Base Metals Archives - Page 27 of 97

(Bloomberg) — Many of the world’s biggest nickel mines are facing an increasingly bleak future as they wake up to an existential threat: a near limitless supply of low-cost metal from Indonesia.

Most Read from Bloomberg

With roughly half of all nickel operations unprofitable at recent prices, the bosses of the largest mining companies last week sounded a warning that there was little prospect of a recovery.

The potential collapse of nickel mining from Australia to New Caledonia comes at a time when western governments are scrambling to secure the supply chains needed to decarbonize the global economy. But in an ironic twist, Indonesia’s coal-fired nickel output is pricing out greener metal that’s so far failed to command a market premium.

Wresting control of strategic metals from China has become a focal point of Joe Biden’s administration. Yet while US officials have dashed around the world looking to strike deals for materials such as cobalt and copper, the heaviest reverse has come in Chinese-backed Indonesian nickel, a key component of electric vehicles.

Indonesia now accounts for more than half of world supply, with the potential to reach three-quarters of all production toward the end of the decade.

“There is a serious structural challenge as a result of Indonesian nickel,” said Duncan Wanblad, chief executive officer of Anglo American Plc, after his company took a $500 million writedown on its nickel business last week. “They don’t seem to be letting up anytime soon.”

Read More: US Bid to Loosen China’s Grip on Key Metals for EVs Is Stalling

Traditionally, nickel has been split into two categories: low grade for making stainless steel and high grade for batteries. A huge Indonesian expansion of low-grade production led to a surplus, and, crucially, processing innovations have allowed that glut to be refined into a high-quality product.

Commodity markets have always been susceptible to cyclical volatility, especially when sudden supply and demand imbalances get a push from wider macro upswings or downturns. But what’s happening in nickel right now is different, with the entire industry undergoing a structural shift that has upended forecasts and models.

For BHP Group, the world’s biggest miner, nickel is a rounding error, contributing mostly losses to profits that routinely break $30 billion a year. Yet in recent years the company has championed the metal, seeing it as a key growth market that will help offset its retreat from fossil fuels.

Instead it’s turned into a disaster.

This week CEO Mike Henry conceded that the company will have to make a decision on whether to shutter its flagship nickel business in Australia within the next few months. Having already written down the business’s value by $2.5 billion, Henry said he expects the market to remain in surplus until at least 2030.

Read More: Top Miner BHP Takes $2.5 Billion Nickel Hit After Price Fall

That means the pain is likely just starting.

Macquarie Group Ltd. calculates that about 250,000 tons of annual production — equivalent to about 7% of the total — has been taken out of the market by closures, with another 190,000 of planned output delayed.

Combined with economic slowdowns in China and the US and the choppy adoption of EVs, nickel has been pummeled. The price fell 45% last year, and is currently hovering around $17,000 a ton. According to Macquarie, at $18,000 a ton 35% of production is unprofitable, while at $15,000 a ton that jumps to 75%.

Anglo’s CEO Wanblad, who is reviewing nearly all the company’s mines in bid to cut costs, said that he will give the miner’s nickel business time in the face of the Indonesian threat.

“Our nickel business will undergo a fulsome review in terms of holding its head above water and making a viable profit,” he said. “I’m not giving up on the guys to come up with a plan that might help them readjust themselves into a position where they can function effectively.”

Glencore Plc, which has already moved to shutter its nickel operations on the islands of New Caledonia, is one of the world’s biggest producers with sprawling businesses in Canada and Australia. At current prices, that business will make just $500 million this year, with CEO Gary Nagle expecting prices to remain depressed.

“We see continuing strong production growth out of Indonesia,” Nagle said. “We do not expect significant price recovery in the short to medium term.”

With more than half a decade of oversupply ahead, more mines are likely to close before things get better. Should the market finally rebalance, that will leave Indonesia and China with even more market share then they already have.

Still, Indonesia’s rapid expansion has drawn criticism. Much of its production comes from coal-powered energy, giving it higher emissions per ton than rival producers, and its rapid expansion is eroding rainforests.

With little prospect of a near term recovery, western miners are pinning their hopes on state aid in the short term and a push toward customers — such as carmakers — demanding “greener” nickel in the future and being willing to pay more for it.

BHP this week called for the London Metal Exchange to expand its responsible sourcing policy to include environmental due diligence, helping to differentiate production from Indonesian and Chinese supply.

Still, as conceded by Glencore, so far buyers of nickel are unwilling to pay more.

“Right now there is not much of a premium in the market,” Nagle said.

Most Read from Bloomberg Businessweek

Teck Resources TECK reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.02, beating the Zacks Consensus Estimate of $1.01. The bottom line increased 29% from the year-ago quarter. Earnings benefited from higher steelmaking coal sales volumes and copper prices, which were partially offset by lower steelmaking coal and zinc prices.

Results were also impacted by increased unit costs across TECK’s operations, which include higher costs, reflecting the ongoing production ramp-up at Quebrada Blanca Operations.

Including one-time items, the company reported EPS of 68 cents in the fourth quarter of 2023 compared with the year-ago quarter’s earnings of 38 cents per share.

Teck Resources Ltd Price, Consensus and EPS SurpriseTeck Resources Ltd Price, Consensus and EPS Surprise

Teck Resources Ltd price-consensus-eps-surprise-chart | Teck Resources Ltd Quote

Net sales amounted to $3.02 billion, indicating a 30.5% year-over-year improvement. The top line missed the consensus estimate of $3.12 billion.The gross profit was CAD$1.24 billion ($0.91 billion), up 16% from the year-ago quarter. The gross margin was 30.1% compared with the year-ago quarter’s 36.8%.The adjusted EBITDA was CAD$1.7 billion ($1.25 billion), which marked 28% growth from the year-earlier period. The EBITDA margin was 41.5% in the quarter under review compared with the year-ago quarter’s 42.5%.

Segment Performances

The Steelmaking Coal segment reported sales of CAD$2.27 billion ($1.67 billion), reflecting a year-over-year increase of 35%. The segment reported gross profit of CAD$1.08 billion ($0.8 billion), which was up 28% from the fourth quarter of 2022.

The Copper segment’s net sales surged 52% year over year to CAD$1.14 billion ($0.84 billion) in the reported quarter. The segment’s gross profit was CAD$81 million ($60 million) in the reported quarter, which marked a 67% plunge from the year-ago quarter.The Zinc segment’s net sales were down 1.4% year over year to CAD$701 million ($515 million) in the reported quarter. The segment’s gross profit improved 25% to CAD$71 million ($52 million).

Cash Flow & Balance Sheet

Teck Resources generated a cash flow of CAD$1.13 billion ($828 million) from operating activities in the fourth quarter of 2023, up 21% year over year. The company had cash and cash equivalents of CAD$0.7 billion ($0.5 billion) at the end of 2023 compared with CAD$1.9 billion at the end of 2022. Total debt was CAD$6 billion ($4.4 billion) at the end of 2023.

On Feb 21, 2024, TECK’s board authorized up to a $500 million share buyback and also approved the payment of a quarterly base dividend of 12.50 cents per share. The dividend will be paid on Mar 28, 2024, to shareholders of record as of Mar 15, 2024.

Guidance

Teck Resources expects steelmaking coal production to be between 24 million tons and 26 million tons for 2024. Copper production is anticipated to be 465,000-540,000 tons. Zinc production is projected between 565,000 tons and 630,000 tons. Refined zinc is estimated between 275,000 tons and 290,000 tons.For first-quarter 2024, the company expects sales of zinc in concentrate of 70,000-85,000 tons at Red Dog. Steelmaking coal sales are projected to be 5.9-6.3 million tons for the quarter.

Fiscal 2023 Results

Teck Resources reported adjusted EPS of $3.82 in 2023, beating the Zacks Consensus Estimate of $3.81. Compared with EPS of $7.01 in 2023, the figure marked a decline of 45.5%.

Including one-time items, the company reported EPS of $3.40 in 2023 compared with $4.76 in 2022.Net sales amounted to $15 billion in 2023, indicating a 13% year-over-year decline. The top line missed the Zacks Consensus Estimate of $11.25 billion.

Sale of Steelmaking Coal Unit

On Nov 13, 2023, Teck Resources announced that it has agreed to sell its entire stake in its steelmaking coal business, Elk Valley Resources (“EVR”), for an implied enterprise value of $9 billion. The majority of the sale (77%) will be made to Glencore plc GLNCY and 20% to Nippon Steel Corporation. Proceeds will be used to strengthen TECK’s balance sheet while returning cash to shareholders. It will help the company focus on growing its extensive copper portfolio and thereby capitalize on the energy transition trend.

Glencore will acquire a 77% stake in EVR for $6.9 billion in cash. The deal, subject to customary closing adjustments, is expected to close by the third quarter of 2024.

Nippon Steel Corporation completed the acquisition of the 20% interest in EVR on Jan 3, 2024, with a payment of $1.3 billion in cash to Teck.POSCO PKX has taken up the remaining 3% interest in EVR, in exchange for the company’s current 2.5% interest in Elkview Operations and 20% interest in the Greenhills joint venture.

Until the deal is closed, Teck will continue to operate the steelmaking coal business and will retain all cash flows, which are estimated to be around $1 billion.

Price Performance

The company’s shares have dipped 1.2% in the past year compared with the industry’s 0.3% decline.

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Teck Resources currently carries a Zacks Rank #3 (Hold).

A better-ranked stock from the basic materials space is Carpenter Technology Corporation CRS, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 34% in a year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

POSCO (PKX) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Glencore PLC (GLNCY) : Free Stock Analysis Report

Teck Resources Ltd (TECK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

In this article, we discuss 11 best copper stocks to invest in. If you want to skip our discussion on the copper industry, head over to 5 Best Copper Stocks To Invest In According To Analysts.

Due to the explosive growth in the electrical and electronics, construction, industrial machinery manufacturing, automotive manufacturing, and infrastructure sectors, the copper market is expected to grow from $166.25 billion in 2023 to $179.84 billion in 2024, exhibiting a compound annual growth rate of 8.2%. Similarly, the copper market is projected to reach $240.52 billion in 2028, indicating a CAGR of 7.5% throughout the forecast period of 2024-28.

Global copper producers experienced strong demand from China in the first half of the year due to decarbonization efforts, countering a weak property market. However, the future outlook depends on Beijing's stimulus measures. The copper market may shift into a modest, multiyear surplus until 2025, driven by increased mined supply. Similarly, South America's challenging regulatory and political environments may support the market in the midterm. According to Bloomberg Intelligence, near-term copper prices could dip below $8,000 a ton, with marginal cost support around $7,400. Miners anticipate a significant output increase in the second half of this year, with 2024 showing a potential 4-4.5% growth in mined supply. However, Bloomberg suggests that the benefits of greenfield and brownfield projects may start to diminish from 2027. Regulatory approvals could become more protracted, potentially causing a slowdown in mined copper supply growth by the middle of the decade, leading to market deficits by the end of the decade unless development speeds up.

According to a January 2024 CNBC report, copper prices are projected to surge by over 75% in the next two years due to disruptions in mining supply and increased demand for the metal, particularly driven by the global push for renewable energy. The rise in demand, fueled by the green energy transition, coupled with an expected decline in the US dollar in the latter half of 2024, is expected to contribute to the upward trend in copper prices. Market expectations of potential rate cuts by the US Federal Reserve this year, leading to a weaker dollar, are seen as a factor making US dollar-priced copper more appealing to foreign buyers.

Over 60 countries endorsed a plan at the recent COP28 climate change conference to triple global renewable energy capacity by 2030. Citibank sees this development as highly positive for copper. In a December report, the bank predicted that the increased targets for renewable energy would lead to an additional demand for 4.2 million tons of copper by 2030. This surge in demand could potentially drive copper prices to $15,000 per ton in 2025, surpassing the previous record peak of $10,730 per ton reached in March 2023. Citi analysts project a positive scenario for copper prices, contingent on a very soft economic landing in the US and Europe, an earlier rebound in global growth, and substantial easing measures in China. The analysts also emphasize the importance of ongoing investments in the energy transition sector for this future.

