Page 25 - Annual Report 2020

1.5.2 Commodity performance overview 1

Strategic Report

Commodity prices Governance at BHP
The following table shows the prices for our most significant commodities for the years ended 30 June 2020, 2019 and 2018. These prices
Remuneration Report
represent selected quoted prices from the relevant sources as indicated and will differ from the realised prices due to differences in
quotation periods, quality of products, delivery terms and the range of quoted prices that are used for contracting sales in different markets.
For information on realised prices,
refer to section 1.11.

2020 2019 2018 2020 2019 2018 2020 vs 2019 Directors’ Report
Year ended 30 June Closing Closing Closing Average Average Average Average (9)
Natural gas Asian spot LNG (US$/MMBtu) 2.2 4.8 10.3 4.1 8.1 8.5 -50%
(1)
(2)
Crude oil (Brent) (US$/bbl) 41.8 66.1 77.9 51.5 69.0 63.6 -25%
Ethane (US$/bbl) 8.0 7.1 14.7 7.2 13.4 11.0 -46%
(3)
Propane (US$/bbl) 19.0 18.9 39.3 18.0 31.5 36.2 -43%
(4)
(5)
Butane (US$/bbl) 19.1 20.6 45.9 22.8 37.4 41.0 -39%
Copper (LME cash) (US$/lb) 2.7 2.7 3.0 2.6 2.8 3.1 -8%
Iron ore (US$/dmt) 101.1 118.0 64.5 93.2 80.1 69.0 16%
(6)
(7)
Metallurgical coal (US$/t) 116.0 193.5 199.0 143.9 204.7 203.0 -30%
Energy coal (US$/t) 51.2 68.8 117.3 64.5 99.4 100.2 -35%
(8)
Nickel (LME cash) (US$/lb) 5.8 5.7 6.8 6.4 5.6 5.6 13% Financial Statements
(1) Platts Liquefied Natural Gas Delivery Ex-Ship (DES) Japan/Korea Marker – typically applies to Asian LNG spot sales.
(2) Platts Dated Brent – a benchmark price assessment of the spot market value of physical cargoes of North Sea light sweet crude oil.
(3) OPIS Mont Belvieu non-Tet Ethane – typically applies to ethane sales in the US Gulf Coast market.
(4) OPIS Mont Belvieu non-Tet Propane – typically applies to propane sales in the US Gulf Coast market.
(5) OPIS Mont Belvieu non-Tet Normal Butane – typically applies to butane sales in the US Gulf Coast market.
(6) Platts 62 per cent Fe Cost and Freight (CFR) China – used for fines.
(7) Platts Low-Vol hard coking coal Index FOB Australia – representative of high-quality hard coking coals.
(8) GlobalCoal FOB Newcastle 6,000kcal/kg NCV – typically applies to coal sales in the Asia Pacific market.
(9) Due to rounding, immaterial differences in numbers may exist.
Impact of changes to commodity prices
The prices we obtain for our products are a key driver of value for BHP. Fluctuations in these commodity prices affect our results, Additional information
including cash flows and asset values. The estimated impact of changes in commodity prices in FY2020 on our key financial measures
is set out below.
Impact on profit Impact on
after taxation Underlying
from Continuing EBITDA
operations (US$M) (US$M)
US$1/bbl on oil price 24 37
US¢1/lb on copper price 24 35
US$1/t on iron ore price 163 233
US$1/t on metallurgical coal price 24 35 Shareholder information
US$1/t on energy coal price 10 14
US¢1/lb on nickel price 1 1

BHP Annual Report 2020 23