BHP Group has reported strong operational performance for the nine months ended 31 March 2026, with the company now guiding for upper half FY26 Group copper production as record output from flagship assets Escondida and Western Australian Iron Ore offset challenges at other operations. This upgrade reflects the company’s ability to navigate a complex operating environment while maintaining disciplined capital allocation across its diversified portfolio.
The operational highlights demonstrate consistent execution across BHP’s core assets. Escondida achieved record material mined and concentrator throughput during the period, positioning the asset to deliver copper production in the upper half of guidance. Antamina also delivered increased production, collectively offsetting weakness at Spence where variable ore characteristics continue to create operational challenges. Western Australian Iron Ore similarly posted record production, signalling robust demand for the company’s highest margin products despite broader market uncertainties.
From a financial perspective, BHP has taken decisive action to strengthen its balance sheet and reallocate capital toward growth. The company completed a silver streaming transaction with Wheaton Precious Metals, generating US$4.3 billion in upfront consideration. The divestment of Carajรกs generated US$240 million on completion with potential contingent payments of up to US$225 million based on performance targets. These transactions underscore management’s discipline in extracting value from non-core assets and reducing exposure to lower margin operations while maintaining flexibility to invest in higher return projects.
Cost management remains a focal point as BHP navigates inflationary pressures stemming from elevated energy and consumables costs tied to Middle East geopolitical tensions. The company has improved unit cost guidance at Escondida and positioned BMA to guide to the top end of its cost range, reflecting both operational excellence and the competitive advantage afforded by its centralised procurement capability and low-cost operational footprint. This operational leverage provides some insulation against industry wide cost pressures.
The copper growth pipeline also advanced materially during the quarter. BHP submitted an Environmental Impact Declaration permit for Escondida’s new concentrator, the centrepiece of that asset’s expansion program. Resolution Copper, BHP’s joint venture with Rio Tinto, completed a critical land exchange in Arizona, clearing the path for drilling activities required to complete the project’s mine design and feasibility study. These milestones are important for establishing BHP’s future copper production trajectory.
The announcement also disclosed a CEO transition, with Brandon Craig assuming the role on 1 July 2026 following Mike Henry’s departure after six and a half years. Craig brings more than 25 years of operational leadership at BHP, most recently as President Americas where he oversaw the company’s ascent to becoming the world’s largest copper producer while advancing growth options across the region.
Investors should monitor BHP’s execution on the Escondida concentrator expansion and Resolution Copper’s progress toward a completed feasibility study, as these projects are critical to sustaining production growth through the next commodity cycle. The effectiveness of cost management initiatives in containing inflation will also warrant close attention as the company moves through the remainder of FY26. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About BHP Group Limited (ASX: BHP)
BHP Group is one of the world’s largest mining companies, producing iron ore, copper, nickel, metallurgical coal, and potash. Headquartered in Melbourne, it operates assets across Australia, the Americas, and other regions.
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