Some of the best copper stocks to buy include Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Freeport-McMoRan Inc. (NYSE:FCX).

Our Methodology

We shortlisted the top copper stocks by considering their upside potential, relying on analyst price targets as of February 24. We have assessed the hedge fund sentiment from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

11 Best Copper Stocks To Invest In According To Analysts

An aerial view of a copper mine, showing the intricate workings of heavy machinery.

Best Copper Stocks To Invest In According To Analysts11. Metals Acquisition Limited (NYSE:MTAL)

Number of Hedge Fund Holders: N/A

Average Upside Potential: 15.80%

Metals Acquisition Limited (NYSE:MTAL) is based in Saint Helier, Jersey, with a primary focus on operating and acquiring metals and mining businesses. One of its active operations includes the CSA copper mine located in Cobar, Australia. On October 17, 2023, Metals Acquisition Limited (NYSE:MTAL) announced that it is set to raise approximately $20 million through a private placement financing by selling 1.83 million ordinary shares at a price of $11 per share. The funds generated will be directed towards expediting exploration drilling and mine development at the CSA copper mine.

Like Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Freeport-McMoRan Inc. (NYSE:FCX), Metals Acquisition Limited (NYSE:MTAL) is one of the best copper stocks to buy.

10. Taseko Mines Limited (NYSE:TGB)

Number of Hedge Fund Holders: 7

Average Upside Potential: 23.33%

Taseko Mines Limited (NYSE:TGB), a Canadian mining company established in 1966 and headquartered in Vancouver, is engaged in the acquisition, development, and operation of mineral properties. The company explores for various minerals including copper, molybdenum, gold, niobium, and silver. Taseko Mines Limited (NYSE:TGB) is one of the best copper stocks.

On January 16, Taseko Mines Limited (NYSE:TGB) entered into a $50 million royalty sale agreement with Taurus Mining Royalty Fund, involving 1.95% of the gross revenue from copper sales at its Florence copper project in Arizona. The anticipated proceeds, scheduled for receipt in February, will be used to expedite construction activities at the Florence site, which has so far concentrated on site preparations, earthworks, and civil work for the commercial wellfield.

According to Insider Monkey’s fourth quarter database, 7 hedge funds were long Taseko Mines Limited (NYSE:TGB), compared to 5 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the largest stakeholder of the company, with 4.60 million shares worth $6.4 million.

Diamond Hill Capital made the following comment about Taseko Mines Limited (NYSE:TGB) in its Q4 2022 investor letter:

“We have held Canada-based copper miner Taseko Mines Limited (NYSE:TGB) for its attractive positioning as one of the only small copper miners operating in the US. The combination of low inventories relative to historical levels and still-low copper prices allows Taseko to capitalize on rising copper prices —as they did in Q4. The public comment period for Taseko’s second active mine in Florence, Arizona, also ended successfully in October, and the business capped off the year by announcing an attractive development partnership for Florence, bringing clarity for investors.”

9. Ero Copper Corp. (NYSE:ERO)

Number of Hedge Fund Holders: 10

Average Upside Potential: 9.59%

Ero Copper Corp. (NYSE:ERO) ranks 9th on our list of the best copper stocks. Ero Copper Corp. (NYSE:ERO), based in Vancouver, Canada, is involved in exploring, developing, and producing mining projects in Brazil. The company primarily focuses on the production and sale of copper concentrate, along with gold and silver by-products.

On November 6, 2023, Ero Copper Corp. (NYSE:ERO) disclosed a deal where underwriters committed to purchasing 8.51 million common shares at $12.35 per share, resulting in gross proceeds of $105 million. Additionally, the underwriters have an option to acquire up to 15% more of the offering. Ero Copper Corp. (NYSE:ERO) intends to utilize the funds to advance growth initiatives at its Tucuma project and Caraíba operations, support regional exploration programs, and cover general corporate and working capital needs. The company anticipates that the Tucuma project in Brazil will contribute 326,000 metric tons of recovered copper over an initial mine life of 12 years, while its Caraíba operations produced 46,371 metric tons of copper concentrate in 2022.

According to Insider Monkey’s fourth quarter database, 10 hedge funds were bullish on Ero Copper Corp. (NYSE:ERO), compared to 7 funds in the last quarter. Thomas E. Claugus’ GMT Capital is the largest stakeholder of the company, with 7.75 million shares worth over $123 million.

8. Ivanhoe Electric Inc. (NYSE:IE)

Number of Hedge Fund Holders: 15

Average Upside Potential: 95.57%

Ivanhoe Electric Inc. (NYSE:IE) is a Canadian company based in Vancouver. The company specializes in the exploration and development of metals and minerals, with a focus on copper and gold. It offers the Typhoon data acquisition system, a geophysical system known for providing primary signals in its exploration activities. Ivanhoe Electric Inc. (NYSE:IE) is one of the best copper stocks to buy.

On October 17, 2023, J.P. Morgan assigned an Overweight rating and a price target of $24 to Ivanhoe Electric Inc. (NYSE:IE). JPM stated that Ivanhoe Electric's valuable Santa Cruz asset, combined with its exclusive exploration technologies, offers a potential pathway to copper production by the end of this decade.

According to Insider Monkey’s fourth quarter database, 15 hedge funds were bullish on Ivanhoe Electric Inc. (NYSE:IE), compared to 12 funds in the prior quarter.

7. Hudbay Minerals Inc. (NYSE:HBM)

Number of Hedge Fund Holders: 26

Average Upside Potential: 27.14%

Hudbay Minerals Inc. (NYSE:HBM), a diversified mining company based in Toronto, Canada, focuses on exploring, developing, operating, and optimizing properties in North and South America. The company produces copper concentrates containing copper, gold, and silver, as well as zinc concentrates, zinc metal, gold and silver doré, and molybdenum concentrates. It is one of the best copper stocks to invest in.

On February 23, Hudbay Minerals Inc. (NYSE:HBM) reported a Q4 non-GAAP EPS of $0.20 and a revenue of $602.2 million, outperforming Wall Street estimates by $0.08 and $57.63 million, respectively. In the fourth quarter of 2023, there was robust consolidated copper production of 45,450 tonnes and record-setting consolidated gold production reaching 112,776 ounces. This performance was driven by sustained elevated grades at the Pampacancha deposit in Peru, the Lalor mine in Manitoba, and the added contributions from the recently acquired Copper Mountain mine in British Columbia.

According to Insider Monkey’s fourth quarter database, 26 hedge funds were long Hudbay Minerals Inc. (NYSE:HBM), compared to 29 funds in the earlier quarter. GMT Capital is the biggest stakeholder of the company, with 42 million shares worth $232.6 million.

6. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 34

Average Upside Potential: 20.49%

Rio Tinto Group (NYSE:RIO) is engaged in the exploration, mining, and processing of mineral resources. It operates through Iron Ore, Aluminium, Copper, and Minerals segments. On February 21, Rio Tinto Group (NYSE:RIO) declared a $2.58 per share final dividend, bringing the total annual dividend to $4.35 per share. The dividend is payable on April 18, to shareholders on record as of March 8.

According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Rio Tinto Group (NYSE:RIO), compared to 27 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 16 million shares worth $1.19 billion.

In addition to Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Freeport-McMoRan Inc. (NYSE:FCX), Rio Tinto Group (NYSE:RIO) is one of the best copper stocks, ranking 6th on our list.

HL International Equity Strategy made the following comment about Rio Tinto Group (NYSE:RIO) in its first quarter 2023 investor letter:

“In terms of geographical performance, the eurozone emerged as the top-performing region, and our stocks did better still, fueled by the strong performance of Infineon, L’Oréal, and Schneider Electric. EMs, which lagged the index, were boosted by the improving outlook for semiconductor companies TSMC and Samsung. Mexico’s FEMSA also contributed strongly to relative returns. Europe ex EMU was the weakest region primarily due to the underperformance of SE Banken and UK miner Rio Tinto Group (NYSE:RIO). The latter was affected by concerns over softer iron ore pricing in the current year, another reflection of manufacturing weakness in steelmaking giant China.”

Click to continue reading and see 5 Best Copper Stocks To Invest In According To Analysts.

Most Read from Bloomberg

That’s a blow for what has long been one the country’s biggest export industries and is another setback for South Africa’s ruling African National Congress ahead of key elections later this year. The potential cuts impact about 17% of the workforce at the company known as Amplats, plus more than 600 firms whose contracts with the miner are to be reviewed.

In December, the company’s parent Anglo American Plc warned that returns for miners of platinum-group metals were at the lowest level in 30 years. Despite taking steps last year to reposition the business, Amplats Chief Executive Officer Craig Miller said it’s clear they don’t go far enough.

“It is apparent that further measures to create critical resilience and greater competitiveness are needed to sustain the business,” Miller said in a statement Monday. “These actions are necessary to enable the continued employment of thousands of workers and contractors.”

Acting Chief Financial Officer Sayurie Naidoo said Amplats is targeting annual savings of 5 billion rand ($263 million).

Read More: Anglo American Plunges as It Slashes Production to Cut Costs

The price of PGMs — used to curb emissions from gasoline and diesel vehicles — has nosedived since the start of last year due to auto industry destocking and a subdued global economy.

That’s a rapid reversal of fortunes for Amplats and its Johannesburg-based peers. Just two years ago, the firms were declaring bumper earnings as automaker demand pushed the price of rhodium and palladium – metals produced alongside platinum – to record levels.

“The outlook for automotive demand is likely to be flat,” so “prices will probably hover around current levels” this year, Miller said in an interview.

Amplats said profit tumbled 73% to 13 billion rand last year, from 49.2 billion rand in 2022. The company slashed its dividend by 81% to 21.30 rand per share. The miner’s shares steadied in Johannesburg trading, after falling 24% this year.

Read More: Anglo Consults South Africa as It Weighs Platinum, Iron Job Cuts

Impala Platinum Holdings Ltd. and Northam Platinum Holdings Ltd. have also flagged a slump in earnings, with the former offering voluntary redundancies. Four month ago, Sibanye Stillwater Ltd. said it was entering talks with labor unions over a restructuring that could impact more than 4,000 workers at its platinum mines.

At Amplats, most of the jobs at risk are at the Amandelbult mine – where production fell 11% in 2023 – and in its processing division, which is due to mothball one of the firm’s smelters this year, according to Miller.

The job losses come just before a crucial election, which could see the ruling ANC lose its outright majority for the first time since the end of White-minority rule in 1994. South Africa’s unemployment rate, including people who were available for work but not looking for a job, stood at 41.2% in the quarter ended Sept. 30.

Amplats said the so-called section 189A process, which is a precursor for the restructuring, involves a consultation period with labor unions and affected employees and will be facilitated by the Commission for Conciliation, Mediation and Arbitration. Only when the consultation process is concluded will the final number of affected jobs be known, the company said.

Read More: Anglo CEO Says He Can Run Sprawling Miner Better Than Activist

(Updates with comment CFO in fifth paragraph and from CEO in 10th. An earlier version of this story corrected the number of jobs at risk in headline and first paragraph.)

Most Read from Bloomberg Businessweek

Stocks in Europe rode out Friday on a positive note, with the FTSE 100 rising as data showed UK shoppers returned to the high street in January. Stocks were lower across the pond on fresh inflation data.

