BHP’s Chief Financial Officer Vandita Pant said at the Macquarie Australia Conference in Sydney on Wednesday that the miner is seeing fresh interest from international generalist investors who are attracted to the company’s exposure to copper as artificial intelligence-related demand strengthens that metal’s outlook.
Pant pointed to a noticeable shift in the company register since the half-year results were released, saying that more international generalist investors have been adding BHP to their holdings. The company reported a half-year underlying profit that beat expectations, driven by copper - which for the first time contributed more to BHP’s earnings than iron ore as prices for the red metal rose on demand tied to AI-related activity.
"They like electrification like AI, but they don’t want to pick winners. They are going upstream and saying where’s the bottleneck? Copper is a bottleneck. Who do we invest in where the downside risk can be cut, but we still have exposure to this upside. And for them, BHP seems like a good choice."
Pant’s comments followed a period of share-price volatility for BHP. The stock climbed to a record on March 2 before retreating amid a broad mining sector selloff after the escalation of hostilities in Iran, although it has since recovered some of those losses.
Investor interest in base metals has been underlined by major fund managers who, according to market participants, are predicting a sustained rally in mining and metals. That view is being supported by what fund managers say is the fastest pace of inflows into the sector in years, driven by three factors: the build-out of AI infrastructure, rising defence spending and a rotation away from higher-priced technology stocks.
For BHP, the combination of a stronger-than-expected half-year profit and the reweighting of portfolios toward commodities considered critical to electrification and AI appears to be encouraging a broader set of investors to take positions in the company. Pant’s remarks at the conference highlighted how some investors are seeking firms that offer exposure to potential upside while mitigating downside risk.
Market participants cited by investors describe the current flows into mining and metals as notable in speed and scale, linking that momentum to demand dynamics in AI infrastructure and broader shifts in investment strategy.
Note: The article reports comments made at the Macquarie Australia Conference in Sydney and reflects company-reported half-year results and subsequent market reactions as described by company executives and market participants.