Base Metals Archives - Page 17 of 97

(Reuters) -Canadian miner Teck Resources beat third-quarter profit estimates on Thursday, helped by higher copper production volumes at its Chile mine and on strong prices of the red metal.

Copper prices remained elevated in the quarter, supported by optimism about Chinese demand following a series of stimulus measures from Beijing. Long-term demand view for the red metal continues to be bullish on the back of its critical role in the energy transition.

Teck said copper prices rose by about 11.7% from a year earlier and averaged around $4.21 per pound.

The Quebrada Blanca (QB) mine in Chile reported record production during the quarter as operations continued to ramp up. This helped Teck achieve a jump of around 60% in copper output to 115,000 metric tons.

However, the company cut its full-year copper production forecast for the second time in a row, citing labour issues and mining delays at the Highland Valley Copper mine in Canada.

It also reduced the upper end of its 2024 annual copper production guidance for QB. Teck now expects full-year copper production of 420,000 to 455,000 tons, compared with the previous guidance of 435,000 to 500,000 tons.

Teck revamped its operations this year by selling 77% interest in the steelmaking coal unit to Swiss miner Glencore Plc. The deal, one of the largest in the industry, was completed in July.

The deal was part of Teck's transition into a pure-play energy transition metals company.

"We have returned more than $1.3 billion to shareholders so far this year, while also reducing debt and ramping-up copper production," CEO Jonathan Price said in a statement

The company reported an adjusted profit of C$0.60 ($0.4340) per share for the quarter ended Sept. 30, compared with analysts' average estimate of C$0.37 per share, according to data compiled by LSEG.

($1 = 1.3824 Canadian dollars)

(Reporting by Mrinalika Roy and Surbhi Misra in Bengaluru; Editing by Rashmi Aich and Janane Vengatraman)

Teck Resources Ltd

Continued growth in copper production and over $1.3 billion returned to shareholders this year

VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited third quarter results for 2024.

"The third quarter marked a new era for Teck as we successfully transformed into a pure-play energy transition metals company with leading copper growth," said Jonathan Price, President and CEO. "We closed the sale of our remaining interest in the steelmaking coal business and have returned over $1.3 billion to shareholders so far this year, while also reducing debt and ramping-up copper production."

Highlights

Adjusted EBITDA1 of $986 million in Q3 2024 was driven by record copper production as Quebrada Blanca (QB) continues to ramp-up operations, as well as strong base metals pricing and zinc sales volumes from Red Dog. Our loss from continuing operations before taxes was $759 million in Q3 2024, primarily due to an impairment charge at our Trail Operations.
Adjusted profit from continuing operations attributable to shareholders1 was $314 million, or $0.61 per share, in Q3 2024. Our loss from continuing operations attributable to shareholders was $748 million, $1.45 per share, in Q3 2024, primarily due to an impairment charge at our Trail Operations.
We completed the sale of the remaining 77% interest in our steelmaking coal business, Elk Valley Resources (EVR) and received cash proceeds of US$7.3 billion on July 11, 2024. We commenced deployment of these proceeds through shareholder returns and debt reductions in Q3.
We returned a total of $720 million to shareholders in the third quarter through the purchase of $398 million of Class B subordinate voting shares pursuant to our normal course issuer bid, and $322 million in dividends, reflecting our regular base quarterly dividend and a supplemental dividend of $0.50 per share, or $257 million.
From January 1 to October 23, 2024, we have returned over $1.3 billion to shareholders through share buybacks and dividends.
We reduced our debt by US$1.5 billion through a bond tender offer for our public notes in July and the repayment of short-term loans at Carmen de Andacollo.
Our liquidity as at October 23, 2024 is $11.9 billion, including $7.8 billion of cash. We generated cash flows from operations of $134 million in Q3 and had a net cash position of $1.8 billion at September 30, 2024.
We achieved another consecutive record quarter of copper production with 114,500 tonnes in the third quarter, of which 52,500 tonnes were from QB. Production at QB continues to ramp-up and we expect to be operating at full throughput rates by the end of 2024.
Copper prices (LME) remain strong, averaging US$4.18 per pound in the third quarter and closing the quarter at US$4.43 per pound, contributing to $103 million of positive pricing adjustments in the third quarter.
Red Dog's performance was strong in the third quarter with zinc production increasing by 14% to 142,500 tonnes compared to the same period last year. Red Dog's zinc net cash unit costs1 have improved and our 2024 annual unit cost guidance for zinc has been updated accordingly.

Note:

This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Financial Summary Q3 2024

Financial Metrics(CAD$ in millions, except per share data)	Q3 2024		Q3 2023
Revenue	$	2,858	$	1,989
Gross profit	$	478	$	261
Gross profit before depreciation and amortization1	$	962	$	533
Profit (loss) from continuing operations before taxes	$	(759)	$	48
Adjusted EBITDA1	$	986	$	417
Loss from continuing operations attributable to shareholders	$	(748)	$	(48)
Adjusted profit from continuing operations attributable to shareholders1	$	314	$	85
Basic loss per share from continuing operations	$	(1.45)	$	(0.09)
Diluted loss per share from continuing operations	$	(1.45)	$	(0.09)
Adjusted basic earnings per share from continuing operations1	$	0.61	$	0.16
Adjusted diluted earnings per share from continuing operations1	$	0.60	$	0.16

Key Updates

Executing on Our Copper Growth Strategy

QB copper production of 52,500 tonnes in the third quarter increased compared to 51,300 tonnes in the second quarter of 2024, as quarter over quarter production ramp-up continues.
Mill throughput rates increased quarter over quarter confirming plant design is robust. We continue to expect to be at design mill throughput rates by the end of 2024.
The localized geotechnical issue identified and disclosed in Q2 2024 has now stabilized with controls in place and we are advancing the mine plan.
Grades in Q3 were lower, consistent with our previously disclosed guidance, and we continue to expect higher grades in Q4. Normal grade variability is expected within any given period, as considered in our mine plans.
Based on current production levels and expected throughput and recoveries, the upper end of our 2024 annual QB copper production guidance range has been updated and our guidance range is now 200,000 to 210,000 tonnes. In addition, as a result of our lower than expected molybdenum production levels, we have updated our previously disclosed annual QB molybdenum production guidance to 0.8 to 1.2 thousand tonnes.
We continue to expect QB's total and net cash unit costs1 for 2024 to be within our previously disclosed guidance, despite the reduction in annual molybdenum production guidance.
Due to the ongoing work to improve copper recovery and equipment reliability extending into the first half of 2025, we have updated our previously disclosed 2025 QB annual copper production guidance to 240,000 to 280,000 tonnes and molybdenum production to 4.0 to 5.5 thousand tonnes.
Mill optimization work to push performance past nameplate by improving throughput is currently underway with plans for debottlenecking efforts being advanced.
In the third quarter, we continued to make progress in advancing Teck’s copper growth strategy, reinforcing our commitment to long-term value creation through a balanced approach of growth investments and shareholder returns. While maintaining a strong balance sheet, Teck’s prudent investment plans are designed to de-risk the development of our assets, including navigating the permitting process. As previously disclosed, Teck does not anticipate sanctioning any growth projects in 2024. The focus remains on advancing our near-term projects for potential sanctioning in 2025. All growth projects must meet stringent criteria, delivering attractive risk-adjusted returns and competing for capital in alignment with Teck’s capital allocation framework.

Note:

This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

New Business Structure to Support Transition to Pure-Play Energy Transition Metals Company

In August, we announced a new business structure to support our shift to a pure-play energy transition metals company focused on growth. The new business structure organizes Teck around two regional business units for North America and Latin America (LATAM), and a dedicated Projects group to develop and execute brownfield and greenfield projects.
This structure simplifies Teck with a streamlined executive leadership team and regional structure to deliver on our strategy of copper growth balanced with shareholder returns and long-term resiliency. It positions Teck to drive improved operational performance, while efficiently and responsibly capitalizing on profitable growth opportunities to enhance value for all stakeholders.
Our reported segmented financial results and summary information contained in our Management Discussion and Analysis will continue to be disclosed on a commodity basis for our copper and zinc operations in addition to our corporate segment.

Deployment of Transaction Proceeds from Sale of Steelmaking Coal Business

We completed the sale of our remaining 77% interest in our steelmaking coal business, EVR, to Glencore and received transaction proceeds of US$7.3 billion on July 11, 2024.
On closing of the transaction, we announced our intention to allocate the transaction proceeds consistent with Teck's Capital Allocation Framework. This included the repurchase of up to $2.75 billion of Class B subordinate voting shares, a one-time supplemental dividend of $0.50 per share, a debt reduction program of up to $2.75 billion, funding retained for our value-accretive copper growth projects, and approximately $1.0 billion for final taxes and transaction costs.
Combined with the $500 million share buyback announced in February, total cash returns to shareholders of $3.5 billion from the sale of the steelmaking coal business have been authorized.
In Q3, we commenced deployment of the proceeds through shareholder returns and debt reduction. We returned a total of $720 million to shareholders in the third quarter through the purchase of $398 million of Class B subordinate voting shares pursuant to our normal course issuer bid, and $322 million in dividends, reflecting our regular base quarterly dividend and a supplemental dividend of $0.50 per share, or $257 million. We reduced our debt by US$1.5 billion through a bond tender offer for our public notes in July and the repayment of short-term loans at Carmen de Andacollo.
From January 1 to October 23, 2024, we have returned over $1.3 billion to shareholders through share buybacks and dividends.
In our third quarter News Release, Management's Discussion and Analysis, and Condensed Interim Consolidated Financial Statements, EVR's results have been presented as discontinued operations for all periods reported.

Safety and Sustainability Leadership

We were saddened to report a fatality on July 24 at the Antamina Mine, our joint venture with BHP, Glencore and Mitsubishi. Antamina has conducted a full investigation and learnings will be shared across our company and industry.
We continued to focus on driving health and safety at our sites, with our High-Potential Incident (HPI) Frequency rate remaining steady at 0.10 in Q3 2024, a 33% reduction compared to the same period last year.
On October 9, 2024, Teck was named to the Forbes list of the World’s Best Employers 2024, an employee-driven ranking of multinational companies and institutions from over 50 countries around the world.

Guidance

We have updated our previously disclosed 2024 annual guidance for zinc net cash unit costs1, and copper, molybdenum and refined zinc production. The remainder of our previously disclosed guidance for 2024 is unchanged. We have updated our previously disclosed 2025 annual copper and molybdenum production guidance for QB, as outlined above.
Continued strong performance at Red Dog has resulted in an improvement in net cash unit costs1 and accordingly, our 2024 annual zinc net cash unit costs1 are now expected to be US$0.45 to $0.55 per pound, compared to our previously disclosed guidance range of US$0.55 to $0.65 per pound.
Our 2024 annual copper production guidance has been updated to a range of 420,000 to 455,000 tonnes, a reduction from our previously disclosed guidance of 435,000 to 500,000 tonnes. The reduction relates to Highland Valley Copper, as well as a reduction to the upper end of QB's production guidance range. Highland Valley Copper's guidance reduction was a result of a delay in mining in the Lornex pit due to challenges with labour availability and the autonomous systems of our new haul trucks. This has been largely resolved and we expect to process more ore from the Lornex pit in the fourth quarter.
Molybdenum production for 2024 has been reduced by 1.3 to 1.5 thousand tonnes to 3.0 to 4.0 thousand tonnes due to lower production at Highland Valley Copper and QB.
Refined zinc production at Trail for 2024 has been reduced to a range of 240,000 to 250,000 tonnes as a result of a localized fire in the electrolytic zinc plant on September 24, 2024.
Our guidance is outlined in summary below and our usual guidance tables, including three-year production guidance, can be found on pages 26–29 of Teck’s third quarter results for 2024 at the link below.

