BHP Group Limited (NYSE:BHP) shares are up during Friday’s premarket session as the company is exploring pathways to unlock additional copper supply in the U.S.
This positive movement comes as BHP has signed a non-binding letter of intent with Faraday Copper Corp. to potentially restart the San Manuel copper mine in Arizona, which could enhance the U.S. copper supply chain.
The latest development follows BHP’s move to secure a $4.3-billion silver streaming deal with Wheaton Precious Metals Corp., marking the largest precious-metals streaming transaction ever based on upfront value.
Regarding the letter of intent with Faraday Copper, BHP’s Chief Development Officer, Catherine Raw, expressed optimism about the collaboration, stating that it aims to support U.S. objectives for greater copper supply chain resilience and economic development in the Pinal County region.
The agreement outlines that Faraday would acquire 100% of BHP’s San Manuel property, with BHP receiving a 30% equity interest in Faraday and participating in future equity raises up to a maximum of $20 million over two years.
The broader market experienced slight declines on the previous trading day, with the Nasdaq down 0.05% and the S&P 500 falling 0.03%. BHP’s stock is moving positively despite these broader market trends, indicating that the news surrounding the potential copper supply expansion is resonating well with investors.
Technical Analysis
BHP shares have increased 44.06% over the past 12 months, reflecting strong performance. Currently, the stock is trading 5.6% above its 20-day simple moving average (SMA) and 24.1% above its 100-day SMA, indicating robust short-term strength.
The RSI is at 65.45, which is considered neutral territory, while the MACD shows a bullish signal with a value of 2.6724, above its signal line at 2.5931. This combination suggests that while the stock is nearing overbought territory, there is still upward momentum.
- Key Resistance: $75.50
- Key Support: $60.50
The current news about the collaboration with Faraday Copper is significant as it highlights BHP’s commitment to expanding its copper operations, which are crucial for meeting rising global demand.
This strategic move could enhance BHP’s competitive position in the copper market, especially as the demand for copper continues to grow in various sectors, including renewable energy and electric vehicles.
Earnings & Analyst Outlook
The countdown is on: BHP Group is set to report earnings on March 3, 2026.
- EPS Estimate: 200 cents (Down from 200 cents YoY)
- Revenue Estimate: $25.18 Billion (Down from $25.18 Billion YoY)
- Valuation: P/E of 21.2x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $51.33. Recent analyst moves include:
- Argus Research: Upgraded to Buy (Target $68.00) (Dec. 30, 2025)
- Citigroup: Downgraded to Neutral (Aug. 20, 2025)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for BHP Group Limited American Depositary Shares (Each representing two Ordinary Shares), highlighting its strengths and weaknesses compared to the broader market:
- Value: 67.56 — The stock is fairly valued relative to its peers.
- Quality: 40.92 — Indicates some weaknesses in financial health.
- Momentum: 86.99 — Stock is outperforming the broader market.
The Verdict: BHP Group’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market. However, the lower quality score suggests that investors should be cautious and monitor financial health closely.
Top ETF Exposure
- Optica Rare Earths & Critical Materials ETF (NYSE:CRIT): 9.90% Weight
Significance: Because BHP carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
BHP Price Action: BHP Group shares were up 0.17% at $75.20 during premarket trading on Friday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
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