By the end of the day, the FTSE 100 (^FTSE) had risen 1.5% led by miners Glencore (GLEN.L), Anglo American (AAL.L) and Antofagasta (ANTO.L).
Over in Europe, the DAX (^GDAXI) was 0.3% higher and the CAC (^GDAXI) rose 0.3%.
US indices fell on news that US wholesale inflation accelerated in January.
The S&P 500 (^GSPC) was slightly lower, the Dow (^DJI) fell 0.1% and the Nasdaq (^IXIC) fell 0.1%, having started the day in the green.
The US producer price index rose 0.3% from December to January. It fell 0.1% from November to December. Measured year over year, producer prices rose by a mild 0.9% in January.
The moves higher in Europe follow data from the ONS which showed UK retail sales staged a strong recovery in January. It was a particularly strong month for supermarkets, and a fall in gas prices meant stronger sales at the pump.
On Thursday, data showed the UK had fallen into a recession — two consecutive quarters of negative growth — in the third quarter. Strong retail sales might suggest the gloomy data on that front will be short-lived.

Follow for live updates throughout the day:

LIVE COVERAGE IS OVER9 updates

Fri, February 16, 2024 at 11:35 AM ESTLucy Harley-McKeownThat’s all from me
Thanks for reading — head over to our US site for more market moving stories.
Fri, February 16, 2024 at 6:29 AM ESTLucy Harley-McKeownAnd here’s a chart
Fri, February 16, 2024 at 6:27 AM ESTLucy Harley-McKeownMiners on the up
Miners are leading the FTSE 100 higher this morning with gains from Glencore (GLEN.L), Anglo American (AAL.L) and Antofagasta (ANTO.L).

Susannah Streeter from Hargreaves Lansdown has some commentary on this:

‘’Copper prices have lifted away from three-month lows after the dollar dipped back. This was prompted by more sluggish retail sales figures indicating interest rate cuts could be closer on the horizon.

A weaker dollar increases the purchasing power of large consumers of imported commodities likes copper, and that is expected to push up demand, benefitting mining companies with large copper production operations. However, the downbeat outlook for China is limiting gains.’’
Fri, February 16, 2024 at 4:40 AM ESTLucy Harley-McKeownFull take on NatWest
Here’s Yahoo Finance UK’s full take on NatWest: NatWest shares jump on biggest profit since 2007
Fri, February 16, 2024 at 4:01 AM ESTLucy Harley-McKeownNatwest beats on profit as it confirms a new CEO
Natwest (NWG.L) saw its pre-tax profits soar last year, off the back of high interest rates. It also confirmed caretaker CEO Paul Thwaite for the top job.

Shares were around 2.6% higher by mid-morning as the lender said bumper profits came due to an increased yield from loans and mortgages compared with payouts. The Bank of England has held interest rates at 5.25% as it tries to stabilise the economy. Natwest’s net interest income was up 12% to £11bn.

More on that later…
Fri, February 16, 2024 at 3:49 AM ESTLucy Harley-McKeownIn UK politics…
If you’ve been keeping an eye on British politics you might have known there were two by-elections yesterday. Results, which came in overnight, spelt bad news for PM Rishi Sunak as both Wellingborough and Kingswood swung to Labour.

Both by-elections had turnouts of less than 40%.

Politico’s morning newsletter Playbook had an interesting take on Reform UK’s polling: “Its 13 percent in Wellingborough and 10.4 percent in Kingswood mark the first time the start-up party’s national poll rating has been made flesh, in a truly ominous sign for the Tories’ electoral prospects.”
Fri, February 16, 2024 at 3:27 AM ESTLucy Harley-McKeownUS stocks
Shrugging off the aforementioned retail sales data, there was also a sunny mood among the major US indexes. The S&P 500 (^GSPC) finished Thursday 0.6% higher, the Dow (^DJI) was up 0.9% and the Nasdaq (^IXIC) rose 0.3%.

Here’s our US team’s take:

Stocks have put an early-week rout in the rearview mirror, recouping all of the steep losses booked on Tuesday after a hot inflation print dented hopes for interest rate cuts. Comments from Federal Reserve policymakers playing down the data helped soothe nerves.

But investors are still wondering whether the rout was a one-off, with some seasonal weakness playing a part, or the start of a bigger pullback. Many Wall Street strategists have pointed out that there were signs of resilience even as stocks tumbled.
Fri, February 16, 2024 at 3:23 AM ESTLucy Harley-McKeownOvernight in Asia
Asian stocks clocked strong gains overnight on Friday, with Hong Kong’s Hang Seng (^HSI) up 2.5% by the close, the SSE Composite (000001.SS) rising 1.3% and Japan’s Nikkei (^N225) ending the week 0.9% higher.

The moves higher came after the retail sales data released in the US revealed shoppers leaving the high street in January. The measure fell by the most in 10 months somewhat alleviating stress caused by the hotter-than-expected inflation report earlier in the week.
Fri, February 16, 2024 at 3:06 AM ESTLucy Harley-McKeownGood morning!
Hello from London, it’s been a big week of news for markets — with the UK slipping into a recession and inflation staying put, and dampened hopes of a rate cut any time soon. I’ve got a coffee in hand, so let’s get to it.

Watch: PM suffers double blow as Labour wins Kingswood and Wellingborough by-elections

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

This article will list the 26 Largest Mining Companies by Market cap. If you want to skip our overview of the mining sector, got to 5 Largest Mining Companies by Market cap.

In the dynamic realm of global resource extraction, the landscape is defined by the prowess of mining companies that play a pivotal role in meeting the world's insatiable demand for minerals and metals. This article delves into the financial echelons of the industry, exploring the 26 largest mining companies by Market cap. As economic engines and key contributors to various sectors, these companies wield considerable influence, shaping not only the landscape of mining but also impacting broader economic trends and sustainability initiatives.

Against a backdrop of geopolitical and market uncertainties, the mining industry has showcased resilience and adaptability, with major companies demonstrating commendable stability in the face of challenges. According to The Business research company, the year 2023 witnessed a rollercoaster of fortunes within the sector, as companies navigated through volatile conditions, experiencing both gains and losses in what felt like mere days. Despite this turbulence, the mining market is poised for expansion, reflecting a robust trajectory. Projections indicate a steady climb, with the market size expected to increase from $2138.73 billion in 2023 to $2276.8 billion in 2024, boasting a compound annual growth rate (CAGR) of 6.5%. Looking ahead, the industry is anticipated to maintain its upward trajectory, reaching $2825.81 billion in 2028 at a CAGR of 5.5%, underscoring the resilience and growth potential inherent in the mining sector.

Amidst the global shift towards renewable energy and the move away from traditional fossil fuels, there has been a notable increase in the need for essential minerals such as lithium, copper, and cobalt. These minerals have become crucial components in the renewable energy sector, particularly in the manufacturing of lithium-ion batteries. Lithium, often referred to as the "new white gold," is highly valued for its high energy density and extended lifespan within these batteries. The worldwide push towards electric vehicle (EV) adoption, driven by the imperative to reduce carbon emissions, has thrust lithium into prominence. According to forecasts by the International Energy Agency, demand for lithium is expected to surge more than 40 times between 2020 and 2040, primarily driven by EVs and battery storage requirements. Similarly, cobalt, another essential element in lithium-ion batteries, is prized for its ability to enhance battery durability and capacity, underscoring the critical role of these minerals in advancing the clean energy transition.

Now let's take a look at the 26 Largest Mining Companies by Market cap, that are dominating this industry.

26 Largest Mining Companies by Market cap

Drills extracting gold from a gold mine, revealing the company's gold mining operation.

Methodology

In compiling this article, we've curated a list of the world's biggest mining companies, shortlisting them based on their market capitalization as of the time of writing. These industry leaders have demonstrated exceptional financial strength and market presence, reflecting their integral roles in the dynamic and evolving landscape of global resource extraction. Let’s delve into the profiles of these companies to gain valuable insights into their market dynamics, strategic initiatives, and contributions to the mining sector's growth and sustainability.

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

26 Largest Mining Companies by Market cap26. The Mosaic Company (NYSE:MOS)

Market cap: $9.834B

The Mosaic Company (NYSE:MOS) is a leading producer of phosphate and potash crop nutrients. In the twelve months ending September 30, 2023, Mosaic Co. (NYSE:MOS) reported revenue of $15.03 billion, down -18.70% year-over-year. Revenue for the quarter ending September 30, 2023, was $3.55 billion, marking a -33.66% decrease year-over-year.

25. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Market cap: $11.566B

Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) is a producer of potassium nitrate, iodine, and lithium derivatives. It also manufactures specialty plant nutrients and industrial chemicals. In the third quarter of 2023, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) reported sales of USD 1,831.2 million, revenue of USD 1,840.3 million, and net income of USD 479.4 million, compared to USD 2,947.9 million, USD 2,958.3 million, and USD 1,099.9 million respectively, in the same period a year ago.

24. Gold Fields Limited (NYSE:GFI)

Market cap: $12.399B

Gold Fields Limited (NYSE:GFI) is a South Africa-based gold producer with nine operating mines across Australia, Peru, South Africa, and Ghana, including the Asanko JV, along with two projects in Canada and Chile. The company, Gold Fields Limited (NYSE:GFI), boasts a total attributable annual gold-equivalent production of approximately 2.40 million ounces (Moz), with gold mineral reserves totaling 46.1 Moz and gold mineral resources of 42.3 Moz (excluding mineral resources).

23. Albemarle (NYSE:ALB)

Market cap: $13.587B

Albemarle Corp. (NYSE:ALB) is a specialty company focused on developing, manufacturing, and marketing chemicals for various industries such as consumer electronics, petroleum refining, utilities, packaging, construction, transportation, pharmaceuticals, crop production, food safety, and custom chemistry services. The company operates through three segments: Lithium, Bromine Specialties, and Catalysts. The Lithium segment is involved in the development and manufacturing of basic lithium compounds, while the Bromine Specialties segment focuses on bromine and bromine-based products used in fire safety solutions and other specialty chemical applications. In 2023, Albemarle Corp. (NYSE:ALB) reported a revenue of $8.8 billion.

22. Cameco Corporation (NYSE:CCJ)

Market cap: $19.414B

Cameco Corporation (NYSE:CCJ) supplies uranium for electricity generation, operating through Uranium, Fuel Services, and Westinghouse segments. The Uranium segment engages in exploration, mining, milling, purchase, and sale of uranium concentrate. Cameco (NYSE:CCJ) reported revenue of 2.27 billion CAD for the twelve months ending September 30, 2023, marking a 25.37% year-over-year growth. In the quarter ending September 30, 2023, revenue reached 575.08 million CAD, reflecting a significant 47.96% year-over-year growth.

21. Teck Resources Limited (NYSE:TECK)

Market cap: $19.719B

Teck Resources Limited (NYSE: TECK), a Canadian mining company operating in North and South America, focuses on copper, zinc, steelmaking coal, and energy. In Q3 2023, its adjusted EBITDA reached $1.2 billion, driven by robust copper and steelmaking coal prices, alongside increased base metals sales. However, steelmaking coal sales totaled 5.2 million tonnes, below the company's forecast of 5.6 to 6.0 million tonnes. Teck Resources (NYSE: TECK) emphasizes restructuring as a top priority following an underwhelming Q3 performance.

20. Antofagasta Plc (LSE:ANTO.L)

Market cap: $20.543B

Antofagasta Plc is a holding company, which engages in copper mining, transport, and water distribution businesses. In 2023, Chilean miner Antofagasta Plc applied for an environmental permit to extend operations at its Zaldivar copper mine through 2051, with a planned investment of $1.2 billion. The company aims to prolong operations by 26 years, followed by a mine closure plan projected to last until 2054.

