ASX 200 mining stock S32 overshadowing BHP?
BHP is a dominant force and one of the biggest giants on the ASX but there is another mining stock that might deliver superior returns in 2026.
BHP Group Limited (ASX: BHP)
has surged 7% in the past one month with the help of its first half production update which was released on 20 January 2026.
Iron ore production increased by 2% to 134 million tonnes in the first half of FY26 which was supported by record shipments at its Western Australia Iron Ore operation.
This improvement in output has supported sentiment around the stock and suggests operational stability across its core assets.
It may not require a major catalyst for the share price to move further this year which could happen if the Australian dollar strengthens or if the broader commodities cycle improves.
There is another ASX mining stock could deliver better gains over the next 12 months.
South32 Limited (ASX: S32)
has had a phenomenal run in the past one month with the help of lower US interest rates and reduced confidence in the strength of the US dollar which pushed investors towards gold, silver and copper.
The company has exposure to bauxite, aluminium, copper, silver, lead, zinc, nickel, manganese and metallurgical coal which gives it broad exposure across several minerals and metals.
Its exposure to precious metals and base metals which have solid demand could support faster earnings growth compared to BHP which remains largely dependent on iron ore.
In its December 2025 quarterly update released on 22 January 2026, South32 maintained FY26 production guidance across all operated assets with first half unit costs tracking in line with or below expectations.
Alumina production rose by 3% and aluminium output increased by 2% in the December 2025 half year while manganese production surged by 58% as Australia Manganese returned to normal levels.
During the half year the company returned US$152 million to shareholders through dividends and buybacks, and if commodity demand and prices remain firm, South32 could grow at a faster pace than BHP in 2026.
(Source: Company Announcements)
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