Why is the BHP share price smashing the market with a 22% gain in November?

The Big Australian has had a month to remember. Here's why…

| More on:
A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BHP Group Ltd (ASX: BHP) share price is on course to end the month on a positive note.

In afternoon trade, the mining giant's shares are up almost 2% to $45.62.

This latest gain means the BHP share price is now up an impressive 22% since the start of the November.

This compares to a solid gain of 5.9% by the ASX 200 index.

Why is the BHP share price smashing the market this month?

There have been a couple of key catalysts for the rise in the BHP share price this month.

The first is the iron ore price. On Tuesday, the iron ore price returned above the US$100 per tonne mark again thanks to optimism over Chinese demand. This follows speculation that COVID restrictions could soon ease and news that the government is ramping up support for struggling property developers.

This is quite a turnaround for the iron ore price, which started the month at just US$81 per tonne. This is a 23% increase in value, which is broadly in line with how much BHP's shares have gained over the same period.

And that isn't a huge surprise that its shares have risen because of this. That's because iron ore still contributes significantly to BHP's overall earnings. For example, in FY 2022, iron ore EBITDA came in at US$21,707 million. This represents 53.4% of its total underlying EBITDA of US$40,634 million.

What else?

Also giving the BHP share price a boost was a positive update on its pursuit of OZ Minerals Ltd (ASX: OZL).

In the middle of the month, the Big Australian revealed that the copper miner's board had accepted a takeover offer of $28.25 cash per share.

The "best and final" non-binding offer was increased from the original $25.00 per share offer made back in August and represents a 49.3% premium to where OZ Mineral's shares were trading prior to the initial proposal.

BHP explained that it sees OZ Minerals as a great way to increase its exposure to future facing commodities. It also believes the combination of their operations will unlock value.

BHP's CEO, Mike Henry, explained:

BHP's proposal represents a highly compelling offer for OZL shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry. The combination of BHP and OZL's assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP's strong balance sheet, capital discipline and commitment to sustainable development.

Here's hoping December is just as kind to the BHP share price.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Rio Tinto share price tumbles on CEO bombshell news

The mining giant is now looking for a new leader.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

What's going on with the Fortescue share price today?

This mining giant is making changes to its leadership.

Read more »

Happy construction worker at a building site with a group of workers at the background.
Materials Shares

After its result, does Macquarie rate James Hardie shares a buy, hold or sell?

The company announced its FY25 earnings on Wednesday.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Fortescue shares fall on Iron Bridge blow

Iron Bridge is taking longer to ramp up than planned.

Read more »

Three miners looking at a tablet.
Materials Shares

Buy Rio Tinto shares for a 23% return

Let's see which broker is tipping this mining giant as a top buy.

Read more »

A bricklayer peers over the top of a brick wall he is laying with a level measuring tool on top and looks critically at the work he is carrying out.
Materials Shares

Brickworks shares have surged 15% in a month. Are they still good value according to Macquarie?

Here's what this broker has to say about the stock.

Read more »

A man checks his phone next to an electric vehicle charging station with his electric vehicle parked in the charging bay.
Materials Shares

Are Pilbara Minerals shares too cheap to ignore?

A leading broker has given its verdict on this beaten down lithium miner.

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Materials Shares

Does Macquarie rate James Hardie shares a buy, hold or sell?

The company is set to report FY25 earnings this week.

Read more »