19. Wheaton Precious Metals Corp. (NYSE:WPM)

Market cap: $20.777B

Wheaton Precious Metals (NYSE:WPM), based in Vancouver, Canada, is a top-tier mining company globally. It operates key mines such as Salobo in Brazil, Antamina in Peru, and Penasquito in Mexico. In Q3 2023, Wheaton Precious Metals (NYSE:WPM) reported revenues of $223 million, with 65% from gold, 32% from silver, 2% from palladium, and 1% from cobalt. Moreover, operating cash flow reached $171 million, with net earnings of $116 million, while the production for the quarter totalled 4.83 gold equivalent tons, marking a 1.2% increase from Q3 2022.

18. Franco-Nevada Corporation (NYSE:FNV)

Market cap: $20.91B

One of the largest mining companies by market cap, Franco-Nevada Corporation (NYSE:FNV) is a Canada-based gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets. The Company's business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada Corporation (NYSE:FNV) reported strong third-quarter results on Nov. 8, surpassing analyst expectations. It posted a net income of $175.1 million, and declared a quarterly dividend of 34 cents per share. Furthermore, revenue for the quarter was $309.5 million, up 1.7% year-over-year.

17. Agnico Eagle Mines Limited (NYSE:AEM)

Market cap: $23.382B

Agnico Eagle Mines Limited (NYSE: AEM) is one of the biggest players in the mining industry. It is indeed a prominent player in the mining industry, particularly in the field of gold mining. Founded in 1957, the company has established itself as a leader with operations spanning across Canada, Finland, and Mexico. As of the twelve months ending September 30, 2023, Agnico Eagle Mines (NYSE:AEM) reported a revenue of $6.255 billion. This figure represents a significant increase of 17.84% compared to the previous year, indicating robust growth in the company's operations. It owns two major mines in North America: Canadian Malartic and Detour Lake. These mines collectively contribute around 1.2 million ounces of gold annually to the company's production output. Moreover, within the Canadian Malartic complex, the Odyssey mine is anticipated to become Canada's largest underground gold mine, consolidating Agnico Eagle Mines' position as a leader in the sector.

16. Nutrien Ltd. (NYSE:NTR)

Market cap: $24.287B

Nutrien (NYSE:NTR), headquartered in Saskatoon, Canada, is a leading fertilizer company globally. It dominates potash production worldwide and is among the top-three producers of nitrogen fertilizer, with 2,000+ retail outlets across North America, South America, and Australia.

In terms of financial performance, Nutrien (NYSE:NTR) reported revenue of $30.93 billion USD for the twelve months ending September 30, 2023. However, this figure reflects a notable decline of -17.79% year-over-year. Similarly, the company's revenue for the quarter ending September 30, 2023, stood at $5.63 billion USD, marking a substantial decrease of -31.23% compared to the previous year.

Regarding corporate developments, there were discussions about a potential acquisition of Nutrien by BHP, a major mining company. However, it appears that these plans have been put on hold or abandoned for the time being.

15. Posco Holdings Inc (NYSE:PKX)

Market cap: $25.851B

Posco Holdings Inc (NYSE:PKX), formerly Pohang Iron and Steel Company, is a leading South Korean conglomerate primarily focused on steel production. It operates world-class steel mills in Pohang and Gwangyang.

In 2023, the Posco's (NYSE:PKX) earnings nearly halved from the previous year, with net profit at 1.83 trillion won ($1.37 billion), down 48.5%. Sales declined 9% to 77.13 trillion won, while operating income fell 27.2% to 3.53 trillion won. The decline is attributed to lower steel prices globally and domestically, along with sluggish performance in its future materials division.

14. Anglo American plc (LSE:AAL.L)

Market cap: $29.39B

Anglo American plc, a London-based multinational mining corporation, is a key player in diamond extraction, copper, platinum group metals (PGMs), iron ore, coal, and nickel. Notable operations include the Minas-Rio iron ore mine in Brazil, the Los Bronces and Collahuasi copper mines in Chile, and the Mogalakwena and Amandelbult PGM mines in South Africa.

In Q3 2023, Anglo American reported a 42% increase in copper production, driven by higher output from the Quellaveco mine in Peru. Despite mining challenges at the Mogalakwena site, Platinum Group Metals production remained stable. However, iron ore production decreased by 4% due to scheduled maintenance at the Minas-Rio plant. The company's diverse portfolio and global presence highlight its resilience in the mining industry.

13. Barrick Gold Corporation (NYSE:GOLD)

Market cap: $26.01B

Barrick Gold Corporation (NYSE:GOLD), headquartered in Canada, holds a prominent position as a global gold mining company and stands among the leading gold producers worldwide, with a strong focus on production.

In the third quarter of 2023, the company reported robust financial performance, with net earnings reaching $368 million. Furthermore, Barrick Gold (NYSE:GOLD) demonstrated an increase in gold production, reaching 32.4 tons, compared to 31.5 tons in the same quarter of 2022.

This consistent growth in production and solid financial results underscore Barrick Gold's significant presence and success in the dynamic and competitive gold mining industry.

12. Newmont Corporation (NYSE:NEM)

Market cap: $38.424B

Newmont Corp. (NYSE:NEM) stands as a prominent gold producer, primarily focused on gold production. The company operates across various geographical segments, including North America, South America, Australia, and Africa.

For the year 2023, Newmont Corp (NEM:NYSE). reported a revenue of $11.6 billion and possesses assets valued at $38.4 billion. This financial performance underscores Newmont's substantial presence and contributions in the global gold production sector.

11. Amman Mineral Internasional Tbk (Jakarta:AMMN.JK)

Market cap: $35.02B

Amman Mineral International is one of the largest mining companies in the world. In 2023, the shares of Amman Mineral International, the Indonesian company, experienced a remarkable surge of 269% since its debut in Jakarta in July, culminating in a market capitalization exceeding $30 billion by the end of the year.

Amman Mineral Internasional Tbk achieved a significant milestone on July 7 by successfully raising 10.73 trillion rupiah, equivalent to $714.38 million, through its initial public offering (IPO). This IPO stands as the largest in Indonesia for the year, marking a substantial financial achievement for the company.

The funds raised are earmarked for various projects, notably including the development of a $980 million copper smelter. This strategic allocation of resources positions Amman Mineral Internasional to advance key initiatives and bolster its presence in the mining and smelting sectors. ($1 = 15,020.0000 rupiah.)

10. Grupo México SAB de CV (MX:GMEXICOB)

Market cap: $38.991B

Grupo México SAB de CV is a major mining company specializing in copper extraction and processing, with operations in Mexico, Peru, and the US. It owns Buenavista del Cobre, one of the world's largest copper mines. Grupo México's mining division, GMexico Minería, also produces silver, gold, zinc, and lead.

In Q3 2023, the company reported revenues of $10.96 billion, reflecting a 17.1% increase from the same period in 2022.

9. Zijin Mining Group Limited (Shanghai:601899.SS)

Market cap: $44.547B

Zijin Mining Group Co., Ltd. operates as an exploration company, specializing in the exploration, mining, and smelting processing of various metal mineral resources, including gold, copper, and zinc. The company's business activities encompass the exploration or acquisition of mineral resources, mining development resources, and the smelting and processing stages to enhance the industrial chain.

Additionally, Zijin Mining is involved in technology research and construction, creating a synergy between mining and finance, trade, and logistics. Founded by Jing He Chen on July 15, 1986, the company is headquartered in Longyan, China.

In 2023, Zijin Mining Group reported a substantial revenue of $40.3 billion, underscoring its significant presence and operations in the exploration and mining sector.

8. Saudi Arabian Mining Co (Saudi:1211.SR)

Market cap: $49.42B

The Saudi Arabian Mining Company, commonly known as Ma'aden, stands as a significant state-owned enterprise contributing substantially to Saudi Arabia's thriving mining sector. Ma'aden's core operations revolve around the exploration and extraction of various minerals, including gold, phosphate, aluminium, and industrial minerals. Notable projects in its portfolio include the Mahd Ad Dahab and Bulghah gold mines, as well as the Al Jalamid phosphate mine.

Ma'aden extends its influence into the realm of aluminium production through its subsidiary, Ma'aden Aluminium. This subsidiary manages the Ras Al Khair Aluminium Smelter, a colossal integrated aluminium production complex recognized as one of the world's largest. In financial terms, Ma'aden has demonstrated robust performance, with a revenue trend indicating a notable 25% annual increase over three years. This growth significantly surpasses that of many pre-profit companies.

7. Freeport-McMoRan Inc (NYSE:FCX)

Market cap: $54.663B

Headquartered in Phoenix, Arizona, Freeport-McMoRan Inc (NYSE: FCX) specializes in the extraction of copper, gold, and molybdenum. The cornerstone of its operations is the Grasberg mine in Indonesia, renowned as one of the largest copper and gold mines on a global scale. In addition to its international presence, Freeport-McMoRan (NYSE: FCX) operates several significant mines in North America, notably the Morenci mine in Arizona, which harbors one of the largest copper reserves in the United States.

In the third quarter of 2023, the company achieved noteworthy production figures, extracting 1.1 billion pounds of copper, 16.62 tons of gold, and 20 million pounds of molybdenum. Reflecting this operational success, Freeport-McMoRan reported a revenue of $5.842 billion for the same period, exhibiting growth compared to the $5.003 billion revenue recorded in the third quarter of 2022.

6. Fortescue Metals (ASX:FMG.AX)

Market cap: $56.774B

Fortescue (ASX:FMG.AX), one of the largest Australian mining companies, is renowned for its focus on iron ore mining through its subsidiary, Fortescue Metals Group. In the fiscal year 2023, the company reported a substantial revenue of US$16.9 billion, accompanied by a profit margin of 28%, which experienced a decline from 36% in the previous fiscal year (FY 2022). This decrease in profit margin was primarily attributed to elevated expenses incurred during the period.

Earlier reports from Fortescue (ASX:FMG.AX) revealed that iron ore shipments reached 48.7 million metric tons in the quarter ending on December 31, contributing to a first-half total of 94.6 million tons – the second highest ever recorded. Additionally, Fortescue adjusted its fiscal 2024 shipments forecast for the Iron Bridge magnetite project. The company identified the need to address a leaking high-pressure water pipeline, incurring an additional estimated cost of $100 million. Despite these challenges, Fortescue remains a prominent player in the global mining industry, navigating operational complexities and contributing significantly to the iron ore market.

Click to continue reading and find out about 5 Largest Mining Companies by Market cap.

Most Read from Bloomberg

The world’s biggest miner, which is entering production of the crop nutrient to add exposure to population growth, has been searching for ways to speed up the Jansen project for more than a year as the long-term outlook for fertilizer prices improves.

The company said Tuesday that it was now going ahead with its so-called stage two expansion, even before the first phase of the mine is in production. BHP, which had already committed more than $10 billion to the project, said the second stage would cost another $4.9 billion.

Fertilizer prices surged after Russia’s invasion of Ukraine as soaring natural gas prices — a crucial feedstock — raised costs. Sanctions on Belarusian potash and moves by China to rein in shipments also tightened the market. While prices have come off their highs, companies like BHP expect the market to remain tight.

BHP finally approved construction of the Jansen mine in Saskatchewan, Canada, in 2021 after years of debate over the huge price tag. Jansen could operate for a century, and eventually grow to a scale that would rival the size of the company’s flagship Pilbara iron ore operations, BHP has said.

Jansen is expected to start production in 2026, producing just over 4 million tons a year. The phase two expansion will see that double to around 8.5 million tons a year, making it one of the world’s biggest fertilizer mines.

Most Read from Bloomberg Businessweek

(Bloomberg) — Vast heaps of crushed brown rock hem the Indian Ocean at Western Australia’s Parker Point port — each a stockpile of 200,000 tons of iron ore, ready to be poured into a procession of bulk carriers bound for Asia’s steel mills.

Most Read from Bloomberg

Rio Tinto Group, the world’s largest iron ore producer, shipped its first cargo of the steelmaking ingredient from this spot in 1966, at the dawn of a boom that minted billionaires and lifted the Australian economy, generating A$1.3 trillion ($820 billion) in earnings in the past two decades alone. Last year, iron ore shipments accounted for about 5% of the country’s gross domestic product.

