BHP Group Limited BHP Group Limited ABN 49 004 028 077 Registered in Australia Registered Office: Level 18, 171 Collins Street Melbourne VIC 3000 Share code: BHG ISIN: AU000000BHP4 Release Time IMMEDIATE Date 19 July 2022 Release Number 24/22 BHP OPERATIONAL REVIEW FOR THE YEAR ENDED 30 JUNE 2022 Note: All guidance is subject to further potential impacts from COVID-19 during the 2023 financial year. We continue to deliver safe and reliable production. We remained fatality free during the year and have delivered record sales volumes from Western Australia Iron Ore (WAIO), allowing us to fully capitalise on the opportunity presented by high iron ore prices. Full year production guidance for iron ore and energy coal were achieved, as were revised guidance for copper and metallurgical coal. Full year nickel production was lower than revised guidance due to a smelter outage in the June 2022 quarter. Full year unit cost guidance1 is expected to be achieved for WAIO and Escondida. New South Wales Energy Coal (NSWEC) unit costs are expected to be towards the bottom end of revised guidance, which was updated to reflect a targeted increase in the proportion of higher quality energy coal to capture more value from record high prices. BMA unit costs are expected to be marginally above revised guidance for Queensland Coal primarily due to the impact of the divestment of BMC. The Jansen shaft project was completed in the June 2022 quarter. Jansen Stage 1 is tracking to plan, with activities progressing at the port and at the Jansen site. We are working to bring forward Jansen Stage 1 first production into 2026 and are assessing options to accelerate Jansen Stage 2. The divestment of BHP’s 80% interest in BMC to Stanmore and the merger of BHP’s oil and gas portfolio with Woodside Energy were completed during the June 2022 quarter. BHP announced that it will retain NSWEC in its portfolio and seek relevant approvals to enable mining beyond the current mining consent that expires in 2026, towards a cessation of mining in 2030. The financial results for the second half of the 2022 financial year are expected to reflect certain items as summarised in the table on page 3. Production FY22 Jun Q22 Jun Q22 vs Mar Q22 commentary (vs FY21) (vs Mar Q22) Copper (kt) 1,573.5 461.8 Higher volumes at Escondida due to increased grade and concentrator throughput, (4%) 25% at Spence due to improved leaching performance and at Olympic Dam following major smelter maintenance campaign impacts in the prior period. Iron ore (Mt) 253.2 64.2 Higher volumes at WAIO reflecting record production from the Mining Area C hub with 0% 8% the continued ramp up of South Flank and improved supply chain performance. Metallurgical coal (Mt)2 29.1 8.2 Higher volumes driven by improved truck productivity, partially offset by heavy rainfall (9%) 3% in the quarter. Energy coal (Mt)3 13.7 3.9 Higher volumes due to less wet weather and reduced COVID-19 related labour (4%) 52% impacts. Nickel (kt) 76.8 18.8 Higher volumes due to reduced COVID-19 labour impacts, offset by an unplanned (14%) 1% smelter outage. Group copper equivalent production for the 2022 financial year decreased by 4%4 mainly due to lower copper and coal volumes. Group copper equivalent production for the 2023 financial year is expected to increase by approximately 4% from the 2022 financial year. BHP Operational Review for the year ended 30 June 2022 1 Summary BHP Chief Executive Officer, Mike Henry: “BHP produced a strong fourth quarter to cap off a year of significant progress. Our performance for the year has been underpinned by safe, reliable operations and firm demand for our commodities. We completed another year fatality free and we are unwavering in our effort to improve safety, and this includes addressing sexual assault and harassment, racism and bullying. We delivered record full-year sales volumes at our iron ore business in Western Australia as a result of reliable operational performance and the South Flank project which continued to ramp up. In copper, Escondida in Chile had record material mined and near-record concentrator throughput, while Olympic Dam in South Australia performed strongly in the fourth quarter after planned smelter maintenance. Queensland metallurgical coal delivered strong underlying performance for the quarter in the face of significant wet weather. BHP is assessing the impacts on BMA economic reserves and mine lives as a result of the increase in coal royalties by the Queensland Government. The near tripling of top end royalties has worsened what was already one of the world’s highest coal royalty regimes, threatening investment and jobs in the state. Our US$5.7 billion Jansen potash project in Canada is tracking to plan and we are working to bring first production forward to 2026. Also during the year, we merged our petroleum business with Woodside, completed the sales of BMC and Cerrejón, and decided to retain New South Wales Energy Coal until the cessation of mining in 2030 subject to relevant approvals. We also unified our corporate structure, and added to our global options in copper and nickel. Broader market volatility continues and we expect the lag effect of inflationary pressures to continue through the 2023 financial year, along with labour market tightness and supply chain constraints. Over the year ahead, China