BHP Group Ltd. Q4 FY2020 earnings call

• Strong financial results: Underlying EBITDA US$22 billion (53% margin), Underlying attributable profit US$9.1 billion; Underlying earnings per share up 2% year-on-year.
• Operational performance: Safer with no fatalities in past year and a half, improved safety indicators; more operationally reliable with record production in some operations; reduced average unit costs at major assets.
• COVID-19 response: Kept people and communities safe, supported communities, kept operations running; shortened payments to small suppliers, committed US$50M to social programs, hired 1,500 temporarily, funded vaccine research.
• Social value: Increased women and Indigenous employment, made progress in water management; paid US$9B in taxes, royalties, etc.
• Climate change plans: To publish climate report on 10th Sept, update Scope 1 and 2 emissions, actions on Scope 3, 1.5°C scenario analysis, link executive pay to climate progress.
• Peter Beaven's contribution: Helped make BHP more financially resilient, disciplined with capital, higher performing.

Western Australia Iron Ore generated EBITDA of US$14.6 billion with a margin of 70%, the highest since 2012. C1 costs excluding royalties were US$11.82 per tonne for the full year, with a second half result of US$10.96 per tonne; FOB guidance for FY21 is US$13 to US$14 per tonne. Copper had EBITDA of US$4.3 billion, driven by record concentrator throughput at Escondida; unit costs at Escondida were US$1.01 per pound full year, with FY21 guidance US$1 to US$1.25 per pound. Met Coal contributed EBITDA of US$1.9 billion at a margin of 36%; medium term unit costs expected between US$58 and US$66 per tonne. Petroleum achieved EBITDA of US$2.2 billion at a margin of 55%; FY21 unit cost guidance US$11 to US$12 per barrel, medium term below US$13.

• WAIO FOB costs FY21: US$13 - US$14 per tonne.
• Copper FY21 costs: US$1 - US$1.25 per pound.
• Met Coal medium term costs: US$58 - US$66 per tonne.
• Petroleum FY21 unit costs: US$11 - US$12 per barrel, medium term below US$13.
• CapEx guidance: FY21 ~US$7B (US$1B reduction from previous), FY22 ~US$8.5B.
• Dividend: Final dividend 55 US cents per share, total US$2.8B, payout ratio 72%.

• Uncertain near-term operating environment with major economies contracting, uneven recovery affecting commodity demand.
• COVID-19 impact on operations, e.g., reduced manning levels in Chile affecting production.
• Geographical and operational risks like weather events affecting coal production, field and grade decline impacting copper and petroleum.
• Climate change and decarbonization challenges affecting future commodity demand and operations.