'World's Largest Mining Company' BHP Declares $7.6 Billion Semiannual Dividend

[Asia Economy Reporter Kim Hyunjung] The world's largest mining company BHP has declared a semi-annual dividend of $7.6 billion (approximately 9.1139 trillion KRW), supported by the forecasted increase in demand for transition metals, the Financial Times reported on the 14th (local time).

BHP generates most of its revenue by producing iron ore, a steel raw material, from mines in the Pilbara region of Western Australia. Mike Henry, CEO, who hopes that by 2030 half of BHP's revenue will come from such 'future-facing commodities,' stated that the company has various means to deliver growth and increase shareholder value.

CEO Henry referred to the recent BHP deal to invest in and support the development of the Tanjarina nickel project, saying, "Exploration and entry are underway," and "We will seek opportunities at the right time and at the right price."

He mentioned BHP's continuous operating revenue of $30.5 billion after announcing a profit of $9.7 billion, a 57% increase compared to the same period in 2021. This result surpassed market expectations.

The company had announced last December that it would pay a record-high interim dividend of $1.50 per share. Net debt at the end of December was $6.1 billion, down from $11.8 billion in the same period last year.

The company announced a new target range for net debt of $5 billion to $15 billion, mentioning that it can exercise flexibility to return cash to shareholders.

Tyler Broda, RBC Capital Markets analyst, explained, "The management not only drove a successful integration but also had a very financially solid half-year," adding, "The group has left room for future M&A or cash returns."

This content was produced with the assistance of AI translation services.