Base Metals Archives - Page 33 of 97

For Immediate Release

Chicago, IL – March 2, 2022 – Today, Zacks Investment Ideas feature highlights Teck Resources Ltd. TECK, Sibanye Stillwater Ltd. SBSW and Newmont Corp. NEM.

Metals Stage Rally: Gold and Silver Shine

Metals have been quietly making their way higher as stocks have continued their recent decline. Historically viewed as a hedge against inflation and currency devaluation, precious metals can be a great portfolio diversifier – particularly during times when most equities are falling.

There are numerous ways to gain exposure to precious metals. In addition to owning physical metals, investors can access these commodities through exchange-traded funds, mutual funds, mining company stocks, and the derivatives market. Well-recognized metals include platinum and palladium, but the two most widely followed are gold and silver.

Gold is a unique precious metal known for its extreme durability, malleability, and heat and electricity conduction properties. Most investors are familiar with gold as an input for jewelry-making. While gold is perceived more as a store of value, silver is viewed as more of an industrial metal. Silver has historically been more volatile than gold and is known for its outsized rallies during precious metal bull runs.

While the past few months have been treacherous for passive equity investors, gold and silver have made a stealthy move higher. We can see below that both gold (+3.94%) and silver (+4.34%) have outperformed the S&P 500 (-8.23%) year-to-date.

One of the best ways to target these metals from an investment perspective is to own the stocks of mining companies. These stocks typically outperform the underlying precious metals due to growth in their intrinsic value.

Precious metals do not have the potential for intrinsic value growth as stocks do. The ability of companies to increase their intrinsic value has always enabled stocks to outperform other types of investments. As the intrinsic value of a company grows, the company can increase its production or services which in turn creates more income.

We can see this playing out in 2022, as the three stocks we will discuss below have been handily outperforming both gold and silver. All three companies are part of the Zacks Mining – Miscellaneous industry group, which ranks in the top 40% of all Zacks Ranked Industries. By targeting stocks in the top industry groups, we can dramatically improve our investing success.

Teck Resources Ltd.

Teck Resources is engaged in the exploration, development, and production of natural resources in Asia, Europe, and North America. TECK's primary products include steelmaking coal as well as copper and zinc concentrates. The company also produces gold, silver, germanium, and cadmium, as well as chemicals and fertilizers. TECK Resources was founded in 1913 and is headquartered in Vancouver, Canada.

Higher prices of the company's principal products along with a solid pipeline of projects have contributed to TECK's bullish run. A Zacks Rank #1 (Strong Buy) stock, TECK has exceeded earnings estimates in six of the past seven quarters. Shares of TECK are up nearly 25% just this year alone.

Despite the impressive performance, the stock trades at just a 6.46 forward P/E which makes it relatively undervalued when compared to that of its industry (9.48 forward P/E).

Earnings estimates for the current quarter have seen positive changes as of late. The Q1 consensus estimate has been revised upward by 50.83% to $1.81 in just the past 60 days. TECK is scheduled for its Q1 earnings announcement on April 27th.

Analysts have also increased their full-year EPS estimates for TECK by 30.14% in the past two months. The 2022 Zacks Consensus EPS Estimate now stands at $5.57, translating to potential growth of 23.23% relative to last year. Sales are seen rising 12.15% to $12.05 billion.

Sibanye Stillwater Ltd.

Sibanye Stillwater operates as a precious metals mining company in South Africa, the U.S., Canada, Zimbabwe, and Argentina. SBSW produces gold, platinum, palladium, and rhodium, in addition to by-products such as nickel, copper, and chrome. Sibanye Stillwater was founded in 2013 and is based in South Africa.

A Zacks #2 (Buy) stock, SBSW shares have advanced over 52% since the start of the year. The stock has handily outperformed both the S&P 500 as well as underlying precious metals. Even with the remarkable outperformance, SBSW is relatively undervalued at a 5.3 forward P/E when compared to the 9.48 forward P/E of its industry group.

Analysts are bullish on SBSW and have upped their 2022 EPS estimates by 17.21% in the past 60 days. The Zacks Consensus Estimate now stands at $3.61, reflecting growth of 41.02% versus last year. SBSW sales are projected to climb 26.95% to $9.83 billion.

Newmont Corp.

Newmont is engaged in the exploration and production of gold, copper, silver, zinc and lead. NEM operates primarily in North America, South America, Australia, and Africa. The Colorado-based firm was founded in 1916 and is one of the world's largest producers of gold with several active mines in Peru, Australia, Ghana, and Nevada.

Back in 2019, NEM entered into a deal with Goldcorp to acquire all of the latter's outstanding common shares in a stock-for-stock transaction. NEM has been benefitting from the merger and is projected to generate an annual benefit of approximately $165 million per year. Furthermore, annual pre-tax synergies and full potential benefits for NEM are anticipated to create value of more than $2.5 billion. Shares have risen nearly 7% to kick off the new year.

NEM most recently reported Q4 EPS this past week of $0.78, a +2.63% beat over the $0.76 consensus. Q1 estimates have been revised upward by 31.15% in the past 60 days. The Zacks Consensus Estimate now stands at $0.80, which would represent an 8.11% growth rate relative to the same quarter in 2021. NEM is slated to report its Q1 results on May 5th.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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 Newmont Corporation (NEM) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report Sibanye Gold Limited (SBSW) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Firms paid shareholders $1.47tn (£1tn) in dividends last year, the highest total ever recorded, but 2022 is on track to be even better according to the latest Janus Henderson Global Dividend Index.

Global dividends surged 14.7% to reach a new high of $1.47tn, with records broken in a number of countries, including the US, Brazil, China and Sweden.

Nine-tenths of companies globally increased or held their dividends steady as banks and miners delivered three-fifths of the $212bn increase in payouts.

Banks saw dividends jump by 40% — or $50.5bn — driven by restoring payouts to more normal levels given that regulators had curbed distributions in many parts of the world in 2020.

More than one quarter of the annual dividend increase came from miners, which benefited from soaring commodity prices.

Record payments from the miners reflected the strength of their profits — the mining sector distributed $96.6bn over the year, almost double the previous record set in 2019.

That is 10 times more than during the slump in 2015-16, with BHP (BHP) becoming the world’s largest dividend payer.

Consumer discretionary and industrial companies saw dividends increase by 12.8% and 10% respectively, while healthcare and pharmaceutical groups grew their dividends by 8.5%. Technology companies, whose profit growth continued relatively uninterrupted by the pandemic, added $17bn — an increase of 8%.

The global dividend surge was also boosted by record one-off special dividends.

World’s biggest dividend payers. Table: Janus Henderson Global Dividend Index

“A large part of the 2021 dividend recovery came from a narrow range of companies and sectors in a few parts of the world. But beneath these big numbers, there was broad based growth both geographically and by sector," Jane Shoemake, client portfolio manager, global equity income at Janus Henderson, said.

"In the context of the dramatic rebound seen in the banking sector, and the exceptional cyclical surge from mining companies, it would be easy to overlook the encouraging growth seen from those sectors that have delivered consistent increases in recent years, like the technology sector.”

