BHP Group (BHP) shares slipped in premarket trading Tuesday after the mining giant reported its second-quarter and first-half fiscal 2026 results, though the company delivered some notably optimistic news about its copper outlook.

Mixed Production Picture

Copper production declined 4% year-over-year to 490.5 kt in the quarter, with the Escondida mine down 7% and Pampa Norte falling 13%. Quarter-over-quarter, copper output dropped 1% due to planned lower grades at Escondida.

Iron ore told a different story. Production climbed 5% year-over-year to 69.7 Mt and jumped 9% sequentially, driven by increased output at WAIO thanks to improved supply chain performance. Steelmaking coal production fell 3% to 4.3 Mt in the quarter.

For the first half of fiscal 2026, copper production came in at 984.1 kt, essentially flat year-over-year, while iron ore output rose 2% to 133.8 Mt.

Record Performance Despite Headwinds

CEO Mike Henry highlighted the bigger picture: "BHP delivered another half of very strong performance with operational records at our copper and iron ore assets. This was achieved safely and in a positive commodity price environment, with copper prices up 32% and iron ore prices 4% higher year on year."

Henry noted that China's commodity demand continues showing resilience, supported by targeted policy measures and robust export activity, even as growth cooled in the second half of calendar 2025, particularly in construction, manufacturing, and infrastructure spending.

India is increasingly picking up the slack, he said, with strong domestic activity lifting steel consumption and accelerating copper usage. With global economic growth projected at around 3% in 2026, the outlook for commodities remains constructive.

Raised Guidance and Long-Term Vision

BHP revised its fiscal 2026 copper production guidance upward to 1,900-2,000 kt from the previous range of 1,800-2,000 kt. The company maintained its iron ore production guidance at 258-269 Mt.

The raised copper guidance positions the company to better benefit from record copper prices, which are being supported by resilient demand alongside supply disruptions affecting several competitors, the company said.

Henry explained that the revised outlook reflects stronger-than-expected performance across the asset base. Escondida, the company's flagship copper operation, delivered record concentrator throughput, prompting an upward revision to the mine's fiscal 2026 production guidance range.

Antamina has also increased its production guidance, while Spence and Copper SA remain on track, with Copper SA posting record refined gold output. In iron ore, WAIO achieved record production and shipments in the first half, leaving the business well positioned ahead of the seasonally wetter third quarter, Henry said.

Looking further out, Henry added that BHP is entering the second half of fiscal 2026 with solid operational momentum and is positioning for long-term growth through a sizeable copper development pipeline, targeting roughly 2 million tons of attributable copper production in the 2030s.

BHP will report full second-quarter results on February 17, 2026.

BHP Price Action: BHP Group shares were down 1.63% at $63.80 during premarket trading on Tuesday.