UPDATE: The BHP Group Ltd (ASX: BHP) has seen its share price soar nearly 7% in July 2025, significantly outpacing the benchmark S&P/ASX 200 Index, which returned just 2.35%. This surge is linked to key developments in the mining sector and a strategic shift in investor focus.
Investors are reportedly rotating out of banking stocks and into mining and healthcare stocks, as evidenced by the 3.7% decline in the Commonwealth Bank of Australia’s (ASX: CBA) share price over the same period. This shift underscores a growing confidence in the mining sector as a safer investment amidst economic uncertainty.
Another critical factor driving BHP’s impressive performance was the release of a robust quarterly update. BHP announced it achieved production growth across all key commodities, culminating in record outputs of 263 million tonnes (Mt) of iron ore and 2,016.7 kilotonnes (kt) of copper for FY 2025. Specifically, copper production surged by 8%, highlighting the company’s operational strength.
“BHP delivered record iron ore and copper production, demonstrating the strength and resilience of our business,” said BHP CEO, Mike Henry. “This underpins our ability to deliver growth and returns to shareholders amid global volatility and uncertainty.”
Henry further elaborated on the optimistic outlook for commodities, stating, “Commodity demand globally has remained resilient so far in 2025. This resilience is largely due to China’s ongoing ability to grow its export base, despite a significant decline in exports to the USA, alongside strong domestic demand.”
Broker responses to BHP’s performance have been overwhelmingly positive. Morgan Stanley has set an overweight rating with a price target of $44.00, suggesting a potential 12% upside from the current share price of $39.22. Similarly, Morgans has issued an accumulate rating with a target of $43.90, while Citi has placed a buy rating with a target of $43.00.
These ratings indicate that market analysts believe it is not too late for investors to enter, anticipating that BHP’s gains will continue in the coming months.
As the mining sector experiences a resurgence, stakeholders are closely watching BHP’s next moves and the overall market reaction. The strong quarterly results and favorable broker ratings may signal a new phase of growth for BHP and the wider mining industry.
Stay tuned for more updates on this developing story, as BHP’s performance could have significant implications for investors and the mining market at large.
