1st Quarter Results - Part 1

Broken Hill Proprietary Co Ld
2 November 2000



Part 1
                       BHP First Quarter Profit Report
                              September 2000

                                         Quarter ended 30 September
Results Summary                           2000     1999      Change %
Revenue ($ million)
- Sales revenue                           5 228    4 625      +13.0
- Other revenue                             187      356      -47.5
                                          5 415    4 981       +8.7

Profit from ordinary activities
before tax ($ million)                    1 067      646      +65.2

Net profit attributable
to BHP shareholders ($ million)             715      534      +33.9

Basic earnings per share (cents)           40.1     30.4      +31.9

Significant Features
* a record quarterly profit;
* higher prices for oil, copper and steel;
* benefits from lower A$/US$ exchange rates;
* profits from the Laminaria/Corallina oil fields (North West Australia);
* lower debt levels; and
* half yearly unfranked dividend of 25.0 cents per share.


Group Result and Dividend

Effect of Change in Financial Year

Following the change in financial year end for the BHP Group from 31 May to 30
June effective 30 June 2000, this Profit Report includes an analysis of the
results for the quarter ended 30 September 2000 compared with the quarter ended
30 September 1999. In this report all references to the corresponding period are
to the quarter ended 30 September 1999.

Effect of Change in Accounting Standard

Following adoption of revised Australian Accounting Standard AASB1018: Statement
of Financial Performance, effective 1 July 2000 items which were previously
treated as abnormal are now included in the determination of profit or loss from
ordinary activities. Prior period results have been restated where
appropriate.

Quarter Result

The profit after tax attributable to BHP shareholders for the quarter ended 30
September 2000 was $715 million. This was a record result and an increase of
$181 million or 34% compared with the corresponding period.

Basic earnings per share for the quarter ended 30 September 2000 were 40.1 cents
compared with 30.4 cents for the corresponding period.

The following major factors affected profit after tax attributable to BHP
shareholders for the quarter ended 30 September 2000 compared with the
corresponding period:

Prices (positive impact of $240 million)

Higher prices after commodity hedging for oil and copper, and higher LPG prices,
increased profit by approximately $190 million compared with the corresponding
period. Higher steel and iron ore prices also improved profit by approximately
$50 million compared with the corresponding period.

Exchange rates (positive impact of $100 million)

Foreign currency fluctuations net of hedging had a favourable effect of
approximately $100 million compared with the corresponding period.

New operations (positive impact of $45 million)

Profits from the Laminaria/Corallina and Buffalo oil fields (North West
Australia) contributed approximately $80 million for the period. These were
partly offset by increased losses of approximately $35 million from HBI Western
Australia and HBI Venezuela, including the expensing of capital to resolve
process and operational difficulties at HBI Western Australia.


Volumes (negative impact of $45 million)

Lower petroleum sales volumes at Bass Strait (Victoria) due to natural field
decline and lower sales volumes at Escondida (Chile) and Ok Tedi (PNG) due to
copper concentrate shipment delays decreased profits by approximately $65
million compared with the corresponding period.

Asset sales (negative impact of $35 million)

Profits from asset sales were approximately $35 million lower than in the
corresponding period.

Other (negative impact of $110 million)

The corresponding period included a tax benefit of approximately $110 million
arising from finalisation of funding arrangements related to the Beenup mineral
sands project.

Dividend

Directors announced that an unfranked dividend of 25.0 cents per share will be
paid on 6 December 2000.

Details of the half yearly dividend are included on page 11.


Segment Results (after tax)

Change to Business segments

Following various asset sales and an internal reorganisation, the Services
segment ceased to be reported from 1 July 2000.

As a consequence, Transport and Logistics is reported in Steel and remaining
Services' activities including Shared Business Services, Insurances and
Corporate Services are reported in Group and unallocated items. Comparative data
has been adjusted accordingly. 1999 data for Services mainly relates to profits
from businesses which have been sold.

                         Quarter ended 30 September

                                           2000          1999
                                        $ million   $ million      Change %

Minerals                                   408          303           +34.7
Petroleum                                  405          212           +91.0
Steel                                      156           84           +85.7
Services                                                  6
Net unallocated interest                 ( 107)       ( 116)
Group and unallocated items              ( 140)          38
Net profit before outside
equity interests                           722          527           +37.0
Outside equity interests                   ( 7)           7

Net profit attributable
to members of the BHP entity               715          534           +33.9


Minerals

Minerals' result for the quarter was a profit of $408 million, an increase of
$105 million or 35% compared with the corresponding period.