Payouts reached new records in a number of countries including the US, Australia, China and Sweden, but one third of the rebound came from just two countries — Australia and the UK. A combination of surging mining payouts and restored banking distributions made the biggest contribution to growth in the two nations.

In the UK, dividends rose 44.3% on a headline basis in 2021, an increase of $28.9bn. Payouts increased 21.2% ahead of the global average. The total was driven by record special dividends paid by the mining sector, though miners’ regular dividends were also sharply higher.

UK banking dividends meanwhile only jumped back to half their pre-pandemic strength — due mainly to HSBC (HSBA.L) — and oil payouts were lower year-on-year due to the delayed impact of cuts announced in 2020.

More widely, three-quarters of UK companies in the index increased payouts or held them steady. After the 2021 mining boom, banking and recovering oil dividends are forecast to be the main engine of 2022 dividend growth in the UK.

“Having underperformed other equity markets in recent years, the UK equity market looks very attractively valued on both an earnings and dividend yield basis and we have exposure to a number of UK companies that are trading at a significant valuation discount to their international peers,” Shoemake added.

For 2022, Janus Henderson expects global dividends to jump up 3.1% and reach a new record of $1.52tn.

Watch: What are SPACs?

Verso Corporation VRS reported fourth-quarter 2021 adjusted earnings per share of 73 cents per share, which beat the Zacks Consensus Estimate of 67 cents. It marked a turnaround from a loss of $1.84 per share in the prior-year quarter driven by improved sales and operations.The company generated revenues of $328 million in the quarter under review, reflecting year-over-year growth of 4.5%. This was aided by favorable price/mix of $57 million, partially offset by $43 million in decreased sales, primarily attributable to the sale of Duluth and idled Wisconsin Rapids mills. Volume was 341 thousand tons during the quarter, down from 392 thousand tons in the last-year quarter, chiefly due to the sale of Duluth and idled Wisconsin Rapids mills. The top line figure outpaced the Zacks Consensus Estimate of $298 million.Cost of sales was $252 million, down 23% year over year. Gross profit was $76 million in the quarter against a loss of $13 million in the prior-year quarter.

Verso Corporation Price, Consensus and EPS SurpriseVerso Corporation Price, Consensus and EPS Surprise

Verso Corporation price-consensus-eps-surprise-chart | Verso Corporation Quote

Selling, general and administrative expenditure surged 47% year on year to $22 million. Adjusted EBITDA was $74 million in the reported quarter, which skyrocketed 722% from the prior-year quarter. Adjusted EBITDA margin was 22.6% compared with 2.9% in the year-ago quarter. Favorable price/mix, lower net operating expenses due to lower closed/idled mill spend as well as cost reduction initiatives across the mill system aided margins in the quarter. However, lower sales volume, inflationary costs due to purchased pulp, latex, energy and freight as well as higher selling, general and administrative costs negated some of these gains.

Financial Position

Verso’s cash and cash equivalents were $172 million at the end of 2021 compared with $137 million at the end of 2020. Operating cash flow was $180 million in 2021, marking a significant improvement from the outflow of $62 million in the prior year. The company’s long-term debt was $3 million as of Dec 31, 2021, down from $4 million as of Dec 31, 2020.On Dec 19, 2021, Verso entered into a definitive merger agreement with BillerudKorsnäs AB. Per the deal, BillerudKorsnäs AB has agreed to acquire all of the outstanding shares of Verso for a purchase price of $27.00 per share in cash.

Share Price PerformanceZacks Investment Research

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Over the past year, Verso’s share price has soared 111.6% against the industry’s decline of 7.2%.

Zacks Rank & Stocks to Consider

Verso currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the basic materials space include Teck Resources TECK, Nutrien NTR and Allegheny Technologies Incorporated ATI. All of these stocks carry a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Teck Resources has a projected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for TECK's current fiscal year earnings has been revised upward by 28% in the past 60 days.Teck Resources beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13%. TECK’s shares have surged around 71% in a year.Nutrien has a projected earnings growth rate of 70% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 17% upward in the past 60 days.Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 60.3%. NTR has rallied around 54% in a year.Allegheny has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised upward by 46% in the past 60 days.Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 127.2%. ATI has rallied around 24% over 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 Allegheny Technologies Incorporated (ATI) : Free Stock Analysis Report Verso Corporation (VRS) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report Nutrien Ltd. (NTR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

In this article, we look at why billionaire Stanley Druckenmiller just dumped 10 stocks from his portfolio. You can skip our comprehensive analysis of Duquesne Capital's history, investment philosophy, and hedge fund performance and go directly to Billionaire Stanley Druckenmiller Just Dumped These 5 Stocks.

Meta Platforms, Inc. (NASDAQ:FB), Moderna, Inc. (NASDAQ:MRNA), and Zoom Video Communications, Inc. (NASDAQ:ZM) were a few of the most prominent holdings that were dumped during the fourth quarter by famed investor Stanley Druckenmiller, who believes the current market bubble is bigger than the dot-com era one.

Stanley Druckenmiller is the billionaire founder of New York-based Duquesne Capital, which was closed to outside investors in 2010. The firm, which was initially launched in 1981, now functions as a family office that manages Druckenmiller’s substantial wealth, which is estimated by Bloomberg to be $10.4 billion.

Druckenmiller has sounded alarm bells in recent months about what he believes is a mammoth bubble in the market that has crept across “every asset on the planet”, he is quoted as saying during an interview with fellow hedge fund titan Seth Klarman at the Boston Investment Conference in November.

Druckenmiller also took issue with the fed’s stimulus efforts, saying they were further contributing to the bubble’s inflation. However, he did praise the Fed’s move to drop forward guidance, which he believes will allow the latest economic data to guide more effective policymaking.

Given his stance on the market, it’s not surprising that Druckenmiller’s family office sold off several notable holdings during Q4, including Meta Platforms, Inc. (NASDAQ:FB). The social media giant’s long-term metaverse initiative, which lost a shocking $10 billion in Q4, certainly doesn’t appear to align with Druckenmiller’s shorter-term investment philosophy of trying to imagine the world in 18 months and who the winners and losers might be during that timeframe.

Druckenmiller also sold off 14 other former holdings during Q4, the bulk of which we’ll analyze in this article.

Billionaire Stanley Druckenmiller Just Dumped These 10 Stocks

Stan Druckenmiller

Our Methodology

We follow hedge funds like Duquesne Capital because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.

The following list of stocks were the largest holdings sold off by Stanley Druckenmiller’s family office during Q4 according to its 13F filing for the reporting period of December 31, 2021. The positions are ranked in order of their former value in Duquesne’s portfolio.

All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.

Billionaire Stanley Druckenmiller Just Dumped These 10 Stocks10. Nektar Therapeutics (NASDAQ:NKTR)

Number of Hedge Fund Shareholders: 24

Druckenmiller unloaded his entire 1-million share position in Nektar Therapeutics (NASDAQ:NKTR) during Q4 less than a year after first taking a stake in the company. Druckenmiller ended up taking a loss on the investment, as NKTR shares have trended downwards throughout the last year and sit more than 90% off their all-time highs hit in 2018.