But now China is cooling, while steel producers are under pressure to clean up a sector that accounts for at least 7% of global greenhouse gas emissions, a change that will require new methods and higher-quality raw materials. Much of the dry, dusty Pilbara region’s gargantuan resource base may no longer make the grade.

Rio, BHP Group Ltd. and Fortescue Metals Group Ltd. produce almost two-thirds of the world’s seaborne iron ore from Western Australia, and margins remain enviable. For the first time in a generation, though, the specter of disruption looms over mining’s most reliable profit generator.

“Australia’s ore industry is now at the start of a long-term structural decline,” said Tom Price, a London-based analyst at Liberum Capital Ltd. “It’s a fundamental shift that will resonate across the Australian economy.”

The first, and most urgent, question is China, which accounts for about 85% of Australia’s export earnings from iron ore.

Demand for steel in the second-biggest economy has plateaued and production is on track to peak before the end of the decade, dented by a years-long crisis in China’s property sector, which has typically consumed more than a third of the country’s steel output. While there’s some growth in smaller segments like manufacturing of electric cars and air conditioners, the economy is no longer building at breakneck speed, meaning the nation’s iron ore imports are forecast to decline. Impact is inevitable, even if other emerging nations make up for some of China’s lost appetite.

Still, the more intractable long-term challenge for the Pilbara’s giants may well be a green one.

At least 70% of steel is produced today using a process that’s been deployed in much the same way since the 14th century: metallurgical coal is heated to create coke, which is then used in a blast furnace to melt iron ore at temperatures of more than 1800C.

It’s an energy-intensive activity and one that produces about two tons of carbon dioxide for each ton of liquid steel, according to Rio.

Global demand for steel is still rising, and will climb by as much as a quarter through 2050, as India and developing economies across Asia industrialize — but investor, consumer and climate pressure on one of the dirtiest corners of industry is growing. Governments are acting too, with policies like the European Union’s carbon border adjustment mechanism, that penalizes carbon-heavy imports.

Read more: What It Would Take to Make Steelmaking Greener: QuickTake

The trouble for big diggers is that there are few attractive alternatives. Existing lower-emissions options include the use of electric arc furnaces — a method that doesn’t require coal and uses recycled steel scrap in place of iron ore. A shaft furnace route, deployed in about 5% of steel production, needs high grade pellets with low levels of impurities.

Among the most favored prospective solutions is to combine a renewables-powered electric furnace with direct reduced iron, a material produced by deploying natural gas to remove oxygen from premium ores. Eventually replacing the gas with green hydrogen — created using solar or wind energy — could dramatically cut steel emissions.

But Australia’s typical iron ore has a grade of between 56% and 62%, making it largely unsuitable for DRI production — or only with additional processing that could add as much as 25% to costs, according to Wood Mackenzie Ltd.

“The premium for higher grade material is going to increase significantly,” said David Cataford, chief executive officer of Champion Iron Ltd., a competitor to Australian producers which supplies higher-grade iron ore from Canada. “If you’re producing lower grade, we do feel it’s going to be more complicated in the medium-term.”

The biggest miners say they already produce the better stuff. Vale SA, which ships higher-quality raw material from Brazil and expects to command a green premium in future, is among those eager to forecast a world that favors richer ores. But higher-grade production — with an iron content of 66% or more — currently makes up only about 3% of global supply, so the race is on to crank up output from projects like the expansive (and expensive) Simandou development in Guinea, in which Rio is an investor.

“There’s an obvious shortage if demand ramps up during the course of decarbonization,” said Liu Yinghao, technical director at the low carbon metallurgy innovation center of China Baowu Steel Group Corp., one of the world’s top steelmakers.

The shortfall in higher grade iron ore could be as much as 200 million tons a year by 2050, Wood Mackenzie estimated in a report this month — a volume roughly equivalent to about a fifth of China’s current annual imports.

To plug the gap and hold on to their position in the market, Australia’s iron ore producers are experimenting with everything from microbes to straw, in a series of trials aimed at making their materials suitable for greener steelmaking. BHP is studying use of carbon capture technology at conventional steel mills and has a pilot with Hatch Ltd. to build an electric smelting furnace — a method that adds an additional process step and holds potential to utilize lower-grade raw material.

“If we can crack the code on the Pilbara ores, that is potentially a game changer,” Tania Archibald, chief executive for Australian steel products at BlueScope Steel Ltd. — among 40 entities collaborating with Rio — told an investor day last month.

Billionaire Andrew Forrest’s Fortescue, meanwhile, has begun production of small volumes of high-quality magnetite ore at its Iron Bridge project in the Pilbara, and has tested a coal-free electrolysis method to convert ore to green iron.

Forrest sees potential to go further than that intermediate step, and to use Australia’s advantages in renewable energy for a low-carbon revival of a domestic steelmaking sector that saw output peak a quarter of a century ago.

“Australia has got everything going for it to make its own steel,” Forrest said earlier this month in Perth, citing the country’s solar and wind resources, and potential to produce green hydrogen. “The policies right now channel against doing that — and encourage offshore production.”

Steelmakers are positioning for that shift, including South Korean giant Posco, which aims to develop new industrial facilities in Port Hedland, the Pilbara’s export hub.

Few changes come fast in mining. Australia’s iron ore incumbents say they have sufficient time to make the technology breakthroughs or strategy shifts they need to continue to prosper.

“The transition away from coal-based steel making is a reality, but it will take some time and there remain significant uncertainties,” said Simon Farry, Rio’s head of steel decarbonization.

After all, traditional blast furnaces in Asia are relatively new — on average about 12 years old in China, compared to more than 40 years across the mostly wealthy nations in the Organisation for Economic Co-operation and Development — and will operate for decades more, according to BHP’s Chief Economist Huw McKay. “The age of capital stocks is a critical factor in assessing the energy transition,” he told Bloomberg Television in an Oct. 24 interview. India will likely to prioritize the need for affordable steel from existing processes, he said.

But several markets are already adapting quickly, including Japan, South Korea, and — to a more limited extent — China, as Vale said in a written response to questions. Iron ore’s No. 2 supplier is adding output tailored to direct reduction in Brazil, and developing hubs in locations including Saudi Arabia, the United Arab Emirates and Oman to produce materials from as soon as 2027 for future green steelmaking.

Australia’s mining industry has been caught out before by the pace of change. Back in the early 2000s, it struggled to keep up with China’s accelerating iron ore consumption. Now, the risk is repeating the error at the other end of the economic and green cycle.

“The world is going to decarbonize,” Vale said. “If we don’t act quickly, we could miss this opportunity.”

–With assistance from Yee Xing Ng "Liz", Jacob Lorinc, Mariana Durao, Thomas Biesheuvel and James McIntyre.

Most Read from Bloomberg Businessweek

(Bloomberg) — Australia’s accelerating shift from coal-fired power to clean energy is stoking volatility in its power markets and raising concerns for large businesses, according to BHP Group Ltd., the country’s most valuable company.

Most Read from Bloomberg

The main National Electricity Market, which covers about 80% of Australia’s demand, is experiencing the largest fluctuations in daily electricity prices globally, driven by issues including unplanned outages of coal plants and the integration of rooftop solar, according to Rystad Energy.

“It’s a nervous time to be a major consumer of electricity on that particular grid,” Huw McKay, BHP chief economist, said Tuesday in an interview with Bloomberg Television.

Following its acquisition of OZ Minerals Ltd., BHP is seeking to lift copper output from mines in South Australia, and wary over the unpredictability in the state’s energy system as work continues on constructing an interconnector linking the region to neighboring New South Wales, according to McKay. “We are anticipating a period of heightened volatility,” he said.

Read More: BHP Sees Squeeze for Global Copper Markets Later This Decade

South Australia had the country’s highest wholesale electricity prices in the three months to Sept. 30, averaging A$92 ($58) per megawatt hour compared to a national figure of A$63 per megawatt hour, according to the Australian Energy Market Operator.

Most Read from Bloomberg Businessweek

Bitcoin (BTC-USD)

Bitcoin prices headed towards the $30,000 mark on Friday as the market was buoyed by optimism about the potential approval in the US of an exchange traded fund (ETF). This means the cryptocurrency was trading at its highest point since mid-August.

Earlier in the week it had briefly spiked to similar levels, after a false report inaccurately asserted that BlackRock's proposed spot bitcoin ETF had gained approval.

The report by Cointelegraph caused a surge in trading activity and volatility. While bitcoin pulled back after the report was debunked, it has still gained throughout the week.

Analysts view the false alarm at the beginning of the week as a dress rehearsal for what would occur if a spot bitcoin ETF were actually to be approved. In the past week, indications that the US Securities and Exchange Commission (SEC) will approve a spot bitcoin ETF have been increasing.

Tesla (TSLA)

Elon Musk brainchild Tesla looked set to open slightly lower again on Friday, after its stock lost more than 9% in the trading session before.

The electric vehicle maker missed on earnings, while Musk voiced concerns about the global economy, future of its Mexico Gigafactory, and a challenging Cybertruck ramp-up.

“We dug our own grave with Cybertruck,” Tesla CEO Elon Musk said during the company’s Q3 earnings call on Wednesday night. “Special products that come along once in a long while are just incredibly difficult to bring to market, to reach volume, to be prosperous. It's fundamental to the nature of the newness.”

Despite the company finally revealing a 30 November delivery date for the Cybertruck, Musk warned of “enormous challenges” in ramping up Cybertruck production and that volume production of 250,000 units would not be reached until 2025.

AT&T (T)

Telecoms giant AT&T saw its stock finish 6.6% higher on Thursday as it topped its third-quarter earnings expectations, raising its free cash flow guidance.

AT&T earnings for the September quarter fell 6% to 64 cents. Revenue from continuing operations climbed 1% to $30.35bn.

Analysts had projected AT&T earnings of 62 cents a share on revenue of $30.2bn, according to FactSet. A year earlier, AT&T earned 68 cents a share on revenue of $30bn from continuing operations.

Blackstone (BX)

Earnings news was less positive for Blackstone, which saw its stock drop around 7.9% after a miss on Thursday.

The company reported a 12% drop in quarterly profit, as high interest rates continue to take their toll on financial services.

Distributable earnings, which represents the cash available to pay dividends to shareholders, fell to $1.2bn in the quarter, from $1.4bn a year earlier. That translated to distributable earnings per share of 94 cents, which missed the average analyst estimate of $1.01, according to LSEG data.

Watch: Crypto ETFs: How Europe is paving the way for the US

Stock pickers are generally looking for stocks that will outperform the broader market. And in our experience, buying the right stocks can give your wealth a significant boost. To wit, the Anglo American share price has climbed 37% in five years, easily topping the market decline of 0.3% (ignoring dividends).

Since the stock has added UK£1.6b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Anglo American

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Anglo American's earnings per share are down 6.4% per year, despite strong share price performance over five years.

Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.

We note that the dividend is higher than it was previously – always nice to see. Maybe dividend investors have helped support the share price. The revenue growth of about 7.2% per year might also encourage buyers.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Anglo American is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Anglo American, it has a TSR of 82% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Investors in Anglo American had a tough year, with a total loss of 11% (including dividends), against a market gain of about 9.5%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 13% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 3 warning signs for Anglo American that you should be aware of before investing here.

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

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

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

(Bloomberg) — BHP Group Ltd. said it agreed to sell two Australian coking coal operations to Whitehaven Coal Ltd. as the world’s biggest miner extends its withdrawal from fossil fuels.

Most Read from Bloomberg

Whitehaven has been selected as the preferred bidder in the divestment process, BHP said in its quarterly production report released Wednesday. Spokespeople for the companies declined to offer further details on the size of the sale.

