BHP Group Limited (BHP): history, ownership, mission, how it works & makes money

A Brief History of BHP Group Limited (BHP)

Foundation and Early Years

BHP was founded in 1885 in Broken Hill, New South Wales, Australia. It started as a silver and lead mining company.

In 1915, BHP established its first refining operations in Australia, marking its expansion into mineral processing.

Merger and Growth

In 2001, BHP merged with Billiton, a UK-based mining company, creating BHP Billiton, one of the largest mining companies globally.

In 2015, BHP Billiton rebranded itself as BHP, simplifying its name to reflect its dual origins.

Key Operations and Commodities

BHP is involved in the extraction and processing of various commodities, including:

• Iron ore
• Copper
• Coal
• Potash
• Nickel

Financial Performance

For the fiscal year ending June 30, 2023, BHP reported:

Recent Developments

BHP has recently focused on sustainability and carbon-neutral goals, committing to reduce operational emissions by 30% by 2030.

In 2022, the company announced a $2.4 billion investment in potash projects to diversify its portfolio.

Global Presence

BHP operates in various countries, including:

• Australia
• Chile
• United States
• Canada
• Peru

Workforce and Employment

As of June 2023, BHP had approximately 80,000 employees worldwide, with significant operations in Australia and the Americas.

Stock Performance

The BHP stock price (ASX: BHP) was approximately AUD 48.85 as of October 2023.

The company is a component of the ASX 200 index and consistently ranks among the top companies by market capitalization.

Environmental and Social Initiatives

BHP has committed to various initiatives focused on:

• Reducing water usage
• Protecting biodiversity
• Community engagement and development

In 2022, BHP spent approximately $1.5 billion on community and sustainability initiatives.

Challenges and Controversies

BHP has faced challenges, including environmental concerns and operational issues related to mining practices.

The 2015 Samarco dam disaster in Brazil, a joint venture with Vale, led to significant scrutiny, resulting in over $2.5 billion in settlement costs.

A Who Owns BHP Group Limited (BHP)

Ownership Structure

BHP Group Limited (BHP) is one of the largest mining companies in the world, and its ownership is diverse, comprising institutional investors, mutual funds, and individual shareholders. As of the latest reports, approximately 90% of BHP's shares are held by institutional investors.

Top Shareholders

The following table outlines the major shareholders of BHP as of September 2023:

Geographical Distribution of Shareholders

BHP's shareholders are globally distributed, with significant ownership concentrated in specific regions. The geographical distribution is as follows:

Recent Share Performance

BHP's share performance is tracked closely by investors and can fluctuate based on several market factors. As of October 2023, BHP's stock price is approximately AUD 48.00 per share. The company has experienced a year-to-date return of approximately 15%.

Market Capitalization

BHP's market capitalization stands at around AUD 130 billion. This valuation ranks BHP among the top mining companies globally.

Dividend Policy

BHP has maintained a consistent dividend policy, paying dividends semi-annually. For the financial year ending June 2023, BHP declared a total dividend of AUD 3.50 per share.

Institutional Investor Trends

Recent trends show that institutional ownership has been steadily increasing, reflecting a sustained interest from funds in the mining sector, particularly in relation to commodities like copper and iron ore.

Ownership Changes

In the past fiscal year, there were notable shifts in ownership, with BlackRock increasing its position by approximately 1.2%, while Vanguard and State Street have also reported incremental increases in their holdings.

BHP Group Limited (BHP) Mission Statement

Overview

BHP Group Limited (BHP) is a global resources company headquartered in Melbourne, Australia. The company's mission is to create long-term value through the discovery, acquisition, development, and marketing of natural resources. It commits to sustainable practices that benefit stakeholders and the environment.

Core Values

Underpinning BHP's mission are its core values, which include:

• Integrity: Adhering to ethical principles.
• Accountability: Taking responsibility for actions and outcomes.
• Respect: Valuing diversity and fostering inclusiveness.
• Collaboration: Working together to achieve common goals.
• Excellence: Striving for high standards in operations.

