After a strong run does BHP still command a buying position?

BHP reported strong operational performance throughout the nine months ended 31 March 2026 despite weather and cost burdens.

BHP Group Ltd (ASX: BHP) 

on 22 April 2026 shared its operational review for the nine months ended 31 March 2026. The company achieved strong operating results across copper and iron ore operations. Record material mined and concentrator throughput were achieved at Escondida while WAIO delivered record production. 

Copper production guidance for FY26 is now expected to finish in the upper half of the company range due to strong contributions from Escondida and Antamina. Iron ore guidance remains on track for the financial year. 

Samarco is also expected to reach the top end of its FY26 production target range. The company stated that its diversified portfolio and low-cost operations helped manage higher industry costs linked to energy and consumables during the Middle East conflict.

Growth Projects and Asset Progress

The company continued advancing several copper growth projects during the quarter. In March 2026, BHP submitted the Environmental Impact Declaration license request for the Escondida New Concentrator project which forms a main part of the mine expansion program. Resolution Copper in Arizona also reached an important stage after completing a land exchange process.

This allows the joint venture to move forward with additional drilling activities and early underground development work connected to one of the world’s largest undeveloped high-grade copper resources. 

During the same period the company strengthened its financial position by realising about US$4.8 billion through the Antamina silver streaming transaction and completion of the Carajas divestment together with earlier proceeds received from Blackwater and Daunia sales.

Outlook

FY26 unit cost guidance improved at Escondida while BMA is now expected to finish at the top end of its cost range. Guidance for other assets remained unchanged. The company stated it continues monitoring pressure from higher diesel prices consumable costs and currency movements across operations. 

Copper production at Spence is now expected in the lower half of guidance because of ongoing challenges linked to variable ore characteristics that affected processing and recovery performance. In contrast stronger output at Escondida and Antamina supported the improved overall copper outlook for the group.

Quarterly Performance Update – Q3 FY26 vs Q2 FY26

During Q3 FY26 copper production declined at Escondida because of planned lower ore grades. Spence also recorded weaker output due to difficult ore conditions and lower grades stacked at the leach pad. These impacts were partly balanced by improved production at Copper SA and stronger performance from Antamina. 

Steelmaking coal production decreased after heavy rainfall caused by Tropical Cyclone Koji restricted pit access and affected stripping activity and yields. 

Iron ore production at WAIO was lower because Tropical Cyclones Mitchell and Narelle disrupted port activity and led to operational changes and additional maintenance work. 

Energy coal output also declined due to lower bypass coal reduced wash plant feed weaker yields mine sequencing planned maintenance and poor weather conditions.

(Source: Company Report)