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20 January 2026
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
Operational review for the half year ended 31 December 2025
Strong operational performance and increased copper production guidance capitalising on strong prices
“BHP delivered another half of very strong performance with operational records at our copper and iron ore assets. This was achieved safely and in a positive
commodity price environment, with copper prices up 32% and iron ore prices 4% higher year on year.
We have increased FY26 group copper production guidance off the back of stronger delivery across our assets. Our flagship copper operation, Escondida, achieved
record concentrator throughput and we have increased the FY26 production guidance range. Antamina has also lifted its production guidance, and Spence and
Copper SA are tracking to plan, with Copper SA achieving record refined gold output.
In iron ore, WAIO achieved record first half production and shipments, positioning us well ahead of the typically wet third quarter. Volumes from Samarco rose as a
result of strong operational performance at the second concentrator following its restart at the end of H1 FY25. We also announced a transaction with Global
Infrastructure Partners involving WAIO’s inland power network which, once completed, will see us realise proceeds of ~US$2 bn while retaining ownership and
operational control in an innovative and value accretive transaction.
Steelmaking coal production increased, supported by a five-year high stripping performance at BMA, and energy coal was up 10%.
The Jansen potash project in Canada is on track to begin production in mid-2027. Jansen will be a long life, low cost and scalable asset that will add a new, future
facing commodity to BHP’s portfolio, which we expect will generate value for shareholders over many decades. We have separately provided an updated cost
estimate for Jansen Stage 1 today.
China’s commodity demand remains resilient, supported by targeted policy measures and solid exports. Momentum moderated in H2 CY25, notably in construction,
manufacturing and infrastructure investments. India is emerging as a key engine of demand, with strong domestic activity sustaining steel and rising copper needs.
Forecast global growth in 2026 is around 3%, creating a positive backdrop for commodity demand.
BHP enters the second half of FY26 with strong operating momentum. We’re investing for the decade ahead, with a significant copper growth pipeline and a pathway
to ~2 Mt of attributable copper production in the 2030s.”
Mike Henry,
BHP Chief Executive Officer
Summary
Operational excellence Copper growth
Strong performance. Guidance upgrades Capitalising on stronger prices
At Escondida, we achieved record concentrator throughput, while Copper We have increased our FY26 copper production guidance, which enables us to
SA delivered record material mined. WAIO achieved record H1 production further capitalise on record copper prices. The strong copper price is being
and shipments. Production at BMA increased 2%, while NSWEC production driven by healthy demand and by supply disruptions at a number of
increased 10%. competitors.
FY26 production guidance has increased for Group copper, Escondida and We are also advancing our copper growth options. In December, Vicuña
Antamina. NSWEC and Samarco are also now guiding to the upper half of submitted its application for the Incentive Regime for Large Investments (RIGI)
their ranges, while BMA is now guiding to the lower half due to ongoing in Argentina. Vicuña remains on track to complete its integrated technical
geotechnical challenges at Broadmeadow. FY26 unit cost guidance remains report in Q1 CY26. In Chile, the Environmental Impact Declaration (DIA) permit
unchanged for all assets, with Escondida now guiding to the bottom end for the Escondida New Concentrator, the centre piece of the growth program,
and BMA guiding to the upper half of their respective ranges. remains on track to be submitted in H2 FY26.
Disciplined capital management Social value
Extracting greater returns from our assets Progressing decarbonisation in the Pilbara
In December, BHP entered into a US$2 bn infrastructure agreement with In November, two battery-electric haul trucks arrived at BHP’s Jimblebar iron
Global Infrastructure Partners involving WAIO’s power consumption. This ore mine in the Pilbara, marking the start of on-site testing of Caterpillar’s
innovative arrangement strengthens our balance sheet flexibility, supports battery-electric technology. Australia’s first purpose-built battery-electric
long-term value creation and enhances BHP’s shareholder value. heavy haulage locomotives also arrived in WA for trials on the WAIO rail
network.
