BHP BHP Group Limited

Mike Henry

BHP Chief Executive Officer

Summary

Operational excellence

Social value

On track to meet FY25 production guidance

Climate Transition Action Plan

We released our second Climate Transition Action Plan (CTAP) which lays out our climate strategy and GHG emissions goals and targets, and provides an in depth view of our plans and how we’re progressing against them. The CTAP will be put to a shareholder advisory vote at our upcoming AGM on 30 October 2024. We also announced collaborations with India’s JSW Steel and Carbon Clean and Steel Authority of India to support decarbonisation technology in steelmaking.

Portfolio

Outlook

Increased exposure to copper

Copper outlook supports growth pipeline

Copper (kt)

Escondida (kt)

Pampa Norte (kt)ⁱ

Copper South Australia (kt)

Antamina (kt)

Carajás (kt)

Iron ore (Mt)

WAIO (Mt)

WAIO (100% basis) (Mt)

Samarco (Mt)

Steelmaking coal – BMA (Mt)

BMA (100% basis) (Mt)

Energy coal – NSWEC (Mt)

Nickel – Western Australia Nickel (kt)

Q1 FY24 includes 9.5 kt from Cerro Colorado which entered care and maintenance in December 2023. Excluding these volumes, Q1 FY25 production decreased 13%. Production guidance for FY25 is for Spence only. Refer to production and sales report and copper for further information.

Q1 FY24 production includes 1.8 Mt (3.7 Mt on a 100% basis) from Blackwater and Daunia mines which were divested on 2 April 2024. Excluding these volumes, Q1 FY25 production increased 20%. Refer to production and sales report and steelmaking coal for further information.

Further information in Appendix 1

Detailed production and sales information for all operations in Appendix 2

Production

476 kt _4%

Q1 FY24 457 kt

FY25e 1,845 – 2,045 kt

Average realised price

US$4.24/lb _17%

Q1 FY24 US$3.63/lb

Total copper production increased 4% to 476 kt. Copper production guidance for FY25 remains unchanged at between 1,845 and 2,045 kt.

Escondida _{304 kt 11% (100% basis)}

Increased production primarily due to a higher concentrator feed grade of 1.00% (Q1 FY24: 0.85%) and higher recoveries as mining progressed into areas of higher-grade ore as planned. This was partially offset by planned lower cathode production, as the integration of the FullSaL project continued. The project remains on track for first production later in FY25.

A new collective agreement with Union N°1 of Operators and Maintainers was signed and became effective for 36 months from 2 August 2024. The associated industrial action did not have a material impact on production during the quarter as a result of mitigating actions taken by management, including mine resequencing and prioritisation of ore movement.

During Q1 FY25, one access ramp into the PL1 high grade mining area was impacted by geotechnical instability. We utilised alternative access ramps and completed stabilisation works, and as a result no material production impacts are expected.

Production guidance for FY25 remains unchanged at between 1,180 and 1,300 kt, weighted to the second half. Concentrator feed grade for FY25 is expected to remain above 0.90%.

Pampa Norte _{60 kt 23%}

Copper South Australia _{73 kt 2%}

Other copper

Production

65 Mt _2%

Q1 FY24 63 Mt

FY25e 255 – 265.5 Mt

Average realised price

US$80.10/wmt _18%

Q1 FY24 US$98.04/wmt

Iron ore production increased 2% to 65 Mt. Production guidance for FY25 remains unchanged at between 255 and 265.5 Mt.

WAIO _{63.4 Mt 2% | 71.6 Mt (100% basis)}

Production increased as a result of strong supply chain performance with increased capacity unlocked by PDP1. Higher volumes were delivered from the Central Pilbara hub (South Flank and Mining Area C) following the completion of South Flank ramp up in FY24. We continue to progress the multi-year Rail Technology Program (RTP1), with tie-in activity increasing in FY25.

Production guidance for FY25 remains unchanged at between 250 and 260 Mt (282 and 294 Mt on a 100% basis).

Samarco _{1.3 Mt 4% | 2.6 Mt (100% basis)]}

Production increased due to early resumption of Pelletizing Plant No. 4 enabling improved performance. Production guidance for FY25 remains unchanged at between 5 and 5.5 Mt. The second concentrator at Samarco is expected to come online during Q3 FY25, which will increase production capacity to ~16 Mtpa of pellets (100% basis) once fully ramped up, which is expected to be by the end of FY26.

BHP Brasil, Samarco and Vale have been engaging in negotiations with the Brazilian State and Federal Governments and other public entities to seek a settlement of obligations under the Framework Agreement, the Federal Public Prosecution Office Claim, and other claims by government entities relating to the Samarco dam failure. Those negotiations are ongoing.

BHP Group Limited and BHP Group (UK) Limited are defendants to a group action claim in the English High Court, brought by over 600,000 claimants seeking damages in relation to the Fundão Dam failure in 2015. The liability hearing for the group action will begin on 21 October 2024.