is expected to contribute positively to growth as stimulus policies take effect, however, the continuing conflict in the Ukraine, the unfolding energy crisis in Europe and policy tightening globally is expected to result in an overall slowing of global growth. Our strong focus on safety, operational reliability, cost control and social value will help us navigate these challenges and continue to deliver for all of our stakeholders.” Operational performance Production and guidance are summarised below. Note: All guidance is subject to further potential impacts from COVID-19 during the 2023 financial year. FY22 Jun Q22 Jun Q22 Jun vs vs vs FY23 FY23e Productioni FY22 Q22 FY21 Jun Q21 Mar Q22 guidance vs FY22 Copper (kt) 1,573.5 461.8 (4%) 15% 25% 1,635 – 1,825 4% – 16% Escondida (kt) 1,004.0 289.3 (6%) 17% 28% 1,080 – 1,180 8% – 18% Pampa Norte (kt) 281.2 77.2 29% 11% 13% 240 – 290 (15%) – 3% Olympic Dam (kt) 138.4 55.7 (33%) 10% 43% 195 – 215 41% – 55% Antamina (kt) 149.9 39.6 4% 10% 10% 120 – 140 (20%) – (7%) Iron ore (Mt) 253.2 64.2 0% (2%) 8% 249 – 260 (2%) – 3% WAIO (Mt) 249.2 63.2 (1%) (2%) 8% 246 – 256 (1%) – 3% WAIO (100% basis) (Mt) 282.8 71.7 0% (2%) 7% 278 – 290 (2%) – 3% Samarco (Mt) 4.1 1.0 110% (2%) 1% 3–4 (26%) – (2%) Metallurgical coal - BMA (Mt) 29.1 8.2 (9%) (12%) 3% 29 – 32 0% – 10% Metallurgical coal - BMA (100% basis) (Mt) 58.3 16.4 (9%) (12%) 3% 58 – 64 0% – 10% Energy coal – NSWEC (Mt) 13.7 3.9 (4%) (13%) 52% 13 – 15 (5%) – 9% Nickel (kt) 76.8 18.8 (14%) (16%) 1% 80 – 90 4% – 17% i Excludes BMC and Petroleum production. The divestment of BHP's 80 per cent interest in BMC to Stanmore Resources Limited and the merger of BHP's oil and gas portfolio with Woodside Energy Group Limited were completed on 3 May 2022 and 1 June 2022 respectively. Production data for these assets are below in the production and sales report. BHP Operational Review for the year ended 30 June 2022 2 Summary of disclosures BHP expects its financial results for the second half of the 2022 financial year to reflect certain items as summarised in the table below. The table does not provide a comprehensive list of all items impacting the period. The financial statements are the subject of ongoing work that will not be finalised until the release of BHP’s financial results on 16 August 2022. Accordingly the information in the table below contains preliminary information that is subject to update and finalisation. H2 FY22 impact Description US$Mi Classificationii Unit costs for WAIO, Escondida and NSWEC are expected to be in line with full year - Operating costs guidance (at guidance exchange rates), with NSWEC tracking towards the bottom end of revised guidance Note: weaker Australian dollar and Chilean peso than guidance rates in the periodiii Unit costs for BMA are expected to be marginally above full year revised guidance for - ↑ Operating costs Queensland Coal, due to the impact of the divestment of BMC, and higher diesel and electricity prices (at guidance exchange rates) Note: weaker Australian dollar than guidance rates in the periodiii Impairment charge related to an increase in closure and rehabilitation provision at Cerro 400 – 450 ↑ Operating costs Colorado due to additional work required to re-profile waste dumps for closure and an increase in scope for the closure activities Exploration expense (minerals exploration programs) 119 Exploration expense The Group’s adjusted effective tax rate for the full year is expected to be within the guidance - Taxation expense range of 30 to 35 per cent Dividends paid to non-controlling interests 1,250 – 1,300 ↑ Financing cash outflow Gain on sale of BHP’s 80 per cent interest in BMC (after tax) 825 – 875 ↑ Exceptional item gain Net proceeds received from the sale of BHP’s 80 per cent interest in BMC iv ~1,250 ↑ Investing cash inflow Transaction costs related to Unification (after tax) ~430 ↑ Exceptional item charge v Financial impact on BHP Brasil of the Samarco dam failure Refer footnote Exceptional item Discontinued operations Gain on merger of BHP’s oil and gas portfolio (after tax) 8,000 – 8,300 ↑ Exceptional item gain Net cash payment to Woodside at completion of the merger and cash left in the BHP ~1,100 ↑ Investing cash outflow Petroleum bank accounts to fund ongoing operationsvi i Numbers are not tax effected, unless otherwise noted. ii There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant, unless otherwise noted. iii Average exchange rates for FY22 of AUD/USD 0.73 (guidance rate AUD/USD 0.78) and USD/CLP 811 (guidance rate USD/CLP 727). iv Net of cash remaining in BMC on completion of US$63 million. v Financial impact is the subject of ongoing work and is not yet finalised. See corporate update section for further information on Samarco. vi As part of completion, BHP made a net cash payment of US$0.7 billion to Woodside. The net payment to Woodside is subject to a customary post-completion review which may result in an adjustment to the amount paid. In addition, US$0.4 billion in cash was left in the BHP Petroleum bank accounts. Major development projects In June 2022, we completed the US$2.97 billion Jansen mine shafts project. At the end of the 2022 financial year, BHP had one major project under development, the US$5.7 billion Jansen Stage 1 project, which is tracking to plan. BHP Operational Review for the