Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. To wit, the BHP Group share price has climbed 29% in five years, easily topping the market return of 14% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 7.5% , including dividends .

Although BHP Group has shed AU$7.1b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for BHP Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, BHP Group managed to grow its earnings per share at 31% a year. This EPS growth is higher than the 5% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.74.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on BHP Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of BHP Group, it has a TSR of 116% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that BHP Group has rewarded shareholders with a total shareholder return of 7.5% in the last twelve months. That's including the dividend. Having said that, the five-year TSR of 17% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand BHP Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for BHP Group (of which 1 is significant!) you should know about.

BHP Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

(Bloomberg) — BHP Group Ltd. is confident China’s troubled property market will turn around in coming months, despite gloomy economic signals pushing iron ore and copper prices back to levels last seen during the Covid Zero era.

Most Read from Bloomberg

• Apple Plans to Turn Locked iPhones Into Smart Displays With iOS 17

• McCarthy Signals Debt Deal Optimism as US Put on Credit Watch

• US Credit Rating at Risk of Fitch Cut on Debt-Limit Impasse

• World’s Biggest Nuclear Plant May Stay Closed Due to Papers Left on Car Roof

• Deaths Soar on Everest After Record Number of Climbers Attempt Summit

Secondary sales in the housing market “continue to be strong, very strong,” Vandita Pant, BHP’s chief commercial officer, said in an interview on Thursday. “We always thought sales and completions of homes will turn around first, and then new starts,” she said, adding “that trajectory is holding.”

The note of confidence from the world’s biggest miner comes after China’s economic activity disappointed expectations since strict pandemic restrictions were removed late last year, heavily impacting metals demand. The Asian powerhouse is by far the largest importer of both iron ore and copper.

Weaker-than-expected construction, particularly in the property sector, has pushed iron ore — BHP’s top export — below $100 a ton. Copper, another of its key commodities, fell below $8,000 a ton for the first time in six months this week, adding to broader gloom about the global economy.

But Pant said BHP still expects China’s metals demand “to be a source of stability in the second half, and the second half to be better than the first half,” echoing the words of Chief Executive Officer Mike Henry at the company’s half-year results in February.

The first quarter of 2023 was “better than we were expecting,” but the market got carried away in the second quarter, pushing commodity prices to unrealistic levels, Pant said. China’s economy wouldn’t feel the “full tailwind” of government stimulus measures, introduced earlier this year, until 2024, she said.

Copper futures on the London Metals Exchange edged up 0.4% to $7,929 a ton at 12:22 p.m. in Singapore, but are still down almost 4% this week.

Most Read from Bloomberg Businessweek

• The Man Who Spends $2 Million a Year to Look 18 Is Swapping Blood With His Father and Son

• There’s Still Scary Stuff in Sunscreen

• Adidas After Yeezy

• Maasai Are Getting Pushed Off Their Land So Dubai Royalty Can Shoot Lions

• Toyota, Ford and GM Fight for Midsize Truck Dominance

©2023 Bloomberg L.P.

Toronto, Ontario–(Newsfile Corp. – May 24, 2023) – Honey Badger Silver Inc. (TSXV: TUF) ("Honey Badger" or the "Company") is pleased to announce the closing of the second and final tranche of its previously announced non-brokered hard dollar and flow-through private placement (the "Offering"). All dollar amounts are in Canadian funds.

Hard Dollar Offering

The hard dollar component of the Offering involved the sale of units ("HD Units") at a price of $0.15 per HD Unit. Each HD Unit consists of one common share of the Company and one half of a common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the Company at a price of $0.18 for a period of 36 months from the date of closing. The proceeds from the sale of the HD Units will be used to finance closing obligations and exploration activities on the Company's Cachinal project in Chile and for general working capital purposes.

In the first tranche closing on April 11, 2023, the Company sold 5,256,668 HD Units for gross proceeds of $788,500. In the second tranche closing, the Company sold an additional 1,447,000 HD Units for additional gross proceeds of $217,050. The gross proceeds from the sale of the 6,703,668 HD Units in both closings totalled $1,005,550.

Flow-Through Offering

The flow-through component of the Offering involves the sale of units ( "FT Units") at a price of $0.16 per FT Unit. Each FT Unit consists of one common share of the Company and one half of a common share purchase warrant, with each whole warrant having the same terms as the warrants comprising the HD Units. The proceeds from the sale of the FT Units will be used to fund exploration programs on one or more of the Company's exploration properties located in Yukon, Quebec, and Nunavut that will qualify as "Canadian Exploration Expenses" and, once renounced, "flow-through mining expenditures", as those terms are defined in the Income Tax Act (Canada).

In the first tranche closing on April 11, 2023, the Company sold 1,234,375 FT Units for gross proceeds of $197,500. In the second tranche closing, the Company sold an additional 365,000 FT Units for additional gross proceeds of $58,400. The proceeds from the sale of the 1,599,375 FT Units in both closings totalled $255,900.

An insider of the Company acquired 15,000 HD Units and 15,000 FT Units in the second tranche closing for total gross proceeds of $4,650. The insider's participation in the Offering is a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemption from minority shareholder approval requirements under MI 61-101, as the fair market value of the insider's participation in the Offering does not exceed 25% of the market capitalization of the Company.

In connection with the Offering, the Company paid fees to eligible finders consisting of an aggregate of: (i) $39,921.01; and (ii) 51,940 Warrants (the "Broker Warrants"). Each Broker Warrant is exercisable by the holder to acquire one Common Share for a period of 36 months from the date of closing of the Second Tranche of the Offering at a price of C$0.18 per share.

All securities issued pursuant to the Offering are subject to a four-month statutory hold period under Canadian securities laws.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Honey Badger Silver Inc.

Honey Badger Silver is a Canadian silver company based in Toronto, Ontario, that is focused on the acquisition, development, and integration of accretive transactions of silver ounces. The Company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. With significant land holdings in southeast and south-central Yukon, including the Plata property 180 kms to the east of the Keno Hill silver district, as well as Ontario's historic Thunder Bay Silver District, Honey Badger Silver is positioning to be a top-tier silver company.

ON BEHALF OF THE BOARD

George Davis, President & CEO

Investors that are interested in further information on the Offering may also do so through the Sharechest Connector on our website at www.honeybadgersilver.com, which is an innovative solution to streamline and simplify communications with potential investors.

For more information, contact Ms. Michelle Savella for Investor Relations | msavella@honeybadgersilver.com | (604) 828-5886

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking information in this news release includes statements regarding: the structure and anticipated benefits of completing the acquisition of the Cachinal Project (including historical resource estimate and possible positive effects on cash-flow); and any other information herein that is not a historical fact may be "forward-looking information". Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Honey Badger to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, but are not limited to, risks relating to capital and operating costs varying significantly from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; other risks involved in the mineral exploration and development industry; and those risks set out in the Company's public documents filed on SEDAR (www.sedar.com) under Honey Badger's issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Not for distribution to U.S. news wire services or dissemination in the United States

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167407

(Bloomberg) — A top equities fund manager is backing BHP Group Ltd. and Rio Tinto Ltd., betting they can withstand softer iron-ore prices and will benefit as China’s reopening boosts demand for the commodity.

Most Read from Bloomberg

• Here’s How Much Wealth You Need to Join the Richest 1% Globally

• Mercedes Sets Out to Make Sexy Vans With Yacht-Like Interiors

• JPMorgan Asset Says Markets Are Right to Bet on US Rate Cuts

• The $120 Million Ghost Ship Antigua Is Desperate to Unload

• Debt-Limit Talks to Intensify as Biden Set to Depart for Japan

Australian producers are attractive as they have relatively low operating costs and high exposure to the mainland, the world’s largest consumer of the steel-making ingredient, according to David Wilson, who oversees the equivalent of $5.3 billion at Australia-focused First Sentier Wholesale Geared Share Fund. The fund has returned 10% this year, beating more than 90% of its peers.

Even when iron-ore prices fall, Australian producers are still highly profitable given they have a lower cost base than their global counterparts, Sydney-based Wilson said. “Over the course of this year, China will continue to reopen and that will provide a base for demand for Australian iron ore.”

The fund recently rotated out of aluminum-miner South32 Ltd. and redirected some of that capital toward Rio Tinto, he said.

Iron ore has struggled after a strong start to the year amid concern China’s recovery is losing momentum. Still, Australian miners have weathered the commodity’s gyrations better than most of their international rivals, with BHP, Rio Tinto and Fortescue Metals Group Ltd. outperforming a Bloomberg Intelligence gauge tracking producers of the commodity over the last 12 months.

Even in Australia though, price pressures are building. BHP said last month said it expects iron-ore costs to come in at the top end of its $18 to $19 per ton guidance range in the financial year to June 30, while Brazil’s Vale SA forecasts $20 to $21 per ton for 2023.