Other hedge funds have also been unloading Nektar Therapeutics (NASDAQ:NKTR) shares in recent quarters, as 24 funds were long the stock on December 31, down from 31 funds in late 2018. Lee Ainslie’s Maverick Capital held the largest NKTR position at the end of 2021 among those 24 funds at 5.82 million shares, with the stock ranking as one of the 5 Healthcare Stocks to Buy According to Lee Ainslie’s Maverick Capital.

SVB Leerink analyst Daina Graybosch cut the firm’s price target on Nektar Therapeutics (NASDAQ:NKTR) to $18 from $19 on November 8 while maintaining a ‘Market Perform’ rating on the shares. Graybosch believes that the company’s Phase III trial for Bempeg has a higher likelihood of failure in its lead indications than typical late-stage trials.

That is likely one of the reasons why Druckenmiller didn’t like the near-term potential for Nektar Therapeutics shares, just as he appears to have lost near-term conviction in Meta Platforms, Inc. (NASDAQ:FB), Moderna, Inc. (NASDAQ:MRNA), and Zoom Video Communications, Inc. (NASDAQ:ZM).

9. StoneCo Ltd. (NASDAQ:STNE)

Number of Hedge Fund Shareholders: 35

Druckenmiller also unloaded Brazilian fintech company StoneCo Ltd. (NASDAQ:STNE) from his family office’s portfolio during Q4, selling off his entire stake of 382,100 shares just one quarter after purchasing them. Druckenmiller again chose to cut his losses on an ill-timed investment before more damage could be done, as STNE shares have continued to sink, down by 83% since the middle of 2021.

StoneCo Ltd. (NASDAQ:STNE) shares have been battered by the recent investor defection from high-growth stocks, as well as rising treasury yields, some of which rose to their highest levels in two years earlier this year. StoneCo can’t lay the blame entirely on outside factors however, as its third quarter financial results, which included its EPS falling by more than half year-over-year, also disappointed investors.

Other hedge funds have also been abandoning StoneCo Ltd. (NASDAQ:STNE) recently, as hedge fund ownership of the stock has dropped by nearly 25% over the last two quarters.

8. Farfetch Limited (NYSE:FTCH)

Number of Hedge Fund Shareholders: 47

Farfetch Limited (NYSE:FTCH) represents another short-lived position in the 13F portfolio of Duquesne Capital, with the position being initiated in the second quarter of 2021. In Q4, the family office sold off all 629,470 of its shares in the company. Hedge fund ownership of the e-commerce fashion retailer has tumbled by 30% over the last two quarters.

As with the previous two holdings, Farfetch Limited (NYSE:FTCH) shares have fallen throughout much of the last year, save for a brief spike in mid-November that may have offered a prime selling window for Druckenmiller, though it’s unknown when during Q4 his position was unloaded.

Farfetch Limited (NYSE:FTCH) shares have also rebounded slightly in the last week after the company’s fourth quarter results revealed some encouraging operational improvements. The company’s EBITDA surged by more than 250% year-over-year during the quarter to $36.1 million, and it guided for further EBITDA margin growth and greater revenue growth in 2022. Nonetheless, FTCH shares remain down by over 64% in the last year.

In its Q4 2021 investor letter, the RiverPark Large Growth Fund predicted strong long-term growth for Farfetch. Here is what it had to say about the company:

“Farfetch: FTCH shares struggled in 2H21 as consumer behavior remains hard to forecast, supply chain disruptions continue to be elevated, and Apple’s App Tracking Transparency changes make customer outreach difficult and more expensive. Despite these headwinds, which we believe to be transitory, Farfetch still reported 28% gross merchandise volume growth, 33% revenue growth, and 43% gross profit growth.

In March, we had established a small position in this leading online luxury fashion retail platform. The company is benefitting from the secular trends of growing ecommerce, the global market for personal luxury goods, and emerging market growth, particularly in China. Luxury fashion has much lower online penetration than general ecommerce, and Farfetch is differentiated because it has developed longstanding relationships with image conscious luxury product companies. Because of this focus, Farfetch has both higher average order values and higher take rates relative to peers, driving higher gross margins. We believe the company can grow revenue and EBITDA more than 20% and 50% per year, respectively, for the foreseeable future. With its extremely low capital needs—capital expenditures were less than 2% of revenue last year—we expect the company’s free cash flow to grow even faster.”

7. Formula One Group (NASDAQ:FWONK)

Number of Hedge Fund Shareholders: 46

46 hedge funds are long Liberty Media Formula One Series C (NASDAQ:FWONK) as of December 31, up from 40 a quarter earlier, but Druckenmiller’s family office isn’t one of them. It sold off its 485,800 shares during Q4, closing the position it had opened a year earlier. Liberty Media Formula One Series C (NASDAQ:FWONK) shares gained 70% between the start of Q4 2020 and the end of 2021, so the holding was a successful one for Druckenmiller.

While Druckenmiller may not see much more room for share price growth in the coming 18 months, hedge funds, in general, appear to be bullish on the changes being made by the Liberty Media Formula One Series C (NASDAQ:FWONK)’s management as well as the racing league’s untapped potential that’s been hindered by the ongoing effects of Covid-19.

6. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Shareholders: 41

Duquesne Capital sold off its Teck Resources Ltd (USA) (NYSE:TCK) holding 1.04 million shares during Q4, closing the position in the Canadian mining company that it opened in the third quarter of 2020. Teck Resources is near its all-time high in hedge fund ownership, as 41 funds were shareholders at the end of 2021.

With coal prices on the rise, Teck Resources Ltd (USA) (NYSE:TCK) is reportedly considering selling off a 10% stake in its metallurgical coal business, which could be worth close to $800 million.

Teck Resources Ltd (USA) (NYSE:TCK) is coming off its strongest quarter ever, pulling in CAD2.54 ($1.99) in EPS, a greater than 400% jump year-over-year, while revenue soared to CAD4.41 billion ($3.45 billion), a 72% year-over-year increase. The company also set quarterly and annual records for adjusted EBITDA.

However, with the company’s shares up by 74% over the last year, Druckenmiller’s decided to move on, casting Teck Resources into the same pit of former holdings that also contains Meta Platforms, Inc. (NASDAQ:FB), Moderna, Inc. (NASDAQ:MRNA), and Zoom Video Communications, Inc. (NASDAQ:ZM), as you’ll see in the conclusion of this article.

Click to continue reading and see Billionaire Stanley Druckenmiller Just Dumped These 5 Stocks.

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Disclosure: None. Billionaire Stanley Druckenmiller Just Dumped These 10 Stocks is originally published at Insider Monkey.

