With operations spanning Australia, the Americas, and a key listing in London, BHP Group Plc extracts and sells vast quantities of minerals like iron ore, copper, and coal, generating billions globally. It operates in the mining industry – a critical sector supplying raw materials for steelmaking, energy, and technology. As one of the world’s largest mining firms, BHP plays a pivotal role in global commodity markets.
BHP’s primary revenue comes from mining and selling commodities. Its Western Australia Iron Ore division produced 192 million tonnes in the first nine months of FY25, despite a slight dip in the third quarter due to cyclones. Iron ore, essential for steel, is sold mainly to China, though a slowing Chinese economy recently cut profits – first-half earnings fell 23% to $5.08 billion in 2024. Copper, increasingly vital for the energy transition, is another focus, with a 10% production rise in Q3 2025, driven by the Escondida mine in Chile. BHP also mines coal for steelmaking, though coal output dropped 13% in Q3 2025. Commodity prices swing with global demand – copper prices soared in 2024, while iron ore faced headwinds.
The company also earns by processing and shipping these materials to international buyers. It’s pursuing growth through acquisitions, such as a recent deal with Lundin Mining for copper assets in Chile, expanding its portfolio. Employing over 40,000 people, BHP reported an underlying EBITDA of $23.5 billion in 2024. Yet, it faces challenges – global trade tensions, including US tariffs, and market volatility saw shares drop 11% in a single week in April 2025. BHP is adapting by prioritising copper and potash, minerals key to the energy transition, while working to reduce its environmental impact.
BHP’s scale and focus on high-demand commodities position it well for the future, but it must navigate economic uncertainties and geopolitical risks. Its push towards greener operations could open new opportunities, though the mining sector’s cyclical nature means it’s never far from the next challenge.
Great fortunes can be made in mining companies but seldom is that done via the ownership of shares in a mining giant. There can be times during the mining cycle when good money can be made even in these behemoths and Wonder Stocks are not against further work at those times. They usually occur when price to book ratios is well below one and when years of under investment has led to insufficient supply. In mid-2025 however, there seems little of interest for readers of Wonder Stocks.