year ended 30 June 2022 3 Average realised prices The average realised prices achieved for our major commodities are summarised below. FY22 Jun H22 Jun H22 vs vs vs Average realised pricesi Jun H22 Dec H21 FY22 FY21 FY21 Jun H21 Dec H21 Copper (US$/lb) 4.02 4.31 4.16 3.81 9% (7%) (7%) Iron ore (US$/wmt, FOB) 112.65 113.54 113.10 130.56 (13%) (29%) (1%) Metallurgical coal (US$/t) 423.82 259.71 347.10 106.64 225% 269% 63% Hard coking coal (US$/t)ii 437.60 278.60 366.82 112.72 225% 269% 57% ii Weak coking coal (US$/t) 382.56 218.65 296.51 89.62 231% 266% 75% iii Thermal coal (US$/t) 302.60 137.68 216.78 58.42 271% 327% 120% Nickel metal (US$/t) 27,399 19,651 23,275 16,250 43% 56% 39% i Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments. ii Hard coking coal (HCC) refers generally to those metallurgical coals with a Coke Strength after Reaction (CSR) of 35 and above, which includes coals across the spectrum from Premium Coking to Semi Hard Coking coals, while weak coking coal (WCC) refers generally to those metallurgical coals with a CSR below 35. iii Includes thermal coal sales from metallurgical coal mines. The large majority of iron ore shipments were linked to index pricing for the month of shipment, with price differentials predominantly a reflection of market fundamentals and product quality. Iron ore sales for the June 2022 half year were based on an average moisture rate of 6.9 per cent. The large majority of metallurgical coal and energy coal exports were linked to index pricing for the month of scheduled shipment or priced on the spot market at fixed or index-linked prices, with price differentials reflecting product quality. The majority of copper cathodes sales were linked to index price for quotation periods one month after month of shipment, and three to four months after month of shipment for copper concentrates sales with price differentials applied for location and treatment costs. At 30 June 2022, the Group had 354 kt of outstanding copper sales that were revalued at a weighted average price of US$3.75 per pound. The final price of these sales will be determined in the 2023 financial year. In addition, 323 kt of copper sales from the 2021 financial year were subject to a finalisation adjustment in the current financial year. The provisional pricing and finalisation adjustments will decrease Underlying EBITDA by US$473 million in the 2022 financial year and are included in the average realised copper price in the above table. Corporate update Portfolio In April 2022, we signed a letter of intent with a consortium led by the Global Maritime forum to assess the development of an iron ore Green Corridor between Australia and East Asia. Green Corridors are specific shipping routes where the economics, infrastructure and logistics of zero or near-zero emission shipping are more feasible and where deployment can be supported by targeted policy and industry action. The new consortium will facilitate a robust public-private dialogue to investigate conditions that need to be in place to mobilise demand and to feasibly scale zero or near-zero- greenhouse gas emission shipping on the corridor. On 3 May 2022, BHP completed the sale of its 80 per cent interest in BMC to Stanmore Resources Limited. Stanmore Resources paid US$1.1 billion cash consideration at completion plus a preliminary completion adjustment of approximately US$200 million for working capital. US$100 million cash remains payable to BHP on 3 November 2022 with potential for an additional amount of up to US$150 million in a price-linked earnout payable to BHP in the 2024 calendar year. The total cash consideration for the transaction could be up to US$1.35 billion plus the final completion adjustment amount. The Group expects to recognise a net gain on sale of between US$825 million and US$875 million post-tax as an exceptional item in the 2022 financial year. On 1 June 2022, the merger of BHP’s oil and gas portfolio with Woodside was completed. BHP paid a fully franked in specie dividend and distributed Woodside shares to eligible BHP shareholders. The implied value of the in specie dividend was approximately US$19.6 billion or US$3.86 per BHP share. The sale of the Woodside shares of ineligible overseas shareholders and BHP shareholders that elected to participate in the sale facility, was completed and the proceeds have been distributed to participating shareholders. As part of completion, BHP made a net cash payment of approximately US$0.7 billion to Woodside. The net payment to Woodside is subject to a customary post- BHP Operational Review for the year ended 30 June 2022 4 completion review which may result in an adjustment to the amount paid. The Group expects to recognise a net gain on the merger of between US$8.0 billion and US$8.3 billion post-tax as an exceptional item in the 2022 financial year5. On 16 June 2022, BHP announced that we will retain New South Wales Energy Coal (NSWEC) in our portfolio, seek the relevant approvals to continue mining beyond its current mining consent that expires in 2026 and proceed with a managed process to cease mining at the asset by the end of the 2030 financial year. A trade sale process for NSWEC was conducted however the process did not result in a viable offer. Assessment of the resource economics, geotechnical profile and future investment requirements