Teck Resources Ltd TECK reported fourth-quarter 2021 adjusted earnings per share (EPS) of $2.02, missing the Zacks Consensus Estimate of $2.04. The bottom line surged 470% from the prior-year quarter, driven by higher prices of its principal products. These were partly offset by lower sales volumes, higher operating costs and the strengthening of the Canadian dollar.Including one-time items, the company reported EPS of $2.17 against the prior-year quarter’s loss per share of 67 cents.Net sales amounted to $3,495 million, surging 78% year over year. The top line also missed the Zacks Consensus Estimate of $3,695 million.The steelmaking coal sales volumes declined 23% year over year to 5.1 million tons and were lower than the company’s guidance owing to logistics chain disruptions resulting from the floods in British Columbia (B.C) and extremely cold weather in late December. Of this, the company sold 1.8 million tons of steelmaking coal to China. The copper sales volume declined 11% year over year in the fourth quarter due to the unfavorable impact of B.C floods on Highland Valley Copper (HVC) sales volume. Zinc sales volume declined 11% year on year owing to a late start to the shipping season, weather-related delays at Red Dog and operational issues at Trail operation.The gross profit, before depreciation and amortization, came in at $1,968 million compared with the year-ago quarter’s $701 million. The gross margin came in at 56.3% compared with the year-ago quarter’s 35.6%. The adjusted EBITDA was $2,001 million, up 210% from the year-earlier period’s levels. The EBITDA margin came in at 57% in the fourth quarter compared with the year-earlier quarter’s 33%.

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

Segment Performance

The Steelmaking Coal segment reported sales of $1,813 million, reflecting a year-over-year jump of 174%. The segment reported an operating profit of $1,185 million against the operating loss of $70 million in the prior-year quarter.The Copper segment’s net sales climbed 16% year over year to $733 million in the December-end quarter. The segment’s operating profit was $532 million in the reported quarter compared with the year-ago quarter’s $305 million.The Zinc segment’s net sales were up 38% year over year to $783 million during the reported quarter. The segment’s operating profit surged 133% to $175 million during this period.The Energy segment’s net sales surged 55% year over year to $167 million in the fourth quarter. The segment incurred an operating loss of $30 million compared with the prior-year quarter’s $510 million.

Financials

Teck Resources generated a cash flow of $3,760 million from operating activities in 2021 compared with $1,231 million in 2020. The company had cash and cash equivalents of $1,133 million at the end of 2021 compared with $354 million at 2020-end. Total debt was $6,403 million at the end of 2021 compared with $5,470 million at the end of the prior year.

Project Updates

The progression of its flagship QB2 copper growth was completed 77% during the fourth quarter. Teck Resources continues to expect the first production in the second half of 2022.

2021 Performance

Teck Resources reported an adjusted EPS of $4.52 in 2021 compared with 78 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of $4.39. Including one-time items, the bottom line came in at $4.25 against a loss of $1.21 per share in 2020.Sales were up 61% year over year to $10.74 billion. The top line missed the Zacks Consensus Estimate of $10.89 billion.

Guidance

Teck Resources expects steelmaking coal production between 24.5 million tons and 25.5 million tons for 2022. Copper production is anticipated within 273,000-290,000 tons. Zinc production is projected between 630,000 tons and 665,000 tons. The company estimates Bitumen production for 2022 between 12 million barrels and 14.4 million barrels.For first-quarter 2022, the company expects sales of zinc in concentrate in the range of 130,000-150,000 tons at Red Dog. Steelmaking coal sales are projected to be 6.1-6.5 million tons for the first quarter. The company will continue to prioritize the available spot sales to China. The sales to Chinese customers are priced at the CFR China price assessments, which are higher than the FOB Australia price assessments, thereby boosting its overall realized price.

Price Performance

The company’s shares have soared 67.8% in the past year compared with the industry’s rally of 8.3%.

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Zacks Rank & Stocks to Consider

Teck Resources currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the basic materials space include Commercial Metals Company CMC, AdvanSix Inc ASIX and Allegheny Technologies Incorporated ATI. While CMC and ASIX sport a Zacks Rank #1 (Strong Buy), ATI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Commercial Metals has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised upward by 23% in the past 60 days.Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13.1%. CMC’s shares have surged around 44.7% in a year.AdvanSix has an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 9.7% in the past 60 days.AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average surprise being 23.6%. ASIX has appreciated around 30.1% in a year.Allegheny has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 45.6% upward in the past 60 days.Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 20.9% over 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 Allegheny Technologies Incorporated (ATI) : Free Stock Analysis Report Commercial Metals Company (CMC) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report AdvanSix (ASIX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Global mining company Anglo American (AAL.L) posted record full year earnings of $20.6bn (£15.3bn) and more than tripled its annual payout to shareholders, as soaring commodity prices boosted profits.

The mining giant’s earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 111% to $20.6bn, from $9.8bn in 2020, with profits attributable to shareholders rising to $8.6bn.

Anglo American has set aside $2.1bn as final dividend, equal to $1.18 per share, after already paying out $4.1bn, including $1bn special dividend and $1bn buyback.

Including dividends and buybacks announced alongside half-year results in July, Anglo will return more than $6.2bn to investors for the 2021 financial year, a record for the 104-year-old company.

“These are clearly the strongest results we have ever posted,” outgoing CEO Mark Cutifani said.

Cutifani will step down in April after nearly a decade at the helm and hand over to Duncan Wanblad, currently the company's director of strategy and business development.

Supply restraints have sent commodity prices to record highs over the past year, which have boosted profits across the sector.

“Prices have been very much driven by supply struggling to keep up with that demand. And I think that will probably be with us for another year or two,” Cutifani said.

Copper production was unchanged at 647,200 tonnes from 647,400 tonnes in 2020, while iron ore production increased by 3.4% to 63.8 million tonnes from 61.7 million tonnes, as easing COVID restrictions provided a better output from Kumba Iron Ore.

Anglo American shares are up 3%.Chart: Yahoo Finance UK

The company cut its 2022 copper production guidance to 660,000-750,000 metric tons from the previous range of 680,000-760,000 tons. Anglo American said this was driven by reduced workforce availability in Peru due to the spread of the Omicron variant, which hampered progress at its Quellaveco project.

The firm also said it was planning to ramp up investment in its Woodsmith project, near Whitby in Yorkshire.

“In a year of two distinct halves, we recorded strong demand and prices for many products as economies recouped lost ground, spurred by government stimulus,” Cutifani said.

“Copper and PGMs [platinum group metals] – essential to the global decarbonisation imperative – and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance.”

Net debt had dropped to $3.8bn by the end of 2021 from $5.5bn a year earlier while capital expenditure rose 48% to $565m as spending on projects deferred in 2020 because of the coronavirus pandemic picked up again.

Since 2017, Anglo has returned $12.2bn to shareholders and invested $18bn in the business.

Mining companies have been delivering record profits and cash returns. This week Rio Tinto (RIO) declared $16.8bn in dividends, the second biggest in UK corporate history. Glencore (GLEN.L) and BHP (BHP) also recorded strong results and handed bumper payouts to investors.

Watch: How does inflation affect interest rates?

Teck Resources Ltd

Additional buybacks to be considered regularly

VANCOUVER, British Columbia, Feb. 23, 2022 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that its Board of Directors has approved an amended dividend policy, declared a dividend and authorized the repurchase of up to $100 million of Class B subordinate voting shares in 2022.

Under the new dividend policy, the annual base dividend has been increased from $0.20 per share to $0.50 per share. In accordance with the new dividend policy and Teck’s Capital Allocation Framework, Teck’s Board of Directors declared an eligible dividend of $0.625 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on March 31, 2022, to shareholders of record at the close of business on March 15, 2022, consisting of the $0.125 per share quarterly base dividend and a supplemental dividend of $0.50 per share.

