Analysts expect lower trading volumes and potentially a quiet day ahead due to the Columbus Day holiday.

London Metal Exchange (LME) has teamed up with Germany’s Metalshub to establish an online spot trading platform for base metals.

The collaboration will start with low carbon aluminium early next year in an attempt to boost its sustainability drive. 

Over the coming months, the exchange will undertake focused market engagement with its industrial user groups globally in order to develop a suitable product pipeline.

LME, which was established in 1877, is the world’s oldest and largest market for industrial metals. It said on Monday that it is beginning with aluminium because power is a major component in the smelting process, often up to 40%.

However, aluminium is important for the energy transition, including in the automotive industry where it is valued for its lightweighting properties in electric vehicles (EVs), LME said.

Read more: IPO Watch: EDF's charging firm Pod Point plans London Stock Exchange listing

Its primary aluminium contract has the highest volumes of any contract traded on the exchange, however due to the coronavirus pandemic overall volumes have declined.

The LME temporarily closed its floor for open outcry trading for 18-months amid the health crisis, reopening only last month with a new structure. During the pandemic, the bourse shifted to an electronic system to determine daily benchmark prices.

Metalshub currently focuses on the steel industry, providing an array of ferroalloys as well as various base and minor metal products via its marketplace. Its second most traded product is nickel, which is also traded on the LME.

The German bourse expects its turnover to more than triple this year to around €1bn (£850m, $1.16bn) after attracting big clients such as miner Anglo American (AAL.L).

Read more: Anglo American's profit soars 1,000% thanks to China and battery demand

“We are delighted to be working with Metalshub to develop and support the delivery of digital spot trading services to our global industrial user base,” Robin Martin, LME head of market development, said.

“Physical metals trading needs are increasingly being met with digital solutions, which offer benefits such as transparency, efficiency and easily evidenced compliance with procurement requirements.

“As the global centre for industrial metals futures trading, the LME is well-positioned to work with the outstanding Metalshub management team, to help expand the Metalshub product base and develop its direct connectivity with the physical market.”

Watch: Why the LME Backtracked on closing trading floor for good

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Southern Copper (SCCO), which belongs to the Zacks Mining – Non Ferrous industry.

This miner has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.23%.

For the most recent quarter, Southern Copper was expected to post earnings of $1.15 per share, but it reported $1.21 per share instead, representing a surprise of 5.22%. For the previous quarter, the consensus estimate was $0.89 per share, while it actually produced $0.99 per share, a surprise of 11.24%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Southern Copper. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

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

Southern Copper has an Earnings ESP of +2.07% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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Great Panther Mining Limited GPL produced 22,444 gold equivalent ounces in the third quarter of 2021, which was 44% lower than the year-ago quarter due to lesser output at all of its three wholly-owned mines — Tucano in Brazil, and Topia and the Guanajuato Mine Complex ("GMC") in Mexico. Production was primarily affected by maintenance issues at the Tucano mine, while output at Topia and the GMC mines were impacted by the implementation of the new labor laws in Mexico.

Total gold production at Tucano was 16,325 gold ounces in the third quarter, 49% lower compared to the third quarter of 2020. This was primarily due to equipment availability issues and the temporary halting in mining activities due to slope instability.

At Topia, total silver equivalent production was 242,028 silver equivalent ounces in the quarter, which was 37% lower than the year-ago quarter. Total silver equivalent production at GMC declined 17% year over year to 278,073 ounces, as production from historically mined areas and actual tonnages available were lower than estimated. The implementation of new labor laws in Mexico impacted output in both the mines as contractors adjusted to the new requirements.

Citing the lower-than-expected production in the third quarter, Great Panther Mining stated that it is currently in the process of reviewing its guidance for the full year.

The company informed that it has not yet been granted a permit from the Comisión Nacional del Agua ("CONAGUA") to expand the tailings storage facility (“TSF”) at the GMC. It only has sufficient capacity to continue milling operations until December 2021. Meanwhile, it is considering options that include processing ore at third-party facilities and longer-term tailings storage solutions.

The company is slated to release third-quarter financial results on Nov 3, 2021, after market close. Lesser production numbers, and lower gold and silver prices through the quarter are likely to reflect on results. The Zacks Consensus Estimate for the company’s sales for the quarter is currently pegged at $69.2 million, indicating a decline of 10% year over year. The estimate for earnings per share is at 3 cents, in-line with the last-year quarter.