determined that continued mining in the near term and moving to closure in 2030 provides the optimal financial outcome when compared to alternate options. Continuation of mining to the end of the 2030 financial year will afford eight years to work with our people, state and federal governments and local communities in the Hunter Valley region on a transition approach that supports long-term community sustainability. Samarco Samarco’s Judicial Reorganisation process is continuing in the Commercial Courts of Belo Horizonte, State of Minas Gerais. The Judicial Reorganisation is a process for Samarco to restructure its financial debts in order to establish a sustainable independent financial position that would allow Samarco to, among other things, continue its operations safely and meet its Renova Foundation obligations. BHP Brasil will continue to support Samarco in this process. The Judicial Reorganisation is not expected to affect Samarco’s obligation or commitment to make full redress for the 2015 Fundão dam failure, and it does not impact Renova Foundation’s ability to undertake remediation and compensation works. Separately, negotiations are also ongoing with State and Federal Prosecutors and other Brazilian public authorities on the review of the Framework Agreement6, seeking a definitive and substantive settlement of Brazilian claims relating to the dam failure. On 8 July 2022, the United Kingdom (UK) Court of Appeal decided to allow the group action in the UK against BHP seeking compensation on behalf of individuals, municipalities, private businesses and indigenous peoples in Brazil to continue in the UK. The judgment overturns the earlier decision of the High Court that dismissed the group action. BHP has sought permission to appeal the judgment to the UK Supreme Court. The judgment is not a decision in relation to the merits of the claims made in the group action. It is concerned with the preliminary question of whether the group action can continue against BHP in the United Kingdom. The impact of this decision and recent legal decisions in Brazil on the Group’s Samarco provision is currently being assessed. We will provide an update to the ongoing potential financial impacts on BHP Brasil of the Samarco dam failure with the release of the financial results on 16 August 2022. Any financial impacts will continue to be treated as an exceptional item. BHP Operational Review for the year ended 30 June 2022 5 Copper Production FY22 Jun Q22 Jun Q22 vs vs vs FY22 Jun Q22 FY21 Jun Q21 Mar Q22 Copper (kt) 1,573.5 461.8 (4%) 15% 25% Zinc (t) 123,200 27,576 (15%) (22%) (16%) Uranium (t) 2,375 776 (27%) 26% (1%) Copper – Total copper production decreased by four per cent to 1,574 kt. Production for the 2023 financial year is expected to be between 1,635 and 1,825 kt. Escondida copper production decreased by six per cent to 1,004 kt primarily due to higher than expected concentrator feed grade decline of four per cent, public road blockades affecting access to site for both workers and supplies, and the impact of a reduced operational workforce from COVID-19. Despite these challenges, Escondida achieved record material mined for the 2022 financial year and near record concentrator throughput of 367 ktpd. Production is expected to increase to between 1,080 and 1,180 kt for the 2023 financial year and reflects an expected increase in concentrator feed grade compared to the 2022 financial year. Medium term guidance of 1.2 Mtpa of copper production on average over the next five years remains unchanged, with production expected to be weighted towards the latter years. Pampa Norte copper production increased by 29 per cent to 281 kt reflecting the ramp up of the Spence Growth Option (SGO), partially offset by the impact of lower cathode production as a result of a 14 per cent decline in Pampa Norte stacking feed grade. Production for the 2023 financial year is expected to be between 240 and 290 kt. This reflects a forecast decline in stacking feed grade at Pampa Norte, the commencement of plant design modifications at SGO and the continued transition towards the planned closure of Cerro Colorado at the end of the 2023 calendar year. Olympic Dam copper production decreased by 33 per cent to 138 kt as a result of the major smelter maintenance campaign (SCM21), which included COVID-19 impacts on the availability of workforce and was subsequently completed in January 2022. Near record production in the June 2022 quarter followed the successful ramp up of the smelter to full capacity in April 2022. Average copper grade of 2.14 per cent was achieved in the 2022 financial year as the majority of material mined is from the Southern Mine Area. Production for the 2023 financial year is expected to increase to between 195 and 215 kt. Antamina copper production increased by four per cent to 150 kt, reflecting higher copper head grades. Zinc production decreased by 15 per cent to 123 kt reflecting lower zinc head grades. Copper production of between 120 and 140 kt, and zinc production of between 115 and 135 kt is expected for the 2023 financial year. BHP Operational Review for the year ended 30 June 2022 6 Iron Ore Production FY22 Jun Q22 Jun Q22 vs vs vs FY22 Jun Q22 FY21 Jun Q21 Mar Q22 Iron ore production (kt) 253,247 64,162 0% (2%) 8% Iron ore – Total iron ore production was in