Production Quarter performance YTD performance FY26 guidance
Q2 FY26 v Q1 FY26 v Q2 FY25 HY26 v HY25 Previous Current Change
Copper (kt) 490.5 (1%) (4%) 984.1 0% 1,800 – 2,000 1,900 – 2,000 Increased
Escondida (kt) 317.2 (4%) (7%) 646.1 0% 1,150 – 1,250 1,200 – 1,275 Increased
Pampa Norte (Spence) (kt) 57.7 3% (13%) 113.5 (10%) 230 – 250 230 – 250 –
Copper South Australia (kt) 75.1 3% 5% 147.7 2% 310 – 340 310 – 340 –
Antamina (kt) 38.2 13% 25% 72.1 8% 120 – 140 140 – 150 Increased
Carajás (kt) 2.3 (2%) (22%) 4.7 (12%) – – –
Iron ore (Mt) 69.7 9% 5% 133.8 2% 258 – 269 258 – 269 –
WAIO (Mt) 67.8 9% 5% 129.8 1% 251 – 262 251 – 262 –
WAIO (100% basis) (Mt) 76.3 9% 4% 146.6 1% 284 – 296 284 – 296 –
Samarco (Mt) 1.9 (6%) 34% 4.0 48% 7 – 7.5 7 – 7.5 Upper half
Steelmaking coal – BMA (Mt)ii 4.3 (12%) (3%) 9.2 2% 18 – 20 18 – 20
BMA (100% basis) (Mt)ii 8.6 (12%) (3%) 18.3 2% 36 – 40 36 – 40 Lower half
Energy coal – NSWEC (Mt) 4.6 31% 25% 8.1 10% 14 – 16 14 – 16 Upper half
BHP | Operational review for the half year ended 31 December 2025
Summary of disclosures
BHP expects its financial results for the first half of FY26 (HY26) 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 17 February 2026. Accordingly, the information in the table below contains preliminary
information that is subject to update and finalisation.
HY26 impacti
Description (US$M) Classificationii
Unit costs (at guidance FX)
At HY26, unit costs at Escondida and Spence are expected to be at the bottom end of their respective guidance ranges. Unit
costs at Copper SA and WAIO are expected to be within their respective guidance ranges. Unit costs at BMA are expected to
be in the upper half of its guidance range due to higher planned major maintenance in the first half. - Operating costs
For FY26, unit cost guidance remains unchanged for all assets, with unit costs at Escondida now expected to be at the
bottom end of its guidance range, while BMA is expected to be in the upper half of its unit cost range – refer to page 6. - Operating costs
Average realised exchange rates for HY26 of AUD/USD 0.66 (guidance rate AUD/USD 0.65) and
USD/CLP 947 (guidance rate USD/CLP 940) -
Income statement
Negative EBITDA for WA Nickel ~100 EBITDA
Negative EBITDA for Potash ~150 EBITDA
The Group’s adjusted effective tax rate for HY26 is expected to be within the FY26 guidance range of 36 – 40% - Taxation expense
Cash flow statement
Increase in working capital (lower operating cash flow) 2,300 – 2,400 Operating cash flow
Net cash tax paid 3,600 – 3,700 Operating cash flow
Dividends received from equity-accounted investments ~350 Operating cash flow
Capital and exploration expenditure ~5,300 Investing cash flow
Cash outflow of BHP Brasil’s obligations relating to the Samarco dam failure ~1,100 Investing cash flow
Proceeds received from sale of assets 100 – 200 Investing cash flow
Payment of the H2 FY25 dividend ~3,100 Financing cash flow
Dividends paid to non-controlling interests ~1,000 Financing cash flow
Balance sheet
The Group’s net debt balance as at 31 December 2025 is expected to be between US$14 and US$15 bn. - Net debt
Exceptional items
Financial impact of the Samarco dam failure Refer footnoteiii Exceptional item
i Amounts 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 2025
Segment and asset performance | FY26 YTD v FY25 YTD
Copper
Production Total copper production was broadly in line at 984 kt. Copper production guidance for FY26 has increased
to between 1,900 and 2,000 kt (from between 1,800 and 2,000 kt previously).
984 kt 0%
Escondida 646 kt 0% (100% basis)
HY25 987 kt
Strong operational performance, with record concentrator throughput and improved recoveries driven by
FY26e 1,900 – 2,000 kt
operational enhancements, including the introduction of new reagents. This was partially offset by planned
lower concentrator feed grade of 0.93% (H1 FY25: 1.03%).
