Asks for BHP's outlook for the copper business heading into the second half.
Paul
Vandita Pant
Very pleased with copper performance. For the first time, over 50% of EBITDA came from copper. Performance across assets is very good.
Vandita Pant
Revising guidance up for Escondida mine for this year and next year, meaning more production in the constructive copper price environment.
Vandita Pant
Copper segment booked almost $2 billion in byproduct revenue from gold, silver, and uranium in the half.
Vandita Pant
Outlook on medium term with attractive copper programs worldwide (Chile, Argentina, Australia, US) means increasing copper production into the future.
Vandita Pant
Copper production increased 30% in last 4 years. BHP is the largest copper producer in the world.
Vandita Pant
Plan to increase copper production to 2.5 million tonnes (copper equivalent including byproducts) by mid-2030s.
Asks about M&A strategy following unsuccessful bid for Anglo American, questioning if future deals will be asset-specific or blockbuster.
Paul
Vandita Pant
Strategy is not predicated on M&A growth. The bar for inorganic opportunities is very high: must create shareholder value, be disciplined, and involve good quality assets.
Vandita Pant
Focus is on organic growth portfolio: Escondida, Vicuña, and projects in South Australia will increase from 300 kT to 500+ kT in early 2030s, then to 650 kT.
Vandita Pant
Past value-accretive M&A (Vicuña, Oz Minerals) performed well and is unlocking value, with material byproduct revenue.