line with the prior period at 253 Mt. Production for the 2023 financial year is expected to be between 249 and 260 Mt. WAIO production of 249 Mt (283 Mt on a 100 per cent basis) was in line with the prior period, reflecting continued strong supply chain performance and favourable weather compared to the prior period, offset by the impacts of temporary labour constraints relating to COVID-19, planned track renewal works in the March 2022 quarter and the planned major maintenance on the Jimblebar train load out and car dumper one in the first half. Our preventative maintenance programs continue to underpin the strength of the WAIO supply chain, delivering increased car dumper, reclaimer and ship loader availability year on year and enabling record sales volumes of 284 Mt (100 per cent basis). South Flank ramp up to full production capacity of 80 Mtpa (100 per cent basis) is ahead of schedule with an average rate of 67 Mtpa achieved in the June 2022 quarter contributing to record production from the Mining Area C (MAC) hub and record lump sales. WAIO production for the 2023 financial year is expected to be between 246 and 256 Mt (278 and 290 Mt on a 100 per cent basis) reflecting the tie-in of the port debottlenecking project (PDP1) and the continued ramp up of South Flank. Samarco production of 4.1 Mt (BHP share) reflected the ramp up of production to capacity, following the recommencement of iron ore pellet production at one concentrator in December 2020. Production for the 2023 financial year is expected to be between 3 and 4 Mt (BHP share). Coal Production FY22 Jun Q22 Jun Q22 vs vs vs FY22 Jun Q22 FY21 Jun Q21 Mar Q22 2 Metallurgical coal (kt) 29,142 8,183 (9%) (12%) 3% 3 Energy coal (kt) 13,701 3,919 (4%) (13%) 52% Metallurgical coal – BMA production decreased by nine per cent to 29 Mt (58 Mt on a 100 per cent basis). Significant wet weather impacts across most BMA operations and labour constraints, including COVID-19 related absenteeism which impacted stripping and mine productivity, more than offset record production at the Broadmeadow mine. Following the automation of Daunia’s truck fleet in November 2021, the automation of Goonyella’s pre-strip truck fleet was completed in March 2022 with the Goonyella coal truck fleet expected to be fully autonomous by the end of the December 2022 quarter. Production for the 2023 financial year is expected to be between 29 and 32 Mt (58 and 64 Mt on a 100 per cent basis). A long wall move at Broadmeadow mine is scheduled for the September 2022 quarter. The divestment of our interest in BMC was completed on 3 May 2022 and BMC volumes are no longer included in metallurgical coal volumes. Following the announcement of the change to the Queensland royalty regime from 1 July 2022, we will assess the impact on production, jobs and the communities of Central Queensland. At spot metallurgical coal prices7, the effective pre-tax royalty rate has increased by approximately 7 percentage points to 19 per cent. This further cost pressure will discourage investment, operational growth, job creation and local business spending across the state. The new tax damages Queensland’s reputation as a stable place to invest, and will make it harder for the state to compete against other global jurisdictions in attracting major new investments that would deliver longer term value to communities and the state economy. BHP Operational Review for the year ended 30 June 2022 7 Energy coal – NSWEC production decreased by four per cent to 14 Mt, reflecting lower volumes due to an increased proportion of washed coal to capitalise on higher margins for higher quality coals, COVID-19 related labour constraints which impacted stripping performance and mine productivity, and wet weather. Higher quality coals now make up almost 90 per cent of sales compared to approximately 60 per cent of sales in the prior year. Production for the 2023 financial year is expected to be between 13 and 15 Mt reflecting a continued focus on higher quality coals. Other Nickel production FY22 Jun Q22 Jun Q22 vs vs vs FY22 Jun Q22 FY21 Jun Q21 Mar Q22 Nickel (kt) 76.8 18.8 (14%) (16%) 1% Nickel – Nickel West production decreased by 14 per cent to 77 kt due to the significant impacts of COVID-19 related labour absenteeism and workforce shortages, and unplanned downtime at the oxygen plant leading to a 15 day smelter outage in the June 2022 quarter. Production for the 2023 financial year is expected to be between 80 and 90 kt, weighted to the second half of the year due to planned smelter maintenance in the first half. Potash – Our major potash project under development is tracking to plan. Projects Project and Capital Initial Capacity Progress ownership expenditure production US$M target date Jansen Potash 2,972 CY27 Investment to finish the excavation and lining of 100% complete. This project (Canada) the production and service shafts, and to continue will not be reported in the 100% the installation of essential surface infrastructure projects section of future and utilities. Operational Reviews. Jansen Stage 1 5,723 CY27 Design, engineering and construction of an Approved in August 2021, (Canada) underground potash mine and surface project is 8% complete 100% infrastructure, with capacity to produce 4.35 Mtpa. Minerals exploration Total minerals exploration expenditure for 2022 financial