Major factors which contributed to the result were:

* favourable effect of the lower A$/US$ exchange rate;
* higher average copper prices, net of hedging; and
* higher iron ore prices.

These were partly offset by:

* lower copper concentrate sales volumes at Escondida and Ok Tedi; and
* increased losses from HBI Western Australia, including the expensing of       
 capital to resolve process and operational difficulties.

The average price booked for copper shipments for the period, after hedging and
finalisation adjustments, was US$0.89 per pound (1999 - US$0.74). Finalisation
adjustments after tax, representing adjustments on prior period shipments
settled in the period, were $15 million favourable (1999 - $18 million
favourable).

Unhedged copper shipments not finalised at 30 September 2000 which are expected
to be finalised after 30 September 2000 but before 1 January 2001 have been
brought to account at US$0.90 per pound. Shipments expected to finalise post 1
January 2001 have been brought to account at US$0.91 per pound.  The London
Metal Exchange (LME) copper spot price on Friday 29 September 2000 was US$0.90
per pound.

Exploration expenditure was $21 million for the quarter (1999 - $15 million) and
the charge against profit was $18 million (1999 - $12 million).
Significant developments during the quarter included:

* BHP and Mitsubishi Development Pty Ltd announced a joint cash offer of $1.20  
 per share for all ordinary shares in QCT Resources Limited (QCT). In October   
2000, the offer by the 50/50-owned bidding vehicle, MetCoal Holdings (Qld)     
Pty Ltd was increased to $1.30 per share. At 1 November 2000, acceptances had  
reached 88.5%; and
* BHP reached agreement with Falconbridge Limited on the formation of a joint   
 venture which may lead to the development of the Gag Island nickel laterite    
project in Indonesia. Falconbridge will spend US$75 million to earn a 37.5     
per cent interest in the Gag Island nickel project. It is expected the         
investment will primarily be directed towards completing a Gag Island project  
feasibility study over the next two years.


Petroleum

Petroleum's result for the quarter was a profit of $405 million, an increase of
$193 million or 91% compared with the corresponding period.

Major factors which contributed to the result were:

* higher average realised oil price net of commodity hedging of A$50.49 per     
 barrel (1999 - A$28.59 per barrel), reflecting higher US dollar prices (2000   
- US$29.01 per barrel; 1999 - US$18.58 per barrel). The average realised oil   
price before commodity hedging was US$31.58 per barrel (1999 - US$21.09
  per barrel);
* profits from the Laminaria/Corallina and Buffalo oil fields which commenced   
 operations in November 1999 and December 1999 respectively;
* favourable effect of lower A$/US$ exchange rate; and
* higher LPG and LNG prices.

These were partly offset by:

* profits in the corresponding period from the sale of assets; and
* lower Bass Strait oil sales volumes.

Oil and condensate production was 17.3% higher than the corresponding period due
to the start-up of the Laminaria/Corallina and Buffalo oil fields and additional
oil production from Cossack Pioneer (North West Australia). These were partly
offset by lower oil volumes due to natural field decline at Bass Strait and the
sale of the Kutubu, Gobe and Moran producing fields (PNG) in December 1999.

Natural gas production was 12.7% higher. This was largely attributable to higher
nominations at Bruce (UK), higher volumes from Bass Strait due to weather
conditions and increased facility capacity of the US producing properties,
partly offset by lower volumes at Liverpool Bay (UK) due to a planned shutdown
in September 2000.

Exploration expenditure for the quarter was $80 million (1999 - $54 million).
Exploration expenditure charged to profit was $45 million (1999 - $41 million).
Significant developments during the quarter included:

* Letters of Intent were signed with Tokyo Gas Co. Ltd and Toho Gas Co. Ltd of  
 Japan for the sale and purchase of liquefied natural gas (LNG) from the North  
West Shelf (NWS) in Western Australia. The agreements were signed by the six   
NWS LNG sellers and cover the supply of LNG for a period of 25 years starting  
in 2004, building to a volume of one million tonnes per annum (mtpa) by 2006.  
(BHP share 0.17mtpa);
* approval was granted for the development of the Echo/Yodel gas condensate     
 field on the NWS;
* results from the Atlantis-2 appraisal well confirmed a major oil accumulation 
 with a multi-hundred million barrel resource potential. Atlantis-2, located    
in the Atwater Foldbelt ultra deepwater area of the Gulf of Mexico,            
encountered oil bearing sands with net pay in excess of 153 metres (500        
feet). In October
  2000, results of the Atlantis-2 sidetrack well confirmed a lateral extension  
 of the known range of the Atlantis hydrocarbon accumulation of up to 1.6       
kilometres (one mile) from the original wellbore, and also confirmed the       
continuity and quality of the Miocene reservoir sands with a net pay in        
excess of 92 metres (300 feet true vertical thickness) ;
* BHP Petroleum acquired a 4.95 per cent interest in the Genesis field in the   
 deep water Gulf of Mexico; and
* a Risk Service Contract was signed with the Algerian national oil company,    
 SONATRACH, for the development of four gas/condensate reservoirs in the Ohanet
region of Algeria.

