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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 21 January 2025
ISIN: AU000000BHP4
Operational review for the half year ended 31 December 2024
Strong underlying operational performance, with copper production up 10%
“BHP delivered safe and reliable performance in the first half. Our flagship copper, iron ore and steelmaking coal assets delivered particularly
strong production in the period. Copper volumes rose 10%, with Escondida achieving a 10-year production record, more than offsetting the
impact of a weather-related power outage at Copper SA. WAIO shipped record half-year tonnes through the port, enabled by supply chain
improvements following the completion of major debottlenecking at the port. Steelmaking coal tonnes from the BMA operations were up 14%.
We made further progress on our growth pathways in future facing commodities. In January, we completed the formation of Vicuña Corp. with
Lundin Mining to advance the Filo del Sol and Josemaria projects in Argentina, which we consider to be one of the most significant global
copper discoveries in decades. In Canada, our Jansen Stage 1 potash project is now 63% complete, with first production scheduled for late
2026, and we continue to execute Stage 2 in parallel.
In Brazil, Samarco, BHP Brasil and Vale signed a comprehensive settlement agreement with the Brazilian government and public authorities for
the Samarco Fundão dam failure, reflecting BHP Brasil’s commitment to support the people, communities and environment affected by the
tragedy. Our WA Nickel operations were safely transitioned into a period of temporary suspension, with many employees moving into roles to
support this phase or within other parts of BHP.
We are well positioned to continue strong momentum into the second half with a number of assets now expected to deliver production in the
upper half of their respective ranges, while maintaining tight cost control. BHP is in good shape and we have a clear pathway for growth.”
Mike Henry
BHP Chief Executive Officer
Summary
Operational excellence Guidance
Strong performance, Escondida up 22% Executing to plan
Group copper production increased 10%, driven by a 22% We are on track to deliver production in the upper half of the
increase at Escondida. FY25 guidance range at WAIO, BMA and NSWEC, as is Samarco.
FY25 production guidance at all assets remains unchanged, with the
Strong underlying performance at all other assets, including at
exception of Copper SA, which has been lowered due to the
WAIO, where recent completion of the Port Debottlenecking
Project (PDP1) has unlocked greater throughput, and at BMA impacts from the weather-related power outage.
where production increased 14% (excluding production from the We maintain sector leading cost discipline and remain on track to
now divested Blackwater and Daunia mines). deliver FY25 unit cost guidance across all assets.
Growth Social value
Clear pathways for copper growth Decarbonising our assets and value chain
In January 2025, we completed the formation of Vicuña Corp., a At our 2024 AGM, we received a 92% vote in favour of our second
50/50 joint venture with Lundin Mining to develop the Filo del Sol Climate Transition Action Plan (CTAP). We are taking action to
and Josemaria copper projects. BHP’s total cash completion decarbonise our operated assets and to support decarbonisation in
payment was US$2.0 bn. our value chain, including the opening of the Port Hedland solar and
In November 2024, we outlined our attractive organic copper battery project to provide renewable power to WAIO’s port facility
growth pipeline at our Chilean copper site tour, with low capital and announcing the site preferred for development of Australia’s
intensity options in both concentrator and leaching pathways. largest ironmaking electric smelting furnace (ESF) pilot plant.