2024 Guidance – Summary	Current
Production Guidance
Copper (000’s tonnes)	420 – 455
Zinc (000’s tonnes)	565 – 630
Refined zinc (000’s tonnes)	240 – 250
Sales Guidance – Q4 2024
Red Dog zinc in concentrate sales (000’s tonnes)	155 – 185
Unit Cost Guidance
Copper net cash unit costs (US$/lb.)1	1.90 – 2.30
Zinc net cash unit costs (US$/lb.)1	0.45 – 0.55

Note:

This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Click here to view Teck’s full third quarter results for 2024.

WEBCAST

Teck will host an Investor Conference Call to discuss its Q3/2024 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on October 24, 2024. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast will be archived at www.teck.com.

REFERENCE

Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis: 604.699.4621Dale Steeves, Director, Stakeholder Relations: 236.987.7405

USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS

Our annual financial statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB). Our interim financial results are prepared in accordance with IAS 34, Interim Financial Reporting (IAS 34). This document refers to a number of non-GAAP financial measures and non-GAAP ratios, which are not measures recognized under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards or by Generally Accepted Accounting Principles (GAAP) in the United States.

The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under IFRS Accounting Standards, may differ from those used by other issuers, and may not be comparable to similar financial measures and ratios reported by other issuers. These financial measures and ratios have been derived from our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and ratios because we believe they assist readers in understanding the results of our operations and financial position and provide further information about our financial results to investors. These measures should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS Accounting Standards.

Adjusted profit from continuing operations attributable to shareholders – For adjusted profit from continuing operations attributable to shareholders, we adjust profit from continuing operations attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect measurement changes on our balance sheet or are not indicative of our normal operating activities.

EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.

Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted profit from continuing operations attributable to shareholders as described above.

Adjusted profit from continuing operations attributable to shareholders, EBITDA and Adjusted EBITDA highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding the ongoing cash-generating potential of our business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.

Adjusted basic earnings per share from continuing operations – Adjusted basic earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of shares outstanding in the period.

Adjusted diluted earnings per share from continuing operations – Adjusted diluted earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of fully diluted shares in a period.

Gross profit before depreciation and amortization – Gross profit before depreciation and amortization is gross profit with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our reportable segments or overall operations.

Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit basis.

Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.

Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice in the industry to exclude depreciation and amortization, as these costs are non-cash, and discounted cash flow valuation models used in the industry substitute expectations of future capital spending for these amounts.

Profit from Continuing Operations Attributable to Shareholders and Adjusted Profit from Continuing Operations Attributable to Shareholders

	Three months ended September 30,				Nine months ended September 30,
(CAD$ in millions)		2024		2023			2024		2023

Profit (loss) from continuing operations attributable to shareholders	$	(748)	$	(48)		$	(852)	$	49
Add (deduct) on an after-tax basis:
Asset impairment		828		—			828		—
QB variable consideration to IMSA and Codelco		(33)		(45)			9		26
Environmental costs		15		(16)			9		4
Share-based compensation		26		19			67		76
Commodity derivatives		(9)		10			(36)		29
Loss (gain) on disposal or contribution of assets		—		3			(10)		(144)
Tax items		203		69			229		69
Other		32		93			129		157

Adjusted profit from continuing operations attributable to shareholders	$	314	$	85		$	373	$	266

Basic earnings (loss) per share from continuing operations	$	(1.45)	$	(0.09)		$	(1.64)	$	0.09
Diluted earnings (loss) per share from continuing operations	$	(1.45)	$	(0.09)		$	(1.64)	$	0.09
Adjusted basic earnings per share from continuing operations	$	0.61	$	0.16		$	0.72	$	0.51
Adjusted diluted earnings per share from continuing operations	$	0.60	$	0.16		$	0.71	$	0.51

Reconciliation of Basic Earnings per share from Continuing Operations to Adjusted Basic Earnings per share from Continuing Operations

	Three months ended September 30,				Nine months ended September 30,
(Per share amounts)		2024		2023		2024		2023

Basic earnings (loss) per share from continuing operations	$	(1.45)	$	(0.09)	$	(1.64)	$	0.09
Add (deduct):
Asset impairment		1.60		—		1.60		—
QB variable consideration to IMSA and Codelco		(0.06)		(0.09)		0.01		0.05
Environmental costs		0.03		(0.03)		0.02		0.01
Share-based compensation		0.05		0.04		0.13		0.15
Commodity derivatives		(0.02)		0.02		(0.07)		0.06
Loss (gain) on disposal or contribution of assets		—		0.01		(0.02)		(0.28)
Tax items		0.39		0.13		0.44		0.13
Other		0.07		0.17		0.25		0.30

Adjusted basic earnings per share from continuing operations	$	0.61	$	0.16	$	0.72	$	0.51

Reconciliation of Diluted Earnings per share from Continuing Operations to Adjusted Diluted Earnings per share from Continuing Operations

	Three months ended September 30,				Nine months ended September 30,
(Per share amounts)		2024		2023		2024		2023

Diluted earnings (loss) per share from continuing operations	$	(1.45)	$	(0.09)	$	(1.64)	$	0.09
Add (deduct):
Asset impairment		1.59		—		1.58		—
QB variable consideration to IMSA and Codelco		(0.06)		(0.09)		0.02		0.05
Environmental costs		0.03		(0.03)		0.02		0.01
Share-based compensation		0.05		0.04		0.13		0.14
Commodity derivatives		(0.02)		0.02		(0.07)		0.06
Loss (gain) on disposal or contribution of assets		—		0.01		(0.02)		(0.27)
Tax items		0.39		0.13		0.44		0.13
Other		0.07		0.17		0.25		0.30

Adjusted diluted earnings per share from continuing operations	$	0.60	$	0.16	$	0.71	$	0.51

Reconciliation of EBITDA and Adjusted EBITDA

	Three months ended September 30,				Nine months ended September 30,
(CAD$ in millions)		2024		2023		2024		2023

Profit (loss) from continuing operations before taxes	$	(759)	$	48	$	(974)	$	249
Finance expense net of finance income		153		10		578		25
Depreciation and amortization		498		290		1,203		633

EBITDA		(108)		348		807		907

Add (deduct):
Asset impairment		1,053		—		1,053		—
QB variable consideration to IMSA and Codelco		(55)		(75)		14		41
Environmental costs		20		(22)		8		4
Share-based compensation		34		24		86		96
Commodity derivatives		(13)		15		(50)		39
Loss (gain) on disposal or contribution of assets		—		4		(14)		(194)
Other		55		123		194		222

Adjusted EBITDA	$	986	$	417	$	2,098	$	1,115

Reconciliation of Gross Profit Before Depreciation and Amortization

	Three months ended September 30,				Nine months ended September 30,
(CAD$ in millions)		2024		2023		2024		2023

Gross profit	$	478	$	261	$	1,065	$	960
Depreciation and amortization		484		272		1,155		581

Gross profit before depreciation and amortization	$	962	$	533	$	2,220	$	1,541

Reported as:
Copper
Quebrada Blanca	$	178	$	19	$	462	$	18
Highland Valley Copper		89		57		371		290
Antamina		287		215		763		671
Carmen de Andacollo		48		1		69		10
Other		2		1		4		(5)

		604		293		1,669		984

Zinc
Trail Operations		26		22		(3)		91
Red Dog		333		220		548		470
Other		(1)		(2)		6		(4)

		358		240		551		557

Gross profit before depreciation and amortization	$	962	$	533	$	2,220	$	1,541

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.

These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy, including being a pure-play energy transition metals company; anticipated global and regional supply, demand and market outlook for our commodities; our business, assets, and strategy going forward, including with respect to future and ongoing project development; the potential benefits of our new business structure; the expected use of proceeds from the sale of our steelmaking coal business, including the timing and format of any cash returns to shareholders; the anticipated benefits of the sale of our steelmaking coal business, including deployment of proceeds; our expectations regarding the continuing ramp-up of QB2, including the expectation that QB will be operating at design mill throughput rates by year end and our ability to improve mine equipment reliability, molybdenum plant stability, and copper recovery; expectations regarding haul truck and labour availability at Highland Valley Copper and the ability to process more ore from the Lornex pit in the fourth quarter; expectations regarding inflationary pressures and our ability to manage controllable operating expenditures; expectations with respect to execution of our copper growth strategy, including the timing and occurrence of any sanction decisions and prioritization of growth capital; expectations regarding advancement and potential sanction decisions related to our copper growth portfolio, including advancement of study, permitting, execution planning, and engineering work, community and Indigenous engagement, completion of updated cost estimates, and timing for receipt of permits related to QB debottlenecking, the HVC Mine Life Extension, San Nicolás, and Zafranal projects, as applicable; expectation regarding potential pricing adjustments related to our sustainability performance in the context of our revolving credit facility; expectations regarding timing and amount of income tax payments and our effective tax rate; liquidity and availability of borrowings under our credit facilities; requirements to post and our ability to obtain additional credit for posting security for reclamation at our sites; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost, capital expenditure, capitalized stripping, and other guidance under the headings “Guidance” and "Outlook" and as discussed elsewhere in the various reportable segment sections; our expectations regarding inflationary pressures and increased key input costs; and expectations regarding the adoption of new accounting standards and the impact of new accounting developments.

These statements are based on a number of assumptions, including, but not limited to, assumptions disclosed elsewhere in this document and assumptions regarding general business and economic conditions, interest rates, commodity and power prices; acts of foreign or domestic governments and the outcome of legal proceedings; the continued ramp-up of QB2 in accordance with our expectations; our ability to improve haul truck availability at Highland Valley Copper; the possibility that the anticipated benefits from the sale of our steelmaking coal business are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions, including credit, market, currency, operational, commodity, liquidity and funding risks generally and relating specifically to the transaction; the possibility that our business may not perform as expected or in a manner consistent with historical performance; the supply and demand for, deliveries of, and the level and volatility of prices of copper and zinc and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in credit market conditions and conditions in financial markets generally; the availability of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; availability of letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar, Canadian dollar-Chilean Peso and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our development and expansion projects; our ability to develop technology and obtain the benefits of technology for our operations and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and statutory and effective tax rates; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits, licenses and leases in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners.

Statements regarding the availability of our credit facilities are based on assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities are not otherwise terminated or accelerated due to an event of default. Assumptions regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations. Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other forward-looking statements accompany those statements within the document. Statements concerning future production costs or volumes are based on numerous assumptions regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices; changes in market demand for our products; changes in interest and currency exchange rates; acts of governments and the outcome of legal proceedings; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment); government action or delays in the receipt of government approvals; changes in royalty or tax rates; industrial disturbances or other job action; adverse weather conditions; unanticipated events related to health, safety and environmental matters; union labour disputes; any resurgence of COVID-19 and related mitigation protocols; political risk; social unrest; failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations; changes in our credit ratings; unanticipated increases in costs to construct our development projects; difficulty in obtaining permits; inability to address concerns regarding permits or environmental impact assessments; and changes or further deterioration in general economic conditions. The amount and timing of capital expenditures is depending upon, among other matters, being able to secure permits, equipment, supplies, materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Certain of our other operations and projects are operated through joint arrangements where we may not have control over all decisions, which may cause outcomes to differ from current expectations. Ongoing monitoring may reveal unexpected environmental conditions at our operations and projects that could require additional remedial measures. QB2 costs and ramp-up are dependent on, among other matters, our continued ability to advance ramp-up as currently anticipated. Production at our Red Dog Operations may also be impacted by water levels at site. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and policies, and normal production and operating risks. We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2023 filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.

Scientific and technical information in this quarterly report regarding our material properties was reviewed, approved and verified by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person as defined under National Instrument 43-101.

Southern Copper (NYSE:SCCO) Third Quarter 2024 ResultsKey Financial Results

Revenue: US$2.93b (up 17% from 3Q 2023).
Net income: US$896.7m (up 45% from 3Q 2023).
Profit margin: 31% (up from 25% in 3Q 2023). The increase in margin was driven by higher revenue.
EPS: US$1.15 (up from US$0.79 in 3Q 2023).

earnings-and-revenue-growth

All figures shown in the chart above are for the trailing 12 month (TTM) period

Southern Copper EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%.