year was US$256 million, of which US$199 million was expensed. Work continues on existing exploration projects, joint ventures and farm-in agreements, as well as leveraging technology to both look deeper in mature exploration jurisdictions and delineate new high potential search spaces globally. Greenfield minerals exploration is being undertaken on advancing copper targets in Chile, Ecuador, Mexico, Peru, Canada, Australia and the south-west United States. Nickel targets are also being advanced in Canada and Australia. We continued to progress our early stage options in future facing commodities throughout the year. Work continued on the farm-in agreement executed in October 2021 for the early-stage Elliott copper project covering 7,200 km 2 in the Northern Territory, Australia, and in April 2022 we agreed to fund a nickel exploration program in Nunavik, Quebec, as part of our strategic alliance with Midland Exploration8. At Oak Dam in South Australia, BHP is continuing next stage resource definition drilling with six drill rigs. BHP Operational Review for the year ended 30 June 2022 8 Variance analysis relates to the relative performance of BHP and/or its operations during the 2022 financial year compared with the 2021 financial year, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis. Numbers presented may not add up precisely to the totals provided due to rounding. Copper equivalent production is based on 2022 financial year average realised prices. The following footnotes apply to this Operational Review: 1 2022 financial year unit cost guidance: Escondida US$1.20-1.40/lb, WAIO US$17.50-18.50/t, Queensland Coal US$85-94/t (which includes BMA of US$88- 96/t; divestment of BMC was completed on 3 May 2022), and NSWEC US$76-81/t; based on exchange rates of AUD/USD 0.78 and USD/CLP 727. 2 BHP completed the sale of BMC on 3 May 2022. The transaction has an effective economic date of 3 May 2022 and volumes have been reported separately in the production and sales report. 3 BHP completed the sale of its 33.3 per cent interest in Cerrejón on 11 January 2022. The transaction has an effective economic date of 31 December 2020 and volumes have been reported separately in the production and sales report. 4 Excludes production from Cerrejón (divestment completed 11 January 2022), BMC (divestment completed 3 May 2022) and Petroleum (merger completed 1 June 2022). 5 The net gain on merger will be included as an exceptional item in profit after taxation from discontinued operations in the financial statements. 6 The Framework Agreement was entered into between Samarco, Vale and BHP Brasil and the relevant Brazilian authorities in March 2016 and established the Renova Foundation to develop and implement environmental and socio-economic programs to remediate and provide compensation for damage caused by the Samarco dam failure. 7 PLV FOB spot price of US$243.50/t as at 13 July 2022. Source: Platts. 8 BHP signed an agreement for a nickel exploration alliance with Midland Exploration in August 2020. The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million barrels of oil per day (MMbpd); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand barrels of oil equivalent per day (Mboe/d); thousand ounces (koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt). In this release, the terms ‘BHP’, the ‘Group’, ‘BHP Group’, ‘we’, ‘us’, ‘our’ and ourselves’ are used to refer to BHP Group Limited and, except where the context otherwise requires, the respective subsidiaries as defined in note 30 ‘Subsidiaries’ in section 3.1 of BHP’s 30 June 2021 Annual Report and Form 20-F. Those terms do not include non-operated assets. Notwithstanding that this release may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise. Our non-operated assets include Antamina and Samarco. BHP Group cautions against undue reliance on any forward-looking statement or guidance in this release, particularly in light of the current economic climate and significant volatility, uncertainty and disruption arising in connection with COVID-19. These forward looking statements are based on information available as at the date of this release and are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this release. BHP Operational Review for the year ended 30 June 2022 9 Sponsor: J.P. Morgan Equities South Africa Proprietary Further information on BHP can be found at: bhp.com Authorised for lodgement by: Stefanie Wilkinson Group Company Secretary Media Relations Investor Relations Email: media.relations@bhp.com Email: investor.relations@bhp.com Australia and Asia Australia and Asia Gabrielle Notley Dinesh Bishop Tel: +61 3 9609 3830 Mobile: +61 411 071 715 Mobile: +61 407 033 909 Europe, Middle East and Africa Europe, Middle East and Africa Neil Burrows James Bell Tel: +44 20 7802 7484 Mobile: +44 7786 661 683 Tel: +44 20 7802 7144 Mobile: +44 7961 636 432 Americas Americas Renata Fernandez Sabrina Goulart Mobile: + 56 9 8229 5357 Mobile: +1 832 781 6698 BHP Group Limited ABN 49 004 028 077 LEI WZE1WSENV6JSZFK0JC28 Registered in Australia Registered Office: Level 18, 171 Collins Street Melbourne Victoria 3000 Australia Tel +61 1300 55 4757 Fax +61 3 9609 3015 BHP Group is headquartered in Australia Follow us on social media BHP Operational Review for the year ended 30 June 2022 10 Production summary Quarter