Steel

Steel's result for the quarter was a profit of $156 million, an increase of $72
million or 86% compared with the corresponding period.

Major factors which contributed to the result were:

* higher international steel prices and the favourable effect of exchange rate  
 movements;
* improved performance from Asian businesses; and
* the sale of the US West Coast steel businesses and the closure of the         
 Newcastle primary operations which made losses in the corresponding period.
  Steel despatches from continuing flat and coated operations were 1.24 million 
 tonnes for the quarter, 4.2% above the corresponding period:

  - Australian domestic despatches were 0.49 million tonnes, down 5.8%;
  - Australian export despatches were 0.54 million tonnes, up 22.7%;
  - New Zealand steel despatches were 0.13 million tonnes, down 13.3%; and
  - despatches from overseas plants were 0.08 million tonnes, in line with the
    corresponding period.

Steel despatches from discontinuing operations for the quarter were 0.53 million
tonnes, 32.9% below the corresponding period. This was primarily due to the sale
of the US West Coast businesses in the fourth quarter of fiscal 2000 and reduced
export despatches of long products following the closure of Newcastle primary
operations in fiscal 2000.

Significant developments included:

* the signing of a Memorandum of Understanding with e-STEEL Corporation to      
  build and operate a customised, steel-based B2B e-commerce network. The       
  network will utilise e-STEEL's proprietary STEELDIRECT TM technology          
  platform, enabling buyers and sellers to execute steel transactions on-line.
  It will initially be open to BHP Steel's customers in Australia, prior to     
  expansion into key international markets; and
* in October 2000, the schemes of arrangement enabling the spin-out of OneSteel 
  Limited became effective leaving BHP Steel as the Australasian region's       
  principal flat products steel producer and marketer. From 1 November 2000,    
  BHP Steel will cease reporting results for OneSteel Limited.

Net unallocated interest

Net unallocated interest expense was $107 million for the quarter compared with
$116 million for the corresponding period. This decrease was mainly due to
significantly lower funding levels, partly offset by higher interest rates in
the US and Australia, lower capitalised interest and the unfavourable effect of
exchange rate movements.

Group and unallocated items

The result for Group and unallocated items was a loss of $140 million for the
quarter compared with a profit of $38 million for the corresponding period. The
corresponding period included a tax benefit of $112 million arising from
finalisation of funding arrangements related to the Beenup mineral sands
project.

The result for the quarter included losses of $86 million after tax from
external foreign currency hedging compared with losses of $32 million after tax
in the corresponding period.

On 18 October 2000, following appeal by the Australian Taxation Office (ATO) the
Full Bench of the Federal Court ruled in favour of the ATO concerning the
deductibility of financing costs paid to General Electric Company in connection
with the acquisition of the Utah Group in the early 1980s. BHP is seeking
leave to appeal to the High Court of Australia. The Company disclosed a
contingent liability of $211 million, as at 30 June 2000, in the 2000 Annual
Report. No adjustments will be made to the Group accounts pending finalisation
of this matter.

Outside equity interests

Outside equity interests' share of operating profit increased mainly due to
adjustments in the corresponding period attributable to minority shareholders of
the Moura coal mine following its sale in August 1999.


Consolidated Financial Results

                                            Quarter ended 30 September
                                          2000         1999         Change
                                         $ million   $ million          %

Revenue from ordinary activities
Sales                                        5 228       4 625      +13.0
Interest revenue                                22          17      +29.4
Other revenue                                  165         339      -51.3
                                             5 415       4 981       +8.7
Profit from ordinary activitites before
depreciation, amortisation and
borrowing costs                              1 746       1 291      +35.2
Deduct : Depreciation and amortisation         524         480       +9.2
Borrowing costs (1)                            155         165       -6.1
Profit from ordinary activities
before tax                                   1 067         646      +65.2
Deduct : Tax expense attributable
to ordinary activities                         345         119     +189.9
Net profit                                     722         527      +37.0
Outside equity interests in net profit         ( 7)          7
Net profit attributable to members
of the BHP Entity                              715         534      +33.9
Average A$/US$ hedge settlement rate            57 c        65 c
(1) Excludes capitalised interest of            $1m         $9m