While it has recently increased holdings of iron-ore miners, the four largest holdings in Wilson’s fund remain insurer QBE Insurance Group Ltd., oil producer Santos Ltd., gaming-machine maker Aristocrat Leisure Ltd. and industrial property firm Goodman Group.

The fund’s main strategy is to invest in “economically defensive companies that have growth,” Wilson said. Australia doesn’t have “the sort of earnings or economic volatility seen elsewhere. Australia is seen as a bit more of a defensive place, including even our banks.”

Margin Pressures

The fund is underweight local lenders as slowing credit growth and margin pressure weigh on their earnings outlooks, Wilson said. Still, the nation’s lenders remain well capitalized and are unlikely to face issues with bad debts, he said, adding that the fund prefers Commonwealth Bank of Australia and National Australia Bank Ltd. to their competitors.

Read more: Aussie Bank Investors Say Best Days Are Over as Margins Squeezed

The First Sentier fund has handily beaten the benchmark S&P/ASX 200 Index this year, with the gauge rising just 2.3%.

The fund also owns technology shares such as logistics-software company Wisetech Global Ltd. and online property-listing service REA Group Ltd.

“People, when they think of tech, tend to think of obviously the US,” Wilson said. “But Australia, over a long period of time, has been able to develop quite solid tech companies.”

Most Read from Bloomberg Businessweek

• Sweetgreen Tests Robots to Make Faster, More Efficient Sad Desk Salads

• The Green Energy Transition Has a Chilean Copper Problem

• Eric Adams Is Starving New York City’s Universal Pre-K Program

• Brew Another Pot, Robinhood’s 24-Hour Stock Trading Is Here

• Recession Calls Keep Getting Pushed Back, Giving Soft Landing Believers Hope

©2023 Bloomberg L.P.

By Mrinmay Dey

(Reuters) -Canadian copper miner Teck Resources Ltd has been approached by mining companies including Vale SA, Anglo American Plc and Freeport-McMoRan Inc to explore deals for its base metals business if a planned split of the company happens, sources close to the matter told Reuters on Sunday.

Teck has received expressions of interest from more than six mining companies, which are interested in several other transactions after the split, according to the sources.

These approaches from international miners come as the Vancouver-based miner is fending off unsolicited bids from Glencore Plc.

A spokesperson from Teck said the company does not comment on market rumours or speculation.

Freeport, Vale and Anglo American declined to comment.

Glencore on Tuesday modified its $22.5 billion all-share takeover bid for Teck to include up to $8.2 billion in cash, but Teck's board called it "largely unchanged".

Teck has repeatedly rejected Glencore's offer of merging the companies and subsequently spinning off their combined thermal and steel-making coal businesses, saying it would expose shareholders to thermal coal, oil, LNG and related sectors.

It has instead urged its investors to vote for a restructuring proposal which will see it spin off its highly polluting coal business and focus on production of copper.

Teck investors will decide on the Canadian miner's restructuring plan on April 26.

Influential proxy advisor Institutional Shareholder Services (ISS) on Thursday advised shareholders to reject Teck's restructuring plan on uncertainties and structural issues.

Large investors often follow the recommendations of proxy advisory firms including ISS and its smaller rival Glass Lewis.

The Globe and Mail first reported interest in Teck's base metals business.

(Reporting by Mrinmay Dey and Lavanya Ahire in Bengaluru; Editing by Bill Berkrot and Sandra Maler)

(Adds Freeport declined to comment)

April 16 (Reuters) – Teck Resources Ltd has been approached by a unit of Vale SA, Anglo American Plc and Freeport-McMoRan Inc to explore deals if a planned split of the company happens, The Globe and Mail reported on Sunday, citing two sources familiar with the discussions.

A vote on Teck's plan to fully separate the copper and zinc business Teck Metals from the steelmaking coal Elk Valley business is scheduled on April 26.

These approaches from international miners come as the Vancouver-based miner is fending off unsolicited bids from Glencore Plc that would involve combining and spinning off the thermal and steelmaking coal businesses of both companies.

The Swiss mining company has offered Teck shareholders 24% of the combined metals group and up to $8.2 billion in cash for those who may not want exposure to thermal coal.

Two proxy shareholder advisory firms have recommended that Teck Resources shareholders vote against the planned split.

Institutional Shareholder Services (ISS) advised shareholders to reject Teck's restructuring plan. On Saturday, Bloomberg News reported that Glass Lewis also asked Teck Resources shareholders to vote against Teck's plan to spin off its coal business.

Teck has received expressions of interest from at least half a dozen major mining companies, who are interested in various transactions post-split, the Globe and Mail added.

Teck, Freeport, Vale and Anglo American declined to comment to Reuters' request for comment. (Reporting by Lavanya Ahire in Bengaluru; Additional reporting credit by Mrinmay Dey in Bengaluru; Editing by Bill Berkrot and Sandra Maler)

By Fabian Cambero and Divya Rajagopal

SANTIAGO, April 14 (Reuters) – Lundin Mining Corp's bid for control of Chile's Caserones copper mine comes despite ongoing uncertainty over potential policy changes to royalties and taxes, an indication that investors may be regaining confidence in the world no.1 copper-producing country.

Lundin last month agreed to pay $950 million for 51% control of the mine, calling the deal "an endorsement that we believe the mining royalty and taxation discussions are trending in the right direction."

The deal caused some surprise. In the past 18 months, mining giants have been vocal about concerns in Chile. BHP Group Ltd said it might reevaluate its investments depending on new tax plans by the government, while Freeport-McMoRan Inc has said it would pause expansion plans in Chile, citing political uncertainty.

But with the outlook looking rosier for investment and global demand surging for the key green energy metal, reluctance has diminished, experts and officials say.

Chile's mining minister, Marcela Hernando, told Reuters on Thursday she felt "confident" that the concerns of the industry had been taken into account with the royalty proposals and that she had seen hints investment was starting to improve.

"What one observes are signs, you see how some investments have materialized, how a very important deal was completed a few weeks ago," she said, referring to the Caserones purchase.

"We aren't worried investments are going to be scared away."

A proposed new constitution that, among other changes, would have given the state greater control over mining was rejected by voters last September, while an ambitious tax overhaul plan was voted down by Congress in March.

Meanwhile, another government plan for new royalties on mining, currently moving through Congress, has also been tempered amid industry complaints that an increased tax burden at a time when deposits were facing decreased production would hurt the country's competitiveness.

"As the proposed bill has moderated, some companies have gotten to a risk level compatible with their investment decisions, as happened with Lundin," said Juan Carlos Guajardo, head of the Plusmining consulting agency in Santiago.

"Some companies have a more optimistic vision about the final evolution of the royalty bill, which is sparking investment decisions, but there are others that are still in 'wait-and-see' mode."

Canada-based Teck Resources has also recently boosted investment in Chile, submitting for environmental approval this year a $3 billion project to increase capacity at its Quebrada Blanca 2 mine.

But BHP said its stance on investment in Chile had not changed. Freeport did not reply to a request for comment.

Lundin said it was considering raising its stake to 70% of the mine for an additional $350 million, but that it would "continue to evaluate any potential royalty and taxation changes" as a factor in that decision.

ENVIRONMENTAL CONCERNS

Lundin's purchase from JX Nippon Mining & Metals comes at a time when companies are seeing longer delays for permits as opposition has risen from local communities. Some projects have been rejected by the state or by courts on environmental impact concerns.

Caserones, located 4,300 meters above sea level, has itself faced strikes by workers and lawsuits by farmers, who have complained about water over-extraction.

Chilean courts have since approved plans from JX Nippon to rectify environmental damage and Lundin told Reuters one of the company's "primary objectives is to minimize potential environmental impacts through implementation of environmental management controls."

The company added that its nearby Candelaria operation uses desalinated water and has a guaranteed minimum of 80% of renewably-sourced electricity.

Lundin remains confident in the future of the Caserones project, which began operations in 2014 and has annual output of 100,000 tonnes of copper. Peter Rockandel, Lundin Mining's CEO, said the firm had "no concerns" of what lay ahead in a conference call following the announcement of the deal.

The purchase is emblematic of the emerging copper industry trend of buy versus build, said Christopher LaFemina, an equity analyst at Jefferies, with falling share prices and ballooning development costs favoring purchasing, rather than constructing, new mines, even at "premium prices."

"The optimal time to pursue sizable acquisitions is now," LaFemina said in a report, adding that the window might close if investors wait for "the macro environment to improve." (Reporting by Fabian Cambero and Divya Rajagopal; editing by Alexander Villegas, Ernest Scheyder and Rosalba O'Brien)

(Bloomberg) — The key iron ore export hub of Port Hedland reopened after the biggest cyclone to hit Western Australia in at least a decade made landfall, with a major gold mine lashed by destructive winds as the storm moved inland.

