BHP Group Ltd (ASX: BHP) shares are on the move on Friday morning.
At the time of writing, the mining giant's shares are up almost 2% to $39.93.
This follows the release of the Big Australian's fourth quarter and full year update before the market open.
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BHP shares higher on update
BHP reported production growth across all key commodities in the fourth quarter, which underpinned record iron ore and copper production for the full year.
In respect to copper, the miner posted a 2% quarter on quarter lift in production to 516.2kt. This led to BHP reporting an 8% increase in production to a record of 2,016.7kt in FY 2025.
It was a similar story for its iron ore production, which lifted 2% in the fourth quarter to 70.3Mt and then 1% to 263Mt for the year.
However, the market was expecting copper production of 499.7kt and iron ore production of 75.4Mt. This means that it beat with copper but fell short with iron ore.
Commenting on the performance of these assets, management said:
We exceeded the top end of our production guidance ranges at Escondida and NSWEC, while Spence, WAIO and BMA were all in the upper half of their production guidance ranges, and Copper SA achieved the mid-point of its revised production guidance (and was within its original guidance).
Elsewhere, fourth quarter steelmaking coal rose 5% to 5.1Mt and energy coal increased 8% to 4.1Mt. This compares unfavourably to consensus estimates of 4.6Mt and 3.6Mt, respectively.
Potash update
Failing to derail BHP shares today has been an update on its Jansen Potash project.
While it continues to make progress at the project, with JS1 now 68% complete, it estimates that the capital expenditure for the first stage will increase from US$5.7 billion into the range of US$7 billion to US$7.4 billion (including contingencies).
In addition, it advised that first production will revert to the original schedule of mid-2027.
Management advised that the estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and its current assessment of lower productivity outcomes over the construction period.
It plans to update the market on JS1's timing and optimised capital expenditure estimate in the second half of FY 2026.
In addition, given the potential for additional potash supply coming to market in the medium term, BHP is looking at pushing back the execution of stage two to FY 2031.
Management commentary
BHP's CEO, Mike Henry, was pleased with the miner's performance. He said:
BHP delivered record iron ore and copper production, which demonstrates the strength and resilience of our business and underpins our ability to deliver growth and returns to shareholders amid global volatility and uncertainty.
And speaking about its outlook, Henry adds:
Commodity demand globally has remained resilient so far in 2025. That resilience largely reflects China's ongoing ability to grow its overall export base despite a significant decline in exports to the USA, and its ability to deliver robust domestic demand despite the dislocation in the property sector. Copper and steel demand have benefited from a sharp acceleration in renewable energy investment, electricity grid build out, strong machinery exports and EV sales.
While slower economic growth and a fragmenting trading system remain potential headwinds, stimulus efforts by China and the USA would help to mitigate the near-term impact. Going forward, China's 15th 5-year plan is likely to provide more visibility on policies to sustain longer term growth and development.
