BHP

Management Statement and Operational Highlights:

• Strategy remains focused on highly attractive commodities with resilient demand and steep cost curves, owning world-class assets.
• 2025 was a strong year with record iron ore and copper production, sector-leading margins, and strong cash flows. Final dividend of USD 0.60 per share, total full year dividend $5.6 billion.
• Achieved gender balance in global employee workforce at 41.3%, improving business performance.
• Key safety metrics improved year-on-year, with a 63% reduction in high potential injury frequency over 5 years.
• Underlying EBITDA margin 53%, return on capital employed 21%. Taxes and royalties incurred $10 billion against underlying attributable profit $10.2 billion.
• Refined project sequencing, aiming for average production growth 2.2% per annum over next decade. Reduced capital spend by $1 billion per year medium term. Revised net debt target range to $10 billion to $20 billion.
• WAIO had record production and shipments, BMA volumes up 5%, Copper had record EBITDA and volumes, New South Wales Energy Coal transition to closure progressing.

Guidance:

• Expect capital and exploration spend around $11 billion in FY '26 and '27, averaging $10 billion per year medium term, $1 billion lower than previous guidance.
• Revised net debt target range to $10 billion to $20 billion reflecting improved business and portfolio.
• Assuming projects proceed, average production growth of 2.2% per annum over next decade.
• Final dividend of USD 0.60 per share, payout ratio 60%.

Segment Performance:

• Western Australia Iron Ore (WAIO): Achieved record production and shipments despite severe weather, with an EBITDA margin of 63% and C1 costs of $17.29 per tonne. WAIO has been the lowest cost major iron ore producer globally for 6 years. Revenue contribution: Significant, as it's a key segment.
• BMA: Volumes up 5% despite weather-related disruptions, with supply chain stabilization efforts progressing.
• New South Wales Energy Coal: Transition to closure ongoing, secured mining until June 2030, and exploring pumped hydro energy storage post-mining.
• Copper: Generated a record $12 billion of EBITDA, accounting for 45% of the group total with a margin of 59%. Escondida saw a 16% volume increase to 1.3 million tonnes, Spence had record production, and Copper South Australia showed steady performance.

Risks:

• Project execution risks, such as encountered higher inflation and cost escalation at Jansen, extending Stage 2 first production by 2 years.
• Commodity price fluctuations impacting EBITDA.
• Regulatory and policy changes affecting projects like Copper South Australia's expansion requiring stable fiscal and regulatory settings.