Financial Performance

As of the latest financial results in FY2023, BHP reported:

Environmental Commitment

BHP aims to reduce its greenhouse gas (GHG) emissions by 30% by 2030 from a FY2020 baseline. The company has set aside approximately $400 million annually for sustainable development initiatives.

Community Engagement

BHP invests significantly in community programs, with a commitment of $100 million annually. In FY2022, the company engaged with over 100 communities worldwide.

Global Reach and Operations

BHP operates in over 90 locations across 15 countries. The company's key operations include:

• Iron Ore
• Copper
• Coal
• Petroleum

Key Strategic Goals

BHP's strategic goals emphasize:

• Safety: Achieving zero harm in the workplace.
• Sustainability: Leading in responsible mining and resource development.
• Innovation: Investing in technological advancements to improve efficiency.
• Growth: Expanding in markets with high demand for resources.

Investment in Technology

BHP invests approximately $300 million annually in technology and innovation. This includes advancements in mineral processing and digital transformation strategies.

Conclusion

BHP's mission is aligned with a commitment to environmental, social, and governance (ESG) principles, making it a leader in the global resources sector.

How BHP Group Limited (BHP) Works

Company Overview

BHP Group Limited is a global resource company headquartered in Melbourne, Australia. It is one of the world's largest mining companies and is involved in the extraction of various natural resources.

Core Operations

BHP operates through several segments, including:

• Minerals: Iron ore, copper, and coal
• Petroleum: Oil and gas exploration and production
• Potash: Fertilizer production

Financial Performance

For the financial year ending June 30, 2023, BHP reported:

• Revenue: $67.03 billion
• Net Profit: $14.41 billion
• Operating Cash Flow: $23.58 billion
• Dividends: $9.19 billion

Market Capitalization

As of October 2023, BHP's market capitalization is approximately $202 billion.

Production Volumes

BHP's production volumes for the year 2022-2023 are as follows:

Geographic Presence

BHP's operations are spread across several countries, including:

• Australia
• Chile
• United States
• Canada
• South Africa

ESG Initiatives

BHP takes its environmental, social, and governance (ESG) responsibilities seriously. In 2023, BHP invested approximately $1.5 billion in sustainable development projects.

Stock Performance

Over the last five years, BHP's stock price has demonstrated the following performance:

Future Outlook

BHP anticipates a steady demand for its key commodities, particularly as the world transitions to renewable energy sources. Analysts project a compound annual growth rate (CAGR) of 4% for iron ore and copper over the next five years.

How BHP Group Limited (BHP) Makes Money

Revenue Streams

BHP Group Limited generates revenue primarily through the extraction and processing of natural resources. The major components of its revenue streams are:

• Iron Ore
• Copper
• Coal
• Petroleum

Iron Ore Production

Iron ore is the largest contributor to BHP's revenue. In the financial year ending June 30, 2023, BHP reported:

Copper Production

Copper is another significant revenue generator for BHP. The company's copper production and revenues for 2023 are as follows:

Coal Production

Coal also plays a critical role, especially in the energy sector. BHP's coal-related figures for 2023 are:

Petroleum Production

Petroleum operations, including oil and gas, contribute a substantial part of BHP's revenue. The 2023 figures are:

Market Dynamics and Pricing

The pricing of BHP's commodities is heavily influenced by global market dynamics. Key factors include:

• Global demand from countries like China
• Supply chain disruptions
• Geopolitical factors affecting commodity prices

Cost Management

BHP employs various strategies to manage operational costs, which include:

• Investing in technology
• Improving supply chain efficiencies
• Optimization of energy use

Financial Performance Indicators

For the financial year ending June 30, 2023, BHP's key financial metrics included:

Future Outlook

BHP Group Limited continues to focus on sustainability initiatives and exploring new markets to enhance its profitability. Key areas of focus include:

• Investments in renewable energy sources
• Exploration of new mining projects
• Enhancing operational efficiencies