BHP shares rallied approximately 3 per cent in morning trade on Thursday, reaching a new 52-week high and nearing the $50 milestone. The Big Australian’s stock price hit an intraday high of $49.49 before settling slightly lower, trading up by 2.8 per cent to $49.46. While impressive, this remains shy of its all-time high of $50.84, achieved on December 28, 2023.
BHP is a leading global resources company that extracts and processes minerals, oil, and gas from its operations primarily in Australia and the Americas. It is one of the world’s largest producers of iron ore, copper, and metallurgical coal. The stock’s strong performance reflects a broader trend, with an 8 per cent increase since the start of the year. This surge is attributed to a rotation into mining stocks, fuelled by record prices for key metals including copper, silver, platinum, and gold.
Multiple factors are driving the metals price boom, including rising geopolitical uncertainty, concerns about supply chain disruptions, and the potential for a weaker US dollar. Thursday’s gains have pushed BHP’s market capitalisation to $251.2 billion. This places it in close competition with Commonwealth Bank, valued at $253.78 billion, for the title of the ASX’s largest company.
The resources sector continues to benefit from strong commodity prices, positioning BHP for potential further gains should current market conditions persist. Investors are closely watching to see if BHP can surpass its all-time high and overtake Commonwealth Bank in market capitalisation.