Looking ahead, revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Metals and Mining industry in the US.

Performance of the American Metals and Mining industry.

The company's shares are up 2.7% from a week ago.

Valuation

Southern Copper's financial results now indicate the company's shares could be facing some headwinds based on 6 important indicators. You can access our in-depth analysis and discover what the outlook is like for the stock by clicking here.

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.

By Sam Tobin

LONDON (Reuters) – BHP said on Wednesday that allegations a pursuit of profit over safety contributed to Brazil's worst environmental disaster were "far-fetched and unjustified", as the miner opened its defence to a mammoth lawsuit at London's High Court.

More than 600,000 Brazilians, 46 local governments and around 2,000 businesses are suing BHP over the 2015 collapse of the Mariana dam in southeastern Brazil, which was owned and operated by BHP and Vale's Samarco joint venture.

The dam's collapse unleashed a wave of toxic sludge that killed 19 people, left thousands homeless, flooded forests and polluted the length of the Doce River.

The claimants' lawyers accused BHP of "cynically and doggedly" trying to avoid responsibility as the trial of a lawsuit worth up to 36 billion pounds ($47 billion), one of the largest in English legal history, began on Monday.

They also allege BHP contributed to the collapse of the dam by allowing it to be raised as part of an expansion project, despite an increasing risk of failure.

BHP, the world's biggest miner by market value, is contesting liability and says the London lawsuit duplicates legal proceedings and reparation and repair programmes in Brazil and should be thrown out.

The miner argues it did not own or operate the dam, which held mining waste known as tailings, and that Samarco operated independently. It also says it had no knowledge the dam's stability was compromised before it collapsed.

BHP's lawyer Shaheed Fatima told the court on Wednesday that the case against it was fundamentally flawed.

"The claimants appear to say that BHP was so motivated to make profits from their investment in Samarco that they got behind the wheel, they operated the business, they put profits before safety," she said. "This is unrealistic and illogical."

Fatima added: "The profits before safety allegation, that is particularly far-fetched and unjustified."

She said that BHP's former finance chief Peter Beaven, who is due to give evidence next month, said in a witness statement: "BHP had a culture which was embedded throughout the organisation from top to bottom of safety before anything else."

The ongoing 12-week trial to determine whether BHP is liable to the claimants comes as the Brazilian authorities' negotiations with BHP, Vale and Samarco over a nearly $30 billion compensation deal continue.

Sources close to the negotiations told Reuters a final agreement could have an impact on the London lawsuit, a suggestion the claimants' law firm Pogust Goodhead rejected.

(This story has been corrected to read 'profit over safety,' not 'safety over profit,' in the headline)

(Reporting by Sam Tobin; Editing by Mark Potter)

A Relative Strength Rating upgrade for Teck Resources Cl B shows improving technical performance. Will it continue?

Southern Copper (SCCO) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.68%. A quarter ago, it was expected that this miner would post earnings of $1.13 per share when it actually produced earnings of $1.22, delivering a surprise of 7.96%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Southern Copper , which belongs to the Zacks Mining – Non Ferrous industry, posted revenues of $2.93 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $2.51 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Southern Copper shares have added about 31.9% since the beginning of the year versus the S&P 500's gain of 22.7%.

What's Next for Southern Copper?

While Southern Copper has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Southern Copper: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $3 billion in revenues for the coming quarter and $4.54 on $11.82 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Non Ferrous is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Amerigo Resources (ARREF), another stock in the same industry, has yet to report results for the quarter ended September 2024.

This copper and molybdenum mining company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +175%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Amerigo Resources' revenues are expected to be $46.13 million, up 52.1% from the year-ago quarter.

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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Zacks Investment Research

PHOENIX (AP) — PHOENIX (AP) — Southern Copper Corp. (SCCO) on Tuesday reported net income of $896.7 million in its third quarter.

The Phoenix-based company said it had profit of $1.15 per share.

The miner posted revenue of $2.93 billion in the period.

_____

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SCCO at https://www.zacks.com/ap/SCCO

BHP (NYSE:BHP) is up against a $47 billion lawsuit in the UK over the 2015 Mariana Dam disaster in Brazil. The case involves more than 600,000 claimants, including 46 local businesses and 2,000 governments, with the trial set to begin Monday in London's High Court. Additionally, up to 12 weeks are expected of hearing.

Arguing that it duplicates continuous legal procedures and compensation efforts in Brazil, BHP has challenged the lawsuit. The corporation believes that together with further settlement talks with the Brazilian government, around $8 billion in reparations paid through the Renova Foundation should be enough for the settlement. According to a Financial Times analysis, BHP and Brazilian mining company Vale (NYSE:VALE), its project partner, have jointly proposed a $23.8 billion settlement in Brazil. Operating under BHP and Samarco, a joint venture between Vale and BHP, the Mariana Dam collapsed in 2015 causing 19 deaths, thousands of displacements, and major pollution of the Doce River.

Warning! GuruFocus has detected 2 Warning Sign with VALE.

According to BHP, its goal is to complete a fair and thorough pay system that would retain money within Brazil in assisting in the restoration of projects in impacted areas.

This article first appeared on GuruFocus.

White Rock, British Columbia–(Newsfile Corp. – October 21, 2024) – Honey Badger Silver Inc. (TSXV: TUF) (OTCQB: HBEIF) ("Honey Badger" or the "Company") is pleased to announce that it has added strategic claims through staking at its 100%-owned Nanisivik project, located on Baffin Island, Nunavut. These claims are deemed to have high geologic growth and discovery potential.

Honey Badger's CEO, Dorian L. (Dusty) Nicol, commented, "Our recent historic drill and geophysical data analysis (news release dated September 16, 2024), revealed several high-priority targets that may be silver-rich massive sulphide bodies. To capture the full benefit of these and additional potential silver-rich targets for our shareholders we staked new claims at very low cost. We are extremely excited by our new land position because of how it expands, at extremely low cost, the number of potential silver-rich targets. Our next steps will be to continue compiling and interpreting available data on these new claims, with a view to performing an initial field reconnaissance."

New Claims

The Company has recently increased the size of its mineral tenure around the past producing Nanisivik Mine on Baffin Island, Nunavut, which now comprises a total of 14 mineral claims covering some 13,373.2 hectares (ha). The Company's original Nanisivik Property comprised 4 claims totaling 5,722.8 ha that cover the former mine site. The company has staked an additional 10 claims totaling 7650.4 ha at and around the Nanisivik area. These claims cover geophysical anomalies identified during the Company's review of the historic data base (see news release dated September 16, 2024). The new claims comprise a further 3 claims that have added 1174.2 ha to the original Nanisivik claim block, 2 claims (1710.4 ha) covering the Chris Creek target located approximately 19 km southeast of Nanisivik, and further 5 claims (4765.8 ha) covering historical geophysical anomalies (conductors) in and around the Adams Sound and Adams River target areas approximately 40 km and 55 km, respectively, southeast of Nanisivik. The map below illustrates the locations of the new claims with respect to the geophysical anomalies.

To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/3204/227244_5db1c8ac14c1d999_001full.jpg

About Nanisivik

The Nanisivik Mine (near Arctic Bay, Nunavut) produced over 20 million ounces of silver between 1976 and 2002, from 17.9 million tons of ore, grading 9% zinc, 0.72% lead, and 35 grams per tonne silver (1). In addition to the polymetallic orebody, previous exploration identified massive sulphide bodies (principally pyrite) still in place, totaling about 100 million tonnes (1,2), containing locally anomalous base metal and silver values.

(1) Reference: Geological Survey of Canada, 2002-C22, "Structural and Stratigraphic Controls on Zn-Pb-Ag Mineralization at the Nanisivik Mississippi Valley-type Deposit, Northern Baffin Island, Nunavut; by Patterson and Powis.(2) A qualified person has not done sufficient work to classify this historic tonnage estimate as a current mineral resource and the Company is not treating the estimate as a current mineral resource. The historic tonnage estimate cannot be relied upon. Additional work, including verification drilling / sampling, will be required to verify the estimate as a current mineral resource.

(3) University College London study, 1922, published by Royal Geographic Society.

Qualified Person

Technical information in this news release has been approved by Dorian L. (Dusty) Nicol, the Company's CEO (PG, FAusIMM), who is a Qualified Person (QP) for the purpose of National Instrument 43-101.

Yava Acquisition

The Company announced on October 2, 2024, that it has agreed to purchase the Yava property for 4,250,000 shares from Blue Moon Metals Inc. The property is subject to a 10% NPI royalty, which the Company can repurchase for $1.5 million. Please see the previous news release for more information about the Yava acquisition.

About Honey Badger Silver Inc.

Honey Badger Silver is a silver company. The company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. Our projects are located in areas with a long history of mining, including the Sunrise Lake project with a historic resource of 12.8 Moz of silver (and 201.3 million pounds of zinc) Indicated and 13.9 Moz of silver (and 247.8 million pounds of zinc) Inferred (1)(3) located in the Northwest Territories and the Plata high grade silver project located 165 km east of Yukon's prolific Keno Hill and adjacent to Snowline Gold's Rogue discovery. The Company's Clear Lake Project in the Yukon Territory has a historic resource of 5.5 Moz of silver and 1.3 billion pounds of zinc (2)(3). The Company also has a significant land holding at the Nanisivik Mine Area located in Nunavut, Canada that produced over 20 Moz of silver between 1976 and 2002 (2,3). A qualified person has not done sufficient work to classify the foregoing historical resources as current mineral resources and the Company is not treating the estimates as current mineral resources. The historical resource estimates are provided solely for the purpose as an indication of the volume of mineralization that could be present. Additional work, including verification drilling / sampling, will be required to verify any of the historical estimates as a current mineral resources.

(1) Sunrise Lake 2003 RPA historic resource: Indicated 1.522 million tonnes grading 262 grams/tonne silver, 6.0% zinc, 2.4% lead, 0.08% copper, and 0.67 grams/tonne gold and Inferred 2.555 million tonnes grading 169 grams/tonne silver, 4.4% zinc, 1.9% lead, 0.07% copper, and 0.51 grams/tonne gold.

(2) Clear Lake 2010 SRK historic Resource: Inferred 7.76 million tonnes grading 22 grams/tonne silver, 7.6% zinc, and 1.08% lead.

(3) Geological Survey of Canada, 2002-C22, "Structural and Stratigraphic Controls on Zn-Pb-Ag Mineralization at the Nanisivik Mississippi Valley type Deposit, Northern Baffin Island, Nunavut; by Patterson and Powis."

ON BEHALF OF THE BOARD

Dorian L. (Dusty) Nicol, CEO

For more information, please visit our website www.honeybadgersilver.com or contact Sonya Pekar for Investor Relations | spekar@honeybadgersilver.com |+1 (647) 498 – 8244

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. 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.sedarplus.ca) 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227244

Over the last 7 days, the Australian market has remained flat, but it is up 20% over the past year with earnings expected to grow by 12% per annum in the coming years. While ‘penny stocks’ might seem like a term from a bygone era, they continue to offer intriguing opportunities for investors seeking affordability and growth potential. By focusing on companies with strong financials and clear growth trajectories, investors can find promising options among these smaller or newer firms.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
LaserBond (ASX:LBL)	A$0.555	A$63.88M	★★★★★★
Embark Early Education (ASX:EVO)	A$0.805	A$127.64M	★★★★☆☆
MaxiPARTS (ASX:MXI)	A$1.895	A$104.82M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.50	A$303.87M	★★★★★☆
Helloworld Travel (ASX:HLO)	A$1.865	A$298M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.72	A$838.04M	★★★★★☆
West African Resources (ASX:WAF)	A$1.71	A$1.82B	★★★★★★
Atlas Pearls (ASX:ATP)	A$0.13	A$56.64M	★★★★★★
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Below we spotlight a couple of our favorites from our exclusive screener.

Alkane Resources

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Alkane Resources Ltd is an Australian company focused on gold exploration and production, with a market cap of A$329.50 million.

Operations: The company generates revenue primarily from its Gold Operations segment, which contributed A$173.58 million.