Read More: BHP’s Iron Ore Output Falls 4% as It Confirms Coal Mine Sale

BHP co-owns the mines, which supply metallurgical coal to steelmakers in markets including China and India, in a 50:50 joint venture with Mitsubishi Corp., and its stakes are worth about $4.2 billion, according to Liberum Capital Ltd. The bidding process for the two mines drew competition from rivals including Indonesia-based mining contractor Bukit Makmur Mandiri Utama PT, Stanmore Resources Ltd. and Peabody Energy Corp.

Since 2021, BHP has announced sales of coal, oil and gas assets in locations including Australia, the US and Colombia under Chief Executive Officer Mike Henry’s strategy to refocus the producer’s portfolio on materials tied to growth in renewable energy, electric vehicles and agriculture. The Melbourne-based company this year completed its biggest deal in more than a decade to add OZ Minerals Ltd. and boost volumes of copper, a key transition metal.

Henry has also focused on shedding costlier mines and argues BHP should only retain its highest-quality metallurgical coal operations which can potentially help customers limit some emissions in the steelmaking process. Royalties on output imposed by Queensland’s government mean the coal mines are unlikely to win major investment in the future, he previously said.

BHP will be the No. 3 supplier of the material after completing the sales and could seek to exit its stakes in remaining assets, Liberum Capital said in a Sept. 20 note.

Read more: BHP Plans to Keep Remaining Coal After Completing Mine Sales

The producer has no current plans to consider sales of other Queensland coking coal operations, Chief Development Officer Johan van Jaarsveld said Oct. 5 in Melbourne.

Shares of BHP rose as much as 0.5% in Sydney on Wednesday, before trading little changed at A$45.59 apiece as at 10:31 a.m. local time. Whitehaven’s shares were halted from trading.

The sale announcement comes as BHP said iron ore production from Western Australia fell 4% in the three months to Sept. 30 from the year-before period. Still, it reaffirmed its total output forecast of the steelmaking material for the full-year that started July 1 at between 282 million to 294 million tons. It also said copper output rose 11% in its first quarter, while metallurgical coal fell 16%.

BHP and closest rival Rio Tinto Group are among the top commodity exporters being closely watched for insight on the economic slowdown in China that’s causing ripple effects across the global economy. The biggest metals-consuming nation’s disappointing post-pandemic recovery and persistent property woes have put downward pressure on steel demand and iron ore prices this year.

(Updates with details of quarterly production output in eighth, ninth paragraphs)

Most Read from Bloomberg Businessweek

Key Insights

BHP Group's estimated fair value is AU$60.35 based on 2 Stage Free Cash Flow to Equity
BHP Group's AU$44.25 share price signals that it might be 27% undervalued
The US$45.30 analyst price target for BHP is 25% less than our estimate of fair value

In this article we are going to estimate the intrinsic value of BHP Group Limited (ASX:BHP) by projecting its future cash flows and then discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!

Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

See our latest analysis for BHP Group

What's The Estimated Valuation?

We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:

10-year free cash flow (FCF) forecast

	2024	2025	2026	2027	2028	2029	2030	2031	2032	2033
Levered FCF ($, Millions)	US$9.77b	US$10.1b	US$9.87b	US$13.0b	US$13.3b	US$13.5b	US$13.8b	US$14.1b	US$14.4b	US$14.7b
Growth Rate Estimate Source	Analyst x11	Analyst x11	Analyst x9	Analyst x2	Analyst x2	Est @ 2.03%	Est @ 2.03%	Est @ 2.02%	Est @ 2.02%	Est @ 2.02%
Present Value ($, Millions) Discounted @ 8.0%	US$9.0k	US$8.7k	US$7.8k	US$9.5k	US$9.0k	US$8.5k	US$8.0k	US$7.6k	US$7.2k	US$6.8k

("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$82b

We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.0%.

Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$15b× (1 + 2.0%) ÷ (8.0%– 2.0%) = US$249b

Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$249b÷ ( 1 + 8.0%)10= US$115b

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$197b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of AU$44.3, the company appears a touch undervalued at a 27% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.

Important Assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at BHP Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.0%, which is based on a levered beta of 1.202. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

SWOT Analysis for BHP Group

Strength

Debt is not viewed as a risk.

Dividends are covered by earnings and cash flows.

Weakness

Earnings declined over the past year.

Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market.

Opportunity

Good value based on P/E ratio and estimated fair value.

Threat

Annual earnings are forecast to decline for the next 3 years.

Moving On:

Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value higher than the current share price? For BHP Group, there are three pertinent elements you should further research:

Risks: For example, we've discovered 2 warning signs for BHP Group (1 is concerning!) that you should be aware of before investing here.

Future Earnings: How does BHP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here.

Key Insights

Given the large stake in the stock by institutions, Anglo American's stock price might be vulnerable to their trading decisions
A total of 20 investors have a majority stake in the company with 51% ownership
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Anglo American plc (LON:AAL) should be aware of the most powerful shareholder groups. With 66% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

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

See our latest analysis for Anglo American

What Does The Institutional Ownership Tell Us About Anglo American?

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

We can see that Anglo American does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Anglo American, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Anglo American. Our data shows that BlackRock, Inc. is the largest shareholder with 8.5% of shares outstanding. For context, the second largest shareholder holds about 7.3% of the shares outstanding, followed by an ownership of 4.4% by the third-largest shareholder.

After doing some more digging, we found that the top 20 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Anglo American

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Anglo American plc in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own UK£38m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 15% stake in Anglo American. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 10.0%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Anglo American is showing 3 warning signs in our investment analysis , you should know about…

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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

In this piece, we will take a look at the ten best aluminum and aluminum mining stocks to buy. If you want to skip our introduction to the aluminum industry, then check out 5 Best Aluminum and Aluminum Mining Stocks To Buy.

Aluminum is one of the most important metals in the world especially due to its unique properties that place it somewhere in between a metal and a non metal. This is because while aluminum has a high melting point which makes it suitable for use in a variety of cases, the metal is not the best conductor of electricity. Aluminum is also quite resistant to corrosion in most conditions, which makes it a durable choice for building structures that require both robustness and less weight such as airplanes. Additionally, aluminum isn't toxic either which makes it suitable for packaging edibles.

Looking at the global aluminum market as a whole, it was estimated to be worth $159 billion by the end of 2021 and $255 billion in the following year. From then until 2029, the industry is expected to grow at a compounded annual growth rate (CAGR) of 6.1% by the end of 2029 to be worth $255 billion by the end of the forecast period. The global aluminum industry, like other sectors, was disrupted during the coronavirus pandemic as large scale industry and manufacturing shut downs reduced the demand for the metal. A key benefit of aluminum is that the metal does not lose strength or consistency after recycling, which makes it quite suitable for use cases such as soft drink cans. Additionally, a key drive of global aluminum demand is expected to come from the automobile industry, due to the metal's light weight and strength – advantages that we have mentioned above.

Shifting gears to take a look at aluminum prices, there are several indexes that track the commodity. Aluminum prices typically correlate with the economy, since more construction and industrial production incentivize producers to expand their mining activities and produce more. There are different grades of aluminum and their prices often vary by quite a bit. For example, earlier this year when the London Metals Exchange (LME) decided to continue allowing Russian aluminum to be listed, prices of European 5083 aluminum were around $5,000 a metric ton while prices for Chinese aluminum stood at roughly $2,600.

We've taken a detailed look at the global aluminum production roadmap as part of our coverage of the 15 Largest Aluminum Producing Countries In The World. This data shows that there wasn't a single European country in the top five largest aluminum producers, and Chinese aluminum smelter output of 40 metric tons as of 2022 end was greater than the next 14 countries on the list. Therefore, it's natural for the prices to be low, as greater supplies often mean aluminum producers are able to spread costs across a large number of operational units. Global aluminum consumption stood at a strong 65.78 million tons last year, and it is projected to 78 million tons by 2029. Aluminum production requires investment as well, since as opposed to crude oil where the mined product is simply shipped to a refinery, aluminum is not available in its pure form. Instead, the metal is mined by digging up bauxite from roughly 15 meters below the Earth's surface.

Moving towards the corporate side of the industry, few standalone companies operate aluminum mines. Instead, large mining giants such as Rio Tinto Group (NYSE:RIO) typically produce the metal along with other mined products. However, since the market is unsaturated, firms that choose to exclusively focus on aluminum production often see greater cost savings and an enviable control of market share. One such example in the aluminum industry is the American firm Alcoa Corporation (NYSE:AA). Alcoa is one of the oldest companies in the world, which was set up more than a hundred years back in 1886. Its revenue for the four latest quarters sits at $11 billion, but intensely high production costs force the gross margin down to just 6.7%. So, for every $1,000 of aluminum that Alcoa mines, the firm is able to profit from just $67 of product. Its earnings performance has also fluttered recently, as out of the four latest quarters, the firm has beaten analyst EPS estimates in only two. Other pureplay aluminum companies are Kaiser Aluminum Corporation (NASDAQ:KALU) and Constellium SE (NYSE:CSTM).

As for the current state of aluminum business operations, here's what the management of Constellium SE (NYSE:CSTM) had to say during the firm's latest quarterly earnings call:

After a strong first quarter performance, our recordable case rate declined in the second quarter, leading to a rate of 1.9 per million hours worked for the first half of the year. This is a humbling reminder that while we always strive to deliver best-in-class safety performance, we need to constantly maintain our focus on safety to achieve the ambitious targets we have set. It is a never-ending task for our company and one we take very seriously. Turning to our financial results.

Shipments were 398,000 tons, down 6% compared to the second quarter of 2022 due to lower shipments in PARP and AS&I. Revenue of €2 billion decreased 14% compared to last year, as improved price and mix was more than offset by lower shipments and lower metal prices. Remember, while our revenues are affected by changes in metal prices, we operate a pass-through business model, which minimizes our exposure to metal price risk. Our value-added revenue, which reflects our sales, excluding the cost of metal was €785 million, up 11% compared to the same period last year. Our net income of €32 million in the quarter compared to a net loss of €32 million in the second quarter last year. As you can see in the bridge on the top right, adjusted EBITDA of €209 million in the quarter was up 5% compared to last year and is a new quarterly record for the company.

With these details in mind, we decided to take a look at some top aluminum stocks, with Crown Holdings, Inc. (NYSE:CCK), Alcoa Corporation (NYSE:AA), and Apollo Global Management, Inc. (NYSE:APO) ranking the highest.

10 Best Aluminum and Aluminum Mining Stocks To Buy

Kzenon/Shutterstock.com

Our Methodology

To compile our list of the best aluminum and aluminum mining stocks we first made a list of all the companies that either pureplay aluminum firms or work with the metal as part of their broader operations. They were then ranked by the number of hedge fund shareholders as of June 2023.

10 Best Aluminum and Aluminum Mining Stocks To Buy10. Kaiser Aluminum Corporation (NASDAQ:KALU)

Number of Hedge Fund Investors In Q2 2023: 11

Kaiser Aluminum Corporation (NASDAQ:KALU) is an American firm headquartered in Memphis, Tennessee. It makes and sells aluminum products for industrial and engineering use. Its shares are rated Hold on average by analysts which have also penned in a modest $2.28 share price upside based on the average price target.

During Q2 2023, 11 out of the 910 hedge funds part of Insider Monkey's database had held a stake in Kaiser Aluminum Corporation (NASDAQ:KALU). Out of these, the firm's biggest investor is Ken Fisher's Fisher Asset Management since it owns 163,710 shares that are worth $11.7 million.

Along with Alcoa Corporation (NYSE:AA), Crown Holdings, Inc. (NYSE:CCK), and Apollo Global Management, Inc. (NYSE:APO), Kaiser Aluminum Corporation (NASDAQ:KALU) is a top aluminum stock.

