BHP Reports Record Iron Ore Production, Boosting Market Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy BHP?
Source: NASDAQ.COM
BHP Group Ltd's stock rose by 3.01% as it reached a 52-week high, reflecting strong investor confidence in the company's performance.
The catalyst for this price movement is BHP's announcement of a record iron ore production of 263 Mt for FY2025, surpassing its guidance and marking a 1% year-over-year increase. This achievement solidifies BHP's leadership in the global iron ore market and sets a strong foundation for future growth. Additionally, the company's strategic shift towards base metals, with plans to allocate nearly 70% of its capital expenditure to copper and potash, indicates a proactive approach to capitalize on long-term demand driven by global electrification and population growth.
BHP's strong production figures and strategic investments position the company favorably in the market, enhancing its competitive edge and attracting investor interest.
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Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 73.380
Low
49.50
Averages
56.50
High
68.00
Current: 73.380
Low
49.50
Averages
56.50
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Substantial Dividend Increase: The company declared a dividend increase of over 40% to USD 0.73 per share, reflecting confidence in operational performance and a positive outlook for future market conditions.
- Strategic Silver Streaming Deal: BHP's $4.3 billion silver streaming agreement with Wheaton showcases its strategic approach to capital allocation and maximizing returns, further solidifying its financial foundation.
- Effective Cost Control: The company achieved a 5% reduction in costs, translating to a 7% real-term decline, which not only enhances profitability but also provides greater financial flexibility for future investments and expansions.
See More
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- Optimized Revenue Structure: Under the agreement, Wheaton will pay an upfront consideration of $4.3 billion and ongoing payments equal to 20% of the spot silver price for each ounce delivered, allowing BHP to effectively monetize silver byproduct from the Antamina mine while retaining rights to its core copper, zinc, and lead production.
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See More
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- Increased Silver Production: BHP will deliver silver from its Antamina mine in Peru, with Wheaton receiving 67.5% of the silver produced, a substantial increase from the current 33.75%, reflecting BHP's strategic resource allocation adjustments.
- Strong Earnings Performance: BHP reported a 22% year-over-year increase in underlying attributable profit to $6.2 billion for the six months ending December, surpassing market expectations, indicating the successful diversification of revenue sources as copper profitability exceeds that of iron ore for the first time.
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See More
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- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
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See More
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- Global Mineral Cooperation Agreement: The US and EU committed to a deal within 30 days to identify cooperation areas, stimulate demand, and diversify critical mineral supply, aiming to prevent supply chain disruptions and promote research and innovation, reflecting the strategic collaboration of three major economies in global mineral supply chains.
- Current Control of Critical Minerals: China controls 60% to 90% of the global critical mineral processing market, particularly in missile defense and energy infrastructure, which creates vulnerabilities for the US and its allies, compelling them to take action to ensure supply security.
- US Policy Shift: President Trump launched the $12 billion Project Vault to stockpile critical minerals, while Congress passed the Critical Mineral Dominance Act, marking a significant step in breaking China's control over mineral supply chains and expected to boost domestic mining and refining sectors.
- Surge in Copper Demand: Copper demand is projected to rise by 50% to 42 million metric tons by 2040, while supply is expected to decline by 7%, leading to a 10 million ton shortfall, particularly driven by emerging technologies like AI and electric vehicles, intensifying the demand for copper.
See More