Market Cap: A$329.5M

Alkane Resources Ltd, with a market cap of A$329.50 million, primarily generates revenue from its gold operations, reporting A$172.99 million in sales for the year ending June 30, 2024. Despite a decrease in net income to A$17.68 million from the previous year’s A$42.45 million and declining profit margins (10.2% compared to 22.3%), Alkane remains debt-free and has stable weekly volatility at 7%. The seasoned management team and board bring valuable experience to navigate challenges such as covering long-term liabilities exceeding short-term assets by A$31M while aiming for future earnings growth forecasted at over 36% annually.

ASX:ALK Financial Position Analysis as at Oct 2024Aurelia Metals

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Aurelia Metals Limited is an Australian company involved in the exploration and production of mineral properties, with a market capitalization of A$346.77 million.

Operations: The company’s revenue is derived from its operations at the Peak Mine (A$207.34 million), Dargues Mine (A$102.36 million), and Hera Mine (A$0.20 million).

Market Cap: A$346.77M

Aurelia Metals, with a market cap of A$346.77 million, reported A$309.89 million in sales for the year ending June 30, 2024, but remains unprofitable with a net loss of A$5.73 million. The company benefits from stable weekly volatility (10%) and has more cash than total debt, providing a solid financial footing despite increasing losses over five years at 49.1% annually. Short-term assets exceed both short-term and long-term liabilities, ensuring liquidity stability. While the management team is relatively new and inexperienced, production guidance for fiscal year 2025 indicates potential growth in gold and base metal outputs.

ASX:AMI Financial Position Analysis as at Oct 2024Wagners Holding

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Wagners Holding Company Limited is involved in the production and sale of construction materials across Australia, the United States, New Zealand, the United Kingdom, PNG, and Malaysia with a market cap of A$227.02 million.

Operations: Wagners Holding generates revenue through its Construction Materials segment with A$224.39 million, Project Services at A$206.20 million, Earth Friendly Concrete contributing A$0.27 million, and Composite Fibre Technology adding A$59.38 million.

Market Cap: A$227.02M

Wagners Holding, with a market cap of A$227.02 million, has shown significant earnings growth of 229.2% over the past year, surpassing its five-year average of 1.7%. Despite large one-off losses impacting recent financial results and a low return on equity at 7.6%, the company maintains satisfactory debt levels with net debt to equity at 25.1% and coverage by operating cash flow at 138.3%. Wagners resumed dividend payments in October 2024 after six years, reflecting improved financial health as net income rose to A$10.28 million for the year ending June 30, 2024, compared to A$3.12 million previously.

ASX:WGN Debt to Equity History and Analysis as at Oct 2024Key Takeaways

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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.

Companies discussed in this article include ASX:ALK ASX:AMI and ASX:WGN.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

By Sam Tobin

LONDON (Reuters) -BHP is cynically trying to avoid its responsibility for Brazil's worst environmental disaster, lawyers representing thousands of victims told London's High Court on Monday, as a lawsuit worth up to 36 billion pounds ($47 billion) began.

The dam's collapse unleashed a wave of toxic sludge that killed 19 people, left thousands homeless, flooded forests and polluted the length of the Doce River.

It also says nearly $8 billion has already been paid to those affected through the Renova Foundation, with around $1.7 billion going to claimants involved in the English case.

The lawsuit, one of the largest in English legal history, entered a decisive stage on Monday with the beginning of a 12-week trial to determine whether BHP is liable.

The claimants' lawyer Alain Choo Choy said in court filings made public on Monday that "there is a chasm between what BHP regards as 'acceptable' and the compensation to which the claimants consider themselves legally and morally entitled".

He argued that BHP's actions in fighting the case and funding separate litigation in Brazil showed the miner was "cynically and doggedly trying to avoid" responsibility.

"Although that is BHP's choice, it cannot properly now claim to be a company 'doing the right thing' by the victims of the disaster," Choo Choy added.

'EXAGGERATED'

BHP argues it did not own or operate the dam, which held minings waste known as tailings. It said a Brazilian subsidiary of its Australian holding company was a 50% shareholder in Samarco, which operated independently.

The miner also said it had no knowledge the dam's stability was compromised before it collapsed.

Lawyers representing the miner said in court filings: "There is no law or contract which imposed any duty of safety on the ultimate parent company of a non-controlling shareholder and the other parent company in the same corporate group.

"Nor was there any breach of such duty of safety. And nor did BHP's acts or omissions cause the collapse."

BHP also said that parts of the lawsuit were "implausible or exaggerated".

Monday's hearing follows developments in BHP's negotiations with the Brazilian authorities over the disaster. The Brazilian government is discussing a nearly $30 billion compensation deal with BHP, Vale and Samarco, they said on Friday.

Tom Goodhead, CEO of Pogust Goodhead, the law firm representing the claimants, told reporters that the victims of the disaster were not involved in the planned deal.

"People just feel it's too little, too late," he said outside the High Court. "They want to go ahead with the trial, hold them accountable."

BHP said in a statement that it is trying to "finalise a fair and comprehensive compensation and rehabilitation process".

The 12-week hearing will also consider whether the Brazilian municipalities are permitted to bring legal action, the impact of any agreements reached with BHP by claimants involved in the English lawsuit and whether the claims were brought too late.

(Reporting by Sam TobinEditing by Mark Potter and Barbara Lewis)

BHP Group BHP announced that its iron ore production rose 2% year over year to 64.6 Mt in the first quarter of fiscal 2025 (ended Sept. 30, 2024). This was attributed to an increase in production at Western Australia Iron Ore (WAIO) following the commissioning of the Port Debottlenecking Project and completion of the South Flank ramp-up.

Iron ore production at Samarco increased 4% in the quarter due to the early resumption of Pelletizing Plant No. 4. BHP’s iron ore production guidance for fiscal 2025 remains unchanged at 255-265.5 Mt. WAIO's production is expected to be between 250 Mt and 260 Mt (282 Mt and 294 Mt on a 100% basis).

BHP Reports a 4% Rise in Copper Production

BHP’s copper output improved 4% year over year to 476 kt in the first quarter of fiscal 2025.

Copper production at Escondida increased 11% year over year as mining progressed into areas of higher-grade ore as well as increased concentrator feed grade. This was partially offset by planned lower cathode production.

Copper output at Pampa Norte slumped 23%. Production at Spence was down 13% due to lower cathode production as a result of planned quarterly maintenance at the concentrator and a decline in stacked feed grade.

Production was down on a year-over-year basis reflecting the impact of Cerro Colorado entering temporary care and maintenance in December 2023. It had contributed 9.5 kt of copper output in the first quarter of fiscal 2024.

Production from Copper South Australia was reported at 73 kt, 2% higher than the prior fiscal quarter aided by upbeat underlying operational performance. Production was lower at Prominent Hill due to minor pit geotechnical instability and ventilation constraints, which impacted trucking capacity and production. BHP assured that these issues have been rectified.

Antamina’s copper production rose 12% to 36 kt on higher ore grade and recoveries, partially offset by planned lower concentrator throughput.

The company expects copper production within the range of 1,845-2,045 kt in fiscal 2024.

BHP Temporarily Suspends Nickel West Operations

Nickel production was down 3% year over year to 19.6 kt in the fiscal first quarter. This reflected BHP’s decision to temporarily suspend the Nickel West operation starting in October 2024, citing lower nickel prices.

Starting January 2025, BHP plans to invest around $300 million annually to keep the operation in readiness for a potential restart in case the market rebounds.

BHP’s Energy & Steelmaking Coal Output Up Y/Y

Energy coal production rose 2% year over year to 3.7 Mt in the quarter. Steelmaking coal production was 4.5 Mt, which declined 19% from the year-ago quarter. Production in the first quarter of fiscal 2024 included 1.8 Mt (3.7 Mt on a 100% basis) from the Blackwater and Daunia mines that were divested on April 2, 2024. Excluding these volumes, production of steelmaking coal was up 20% year over year.

Production guidance for steelmaking coal is in the band of 16.5-19 Mt while energy coal guidance in the range of 13 Mt to 15 Mt in fiscal 2025.

BHP Sees Lower Average Iron Ore Prices, Rising Copper Prices

In the fiscal first quarter, average realized prices for iron ore were down 18% year over year to $80.10 per ton. Copper prices were up 17% to $4.24 per pound. Average nickel prices were $16,359 per ton, down 20% from the year-ago quarter. Prices for thermal coal dipped 1% year over year to $124.32 per ton and steelmaking coal prices were down 9% to $214.86 per ton.

BHP’s Other Updates on Projects & Acquisitions

In July 2024, BHP and Lundin Mining Corporation LUNMF agreed to jointly acquire Filo Corp, which owns 100% of the Filo del Sol (FDS) copper project. BHP and Lundin Mining have also agreed to form a 50/50 joint venture to advance the FDS and Josemaria projects.

BHP commenced construction of Jansen Stage 2 for potash in fiscal 2024. It had been 4% completed in the fiscal first quarter. Meanwhile, the Jansen Stage 1 has been 58% completed. The operating expenditure related to potash is expected to be around $300 million in the current fiscal 2025.

BHP’s Peer Performances

Vale S.A. VALE reported iron ore production of around 91 Mt for the third quarter of 2024, reflecting a 5.5% increase from the year-ago quarter. This marks VALE’s highest output since the fourth quarter of 2018, driven by improved operating performances at Itabira and Brucutu. The company’s iron ore production guidance for 2024 is in the range of 323-330 Mt.

Vale produced 85.9 kt of copper, which was 5.3% higher than the year-ago quarter. The company expects to produce copper in the range of 320 – 355 kt.

Rio Tinto RIO reported a 1% year-over-year improvement in its third-quarter (ended Sept. 30, 2024) iron ore production to 84.1 Mt (on a 100% basis) as productivity gains offset ore depletion. This brings RIO’s total iron ore output for the nine-month period to 242.9 Mt, a decline of 1% year over year.

Iron-ore shipments for the quarter (on a 100% basis) were reported at 84.5 Mt, up 1% year over year. Rio Tinto expects Pilbara iron ore shipments (100% basis) to be between 323 Mt and 338 Mt in 2024. The midpoint of the guidance indicates a year-over-year dip of 0.4%.

Copper production was 168 thousand tons in the third quarter, 1% lower than the year-ago quarter. RIO expects copper production to be between 660 thousand tons and 720 thousand tons in 2024, indicating 11.3% growth at the midpoint.

BHP’s Price Performance & Zacks Rank

BHP’s shares have dipped 0.7% in a year compared with the industry’s 3% growth.

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BHP currently carries a Zacks Rank #5 (Strong Sell).

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Centrus Energy Corp. (LEU) shares rallied 26.3% in the last trading session to close at $77.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 53.8% gain over the past four weeks.

Centrus Energy’s shares surged on the news that Amazon Web Services, the cloud computing arm of Amazon (AMZN) has signed three new agreements to support the development of nuclear energy projects—including enabling the construction of several new Small Modular Reactors (SMRs).

Recently, Centrus Energy’s subsidiary, American Centrifuge Operating, LLC won an award from the U.S. Department of Energy to support the deployment of technology and equipment to deconvert High-Assay, Low-Enriched Uranium (HALEU) from uranium hexafluoride (UF6) to uranium oxide and/or uranium metal forms, a key step in the nuclear fuel production process. This award is an important step toward expanding and diversifying the capabilities of the company’s Ohio facility.

This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -65.4%. Revenues are expected to be $56.5 million, up 10.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Centrus Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LEU going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Centrus Energy is part of the Zacks Mining – Non Ferrous industry. Lundin Mining (LUNMF), another stock in the same industry, closed the last trading session 3.3% higher at $10.49. LUNMF has returned 10.7% in the past month.

For Lundin , the consensus EPS estimate for the upcoming report has changed -11.8% over the past month to $0.19. This represents a change of +72.7% from what the company reported a year ago. Lundin currently has a Zacks Rank of #3 (Hold).