Most Read from Bloomberg

• US-Saudi Oil Pact Breaking Down as Russia Grabs Upper Hand

• US Arrests 21-Year-Old National Guardsman in Classified Documents Leak

• US Embarrassed After 21-Year-Old Arrested in Classified Documents Leak

• Arnault's Wealth Soars to $210 Billion, Leaving Musk in the Dust

• JPMorgan Says Frank’s Javice Moved Millions to a Shell Company

Port Hedland reopened at 11 a.m. local time Friday after an inspection of the channel and berths confirmed safe operations can resume, according to Pilbara Ports Authority. BHP Group and Fortescue Metals Group Ltd. export iron ore from the harbor, which was closed on Thursday.

Severe tropical cyclone Ilsa crossed the coast overnight east of Port Hedland in a sparsely populated region as a category 5 — the strongest on the Australian scale. The storm is weakening as it tracks inland but had maintained cyclone intensity as it reached Newcrest Mining Ltd.’s Telfer gold and copper operation, which is 400 kilometers (248 miles) from the port.

Newcrest is aiming to start bringing the majority of workers back to Telfer over the weekend, pending inspections of the airstrip and village at the mine, according to a spokesperson. The company had reduced staffing at the site to a skeleton crew ahead of the cyclone.

Ilsa had weakened to a category 1 cyclone as of 2 p.m. local time on Friday, according to a notice from the Bureau of Meteorology.

The mayor of Port Hedland told the Australian Broadcasting Corp. that winds from the cyclone were “like a freight train” but the town appeared to have been spared from major damage. The owners of Pardoo Roadhouse, a tavern and gas station along the coastline, reported “great damage” to their building after riding out the storm, according to local media.

BHP will return to full operations once all vessels have safely returned to the inner harbor at Port Hedland, a spokesman said. There’s been no significant damage to the company’s sites at the port, they added.

Fortescue said no major damage has been reported across any of the company’s Pilbara operations and monitoring will continue over the coming days to assess potential flooding risk, according to a spokesperson. Some teams are commencing post-cyclone ramp up activities, the spokesperson said.

Ilsa is the sixth tropical cyclone and the strongest to make landfall in Australia this season, which runs from Nov. 1 to April 30, according to the bureau. The storm is expected to dump as much as 200 millimeters (7.8 inches) of rain in some areas on Friday.

–With assistance from Liz Yee Xing Ng and Kevin Varley.

(Updates with latest bureau notice, comments from Newcrest and BHP.)

Most Read from Bloomberg Businessweek

• A Smart Gun Is Finally Here, But Does Anyone Want It?

• There Are No Fees at America’s Smallest Bank

• Inside the IRS’s Shrinking Band of Wealth Hunters

• The Business of … Death

• A Runner’s Murder in Kenya Opens a Window Into Violence Against Women

©2023 Bloomberg L.P.

Yahoo Finance Live’s Rachelle Akuffo discusses the decline in stock for American Airlines.

Video Transcript

RACHELLE AKUFFO: Thank you.

All right, now for our trending ticker. Investors lowering the altitude of American Airlines on the airline’s updated profit outlook. The airline releasing updated earnings expectations for later this month that are coming short of analysts’ expectations with adjusted earnings per share between $0.01 to $0.05 versus expectations of $0.05 per share based on Bloomberg consensus.

Airlines like American, of course, particularly exposed to movements in the energy sector as the peak summer travel season looms. We see that the stock down almost about 9 and 1/2% on the day.

NORTHAMPTON, MA / ACCESSWIRE / April 12, 2023 / American Airlines:

In 1972, Bonnie Tiburzi wrote to every major airline carrier in the United States asking for a job, and every single airline turned her down, except for one. In March of 1973, American Airlines offered Bonnie a position as First Officer – making her the first woman to fly for a major commercial airline at the early age of 24.

Bonnie bravely broke barriers in the male-dominated profession and paved the path for women aviators to follow. As we celebrate 50 years since she started flying for American, we honor the women that inspired her and those she has inspired to take the controls on the flight deck.

View additional multimedia and more ESG storytelling from American Airlines on 3blmedia.com.

Contact Info:

Spokesperson: American AirlinesWebsite: https://www.3blmedia.com/profiles/american-airlinesEmail: info@3blmedia.com

SOURCE: American Airlines

View source version on accesswire.com: https://www.accesswire.com/748820/50-Years-Later-A-Trailblazer-Paved-the-Path-for-Women-on-the-Flight-Deck

In the US, Wall Street pushed higher on Wednesday after key inflation data showed a smaller-than expected rise in prices for March.

The Dow Jones (^DJI) rose 0.10% to 33,718.31 points, while the S&P 500 (^GSPC) climbed 0.57% to 4,132.50 points. The tech-heavy NASDAQ (^IXIC) also gained – by 0.82% to 12,130.15.

FTSE 100 and European markets

Across the pond, European markets and the FTSE 100 edged mostly higher as investors also turned their attention to the latest inflation data.

The FTSE 100 (^FTSE) rose 0.38% to close at 7,814, while the CAC 40 (^FCHI) in Paris finished flat at 7,387 – and in Germany, the DAX (^GDAXI) gained 0.20% to 15,686.

Stocks at the top

The top FTSE 100 risers were Frasers Group (FRAS.L), up 1.66%; Unite Group (UTG.L), up 1.24%; Weir Group (WEIR.L), up 1.21% – and Burberry (BRBY.L), up 1.21%.

In contrast, Anglo American (AAL.L) and Ocado Group (OCDO.L) were at the bottom of the basket with their shares down 1.16% and 1.15% respectively.

Asia financial markets

In Asia, Tokyo’s Nikkei 225 (^N225) rose 0.68% to 28,113 points, while the Hang Seng (^HSI) in Hong Kong fell 0.58% to 20,366. In mainland China, the Shanghai Composite (000001.SS) gained 0.24% to 3,321.67 points.

Economic data

In the US, new data showed that inflation cooled in March as the Federal Reserve’s interest rate increases showed more impact, the Labor Department reported on Wednesday.

The Consumer Price Index (CPI), a measure of the costs for goods and services, rose 0.1% for the month.The general expectation was that the CPI would have increased by 0.2% in March, as compared to a gain of 0.4% in February.

Excluding food and energy, core CPI increased 0.4%, meeting the median estimate of 0.4%.

Meanwhile, Deutsche Bank Research said in a note to clients on Wednesday that the prospect of another Fed hike was given some support by various Federal Open Market Committee speakers yesterday.

“Early in the session, New York Fed President Williams said that the Fed’s median forecast for a further rate hike was a “reasonable starting place”. And later in the session, Philadelphia Fed president Harker said that he wanted to “get rates above 5 and then sit there for a while”, which would imply at least one more 25bp move.

However, Chicago Fed president Goolsbee struck a notably more dovish tone relative to some recent speakers, saying that the Fed should “be careful about raising rates too aggressively until we see how much work the headwinds are doing for us in getting down inflation.”

Read more: Trending tickers – De La Rue | SSE | Ocado | Centrica

Bank earnings

It’s also a big earnings week for banks, including JPMorgan (JPM), Wells Fargo (WFC), and Citi (C) – with all three due to report their first-quarter results on Friday.

The three banks were part of a consortium last month that injected some $30bn in deposits into First Republic to shore up the struggling lender.

Tina Teng, market analyst at CMC Markets, said: “Higher interest income is expected for the banks specialising in lending, such as JPMorgan Chase and Wells Fargo. However, the outlook may stay gloomy due to the bank crisis in early March. The risks will be upon reduction in deposits, increase in loan loss provisions, and decline in the capital markets.”

Read more: Bank stocks to watch ahead of earnings reports

Oil prices

Meanwhile, US crude oil, or West Texas Intermediate (CL=F), gained 0.12% to $81.63 a barrel, while Brent crude (BZ=F) also went up – by 0.15% to $85.74 a barrel.

British pound

In currency news, the British pound fell slightly against the US dollar (GBPUSD=X) – down 0.01% to 1.24, meaning £1 will get you $1.24. Against the Euro, the British pound (GBPEUR=X) also fell – by 0.04% to 1.13.

De La Rue shares

Meanwhile, De La Rue (DLAR) shares plunged on Wednesday by over 30%, bringing its one-year loss to around 68% and its 5-year share price decline to more than 92%.

It comes after the company issued a profit warning with full-year earnings for fiscal 2023 expected to fall short of market estimates.

Victoria Scholar, head of investment at Interactive Investor, said: “2023 adjusted operating profit is now seen coming in at a mid-single digit percentage and for fiscal 2024 De La Rue forecasts a figure in the low £20m range.

