BHP Update Mixed as Jansen Costs Offset Strong Operations -- Market Talk

Dow Jones01-20

0156 GMT - Operationally, BHP delivered a clean 2Q, with beats on both iron ore and copper production, says RBC Capital Markets analyst Kaan Peker. Copper also "beat hard on price, and FY26 copper guidance was formally upgraded," which should result in upgrades to consensus earnings estimates, Peker says. He notes that Escondida and Western Australia Iron Ore continue to perform well, and that Copper South Australia continues to show signs of stability. The key offset is Jansen Stage 1 capex that has been revised higher to US$8.4 billion, roughly US$1 billion above RBC's forecast, Peker says. "Alongside working-capital outflows, this pressures near-term FCF [free cash flow] but balance sheet strength remains intact," he says. RBC has a sector perform rating and a target price of A$49.00 on BHP. The stock is down 1.5% at A$48.01 a share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

January 19, 2026 20:56 ET (01:56 GMT)

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