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The market expects Teck Resources Ltd (TECK) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 24, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -33.3%.

Revenues are expected to be $2.23 billion, down 17% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 1.11% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Teck Resources?

For Teck Resources, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -17.79%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Teck Resources will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Teck Resources would post earnings of $0.47 per share when it actually produced earnings of $0.58, delivering a surprise of +23.40%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Teck Resources doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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(Bloomberg) — BHP Group Ltd. said iron ore output in its first quarter rose 2% from the year-before, as moves by major miners to ramp up production raise the specter of over-supply.

Most Read from Bloomberg Businessweek

By Rishav Chatterjee

(Reuters) -Global miner BHP beat first-quarter iron ore output estimates on Thursday, spurred by easing of bottlenecks at its Western Australia operations amid efforts by China to revive its grappling property market and faltering economic growth.

The world's largest listed miner over the last year has ramped up the South Flank mine to full production capacity and streamlined its port operations for its Western Australian iron ore business.

The ramp-up comes at a time when mining rivals including Vale and Rio Tinto are moving to expand their supplies. Vale plans to further lift its production, while Rio's Simandou mine will begin production next year.

BHP, which is diversifying into potash, said the $10.5 billion Jansen Stage 1 project was 58% complete.

The miner's upbeat iron ore production update comes as China, the commodity's largest purchaser, has been announcing a slew of stimulus measures to support its downbeat economic recovery.

BHP said iron ore output from Western Australia on a 100% basis was 71.6 million metric tons in the three months to Sept. 30, beating a Visible Alpha consensus estimate of 70.7 Mt, according to a Macquarie note.

"Upcoming stimulus (from China) is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence," said CEO Mike Henry.

BHP, which has been aiming to expand its copper operations, recorded a 4% rise in the metal's output for the quarter, reflecting improved performance at its Escondida mine in Chile.

Analysts at Citi said Escondida output rose on higher grades and throughput at the Chilean mine.

Earlier this year, BHP made a $49 billion bid for British copper major Anglo American, which did not materialise. But BHP joined hands with Lundin Mining to take over Filo Corp, gaining access to more copper assets.

Copper, used widely across the globe, is an ideal conductor of electricity and easily malleable, qualities that have made it widely popular for use in wiring, engines, construction equipment, electronics and other devices.

BHP's shares were up 0.3% at A$43.67 in early trade.

(Reporting by Rishav Chatterjee and Echha Jain in Bengaluru; Editing by Sriraj Kalluvila and Rashmi Aich)

Southern Copper (SCCO) closed at $113.14 in the latest trading session, marking a +1.46% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.

Shares of the miner witnessed a gain of 12.43% over the previous month, beating the performance of the Basic Materials sector with its gain of 6.97% and the S&P 500's gain of 3.48%.

The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company's upcoming EPS is projected at $1.12, signifying a 41.77% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.91 billion, up 16.31% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.45 per share and a revenue of $11.65 billion, signifying shifts of +43.09% and +17.68%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 5.14% rise in the Zacks Consensus EPS estimate. At present, Southern Copper boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 25.07 right now. This expresses a premium compared to the average Forward P/E of 20.03 of its industry.

Meanwhile, SCCO's PEG ratio is currently 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining – Non Ferrous industry held an average PEG ratio of 0.83.

The Mining – Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The market expects Southern Copper (SCCO) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This miner is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of +41.8%.

Revenues are expected to be $2.91 billion, up 16.3% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 0.84% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core.

How Have the Numbers Shaped Up for Southern Copper?

For Southern Copper, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.62%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Southern Copper will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Southern Copper would post earnings of $1.13 per share when it actually produced earnings of $1.22, delivering a surprise of +7.96%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom Line

Southern Copper appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected Results

Another stock from the Zacks Mining – Non Ferrous industry, First Quantum Minerals (FQVLF), is soon expected to post earnings of $0.03 per share for the quarter ended September 2024. This estimate indicates a year-over-year change of -94.2%. Revenues for the quarter are expected to be $1.09 billion, down 46.1% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for First Quantum Minerals has been revised 700% down to the current level. Nevertheless, the company now has an Earnings ESP of -109.72%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that First Quantum Minerals will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

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VANCOUVER, BC, Oct. 16, 2024 /CNW/ – (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") is pre-announcing certain items impacting the Company's quarterly earnings, adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA")1, adjusted earnings1 and adjusted earnings per share1. View PDF

Foreign Exchange and Derivatives

Items of significant impact in the third quarter 2024 are expected to include unaudited foreign exchange and trading gains on debt and equity investments supporting the capital funding for the Josemaria Project of approximately $7 million. Unaudited realized losses on foreign exchange and unaudited realized gains on foreign exchange and commodity derivative contracts were not significant in the quarter.

In the third quarter 2024 the Company is also expected to recognize certain non-cash items that will impact the Company's earnings but not adjusted EBITDA, adjusted earnings or adjusted earnings per share. These include an unaudited non-cash unrealized loss on foreign exchange of approximately $13 million on a pre-tax basis, and an unaudited non-cash unrealized gain of approximately $31 million on a pre-tax basis related to the mark-to-market valuation of the Company's unexpired foreign exchange and commodity derivative contracts.

Provisional Pricing Adjustments

Revenue during the third quarter 2024 is expected to be negatively impacted by unaudited provisional pricing adjustments on prior period concentrate sales of approximately $5 million on a pre-tax basis. These adjustments primarily include downward adjustments in relation to prior period copper and molybdenum sales, partially offset by upward adjustments in relation to prior period gold sales.

Eagle East Rehabilitation

During the third quarter ramp rehabilitation at Eagle East continued to progress. An unaudited amount of approximately $15 million, related to overhead costs from the partial suspension of underground operations, is expected to impact the Company's earnings for the quarter. This amount will be excluded from adjusted EBITDA, adjusted earnings, and adjusted earnings per share. Mining rates are anticipated to increase during the fourth quarter of 2024.

Third Quarter 2024 Results Conference Call and Webcast Details

The Company will release its third quarter 2024 operations and financial results after market close on Wednesday, November 6, 2024, and will hold a webcast and conference call on Thursday, November 7, 2024 to present the results. Webcast and conference call details are provided below.

Webcast / Conference Call Details:

Date: Thursday, November 7, 2024

Time: 7:00 AM PT | 10:00 AM ET

Listen Only Webcast: WEBCAST LINK

Dial In for Investor & Analyst Q&A: DIAL IN LINK

To participate in the call click on the dial in LINK above and complete the online registration form. Once registered you will receive the dial-in information and a unique PIN to join the call and ask questions.

A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on the Company's website for a limited period of time.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

The information was submitted for publication, through the agency of the contact persons set out below on October 16, 2024 at 14:30 Pacific Time.

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein are "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; expected items of significant impact in the third quarter 2024, and the anticipated impact on the Company's earnings, revenue, adjusted EBITDA, adjusted earnings or adjusted earnings per share; the completion of the acquisition of Filo and the timing thereof; the establishment and operation of a new joint venture with BHP; the realization of synergies in the Vicuña district; the identification of additional value creation opportunities; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; the results of any Preliminary Economic Assessment, Pre-Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; expansion projects and the realization of additional value; the Company's integration of acquisitions and expansions and any anticipated benefits thereof; the Company's ability to become a top tier copper producer; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking information.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, zinc, nickel, gold and other metals; anticipated costs; ability to achieve goals and identify and realize opportunities; the prompt and effective integration of acquisitions, including the completion of each of the acquisition of Filo, the establishment of the joint venture with BHP and the realization of synergies and economies of scale in connection therewith; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks associated with acquisitions partnerships, including the completion of each of the acquisition of Filo and the establishment of the joint venture with BHP; expansions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; mining rates and rehabilitation projects; mill shut downs; and other risks and uncertainties, including but not limited to those described in the " Risks and Uncertainties" section of the Company's MD&A for the three and six months ended June 30, 2024 and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.com under the Company's profile.

All of the forward-looking information in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

___________________________

1 These measures are non-GAAP measures. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2024 which is available on SEDAR+ at www.sedarplus.com.

Lundin Mining Pre-Announces Items Impacting the Third Quarter 2024 Results (CNW Group/Lundin Mining Corporation)

SOURCE Lundin Mining Corporation

Cision

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Teck Resources Ltd

VANCOUVER, British Columbia, Oct. 15, 2024 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) will release its third quarter 2024 earnings results before market open on Thursday, October 24, 2024.

A webcast to review the results will be held as follows:

Date:			Thursday, October 24, 2024
Time:			8:00 a.m. PT / 11:00 a.m. ET
Listen-Only Webcast:			here
Dial In for Investor & Analyst Q&A:			1.647.484.8814 or 1.844.763.8274
			Quote “Teck Resources”, to join the call
Alternate, pre-register to the call for Q&A:			registration link

An archive of the webcast will be available at teck.com within 24 hours.

About TeckTeck is a leading Canadian resource company focused on responsibly providing metals essential to economic development and the energy transition. Teck has a portfolio of world-class copper and zinc operations across North and South America and an industry-leading copper growth pipeline. We are focused on creating value by advancing responsible growth and ensuring resilience built on a foundation of stakeholder trust. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.

Investor Contact:Ellen LaiCoordinator, Investor Relations604.699.4257ellen.lai@teck.com

Media Contact:Dale SteevesDirector, External Communications236.987.7405 dale.steeves@teck.com

Vancouver, British Columbia–(Newsfile Corp. – October 7, 2024) – Flying Nickel Mining Corp. (TSXV: FLYN) (OTCQB: FLYNF) ("Flying Nickel" or the "Company") announces that, further to its news release dated August 30, 2024, and September 25, 2024, it has closed the second tranche of its non-brokered private placement offering (the "Private Placement") raising gross proceeds of $58,000 through the issuance of 1,160,000 units (the "Units") at a price of $0.05 per Unit.

Each Unit consists of one common share of the Company ("Share") and one share purchase warrant with each warrant (the "Warrant") entitling the holder to purchase one additional Share at a price of $0.06 per Share for a period of three years from issuance.

The securities issued in connection with the Private Placement will be subject to a regulatory hold period and cannot be traded until January 28, 2025.

Proceeds of the Private Placement are expected to be used for general working capital and administrative purposes.

No finder's fee was paid in connection with the second tranche of the Private Placement.

John Lee, CEO and a Director of the Company, subscribed for 800,000 Units for gross proceeds of $40,000. The issuance of Units to Mr. Lee pursuant to the Private Placement is considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relies on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Private Placement by insiders will not exceed 25% of the fair market value of the Company's market capitalization. The Company will file a material change report in respect of the related party transactions in connection with the Private Placement.

The Company is also pleased to announce the appointment of Alex Bayer as its Chief Legal Officer, to lead all legal matters for the Company, effective as of October 2, 2024.

Alex is a seasoned corporate securities lawyer with over 15 years of experience, specializing in the mining sector. He has extensive expertise in advising mining companies on a wide range of matters, including public and private financings, mergers and acquisitions, regulatory compliance, and corporate governance. Known for a deep understanding of securities laws and the unique challenges of the mining industry, Alex has successfully guided companies through complex transactions and strategic initiatives, including bringing mines into commercial production, while ensuring legal and regulatory requirements are met.

The Company further announces that its board of directors has approved the grant of incentive stock options (the "Options") to Mr. Bayer to acquire a total of 200,000 common shares in the capital of the Company at an exercise price of $0.055. All Options were granted pursuant to the Company's 10% rolling stock option plan (the "Plan") and are subject to the terms of the Plan, the applicable grant agreements and the requirements of the TSX-V. The Options are exercisable for a five-year term expiring October 2, 2029. The Options will vest at 12.5% per quarter for the first two years following the grant date starting on January 2, 2025.

Mr. Bayer has agreed to accrue $1,250 of his monthly consulting fee, which accrual shall convert into common shares of the Company at a deemed price equal to the Maximum Discounted Market Price (as such term is defined in Policy 1.1 of the TSX Venture Exchange), up to a maximum discount of 25% (the "Conversion"). The Company shall have the option to pay any accrued amounts in cash at its sole discretion. The Conversion is subject to TSX Venture Exchange Approval.

