3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

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BHP Group Ltd (ASX: BHP) is the largest ASX mining share. Because resource prices are volatile, the business often experiences ups and downs. However, there are some great reasons to like the BHP share price.

Pleasingly for shareholders, the BHP share price has climbed by more than 10% since 23 June 2025. However, with a cyclical business, that could make the company less attractive to new investors. Its profitability is linked to the performance of commodity prices, so it's only likely to go so far.

As the chart below shows for the last five years, BHP is not trading near a high or a low point.

Considering the above, I'd consider the following factors if I were looking for positives to convince me to invest.

Record copper production

Copper will become increasingly crucial for the BHP share price as the business increases its copper production to address rising demand over the long term.

Copper is needed for several purposes, including expanding electrical grids, electric vehicles, wind farms, and so on.

In BHP's FY25 fourth quarter update, the business reported delivering record group copper production of over 2mt, up 8% year over year. This was driven by strong performance across all operated copper assets, including a 16% production increase at Escondida, record production at Spence and record quarterly (in the fourth quarter) production from copper SA.

If BHP can continue growing its copper production over time, I think this segment could generate larger profits and increasingly contribute to the BHP share price.

Strong performance in iron ore

Iron ore has been the key profit generator for the business over the years, and it continues to be integral to the overall success of the ASX mining share.

The company has little control over the iron ore price, which is heavily influenced by the level of demand from the Asian economic superpower, China. According to Trading Economics, the iron ore price is currently sitting around US$97 per tonne. That's still a good level for the business to generate solid profits.

BHP can influence its level of iron ore production. In the quarterly and annual FY25 production update, BHP said it delivered record iron ore production, with Western Australian Iron Ore production 290mt (on a 100% basis), overcoming the impacts of Tropical Cyclone Zelia and Tropical Storm Sean in the third quarter of FY25. The ramp-up of the second concentrator at Samarco, which was ahead of schedule, also contributed to its record iron ore production.

Resilient China?

I'd describe China as the primary customer for BHP, and the Asian country's economic strength is key for the miner's financials. So far, BHP is seeing resilience from China's economy. CEO Mike Henry said:

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.

Overall, I'm optimistic about how the BHP share price and dividend will fare if China remains stable.

While I'm not expecting another 10% rise in the miner's valuation in the next few months, I think it can produce pleasing shareholder performance.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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