Average realised price Production guidance for FY26 has been increased to between 1,200 and 1,275 kt (from between 1,150 and
US$5.28/lb 32% 1,250 kt previously) and is expected to be weighted to the first half, in line with higher concentrator feed
grade. Concentrator feed grade is now expected to be between 0.85 and 0.90% for the full year (from
HY25 US$3.99/lb ~0.85% previously). We are reviewing FY27 production and expect that it will be higher than the existing
medium term production guidance (of between 900 and 1,000 kt).
We continue to make progress on the optimised Escondida Growth Program. The DIA permit for the
Escondida New Concentrator remains on track to be submitted in H2 FY26.
Pampa Norte (Spence) 114 kt 10%
Spence production decreased in line with planned lower cathode production as a result of a decline in
stacked feed grade through the leaching circuit, driven by ore mineralogy as we transition into the deeper
hypogene mineral deposits of the orebody. This was partially offset by improved leaching performance
through optimising reagent usage.
We continue to test the implementation of BHP's Simple Approach to Leaching 2 (SaL2) technology at the
operation, to further utilise latent capacity in the cathode infrastructure.
Production guidance for FY26 remains unchanged at between 230 and 250 kt.
Copper South Australia 148 kt 2%
Production increased as a result of solid operational performance including record material mined (and the
weather-related power outage in the prior period). Improved performance included an increase in the
transfer of ore to surface at Carrapateena which was offset by planned lower grades of 1.19% (H1 FY25:
1.41%).
Production guidance for FY26 remains unchanged at between 310 and 340 kt, weighted to the second half
as planned.
By-product production was also strong, including record refined gold production.
Other copper
At Antamina, copper production increased 8% to 72 kt as a result of planned higher feed grades and
improved safety and operational performance. Zinc production was 49% higher at 63 kt, as a result of
planned higher feed grades. Copper production guidance for FY26 has been increased to between 140 and
150 kt (from between 120 and 140 kt previously), while zinc production guidance for FY26 remains
unchanged at between 90 and 110 kt.
Carajás produced 4.7 kt of copper and 3.8 troy koz of gold. The divestment of Carajás is expected to close in
Q1 CY26, subject to the satisfaction of customary closing conditions (including regulatory approvals).
3
BHP | Operational review for the half year ended 31 December 2025
Iron ore
Production Iron ore production increased 2% to 134 Mt. Production guidance for FY26 remains unchanged at between
258 and 269 Mt.
134 Mt 2%
WAIO 130 Mt 1% | 147 Mt (100% basis)
HY25 131 Mt
WAIO achieved record first half production and shipments as a result of strong supply chain performance
FY26e 258 – 269 Mt
across our mine, rail and port operations, including record material mined (up 9%). Car Dumper (CD)
performance improved following the completion of the CD3 rebuild in Q1 (4.3 Mt impact, 100% basis),
Average realised price which alongside the planned reduction in tie-in activity on the multi-year Rail Technology Program (RTP1),
generated increased efficiency across the rail network and higher inflow to the port.
US$84.71/wmt 4%
Sales were higher than the prior year, with lump sales up 3%. We are currently negotiating annual contract
HY25 US$81.11/wmt terms with the China Mineral Resources Group (CMRG). During negotiations, we continue to optimise
product placement distribution channels and take actions within our operations to preserve operational
flexibility and productivity. This has seen some impact to realised price.
Production guidance for FY26 remains unchanged at between 251 and 262 Mt (284 and 296 Mt on a 100%
basis).
We have also announced an agreement with Rio Tinto to explore opportunities to mine up to 200 Mt of
iron ore at BHP’s Yandi and Rio Tinto’s neighbouring Yandicoogina iron ore operations in the Pilbara. These
new opportunities build on a history of successful Rio Tinto and BHP collaboration across these operations
to enable mining up to the shared tenure boundary.
Samarco 4.0 Mt 48% | 8 Mt (100% basis)
Production increased as a result of stronger performance at the second concentrator following ramp up,
and higher feed grades and recoveries.
In October, the Samarco Board approved the phase 3 concentrator project. Samarco will invest US$2.4 bn
(100% basis) to lift production capacity to ~26 Mtpa (100% basis) through the staged recommissioning of
remaining latent capacity in concentrator and pelletising plant infrastructure across CY28 and CY29.
Production guidance for FY26 remains unchanged at between 7 and 7.5 Mt, with production now expected to
be in the upper half of the range and planned maintenance in the second half.