Mr. Bayer's engagement as Chief Legal Officer is through his consulting company, Bayer Law Corporation.

The Company also appoints Sara Knappe as Corporate Secretary to replace Ms. Marion McGrath. The Company would like to thank Ms. McGrath for her valuable contributions during her tenure with the Company.

About Flying Nickel Mining Corp.

Flying Nickel is an exploration-stage mining company focused on vanadium and nickel resources. The Company owns a 100% interest in the Gibellini vanadium project in Nevada, United States and a 100% interest in the Minago nickel project in the Thompson nickel belt in Manitoba, Canada.

Further information on Flying Nickel can be found at www.flynickel.com.

FLYING NICKEL MINING CORP.

ON BEHALF OF THE BOARD

John LeeChief Executive Officer

For more information about Flying Nickel, please contact:

Suite 1610 – 409 Granville StreetVancouver, BC V6C 1T2Phone: 1.877.664.2535 / 1.877.6NICKELEmail: info@flynickel.com

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225777

WHITE ROCK, BC / ACCESSWIRE / October 2, 2024 / Honey Badger Silver Inc. (TSXV:TUF)(OTCQB:HBEIF) ("Honey Badger" or the "Company") is pleased to announce that it has purchased the Yava project located in Nunavut from Blue Moon Metals Inc. ("Blue Moon"). Pursuant to the purchase agreement, Blue Moon is receiving 4,250,000 common shares ("Shares") of Honey Badger valued at CAD$0.08 per Share. No other obligations by Honey Badger are required (e.g. no cash, no spending requirements, nor any future payments). This consideration represents approximately 6.5% of the total issued and outstanding shares of Honey Badger.

The Shares are subject to a hold period under applicable securities laws which ends on February 2, 2025. Blue Moon has agreed not to resell the Shares for 12 months following closing without the consent of the Company.

Honey Badger's CEO, Dorian L. (Dusty) Nicol, commented, "The Yava project is an exciting addition to Honey Badger's growing portfolio of high-quality silver projects. We already have projects in Nunavut, NWT, and the Yukon and have experience operating in these areas. We are acquiring this project that contains 4.5 million ounces of silver at a price of approximately $0.08 per ounce of silver in the historic resource. The millions of pounds of substantial strategic base metal inventory come at zero cost in that calculation. In addition to its historical resource, Yava has tremendous upside exploration potential. Its location only 45 kilometres from Glencore's Hackett River project (which contains a huge silver resource, 105 million ounces Indicated plus 184 million ounces Inferred), and on the same mineralized belt, adds to the project's value. This is one more step in our strategy of acquiring accretive silver ounces and projects. We welcome Blue Moon as a shareholder."

Yava Deposit

The Yava Property is in the Mackenzie Mining District, Territory of Nunavut, approximately 450 kilometers northeast of Yellowknife. The Yava Property consists of one mining lease of 1,304 hectares.

The Yava Property envelopes four known base and precious metal occurrences mid-way along the length of the Hackett-Back River greenstone belt. The north end of this greenstone belt hosts the Hackett River base and precious metal resource currently held by Glencore. According to Xstrata's December 31, 2012, report, Hackett River's resource estimate includes 25 million indicated tons of 4.2% zinc, 0.6% lead, 0.5% copper, 130 g/t silver and 0.3 g/t gold as well as 57 million inferred tons of 3.0% zinc, 0.5% lead, 0.4% copper, 100 g/t silver and 0.2 g/t gold. This represents 105 million ounces of silver Indicated plus 184 million ounces Inferred, among the largest undeveloped deposits of silver in the world. The Nunavut government has been supportive of mining and of initiating infrastructure projects including roads and ports.

Known metal occurrences at the Yava Property, the Hackett River occurrence and the Musk occurrence are at or near the interface between uppermost felsic volcanic rocks of the greenstone belt and overlying sedimentary rocks. The Yava mining lease includes 9 km of northwest-trending strike-length along the aforementioned volcanic-sedimentary rock interface. Brascan Resources Ltd. estimated that the Yava Main Zone contains 1.3 million tons of 4.96% zinc, 1.03% copper, 1.60% lead, 3.42 oz/t silver, and 0.008 oz/t gold to a depth of 100 metres. The Yava Zone remains fully open at depth, down dip and/or down plunge and along strike.

In addition, there is significant exploration potential associated with untested geophysical and geochemical anomalies and along the favorable volcanic stratigraphy.

The map below shows the location of the Yava Property relative to Glencore's Hackett River Project.

Comments on the Historic Mineral Resource Estimate

The historic preliminary resource estimate of 1.3Mt grading 1.03% Cu, 1.6% Pb, 4.96% Zn, 3.42 opt Ag and 0.008 opt Au (Salaken, 1976, 1977) was prepared for Brascan Resources Ltd. It is classed as a historic mineral resource estimate. A qualified person has not done sufficient work to classify this historic tonnage estimate as a current mineral resource and the Company is not treating the estimate as a current mineral resource. The historic resource estimate cannot be relied upon. Additional work, including verification drilling / sampling and remodeling, will be required to verify the estimate as a current mineral resource. In addition, the assessment of economic viability would need to be redone using current or foreseeable metals prices, which are higher than those used in the historic estimate.

Qualified Person

Technical information in this news release has been approved by Dorian L. (Dusty) Nicol, the Company's CEO (PG, FAusIMM), who is a Qualified Person (QP) for the purpose of National Instrument 43-101.

About Honey Badger Silver Inc.

(2) Clear Lake 2010 SRK historic Resource: Inferred 7.76 million tonnes grading 22 grams/tonne silver, 7.6% zinc, and 1.08% lead.

ON BEHALF OF THE BOARD

Dorian L. (Dusty) Nicol, CEOFor more information, please visit our website www.honeybadgersilver.com or contact Sonya Pekar for Investor Relations | spekar@honeybadgersilver.com |+1 (647) 498 – 8244

Cautionary Note Regarding Forward-Looking Information

SOURCE: Honey Badger Silver Inc.

VANCOUVER, BC, Oct. 1, 2024 /CNW/ – Rokmaster Resources Corp. (TSXV: RKR) (OTCQB: RKMSF) (FSE: 1RR1) ("Rokmaster" or "the Company") is pleased to announce assay results from the excavator trenching program completed in July 2024 on its Fox-Coconut Property.

The Fox-Coconut Property and the Mystery Property are the eastern and western portions, respectively, of the two properties which constitute the Nechako Project located in west-central British Columbia. The road accessible Fox-Coconut Property and its region is host to excellent infrastructure being located 20 kilometers southwest of the Endako Mine and with active forestry operations ongoing in the area (Figure 1). The Fox Showing was discovered by detailed and persistent prospecting in 2013 and subsequent sampling including hand-trenching and channel sampling completed in 20141.

In July 2024, the excavator trenching program completed a total of 366.6 linear meters of channel and composite sampling in shallow trenches2,5. Work focussed around the C Zone and B Zone where both zones returned high-grade gold and silver results from previous sampling by Kootenay Resources. In addition, both C Zone and B Zone exhibited highly crystalline white mica in spectral samples collected in June 2024 by Rokmaster.

Highlights from the 2024 excavator trenching program are presented in Table 1 below and shown in Figure 2:

Table 1: Fox Showing 2024 Trench Sample Highlights (CNW Group/Rokmaster Resources Corp.)

Mineralization throughout the Fox Showing consists of a series of structurally controlled gold and silver bearing epithermal quartz veins, breccias, and stockworks hosted by felsic volcanic rocks of the Ootsa Lake Group. Channel samples collected beyond the southern limit of the C Zone returned up to 4.95 g/t Au and 1,001 g/ Ag, or 16.5 g/t AuEq3, over 1.0 m. A composite sample collected at the end of the trench, approximately 50 m west of the B Zone, returned 2.68 g/t Au over 3.2 m. Approximately 23 m east of the A Zone, a newly exposed series of quartz veins returned 3.57 g/t Au, 368 g/t Ag, or 7.82 g/t AuEq, over 1.0 m.

The eastern portion of the Fox-Coconut Property holds high potential for porphyry-style mineralization with elevated copper-molybdenum values in a region of strong propylitic alteration surrounding unmapped quartz feldspar porphyry and monzonite bodies. There is also a recently discovered showing of subcropping boxwork quartz-limonite veining which returned up to 7.27 g/t Au and 5,388 g/t Ag in grab samples collected in 20194. An exploration permit for trenching and drilling in this area has been applied for with the intention to further explore the area in 2025. In addition, an exploration permit has also been applied for the Mystery Property, which hosts strong potential for porphyry-style mineralization in the western portion of the Nechako Project.

John Mirko, President and CEO, comments:

"The 2024 excavator trenching program both confirmed and expanded outstanding high-grade gold and silver mineralization in the Fox Showing area. We are excited to follow-up with more exploration of this recently discovered area. The team is also planning concurrent exploration on the Coconut Showing in the eastern portion of the Fox-Coconut Property which holds great potential for porphyry-style Cu-Mo-Au mineralization as well as further high-grade Au-Ag mineralization."

Footnote 1: British Columbia Mineral Assessment report #35437.

Footnote 2: Channel samples were cut using a diamond saw to collect a continuous 5×5 cm sample. Composite samples were collected from rock chips as continuously and representative as possible along the stated distance along the trench. Standard reference samples as QA/QC were inserted at a rate of 1 in 20 in the sample sequence and all returned within three standard deviations of the reported value.

Footnote 3: Gold Equivalent ("AuEq") was calculated using the following metal prices: Au=US$2,600/oz, Ag = US$30/oz with the gold equivalent formula: AuEq = Au + 0.011538462*Ag (the calculation assumes conceptual metallurgical recoveries of 80% for Au and Ag).

Footnote 4: British Columbia Mineral Assessment report #38631.

Footnote 5: Samples were prepared and analyzed by MSALABS in Langley BC. After preparation, samples were analyzed for Au by fire assay of a 30 g sample with an AAS finish (MSA method FAS-111). All samples were analyzed for 34 elements including Ag by 4-acid digestion of a 0.25 g sample with ICP-ES finish (MSA method ICP-230). Samples >100 g/t Ag were re-analyzed by an ore grade 4-acid digestion single element method with an ICP-ES finish (MAS method ICF-6Ag). Samples >1000 g/t Ag were analyzed by fire assay fusion of a 30 g sample with a gravimetric finish.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and reviewed and approved by Eric Titley, P.Geo., who is independent of Rokmaster and who acts as Rokmaster's Qualified Person.

On Behalf of the Board of Directors of

Rokmaster Resources Corp.

John Mirko,President & Chief Executive Officer.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term in defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This news release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Rokmaster's operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future vents or results or otherwise.

Nechako Project Map (CNW Group/Rokmaster Resources Corp.)Trenching Map Fox Property (CNW Group/Rokmaster Resources Corp.)Rokmaster Resources Corp. logo (CNW Group/Rokmaster Resources Corp.)

SOURCE Rokmaster Resources Corp.

Cision

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Rio Tinto Group RIO shares have gained 10.3% in the past week, outperforming the industry's 9.7% rise and the Basic Materials sector’s 4.9% return. The S&P 500 has moved up 0.4% in the same timeframe.

The recent jump in the RIO stock is attributed to China’s announcement of the largest stimulus package since the pandemic in an attempt to revive its economic growth to its 5% target for 2024. This has led to a much-awaited recovery in iron ore prices, which so far have been weighed down by weak demand in China.

Copper prices have also gained on the upbeat demand prospects in the world’s largest consumer. Earlier, the U.S. Federal Reserve announced an aggressive interest cut of half a percentage point, which also boosted copper prices.

RIO Performance in the Past Week Vs Broader Market

Zacks Investment Research

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RIO Trades Above 50 & 200-Day SMA

Zacks Investment Research

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RIO has reached a key support level from a technical perspective. On Sept. 23, the stock crossed its 200-day simple moving average (SMA), indicating a long-term bullish trend. The stock is trading above its 50-day and 200-day moving averages, as shown in the chart below. This highlights positive market perception and confidence in RIO’s growth prospects.

