BHP reports better-than-expected profit on higher copper prices
Copper has overtaken iron ore as the company’s top earnings driver
BHP Group reported a better-than-expected full-year underlying profit on Tuesday, with copper prices leading the surge. The red metal, which has reached record highs above US$14,000 a tonne this year, has become the company's top earnings driver, surpassing iron ore's US$14.53 billion in operating earnings. Copper's operating earnings amounted to US$18.19 billion in the year ending June 30, boosting BHP's overall profit to US$13.20 billion, exceeding the consensus estimate of US$12.66 billion.
CEO Brandon Craig attributed BHP's growth to the increasing demand for mined copper, projecting that demand will grow from 34 million tonnes per annum to over 50 million tonnes by 2050. The miner announced a final dividend of 99 cents per share, raising the full-year distribution to US$1.72 per share, the highest in four years. BHP is poised to produce up to 40 percent more copper by 2035, with copper demand expected to reach more than 50 million tonnes per year by 2050 from 34 million tonnes this year.
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