Share Price Performance

Image Source: Zacks Investment Research

Great Panther’s shares have fallen 47.3% so far this year, compared with the industry’s decline of 22.9%.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space include Nucor Corporation NUE, Methanex Corporation MEOH and Teck Resources Ltd TECK. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an estimated earnings growth rate of 537 % for the ongoing year. So far this year, the company’s shares have appreciated 99%.

Methanex has a projected earnings growth rate of 409% for 2021. The company’s shares have gained 85% so far this year.

Teck Resources has an estimated earnings growth rate of 309% for the current year. The company’s shares have increased 99% year to date.

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Great Panther Mining Limited (GPL) : Free Stock Analysis Report

Nucor Corporation (NUE) : Free Stock Analysis Report

Methanex Corporation (MEOH) : Free Stock Analysis Report

Teck Resources Ltd (TECK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The Q3 earnings season is set to kick off this week with the banking sector slated to report numbers. Although Q3 earnings growth is expected to decelerate significantly from the breakneck pace in the first half, the earnings picture remains strong. Total S&P 500 earnings are expected to be up 26.1% from the same period last year on 13.9% higher revenues.

The earnings projection reflects the same growth expected at the start of Q3 despite the rising cost pressures amid supply-chain disruptions and labor/material shortages. This would follow the 95.0% earnings growth on 25.3% higher revenues in Q2.

Of the 16 Zacks sectors, 13 are expected to earn more relative to the year-ago quarter as autos and utilities are expected to report a decline in earnings. Transportation and energy will likely see huge earnings growth from the year-ago-quarter as transportation incurred loss of $1.8 billion and energy barely reported earnings. The other 11 sectors are expected to witness positive year-over-year earnings growth. Basic materials is expected to be the biggest contributor to S&P 500 earnings with 141.4% growth. This is likely to be followed by industrial products (25.7%), technology (21.2%) and finance (20.2%).

Given this, we have highlighted one ETF and one stock from the five sectors that could make great plays as the earnings season unfolds. These ETFs and stocks have a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

For stocks, we have added the extra criterion of a positive Earnings ESP. The combination of a Zacks Rank #3 or better and a positive ESP increases the odds of an earnings beat by 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Transportation

Travel has rebounded strongly with more Americans getting vaccinated, business and economies have reopened, consumer confidence is growing. The transport sector is expected to post strong results on the back of these positives.

iShares U.S. Transportation ETF IYT: The ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 48 securities. Within the transportation sector, railroads, and air freight and logistics take the top two spots with 33.3% and 26.7% share, respectively, while trucking (22.1%) and airlines (16.6%) round off the next two. The fund has $1.6 billion in AUM and trades in a good trading volume of around 201,000 shares a day. It charges 41 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook (read: 5 ETFs to Cash In On Record High U.S. Household Net Worth).

TFI International Inc. TFII: This company is in the transportation and logistics industry. It identifies strategic acquisitions and manages a network of subsidiaries. The stock has a Zacks Rank #2 and an Earnings ESP of +7.84%. The Zacks Consensus Estimate for the to-be-reported quarter has been revised upward by a penny over the past seven days and has 38.3% expected earnings growth. Additionally, the company delivered a four-quarter earnings surprise of 28.12%, on average, and is scheduled to report earnings on Oct 28.

Energy

The energy sector has been benefiting from higher oil prices amid global supply concerns in crude, natural gas and coal markets. Added to the oil price strength is growing fuel demand. Overall demand for fuel has rebounded to the pre-pandemic levels.

Vanguard Energy ETF VDE: This fund manages $5.5 billion in its asset base and provides exposure to a basket of 95 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. The product sees a good volume of about 1.1 million shares and charges 10 bps in annual fees. VDE has a Zacks ETF Rank #2 with a High risk outlook (read: 5 Best ETFs & Stocks of the Top Performing Energy Sector).

ConocoPhillips COP: It is primarily involved in the exploration and production of oil and natural gas. The stock has a Zacks Rank #1 and an Earnings ESP of +0.69%. The stock saw solid earnings estimate revision of 6 cents for the to-be-reported quarter over the past seven days and represents year-over-year growth of 564.5%. The company’s trailing four-quarter positive earnings surprise is 8.29% on average. The company is slated to release earnings results on Nov 12 before the opening bell.