Production Quarter performance YTD performance FY25 guidance
Q2 FY25 v Q1 FY25 v Q2 FY24 HY25 v HY24 Previous Current
Copper (kt) 510.7 7% 17% 987.0 10% 1,845 – 2,045 1,845 – 2,045
Escondida (kt) 339.8 12% 33% 644.0 22% 1,180 – 1,300 1,180 – 1,300 Unchanged
Pampa Norte (kt)i 66.2 10% 11% 126.3 (9%) 240 – 270i 240 – 270i Unchanged
Copper South Australia (kt) 71.2 (3%) (13%) 144.6 (6%) 310 – 340 300 – 325 Lowered
Antamina (kt) 30.5 (16%) (22%) 66.8 (7%) 115 – 135 115 – 135 Unchanged
Carajás (kt) 3.0 30% 67% 5.3 77% - - -
Iron ore (Mt) 66.2 2% 1% 130.9 1% 255 – 265.5 255 – 265.5
WAIO (Mt) 64.8 2% 0% 128.1 1% 250 – 260 250 – 260 Upper half
WAIO (100% basis) (Mt) 73.1 2% 1% 144.7 2% 282 – 294 282 – 294 Upper half
Samarco (Mt) 1.5 14% 13% 2.8 9% 5 – 5.5 5 – 5.5 Upper half
Steelmaking coal – BMA (Mt)ii 4.4 (2%) (23%) 8.9 (21%) 16.5 – 19 16.5 – 19
BMA (100% basis) (Mt)ii 8.9 (2%) (23%) 17.9 (21%) 33 – 38 33 – 38 Upper half
Energy coal – NSWEC (Mt) 3.7 1% (4%) 7.4 (1%) 13 – 15 13 – 15 Upper half
Nickel – Western Australia Nickel (kt)iii 8.0 (59%) (59%) 27.6 (31%) - - -
i HY24 includes 11 kt from Cerro Colorado which entered temporary care and maintenance in December 2023. Excluding these volumes, HY25 production
decreased 1%. Production guidance for FY25 is for Spence only. Refer to copper and the production and sales report for further information.
ii HY24 production includes 3.5 Mt (6.9 Mt on a 100% basis) from the Blackwater and Daunia mines which were divested on 2 April 2024. Excluding these
volumes, HY25 production increased 14%. Refer to steelmaking coal and the production and sales report for further information.
iii WA Nickel ramped down and entered temporary suspension in December 2024. Refer to nickel and the production and sales report for further information.
BHP | Operational review for the half year ended 31 December 2024
Summary of disclosures
BHP expects its financial results for the first half of FY25 (HY25) to reflect certain items 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 the financial results on 18 February 2025. Accordingly, the
information in the table below contains preliminary information that is subject to update and finalisation.
HY25 impacti
Description (US$M) Classificationii
Unit costs (at guidance FX)
At HY25, unit costs at Escondida, Spence and WAIO are expected to be within their respective guidance
ranges. Unit costs at Copper SA and BMA are expected to be higher than their respective guidance ranges
predominantly due to the weather-related power outage, and the longwall move and maintenance activity
in HY25 respectively - Operating costs
For FY25, unit cost guidance for all assets remains unchanged, with Copper SA now expected to be in the
upper half of its range - Operating costs
Average realised exchange rates for HY25 of AUD/USD 0.66 (guidance rate AUD/USD 0.66) and
USD/CLP 947 (guidance rate USD/CLP 842) -
Income statement
Impact of the weather-related power outage on Copper SA ~150 ↓ EBITDA
Negative EBITDA for WA Nickel ~300 ↓ EBITDA
The Group’s adjusted effective tax rate for HY25 is expected to be within the guidance range of 33 – 38% - Taxation expense
Cash flow statement
Working capital movements 150 – 250 ↓ Operating cash flow
Net cash tax paid 3,400 – 3,500 ↓ Operating cash flow
Dividends received from equity-accounted investments ~230 ↑ Operating cash flow
Impact of BHP Brasil’s obligations relating to the Samarco dam failure 637 ↓ Investing cash flow
Final consideration from the divestment of BMC completed in FY22 150 ↑ Investing cash flow
Final consideration in relation to the sale of a 15% interest in Western Ridge at WAIO in FY22 134 ↑ Investing cash flow
Dividends paid to non-controlling interests ~1,100 ↓ Financing cash flow
Payment of the H2 FY24 dividend ~3,900 ↓ Financing cash flow
Balance sheet
The Group’s net debt balance as at 31 December 2024 is expected to be between US$11.5 and US$12.5 bn.
Following the execution of the final Samarco Settlement Agreement, the Group’s balance sheet will be
impacted by the associated cash payments. See iron ore section for further information on Samarco.
For FY25, the Group’s net debt balance is expected to increase to around the top end of the net debt target
range of US$5 to US$15 bn following completion of the Vicuña transaction and payment of the H2 Samarco
settlement obligations - Net debt
Exceptional items
Financial impact of the Samarco dam failure Refer footnoteiii Exceptional item
Costs associated with WA Nickel transitioning into temporary suspension 300 – 350 Exceptional item
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 Financial impact is the subject of ongoing work and is not yet finalised. See iron ore section for further information on Samarco operations.
