BHP and Rio Tinto Shares Surge Over 2% Amid Iron Ore Price Rally

BHP Group and Rio Tinto shares rose over 2% as iron ore prices jumped. BHP Group is the world's leading mining group, with net sales broken down into iron ore (47.3%), base metals (25.9%), and coal (23.9%). The company's sales are geographically distributed across various regions, including Australia, China, Japan, and India. The increase in iron ore prices drove the shares up.

BHP Group, one of the world's leading mining companies, reported a mixed financial performance for the year ended June 30, 2025. The company's underlying attributable profit fell by 26% to $10.16 billion [2], marking its weakest performance since 2020 [1]. This decline was primarily attributed to lower prices for iron ore and coal, which are significant contributors to the company's revenue.

Iron ore prices remained under pressure due to oversupply concerns and slowing demand from China [1]. Despite this, BHP's iron ore production set a record at its Western Australia Iron Ore (WAIO) mines, reinforcing its status as a low-cost major producer [2]. Additionally, the company's copper output exceeded 2 million tonnes for the first time, contributing nearly half of group earnings [2].

BHP's revenue slipped 8% to $51.3 billion, and the company declared a final dividend of 60 cents a share, bringing the total annual payout to $1.10 per share [2]. This was a reduction from the previous year's final dividend of 74 cents per share [3]. The company's net profit rose to $9.02 billion, up from $7.90 billion a year earlier, driven by higher copper prices [3].

The company's net debt increased to $12.92 billion at June 30, 2025, up from $9.12 billion a year ago [3]. BHP has revised its net-debt target to between $10 billion and $20 billion, reflecting an improvement in its underlying portfolio [3].

Despite the mixed financial performance, BHP's shares rose over 2% as iron ore prices jumped, driven by increased demand and supply constraints [1]. The company's sales are geographically distributed across various regions, including Australia, China, Japan, and India [1].

References:
[1] https://www.mining.com/web/bhps-full-year-profit-plunges-26/
[2] https://www.hellenicshippingnews.com/bhp-reports-lower-fy-profit-on-weak-iron-ore-coal-prices/
[3] https://www.morningstar.com/news/dow-jones/202508188670/bhp-underlying-earnings-fall-on-lower-iron-ore-coal-prices-update