Coal
Steelmaking coal
Production BMA 9.2 Mt 2% | 18.3 Mt (100% basis)
9.2 Mt 2% Production increased due to strong operational performance at our open cut operations, supported by the
highest H1 stripping volumes in five years, which offset the impact of planned higher strip ratios.
HY25 8.9 Mt
We continue to safely manage ongoing geotechnical challenges at Broadmeadow. While underground
FY26e 18 – 20 Mt
production rates were strong in Q1, further deterioration in ground conditions in Q2 materially impacted
operations and led to the deferral of the planned longwall move from Q2 to Q3 FY26. As announced in
Average realised price October, Saraji South transitioned into care and maintenance in Q2 in response to market conditions and
the unsustainable impact of the Queensland Government’s coal royalties on business returns.
US$188.58/t 9%
Production guidance for FY26 remains unchanged at between 18 and 20 Mt (36 and 40 Mt on a 100%
HY25 US$206.37/t basis), with production now expected to be in the lower half of the range. Unit cost guidance for FY26 also
remains unchanged at between US$116/t and US$128/t, with unit costs now expected to be in the upper
half of the range.
We expect to continue building raw coal inventory into CY27, to further improve operating stability.
Energy coal
Production NSWEC 8.1 Mt 10%
8.1 Mt 10% Strong operational performance due to increased bypass coal as well as mining lower strip ratio areas.
HY25 7.4 Mt Production guidance for FY26 remains unchanged at between 14 and 16 Mt, with production now expected
to be in the upper half of the range, with minor planned wash plant maintenance scheduled in Q3 FY26.
FY26e 14 – 16 Mt
4
BHP | Operational review for the half year ended 31 December 2025
Average realised price
US$95.76/t 23%
HY25 US$124.42/t
Quarterly performance | Q2 FY26 v Q1 FY26
Copper Iron ore
491 kt 1% Lower production at Escondida due to 70 Mt 9% Higher production at WAIO driven by improved
planned lower grades, partially offset by supply chain performance following the
Q1 FY26 494 kt increased production at Copper SA and Q1 FY26 64 Mt planned rebuild of Car Dumper 3 in the prior
Spence following planned maintenance in the quarter.
prior quarter, and strong performance at
Antamina.
Steelmaking coal Energy coal
4.3 Mt 12% Lower production due to ongoing 4.6 Mt 31% Higher production due to increased bypass coal
geotechnical challenges impacting combined with favourable weather and mining
Q1 FY26 4.9 Mt underground performance and higher rainfall Q1 FY26 3.5 Mt lower strip ratio areas coal. Record wash plant
which impacted stripping. throughput, following planned annual wash
plant maintenance in Q1.
5
BHP | Operational review for the half year ended 31 December 2025
Appendix 1
Average realised pricesi
Quarter performance YTD performance
Q2 FY26 v Q1 FY26 v Q2 FY25 HY26 v HY25
Copper (US$/lb)ii, iii 5.90 29% 58% 5.28 32%
Iron ore (US$/wmt, FOB)iv 85.33 2% 4% 84.71 4%
Steelmaking coal (US$/t)v 196.72 9% (1%) 188.58 (9%)
Energy coal (US$/t)vi 96.24 1% (23%) 95.76 (23%)
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 2025, the Group had 456 kt of outstanding copper sales that were revalued at a weighted average price of US$5.65/lb. The final price of these sales will be
determined over the remainder of FY26. In addition, 434 kt of copper sales from FY25 were subject to a finalisation adjustment in the current period. The displayed prices include
the impact of these provisional pricing and finalisation adjustments.
iv The large majority of iron ore shipments were linked to index pricing for the month of shipment, with price differentials predominantly a reflection of market fundamentals and
product quality. Iron ore sales for H1 FY26 were based on an average moisture rate of 6.8% (H1 FY25: 7.0%).
v The large majority of steelmaking coal and energy coal exports were linked to index pricing for the month of scheduled shipment or priced on the spot market at fixed or index-
linked prices, with price differentials reflecting product quality.
vi Export sales only. Includes thermal coal sales from steelmaking coal mines.
