Mining giant BHP digs deep as profits crash

BHP’s full-year profits fell to a five-year low, with free cash flow more than halved - a sharp reminder of the challenges facing even the biggest players in the mining sector.

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The drop was largely driven by weaker iron ore and coal prices, though copper helped cushion the blow.

Despite the softer numbers, BHP’s share price nudged higher following the release.

That reaction might seem counter-intuitive, but it reflects confidence in the group’s broader strategy. BHP opted to pay out a higher proportion of profits to shareholders and widened its net debt target range — two signals that management sees strength in the underlying business.