BHP Just Reached A Record High as Copper Becomes Its Biggest Earner for the First Time

BHP just reached a record high, and copper is the cause! BHP Group (ASX: BHP) surged more than 7% to a fresh all-time high of A$54.20 on Tuesday before settling at A$52.74 after delivering half-year results that beat expectations. Revenue rose 11% to US$27.9 billion, profit jumped 28% to US$5.64 billion, and the board declared a bumper interim dividend of US$0.73 per share, up 46% on the prior period.

The real headline was copper. For the first time ever, BHP’s copper operations generated more than half of group earnings, a milestone that signals a fundamental shift in what kind of company BHP is becoming. After rallying 57% from its April 2025 lows, the question shifts from “can BHP perform?” to “how much is already priced in?”

What are the Best ASX Mining Stocks to invest in right now?

Check our buy/sell tips

BHP Just Reached a Record High Thanks To Its Well-Timed Copper Pivot

This result is more than just a strong quarter. Copper crossing 51% of group EBITDA means BHP is no longer just an iron ore miner that happens to produce copper. It is becoming a copper company that also mines iron ore.

For investors, this distinction matters because copper-focused miners tend to attract higher valuations, thanks to the metal’s long-term demand story tied to electrification, renewable energy, and AI data centres. There is a literal term ‘copper crunch’ alluding to the forthcoming gap between supply and demand, driven not just because of demand but because of the lack of supply given a lack of new mines and an abundance of existing producing mines nearing the end of their lives.

But back to BHP and the company’s management has backed its shift to copper by upgrading FY26 copper production guidance to 1.9 to 2.0 million tonnes and targeting a 40% increase in copper output by 2035. To fund growth without diluting shareholders, BHP struck a US$4.3 billion silver streaming deal with Wheaton Precious Metals, monetising a non-core byproduct from its Antamina mine in Peru. Combined with a separate infrastructure deal, the company expects to unlock over US$6 billion in cash. We believe this kind of smart capital recycling is exactly what long-term investors want to see.

Wheaton Silver Deal Unlocks Cash Without Diluting Shareholders

The Wheaton agreement deserves a closer look because it highlights how BHP is thinking differently about its portfolio. Rather than selling assets or raising equity, management chose to stream silver, a commodity outside BHP’s core strategy, in exchange for a massive upfront payment.

This is the largest precious metals streaming transaction ever based on upfront value. It allows BHP to reinvest in high-return copper and potash projects while keeping its share count unchanged. With capital expenditure guidance steady at around US$11 billion per year through FY27, management is clearly confident it can fund growth from cash flows and deals like this, rather than asking shareholders to foot the bill.

The Investor’s Takeaway

The bull case remains strong. Copper prices are trading near US$13,000 per tonne, production is growing, and AI-driven power demand is creating a new tailwind. Management forecasts roughly 3% global GDP growth in 2026, and the balance sheet looks solid. However, after such a big run, the valuation leaves less room for error. Analyst consensus reflects this tension, with just 4 buy ratings against 8 holds and 1 sell. Key risks include potential softness in Chinese iron ore demand and a stronger Australian dollar squeezing export margins.

In our view, even though BHP just reached a record high, the company remains a core holding for existing investors who should sit tight and collect the dividend. For new buyers, the easy gains have likely been made. We’d suggest watching for a pullback toward the A$48 to A$50 range for a better entry point. The earnings are excellent, and the strategy is working, but at all-time highs, patience may be the smarter play.