Materials

The materials sector, which tends to be the most sensitive to global economic growth expectations, has been performing well with economic recovery gathering pace. The increase in prices of various types of raw materials added to the strength.

Materials Select Sector SPDR XLB: This is the most popular material ETF that follows the Materials Select Sector Index. It manages about $7.5 billion in its asset base and trades in volumes as heavy as around 6.6 million shares. In total, the fund holds about 28 securities in its basket and charges 12 bps in fees per year from investors. In terms of industrial exposure, chemicals dominates the portfolio with 68.7% share while metals & mining and containers & packaging round off the top three positions. The product has a Zacks ETF Rank #1 with a Medium risk outlook.

Teck Resources Ltd TECK: This company is engaged in exploring for acquiring, developing and producing natural resources in Asia, Europe and North America. The stock has a Zacks Rank #1 and an Earnings ESP of +9.27%. The stock has seen positive earnings estimate revision of 5 cents for the to-be-reported quarter over the past 30 days and delivered a four-quarter earnings surprise of 9.05%, on average. Its earnings are estimated to grow to 478% for the to-be-reported quarter. The company is slated to release earnings results on Oct 26 after the marker close.

Industrials

The optimism surrounding the reopening of global economies and increasing demand is painting a rosy picture for the cyclical sectors like industrials (read: Will Industrial ETFs Make Good Bets? Let's Find Out).

iShares U.S. Industrials ETF IYJ: This product gives exposure to U.S. companies that produce goods used in construction and manufacturing by tracking Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index. It is tilted toward capital goods’ companies at 40.4% while software services and transportation round off the next two spots with double-digit exposure each. The fund has an AUM of $1.6 billion and an average daily volume of around 80,000 shares. It charges 41 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.

Berry Global Group Inc. BERY: This company manufactures and distributes nonwoven specialty materials, engineered materials and consumer packaging products in the market. The stock has a Zacks Rank #2 and an Earnings ESP of +1.78%. It has witnessed no earnings estimate revision over the past 30 days and delivered a four-quarter earnings surprise of 17.67% on average. The company’s earnings are expected to decline 3.1% and is scheduled to report earnings on Nov 18.

Technology

The global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, IoT, wearables, VR headsets, drones, virtual reality, AI, machine learning, digital communication and 5G technology will continue to drive the sector higher.

Vanguard Information Technology ETF VGT: This fund manages $49.1 billion in its asset base and tracks the MSCI US Investable Market Information Technology 25/50 Index. The ETF has 0.10% in expense ratio while volume is solid at nearly 532,000 shares. It is a home to 342 stocks and has a Zacks ETF Rank #1 with a Medium risk outlook.

Texas Instruments Incorporated TXN: It is an original equipment manufacturer of analog, mixed signal and digital signal processing integrated circuits. The stock has a Zacks Rank #2 and an Earnings ESP of +9.22%. The stock saw positive earnings estimate revision of couple of cents for the to-be-reported quarter over the past 7 days and represents year-over-year growth of 42.1%. The company’s trailing four-quarter positive earnings surprise is 20.25% on average. The company is slated to release earnings results on Oct 26 after the closing bell.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
Berry Global Group, Inc. (BERY) : Free Stock Analysis Report
 
Materials Select Sector SPDR ETF (XLB): ETF Research Reports
 
iShares U.S. Transportation ETF (IYT): ETF Research Reports
 
Vanguard Energy ETF (VDE): ETF Research Reports
 
iShares U.S. Industrials ETF (IYJ): ETF Research Reports
 
Vanguard Information Technology ETF (VGT): ETF Research Reports
 
Teck Resources Ltd (TECK) : Free Stock Analysis Report
 
TFI International Inc. (TFII) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

The U.S. stock market fell on Monday, as higher commodity prices and bond yields weighed on stocks. Overall, “the move higher in global interest rates and commodity prices continues to be the focal point,” writes Michael Reinking, senior market strategist at New York Stock Exchange.

(Bloomberg) —

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Billionaire mining magnate Andrew Forrest is planning a massive factory to build equipment to produce green hydrogen in a key Australian coal hub.

