BHP Group Ltd (ASX: BHP) shares are dropping on the day of the mining giant's annual general meeting (AGM).
In afternoon trade, the Big Australian's shares are down over 1.5% to $40.52.
This follows a decline by BHP's NYSE listed shares overnight, which appears to have offset any positives from its AGM presentation.
What was said at the BHP AGM?
While there wasn't anything market sensitive in the AGM presentation, management spoke very positively about the future. Particularly given the changes it has made to its portfolio. BHP CEO Mike Henry commented:
We have made significant changes this year to reshape our business with a portfolio more aligned to the global megatrends unfolding around us, so we are better positioned to grow value as demand for our commodities grows.
One commodity the mining giant is very positive on is potash. While BHP isn't yet mining the mineral, it has big plans to do so from the Jansen Potash Project. This is expected to be one of the world's largest and lowest cost potash mines when it comes into production.
BHP chair, Ken MacKenzie, sees the mineral, which is a vital link in the global food supply chain, as a big part of the miner's future. He said:
Potash is a new commodity for BHP which has the potential to deliver value for a century or more.
MacKenzie also highlights that BHP's portfolio is positioned to benefit from several megatrends. He added:
The changes we have made across BHP align your company with the megatrends of decarbonisation, population growth, and demand for higher standards of living. According to our modelling, to deliver our Paris-aligned 1.5-degree scenario, the demand for copper, nickel and steel will grow to enable the infrastructure and products required for the energy transition.
This was echoed by Mike Henry, who concluded his speech saying:
We are confident the fundamentals of decarbonisation, population growth, rising living standards and urbanisation will drive demand for the commodities in our reshaped portfolio for decades into the future. BHP will continue to provide the commodities the world needs and deliver value for our stakeholders. With your support, we will help build a better future.
