BHP, one of the world's leading mining companies, released its full-year financial results for FY24 on August 27, 2024. The company reported a notable increase in attributable profit, reaching US$7.9 billion, a 39% rise from the previous year’s US$12.9 billion. This substantial gain reflects BHP’s solid operational performance and improved commodity prices. The underlying attributable profit also saw a modest increase of 2%, totaling US$13.7 billion, driven by robust cost discipline and strategic operational efficiencies.
In terms of capital and exploration investments, BHP's expenditure rose significantly to US$9.3 billion, a 31% increase from FY23's US$7.1 billion. This upsurge in spending is focused predominantly on copper and potash projects, with US$1.5 billion allocated to these sectors. The company is committed to directing 65% of its medium-term capital toward these future-facing commodities. A notable strategic move includes BHP’s agreement with Lundin Mining to jointly acquire Filo Corp. and enter a partnership to develop the Filo del Sol and Josemaria copper projects.
Despite these financial and operational successes, BHP's decarbonization efforts are a focal point. The company reported operational greenhouse gas emissions of 9.2 million metric tons of CO2-equivalent, marking a 32% increase since the FY20 baseline on an adjusted basis. This rise is attributed to increased business activity. Nevertheless, BHP remains on track to meet its goal of reducing operational GHG emissions by at least 30% from FY20 levels by 2030. The company is also advancing its value chain GHG emissions strategy and has announced up to US$4 billion in investments and commitments over the next decade to support its decarbonization plans.
Chief Executive Officer Mike Henry emphasized the company’s operational excellence and its strategic investments in growth. BHP achieved record volumes at its Western Australia Iron Ore operations, maintaining its position as the lowest-cost iron ore producer globally. The company also reported a 9% increase in overall copper volumes for the second consecutive year, with an expected 4% rise in FY25. In addition, BHP's capital projects include further expansion studies at WAIO and the accelerated development of the Jansen potash project in Canada, with first production anticipated just over two years away.
The company’s strategic adjustments also include a temporary suspension of its Western Australia Nickel operations due to global oversupply. BHP remains committed to supporting its employees and communities affected by this decision. Furthermore, BHP has achieved 37% female participation across its global workforce and increased its Indigenous procurement spend to over US$600 million.
Looking forward, BHP anticipates ongoing volatility in global commodity markets, influenced by China’s uneven economic recovery and India’s rapid growth. The effectiveness of new pro-growth policies in China will be crucial for meeting its 5% growth target. Meanwhile, developed economies are expected to experience gradual relief from high interest rates in the coming years.
