BHP Results for the half year ended 31 December 2020
The Financial Report set out on pages 35 to 55 for the half year ended 31 December 2020 has been
prepared on the basis of accounting policies and methods of computation consistent with those applied in the 30 June 2020 financial statements contained within the Annual Report of the Group, with the exception of new accounting standards and
interpretations which became effective from 1 July 2020 an other changes in accounting policies applied with effect from 1 July 2020. This news release including the Financial Report is unaudited. Variance analysis relates to the relative
financial and/or production performance of BHP and/or its operations during the December 2020 half year compared with the December 2019 half year, unless otherwise noted. Operations includes operated and
non-operated assets, unless otherwise noted. Medium term refers to our five year plan. Numbers presented may not add up precisely to the totals provided due to rounding.
The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); barrels of oil equivalent (boe); billion
tonnes (Bt); cost and freight (CFR); cost, insurance and freight (CIF), carbon dioxide equivalent (CO2-e), dry metric tonne unit (dmtu); free on board (FOB); giga litres (GL); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre
(m); million barrels of oil equivalent (MMboe); million barrels of oil equivalent per day (MMboe/d); thousand cubic feet equivalent (Mcfe); million cubic feet per day (MMcf/d); million ounces per annum (Mozpa); million pounds (Mlb); million tonnes
(Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand ounces per annum (kozpa); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per
annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); total recordable injury frequency (TRIF); and wet metric tonnes (wmt).
The following footnotes
apply to this Results Announcement:
(i)
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We use various alternative performance measures to reflect our underlying performance. For further information
on the reconciliations of certain alternative performance measures to our statutory measures, reasons for usefulness and calculation methodology, please refer to alternative performance measures set out on pages 63 to 74.
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(ii)
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FY21 and medium-term unit cost guidance are based on exchange rates of AUD/USD 0.70 and USD/CLP 769.
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(iii)
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We use various key indicators to reflect our sustainability performance. For further information on the reasons
for usefulness and calculation methodology, please refer to Definition and calculation of Key Indicator terms set out on pages 75 to 79.
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(iv)
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Amounts spent are converted to USD based on actual transactional (historical) exchange rates related to Renova
funding. Amounts yet to be spent are converted to USD based on 31 December 2020 exchange rates.
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(v)
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Copper equivalent (Cueq) production based on 2020 financial year average realised commodity prices, refer page
17. The calculation applied the following formula: Cueq= S(commodity production tonnes x (commodity price/copper price)).
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(vi)
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Maintenance capital includes non-discretionary spend for the following
purposes: deferred development and production stripping; risk reduction, compliance and asset integrity.
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(vii)
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Permit: EIA - ASEA/UGI/DGGEERNCM/0122/2018, expedient 28TM2018X0042. CNH Revised Appraisal Plan
ApprovalResolucion CNH.14.001/2020
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Forward-looking statements
This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for
commodities; production forecasts; plans, strategies and objectives of management; closure or divestment of certain assets, operations or facilities (including associated costs); anticipated production or construction commencement dates; capital
costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; and tax and regulatory developments.
Forward-looking statements may be identified by the use of terminology, including, but not limited to, intend, aim,
project, anticipate, estimate, plan, believe, expect, may, should, will, would, continue, annualised or
similar words. These statements discuss future expectations concerning the results of assets or financial conditions, or provide other forward-looking information.
These forward-looking statements are based on the information available as at the date of this release and are not guarantees or predictions of future
performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. BHP
cautions against reliance on any forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with
COVID-19.
For example, our future revenues from our assets, projects or mines described in this release will be
based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a
particular project, the expansion of certain facilities or mines, or the continuation of existing assets.
Other factors that may affect the actual
construction or production commencement dates, costs or production output and anticipated lives of assets, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable
markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in the countries where we sell our products and in the countries where we are exploring
or developing projects, facilities or mines, including increases in taxes; changes in environmental and other regulations, the duration and severity of the COVID-19 pandemic and its impact on our business;
political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHPs filings with the U.S. Securities and Exchange Commission (the SEC) (including in Annual Reports on Form 20-F) which are available on the SECs website at www.sec.gov.
Except as required by applicable regulations or by
law, BHP does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events.
Past
performance cannot be relied on as a guide to future performance.
No offer of securities
Nothing in this release should be construed as either an offer, or a solicitation of an offer, to buy or sell BHP securities in any jurisdiction, or be treated
or relied upon as a recommendation or advice by BHP.
Reliance on third party information
The views expressed in this release contain information that has been derived from publicly available sources that have not been independently verified. No
representation or warranty is made as to the accuracy, completeness or reliability of the information. This release should not be relied upon as a recommendation or forecast by BHP.
No financial or investment advice South Africa
BHP does not provide any financial or investment advice as that term is defined in the South African Financial Advisory and Intermediary Services
Act, 37 of 2002, and we strongly recommend that you seek professional advice.
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