Further information in Appendix 1
Detailed production and sales information for all operations in Appendix 2
2
BHP | Operational review for the half year ended 31 December 2024
Segment and asset performance | FY25 YTD v FY24 YTD
Copper
Production Total copper production increased 10% to 987 kt. Copper production guidance for FY25
remains unchanged at between 1,845 and 2,045 kt.
987 kt 10%
Escondida 644 kt 22% (100% basis)
HY24 894 kt
Escondida achieved a 10-year production record in HY25, primarily due to higher
FY25e 1,845 – 2,045 kt
concentrator feed grade of 1.03% (HY24: 0.81%) and higher recoveries as mining progressed
into areas of higher-grade ore as planned. This was partially offset by planned lower cathode
production, as the integration of the Full SaL project continued. The project remains on track
Average realised price
for first production later in FY25.
US$3.99/lb 9% Production guidance for FY25 remains unchanged at between 1,180 and 1,300 kt.
HY24 US$3.66/lb Concentrator feed grade for FY25 is expected to remain above 0.90%.
Pampa Norte 126 kt 9%
Pampa Norte consists of Spence and Cerro Colorado. Cerro Colorado remains in temporary
care and maintenance having contributed 11 kt in HY24.
Spence production decreased 1% in line with lower cathode production. Concentrator feed
grade was in line with the prior period and recoveries continue to improve.
Production guidance for FY25 for Spence remains unchanged at between 240 and 270 kt.
Copper South Australia 145 kt 6%
Strong underlying performance in Q1 was followed by a two-week weather-related power
outage due to a significant storm at the beginning of Q2. The integrity of all major
infrastructure was maintained at Olympic Dam during the outage. Ramp up after the outage
was achieved safely over the subsequent two weeks, and since then performance has been
strong with 30 kt of copper production achieved across Copper SA in December.
Carrapateena continues to perform well, with higher productivity from the sub-level cave
enabled by Crusher 2. Production was lower at Prominent Hill due to the impacts of the minor
pit geotechnical instability and ventilation constraints in Q1, which was partially offset by
inventory drawdowns.
Production guidance for FY25 has been revised down to between 300 and 325 kt as a result
of the impacts from the weather-related power outage.
Other copper
At Antamina, copper production decreased 7% to 67 kt reflecting planned lower
concentrator throughput and a slight decline in ore grade. Zinc production was 39% lower at
42 kt, as a result of planned lower feed grades and throughput.
For FY25, at Antamina, copper production guidance of between 115 and 135 kt and zinc
production guidance of between 90 and 110 kt remain unchanged.
Carajás produced 5.3 kt of copper and 4.0 troy koz of gold.
3
BHP | Operational review for the half year ended 31 December 2024
Iron ore
Production Iron ore production increased 1% to 131 Mt. Production guidance for FY25 remains
unchanged at between 255 and 265.5 Mt.
131 Mt 1%
WAIO 128 Mt 1% | 145 Mt (100% basis)
HY24 129 Mt
Production increased as a result of continued strong supply chain performance with record
FY25e 255 – 265.5 Mt
volumes delivered from the Central Pilbara hub (South Flank and Mining Area C) following
the completion of the ramp up of South Flank in FY24 and a 9% increase in productive
movement across the asset. In addition, PDP1 which was delivered in CY24, has unlocked
Average realised price
improved car dumper cycle times and ship loader performance. This was partially offset by
US$81.11/wmt 22% the planned increase in tie-in activity of the multi-year Rail Technology Program (RTP1) and
wet weather in December.