9. Century Aluminum Company (NASDAQ:CENX)

Number of Hedge Fund Investors In Q2 2023: 15

Century Aluminum Company (NASDAQ:CENX) is another aluminum products company. It has operations in the U.S. and in Europe. The firm expanded its operations base earlier this year and saw activity in September when a Seattle based investment firm increased its stake in the company by 33%.

By the end of this year's second quarter, 15 hedge funds out of the 910 tracked by Insider Monkey had bought the firm's shares. Century Aluminum Company (NASDAQ:CENX)'s largest hedge fund investor among these is Ken Fisher's Fisher Asset Management through its $21 million stake.

8. Tredegar Corporation (NYSE:TG)

Number of Hedge Fund Investors In Q2 2023: 17

Tredegar Corporation (NYSE:TG) is an aluminum end product company that produces goods that are used in construction. Institutional investors hold almost 70% of the firm's shares, and given any jitters in the economy, the stock can become vulnerable since Tredegar Corporation (NYSE:TG)'s business is tied to the health of electronics production and other industries.

After digging through 910 hedge funds for their June quarter of 2023 investments, Insider Monkey discovered that 17 had invested in Tredegar Corporation (NYSE:TG). Mario Gabelli's GAMCO Investors is the company's biggest stakeholder since it owns $27.4 million worth of shares.

7. BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Investors In Q2 2023: 23

BHP Group Limited (NYSE:BHP) is a global mining giant that engages in aluminum mining through its business divisions. Bullishness for natural resources seems to be on analysts' minds as they have rated the stock as a Strong Buy on average and penned a $7 upside for the shares. However, investment bank Goldman Sachs is going against the tide, as it downgraded the shares to Neutral in a July 2023 analyst note and reduced the price target.

As of June 2023, 23 out of the 910 hedge funds surveyed by Insider Monkey were the firm's investors. BHP Group Limited (NYSE:BHP)s largest shareholder out of these is Ken Fisher's Fisher Asset Management through its $1.1 billion investment.

6. Reliance Steel & Aluminum Co. (NYSE:RS)

Number of Hedge Fund Investors In Q2 2023: 26

Reliance Steel & Aluminum Co. (NYSE:RS) is an American metal products manufacturer that deals in aluminum, copper, and other materials. Keybanc maintained an Overweight rating on the shares in July 2023, and the shares are rated Buy on average.

23 out of the 910 hedge funds part of Insider Monkey's Q2 2023 database had bought Reliance Steel & Aluminum Co. (NYSE:RS)'s shares. Donald Yacktman's Yacktman Asset Management is the biggest investor among these due to its $338 million stake.

Crown Holdings, Inc. (NYSE:CCK), Reliance Steel & Aluminum Co. (NYSE:RS), Alcoa Corporation (NYSE:AA), and Apollo Global Management, Inc. (NYSE:APO) are some best aluminum and aluminum stocks to buy.

Click to continue reading and see 5 Best Aluminum and Aluminum Mining Stocks To Buy.

Most Read from Bloomberg

A term sheet in circulation shows Stanmore Resources Ltd. is seeking to borrow a total of $1.1 billion for its acquisition of the Daunia coal mine, according to people familiar with the matter. The coal producer is also in talks to secure a $350 million bank loan, said the people, who asked not to be named because the matter is confidential.

Stanmore would fund the remainder of the purchase via equity, the people also said. The company declined to comment when contacted by Bloomberg.

Click here for more on the proposed terms

BHP announced earlier this year it planned to divest two of its coal mines in Queensland, Daunia and Blackwater, saying they’d struggle to compete for capital as the company changes tack.

Indonesian mining contractor PT Bukit Makmur Mandiri Utama and Stanmore made initial bids for at least one of them and private credit funds were considering jumbo loans to help with the financing, Bloomberg reported late last month.

Private debt has become an increasingly sought-after funding tool globally, as banks pull back amid a drop in investor risk appetite. Stanmore already relied on this type of lending in 2021 to partially fund its acquisition of BHP’s 80% stake in a coal operation joint venture with Mitsui & Co. in Bowen Basin, Queensland.

For BHP’s Blackwater mine, Bukit Makmur Mandiri Utama is in talks with two banks for a loan of as much as $750 million to back its bid, according to people familiar with the matter.

The Indonesian mining contractor is in separate talks with private credit funds and global banks for an acquisition loan, which would be held at the level of a special purpose vehicle, they said.

–With assistance from Harry Brumpton.

(Writes through to focus on private credit, adds Buma loan reference in final paragraphs)

Most Read from Bloomberg Businessweek

(Bloomberg) — Private credit funds are considering jumbo loans to help finance bids for coal mines that BHP Group Ltd. is seeking to offload in Australia, people familiar with the matter said.

Most Read from Bloomberg

The funds are in talks to potentially underwrite financing of $2 billion to $3 billion for competing bids from Indonesian mining contractor Bukit Makmur Mandiri Utama Pt (Buma) and Australian coal producer Stanmore Resources Ltd., according to the people, who asked not to be identified speaking about private matters.

The mines are called Daunia and Blackwater in the northeastern state of Queensland. Buma and Stanmore have made initial bids for at least one of them, the people said. A deal for both mines could be valued at about $5 billion, and the remainder of the financing could be arranged by banks, the people added.

Demand for private credit in Asia and globally has been picking up lately, as the $1.5 trillion market worldwide steps in to help finance deals where banks have often pulled back. In the second quarter globally, 34 new funds raised $71.2 billion, more than double the previous three months, according to data from research firm Preqin. In Asia, where the asset class is still growing from a lower base, firms raised $1.4 billion, up from $180 million in the first quarter.

BHP announced its divestment plan in February for Daunia and Blackwater, which it co-owns with Mitsubishi Corp.

Both Buma and Stanmore have made it through to the next round of bidding, the people said. Whitehaven Coal Ltd. is also still in the running for the mines among others, according to the people.

Stanmore is no stranger to private credit. In November 2021, it tapped $625 million from private credit funds managed by Varde Partners, Canyon Capital Advisors, Farallon Capital Asia Pte, and other credit funds to partially fund its acquisition of BHP’s 80% stake in a coal operation joint venture with Mitsui & Co. in Bowen Basin, Queensland.

The other bidder Buma is already a contractor at the coal mine Blackwater, under a A$540 million contract.

Stanmore, Buma, and Whitehaven declined to comment. BHP didn’t respond to a request for comment on the auction timeline and who made it to the next round of bidding.

–With assistance from James Fernyhough, Rob Verdonck and Davide Scigliuzzo.

(Retops and adds context throughout)

Most Read from Bloomberg Businessweek

By Tom Westbrook and Dhara Ranasinghe

SINGAPORE/LONDON (Reuters) – Investors looking for clues about the state of China's economy beyond official data are seeing red warnings flash across a range of informal gauges, prompting many to back out of global assets exposed to the slowdown.

The selling is sucking the wind out of stock markets from London to Bangkok and weighing on China proxies from the Australian dollar to New Zealand dairy prices and shares from luxury goods giant LVMH to miner BHP and casino Las Vegas Sands.

As the post-pandemic period has failed to bring a sustained recovery in consumer spending, or to thaw the near-frozen property market, most analysts now figure the world's second-largest economy is going to miss its 5% growth target this year.

Beneath the headlines, investors are even gloomier with higher-frequency and more arcane data from a shrinking current account surplus to ballooning deposits and soft surveys pointing to a deep-seated confidence problem.

"It's pretty weak," said Sat Duhra, a portfolio manager at Janus Henderson who devises a macro score for countries by tracking seven factors including PMI surveys, real exchange rates, current accounts, growth estimates and liquidity.

"PMIs have been weak, GDP is being revised downward. It's a tricky situation," he said. "And I don't see any point, at this point, in taking a bullish view on China when all of these things are going on."

His fund invests in China, but away from economically sensitive sectors such as banks, property or industrials.

Beyond China, which is the largest trading partner of most of its neighbours and other big economies, souring demand is beginning to take a toll.

New Zealand's Fonterra, the world's biggest dairy exporter, has cut its farm gate milk price forecast twice in a month citing "reduced demand from key importing regions." It previously noted that the largest slowdown was in China.

Last week BHP Group posted its weakest annual profit in three years and manganese-focused spinoff South32 said profit fell by nearly two thirds. New Zealand's a2 Milk Co warned of weak growth in China's infant formula market.

Shares of BHP, S32 and a2 fell.

Seema Shah, chief global strategist at Principal Global Investors in London, sees the slowdown biting in Europe, where investors tend to connect the fortunes of German manufacturers with the those of their Chinese customers.

"We have become a bit more gloomy on Europe," she said, noting China also poses a risk to U.S. equities.

RETREAT

This year's run of bad indicators has wrong-footed investors, who had been positioning for companies such as BHP and currencies such as the Australian dollar and Thai baht to rally as China emerged from the COVID-19 pandemic in a blaze of spending.

Instead, Chinese visitors to top destination Thailand, for example, are barely a third of pre-pandemic levels, the baht is stalled and in Asia only Hong Kong's Hang Seng has fallen further than Thai stocks' 6.5% drop.

Even in Japan, the stock market success story of the year so far, portfolio manager Zuhair Khan at UBP Investments says he's shorting or avoiding companies reliant on China sales.

The scale of the problem, with data showing consumer and producer prices falling and youth unemployment running over 20%, indicates an aggressive policy response is needed, and quickly, he said, something that is so far yet to arrive.

To be sure, although they too have lately retreated, stocks of companies such as casino-operator Las Vegas Sands and luxury-goods seller LVMH are up 11% and 16%, respectively, this year, against a 10% gain for world stocks, and some investors remain bullish.

"We expect group travel to resume in late 2023 and support Chinese spend on luxury goods globally," said Prashant Bhayani, Asia chief investment officer at BNP Paribas Wealth Management.

But it's now a waiting game for valuations to reflect more realistic assumptions.

"The China reopening as a thematic has played out to some extent. However, I think more importantly, it has fallen short of initial expectations," said Jagdeep Ghuman, a portfolio manager for U.S. asset manager Nuveen.

"It’s (now) very much on a case by case basis, driven by valuations. Overall we have seen that reset of expectations play out in the market and so there has been volatility in the shares of these companies."

(Reporting by Tom Westbrook and Rae Wee in Singapore, Dhara Ranasinghe in London and Summer Zhen and Xie Yu in Hong Kong. Editing by Sam Holmes)

Key Insights

Institutions' substantial holdings in BHP Group implies that they have significant influence over the company's share price
45% of the business is held by the top 25 shareholders
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of BHP Group Limited (ASX:BHP) can tell us which group is most powerful. With 49% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Let's take a closer look to see what the different types of shareholders can tell us about BHP Group.

See our latest analysis for BHP Group

ownership-breakdownWhat Does The Institutional Ownership Tell Us About BHP Group?

As you can see, institutional investors have a fair amount of stake in BHP Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at BHP Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

BHP Group is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 7.1% of shares outstanding. The second and third largest shareholders are State Street Global Advisors, Inc. and The Vanguard Group, Inc., with an equal amount of shares to their name at 5.1%.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of BHP Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of BHP Group Limited. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own AU$60m worth of shares. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public– including retail investors — own 47% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that BHP Group is showing 2 warning signs in our investment analysis , and 1 of those is concerning…

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

Toronto, Ontario–(Newsfile Corp. – August 24, 2023) – Honey Badger Silver Inc. (TSXV: TUF) ("Honey Badger" or the "Company") is pleased to provide an update on its ongoing exploration work at its wholly owned Plata Silver Project, Yukon. The project is located in eastern Yukon, adjacent to Snowline Gold Corp.'s Rogue Project. Field work completed this year was undertaken by a crew contracted from Archer Cathro & Associates (1981) Limited and included prospecting, geological mapping, and geochemical sampling. A total of 308 soil and 56 rock chip samples were collected and are being assayed. Assay results will be released when they have been received and interpreted. The objective of this year's field program was to further define the exploration targets at Plata and to define drill targets for future testing.