“The British currency and passport maker has been suffering from weak demand for banknotes which is languishing at a 20-year low. Activist investor Crystal Amber Funds recently said the group’s turnaround plan announced three years ago is failing ‘by every measure’ and the company is ‘failing to control’ various fees paid out. The activist has also been trying to remove Kev Loosemore as Chairman but he survived a vote in December.”

Scholar also highlighted how, in recent years, De La Rue has struggled with the major loss of its British passport contract after Brexit, increased costs, supply chain woes, and a structural decline in demand for physical cash amid the rise of contactless payments and digital banking.

LVMH results

Investors will also be monitoring Luxury goods company LVMH (MC.PA). Europe’s most valuable company, which is home to brands such as Tiffany & Co, Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Sephora and Bulgari, is due to report its first-quarter sales after markets close.

Rightmove UK home sales

In other news, Rightmove (RMV.L) said the number of agreed home sales in March was just 1% below pre-pandemic levels from March 2019 but is down 18% year-on-year. A pickup in buyer demand resulted in a 10% increase in agreed sales from 2019 versus an 11% drop at the start of the year.

Victoria Scholar commented: “The market has been recovering since the turmoil around the mini-budget last year which sent mortgage rates temporarily sharply higher. Reduced asking prices have helped to generate a pickup in sales, with particular strength in the British capital thanks to strong demand from workers and overseas buyers for London apartments.

“With the housing market likely to cool further this year, and the Bank of England nearing the peak of the rate hiking cycle, we could see more buyers return to the market, as the recent headwinds which have stymied transactional activity subside.”

Watch: Tips to tackle grocery and gas prices amid inflation

Download the Yahoo Finance app, available for Apple and Android.

(Bloomberg) — A major coal port in Australia said vessels bound for China had arrived at the facility this month, adding more evidence of an easing of curbs on sales to the top consuming nation.

Most Read from Bloomberg

• Nigeria Latest: Tinubu Wins Ekiti Vote; Next Briefing at 11 a.m.

• Covid-19 Pandemic Most Likely Came From Lab Leak: WSJ

• Ukraine Latest: Saudi Foreign Minister in Surprise Visit to Kyiv

• Musk Deflects Criticism of Dilbert Cartoonist’s Racist Comments

• Goldman Turns to ‘Make-or-Break’ Unit as CEO Solomon Put to Test

“There are early signs that the informal ban on Australian coal imports to China may be in the process of being removed,” Dalrymple Bay Infrastructure Ltd., which operates the world’s largest metallurgical coal export facility in Queensland, said Monday in a statement.

Coal suppliers including BHP Group Ltd. have resumed exports to China after authorities gave clearance for some purchases to restart after an easing of diplomatic tensions between the two nations. Imports by China, previously a key customer, halted in late 2020 as an informal ban was imposed following disagreements on issues including the origins of coronavirus.

China could import as much as 20 million tons of hard coking coal from Australia this year, producer Coronado Global Resources Inc. said last month.

Dalrymple Bay shipped 53.3 million tons in 2022, with Japan, South Korea, India and Europe accounting for 75% of exports, the company said in its statement.

Most Read from Bloomberg Businessweek

• The Green Energy Revolution Needs a 211-Mile Road Through Pristine Alaskan Wilderness

• Higher Interest Rates Slam Stocks and Profits But Spare Workers

• Germ-Zapping Lasers Help Cut Down on Infections After Surgery

• After Multibillion-Dollar Fintech Binge, Wall Street Has a Writedown Hangover

• How Ben & Jerry's Ended Up at War With Itself

©2023 Bloomberg L.P.

(Bloomberg) — A decade ago, a UK startup’s plan to build a $4 billion mine more than a mile under the North Sea caught the nation’s imagination. It became a retail shareholder sensation and promised riches for many landowners. But when the company failed to raise the last piece of financing, it all came crashing down.

Most Read from Bloomberg

• Apple Makes Major Progress on No-Prick Blood Glucose Tracking for Its Watch

• US Housing Market Posts $2.3 Trillion Drop, Biggest Since 2008

• Putin Has Decided to Normalize His War

• Putin Says He’s Waiting for Xi Amid China Peace Push on Ukraine

• Russian Support for Putin’s War in Ukraine Is Hardening

For the last three years, the giant fertilizer project — which would be the UK’s biggest mine in more than four decades — has largely sat on ice, drifting from the public consciousness as its new owner Anglo American Plc figured out what to do with it.

Today it provided the answer. After taking a $1.7 billion writedown on the mine, Anglo unveiled its plans to spend almost $5 billion to bring the project into production by 2027, a decision that will likely secure thousands of jobs in one of the country’s poorest regions and become a major engine of growth for the company.

One of the world’s top mining companies, Anglo was attracted by the huge size of the deposit combined with the longer-term prospects for fertilizer demand. About 1.8 billion tons of a fertilizer called polyhalite are sitting more than 1.5 kilometers below the surface, and stretching out under the sea, which could be mined for more than 40 years. Demand for crop nutrients is expected to keep growing as a rising global population boosts food consumption.

“This resource is so unique, it’s one of a kind in terms of its size and shape,” Anglo Chief Executive Officer Duncan Wanblad said in a Bloomberg TV interview on Thursday. “We will be able to bring some very, very profitable fertilizer on to the market.”

Retail Interest

Sirius Minerals Plc, the mine’s previous owner, became a retail investor darling when it started fundraising for the project. Across the UK, regular people poured money into the company while the planned mine gained an almost cult-like following in North Yorkshire — in addition to buying shares, many locals saw the prospect of life-changing royalties on the mineral rights that fell on their land. Others simply hoped for jobs.

The overwhelming support helped Sirius win a license to build the project despite being in a National Park and overlooking the seaside town of Whitby, the setting for part of Bram Stoker’s “Dracula.”

But then Sirius ran out of money, and Anglo eventually stepped in with an offer.

While investors lost out — the takeover price was well below the heights at which many had bought their shares — Anglo’s decision to press ahead will be a major boon for the region and the wider UK. The project will likely employ more than 1,000 people once in full production and become a major exporter.

A $4 Billion Mine Was Meant to Lift Northern England. Instead Locals Lost Big

The investment in the Woodsmith project also forms part of a wider shift at the world’s biggest miners, as they retreat from fossil fuels and seek growth in commodities like fertilizers and metals that are needed for the green-energy transition.

Writedown

Anglo has written down the value of the project to reflect a change in the way it will be developed, compared with Sirius’s plans.

When Anglo bought Sirius in a half a billion dollar deal it was always likely the project would be delayed and changed. The smaller firm had been rushing to get into production as fast as possible, and Anglo has spent the last three years looking at ways to develop the project more strategically.

The result is that Anglo will now look to start production in 2027 after spending about $1 billion a year on top of the $2.6 billion it has already spent. That will allow it to target annual production of 5 million tons of fertilizer a year, with the capacity already built into crucial infrastructure such as the shafts, and to ultimately expand it to 13 million tons a year.

Polyhalite, or Poly4, is a type of potash found under the North Sea. It’s a relatively unknown type of fertilizer, so Anglo faces the additional challenge of proving how big the market will ultimately be.

Anglo’s plans also come at a time of massive volatility in global fertilizer markets. Prices spiked last year after Russia’s invasion of Ukraine threw the world’s crop-nutrient sector into disarray. While prices have since eased, the long-term outlook remains strong as the global population and its demand for food grows.

Most Read from Bloomberg Businessweek

• With Human Metalworkers Hard to Come By, Robotic Blacksmiths Step Up

• How Ben & Jerry's Ended Up at War With Itself

• Spy Balloons Are the Slow and Silent Future of Surveillance

• After Multibillion-Dollar Fintech Binge, Wall Street Has a Writedown Hangover

• The World’s War Machine Is Running Low on Ammunition

©2023 Bloomberg L.P.

Mining group extends cost and timeframe estimates for bringing Woodsmith project into production by 2027

By Sameer Manekar and Melanie Burton

(Reuters) -Global miner BHP Group was positive about demand outlook through to fiscal 2024 as top metals consumer China reopens and shifts policy towards its debt-laden property sector, the company said on Tuesday after its 2023 first-half profit missed estimates.

However, its interim dividend of 90 cents per share, while lower than last year's $1.50 per share, beat Vuma Financial's estimate of 88 cents.

"We are positive about the demand outlook in the second half of fiscal 2023 and into fiscal 2024, with strengthening activity in China on the back of recent policy decisions the major driver," Chief Executive Officer Mike Henry said.

"We expect domestic demand in China and India to provide stabilising counterweights to the ongoing slowdown in global trade and in the economies of the U.S., Japan and Europe," he said in a statement.

Last year, miners wrestled with surging costs, a tight domestic labour market and lower iron ore prices due to China's strict zero-COVID policy. But the reopening of the world's second-biggest economy and a property sector policy shift has BHP upbeat on the commodity demand outlook.