In addition to the dividend payment, the Board has granted management the authority to purchase up to $100 million of Class B subordinate voting shares annually. Additional buybacks will be considered regularly. Taking into account the new annual base dividend in 2022, the supplemental dividend, and assuming the $100 million in share repurchases, these initiatives represent approximately $635 million in aggregate of dividends and potential share repurchases.

All share repurchases are expected to be made in accordance with Teck’s previously announced normal course issuer bid program, or any renewal thereof, or by such other means as may be permitted under applicable securities laws. The current program authorizes Teck to purchase up to 40 million Class B subordinate voting shares through the period ending November 1, 2022. Any repurchases following that date may depend on regulatory approval of a renewed normal course issuer bid program. Teck intends to purchase shares opportunistically. The company will determine the timing of any purchases, and may repurchase fewer or a greater number of shares, subject to the requirements of the issuer bid program and applicable securities laws.

Forward-Looking StatementsThis press release contains certain forward-looking statements within the meaning of the Unites States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or achieved. Forward-looking statements include statements regarding concerning Teck’s intention to make purchases of Class B subordinated voting shares, and Teck’s expectations regarding the amount of funds to be spent to purchase Class B subordinated voting shares, the expectation that up to $100 million, or any, Class B subordinated voting shares will be repurchased annually, and the intention to continue the annual base dividend of $0.50 per share.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Factors that may cause actual results to vary include, but are not limited to, the ability to acquire Class B Shares in the market through the normal course issuer bid and in compliance with regulatory requirements, share price volatility, negative changes to commodity prices, availability of funds to purchase shares, alternative uses for funds and other risk factors impacting Teck’s business as detailed in Teck’s annual information form and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission. Declaration of dividends is at the discretion of the Board and dividends, as well as share repurchases, are subject to conditions under corporate law. Any of the foregoing may have the result of restricting future dividends or share repurchases. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document, except as may be required under applicable securities laws.

About TeckAs one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.

Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations & Strategic Analysis604.699.4621fraser.phillips@teck.com

Media Contact:Chris Stannell Public Relations Manager604.699.4368chris.stannell@teck.com

Teck Resources Ltd

VANCOUVER, British Columbia, Feb. 23, 2022 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that three additional independent directors have been appointed to the Board. Mr. Masaru Tani was appointed effective December 17, 2021 and Mr. Paul Schiodtz and Ms. Sarah Strunk have been appointed effective February 23, 2022.

Masaru Tani has held various positions with Sumitomo Metal Mining Co., Ltd. since 1984 and is currently Qualified Executive of Sumitomo Metal Mining Co., Ltd and the President of Sumitomo Metal Mining Canada Ltd. and based in Vancouver. He replaced Mr. Eiichi Fukuda, who retired effective December 2, 2021. Teck would like to thank Mr. Fukuda for his many contributions during his years of service on the Board.

Sarah Strunk is Chair of the Board of Directors of the law firm Fennemore Craig, where she has represented numerous clients in the mining and natural resource industry over the past three decades. She practices business and finance law, with an emphasis on mergers and acquisitions, corporate governance, international sales contracts, and exploration projects. Ms. Strunk was previously Corporate Counsel to the copper and molybdenum division of Cyprus Amax Minerals Company. She has served on the Board of the Arizona Mining Association and was a trustee of the Rocky Mountain Mineral Law Foundation. Ms. Strunk is based in Coronado, California.

Paul Schiodtz is Chairman of the Board of Directors of the Asociacion Chilena de Seguridad, the largest worker health and safety organization in Chile. He has worked as an executive in the forestry, methanol and mining industries in Chile, the United States and Canada. He is a council member of the Sociedad de Fomento Fabril and the former Chair of the Chile-Canada Chamber of Commerce and the Chilean Chemical Industry Association. Mr. Schiodtz is based in Santiago, Chile.

Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations & Strategic Analysis604.699.4621fraser.phillips@teck.com

Media Contact:Chris Stannell Public Relations Manager604.699.4368chris.stannell@teck.com

Mining stocks, among the stock market’s best groups lately, are in focus this week with earnings from Teck, Vale and Rio Tinto.

Teck Resources Ltd

VANCOUVER, British Columbia, Feb. 24, 2022 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) President and Chief Executive Officer Don Lindsay will be presenting at BMO Capital Markets’ 31st Annual Global Metals & Mining conference on Monday, February 28, 2022 at 2:00 p.m. Eastern/11:00 a.m. Pacific time. The investor presentation will include information on company strategy, financial performance, and outlook for the company’s business units.

The presentation will be webcast through the following link at: https://bmo.qumucloud.com/view/2022-gmm-teck.

Alternatively, the webcast with supporting slides will be available on Teck’s website at: www.teck.com.

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

Media Contact:Chris Stannell Public Relations Manager604.699.4368chris.stannell@teck.com

Teck Resources Ltd (TECK) came out with quarterly earnings of $2.02 per share, missing the Zacks Consensus Estimate of $2.04 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -0.98%. A quarter ago, it was expected that this company would post earnings of $1.07 per share when it actually produced earnings of $1.49, delivering a surprise of 39.25%.

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

Teck Resources Ltd , which belongs to the Zacks Mining – Miscellaneous industry, posted revenues of $3.5 billion for the quarter ended December 2021, missing the Zacks Consensus Estimate by 6.72%. This compares to year-ago revenues of $1.96 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

Teck Resources Ltd shares have added about 23% since the beginning of the year versus the S&P 500's decline of -11.3%.

What's Next for Teck Resources Ltd?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.50 on $3.02 billion in revenues for the coming quarter and $5.18 on $11.81 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Miscellaneous is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Silica Holdings (SLCA), has yet to report results for the quarter ended December 2021. The results are expected to be released on February 25.

This commercial silica producer is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of -15.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Silica Holdings' revenues are expected to be $255.1 million, up 12.2% from the year-ago quarter.

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 Teck Resources Ltd (TECK) : Free Stock Analysis Report U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

(Adds details on forecast)

Feb 24 (Reuters) – Canadian miner Teck Resources Ltd reported a better-than expected fourth-quarter profit on Thursday, driven by higher prices for copper and steelmaking coal.

Demand for copper and coal has risen as global economies recover further from pandemic lows. Copper prices rose 25% in 2021, also boosted by tight supplies, falling inventories and a pick-up in electric vehicle sales, while coal prices hit record a high in the final quarter of last year.

Teck said its average price realized for copper rose about 35% year-on-year in the fourth quarter, while production fell 7% to 72,600 tonnes, hurt by lower output from its Carmen de Andacollo mine as a result of lower ore grades. Realized steelmaking coal prices more than tripled to $351 per tonne.

Copper production for 2022 is expected at 273,000 tonnes to 290,000 tonnes, compared with 287,000 tonnes last year. Steelmaking coal sales are seen between 6.1 million tonnes and 6.5 million tonnes for the first quarter, compared with 6.2 million tonnes in the same period of 2020.

The miner is exploring options for its metallurgical coal business, including a sale or spinoff that could value the unit at as much as $8 billion, according to media reports.

The company's adjusted quarterly profit of C$2.54 per share topped analysts' estimate of C$2.39 per share, according to Refinitiv IBES.

