capital Markets.