The BHP Group Ltd (ASX: BHP) share price is under the spotlight after reporting its solid FY26 fourth quarter.
BHP is one of the largest miners in the world with its iron ore and copper operations. It’s also exposed to coal and potash.
BHP June 2026 quarter
The mining giant reported that for the three months to 30 June 2026, it produced 491.9kt of copper, representing a 3% rise quarter on quarter but a 5% decline year on year.
BHP noted that for FY26, it delivered copper production of around 2mt for the second consecutive year, driven by strong performance at Escondida. However, copper production was 3% lower than FY25.
Turning to iron ore, BHP reported quarterly production of 68.1mt, representing 8% growth quarter on quarter and a 3% decline year on year. Annual iron ore production came to 264.7mt, up 1% year on year.
Steelmaking coal saw production increase 10% year on year to 5.7mt, while energy coal saw a 3% increase year on year to 4.2mt.
FY26 comments
The BHP CEO Brandon Craig noted that the business delivered its strong FY26 production figures with a backdrop of stronger resource prices for both copper and iron ore, with the copper price 35% higher than a year ago.
BHP also noted that cost control was particularly strong, with every asset expected to be within its unit cost guidance, despite the headwinds of inflation, higher diesel prices and global supply chain disruptions.
FY27 guidance
The business provided guidance for what it expects in the 2027 financial year. We’ll look at the main two commodities.
BHP expects to produce between 1,650kt to 1,800kt in FY27, down from 1,953kt in FY26.
Iron ore production for FY27 is guided to be between 260mt to 272mt, compared to 264.7mt in FY26.
Outlook for the BHP share price
The company highlighted that it continues to invest for growth, which will help its long-term value.
During the 2026 financial year, it progressed applications to restart Cerro Colorado in Chile, “defined development pathways for Copper South Australia, Escondida and Spence”, and expanded its future copper options in the US through progress at Resolution and the investment in Faraday, while Vicuña received RIGI approval. The Jansen potash project in Canada is “on track” to begin potash production next year, adding a new commodity and further diversifying is portfolio.
BHP is a great miner, but it has very limited control over resource prices. It performed well in terms of production and costs in FY26, but I’m pessimistic about what could happen with the iron ore price in the medium-term because of increasing African iron ore production and uncertain Chinese impacts, so the current BHP share price doesn’t appeal to me for a new investment. I’d be happy today if I were a long-term shareholder, though.
However, its growing copper portfolio is a pleasing development and can help the business deliver good, more consistent profits in the year ahead.
For now, there are other ASX dividend shares that I think would make better investments.