RIO shares closed at $71.23 on Friday, which is 5.1% below the 52-week high of $75.09 reached on Dec. 28, 2023. Investors are now wondering if this momentum will continue and whether it is the right time to buy the stock or wait for a better entry point. Let us take a look at RIO’s fundamentals to analyze the stock.

Solid Balance Sheet Positions RIO to Invest in Growth

Balanced Capital Allocation Strategy: Rio Tinto has a total debt-to-total capital ratio of 0.20, lower than the industry’s 0.26. Its financial strength allows it to simultaneously invest in growth projects and maintain shareholder returns. Rio Tinto continues to earmark $10 billion for capital expenditure per year. This includes $7 billion to be spent on existing projects, high-returning replacement projects and decarbonization efforts. The growth capex is estimated at up to $3 billion per year.

Solid Portfolio of Projects: Rio Tinto has a robust portfolio of projects with activity in 18 countries across eight commodities in the early exploration and studies stages. Simandou (iron ore) and Oyu Tolgoi (copper) are the primary growth projects. The high-grade Simandou project is set for its first iron ore production at the end of 2025 and will ramp up to 60 million tons by 2028.

Oyu Tolgoi is ramping up to deliver 500 kt per year of copper from 2028 to 2036. Rio Tinto is investing in growth in the Pilbara to raise its mid-term capacity of 345 to 360 Mtpa (100% basis), subject to delivery of the next tranche of replacement mines.

RIO plans to deliver around 3% of compound annual growth in copper equivalent production from 2024 to 2028 from existing operations and projects.Decarbonization Remains Top Priority: In July 2024, Rio Tinto announced the installation of carbon-free aluminum smelting cells using the ELYSIS technology at its Arvida smelter in Quebec. It is investing in a research and development facility in Western Australia to test the effectiveness of its breakthrough low-carbon ironmaking process, BioIron.

Rio Tinto signed 20-year electricity arrangements, backed by renewable electricity, to secure the future of the Tiwai Point aluminum smelter in New Zealand. RIO is looking at other avenues to lower its carbon footprint. It recently announced that it would invest in Pongamia seed farms in Australia to explore the possibility of using it as a feedstock for renewable diesel.

Acquisitions to Boost Portfolio: In 2022, RIO acquired the Rincon lithium project in Argentina. Rincon is on track for the first lithium production from the starter plant by the end of 2024.

Last year, Rio Tinto acquired a 50% equity stake in the Matalco business from Giampaolo Group., securing a leading position in the rapidly growing North America recycled aluminum market. The demand for recycled aluminum in the United States is projected to increase by more than 70% from 2022 to 2032, driven by the transportation, construction and packaging sectors.

Per recent reports, Rio Tinto is eying Teck Resources TECK as a potential acquisition target. Following the sale of its steelmaking business, Teck Resources is focusing on copper and zinc, which are expected to play key roles in the energy transition trend.

Pickup in Commodity Prices Bodes Well for Rio Tinto

Iron Ore prices have declined 31.8% since the beginning of 2024 due to the weak demand in China amid the prolonged property crisis. However, prices have recovered to around $93 per ton lately, buoyed by China’s implementation of various economic support measures, which investors believe could bolster the demand for commodities.

Copper and aluminum prices have also gained on the back of these stimulus measures. Copper prices have gained 17.34% year to date and aluminum prices have moved up 10.11%.

Lithium prices have, however, declined 21.76% so far this year amid robust supply growth in key producing countries.

Growth in world steel production, spurred by urbanization, will fuel the demand for iron ore and support its prices in the long term. Copper prices will be supported by demand in the electric vehicle market and renewable energy investments. While the prices of lithium (a critical mineral in the global transition to clean energy) have been down this year, its long-term fundamentals are solid.

RIO Offers Industry-Leading Dividend Yield & Returns

RIO’s current 4.96% dividend yield is higher than the industry’s 3.40%. It has a five-year dividend growth rate of 5.5%. The company declared $2.9 billion of dividends for the first half of 2024, translating to a 50% payout.

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Rio Tinto’s Return on Equity (ROE) stands at 20.86%, ahead of the industry’s 2.06. ROE is a profitability measure of how prudently the company is utilizing its shareholders’ funds. This outscores miners like BHP Group’s BHP ROE of 20.2%, Teck Resources’ 6.5% and FreeportMcMoRan’s FCX 7.6%.

What Does RIO’s Valuation Suggest?

Rio Tinto’s valuation remains attractive. The company trades at a forward price-to-earnings multiple of 9.78, lower than the industry's 13.39. Presently, RIO has a Value Score of A.

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The company is also trading at a discount compared with BHP Group, FreeportMcMoRan and Teck Resources.

Near-Term Concerns for RIO

Rio Tinto Expects Lower Copper Production Rate for 2024: In the second quarter of 2024, the company made changes to the mine plan at Kennecott to manage geotechnical risk in the area. This delayed access to pit ore resulted in additional lower-grade stockpiled material being processed. Rio Tinto is reworking the mine plan and guided copper production for fiscal 2024 to be near the lower end of the earlier stated 660-720 kt. This suggests year-over-year growth of 6%, lower than the earlier projected 6-16%.

Iron Ore Production in 2024 to Dip 0.4% at the Midpoint: RIO’s iron ore production was down 2% year-over-year in the first half of fiscal 2024 to 157.4 Mt and shipments also declined 2% to 158.3 Mt. A train collision in May, which resulted in around six days of lost rail capacity and full stockpiles at some mines led to the decline in both the metrics.

Rio Tinto expects Pilbara iron ore shipments (100% basis) to be 323-338 Mt in 2024, indicating a 0.4% year-over-year dip at the mid-point. The company expects SP10 levels, which include other lower-grade products, to remain elevated until replacement projects are delivered.

Reduced Rate at Gladstone to Impact Alumina Output: Alumina production is anticipated between 7 Mt and 7.3 Mt (previously 7.6-7.9 Mt) for fiscal 2024. This is lower than the reported output of 7.5 Mt in 2023 as the Gladstone operations continue to operate at reduced rates following a fire that impacted a third-party gas pipeline. Rio Tinto expects gas supplies from the pipeline to resume normally by the end of this year. Aluminum production is anticipated to be 3.2-3.4 Mt, whereas it produced 3.3 Mt in 2023.

Costs to Weigh on Rio Tinto’s Near-Term Margins

The impacts of 3.5% inflation on RIO’s cost base lowered its underlying EBITDA year over year by $0.3 billion in the first half of 2024. The easing of diesel prices and lower prices for natural gas offset some of this impact.

Rio Tinto remains focused on cost control, maintaining discipline on fixed costs, which are expected to increase in 2024. Tightness in the company’s key labor markets continues to lead to higher costs.

Pilbara Iron ore unit costs are projected at $21.75-$23.50 per ton for 2024, suggesting growth from the $21.50 per ton reported in 2023. This reflects the increased work effort in the mines, and inflation in the costs of labor and parts in Western Australia. However, copper unit costs are expected at $1.40-$1.60 per pound due to higher volumes at Oyu Tolgoi, whereas it reported $1.95 in 2023.

RIO’s Falling Earnings Estimates Reflect Low Production View

The Zacks Consensus Estimate for Rio’s earnings for 2024 and 2025 for RIO has undergone negative revision activity, as shown in the following charts.

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Zacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2024 earnings is pegged at $7.23, suggesting a year-over-year dip of 0.3% due to a low production outlook and inflated costs. Earnings are expected to rise 1% in fiscal 2025.

To Sum up: Hold on to RIO Stock for Now

Despite the recent rise in commodity prices, a weak production guidance and inflated labor costs, as reflected in the downward revision in earnings estimates is concerning. While Rio Tinto’s attractive valuation, and industry-leading dividends and capital returns are noteworthy, we recommend that investors wait for a better entry point.

Those, who already own the RIO stock, should maintain their positions to benefit from the company’s solid project portfolio and the long-term positive outlook for commodity prices.

Rio Tinto currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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We recently compiled a list of the 10 Best Coal Stocks To Buy Now According to Short Sellers. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against the other coal stocks.

Coal is highly valued for its energy content and is widely used across the globe for electricity generation, as well as for the production of steel and cement. It is extracted using either the opencast or underground mining methods.

The thermal coal sector experienced a year-to-date (YTD) decline of 0.47%, in contrast to the broader market's 19.55% increase. The coal industry has been grappling with significant challenges, leading to its underperformance in recent years. One of the primary reasons is the sharp decline in coal usage for electricity generation in the U.S., as utility operators increasingly shift toward renewable energy sources and focus on decarbonization. The planned retirement of coal units and stricter emission regulations, aimed at achieving carbon-neutral electricity by 2030, have further accelerated this decline. With coal’s share in the U.S. power generation expected to drop to just 14% by 2025, the industry faces mounting pressure as demand continues to dwindle domestically, according to a report by the Energy Information Administration.

Despite these headwinds, there are potential signs of recovery, especially on the global front. U.S. coal exports are projected to grow as demand rises in European markets, partly driven by the ongoing Russia-Ukraine conflict. Additionally, the expected rebound in global steel production, which heavily relies on coal, is likely to boost export volumes.

Coal Industry Outlook

Coal has long been valued for its role in reducing poverty by providing job opportunities in regions with few employment prospects. In addition, coal mining stimulates economic growth by attracting investment and generating local government revenue.

While "green companies" have advocated for wind and solar power as the cheapest forms of electricity, claiming that transitioning to renewables is key to achieving net-zero emissions, the reality has proven different. The transition to renewable energy has struggled to address the "Energy Trilemma," which emphasizes balancing energy security, affordability, and sustainability.

Nevertheless, Ember’s Global Electricity Review 2023 predicts that wind and solar energy will replace coal by 2030, contributing 41% to global electricity generation, a significant jump from 2021. This shift will require coal generation to decrease by 54% and gas generation to decrease by 24%. At the same time, global electricity demand is expected to rise, with an average annual increase of 3.7% from 2021 to 2030.

With 60% of its electricity powered by coal, China's share of global electricity consumption is expected to rise to one-third by 2025, up from one-quarter in 2015, according to the International Energy Agency. However, according to Sinopec, China’s coal power consumption is expected to halt its growth by 2025, with non-fossil fuel sources predicted to dominate the country’s power mix by 2045. Check out our article '25 Largest Coal Producing Countries in the World' on Insider Monkey. You'll find that China, India, and Indonesia are the top three coal producers, with China leading global coal production for decades and expected to continue dominating in the foreseeable future.

Coal Power Stays Important in the U.S. Energy Mix

The European Electricity Review of 2024 reported a record 19% drop in fossil fuel generation last year, with coal and gas generation experiencing an unprecedented decline. Coal generation declined by 26%, accounting for just 12% of the EU's electricity mix in 2023, while gas generation dropped by 15%, accounting for 17%.

Similarly, the U.S. coal-fired power generation reached its lowest level in four years during the first four months of 2024 but still accounted for 15.6% of the national power mix. While coal output continues to decline, renewable energy growth, particularly wind power, has been slower than anticipated. This has kept coal's share significant, even as the country moves toward cleaner energy sources.

Methodology

To compile our list of the 10 Best Coal Stocks to Buy Now According to Short Sellers, we ranked the holdings by the percentage of outstanding shares that were sold short. Stocks with the lowest short interest were then chosen. Additionally, we included the number of hedge funds that had invested in these stocks at the end of the second quarter of 2024, according to Insider Monkey's database. The stocks are ranked in descending order of short interest.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

An aerial view of a mining operation in action, with large trucks and yellow diggers.

BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Holders: 22

Short % of Shares Outstanding: 0.41%

Headquartered in Melbourne, Australia, BHP Group Limited (NYSE:BHP) engages in the exploration, development, production, and processing of iron ore, metallurgical coal, and copper. Its Copper segment also includes mining silver, lead, zinc, molybdenum, uranium, and gold, while its coal segment focuses on metallurgical and energy coal.

