Shares of BHP Group Ltd moved to a record in Sydney trade as the world's largest miner posted robust first-half earnings, underpinned by a sharp improvement in copper-related results.
In Sydney, BHP stock climbed as much as 7% to a record A$53.680, supporting a modest gain in the broader market as the ASX 200 finished higher by 0.5%.
For the six months ending December 31, the company reported an underlying profit of $6.20 billion, a rise of 22% compared with the same period a year earlier. Management attributed the stronger earnings largely to copper, where realized prices increased by 32% and copper sales contributed a slightly larger share of overall earnings than iron ore.
At the same time, BHP recorded a first-half production record for iron ore, and prices for the steelmaking raw material also rose during the period. Despite the production milestone and firmer pricing, the company may confront near-term headwinds in iron ore sales, as several recent reports indicated Chinese buyers were negotiating lower prices with major iron ore producers.
In a separate transaction, BHP struck an agreement with Wheaton Precious Metals to supply silver from a Peruvian mine. Under the terms, BHP is set to receive an upfront payment of $4.3 billion once the deal completes.
The mix of metals performance - notably the outsized contribution from copper - shaped the first-half results. Copper's stronger realized prices and a larger earnings contribution relative to iron ore were central to the profit outcome, even as iron ore production reached a record.
Market reaction to the report pushed the company's shares to fresh highs, reflecting investor focus on commodity price moves and sales mix. At the same time, the noted negotiations by Chinese buyers over iron ore pricing represent an uncertainty for near-term sales and revenue visibility for iron-ore-exposed miners.
Summary takeaway - BHP posted a 22% rise in H1 underlying profit to $6.20 billion, with copper driving the improvement through a 32% rise in realized prices and a slightly higher earnings share than iron ore. Iron ore output hit a first-half record, though potential price negotiations by major Chinese buyers may weigh on near-term iron ore sales. BHP also secured a $4.3 billion upfront payment linked to a silver supply deal with Wheaton Precious Metals.