Current year unit cost guidance
FY26 guidancei
Unit cost Previous Current Change
Escondida (US$/lb) 1.20 – 1.50 1.20 – 1.50 Bottom end
Spence (US$/lb) 2.10 – 2.40 2.10 – 2.40 –
Copper SA (US$/lb)ii 1.00 – 1.50ii 1.00 – 1.50ii –
WAIO (US$/t) 18.25 – 19.75 18.25 – 19.75 –
BMA (US$/t) 116 – 128 116 – 128 Upper half
i FY26 unit cost guidance is based on exchange rates of AUD/USD 0.65 and USD/CLP 940.
ii Calculated using the following assumptions for by-products: gold US$2,900/oz, and uranium US$70/lb.
Medium term guidancei
Production Unit cost
guidance guidanceii
Escondidaiii 900 – 1,000 ktpa US$1.50 – 1.80/lb
Spence ~235 ktpa US$2.05 – 2.35/lb
WAIO (100% basis)iv >305 Mtpa 305 Mtpa (100% basis) from Q4 FY28.
Major projects
First production
Commodity Project and ownership Project scope / capacity Project expenditurei US$M target date Progress
Potash Jansen Stage 1ii Design, engineering and construction of an underground US$8.4 bn Mid-CY27 Project is 75%
(Canada) potash mine and surface infrastructure, with capacity to complete
100% produce 4.15 Mtpa.
Potash Jansen Stage 2 Development of additional mining districts, completion of Under review – update FY31 Project is 14%
(Canada) the second shaft hoist infrastructure, expansion of expected in Q4 FY26 complete
100% processing facilities and addition of rail cars to facilitate
production of an incremental 4.36 Mtpa.
i Includes: project capital expenditure, project operating expenditure, cost to construct right-of-use assets (i.e. Westshore port terminal and third-party rail line) and related
contingencies.
ii Refer to separate exchange announcement for more details: Update - Jansen Stage 1 Potash Project.
Exploration
Minerals exploration and evaluation expenditure was US$193 m for HY26 (HY25: US$199 m), of which US$167 m was expensed (HY25: US$174
m).
6
BHP | Operational review for the half year ended 31 December 2025
Appendix 2
[PLACEHOLDER – PRODUCTION AND SALES REPORT – Page 1]
7
BHP | Operational review for the half year ended 31 December 2025
[PLACEHOLDER – PRODUCTION AND SALES REPORT – Page 2]
8
BHP | Operational review for the half year ended 31 December 2025
[PLACEHOLDER – PRODUCTION AND SALES REPORT – Page 3]
9
BHP | Operational review for the half year ended 31 December 2025
[PLACEHOLDER – PRODUCTION AND SALES REPORT – Page 4]
10
BHP | Operational review for the half year ended 31 December 2025
[PLACEHOLDER – PRODUCTION AND SALES REPORT – Page 5]
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BHP | Operational review for the half year ended 31 December 2025
Variance analysis relates to the relative performance of BHP and/or its operations during the six months ended December 2025 compared with the six months
ended December 2024, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100% 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. Medium term refers to a five-year horizon, unless otherwise noted.
The following abbreviations may have been used throughout this release: billion tonnes (Bt); cost and freight (CFR); cost, insurance and freight (CIF), carbon dioxide equivalent (CO2-e),
Direct Reduced Iron (DRI), dry metric tonnes (dmt); free on board (FOB); giga litres (GL); greenhouse gas (GHG); grams per cubic centimetre (g/cm3), grams per tonne (g/t); high-
potential injury (HPI); kilograms per tonne (kg/t); kilometre (km); million ounces per annum (Mozpa); metres (m), million pounds (Mlb); million tonnes (Mt); million tonnes per annum
(Mtpa); percentage point (ppt); ounces (oz); part per million (ppm), pounds (lb); thousand ounces (koz); thousand ounces per annum (kozpa); thousand tonnes (kt); thousand tonnes
per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); total recordable injury frequency (TRIF); wet metric tonnes (wmt); and year to date (YTD).
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, our
subsidiaries. Refer to Note 28 - Subsidiaries of the Financial Statements in BHP’s 2025 Annual Report for a list of our significant subsidiaries. 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,
Resolution, Samarco and Vicuña. BHP Group cautions against undue reliance on any forward-looking statement or guidance in this release. 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.
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BHP Group Limited ABN 49 004 028 077
LEI WZE1WSENV6JSZFK0JC28
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