In Q4 2024, BHP Group Limited (NYSE:BHP) reported a $1.8 billion revenue increase, bringing total revenue to $55.7 billion, driven by higher iron ore and copper prices. This growth was partially offset by lower energy coal and nickel prices, along with reduced steelmaking coal volumes following the Blackwater and Daunia divestment in April 2024. Due to the divestment, the company expects a 23% decline in its steelmaking coal production in 2025.

However, net earnings were $7.9 billion, impacted by $5.8 billion in exceptional charges, including a $2.7 billion impairment on its Western Australia Nickel business and a $3.8 billion charge related to the Samarco Dam incident.

BHP Group Limited (NYSE:BHP) maintained strong liquidity in Q4 2024, generating over $20 billion in net operating cash flow. This solid cash generation allowed the company to reduce its net debt to $9.1 billion while continuing to invest $9.3 billion in growth initiatives.

On 30 August 2024, the South Australian government initiated the application process for BHP’s Olympic Dam expansion. The company aims to increase copper production to 500,000 tons by the early 2030s and possibly 650,000 tons by the mid-2030s.

The stock's 0.33% rise over the past month is likely driven by optimism surrounding the Olympic Dam expansion and plans to boost copper output. However, the 20.53% YTD decline is mainly due to earlier copper price surges, followed by a drop caused by oversupply and weaker economic indicators, such as sluggish U.S. job openings and demand concerns.

As of Q2 2024, 22 hedge funds, holding a combined investment of $1.3 billion, are bullish on the stock, as per Insider Monkey’s database. Moreover, 0.41% of shares outstanding were sold short, suggesting that most investors do not expect a significant decline in the stock's value.

Overall BHP ranks 1st on our list of the best coal stocks to buy according to short sellers. While we acknowledge the potential of BHP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BHP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Disclosure: None. This article is originally published at Insider Monkey.

We recently compiled a list of the 10 Best Coal Stocks To Buy Now According to Short Sellers. In this article, we are going to take a look at where Teck Resources Limited (NYSE:TECK) stands against the other coal stocks.

Coal Industry Outlook

Coal Power Stays Important in the U.S. Energy Mix

Methodology

A close up of an automated machine processing other Industrial Metals & Mining resources.

Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 69

Short % of Shares Outstanding: 1.23%

Headquartered in Vancouver, Canada, Teck Resources Limited (NYSE:TECK) is involved in the exploration, acquisition, development, production, and sale of natural resources. Its product range includes steelmaking coal, copper, zinc, industrial products, fertilizers, and other metals.

In Q2 2024, Teck Resources Limited (NYSE:TECK) reported a total revenue of $2.9 billion, a 10.1% increase, driven by record copper production (51,300 tons) and strong sales in the steelmaking coal segment, which contributed 52% of total revenue. Production from all coal plants was strong in Q2, driven by improved plant reliability.

Net profit declined by 28.8%, primarily due to higher operating costs from the ramp-up of Quebrada Blanca (QB) Phase 2 and the impact of non-controlling interest (NCI) after the sale of the coal business. Additionally, Teck reported an EPS of $0.573, beating analysts' expectations.

In terms of liquidity, Teck Resources Limited (NYSE:TECK)'s position strengthened with $6.4 billion in cash, including $5.4 billion from the sale of the coal business, and a net cash position of $2.1 billion after debt repayments.

In September 2024, the company unveiled a new structure of two regional divisions: North America and Latin America, to sharpen its focus on energy transition metals. The restructuring aims to boost copper growth, streamline operations, and enhance shareholder value.

Teck's 17.2% YTD gain is driven by strong copper growth, the QB ramp-up, and the sale of its coal business, positioning the company as a pure-play energy transition metals company.

As of Q2 2024, 69 hedge funds, with a combined investment of $2.0 billion, are bullish on the stock, according to Insider Monkey’s database.

Overall TECK ranks 2nd on our list of the best coal stocks to buy according to short sellers. While we acknowledge the potential of TECK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TECK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Disclosure: None. This article is originally published at Insider Monkey.

BHP Group BHP has announced that it plans to trial Caterpillar Inc.’s CAT recently launched Cat Dynamic Energy Transfer (DET) at its mining site. Caterpillar’s cutting-edge solution is engineered to transfer energy to large mining trucks (both diesel-electric and battery-electric) while they operate on site.

The trials are the result of more than two years of collaboration between BHP and Caterpillar to find sustainable and viable energy transfer solutions. The trials include validating the solution in BHP’s Iron ore and Copper businesses, including the CAT 793 fleet at Jimblebar and the CAT 798 fleet at Escondida. BHP also intends to trial Cat DET as an integrated system with Cat autonomous solutions.

CAT’s Solution Offer Benefits to BHP & Other Miners

The Cat DET system has several key components, which include a power module that converts energy from the mine’s power source and an electrified rail system to transmit this energy. It has a machine system to transfer the energy to the truck's powertrain.One of the most noteworthy aspects of the system is its highly mobile and flexible rail system. It can be tailored according to a mine’s layout, ensuring higher productivity. The connecting arm can be mounted on either side of the truck and is compatible with various truck models, thereby making it adaptable to different operational setups. It can be deployed at both mature and developing mine sites, allowing options for expansion to ensure complete coverage of the site.

The system will address the persistent challenge of energy management for BHP and other miners while also lowering operating costs, improving machine efficiency and cutting down greenhouse gas emissions.

BHP’s Efforts to Achieve Net Zero by 2050

BHP targets to reduce operational greenhouse gas emissions by at least 30% by fiscal 2030 from the fiscal 2020 baseline. It expects to attain net zero operational greenhouse gas (GHG) emissions by 2050.

In fiscal 2024, the company reported a 32% reduction in Scope 1 and 2 emissions compared with the fiscal 2020 baseline. BHP estimates up to $4 billion in spending and commitments to execute its operational decarbonization plans.

The company's major source of operational GHG emissions is diesel. To replace diesel, BHP has been working with Caterpillar and Komatsu KMTUY since 2021 to support the development of battery-electric trucks.

In May 2024, BHP and Rio Tinto RIO agreed to trial large battery-powered haul trucks manufactured by Caterpillar and Komatsu in the Pilbara region of Western Australia. BHP will trial the Caterpillar trucks while Rio Tinto will test the Komatsu trucks.

Two Cat 793 haul trucks are under trial by BHP this year, followed by the trials of two Komatsu 930 haul trucks in 2026.

BHP Stock’s Price Performance & Zacks Rank

BHP’s shares have gained 9.4% in a year compared with the industry’s 6.9% growth.

Zacks Investment Research

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BHP Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Ero Copper Corp. (ERO) shares rallied 5.2% in the last trading session to close at $23.11. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4% gain over the past four weeks.

Ero Copper’s share price has gained on the back of the surge in copper and gold prices. Copper futures for December delivery increased 3.33% in a day, closing at $4.64 per pound on Thursday as China implemented various stimulus measures to support economic growth. Copper prices have also been gaining after the Federal Reserve announced an aggressive interest cut of half a percentage point.

Gold price is currently around a record high of $2,670 per ounce as markets anticipate another rate cut in November. Risk of a broader conflict in the Middle East have also boosted prices.This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +166.7%. Revenues are expected to be $148.8 million, up 41.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ero Copper, the consensus EPS estimate for the quarter has been revised 10.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ERO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ero Copper belongs to the Zacks Mining – Non Ferrous industry. Another stock from the same industry, Lundin Mining (LUNMF), closed the last trading session 4.2% higher at $10.75. Over the past month, LUNMF has returned 0.9%.

Lundin's consensus EPS estimate for the upcoming report has changed -8.7% over the past month to $0.21. Compared to the company's year-ago EPS, this represents a change of +90.9%. Lundin currently boasts a Zacks Rank of #3 (Hold).

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Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report

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Zacks Investment Research

Southern Copper (SCCO) ended the recent trading session at $118.87, demonstrating a -1.3% swing from the preceding day's closing price. This change lagged the S&P 500's 0.13% loss on the day. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.39%.

The the stock of miner has risen by 18.73% in the past month, leading the Basic Materials sector's gain of 5.81% and the S&P 500's gain of 2.43%.

The upcoming earnings release of Southern Copper will be of great interest to investors. It is anticipated that the company will report an EPS of $1.04, marking a 31.65% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.77 billion, reflecting a 10.58% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.29 per share and a revenue of $11.55 billion, signifying shifts of +37.94% and +16.71%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Southern Copper possesses a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 28.06 right now. Its industry sports an average Forward P/E of 17.91, so one might conclude that Southern Copper is trading at a premium comparatively.

Also, we should mention that SCCO has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Mining – Non Ferrous industry was having an average PEG ratio of 0.88.

The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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By Clara Denina and Felix Njini

LONDON (Reuters) – Leading mining companies are struggling to balance investor expectations for hefty returns with paying the necessary premiums to buy pure play copper companies as global demand for the metal sends valuations soaring.

Big diversified miners including Rio Tinto, BHP Group and Glencore, pressured by a slowdown in global economic growth and falling commodity prices, are watching rival copper producers gradually grow beyond their reach, with shares benefiting from the metal's robust outlook.

While shares of Rio, BHP and Glencore have slumped between 10% and 15% this year, the valuations of pure play copper producers including Freeport-McMoRan, Ivanhoe Mines and Teck Resources have risen, even as benchmark copper prices retreated after hitting a record high above $11,000 a metric ton in May this year.

"Engaging in large copper deals makes the boards (of directors) nervous when fluctuations in other commodities, like iron ore and coal, are likely to persist," a banker, who has worked on several mining transactions, told Reuters.

"And since copper companies have performed better, diversified miners find it challenging to pay massive premiums when their share prices have dropped more in comparison," the banker added.

BHP, Rio Tinto and Glencore trade at multiples of five to six times earnings, whereas Teck, Freeport, and Ivanhoe are at nearly double that, the banker said.

Copper, used in power and construction, is set to benefit from burgeoning demand from the electric vehicle sector and new applications such as data centres for artificial intelligence.

The long-term outlook for the metal isn't always factored in by investors in the bigger miners when they offer higher premiums to try and seal a deal, said Richard Blunt, a partner at law firm Baker McKenzie.

"Investors only want to know what's going to happen to the value of their company over the next three to six months, and that's a major problem," Blunt said.

In the past three years, thanks to higher commodity prices most miners have paid record dividends, which – although popular – are seen as eroding the industry's ability to generate production growth via exploration, mine development, or consolidation.

COSTLY HISTORY

Investors have good reason to keep a wary eye on management's dealmaking ambitions as most miners have a corporate history littered with failed and sometimes costly acquisitions.

Rio Tinto's $38 billion deal for Alcan in 2007 commanded a 65% premium, and subsequent writedown, while BHP's $12 billion deal for U.S. onshore shale oil and gas assets in 2011 sold back for $10 billion in 2018.

Some management teams have tried to return to M&A, but with no or only partial success.

"There's the pure financial aspect, which is the resistance of existing shareholders to significant premia," said Michel Van Hoey, senior partner at McKinsey & Company.

"If you look historically, 10 years ago, we have gone through a significant wave where some companies probably overpaid for their transactions. Now, executives have become a bit more conservative," he added.

Glencore eventually settled for 77% of Teck's steelmaking coal assets after its $23 billion bid for all of the Canadian miner was spurned, while BHP was forced to walk away from Anglo American even after revising its initial bid two times to entice the smaller rival.

Both BHP and Glencore initially made all-share proposals for their target companies.

"In past cycles, companies such as Rio Tinto engaged in substantial cash acquisitions at peak times, only to see prices crash, leaving them looking imprudent," a mining investor said.

"Today, the trend has shifted towards stock-based deals to mitigate risks, but that is more expensive, especially at a time when commodity prices are coming down."

(Reporting by Clara Denina and Felix Njini; Editing by Veronica Brown, Kirsten Donovan)

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