($1 = 1.2787 Canadian dollars) (Reporting by Rithika Krishna in Bengaluru; Editing by Subhranshu Sahu)

Rio Tinto (RIO.L) posted bumper annual profits and said it would pay shareholders a record final dividend of $7.7bn (£5.6bn) as it cashes in on soaring commodity prices.

Profits surged 72% on 2020, reaching the highest levels in the company's 149-year history, as iron ore earnings roughly doubled.

The firm paid out a total dividend for 2021 worth $16.8bn – a record for the miner and one of the largest in UK corporate history.

The FTSE 100 (^FTSE) mining giant announced it reaped annual underlying earnings of $21.4bn in 2021 thanks to surging iron ore prices and strong demand from China.

Underlying ebitda (earnings before interest, tax deprecation, and amortisation) rose 58% compared to 2020 to $37.7bn, on revenue of $63.5bn. It ended the year with a net cash position of $1.6bn.

Ebitda is a measure tracked by analyst, and the results were broadly in line with market expectations

Iron ore hit a record of over $230 a tonne in May, however, prices in the commodity have been volatile.

The commodity retreated to the mid $80s in the second half of last year as China reined in the output of its steel makers to meet stricter environmental standards. The market has since rallied, touching $150 earlier in 2022 after monetary easing and relaxed climate targets raised confidence in robust Chinese steel output in the coming year.

Rio Tinto CEO Jakob Stausholm said "the recovery of the global economy, driven by industrial production, resulted in significant price strength for our major commodities" and allowed for the results.

The London-based group expects the cost of production at its Pilbara iron ore business in the range of $19.50 to $21 per ton in 2022, compared to $18.60 per ton in 2022.

Looking ahead it expects capital expenditure of about $8bn this year, rising to around $9bn to $10bn in 2023 and 2024.

Shares in the company declined 0.2% on Wednesday morning in London.

Graph: Yahoo Finance

It comes as the Anglo-Australian miner is reeling from a damning report detailing a culture of racism and harassment and claims of sexual assault at the company.

Stausholm who took the reins at the company just over a year ago, published the report and has also been working to overhaul the miner's reputation after it destroyed an ancient Aboriginal site in 2020.

Rio Tinto also announced plans to diversify its business. "Our agenda is an ambitious, multi-year journey which we are determined to deliver and we have already taken the first steps, with underground operations under way following the Oyu Tolgoi agreement and a binding agreement to acquire the Rincon lithium project in Argentina," Satusholm said.

Mining companies have emerged as dividend-paying stalwarts of the London stock market since the coronavirus pandemic.

Glencore (GLEN.L), the world’s biggest miner, announced a $4bn payout, while BHP (BHP) recently posted strong results and declared a record $7.6bn half-year dividend, and Chile-focused miner Antofagasta (ANTO.L) reported a record dividend of $1.4bn earlier this week.

Watch: Why are gas prices rising?

(Adds rescheduling of Wednesday assembly due to lack of quorum)

By Tatiana Bautzer and Marta Nogueira

SAO PAULO/RIO DE JANEIRO, Feb 23 (Reuters) – Samarco Mineracao faces a possible creditor standoff at a meeting which has been scheduled for March 10 to vote on debt restructuring proposals which would allow the Brazilian iron ore miner to exit bankruptcy protection.

Creditors of the iron ore joint venture between Vale SA and BHP Group were expected to vote on Wednesday on the latest proposals to restructure some $5 billion in financial debt.

But due to a lack of quorum, the meeting was rescheduled, Samarco said in a statement. A final vote will now be held on to March 10, the eve of the deadline for Samarco's restructuring, regardless of the number of creditors present.

Samarco faces uncertainty on another front too as federal and state authorities have been in talks with it since last year on potential reparations related to a deadly dam burst in 2015, while state prosecutors in Minas Gerais said they expect to begin discussing total amounts by next month.

Documents released by the court-appointed administrators of Samarco's bankruptcy proceedings show that its creditors have demanded payment of 100% of the debt due, with accrued interest in new bonds guaranteed by the shareholders Vale and BHP.

Samarco, for its part, has proposed in December a 75% discount to bondholders, with the payment in bonds that will mature in 2041. Another alternative would be to convert the debt into equity, with creditors reaching a stake above 15%.

Advisors to bondholders, who requested anonymity, say their clients will vote down Samarco's current proposal. .

An ad hoc creditors group on Tuesday proposed that former Vale and Nexa Resources executive Tito Martins should become chairman in "a fundamental step" towards a "New Samarco".

Simon Duncombe, vice-president for Brazil Non-Operated Joint Ventures at BHP, said this proposal will not change the situation, adding that while creditors are likely to demand the appointment of new executives, Samarco "doesn't have a management problem".

Earlier this month, Vale signed a 20-year production agreement with Samarco that is expected to add $5.1 billion in net revenue by 2042 and bring forward its iron ore output goal.

If its creditors decide to reject Samarco's proposal, Brazilian law allows them to put forward alternative plans.

In that case, Duncombe said Vale and BHP would demand the right to vote in an assembly of creditors, which include asset managers York, Ashmore, Canyon, Maple Rock and Solus.

Samarco's bondholders are represented by law firms Padis Mattar Advogados, Ferro, Castro Neves (FCDG) and Davis Polk and advised by investment bank Houlihan Lokey.

Samarco is represented by JPMorgan Chase, Vale by Moelis and BHP by Rothschild. (Reporting by Tatiana Bautzer in Sao Paulo and Marta Nogueira in Rio de Janeiro; Editing by Alexander Smith)

By Tatiana Bautzer and Marta Nogueira

SAO PAULO/RIO DE JANEIRO, Feb 23 (Reuters) – Samarco Mineracao faces a possible creditor standoff at meetings starting on Wednesday to vote on debt restructuring proposals which would allow the Brazilian iron ore miner to exit bankruptcy protection.

Creditors of the iron ore joint venture between Vale SA and BHP Group are expected to vote on the latest proposals to restructure some $5 billion in financial debt.

But the two sides remain far apart and if the meeting lacks a quorum, a final vote will be held on March 10, the day before the current deadline for Samarco's restructuring.

Advisors to bondholders, who requested anonymity, say their clients will vote down Samarco's current proposal.

An ad hoc creditors group on Tuesday proposed that former Vale and Nexa Resources executive Tito Martins should become chairman in "a fundamental step" towards a "New Samarco".

Earlier this month, Vale signed a 20-year production agreement with Samarco that is expected to add $5.1 billion in net revenue by 2042 and bring forward its iron ore output goal.

If its creditors decide to reject Samarco's proposal, Brazilain law allows them to put forward alternative plans.

In that case, Duncombe said Vale and BHP would demand the right to vote in an assembly of creditors, which include asset managers York, Ashmore, Canyon, Maple Rock and Solus.

Samarco's bondholders are represented by law firms Padis Mattar Advogados, Ferro, Castro Neves (FCDG) and Davis Polk and advised by investment bank Houlihan Lokey.