HY24 US$103.70/wmt
Production guidance for FY25 remains unchanged at between 250 and 260 Mt (282 and
294 Mt on a 100% basis), with production now expected to be in the upper half of the range.
Samarco 2.8 Mt 9% | 5.5 Mt (100% basis)
Production increased in line with the resumption of latent pelletising plant capacity and
restart of the second concentrator in December, ahead of schedule. This will increase
production capacity to ~16 Mtpa of pellets (100% basis) once fully ramped up, which is
expected by early FY26. Production guidance for FY25 remains unchanged at between 5 and
5.5 Mt, with production now expected to be in the upper half of the range.
On 25 October 2024, BHP announced an agreement between the Federal Government of
Brazil, the State of Minas Gerais, the State of Espírito Santo, the public prosecutors and
public defenders (Public Authorities) and Samarco, BHP Brasil and Vale (Agreement). The
Agreement delivers a full and final settlement of the Framework Agreement obligations, the
Federal Public Prosecution Office civil claim and other claims by the Public Authorities
relating to the dam failure1. The Agreement was ratified by the Supreme Court of Brazil in
Brasilia on 6 November 2024.
The Agreement creates separate ‘Obligation to Pay’ and ‘Obligations to Perform’ for BHP
Brasil. As announced on 25 October 2024, the cash impact of the Obligation to Pay was
expected to be ~R$11.0 bn in FY25, ~R$7.0 bn in FY26 and ~R$5.0 bn in FY27 (100% basis).
The Obligations to Perform were expected to be ~R$6.6 bn in FY25, ~R$14.7 bn in FY26 and
~R$3.1 bn in FY27 (100% basis)2. The cash impact of the obligations relating to the Samarco
dam failure was US$637 m in HY253. The HY25 financial impacts associated with the
Agreement are the subject of ongoing work that will not be finalised until the release of the
financial results on 18 February 2025.
Coal
Steelmaking coal
Production BMA 8.9 Mt 21% | 17.9 Mt (100% basis)
8.9 Mt 21% Production increased 14% (excluding 3.5 Mt in HY24 from the now divested Blackwater and
Daunia mines) underpinned by improved strip ratios and increased prime stripping as a result
HY24 11.3 Mt
of an uplift in truck productivity. This was partially offset by slower production rates at
FY25e 16.5 – 19 Mt Broadmeadow following the longwall move due to geotechnical characteristics as well as the
planned increase in raw coal inventory to improve the stability of the value chain.
Production guidance for FY25 remains unchanged at between 16.5 and 19 Mt (33 and 38 Mt
Average realised price
on a 100% basis), with production now expected to be in the upper half of the range. We
US$206.37/t 23% remain focused on restoring value chain stability, in particular building raw coal inventory,
which will continue into CY26.
HY24 US$266.43/t
1 Under the final settlement agreement, Samarco is the primary obligor for the settlement obligations and BHP Brasil and Vale are each secondary obligors of
any obligation that Samarco cannot fund or perform in proportion to their shareholding at the time of the dam failure, which is 50% each.
2 All financial obligations are presented on a real, undiscounted basis and will accrue inflation at IPCA inflation rate. Payments will be made in Brazilian Reais.
The FY25 scheduled Obligation to Pay payment will include CY24 and CY25 instalments.
3 Calculated based on actual transactional (historical) exchange rates.
4
BHP | Operational review for the half year ended 31 December 2024
Energy coal
Production NSWEC 7.4 Mt 1%
7.4 Mt 1% Production was broadly in line despite a higher proportion of washed coal. Inventory was
drawn down to offset the impacts of reduced truck availability and unfavourable weather
HY24 7.5 Mt
conditions.
FY25e 13 – 15 Mt
Production guidance for FY25 remains unchanged at between 13 and 15 Mt, with production
now expected to be in the upper half of the range.
Average realised price We still expect an outcome from the NSW Government in Q3 FY25 regarding the
modification to extend the mining consent to 30 June 2030.
US$124.42/t 1%
HY24 US$123.29/t
Group & Unallocated
Nickel
Production Western Australia Nickel 28 kt 31%
28 kt 31% Production decreased significantly as expected, as we successfully transitioned the Nickel
West supply chain (and West Musgrave project) into temporary suspension in line with
HY24 40 kt
schedule. Production outcomes benefited from the drawdown of inventory to realise
additional value.
Average realised price We expect costs to be elevated in HY25, as a result of operational and ramp down activities
combined with the drawdown of inventory as the operations transitioned to temporary
US$16,386/t 12% suspension.