"The long-term outlook for our commodities remains strong given population growth, rising living standards and the metals intensity of the energy transition, including for steelmaking raw materials," Henry added, apparently referring to metals demand for products like electric vehicles and windmills.

However, in an environment where central banks are aggressively tightening their monetary policy, BHP expects its operating environment to remain volatile in the near term, but expects China to be a source of stability for commodity demand.

For six months ended Dec. 31, the world's largest listed miner said underlying profit attributable to continuing operations was $6.6 billion, compared with $9.72 billion a year earlier. That missed a Vuma Financial estimate of $6.82 billion.

"There was nothing in that we didn’t expect to see," said analyst David Lennox of Fat Prophets in Sydney, adding shareholders would find comfort in a slightly better-than-expected dividend payout.

"We have got BHP as a hold primarily because their share price is sitting up at record highs and they are going to have to do pretty well to justify those levels."

The Melbourne-based miner also warned it now expects the marginal cost of mining production to be markedly higher than prior to the COVID-19 pandemic.

BHP, along with joint venture partner Mitsubishi Development, has started pursuing options to divest Daunia and Blackwater coal mines, two of nine metallurgical coal mines in Queensland's Bowen Basin.

(Reporting by Sameer Manekar and Himanshi Akhand in Bengaluru, and Melanie Burton in Melbourne; Editing by Jonathan Oatis and Josie Kao)

*

H1 profit misses estimate

*

Interim dividend beats estimate

*

Positive on demand outlook from China

*

Starts process to sell two Queensland met coal mines

(Updates with cost of mining production, sale process of two coal mines, analyst comment)

By Sameer Manekar and Melanie Burton

Feb 21 (Reuters) – Global miner BHP Group was positive about demand outlook through to fiscal 2024 as top metals consumer China reopens and shifts policy towards its debt-laden property sector, the company said on Tuesday after its 2023 first-half profit missed estimates.

However, its interim dividend of 90 cents per share, while lower than last year's $1.50 per share, beat Vuma Financial's estimate of 88 cents.

"We are positive about the demand outlook in the second half of fiscal 2023 and into fiscal 2024, with strengthening activity in China on the back of recent policy decisions the major driver," Chief Executive Officer Mike Henry said.

"We expect domestic demand in China and India to provide stabilising counterweights to the ongoing slowdown in global trade and in the economies of the U.S., Japan and Europe," he said in a statement.

Last year, miners wrestled with surging costs, a tight domestic labour market and lower iron ore prices due to China's strict zero-COVID policy. But the reopening of the world's second-biggest economy and a property sector policy shift has BHP upbeat on the commodity demand outlook.

"The long-term outlook for our commodities remains strong given population growth, rising living standards and the metals intensity of the energy transition, including for steelmaking raw materials," Henry added, apparently referring to metals demand for products like electric vehicles and windmills.

However, in an environment where central banks are aggressively tightening their monetary policy, BHP expects its operating environment to remain volatile in the near term, but expects China to be a source of stability for commodity demand.

For six months ended Dec. 31, the world's largest listed miner said underlying profit attributable to continuing operations was $6.6 billion, compared with $9.72 billion a year earlier. That missed a Vuma Financial estimate of $6.82 billion.

"There was nothing in that we didn’t expect to see," said analyst David Lennox of Fat Prophets in Sydney, adding shareholders would find comfort in a slightly better-than-expected dividend payout.

"We have got BHP as a hold primarily because their share price is sitting up at record highs and they are going to have to do pretty well to justify those levels."

The Melbourne-based miner also warned it now expects the marginal cost of mining production to be markedly higher than prior to the COVID-19 pandemic.

BHP, along with joint venture partner Mitsubishi Development, has started pursuing options to divest Daunia and Blackwater coal mines, two of nine metallurgical coal mines in Queensland's Bowen Basin. (Reporting by Sameer Manekar and Himanshi Akhand in Bengaluru, and Melanie Burton in Melbourne; Editing by Jonathan Oatis and Josie Kao)

By Himanshi Akhand and Melanie Burton

BENGALURU/MELBOURNE (Reuters) – Australia's iron ore giants BHP Group, Rio Tinto and Fortescue are set to report a steep drop in their earnings, which is set to compress their payouts to shareholders, after China's COVID lockdown drove down iron ore prices.

Earnings at Rio Tinto and BHP Group are seen declining 48% and 28%, respectively, for the six months to December 2022, while Fortescue's half-year earnings are set to slide about 16%, based on estimates from Visible Alpha and Vuma Financial.

The miners are expected to offer a mixed outlook for 2023, amid uncertainty over the strength of China's recovery following the lifting of its strict COVID-19 curbs.

"We haven't seen too much hard data from China just yet, but I think there's enough for the miners to be more optimistic – cautiously so," said Adrian Prendergast, an analyst at Morgans Financial in Melbourne.

The companies are also facing higher materials and fuel costs and a dearth of skilled workers that could impinge on their expansion projects.

Average realised prices for iron ore fell sharply in the six months to December, hitting earnings.

Dividend payouts are expected to fall, undermined by the weaker earnings and a push by the major diversified miners to fund growth, be it through building their own projects or through acquisitions, analysts at Goldman Sachs wrote in a note.

Buyout activity has been ramping up in the mining sector, as evidenced by Rio's recent $3.3 billion takeover of Canada's Turquoise Hill to gain control of its Mongolian copper mine, and BHP's A$9.6 billion offer for copper and gold producer OZ Minerals.

BHP, which will report its first-half results on Feb. 21, is expected to record attributable profit from total operations of $6.82 billion, down from $9.44 billion.

First-half net profit at Fortescue, reporting on Feb. 15, is seen declining to $2.34 billion from $2.78 billion. BHP and Fortescue report on a July-June financial year.

Underlying half-year profit at Rio Tinto, which reports on a calendar year cycle, is seen declining 48% to $4.77 billion from $9.21 billion. Rio will report on Feb. 22.

(Reporting by Himanshi Akhand in Bengaluru and Melanie Burton in Melbourne; Editing by Sonali Paul)

MELBOURNE, Jan 31 (Reuters) – New South Wales is set to finalise an order by mid-February that will require all mining firms in Australia's biggest coal exporting state to reserve as much as 10% of their output for domestic supply.

A Department of Planning and Environment spokesperson said the government would issue final directions after talks with miners.

"The draft revised directions allow suppliers the option to provide coal from their own production or to strike an agreement from another supplier to meet their obligations under the directions," the spokesperson said.

The updated plan, disclosed last week, is designed to keep a lid on coal prices and drive down household power bills. The state last week had planned to issue the expanded order by the end of January, but has faced resistance from miners.

The department did not say how many tonnes of coal will be required.

Whitehaven Coal Chief Executive Paul Flynn has said the government appeared to be looking to secure around 3 million to 5 million tonnes, but the company was pressing the state to explain how that shortfall estimate had been determined.

Directions issued in December required a dozen coal mines that supply power plants in New South Wales to fill a shortfall in supply at a capped price of A$125 a tonne – well below the export price currently at about $265 a tonne – under a deal with the federal government.

The mines are mainly owned by Glencore Plc, Peabody Energy, New Hope Corp and Thailand's Banpu PCL .

The state now wants to spread the requirement to all the state's coal producers, including those that export all of their output, including BHP Group, Whitehaven Coal and Yancoal Australia.

BHP has said the new policy could affect its plan to keep its Mt Arthur coal mine, the state's largest single coal mine, open until 2030. (Reporting by Sonali Paul; Additional reporting by Melanie Burton; Editing by Edwina Gibbs)

Most readers would already be aware that Anglo American’s (LON:AAL) stock increased significantly by 19% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Anglo American’s ROE.

Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

See our latest analysis for Anglo American

How To Calculate Return On Equity?

ROE can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity

So, based on the above formula, the ROE for Anglo American is:

26% = US$9.3b ÷ US$36b (Based on the trailing twelve months to June 2022).

The ‘return’ is the yearly profit. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.26 in profit.

Why Is ROE Important For Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or “retain”, we are then able to evaluate a company’s future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don’t necessarily bear these characteristics.

Anglo American’s Earnings Growth And 26% ROE

To begin with, Anglo American has a pretty high ROE which is interesting. Additionally, the company’s ROE is higher compared to the industry average of 13% which is quite remarkable. This probably laid the groundwork for Anglo American’s moderate 19% net income growth seen over the past five years.

We then performed a comparison between Anglo American’s net income growth with the industry, which revealed that the company’s growth is similar to the average industry growth of 18% in the same period.

past-earnings-growth

Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company’s expected earnings growth (or decline). Doing so will help them establish if the stock’s future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Anglo American is trading on a high P/E or a low P/E, relative to its industry.

Is Anglo American Using Its Retained Earnings Effectively?

