Details Cookies
Important margin product information

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Cookie policy

This website uses cookies to offer you a better browsing experience by enabling, optimising and analysing site operations, as well as to provide personalised ad content and allow you to connect to social media. By choosing “Accept all” you consent to the use of cookies and the related processing of personal data. Select “Manage consent” to manage your consent preferences. You can change your preferences or retract your consent at any time via the cookie policy page. Please view our cookie policy here and our privacy policy here

background image
Video length: 8 minutes

Get To Know BHP, the world's biggest commodity stock

Jessica Amir
Market Strategist

Summary:  BHP is the world’s biggest mining company, with a $145 billion valuation and a strong and diverse revenue stream. From producing iron ore and copper, essential in industrializing the world, to producing coal and petroleum, for critical energy. BHP’s Chief Financial Officer, David Lamont, joins Saxo’s Strategist Jessica Amir to discuss how different the business will look in five years, with its major focus on providing copper, nickel and potash, essential to the green movement, and to keeping the world fed. Although BHP’s success over the decades has been underpinned by China’s urbanization, its future will soon hinge on the globes green transformation and demand for food production. Watch the interview and get to know the world’s biggest diversified commodity group in eight minutes.

If you prefer to read about BHP, instead of watching the 8 minute interview, see below 

BHP's earnings results, their best ever. What are the highlights?

In the 2022 financial year BHP made an outstanding $65.1 billion in revenue from selling iron ore, copper, coal, and petroleum to different regions across the globe. To the delight of shareholders, BHP recorded its highest ever gross profit of $23 billion, that’s a 26% jump on the prior result. The record result also meant BHP was able to pay out its highest ever dividend on record. Almost a 16% gross dividend yield. As we reported in our Quick Take, the stellar results was bolstered by a 271% jump in the thermal coal price, and a 43% spike in the nickel price. On top of that, BHP's financial results were also thickened by its partial sales of its oil and gas business to Woodside, and from selling some of its coal assets to Stanmore Coal. 

BHP is the world's largest iron ore producer, the 2nd largest copper producer & top four nickel producer, making it globally significant 

TodayBHP’s revenue is split from 58% iron ore, 27% from copper, the remaining revenue from coal and petroleum. Five years from now, BHP’s revenue split will look very different, with the company wanting to focus on producing more green metals, including copper and nickel, while BHP will also replace its fossil fuel income (coal and petrol) by pivoting to becoming the world’s leader in potash, essential for the food industry. In a separate  interview BHP's Chief Executive Officer Mike Henry said: the long-term outlook for copper, nickel and potash is really strong because of the “unstoppable global trends: decarbonization, electrification, population growth, increasing standards of living.”

In 2023 the world’s biggest miner sees commodity demand improving

As per our Quick Take notes, BHP sees China emerging as a source of stable commodity demand in the year ahead. BHP sees supply covering demand in the near-term for copper and nickel. This implies higher pricing can be expected given demand will likely grow quicker than supply. However, BHP says iron ore will likely remain in surplus through 2023. This implies iron ore pricing could remain contained. 

BHP's sales to China are soaring

Sales to China have been increasing for half a decade as China has drastically increased its demand for iron ore (the key element in steel). Today sales to China make up 65% of the business. And despite China saying it wants to produce its own iron ore, BHP says China does not have the resources to to do. Thus, China will likely remain dependent on other nations for the key steel ingredient. BHP sees its iron ore business growing in magnitude to cater for growing iron ore demand and sees its business growing from a 290 million tones business to a 330mt juggernaut. 

Industrial metal demand will keep growing

BHP affirmed that despite the global push to being carbon neutral, the world will still need iron ore. Specifically, In 30 years, the world will need 1.8 times more steel that it produces today. As for copper; BHP sees double the amount of copper being needed in the next 30 years (compared to today's global need). And double the amount of nickel will be needed too. BHP sees itself as being a major player in these markets. 

BHP's Green transformation

BHP’s push to ‘going green’ involves focusing on copper, nickel and potash. BHP sees these as being the key commodities of the future. David sees strong demand for all these of its key focus commodities in a decarbonized world. And ‘as the world needs to feed itself’ potash and fertilizer will play an important role. BHP will however continue to look at lithium and cobalt, however at the moment, it doesn’t see them fitting its portfolio. 

Why BHP is a favorite stock for many investors

In 2022 alone, BHP contributed $72 billion to the global economy. By market size its the 85th biggest company in the globe. It has one of the lowest price to earnings ratios, being 7.14 times (meaning its relatively cheap compared it what it earns). While it's historically produced one of the best dividends, paying a 16% dividend yield. In terms of share price performance, over the last five years its shares have risen 80% (as at the time of publishing August, 22, 2022). 

For more information on BHP, please head to the
Trading Screen and search BHP. 

To see how BHP compares to other commodity stocks, please head to Saxo's Commodity basket.  

<Please note, the video interview with David Lamont, was recorded on the day BHP handed down their financial results, Tuesday August 16 2022>


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.