HY24 US$18,602/t We have redeployed over 800 employees, with the majority moving to roles across the
Australian operations. BHP intends to review the decision to temporarily suspend Western
Australia Nickel by February 2027.
No production guidance has been provided for FY25.
Quarterly performance | Q2 FY25 v Q1 FY25
Copper Iron ore
511 kt 7% Higher production at Escondida and 66 Mt 2% Higher production at WAIO as a result of
Spence due to higher grades and mine strong supply chain performance,
Q1 FY25 476 kt sequencing, partially offset by lower Q1 FY25 65 Mt partially offset by significant wet
volumes at Copper SA due to a weather.
weather-related power outage
impacting Olympic Dam.
Steelmaking coal Energy coal
4.4 Mt 2% Lower production due to significant 3.7 Mt 1% Higher production due to higher wash
wet weather and the longwall move at plant feed, partially offset by lower yield.
Q1 FY25 4.5 Mt Broadmeadow, partially offset by Q1 FY25 3.7 Mt
inventory drawdown.
Nickel
8.0 kt 59% Inventory was drawn down as
operations transitioned into temporary
Q1 FY25 19.6 kt suspension as planned.
5
BHP | Operational review for the half year ended 31 December 2024
Appendix 1
Average realised pricesi
Quarter performance YTD performance
Q2 FY25 v Q1 FY25 v Q2 FY24 HY25 v HY24
Copper (US$/lb)ii, iii, iv 3.73 (12%) 1% 3.99 9%
v
Iron ore (US$/wmt, FOB) 82.11 3% (25%) 81.11 (22%)
Steelmaking coal (US$/t)vi, vii 198.65 (8%) (32%) 206.37 (23%)
Thermal coal (US$/t)viii 124.52 0% 3% 124.42 1%
Nickel metal (US$/t)ix 16,842 3% 0% 16,386 (12%)
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 The large 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.
iii At 31 December 2024, the Group had 427 kt of outstanding copper sales that were revalued at a weighted average price of US$3.95/lb. The final price of
these sales will be determined over the remainder of FY25. In addition, 430 kt of copper sales from FY24 were subject to a finalisation adjustment in the
current period. The displayed prices include the impact of these provisional pricing and finalisation adjustments.
iv Sales from Carrapateena and Prominent Hill acquired through the purchase of OZL are included since Q4 FY24 period.
v The large majority of iron ore shipments were linked to index pricing for the month of shipment, with price differentials predominantly a reflection of
market fundamentals and product quality. Iron ore sales for HY25 were based on an average moisture rate of 7.0% (HY24: 6.7%).
vi The large majority of steelmaking coal and energy coal exports were linked to index pricing for the month of scheduled shipment or priced on the spot
market at fixed or index-linked prices, with price differentials reflecting product quality.
vii From FY25, steelmaking coal refers to hard coking coal which is generally those steelmaking coals with a Coke Strength after Reaction (CSR) of 35 and
above. Comparative periods include impacts from weak coking coal, which refers generally to those steelmaking coals with a CSR below 35, which were
sold by Blackwater and Daunia mines, divested on 2 April 2024.
viii Export sales only. Includes thermal coal sales from steelmaking coal mines.
ix Relates to refined nickel metal only, excludes intermediate products and nickel sulphate.
Current year unit cost guidance
FY25 guidancei
Unit cost Current
Escondida (US$/lb) 1.30 – 1.60 Unchanged
Spence (US$/lb) 2.00 – 2.30 Unchanged
ii
Copper SA (US$/lb) 1.30 – 1.80 Upper half
WAIO (US$/t) 18.00 – 19.50 Unchanged
BMA (US$/t) 112 – 124 Unchanged
i FY25 unit cost guidance is based on exchange rates of AUD/USD 0.66 and USD/CLP 842.
ii Calculated using the following assumptions for by-products: gold US$2,000/oz, and uranium US$80/lb.
Medium term guidancei
Production Unit cost
guidance guidanceii
Escondidaiii 900 – 1,000 ktpa US$1.50 – 1.80/lb
Spence ~250 ktpa US$2.05 – 2.35/lb
WAIO (100% basis) >305 Mtpa 
