H1 profitability missed street expectations. There was broad-based normalisation – due to reversing pricing excesses and/or intensifying cost headwinds. Interim dividend was slashed. While iron ore and copper have recovered materially (fuelling H2 expectations) – banking on Chinese reopening opportunities, there are vulnerabilities – high exposure to (Chinese) steel markets, and operational risks in LatAm. Also, even though BHP is a strong large-cap miner, it remains to be seen how well balance ....
