BHP slashes mine spending, looks to carry more debt after FY25 slide
BHP Group (ASX:BHP) has laid out its new plans to trim spendings on new mines and carry more debt – of which it already has as much as US$12.9 billion – as it looks to combat a staggering -27% fall in coal prices.
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There’s a chance the bluechip Oz miner mothballs some Queensland mines too, should prices not improve the way it likes in the near future.
“We will sustain and optimise our existing operations,” the miner said Tuesday.
“However if low coal prices persist options to pause lower margin areas will be considered.”
It’s not quite panic stations yet, but BHP has started looking at these options after underlying earnings before interest, taxes, depreciation, and amortisation from its BMA operations fell by US$1.3B year-on-year.
Revenue fell too, -8% lower to US$51.3B, with underlying attributable profit (after tax) down -26%; reported as US$10.2B, down from US$13.7B in FY24 earnings.
With all this accounted for, BHP decided to set its final dividend at US60c a share.
The bluechip did manage to meet full-year production guidance across its global assets, though, and set new records in copper and iron ore, leaving group chief executive Mike Henry to declare the company is still “confident in the long-term fundamentals of steelmaking materials, copper, and fertilisers.”
BHP has dropped -0.12% on the report, to sell at $41.42 a share.
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BHP slashes mine spending, looks to carry more debt after FY25 slide
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