ended Year to date BHP Jun Sep Dec Mar Jun Jun Jun interest 2021 2021 2021 2022 2022 2022 2021 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Copper 1 Copper Payable metal in concentrate (kt) Escondida 2 57.5% 195.6 194.7 196.2 178.2 233.5 802.6 871.7 Pampa Norte 3 100.0% 21.1 26.4 24.2 32.4 28.2 111.2 27.4 Antamina 33.8% 36.1 35.8 38.4 36.1 39.6 149.9 144.0 Total 252.8 256.9 258.8 246.7 301.3 1,063.7 1,043.1 Cathode (kt) Escondida 2 57.5% 51.1 49.0 48.4 48.2 55.8 201.4 196.5 Pampa Norte 3 100% 48.3 41.1 44.1 35.8 49.0 170.0 190.8 Olympic Dam 100% 50.8 29.5 14.2 39.0 55.7 138.4 205.3 Total 150.2 119.6 106.7 123.0 160.5 509.8 592.6 Total copper (kt) 403.0 376.5 365.5 369.7 461.8 1,573.5 1,635.7 Lead Payable metal in concentrate (t) Antamina 33.8% 381 378 277 282 181 1,118 2,532 Total 381 378 277 282 181 1,118 2,532 Zinc Payable metal in concentrate (t) Antamina 33.8% 35,483 33,289 29,603 32,732 27,576 123,200 145,089 Total 35,483 33,289 29,603 32,732 27,576 123,200 145,089 Gold Payable metal in concentrate (troy oz) Escondida 2 57.5% 38,893 41,962 42,937 36,303 45,770 166,972 166,968 Pampa Norte 3 100% 4,728 6,967 5,776 7,929 8,198 28,870 4,728 Olympic Dam (refined gold) 100% 48,478 26,277 37,805 29,355 26,080 119,517 145,998 Total 92,099 75,206 86,518 73,587 80,048 315,359 317,694 Silver Payable metal in concentrate (troy koz) Escondida 2 57.5% 1,234 1,291 1,462 1,270 1,311 5,334 5,759 Pampa Norte 3 100% 214 273 215 261 262 1,011 214 Antamina 33.8% 1,409 1,367 1,308 1,191 1,212 5,078 5,965 Olympic Dam (refined silver) 100% 185 191 258 149 145 743 810 Total 3,042 3,122 3,243 2,871 2,930 12,166 12,748 Uranium Payable metal in concentrate (t) Olympic Dam 100% 614 531 287 781 776 2,375 3,267 Total 614 531 287 781 776 2,375 3,267 Molybdenum Payable metal in concentrate (t) Pampa Norte 3 100% - - - - 71 71 - Antamina 33.8% 111 142 217 190 249 798 863 Total 111 142 217 190 320 869 863 BHP Operational Review for the year ended 30 June 2022 11 Production summary Quarter ended Year to date BHP Jun Sep Dec Mar Jun Jun Jun interest 2021 2021 2021 2022 2022 2022 2021 Iron Ore Iron Ore Production (kt) 4 Newman 85% 14,560 16,461 14,577 11,940 14,063 57,041 63,221 Area C Joint Venture 85% 15,920 18,947 22,911 24,888 27,685 94,431 52,386 Yandi Joint Venture 85% 18,405 11,834 12,261 8,418 6,409 38,922 68,596 Jimblebar 5 85% 15,337 15,009 15,324 13,444 15,005 58,782 67,393 Samarco 50% 1,023 1,048 1,029 994 1,000 4,071 1,938 Total 65,245 63,299 66,102 59,684 64,162 253,247 253,534 Coal Metallurgical coal Production (kt) 6 BHP Mitsubishi Alliance (BMA) 50% 9,253 6,715 6,300 7,944 8,183 29,142 31,884 Total 9,253 6,715 6,300 7,944 8,183 29,142 31,884 Production (kt) 6 BHP Mitsui Coal (BMC) 7 8 80% 2,570 2,135 2,518 2,618 651 7,922 8,741 Total 2,570 2,135 2,518 2,618 651 7,922 8,741 Energy coal Production (kt) NSW Energy Coal 100% 4,492 4,238 2,967 2,577 3,919 13,701 14,326 Total 4,492 4,238 2,967 2,577 3,919 13,701 14,326 Production (kt) Cerrejón 9 33.3% 1,784 2,060 2,176 - - 4,236 4,964 Total 1,784 2,060 2,176 - - 4,236 4,964 Other Nickel Saleable production (kt) Nickel West 100% 22.4 17.8 21.5 18.7 18.8 76.8 89.0 Total 22.4 17.8 21.5 18.7 18.8 76.8 89.0 Cobalt Saleable production (t) Nickel West 100% 241 177 220 125 110 632 988 Total 241 177 220 125 110 632 988 Discontinued operations Petroleum 10 11 Production Crude oil, condensate and NGL (Mboe) 12,205 12,751 12,345 11,367 7,057 43,520 46,042 Natural gas (bcf) 88.6 88.4 80.1 75.9 58.8 303.2 340.6 Total (Mboe) 26,972 27,484 25,695 24,017 16,857 94,053 102,809 1 Metal production is reported on the basis of payable metal. 2 Shown on a 100% basis. BHP interest in saleable production is 57.5%. 3 Includes Cerro Colorado and Spence. 4 Iron ore production is reported on a wet tonnes basis. 5 Shown on a 100% basis. BHP interest in saleable production is 85%. 6 Metallurgical coal production is reported on the basis of saleable product. Production figures may include some thermal coal. 7 Shown on a 100% basis. BHP interest in saleable production is 80%. 8 BHP completed the sale of its 80 per cent interest in BHP Mitsui Coal (BMC) on 3 May 2022. Production reported until 30 April 2022. 9 BHP completed the sale of its 33.3 per cent interest in Cerrejón on 11 January 2022. Production reported until 31 December 2021. 10 The merger of BHP’s oil and gas portfolio with Woodside was completed on 1 June 2022. Production reported until 31 May 2022. 11 LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1,000 Mboe. Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported. BHP Operational Review for the year ended 30 June 2022 12 Production and sales report Quarter ended Year to date Jun Sep Dec Mar Jun Jun Jun 2021 2021 2021 2022 2022 2022 2021 Copper Metals production is payable metal unless otherwise stated. Escondida, Chile 1 Material mined (kt) 104,043 113,874 117,284 107,676 115,409 454,243 380,652 Concentrator throughput (kt) 31,903 33,528 35,787 30,235 34,318 133,868 135,593 Average copper grade - concentrator (%) 0.77% 0.73% 0.71% 0.80% 0.88% 0.78% 0.81% Production ex mill (kt) 202.8 201.2 203.6 191.5 239.5 835.8 900.6 Production Payable copper (kt) 195.6 194.7 196.2 178.2 233.5 802.6 871.7 Copper cathode (EW) (kt) 51.1 49.0 48.4 48.2 55.8 201.4 196.5 - Oxide leach (kt) 14.5 14.8 13.1 12.2 17.5 57.6 63.9 - Sulphide leach (kt) 36.6 34.2 35.3 