BHP has increased its revenues by 3% or US $1.8 billion for the fiscal year 2024 primarily as a result of higher realised prices across iron ore and copper, where sales volumes also increased 3% and 5% respectively. Underlying attributable profit increased 2% to US $13.7 billion; however, attributable profit decreased by 39% to US $7.9 billion due to an exceptional loss of US $5.8 billion (post tax). This loss was predominantly comprised of a US $2.7 billion impairment of Western Australia Nickel; and a US $3.8 billion charge related to the Samarco dam failure.

“BHP delivered a strong set of results in FY2024 on the back of solid operational performance. We delivered record volumes at Western Australia Iron Ore, where we extended our lead as the world’s lowest cost iron ore producer. Across our global copper assets, we grew overall copper volumes by 9% for the second consecutive year and expect to deliver a further 4% in FY2025,” said Mike Henry, BHP´s Chief Executive Officer. “As a result of this strong performance, combined with our healthy balance sheet, we determined a final dividend of 74 US cents per share, a 53% payout ratio, continuing our track record of delivering robust shareholder returns through the cycle,” he added.

For the balance of calendar year 2024 and into 2025, BHP expects the supply from low-cost major iron ore producers to grow while iron ore consumption is experiencing a modest decline. BHP estimates real-time cost support will sit in the US $80 –100 range per metric tonne on a 62% Fe CFR basis. In the medium term, China’s demand for iron ore is expected to be lower than at present as the ratio of scrap-based steelmaking rises.

“The longer-term fundamentals that drive demand for our products remain compelling. In the near term, we expect volatility in global commodity markets, with China experiencing an uneven recovery among its end-use sectors. The effectiveness of recently announced pro-growth policies will be an important contributor for the country to achieve its official 5% growth target. India is set to continue as the world’s fastest growing major economy. We anticipate developed economies will face gradual relief from the lingering effects of higher interest rates in coming years,” said Mr Henry.

BHP was one of the largest corporate taxpayers in Australia in FY2024. Its global adjusted effective tax rate was 32.5% and increases to 41.7% once revenue and production-based royalties are included.