With a three-year median payout ratio of 42% (implying that the company retains 58% of its profits), it seems that Anglo American is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that’s well covered.

Additionally, Anglo American has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 47%. However, Anglo American’s future ROE is expected to decline to 12% despite there being not much change anticipated in the company’s payout ratio.

Summary

Overall, we are quite pleased with Anglo American’s performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company’s fundamentals? Click here to be taken to our analyst’s forecasts page for the company.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

(Refiles to add Codelco to the headline)

SANTIAGO, Dec 28 (Reuters) – Anglo American PLC and Chile's Codelco said on Wednesday they are evaluating alternative copper shipment plans after a fire forced a major port in central Chile to close last week.

The fire in the Ventanas port, about 115 kilometers (71.5 miles) northwest of Santiago, left a huge cloud of smoke in the area, but did not spread to nearby facilities, including AES, an electricity company, or Codelco, the world's largest copper producer.

In a statement to Reuters, Anglo American said the fire did not affect its warehouses or infrastructure but that "authorities have completely closed the port" while the incident is investigated.

"The company is evaluating courses of action and at the same time contacting its clients to keep them informed of the status of the situation," the statement said.

The company did not specify the copper volumes that could be affected. Chile is the world's top copper producer.

Codelco said its operations had not been impacted by the fire, but added that "the company is in advanced talks with ports in the Valparaiso region and other nearby areas to continue its shipments and thus fulfill its commercial commitments." (Reporting by Fabian Andrés Cambero; Editing by Barbara Lewis and Matthew Lewis)

(Bloomberg) — China is about to upend the $160 billion iron ore trade with the biggest change in years as Beijing expands efforts to increase control over the natural resources needed to feed its economy.

Most Read from Bloomberg

• Trump Hawks Superhero NFT Trading Cards as Crypto Universe Implodes

• Is Putin Finally Getting Smart About His Ukraine Disaster?

• Elon Musk’s Tesla Share Sales Approach the $40 Billion Mark

• US Stocks Drop for a Second Day; Oil Snaps Rally: Markets Wrap

A new state-owned company called China Mineral Resources Group is poised to become the world’s biggest iron ore buyer as soon as next year, when it will begin consolidating purchases on behalf of about 20 of the largest Chinese steelmakers including leader China Baowu Steel Group Corp., according to people familiar with the situation.

CMRG has already begun discussing supply contracts with top producers Rio Tinto Group, Vale SA and BHP Group, said the people, who asked not to be identified discussing private information.

The move to consolidate buying for China’s massive steel industry will give CMRG unprecedented negotiating power in iron ore, and the new company plans to seek discounts to prevailing market prices. It’s the latest in a number of attempts by China, the No. 1 buyer of almost every major commodity, to increase its influence over global markets and pricing.

Representatives from the major iron ore miners were informed of the changes by Chinese officials in recent meetings. The current structure for “term” supply contracts — in which steelmakers place orders on a quarterly basis and use a spot index for pricing — is expected to continue, with CMRG taking over responsibility for certain contracts to begin with, said the people.

Iron ore futures slumped as much as 3.9% in Singapore on Friday, the biggest drop this month.

Multiple attempts to seek comment from CMRG were unsuccessful. Baoshan Iron & Steel Co., the listed unit of Baowu, did not respond to an emailed query. BHP and Rio declined to comment. Vale has been working closely with CMRG and sees an opportunity to strengthen its relationship with China in this new context, the company wrote in an emailed response. “We see ourselves as China’s long-term partner and a reliable supplier to the Chinese steel industry of the future.”

China, which accounts for about three-quarters of the world’s iron ore imports, has long complained the mega miners hold too much power because supply is so concentrated — the top three producers control more than half of global exports.

CMRG was established in July to buy raw materials for the giant domestic steel industry, but it has been unclear how quickly it would begin operating, or how much of the industry’s purchasing would end up being centralized.

If implemented, the move to buy through CMRG will be the biggest change to the iron ore market since 2010, when producers led by BHP took advantage of a scramble for supplies to break a 40-year system of selling iron ore at a set annual price, arguing that prices should be driven by market fundamentals.

Now, the power balance has switched. Demand is stagnating, weakening the miners’ position, and the world’s biggest steelmaker is flexing its muscles. Chinese iron ore demand has fallen from a peak in 2020, and Macquarie Group Ltd. forecasts it will not return to that level within the next five years.

Read: China Wants to Rewire Its Billion-Ton Iron Ore Trade: QuickTake

The recent discussions have spooked senior executives at the biggest miners, who are worried about the potential for China to increase its control over prices in their most profitable commodity.

China’s current plan is to move all term supply contracts for the leading steelmakers over time to CMRG, the people said, although the negotiations are still ongoing and the situation could change. The company will act as an agent for the steelmakers and has hired leaders and key traders from Chinese metals firms.

“The miners don’t have a choice – they have to sign up to this China-based price-setting agency, because there’s no one else out there to buy these tons,” said Tom Price, head of commodities strategy at Liberum Capital. Over time the move could push the big miners to work more closely, given that supply is so concentrated among a few producers, he said.

“Given this market’s structure, if China decides to dictate pricing terms then we should expect the miners to respond by behaving less competitively, and more strategically.”

Tensions between the top iron ore producers and their biggest buyer are nothing new.

For most of the industry’s recent history, iron ore was sold based on the annual “benchmark” price, set through lengthy negotiations between the Australian miners and Japan’s Nippon Steel Corp. and China’s Baoshan Iron & Steel Co., which the rest of the industry would use as a reference.

In 2010, under pugnacious Chief Executive Officer Marius Kloppers, BHP decided to break the system. Negotiations had become increasingly difficult and ugly, and the biggest miner was convinced it was leaving too much money on the table.

Read: Rio, BHP Vow to Cooperate With China’s Iron Ore Firm

With Chinese demand roaring and supply at the time increasingly tight, the miners were able to move pricing onto a spot market, where prices jumped from about $60 a ton to $150 a ton in little more than a year. Strong iron ore prices since then — with the exception of the commodity collapse in 2015 — have helped produce eye-watering profit margins at the biggest miners.

Beijing has long pointed to a power imbalance between the clutch of global mining giants on the one hand and China’s vast but fragmented steel industry on the other. The country imports 1.1 billion tons of iron ore annually to help supply about 500 steel mills, of which the top 10 companies only contribute 40% of the national output.

There was no fanfare when CMRG was established in July, but people familiar with the matter told Bloomberg at the time that its creation was encouraged and closely monitored by top leaders in Beijing. They see a consolidated platform for buying resources as a way to strengthen the country’s negotiating position in an unfriendly international environment.

Despite that, CMRG received little global attention so far. BHP, Vale and Rio’s executives have made few public comments about the company, mostly restricted to recent posts on Chinese social media pledging to work with the new venture. Analysts and investors haven’t seemed overly interested either — it didn’t come up at all in questions during a Rio Tinto investor day last month.

The fact that iron ore supply is so concentrated may limit CMRG’s negotiating power for now, said David Lennox, a resource analyst at Sydney-based Fat Prophets.

“It will only work when there are significant supply sources available for the single buyer to play off against each other, and that is well down the track.”

–With assistance from Mariana Durao and Liz Ng.

(Updates with comments from analysts.)

Most Read from Bloomberg Businessweek

• Long Covid’s Effects Go Beyond Respiratory Issues

• A Racist Tweet Wasn’t the Only Problem at Elite London Firm

• AmEx Hooked Big Spenders and Regained the Throne With a Pricier Platinum Card

• How a Cocaine-Smuggling Cartel Infiltrated the World’s Biggest Shipping Company

• China’s iPhone Factory Stumbles Give India a Chance to Swoop In

©2022 Bloomberg L.P.

(Updates with context, comment)

Dec 16 (Reuters) – Rio Tinto Ltd said on Friday it had completed its long drawn-out acquisition of remaining 49% stake in Turquoise Hill Resources, giving the Anglo-Australian firm a 66% stake in Mongolia's Oyu Tolgoi, the world's largest known copper and gold deposit.

Turquoise Hill shareholders last week voted in favour of Rio Tinto's $3.3 billion bid to take the Canadian company private after months of back and forth.

Minority shareholders were against the deal over valuation, and no. 2 shareholder Pentwater Capital Management accused Rio of concealing delays and huge cost overruns at Oyu Tolgoi.

The larger stake in Oyu Tolgoi will help Rio Tinto compete better with BHP Group over battery metals production as the world speeds up the shift towards green economy.

BHP Group last month made a renewed $6.5 bln play for copper miner OZ Minerals, potentially allowing the miner to consolidate its copper assets in South Australia if the deal goes through.

"We now have a simpler and more efficient ownership and governance structure with our partner the Government of Mongolia, as we proceed together towards sustainable production from the underground mine," Rio Tinto's copper chief executive Bold Baatar said.

