BHP Increases Copper Guidance for 2026 and 2027 Amid Strong Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy BHP?
Source: Yahoo Finance
- Copper Production Growth: BHP anticipates a 5% CAGR in copper production from 2027 to 2035, significantly enhancing its competitive position in a high copper price environment.
- 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.
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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.
BHP Increases Copper Guidance for 2026 and 2027 Amid Strong Performance
- Copper Production Growth: BHP anticipates a 5% CAGR in copper production from 2027 to 2035, significantly enhancing its competitive position in a high copper price environment.
- 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
BHP Signs $4.3 Billion Silver Streaming Agreement
- Record Transaction Size: BHP's $4.3 billion silver streaming agreement with Wheaton Precious Metals marks the most valuable precious metals streaming transaction to date, showcasing the company's strong influence in the silver market.
- 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.
- Rising Demand for Strategic Metal: Silver's importance has surged due to strong demand from solar panels, electronics, and electrification technologies, while mine supply has struggled to keep pace, leading to multiple years of production deficits and unprecedented price volatility.
- Future Outlook: The transaction is set to take effect on April 1, 2026, pending regulatory approvals, and is expected to further enhance BHP's competitive position in the global mining market.
See More
ZIM Integrated Shipping Shares Surge 36% Following Acquisition Deal
- Acquisition Deal Boosts Stock: ZIM Integrated Shipping shares surged 36% after Hapag-Lloyd agreed to acquire the company for $35 per share in cash, representing a 58% premium and valuing ZIM at approximately $4.2 billion, with market optimism surrounding regulatory and shareholder approvals.
- Positive Clinical Trial Outlook: Ocular Therapeutix shares rose 35% as the company prepares for a webcast on February 17, 2026, to discuss topline results from the SOL-1 Phase 3 trial of AXPAXLI, with investors eagerly anticipating detailed data that could drive future growth.
- COMPASS Pathways Stock Surge: COMPASS Pathways shares increased by 28% ahead of the release of Phase 3 data for its COMP360 psilocybin treatment for treatment-resistant depression, scheduled for February 17, which has generated significant investor interest in the potential of this innovative therapy.
- Wheaton Precious Metals Acquisition Impact: Wheaton Precious Metals shares dipped 2% after agreeing to acquire BHP's 33.75% silver stream at the Antamina mine for $4.3 billion in cash, which is expected to add approximately 6 million ounces of annual silver output, although it will raise net debt to around $2.4 billion, indicating a strategic long-term growth plan.
See More
BHP Signs Long-Term Silver Streaming Deal with Wheaton
- Silver Streaming Agreement: BHP has signed a long-term silver streaming agreement with Wheaton Precious Metals, securing an upfront payment of $4.3 billion, which is expected to significantly enhance the company's cash flow and market competitiveness.
- 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.
- Dividend Growth Reflects Confidence: BHP declared an interim dividend of $0.73 per share, exceeding market expectations of $0.63, which reflects the company's strong operational performance and confidence in its outlook, while also demonstrating prudent and effective capital allocation.
See More
AI Turbulence Impacts Market Performance
- 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.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
US, EU, and Japan Unite to Counter China's Mineral Dominance
- 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
BHP Increases Copper Guidance for 2026 and 2027 Amid Strong Performance
- Copper Production Growth: BHP anticipates a 5% CAGR in copper production from 2027 to 2035, significantly enhancing its competitive position in a high copper price environment.
- 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
BHP Signs $4.3 Billion Silver Streaming Agreement
- Record Transaction Size: BHP's $4.3 billion silver streaming agreement with Wheaton Precious Metals marks the most valuable precious metals streaming transaction to date, showcasing the company's strong influence in the silver market.
- 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.
- Rising Demand for Strategic Metal: Silver's importance has surged due to strong demand from solar panels, electronics, and electrification technologies, while mine supply has struggled to keep pace, leading to multiple years of production deficits and unprecedented price volatility.
- Future Outlook: The transaction is set to take effect on April 1, 2026, pending regulatory approvals, and is expected to further enhance BHP's competitive position in the global mining market.
See More
ZIM Integrated Shipping Shares Surge 36% Following Acquisition Deal
- Acquisition Deal Boosts Stock: ZIM Integrated Shipping shares surged 36% after Hapag-Lloyd agreed to acquire the company for $35 per share in cash, representing a 58% premium and valuing ZIM at approximately $4.2 billion, with market optimism surrounding regulatory and shareholder approvals.
- Positive Clinical Trial Outlook: Ocular Therapeutix shares rose 35% as the company prepares for a webcast on February 17, 2026, to discuss topline results from the SOL-1 Phase 3 trial of AXPAXLI, with investors eagerly anticipating detailed data that could drive future growth.
- COMPASS Pathways Stock Surge: COMPASS Pathways shares increased by 28% ahead of the release of Phase 3 data for its COMP360 psilocybin treatment for treatment-resistant depression, scheduled for February 17, which has generated significant investor interest in the potential of this innovative therapy.
- Wheaton Precious Metals Acquisition Impact: Wheaton Precious Metals shares dipped 2% after agreeing to acquire BHP's 33.75% silver stream at the Antamina mine for $4.3 billion in cash, which is expected to add approximately 6 million ounces of annual silver output, although it will raise net debt to around $2.4 billion, indicating a strategic long-term growth plan.
See More
BHP Signs Long-Term Silver Streaming Deal with Wheaton
- Silver Streaming Agreement: BHP has signed a long-term silver streaming agreement with Wheaton Precious Metals, securing an upfront payment of $4.3 billion, which is expected to significantly enhance the company's cash flow and market competitiveness.
- 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.
- Dividend Growth Reflects Confidence: BHP declared an interim dividend of $0.73 per share, exceeding market expectations of $0.63, which reflects the company's strong operational performance and confidence in its outlook, while also demonstrating prudent and effective capital allocation.
See More
AI Turbulence Impacts Market Performance
- 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.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
US, EU, and Japan Unite to Counter China's Mineral Dominance
- 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