Fortescue Metals Group Ltd.’s energy unit will build a plant with initial capacity to make two gigawatts of electrolyzers a year in Gladstone in Queensland, home to one of the world’s largest coal-export terminals. Construction will start in February with manufacturing targeted to begin in early 2023, the company said in a Sunday statement.

The initial capacity would make the plant among the largest in the world and vault Australia into early competition with China as a leading producer of the equipment. When paired with renewable energy, electrolyzers can make hydrogen that can be stored and transported and eventually converted into carbon-free energy for power or transportation.

“This initiative is a critical step in Fortescue’s transition from a highly successful pure play iron ore producer, to an even more successful green renewables and resources powerhouse,” Forrest said.

Investment by Fortescue Future Industries, initially $83 million and potentially rising to $650 million, is part of a boom for the equipment, which runs an electric current through water to separate it into hydrogen and oxygen. About 16 gigawatts of manufacturing capacity could come online by 2024, according to BloombergNEF, likely leaving the market over-saturated.

Chinese solar manufacturers have been leading that surge, with Longi Green Energy Technology Co. and Sungrow Power Supply Co. expected to commission a combined 2.5 gigawatts of manufacturing capacity by the end of 2022, BNEF said in a July report.

Fortescue will also carry out a study with fertilizer supplier Incitec Pivot Ltd. on the feasibility of converting an ammonia production facility in Brisbane from natural gas to green hydrogen, the company said in a separate Monday statement.

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The Cleveland-based steelmaker has posted record profits during the pandemic partly because it owns producers of its raw materials.

Cleveland-Cliffs Inc (NYSE: CLF) is trading higher Monday after the company announced it entered into a definitive agreement to acquire Ferrous Processing and Trading Company (FPT). The stock is also trading higher in sympathy with the price of iron ore.

Cleveland-Cliffs is set to acquire FPT for a total enterprise value of approximately $775 million.

“Cleveland-Cliffs is entering the scrap business as a major player through the acquisition of a large scrap company. Even more importantly, FPT has a very meaningful presence in prime scrap," said Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs.

FPT is among the largest processors and distributors of prime ferrous scrap in the United States.

Cleveland-Cliffs is a flat-rolled steel producer and a manufacturer of iron ore pellets in North America. It is vertically integrated from mined raw materials and direct reduced iron to primary steelmaking and downstream finishing, stamping, tooling and tubing.

CLF Price Action: Cleveland-Cliffs has traded as high as $26.50 and as low as $7.19 over a 52-week period.

The stock was up 6.06% at $21.88 at time of publication.

Photo: Khusen Rustamov from Pixabay.

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Cleveland-Cliffs is acquiring Ferrous Processing and Trading Co., a metal recycler, in a deal with an enterprise value of $775 million.

US Steel shares lead industry stocks higher Monday as surging energy prices look to blunt European production, and exports, in the months ahead.

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that Ferrexpo plc (LON:FXPO) does use debt in its business. But the real question is whether this debt is making the company risky.

When Is Debt Dangerous?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.

Check out our latest analysis for Ferrexpo

What Is Ferrexpo's Debt?

The image below, which you can click on for greater detail, shows that Ferrexpo had debt of US$15.3m at the end of June 2021, a reduction from US$334.8m over a year. However, its balance sheet shows it holds US$234.7m in cash, so it actually has US$219.3m net cash.

A Look At Ferrexpo's Liabilities

The latest balance sheet data shows that Ferrexpo had liabilities of US$281.5m due within a year, and liabilities of US$39.4m falling due after that. On the other hand, it had cash of US$234.7m and US$249.7m worth of receivables due within a year. So it can boast US$163.4m more liquid assets than total liabilities.

This surplus suggests that Ferrexpo has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Ferrexpo has more cash than debt is arguably a good indication that it can manage its debt safely.

Even more impressive was the fact that Ferrexpo grew its EBIT by 177% over twelve months. That boost will make it even easier to pay down debt going forward. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Ferrexpo's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Ferrexpo has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Ferrexpo produced sturdy free cash flow equating to 56% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.

Summing up

While it is always sensible to investigate a company's debt, in this case Ferrexpo has US$219.3m in net cash and a decent-looking balance sheet. And it impressed us with its EBIT growth of 177% over the last year. So we don't think Ferrexpo's use of debt is risky. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet – far from it. For instance, we've identified 3 warning signs for Ferrexpo (1 doesn't sit too well with us) you should be aware of.