Shares of Rio Tinto finished 0.8% higher on the Australian Stock Exchange. (Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

• Pulsed power could transform mining and decarbonise key steps of the mineral extraction process

• BHP invests in both I-Pulse and its affiliate, I-ROX, to develop new disruptive approaches to crushing and grinding of ores

Toulouse, France–(Newsfile Corp. – December 12, 2022) – I-Pulse Inc. (I-Pulse) and I-ROX SAS (I-ROX) are pleased to today announce a comprehensive collaboration arrangement with BHP, a world-leading resources company, to identify and develop applications of pulsed-power technology across multiple aspects of the mining industry.

Earlier this year, I-Pulse and Breakthrough Energy Ventures-Europe (BEV-E) announced the establishment of I-ROX, which is focused on demonstrating that short, high-intensity bursts of energy delivered using pulsed-power technology can quickly and efficiently shatter rocks and mineral ores. This process, which targets tensile weakness in rocks, could substantially reduce the time, energy usage and greenhouse gas (GHG) emissions currently generated by critical mining activities. The crushing and grinding of ores is the most energy- and capital-intensive aspect of the entire mining process – it is estimated to comprise approximately 4% of all electrical energy consumption globally and more than half a typical mine’s power usage.

BHP has entered into a collaboration agreement with I-ROX under which the companies will work together to seek to accelerate the development of I-ROX’s technology and business, and BHP will be offered direct access to this potentially disruptive technology. BHP has also made an equity investment in I-ROX, joining I-Pulse and BEV-E as shareholders.

BHP has also made an equity investment in, and entered into a collaboration agreement with, I-Pulse to identify new applications for pulsed-power technology in a mining context. Within the mining industry, pulsed-power technology is currently deployed by I-Pulse’s former subsidiary, Ivanhoe Electric Inc., in mineral exploration via its proprietary Typhoon™ system. Further opportunities to develop and commercialize pulsed-power-based applications include drilling, tunnel boring, blasting and explosives replacement.

These collaboration arrangements will link the mining and processing expertise of BHP with the pulsed-power technology and expertise of I-Pulse and I-ROX, in an effort to transform multiple aspects of mining with the potential for economic and environmental upside. This includes materially reducing GHG emissions associated with rock crushing.

Mike Henry, BHP’s Chief Executive Officer, explained, “The collaboration with I-Pulse and I-ROX will contribute to our growing portfolio of options with potential to both improve the competitiveness of and help decarbonise our current business, and also to unlock new growth opportunities beyond those available today. We are excited by the opportunity to work more closely with I-Pulse and I-ROX and bring our own expertise to the relationship to together develop these solutions.”

Robert Friedland, Chairman of I-Pulse said, “I-Pulse technologies offer transformational improvement potential in so many aspects of life. Pulsed power could enable significant energy savings in mining and manufacturing, as well as opportunities in relation to geothermal energy. The TyphoonTM system is being applied to precisely locate ore bodies and groundwater.

“BHP’s investment and our collaboration offer a meaningful step forward in the development and commercialisation of I-Pulse technologies for the mining industry and particularly in relation to the prospect of the crushing and grinding of rocks for a fraction of today’s energy consumption, environmental impact and costs.”

For more information, please contact:

Bradley Doig (bradley.doig@ipulse-group.com) ORPhil Mitchell (philip.mitchell@ipulse-group.com)

LinkedIn: I-ROX

About I-Pulse

Founded by Robert Friedland and Laurent Frescaline in 2005, I-Pulse Inc., a private U.S. company headquartered in Toulouse, France, uses its unique expertise in electrical energy to power disruptive industrial solutions. Mr. Frescaline is a plasma physicist and an electrical engineer who founded a successful high-technology company specialising in pulsed-power applications with domestic and international governmental agencies. The I-Pulse suite of technologies utilises proprietary capacitors that safely and repeatedly compress and release stored electricity in billionths of a second. The extremely high-powered discharges, which utilise extremely small amounts of energy, generate precise shockwaves directed to shape and assemble metals to previously unachievable degrees of precision; generate electrical fields that reveal chargeable or resistive mineral deposits, or water, at depth; and crush rock containing minerals or gemstones. I-Pulse is commercializing these applications in industries such as advanced manufacturing and mineral exploration. I-Pulse operates its I-Cube research and development facilities in Toulouse, France. Visit www.ipulse-group.com to learn more.

About BHP

BHP was founded in 1885 and is a leading global resources company headquartered in Melbourne, Australia, focused on providing the resources the world needs to grow and decarbonise. Copper for renewable energy. Nickel for electric vehicles. Potash for sustainable farming. Iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. BHP operates in more than 90 locations including throughout Australia, Chile, and the United States, with a workforce of 80,000 employees and contractors.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/147549

MELBOURNE, Dec 1 (Reuters) – Mining is facing a major shortage of the digital skills it needs, and must step up or lose out to the "cool kids" of Google and Amazon, a BHP Group executive said on Thursday.

Miners are increasingly reliant on computing heft to manage tasks such as automated truck fleets, and using artificial intelligence to delve into reams of data and discover the next big deposit, said Chief Technology Officer Laura Tyler.

"We need more technologists, more data scientists and more mathematicians," she told a Melbourne Mining Club lunch, according to a prepared speech.

"We compete for such talent not just with each other, but with the cool kids such as Google and Amazon … the defence and pharmaceuticals industries, government and NGOs," she told the business luncheon. "Increasingly, we need more digital skills in every aspect of what we do."

A PwC analysis last year suggested that by 2040, the industry will need 21% more mining engineers and geotech engineers, and 29% more metallurgists than it had in 2020, she said.

"We need to train them now … and we need to make sure they see the mining industry as stable, attractive, and dare I say it, exciting," she said.

Australia's mining giants BHP, Rio Tinto Ltd and Fortescue have redoubled efforts to attract new workers to an industry confronting a dire skills shortage, and concerns over job security, sexual harassment and social licence.

So far, however, efforts are bearing fruit, Tyler said.

BHP's First Year Intern program was oversubscribed seven times and resulted in 60 graduates deciding to switch to resources-facing subjects for their next year of university, she said.

A program at Adelaide University is developing a pipeline of exploration geologists, specialising in finding ore deposits deep beneath the surface.

BHP has also established a reentry program to welcome back those who left the industry, while Rio Tinto's efforts to advance jobs in automation and industry efforts to train metallurgists are all bearing fruit – but are still not enough, she said. (Reporting by Melanie Burton. Editing by Gerry Doyle)

(Bloomberg) — BHP Group Ltd., the world’s biggest miner, is warning a shortage of skilled workers from mining engineers to mathematicians will hamper efforts to meet soaring demand for metals crucial to the energy transition.

Most Read from Bloomberg

• Musk’s Neuralink Hopes to Implant Computer in Human Brain in Six Months

• An Arizona County’s Refusal to Certify Election Results Could Cost GOP a House Seat

• Scientists Revive 48,500-Year-Old ‘Zombie Virus’ Buried in Ice

• Stock Traders Cheer Powell’s Risk-Friendly Shift: Markets Wrap

• NYC Becomes One Billionaire Family’s Haven From China Property Crash

Increasingly advanced technological expertise is needed to discover and access new deposits of “difficult to find” key metals such as copper and nickel, Laura Tyler, BHP’s chief technical officer, said in a speech in Melbourne on Thursday.

“They are becoming deeper, harder to access, in more challenging regions,” Tyler said. “As we automate and electrify our operations, move work to remote operating centers, change the very equipment our maintainers look after, we have to train for new skills.”

Demand for copper — a core metal in almost every electrical technology from power grids to electric vehicles — is expected to double over the next 30 years, while the need for nickel, a key component in lithium-ion batteries, will quadruple, Tyler said. Both “future facing” metals are key to BHP’s growth plans, along with fertilizer ingredient potash, as consumption of its main commodity iron ore plateaus and it winds back its exposure to coal.

Read more: BHP Says China Growth Will Help Offset Wider Global Slowdown

To meet demand for the so-called “green metals,” by 2040 the world will need 21% more mining and geotech engineers and 29% more metallurgists, Tyler said, citing PricewaterhouseCoopers LLP research. “We need to train them now,” she added.

“Even as we retrain our people to meet the challenges of the new way of operating, we know this will not be enough,” she said. “We need more technologists. More data scientists. And more mathematicians.”

Demand for less skilled forms of labor in the sector, however, will drop thanks to automation of vehicles and equipment, she said.

Most Read from Bloomberg Businessweek

• TikTok’s Viral Challenges Keep Luring Young Kids to Their Deaths

• The Avatar Sequel Is a Make-or-Break Moment for Disney’s $71 Billion Fox Deal

• Car Price Divergence Hints at More Painful Inflation Ahead

• Global Debt Costs Are Soaring. Here’s Where It Will Hurt Most

• FTX’s Collapse Validates Gary Gensler’s Crypto Skepticism

©2022 Bloomberg L.P.

