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BHP (A1 / A- / Au): FY24 Results

CREDIT UPDATE

Neutral: No surprises in the results

The company is emphasising its growth opportunity in Copper in Escondida, Chile as well as in South Australia. They recently agreed a JV to buy Filo.

Potash is another area in which they are investing with the Jansen project in Canada.

  • Adj EBITDA $29.016bn +3.8% yoy in line with expectations
  • Net Debt/EBITDA remains very low 0.14x

Iron Ore still accounts for 65% of underlying earnings but it was clear from the conference call that Copper will be the focus play for the company.

The company’s dividend policy reflects a conservative approach to capital preservation.

Bonds have widened this year as the China slowdown was evident and the company’s willingness to pursue Anglo rattled investors. Notwithstanding the Filo JV, it seems that BHP is taking a more organic approach to growth at present.

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