BHP Group Limited Q2 FY2025 earnings call

• Delivered strong operational and financial performance for the first half of 2025, with underlying EBITDA of $12.4 billion and underlying attributable profit of $5.1 billion.
• Interim dividend of USD 0.5 per share declared.
• Signed a comprehensive agreement with Brazilian public authorities regarding the 2015 Samarco dam failure, providing greater certainty.
• Continues efforts to eliminate serious injuries and fatalities, with safety indicators trending positively.
• Advanced organic growth projects, notably in copper and potash, including the Vicuña joint venture in Argentina.

Western Australia iron ore delivered an EBITDA margin of more than 60%, with C1 cost of $17.50 per tonne this half and has been the lowest cost major iron ore producer globally for 5 years. BMA had production (excluding Blackwater and Daunia) up 14% mainly due to improved strip ratios and truck performance. New South Wales Energy Coal's transition to closure plans is progressing well with an expected outcome on mining content extension to 2030 in the coming months. Copper accounted for 39% of EBITDA, with margins at 54%; Escondida saw a 22% increase in volumes and 12% reduction in unit costs despite union strike disruption, Spence performed well, and Copper South Australia had a weather-related outage but still had a strong underlying performance.

• Expect to grow copper production by 24% over a 3-year period, including 10% growth this half.
• On track to achieve full year production and cost guidance across commodities.
• Net debt expected to increase to around the top end of the target range by the end of the financial year.
• Jansen project in Canada on track for first production by the end of next calendar year.

• Unforeseen external challenges during the period.
• Lingering tightness in the labor market impacting cost base for the rest of the financial year.
• Potential ongoing volatility and uncertainty in the near term due to policies affecting trade flows and inflation.