Samarco is represented by JPMorgan Chase, Vale by Moelis and BHP by Rothschild. (Reporting by Tatiana Bautzer in Sao Paulo and Marta Nogueira in Rio de Janeiro; Editing by Alexander Smith)

(Bloomberg) — Teck Resources Ltd. is exploring the sale of a minority stake in its metallurgical coal business as it seeks to take advantage of surging prices for the commodity, people familiar with the matter said.

Most Read from Bloomberg Businessweek

BHP Group Limited BHP reported underlying attributable profit from continuing operations of $9.7 billion in the first half of fiscal 2022 (ended Dec 31, 2021), which marked a year-over-year surge of 57%, reflecting higher prices and strong operational performance. Underlying earnings per share came in at $1.92 compared with $1.22 earned in the prior-year period. Earnings per American Depositary Share (ADS) came in at $3.83 for the reported period. Notably, BHP’s each American Depositary Shares represents two fully-paid ordinary shares.For total operations, the company’s underlying attributable profit improved 77% year over year to $10.7 billion in the reported period. Including an exceptional loss of $1.2 billion that includes the impact of the Samarco dam failure and impairment of US deferred tax assets no longer expected to be recoverable after the Petroleum demerger. BHP Group’s attributable profit was $9.4 billion in the six-month period ended Dec 31, 2021. The figure reflects a 144% growth from the prior year.Revenues for the first half of fiscal 2022 totaled $30.5 billion, up 27% year on year. The Iron ore segment’s revenues increased 12% year over year to $16 billion. Revenues in the Copper segment rose 20% to $8 billion. Meanwhile, revenues at the Coal segment surged 147% year over year to $5.4 billion.Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations increased 33% year over year to $18.5 billion. This was driven by higher average realized prices for all of its major commodities, near-record iron-ore production volumes at WAIO, higher concentrate sales at Spence, benefits from cost-reduction actions and positive impact of movements in the Australian dollar and Chilean peso against the US dollar. However, higher costs associated with COVID-19, inflated diesel and acid prices and other inflationary pressures offset some of these gains.Underlying EBITDA was up 9% year on year to $11.1 billion for the Iron ore segment. The same was up 14% to $4.3 billion for the Copper segment. The Coal segment’s underlying EBITDA was $2.6 billion against a loss of $0.2 billion in the prior year.

Financial Position

As of Dec 31, 2021, BHP Group had cash and cash equivalents of $12.4 billion, down from $15.2 billion as of Jun 30, 2021. In the half year ended Dec 31, 2021, the company generated $11.5 billion of operating cash flow from continuing operations compared with $9.1 billion recorded in the prior-year comparable period. This improvement can be attributed to higher realized prices across major commodities and strong operational performance. Net debt was $6.1 billion as of Dec 31, 2021, lower than $11.8 billion a year earlier. BHP’s board has announced to pay a record interim dividend of $1.50 per share or a total of $7.6 billion. This translates to a payout ratio of 78%.

Fiscal 2022 Guidance

BHP affirmed its production guidance for iron ore at 249-259 Mt for fiscal 2022 compared with 253.5 Mt produced in fiscal 2021. The company expects copper production to come near the low end of its guided range of 1,590 kt and 1,760 kt. Production guidance of Metallurgical coal is at 38-41 Mt. The guidance for energy coal production remains at 13-15 Mt. Nickel production for fiscal 2022 has been retained between 85 kt and 95 kt.Escondida unit cost is anticipated at $1.20-$1.40 per pound. Queensland Coal unit cost for the fiscal is expected at $85-$94 per ton. NSWEC unit costs are predicted between $62 per ton and $70 per ton. The company stated WAIO unit cost guidance is tracking at the lower end of the guidance of $17.50-$18.50 per ton.

Other Updates

BHP expects to complete the proposed merger of its Petroleum business with Woodside in the June quarter, subject to the satisfaction of conditions precedent, including approval by Woodside shareholders.In January 2022, BHP completed the unification of BHP’s dual-listed corporate structure. Also, the company completed the Cerrejón divestment last month. The divestment of BHP Mitsui Coal (BMC) is expected by the middle of this year. Meanwhile, the review process for New South Wales Energy Coal (NSWEC) is progressing.

Price PerformanceZacks Investment Research

Image Source: Zacks Investment Research

BHP Group's shares have fallen 3% over the past year compared with the industry’s decline of 2.4%.

Zacks Rank & Other Stocks to Consider

BHP currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company CMC, Albemarle Corporation ALB and AdvanSix Inc. ASIX.Commercial Metals, sporting a Zacks Rank #1, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised upward by 22.7% over the past 60 days.Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13.1%. CMC has rallied around 61% in a year.Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 56.2% for the current year. ALB's consensus estimate for the current year has been revised 8.9% upward over the past 60 days.Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.1%. ALB shares have gained around 38% in a year.AdvanSix, carrying a Zacks Rank #2, has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised upward by 3.2% in the past 60 days.AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 46.9%. ASIX has appreciated around 63% 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 BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Albemarle Corporation (ALB) : Free Stock Analysis Report Commercial Metals Company (CMC) : Free Stock Analysis Report AdvanSix (ASIX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Gold Fields (GFI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Gold Fields is one of 243 companies in the Basic Materials group. The Basic Materials group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Gold Fields is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for GFI's full-year earnings has moved 15.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that GFI has returned about 11.7% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 2% on average. This shows that Gold Fields is outperforming its peers so far this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is BHP (BHP). The stock has returned 13.1% year-to-date.

In BHP's case, the consensus EPS estimate for the current year increased 10% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Gold Fields belongs to the Mining – Gold industry, a group that includes 37 individual stocks and currently sits at #146 in the Zacks Industry Rank. Stocks in this group have gained about 5% so far this year, so GFI is performing better this group in terms of year-to-date returns.

BHP, however, belongs to the Mining – Miscellaneous industry. Currently, this 50-stock industry is ranked #92. The industry has moved +10.6% so far this year.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Gold Fields and BHP as they could maintain their solid performance.

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 Gold Fields Limited (GFI) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

The Dow Jones Industrial Average surged Tuesday after Russia withdrew some, advanced other troops near the Ukraine border.

Teck Resources Ltd

VANCOUVER, British Columbia, Feb. 15, 2022 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") and MEDATech today announced the pilot of a fully electric on-highway transport truck to haul copper concentrate, marking the first use of a battery-electric truck to haul copper concentrate worldwide. The truck will travel between Teck’s Highland Valley Copper Operations (HVC) in south-central British Columbia (B.C.) and a rail loading facility in Ashcroft, B.C.

This pilot of the MEDATech ALTDRIVE-powered fifth-wheel Western Star will help to advance Teck’s goal of displacing the equivalent of 1,000 internal combustion (ICE) vehicles by 2025. It will also provide valuable learnings for the electrification of Teck’s vehicle fleet on the path to achieving the company’s goal of reducing the carbon intensity of its operations by 33% by 2030 and becoming a carbon-neutral operator by 2050.

“Testing and implementing new electric vehicle technologies is one way we are taking concrete steps towards achieving our goal of being carbon neutral across our operations,” said Don Lindsay, President and CEO, Teck. “Teck is already one of the world’s lowest carbon-intensity producers of copper, zinc and steelmaking coal, which are key materials to enable the low-carbon transition, and we are committed to further reducing the carbon intensity of our operations to support a cleaner future.”

