BHP Hits Record Annual Iron Ore Output on Q4 Rebound; Copper Guidance Lowered

BHP Group (ASX:BHP) announced its iron ore production recovered strongly in the fourth quarter, enabling the world's largest miner to achieve a record output for the fiscal year ended June 30. The positive result for its core commodity was tempered by weaker copper production and a reduced forecast for the industrial metal.

Iron Ore Rebounds to Annual Record

In a statement Thursday, BHP reported that its Western Australian iron ore production rose 7% quarter-on-quarter to 74.8 million metric tons (mt) for the three months to June 30. The increase reflects a recovery from weather-related disruptions, including Cyclone Zelia, which had impacted operations in the prior quarter.

While the quarterly figure was down 3% from a year ago, the rebound was enough to push full-year production to a record 291.2 million mt. This result fell within the company's guidance of 284-296 million mt. For fiscal 2027, BHP forecast iron ore production between 286-298 million mt.

However, BHP faces a near-term operational risk as hundreds of workers at Port Hedland, the world's largest iron ore loading port, are set to strike on Thursday following failed union negotiations.

Ad

Copper Output Muted, Prices Surge

Copper production presented a more mixed picture. Output rose 3% from the prior quarter to 491.9 thousand metric tons but was down 5% year-over-year due to disruptions at its operations in Chile and South Australia. Full-year production of 1.95 million mt was in line with guidance.

Significantly, BHP lowered its fiscal 2027 copper production guidance to between 1.65-1.80 million mt, citing an unexpected issue at its South Australia operations. This signals potential operational headwinds for a key growth commodity.

Despite lower volumes, the miner benefited from surging prices for the red metal. Average realised copper prices jumped to $6.53 per pound, an 11% increase from the prior quarter and a substantial 47% rise from a year ago. This reflects tight global supplies and strong market expectations for copper demand driven by the artificial intelligence sector.