BHP Group Ltd (LSE:BHP, ASX:BHP) full-year results were comfortably in line with expectations, and shareholders should be pleased with a slightly better-than-expected final dividend and signs of a more flexible approach to capital returns. The mining group reported revenue of US$51.26bn, almost exactly matching the consensus estimate of US$51.29bn.
BHP Group Ltd (LSE:BHP, ASX:BHP) has reported higher annual earnings and record copper and iron ore output, but warned that the global economy faces a patchy outlook, with growth slowing but commodity demand holding firm in Asia. The world's biggest mining company by market value said underlying profit attributable to shareholders rose 14% to $10.2 billion in the year to 30 June, supported by strong operational performance and tight cost control.
Global miners BHP Group and Vale have offered around $1.4 billion to settle a class action lawsuit in the United Kingdom tied to one of Brazil's worst-ever environmental disasters, the Financial Times reported on Thursday.
Disappointing jobs data and a new round of tariffs from U.S. President Donald Trump sent stocks to their lowest level since late May on Friday, only to rebound this week. Value stocks have outperformed amid the volatility, displaying strong fundamentals and carrying more potential for upside than their growth counterparts. Using Seeking Alpha's Quant system, I have identified four highly-rated value stocks with strong fundamentals to help navigate uncertain markets.
BHP is a diversified, low-cost miner with strong margins, healthy financials, and a unique commodity mix including iron ore, copper, nickel, and soon potash. The company offers exposure to future-facing trends like electrification and electric vehicles, but remains heavily tied to Chinese demand and faces legal risks from Samarco lawsuits. Valuation shows upside potential, supported by disciplined CAPEX and growth in key projects like Jansen.
BHP Group Ltd (LSE:BHP, ASX:BHP) reported record copper and iron ore production for the year to June, and said it was on track to achieve unit cost guidance at its major mines. Group copper output rose 8% year-on-year to more than 2 million tonnes (Mt).
BHP is undervalued at 14x forward PE with a 5% dividend, offering solid returns even without divestment of iron ore and coal. A potential spin-off of iron ore and coal could unlock significant shareholder value, shifting BHP's focus to copper and potash for future growth. Copper demand is set to rise, and BHP's ramp-up in copper production and new discoveries like Vicuña position it well for long-term upside.
The world's No. 1 miner by market value reported a 10% rise in third-quarter copper output due to higher volumes from the giant Escondida mine, and flat iron-ore output.
When it comes to connecting the dots across the financial markets, investors need to remember that price action in one area typically connects to the rest of the broader machine, where watching unusual moves in different asset classes can present some of the best opportunities elsewhere. Today, that is where the new all-time high price set by copper in the commodity markets will bring a big profit potential in the coming months for copper mining stocks.
Vale's stock has declined significantly since my last writing and trades at a P/E ratio of only ~5x. Yet, I still maintain a bearish outlook and want to caution you against bottom-fishing attempts. Key commodity prices have fallen significantly, and I foresee the price pressure to persist given the increased competition from China and other miners.
We maintain a neutral rating on BHP Group due to balanced risk-reward, materialized Samarco settlement risks, and preference for Rio Tinto's cheaper valuation and organic growth. BHP's H1 2025 results showed a $2 billion sales decline, an 11% drop in EBITDA, and unchanged production guidance despite strong operational performance and lower unit costs. BHP's net debt is expected to rise to $15 billion, and its dividend payout will be trimmed by 50%. This is due to CAPEX plans and settlement costs.
BHP Group , the world's largest listed miner, on Wednesday said it raised $3 billion through an issue of senior unsecured bonds in the United States.