The pilot is expected to begin in summer 2022 and is projected to eliminate 418 tonnes of CO2 annually – the equivalent of approximately 90 passenger cars – for the first pilot vehicle, while also reducing costs through fuel savings and reduced maintenance.

“The fully-electric ALTDRIVE system is designed for this haul cycle at HVC requiring a vehicle that weighs 65,000kg loaded, 25,000kg unloaded, and completes the same four to five 95-kilometre roundtrips every workday,” says Robert Rennie, President, MEDATech. “Since the truck batteries will charge on the downhill haul through regenerative braking, the rig will require only a short battery recharge at the Ashcroft, B.C. rail terminal so the haul cycle time is expected to be the same as a conventional truck.”

The battery-electric drive system is expected to work more efficiently than a comparable diesel engine, outputting a constant 620kW (approximately 830 horsepower) and is configured to continuously output almost double the amount of torque.

This pilot project builds on Teck’s GHG reduction initiatives, including the recently announced agreement to work towards deploying 30 of Caterpillar’s zero-emissions large haul trucks at its steelmaking coal operations in the Elk Valley.

Click here to learn more about Teck’s approach to taking action on climate change.

Media Download:Click here for an image of a MEDATech ALTDRIVE-powered fifth-wheel Western Star truck.

About MEDATechMEDATech has been designing and building custom mobile heavy equipment since 2003. Our clients are in the Mining, Construction, Waste, Transportation, and Energy sectors all over the world. The one thing they all want is machines that are more efficient, safe, durable, precise and environmentally friendly. So that’s what we deliver.

MEDATech has 3 divisions:

Engineering services – from consulting to engineer/design/build to industrial software development
ALTDRIVE – all-electric powertrains
BORTERRA – advanced drilling equipment

The people at MEDATech are engineers, technicians, operators and mechanics. They have worked in mines and in other industries where they operated the kinds of heavy equipment that the company builds. This has allowed MEDATech to become expert in building great machines, and in consulting on the solutions clients need.

MEDATech’s tried-and-true ALTDRIVE™ powertrain solution is the result of more than 10 years of development. ALTDRIVE powertrains can be found in mining-related vehicles all over North America.

Media ContactsTeck Media Contact:Chris Stannell Public Relations Manager, Teck 604.699.4368 chris.stannell@teck.com

MEDATech Media Contact:Carl Michener¡Outwrite! Communications416.476.7484 carl@outwrite.ca

For Immediate Release

Chicago, IL – February 15, 2022 – Stocks in this week’s article are Pfizer PFE, Teck Resources TECK, NXP Semiconductors NXPI, Equinor EQNR and KB Home KBH.

5 Lucrative GARP Stocks with Discounted PEG

The investing track of the Oracle of Omaha over the past few decades shows a gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor. The logic behind this is the effectiveness of a mixed investment strategy over pure-play, value or growth approaches of investments.

Several stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here we will discuss the success of five such stocks. These include Pfizer, Teck Resources, NXP Semiconductors, Equinor and KB Home.

A Few More Words on GARP

A pure-play value investor misses the chance of betting on stocks that have bright long-term prospects. In the same way, growth investors often end up investing in expensive stocks. In other words, to make a long-term investment more effective, the principles of both value and growth strategies need to be combined.

The quest for a mixed investment strategy led to the introduction of the GARP approach. What GARPers look for is whether the stocks are somewhat undervalued and have solid sustainable growth potential (Investopedia).

One of the fundamental metrics for finding GARP is the price/earnings growth ratio (PEG). Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.

The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate

It relates a stock’s P/E ratio with future earnings growth rate.

While P/E alone only gives the idea of stocks, which are trading at a discount, PEG, while adding the GROWTH element to it, helps to find those stocks that have solid future potential.

A lower PEG ratio, preferably less than 1, is always better for GARP investors.

Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66 that indicates both undervaluation and future growth potential.

Unfortunately, this ratio is often neglected due to investors' limitations to calculate the future earnings growth rate of a stock.

There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates such as the forecast of the first three years at a very high growth rate followed by a sustainable but lower growth rate in the long term.

Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1867082/5-lucrative-garp-stocks-with-discounted-peg?art_rec=quote-stock_overview-zacks_news-ID02-txt-1867082

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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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 Pfizer Inc. (PFE) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report KB Home (KBH) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

The Dow Jones Industrial Average fell Monday, threatening to add to heavy losses from Friday’s market sell-off. Apple and Tesla dropped.

Several stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here we will discuss the success of five such stocks. These include Pfizer PFE, Teck Resources TECK, NXP Semiconductors NXPI, Equinor EQNR and KB Home KBH.

A Few More Words on GARP

The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate

It relates a stock’s P/E ratio with future earnings growth rate.

While P/E alone only gives the idea of stocks, which are trading at a discount, PEG, while adding the GROWTH element to it, helps to find those stocks that have solid future potential.

A lower PEG ratio, preferably less than 1, is always better for GARP investors.

Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66 that indicates both undervaluation and future growth potential.

Unfortunately, this ratio is often neglected due to investors' limitations to calculate the future earnings growth rate of a stock.

Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.

Here are the screening criteria for a winning strategy:

PEG Ratio less than X Industry Median

P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose)

Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.) You can see the complete list of today's Zacks #1 Rank stocks here.

Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)

Average 20 Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.

Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.

Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2, or 3 (Hold) offer the best upside potential.

Here are the five of the 22 stocks that qualified the screening:

Pfizer: Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth. Pfizer markets a wide range of drugs and vaccines. Its business comprises six business units — Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine.

Pfizer is an impressive value investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, Pfizer also has an impressive long-term expected growth rate of 12.5%.

Teck Resources: Vancouver, Canada-based Teck Resources is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy.Teck Resources has a portfolio of world-class assets in stable jurisdictions and a solid pipeline of projects.

Teck Resources can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 37.9%.

NXP Semiconductors: NXP Semiconductors provides high-performance mixed-signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise. These solutions are used in a wide range of applications, namely automotive, wireless infrastructure, lighting, industrial, mobile, consumer and computing.

NXP Semiconductors has an impressive long-term expected growth rate of 22%. The stock currently has a Value Score of B and a Zacks Rank #2.

Equinor: Headquartered in Stavanger, Norway, Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil.

Apart from a discounted PEG and P/E, Equinor has a Value Score of A and holds a Zacks Rank #1. Equinor has an impressive long-term expected growth rate of 49.4%.

KB Home: Based in Los Angeles, CA, KB Home is a well-known homebuilder in the United States and one of the largest in the state. The company’s Homebuilding operations include building and designing homes that cater to first-time, move-up and active adult homebuyers on acquired or developed lands. KB Home also builds attached and detached single-family homes, town homes and condominiums.

KB Home has an impressive long-term expected growth rate of 17.1%. The stock currently has a Value Score of A and a Zacks Rank #1.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.

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

The Dow Jones Industrial Average rose Friday after Thursday’s stock market sell-off fueled by hot inflation data and surging Treasury yields.

The market rally sold off Thursday as bond yields soared on hot inflation data and expectations of a “dramatically” more-hawkish Fed.

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