Despite price volatility, BHP reports highest profit in over a decade

BHP's (BHP) full-year profit report is a fairly decent indicator of where the large end of the resource industry is now, according to Gavin Wendt from Mine Life. He said healthy earnings, cashflows, and dividends notwithstanding commodity price volatility and demand uncertainties. Gavin adds that RIO's competitor BHP has done substantially worse (RIO). In its rejected $6 billion offer for OZ Minerals, BHP touted record earnings thanks to increases in the price of coal and other commodities while refusing to rule out a second strategy (OZL). Following the announcement of a record dividend and a higher-than-anticipated 26% increase in earnings to $21.3 billion for the year ended June 30 - its highest level since 2011 - shares in the world's largest miner by market value increased 5.5%. With the challenges of a macroeconomic environment that is uncertain, fluctuating commodity prices, China's continued implementation of the zero COVID policy, the ongoing conflict in Russia and Ukraine, and high inflation, according to Gavin, BHP has shown that it is capable of generating record profits during what is likely the most challenging time ever for a mining company.