The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of Anglo American plc (LON:AAL) stock is up an impressive 143% over the last five years. It’s also up 25% in about a month.

After a strong gain in the past week, it’s worth seeing if longer term returns have been driven by improving fundamentals.

View our latest analysis for Anglo American

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Anglo American achieved compound earnings per share (EPS) growth of 14% per year. This EPS growth is slower than the share price growth of 19% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that’s hardly shocking given the track record of growth.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth

It might be well worthwhile taking a look at our free report on Anglo American’s earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Anglo American’s TSR for the last 5 years was 224%, which exceeds the share price return mentioned earlier. And there’s no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It’s good to see that Anglo American has rewarded shareholders with a total shareholder return of 28% in the last twelve months. That’s including the dividend. That’s better than the annualised return of 26% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we’ve identified 2 warning signs for Anglo American (1 doesn’t sit too well with us) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

(Bloomberg) — BHP Group Ltd. made an improved A$9.6 billion ($6.4 billion) offer to acquire copper producer OZ Minerals Ltd. as the world’s top miner seeks more exposure to rising demand from clean energy and electric cars.

Most Read from Bloomberg

• Musk’s ‘Hardcore’ Ultimatum Sparks Exodus, Leaving Twitter at Risk

• FTX’s New Boss Reveals Chaos Left Behind by Bankman-Fried

• GOP Retakes US House by Slim Margin in Washington Power Shift

• Xi Looks Away From Putin Toward West in World Stage Return

• Elizabeth Holmes Says US Is Wrong to Suggest She Marry Her Partner to Pay Debts

OZ Minerals will recommend shareholders vote in favor of the A$28.25 a share offer, the Adelaide, Australia-based company said Friday, after rejecting an earlier A$25 per share bid in August. The proposed acquisition would be BHP’s largest since the $12.1 billion purchase of Petrohawk Energy Corp. in 2011.

Miners across the globe are hungry for copper assets to add a metal that’s regarded as critical to the energy transition due to its use in electricity networks, renewable energy and electric vehicles. Demand for copper is set to jump 58% by 2040, according to BloombergNEF, and BHP is looking to consolidate its position as one of the world’s largest producers.

BHP has said so-called future facing metals copper and nickel, as well as fertilizer ingredient potash, are key to the company’s growth as demand plateaus for iron ore, its most important commodity, and the world moves away from fossil fuels. BHP has reduced its coal business in recent years, and sold its entire oil and gas business to Woodside Energy Group this year.

“The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership,” BHP Chief Executive Officer Mike Henry said.

OZ Minerals shares rose as much as 4.5% to A$27.49, the highest level since April, and traded at A$27.38 as of 12:13 p.m. in Sydney on Friday.

The latest offer is 49% above the OZ Minerals share price on Aug. 5, the trading session before BHP made its first bid. BHP will now conduct due diligence and the offer will be its “best and final” proposal, the company said.

OZ Minerals, which has operations adjacent to BHP’s huge Olympic Dam mine in South Australia, would add around 7% to BHP’s annual copper production. The target also has mines in Brazil and a key nickel project in Western Australia.

“BHP’s revised proposal is a clear reflection of OZ Minerals’ unique set of highly strategic, quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel assets in strong demand due to global electrification,” OZ Minerals Chief Executive Officer Andrew Cole said.

The offer came as Rio Tinto Group, BHP’s biggest competitor, hit another roadblock in its bid to take full control of Turquoise Hill, a Canadian company that has what would be one of the world’s largest copper mines in Mongolia.

(Adds shares in sixth paragraph. A previous version of the story corrected the currency in headline.)

Most Read from Bloomberg Businessweek

• Fatal Crashes Highlight Rising Danger of Illicit Charter Flights

• North America’s EV Future Hinges on a North Carolina Turtle Pond

• FTX Was an Empty Black Box All Along

• Meta Confronts an Apple-Sized Hole in Its Once-Mighty Advertising Business

• Twitter’s Layoffs Are the Perfect Example of How Not to Fire People

©2022 Bloomberg L.P.

(Bloomberg) — Oz Minerals Ltd. has requested a trading halt pending an announcement in relation to a potential change-of-control transaction, three months after the copper miner rejected a A$8.4 billion ($5.7 billion) bid by BHP Group Ltd.

Most Read from Bloomberg

• Ukraine Latest: Biden Says Missile Likely Not Fired From Russia

• Trump Makes His 2024 Run Official, Defies Calls to Move On

• Poland Says Russian-Made Missile Hit Territory and Killed Two People

• Musk Steps Up Purge of Twitter Engineers Who Criticize Him

• Biden Says Unlikely Rocket That Hit Poland Was Fired From Russia

The securities will remain in the trading halt until the commencement of normal trading on Friday, or when the announcement is released to the market, Oz Minerals said in a statement to the Australian Securities Exchange on Wednesday.

BHP was the likely bidder, but it’s also possible it could be a new entrant because the mining giant hadn’t entered a trading halt, Shaw and Partners analyst Peter O’Connor said in a note. The bidder would need to offer “A$30 a share or close to it,” he said.

BHP’s initial offer for Oz Minerals was for A$25 a share. The company’s shares closed at A$26.30 in Sydney on Tuesday.

A spokesperson from BHP declined to comment.

See also: Oz Minerals Said to Seek A$10 Billion in Potential Sale

BHP, which hived off its oil and gas assets this year, is seeking growth in commodities tied to trends including low-emissions transport and clean energy — particularly copper for renewables and nickel for lithium-ion batteries. The mining giant is also pouring billions of dollars into a giant new potash mine in Canada to enter the fertilizer sector.

(Updates with comment from analyst in 3rd paragraph.)

Most Read from Bloomberg Businessweek

• Google’s Moonshot Lab Is Now in the Strawberry-Counting Business

• How Apple Stores Went From Geek Paradise to Union Front Line

• Americans Have $5 Trillion in Cash, Thanks to Federal Stimulus

• One of Gaming’s Most Hated Execs Is Jumping Into the Metaverse

• The Golden Era of AI Chess Makes Things Tricky for Players

©2022 Bloomberg L.P.

If you want to know who really controls Anglo American plc (LON:AAL), then you’ll have to look at the makeup of its share registry. We can see that institutions own the lion’s share in the company with 72% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And as as result, institutional investors reaped the most rewards after the company’s stock price gained 14% last week. One-year return to shareholders is currently 25% and last week’s gain was the icing on the cake.

In the chart below, we zoom in on the different ownership groups of Anglo American.

See our latest analysis for Anglo American

ownership-breakdownWhat Does The Institutional Ownership Tell Us About Anglo American?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Anglo American already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Anglo American’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don’t have many shares in Anglo American. The company’s largest shareholder is BlackRock, Inc., with ownership of 9.0%. Public Investment Corporation Limited is the second largest shareholder owning 7.3% of common stock, and The Vanguard Group, Inc. holds about 4.2% of the company stock.

After doing some more digging, we found that the top 21 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Anglo American

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that Anglo American plc insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. As it is a large company, we’d only expect insiders to own a small percentage of it. But it’s worth noting that they own UK£81m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Anglo American. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 10%, of the company’s shares. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Anglo American better, we need to consider many other factors. Take risks for example – Anglo American has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

LONDON (Reuters) – BHP Group is teaming up with steelmaker ArcelorMittal and two others to test a new technology to reduce carbon emissions in steel making at two plants in Belgium and North America.

The trials, at ArcelorMittal's Gent steel blast furnace in Belgium and another plant in North America, also involve Japan's Mitsubishi Heavy Industries Engineering (MHIENG), which developed the carbon capture technology, and Mitsubishi Development Pty, another supplier of steel-making coal.

By discharging over 3 billion tonnes of carbon dioxide a year, the steel industry accounts for 7-9% of global greenhouse gas (GHG) emissions.

"What's really interesting in this partnership is that … it is not a desktop exercise but a real world application in an operational plant," said BHP Chief Commercial Officer Vandita Pant.

The world's number one miner produced more than 37 million tonnes of metallurgical coal, an essential ingredient to produce steel, in the financial year to June.

Large mining companies have been partnering with technology firms and others in the supply chain to find ways to reduce their carbon footprint and help reduce emissions in some of the most energy-intensive industries.

BHP's partnerships, for example, also include one with India's Tata Steel, which uses biomass as a source of energy.

"There isn't a silver bullet, there isn't one path or technology for low-carbon emissions in steelmaking," Pant said.

"We are covering many different technologies and geographies with these partnerships … to enable lower GHG emissions steel and support the reduction of carbon intensity in blast furnaces," Pant said.

(Reporting by Clara Denina; Editing by Tomasz Janowski)