BHP Shares Drop as Copper Production Forecasts Decline

Shares of BHP Group Ltd. fell between 2.43% and 3% in Australian trading after the company reported lower copper and iron ore production for the fourth quarter of fiscal 2026. Despite achieving record annual iron ore production of 264.7 million tonnes for the year ending June 30, copper output for the previous 12 months declined 3% to 1.95 million tonnes.

The company issued a cautious outlook for fiscal 2027, projecting copper production between 1.65 million and 1.8 million tonnes, a decline of roughly 12%. This forecast missed market expectations and is attributed to deteriorating ore grades at the Escondida mine in Chile and a conveyor failure at the Carrapateena mine in South Australia. These operational setbacks occur as the company shifts its strategy toward commodities essential for electrification and AI.

Financially, the company expects a $2.3 billion impairment on its Jansen potash project in Canada during the second half of fiscal 2026, driven by inflation and geopolitical tensions. However, CEO Brandon Craig noted that results reflected stronger realized prices, with copper prices increasing approximately 35% year-on-year. Craig expressed confidence in the long-term demand for core commodities supported by industrialization, urbanization, and the energy transition.