36.0 38.3 143.8 132.6 Total copper (kt) 246.7 243.7 244.6 226.4 289.3 1,004.0 1,068.2 Payable gold concentrate (troy oz) 38,893 41,962 42,937 36,303 45,770 166,972 166,968 Payable silver concentrate (troy koz) 1,234 1,291 1,462 1,270 1,311 5,334 5,759 Sales Payable copper (kt) 194.1 190.5 200.2 177.0 230.4 798.1 872.4 Copper cathode (EW) (kt) 49.6 46.7 49.7 47.2 58.9 202.5 193.4 Payable gold concentrate (troy oz) 38,893 41,962 42,937 36,303 45,770 166,972 166,968 Payable silver concentrate (troy koz) 1,234 1,291 1,462 1,270 1,311 5,334 5,759 1 Shown on a 100% basis. BHP interest in saleable production is 57.5%. Pampa Norte, Chile Cerro Colorado Material mined (kt) 5,498 5,378 4,782 3,516 3,604 17,280 31,019 Ore stacked (kt) 3,702 3,566 4,029 3,181 4,259 15,035 14,583 Average copper grade - stacked (%) 0.58% 0.60% 0.62% 0.53% 0.55% 0.58% 0.60% Production Copper cathode (EW) (kt) 14.7 13.4 15.3 11.6 14.7 55.0 60.2 Sales Copper cathode (EW) (kt) 15.4 12.1 16.0 10.5 16.2 54.8 59.8 Spence Material mined (kt) 21,262 21,154 24,025 24,040 26,749 95,968 77,202 Ore stacked (kt) 4,609 5,258 5,071 5,055 5,099 20,483 20,155 Average copper grade - stacked (%) 0.72% 0.64% 0.66% 0.67% 0.66% 0.66% 0.81% Concentrator throughput (kt) 4,929 5,786 6,234 6,512 6,311 24,843 8,607 Average copper grade - concentrator (%) 0.63% 0.65% 0.60% 0.65% 0.66% 0.64% 0.59% Production Payable copper (kt) 21.1 26.4 24.2 32.4 28.2 111.2 27.4 Copper cathode (EW) (kt) 33.6 27.7 28.8 24.2 34.3 115.0 130.6 Total copper (kt) 54.7 54.1 53.0 56.6 62.5 226.2 158.0 Payable gold concentrate (troy oz) 4,728 6,967 5,776 7,929 8,198 28,870 4,728 Payable silver concentrate (troy koz) 214 273 215 261 262 1,011 214 Payable molybdenum (t) - - - - 71 71 - Sales Payable copper (kt) 20.8 28.4 24.9 28.1 28.1 109.5 22.6 Copper cathode (EW) (kt) 34.1 27.7 31.2 20.2 35.4 114.5 129.8 Payable gold concentrate (troy oz) 4,728.0 6,967.0 5,776.0 7,929.0 8,198 28,870 4,728 Payable silver concentrate (troy koz) 214.0 273.0 215.0 261.0 262 1,011 214 Payable molybdenum (t) - - - - 25 25 - BHP Operational Review for the year ended 30 June 2022 13 Production and sales report Quarter ended Year to date Jun Sep Dec Mar Jun Jun Jun 2021 2021 2021 2022 2022 2022 2021 Copper (continued) Metals production is payable metal unless otherwise stated. Antamina, Peru Material mined (100%) (kt) 63,393 66,581 58,179 58,118 64,026 246,904 219,642 Concentrator throughput (100%) (kt) 13,466 13,219 13,011 13,135 13,131 52,496 53,402 Average head grades - Copper (%) 0.93% 0.97% 1.00% 0.94% 1.02% 0.98% 0.95% - Zinc (%) 1.24% 1.16% 1.11% 1.13% 1.05% 1.11% 1.25% Production Payable copper (kt) 36.1 35.8 38.4 36.1 39.6 149.9 144.0 Payable zinc (t) 35,483 33,289 29,603 32,732 27,576 123,200 145,089 Payable silver (troy koz) 1,409 1,367 1,308 1,191 1,212 5,078 5,965 Payable lead (t) 381 378 277 282 181 1,118 2,532 Payable molybdenum (t) 111 142 217 190 249 798 863 Sales Payable copper (kt) 37.3 32.7 41.9 32.9 40.7 148.2 143.5 Payable zinc (t) 32,044 32,635 32,513 29,920 30,847 125,915 144,063 Payable silver (troy koz) 1,540 1,103 1,405 1,078 1,230 4,816 5,920 Payable lead (t) 556 232 344 269 363 1,208 2,938 Payable molybdenum (t) 268 86 170 199 205 660 1,204 Olympic Dam, Australia Material mined 1 (kt) 2,143 1,935 1,998 2,424 2,477 8,834 8,704 Ore milled (kt) 2,429 2,024 1,105 2,122 2,436 7,687 9,487 Average copper grade (%) 1.95% 2.03% 2.17% 2.21% 2.15% 2.14% 2.00% Average uranium grade (kg/t) 0.56 0.55 0.55 0.62 0.56 0.57 0.57 Production Copper cathode (ER and EW) (kt) 50.8 29.5 14.2 39.0 55.7 138.4 205.3 Payable uranium (t) 614 531 287 781 776 2,375 3,267 Refined gold (troy oz) 48,478 26,277 37,805 29,355 26,080 119,517 145,998 Refined silver (troy koz) 185 191 258 149 145 743 810 Sales Copper cathode (ER and EW) (kt) 52.7 29.1 17.9 36.3 55.8 139.1 204.4 Payable uranium (t) 1,179 536 541 236 1,031 2,344 3,816 Refined gold (troy oz) 47,300 24,654 38,768 30,935 24,622 118,979 143,596 Refined silver (troy koz) 245 126 290 182 87 685 874 1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface. BHP Operational Review for the year ended 30 June 2022 14 Production and sales report Quarter ended Year to date Jun Sep Dec Mar Jun Jun Jun 2021 2021 2021 2022 2022 2022 2021 Iron Ore Iron ore production and sales are reported on a wet tonnes basis. Western Australia Iron Ore, Australia Production Newman (kt) 14,560 16,461 14,577 11,940 14,063 57,041 63,221 Area C Joint Venture (kt) 15,920 18,947 22,911 24,888 27,685 94,431 52,386 Yandi Joint Venture (kt) 18,405 11,834 12,261 8,418 6,409 38,922 68,596 Jimblebar 1 (kt) 15,337 15,009 15,324 13,444 15,005 58,782 67,393 Total production (kt) 64,222 62,251 65,073 58,690 63,162 249,176 251,596 Total production (100%) (kt) 72,848 70,587 73,852 66,674 71,660 282,773 284,102 Sales Lump (kt) 16,410 17,546 17,827 16,966 20,006 72,345 65,762 Fines (kt) 48,837 45,039 46,809 42,187 44,308 178,343 186,290 Total (kt) 65,247 62,585 64,636 59,153 64,314 250,688 252,052 Total sales (100%) (kt) 73,712 70,815 73,222 67,110 72,796 283,943 283,871 1 Shown on a 100% basis. BHP interest in saleable production is 85%. Samarco, Brazil Production (kt) 1,023 1,048 1,029 994 1,000 4,071 1,938 Sales (kt) 1,052 1,111 950 943 991 3,995 1,698 BHP Operational Review for the year ended 30 June 2022 15 Production and sales report Quarter ended Year to date ...