BHP Rich-Seams Mining Asset & Grade Economics Model

Deposit & Metallurgy Controls

Head Ore Grade (% Cu): 0.82%

Annual Mill Throughput (Mt): 120 Mt

Metallurgical Recovery Rate (%): 88.5%

Waste-to-Ore Stripping Ratio: 3.40

Benchmark Metal Price ($/lb): $4.25

Discount Rate (WACC %): 8.0%

Desal & Energy Penalty ($/t milled): $3.50

Annual Sustaining Capex ($M): $450M

Rich-Seam Economics Rationale

Mining half-grade ore requires milling 2.16x more rock, consuming exponentially higher SAG mill kWh/t, flotation reagents, and desalination pumping to produce the identical ton of copper cathode.

Rich Seam Margin Premium: +44.2% vs 0.38% Cu industry average benchmark.

Contained Metal

870.84 kt

1,920 M lbs Cu/yr

Gross Revenue

$8,155.6M

@ $4.25/lb Cu

C1 Cash Cost

$1.42 / lb

1st Quartile (Q1)

Operating EBITDA

$5,428.1M

66.6% EBITDA Margin

Asset NPV @ 8%

$24,890.3M

25-Yr Mine Life

Internal Rate of Return

32.4%

vs 12.5% Cost of Capital

Global Industry Cash Cost Curve & Asset Position

Tier-1 Global Asset Comparison Matrix

Asset / Operation	Commodity	Head Grade	C1 Cost ($/lb)	AISC ($/lb)	EBITDA Margin	Cost Quartile