Leading miner BHP Group BHP announced its full-year financial results for the fiscal year ending June 30.

Despite a challenging macroeconomic environment, BHP delivered a solid performance. It grew profits by 2% year-over-year to an underlying attributable profit of $13.7 billion.

“We expect volatility in global commodity markets in the near term, with China experiencing an uneven recovery," CEO Mike Henry noted. China's slowing economy, particularly its troubled property market, affects the demand for iron ore — one of BHP's largest revenue sources.

See Also: Mohamed El-Erian Observes Spike In Gold Says, Precious Metal ‘Trading Within $5 Of A New Record High’

BHP's chief executive expressed cautious optimism about the outlook of the global economy.

"We anticipate developed economies will face gradual relief from the lingering effects of higher interest rates in coming years," he said.

BHP has been increasingly focusing on copper as a center of its growth strategy. He also acknowledged the rising demand for the metal crucial for green technology transition and outlined plans to expand copper production.

"We have a pathway toward well over two million tons a year of copper," he stated.

BHP’s copper production grew 9% for the second consecutive year, reaching 1.9 million tons in FY 2024. The copper growth strategy involves expanding its operations in Australia and South America. In South Australia, BHP aims to ramp up production to 650,000 tons per year by the mid-2030s, up from 310,000 to 340,000 tons annually.

The company also made acquisitions, including a 50% stake in Argentina’s Filo del Sol and Josemaria copper projects. These projects represent some of the most promising copper discoveries in recent years. They will play a critical role in meeting the anticipated 70% increase in global copper demand by 2050.

Yet, regardless of short-term hurdles, like the recent strike at the Escondida mine, BHP's robust portfolio and managerial expertise position the company to capitalize on the positive industry trend.

Benzinga Mining is the bridge between mining companies and retail investors. Reach out to licensing@benzinga.com to get started!

• Read More