The Company's CEO, Dorian L. (Dusty) Nicol, commented, "We remain very excited about the exploration potential at our Plata Project. Our confidence in Plata's potential has been fueled by recent announcements by Snowline Gold Corp. from their Rogue Project, adjacent to Plata. Our geologic mapping this year continues to identify mineralization in a geologic setting similar to Rogue, associated with structures that provided pathways for mineralizing fluids from intrusions. We look forward to receiving the assay results from this season's sampling so that we can interpret them and plan the next steps of work. Meanwhile, the field crews have mobilized to our Groundhog and Clear Lake projects."

Multiple new zones of mineralization were observed during the program, associated with previously identified soil geochemical anomalies. Mineralization observed comprised sulphides and iron oxides associated with silicification and quartz-veining. Field observations will be collated with assay data when they become available. This will lead to recommendations for the next phase of work on this project.

The map below shows the location of the Company's Plata Project in relation to Snowline Gold Corp.'s Rogue Project, where significant gold mineralization is being discovered, including a drill intercept of 553.8 metres of 2.48 g/t Au, beginning from surface (Snowline Gold News Release dated August 3, 2023). Mineralization at Rogue is associated with Cretaceous-age intrusive rocks that comprise the Tintina Belt of gold deposits, including the Fort Knox in Alaska and Eagle deposits near Mayo in Yukon. The geologic setting at Plata is similar, with evidence of intrusive rocks of the same age and fracture and vein style mineralization.

Figure 1: Plata Silver Project

To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/3204/178355_8fb5f3b804ea1bef_001full.jpg

Technical information in this news release has been approved by Heather Burrell, P.Geo., a senior geologist with Archer, Cathro& Associates (1981) Limited, and Qualified Person (QP) for the purpose of National Instrument 43-101.

About Honey Badger Silver Inc.

ON BEHALF OF THE BOARD

Dorian L. (Dusty) Nicol, President & CEO

For more information please visit our website www.honeybadgersilver.com or contact Ms. Michelle Savella for Investor Relations | msavella@honeybadgersilver.com | +1 (604) 828-5886

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/178355

(Bloomberg) — BHP Group Ltd., the world’s biggest miner, missed analysts’ forecasts as its full-year profit slumped, with China’s struggling economy weighing on demand for iron ore and other commodities.

Most Read from Bloomberg

Twelve months after posting its highest-ever profit as prices soared, the deteriorating economic outlook in the world’s biggest metals consumer has seen BHP’s earnings from iron ore, copper, coal and nickel recording double-digit percentage declines. Inflation, particularly in labor costs, also put pressure on profits, the company said Tuesday.

BHP’s plunging earnings mirror those posted by iron ore rival Rio Tinto Group last month, with miners holding their breath for an upswing in China’s economy since Beijing abandoned “Covid Zero” restrictions last November.

A slew of recent data suggest steel and iron ore demand could contract for the rest of the year, with the Chinese property market still in a trough, and authorities are unwilling to encourage massive building despite the slowdown reflected in July’s industrial output.

Read More: Solving China’s Steel Demand Mystery: Energy Daily

China’s near-term outlook was “contingent on the effectiveness of recent policy measures,” Chief Executive Officer Mike Henry said in a statement Tuesday, adding he expected “buoyant growth in India with strong construction activity underpinning an expansion in steelmaking capacity.”

BHP’s underlying attributable profit from continuing operations fell to $13.4 billion in the 12 months to June 2023, the Melbourne-based company said in a regulatory filing. It will pay a final dividend of 80 cents per share, compared with $1.75 the year before.

Still, BHP said it expects China steel production to reach more than 1 billion tons this calendar year, as it did last year. But in the medium term, “China’s demand for iron ore is expected to be lower than it is today as it moves beyond its crude steel production plateau and the scrap-to-steel ratio rises,” it said in the report.

Henry said on a media call Tuesday that he expected China’s economy to “pick up toward the back end of this year.” New-start property development was the biggest drag on steel demand, but “there’s many parts of the Chinese economy that are actually running quite well,” including green technology and the automotive sector.

BHP has put “future facing commodities” copper, nickel and potash at the center of its growth plans, driven by population growth, urbanization and the clean energy transition. Henry said capital expenditure would increase to around $10 billion in the current financial year, up from $7.1 billion last year, as the company invests more in these minerals.

The miner said it’s studying increasing annual iron ore production from its Australian operations to 330 million tons a year, up from 257 million tons now. BHP gave no update on the progress of the sale of two coal mines in Australia’s Queensland state.

(Updates with steel production forecast in seventh paragraph; iron ore expansion plans in ninth)

Most Read from Bloomberg Businessweek

CONNECT WITH US

Tweets

Tweet with hash tag #miningfeeds or @miningfeeds and your tweets will be displayed across this site.

Tweets by MiningFeeds

MOST ACTIVE MINING STOCKS

Daily Gainers


CMC Metals Ltd.	CMB.V	+900.00%
Eden Energy Ltd	EDE.AX	+200.00%
GoviEx Uranium Inc.	GXU.V	+42.86%
Eagle Nickel Ltd.	ENL.AX	+41.67%
Citigold Corp. Limited	CTO.AX	+33.33%
Mount Burgess Mining NL	MTB.AX	+33.33%
Exalt Resources Limited	ERD.AX	+31.94%
Casa Minerals Inc.	CASA.V	+30.00%
Cariboo Rose Resources Ltd	CRB.V	+28.57%
Belmont Resources Inc.	BEA.V	+28.57%

Andromeda (Area 51):

FA-23-569:	17.05 g/t Au over 2.75 metres;

	1.37 g/t Au over 28.50 metres, including
	3.71 g/t Au over 4.00 metres, and
	3.06 g/t Au over 4.20 metres;

	11.81 g/t Au over 0.65 metres;

FA-23-570:	0.97 g/t Au over 13.60 metres, including
	2.28 g/t Au over 2.90 metres;

	1.36 g/t Au over 7.50 metres, including
	3.21 g/t Au over 2.30 metres;

	12.04 g/t Au over 1.00 metre;

FA-23-571:	2.01 g/t Au over 5.00 metres;

FA-23-572:	13.78 g/t Au over 1.00 metres;

MIB (Area 51):

FA-23-566:	80.51 g/t Au over 0.50 metre;

	29.42 g/t Au over 0.50 metre;

FA-23-568:	4.36 g/t Au over 7.50 metres, including
	17.55 g/t Au over 1.50 metres;

FA-23-568:	5.90 g/t Au over 1.80 metres;

FA-21-291:	23.20 g/t Au over 0.50 metres;

Enterprise (Area 51):

FA-22-507:	2.34 g/t Au over 6.00 metres;

Table 1. Wallbridge Fenelon Gold Property, Recent Drill Assay Highlights (1)
Drill Hole	From	To	Length	Au	Au Cut(2)	Zone/Corridor
Drill Hole	(m)	(m)	(m)	(g/t)	(g/t)	Zone/Corridor

2023 Resource Drill Results (3)
Area 51 Infill Drilling- Andromeda
FA-23-569	51.25	54.00	2.75	17.05	17.05	Area 51
FA-23-569	99.50	128.00	28.50	1.37	1.37	Area 51
Including…	99.50	103.50	4.00	3.71	3.71	Area 51
And…	123.80	128.00	4.20	3.06	3.06	Area 51
FA-23-569	200.50	202.00	1.50	3.61	3.61	Area 51
FA-23-569	400.00	400.65	0.65	11.81	11.81	Area 51
FA-23-570	172.40	186.00	13.60	0.97	0.97	Area 51
Including…	172.40	175.30	2.90	2.28	2.28	Area 51
FA-23-570	244.50	252.00	7.50	1.36	1.36	Area 51
Including…	247.70	250.00	2.30	3.21	3.21	Area 51
FA-23-570	263.50	264.50	1.00	12.04	12.04	Area 51
FA-23-571	66.00	71.00	5.00	2.01	2.01	Area 51
FA-23-572	104.20	109.50	5.30	1.05	1.05	Area 51
FA-23-572	406.50	407.50	1.00	13.78	13.78	Area 51
Area 51 Infill Drilling- MIB
FA-23-566	63.00	64.50	1.50	4.35	4.35	Area 51
FA-23-566	113.50	114.00	0.50	80.51	65.00	Area 51
FA-23-566	149.50	151.00	1.50	3.45	3.45	Area 51
FA-23-566	243.00	243.50	0.50	29.42	29.42	Area 51
FA-23-566	263.50	265.30	1.80	3.01	3.01	Area 51
FA-23-567	No Significant Mineralization
FA-23-568	154.00	161.50	7.50	4.36	4.36	Area 51
Including…	154.00	155.50	1.50	17.55	17.55	Area 51
FA-23-568	199.70	201.50	1.80	5.90	5.90	Area 51
FA-21-271 EXT	No New Significant Mineralization
FA-21-291 EXT	437.00	437.50	0.50	23.20	23.20	Area 51
Area 51 Infill Sampling- Enterprise
FA-22-507 (Infill)	452.00	458.00	6.00	2.34	2.34	Area 51
2023 Exploration Drill Results (4)
Target F1
FA-23-557	305.00	306.50	1.50	0.97	0.97	New Zones
FA-23-557	343.00	344.50	1.50	2.20	2.20	New Zones
FA-23-558	141.00	142.00	1.00	1.55	1.55	New Zones
FA-23-558	434.00	435.00	1.00	1.08	1.08	New Zones
FA-23-558	444.00	444.50	0.50	7.19	7.19	New Zones
FA-23-558	490.00	491.40	1.40	2.23	2.23	New Zones
FA-23-560	328.10	328.65	0.55	1.82	1.82	New Zones
FA-23-561	358.00	358.80	0.80	1.34	1.34	New Zones
FA-23-565	273.50	274.10	0.60	8.71	8.71	New Zones
FA-23-573	No Significant Mineralization
Target F2/3- West
FA-23-550	No Significant Mineralization
FA-23-553	No Significant Mineralization
Target F5
FA-23-562	558.50	560.00	1.50	1.33	1.33	New Zones
FA-23-563	212.00	213.50	1.50	3.18	3.18	New Zones
FA-23-563	268.55	287.00	18.45	0.52	0.52	New Zones
Including…	275.00	281.00	6.00	0.90	0.90	New Zones
Target F6- East
FA-23-554	No Significant Mineralization
FA-23-555A	160.00	162.50	2.50	0.99	0.99	New Zones
FA-23-556A	No Significant Mineralization
Target F8
FA-23-559	No Significant Mineralization
Target SLDZ
FA-23-564	No Significant Mineralization
Note: True widths are typically estimated to be 50-80% of the reported core length intervals.
(1) Table includes only assay results received since the latest press release dated June 06, 2023.
(2) Au cut at: 100 g/t Au for the Tabasco/Contact /Cayenne zones; 65 g/t Au for the Area 51 zones.
(3) Resource drill hole intercepts are based on a metal factor (Au grade * intercept thickness) of at least 5 g/t*m.
(4) Exploration drill hole intercepts are based on a metal factor (Au grade * intercept thickness) of at least 1 g/t*m.

CONNECT WITH US

Tweets

MOST ACTIVE MINING STOCKS

Daily Gainers

Articles

FOUND POSTS

CATL Commits US$4.4 Billion to Expand Mining Business

Mark Morabito’s Intrepid Metals Secures Key Land Position at Corral Copper Project in Arizona

India Expands Access to Critical Minerals With Mining Rule Changes

Glomar and Cobalt Blue Target US Refinery for Seabed Mineral Processing

Ontario Funds 68 Early-Stage Mining Projects Through Exploration Program