Coal

Steelmaking coal

Production

4.5 Mt _19%

Q1 FY24 5.6 Mt

FY25e 16.5 – 19 Mt

Average realised price

US$214.86/t _9%

Q1 FY24 US$237.07/t

BMA _{4.5 Mt 19% | 9 Mt (100% basis)}

Production increased 20% (excluding 1.8 Mt from Blackwater and Daunia in Q1 FY24), due to increased stripping enabled by improved truck productivity as well as Q1 FY24 being impacted by the extended longwall move at Broadmeadow. We maintain our focus on restoring value chain stability, with an increase in raw coal inventory, which will continue into CY26.

During the quarter we completed planned maintenance at Goonyella Riverside and Hay Point Coal Terminal, and commenced a longwall move at Broadmeadow.

Production guidance for FY25 remains unchanged at between 16.5 and 19 Mt (33 and 38 Mt on a 100% basis).

Energy coal

Production

3.7 Mt _2%

Q1 FY24 3.6 Mt

FY25e 13 – 15 Mt

Average realised price

US$124.32/t _1%

Q1 FY24 US$125.66/t

NSWEC _{3.7 Mt 2%}

Production increased 2%, including a higher proportion of washed coal in line with our strategy of prioritising higher quality coals. This was enabled by a drawdown of inventory to offset the impacts of reduced truck availability and unfavourable weather conditions.

Production guidance for FY25 remains unchanged at between 13 and 15 Mt.

The modification to extend mining consent to 30 June 2030 is currently being assessed by the NSW Government with an outcome anticipated in Q3 FY25.

Group & Unallocated

19.6 kt _3%

Q1 FY24 20.2 kt

Average realised price

US$16,359/t _20%

Q1 FY24 US$20,354/t

Production decreased as we commenced the temporary suspension of operations at Nickel West. Operations will be suspended from October 2024 and handover activities will be completed by December 2024. We continue to support the workforce through this transition period and have made redeployment offers to a large portion of our frontline employees.

We expect costs to remain elevated during the transition to suspension in the first half and we plan to invest ~US$300 m per annum beginning in January 2025 to preserve optionality for a potential restart.

No production guidance has been provided for FY25.

Copper

Iron ore

476 kt _6%

Q4 FY24 505 kt

65 Mt _7%

Q4 FY24 69 Mt

Steelmaking coal

Energy coal

4.5 Mt _8%

Q4 FY24 4.9 Mt

Lower production as a result of the ramp down and commencement of the longwall move at Broadmeadow in Q1 FY25, and higher yield and lower strip ratio in the prior quarter as a result of mine sequencing.

3.7 Mt _2%

Q4 FY24 3.8 Mt

Nickel

19.6 kt _15%

Q4 FY24 23.0 kt

Lower production as transition of operations to temporary suspension commenced.

Copper (US$/lb)ⁱⁱ

Iron ore (US$/wmt, FOB)

Steelmaking coal (US$/t)ⁱⁱⁱ

Thermal coal (US$/t)^iv

Nickel metal (US$/t)^v

Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments.

Sales from Carrapateena and Prominent Hill acquired through the purchase of OZL are included from Q4 FY24.

From FY25, steelmaking coal refers to Hard Coking Coal which is generally those steelmaking coals with a Coke Strength after Reaction (CSR) of 35 and above, and includes coals across the spectrum from Premium Coking to Semi Hard Coking coals. Comparative periods include impacts from Weak Coking Coal, which refers generally to those steelmaking coals with a CSR below 35, which were sold by Blackwater and Daunia mines, divested on 2 April 2024.

Export sales only. Includes thermal coal sales from steelmaking coal mines.

Relates to refined nickel metal only, excludes intermediate products and nickel sulphate.

Current

FY25 guidanceⁱ

Escondida (US$/lb)

Spence (US$/lb)

Copper South Australia (US$/lb)

WAIO (US$/t)

BMA (US$/t)

FY25 unit cost guidance is based on exchange rates of AUD/USD 0.66 and USD/CLP 842.

Calculated using the following assumptions for by-products: gold US$2,000/oz, and uranium US$80/lb.

Escondidaⁱⁱⁱ

Spence

WAIO

BMA

Medium term refers to a five year time horizon unless otherwise noted.

Unit cost guidance is based on exchange rates of AUD/USD 0.66 and USD/CLP 842.

Medium term refers to FY27 onwards. Production for FY25 and FY26 are expected to average between 1,200 and 1,300 kt.

Capital

expenditure

US$M

First

production

target date

Potash

complete

Potash

complete

Group production and sales summary

By commodity

Metals production is payable metal unless otherwise noted.

Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.

Copper

Lead

Zinc

Gold

Silver

Uranium

Molybdenum

Iron ore

Steelmaking coal¹

Energy coal

Nickel

Cobalt

Production

Sales

Production and sales

By asset

Copper