Consolidated Financial Results

Revenue

Sales revenue of $5,228 million increased by $603 million or 13.0% compared with
the corresponding period. This mainly reflects the effect of the lower A$/US$
exchange rate, and higher crude oil, copper, LPG and LNG prices. Other revenue,
including interest income, decreased by $169 million mainly reflecting lower
proceeds from asset sales. Total revenue increased by $434 million to $5,415
million.

Depreciation and Amortisation

Depreciation and amortisation charges increased by $44 million to $524 million.
This mainly reflects depreciation on recently commissioned operations and the
unfavourable effect of exchange rate variations, partly offset by depreciation
in the corresponding period on businesses now sold.

Borrowing Costs

Borrowing costs decreased by $10 million to $155 million, mainly due to
significantly lower funding levels, partly offset by higher interest rates in
the US and Australia, lower capitalised interest and the unfavourable
effect of exchange rate movements.

Tax Expense

Tax expense of $345 million for the quarter represented an effective tax rate of
32.3% (1999 - 18.4%).  This is lower than the nominal Australian tax rate of 34%
primarily due to recognition of tax benefits in respect of certain prior year
overseas exploration expenditure, partly offset by overseas exploration
expenditure for which no deduction is presently available, and non-deductible
interest expense on preference shares.

Statutory Information

                                                     Quarter ended
                                                     30 September
                                                     2000     1999

Basic earnings per share (cents) (1)                 40.1     30.4
Diluted earnings per share (cents) (2)               39.5     29.7
Basic earnings per American Depositary
Share (US cents) (3)                                 43.4     39.7

(1) Based on net profit after tax attributable to members of the BHP Entity     
    divided by the weighted average number of fully paid ordinary shares. The   
    weighted average number of shares was 1,782,544,570 (1999 - 1,758,133,014).
(2) Based on adjusted net profit after tax attributable to members of the BHP   
    entity divided by the weighted average number of fully paid ordinary shares 
    adjusted for the effect of Employee Share Plan options, Executive Share     
    Scheme partly paid shares and Performance Rights to the extent they were    
    dilutive at balance date. The weighted average diluted number of shares was 
    1,827,116,707 (1999 - 1,825,529,114).
(3) Each American Depositary Share (ADS) represents two fully paid ordinary     
    shares. Translated at the noon buying rate on Friday 29 September 2000 as   
    certified by the Federal Reserve Bank of New York A$1=US$0.5415 (1999       
    A$1=US$0.6528).

Financial Data

The financial data upon which this report has been based complies with the
requirements of the Corporations Law, with all applicable Australian Accounting
Standards and Urgent Issues Group Consensus Views, and gives a true and fair
view of the matters disclosed. The results are unaudited. The Company has a
formally constituted Audit Committee of the Board of Directors.

This report is made in accordance with a resolution of the Board of Directors.

Half Yearly Dividend 

Directors announced that a half yearly unfranked dividend of 25.0 cents per
fully paid ordinary share will be paid on 6 December 2000, the same as the
dividend in the corresponding period.

The record date for payment of the dividend will be 17 November 2000. American
Depositary Shares (ADSs) each represent two fully paid ordinary shares and
receive dividends accordingly. The record date for ADSs is 16 November 2000.

Transfer documents will be accepted for registration at the Company's share
registers (and in the case of the ADSs the US Depositary) at the following
addresses:


Australia                            5th Floor
                                     BHP Petroleum Plaza
                                     120 Collins Street
                                     Melbourne Victoria 3000

UK                                   Computershare Services plc
                                     The Pavilions
                                     Bridgwater Road
                                     Bedminster Down
                                     Bristol BS13 8AR

USA                                  Morgan Guaranty Trust Company of New York
                                     Shareholder Services
                                     MS 45 - 02 - 54
                                     150 Royall Street
                                     Canton MA 02021

                                                        R A St John
                                                     Company Secretary
                                                        BHP Limited

                                 ****

For information contact:

Media Relations:        Mandy Frostick - Manager Media Relations
                        Phone [phone]
                        Mobile [phone]
                        E-mail: [e-mail]

Investor Relations:     Robert Porter - Vice President Investor Relations
                        Phone [phone]
                        Mobile [phone]
                        E-mail: [e-mail]


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