When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.

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.

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

If you want to know who really controls Grange Resources Limited (ASX:GRR), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of AU$642m, Grange Resources is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Grange Resources.

View our latest analysis for Grange Resources

What Does The Institutional Ownership Tell Us About Grange Resources?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Grange Resources 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 Grange Resources, (below). Of course, keep in mind that there are other factors to consider, too.

Grange Resources is not owned by hedge funds. Shagang International (Australia) Pty Ltd is currently the company's largest shareholder with 26% of shares outstanding. With 22% and 6.7% of the shares outstanding respectively, Jiangsu Shagang Group Co., Ltd. and Cheung Ko are the second and third largest shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Grange Resources

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in Grange Resources Limited. It has a market capitalization of just AU$642m, and insiders have AU$61m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 29% ownership, the general public have some degree of sway over Grange Resources. 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

It seems that Private Companies own 51%, of the Grange Resources stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Grange Resources you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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.

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

Teck Resources broke out above a 27.18 buy point.Copper (CPER) showing strength and this has exposure to coal boom as well.

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in AusQuest Limited's (ASX:AQD) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for AusQuest

AusQuest Insider Transactions Over The Last Year

The Non-Executive Director Christopher Ellis made the biggest insider purchase in the last 12 months. That single transaction was for AU$400k worth of shares at a price of AU$0.021 each. That means that even when the share price was higher than AU$0.016 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While AusQuest insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that AusQuest insiders own 33% of the company, worth about AU$4.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The AusQuest Insider Transactions Indicate?

The fact that there have been no AusQuest insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think AusQuest insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AusQuest. Our analysis shows 5 warning signs for AusQuest (3 shouldn't be ignored!) and we strongly recommend you look at them before investing.

But note: AusQuest may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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.

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

NEW YORK, October 08, 2021–(BUSINESS WIRE)–Distribution Announcement

The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution of One Dollar and forty-two cents ($1.42) per Unit of Beneficial Interest payable on November 20, 2021 to Mesabi Trust Unitholders of record at the close of business on October 30, 2021. This compares to a distribution of thirty-six cents ($0.36) per Unit for the same period last year.

The One Dollar and six cents ($1.06) per Unit increase in the current distribution, as compared to the distribution announced by the Trust at the same time last year, is primarily attributable to the Trust’s receipt of total royalty payments of $19,495,040 on July 30, 2021 from Cleveland-Cliffs Inc. ("Cliffs"), the parent company of Northshore Mining Company ("Northshore"), which was higher than the total royalty payments of $4,349,830 received by the Trust from Cliffs in July 2020. The increase in the royalty received by the Trust for the second calendar quarter of 2021, as compared to the royalty received for the second calendar quarter of 2020, is primarily attributable to higher prices for iron ore products reflected in the second quarter 2021 royalty calculations, and higher volume of shipments during the second quarter 2021, compared with shipments in the second quarter 2020. The Trust’s distribution announcement today also reflects that the Trust’s most recent balance sheet includes a contract liability, which represents, among other things, iron ore that had not yet been shipped by Northshore, but for which the Trust has received a royalty payment based on an initial estimated price. See Mesabi Trust’s Quarterly Report on Form 10-Q, Note 2 (regarding "Contract asset and contract liability"), for the fiscal quarter ended July 30, 2021 (filed September 13, 2021). Finally, the Trust’s announcement today also reflects the Trustees’ assessment that Mesabi Trust will have sufficient reserves available to make such a distribution while also maintaining an appropriate level of unallocated reserves in order for the Trust to be positioned to meet current and future expenses, and present and future liabilities (whether fixed or contingent), that may arise.

Quarterly royalty payments from Northshore for iron ore shipments during the third calendar quarter, which are payable to Mesabi Trust under the royalty agreement, are due on October 30, 2021, together with the quarterly royalty report. After receiving the quarterly royalty report, Mesabi Trust plans to file a summary of the quarterly royalty report with the Securities and Exchange Commission in a Current Report on Form 8-K.

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to iron ore pellet production, iron ore pricing and adjustments to pricing, shipments by Northshore in 2021, royalty (including bonus royalty) amounts, timing of quarterly royalty payments and quarterly royalty reports, and other matters, which statements are intended to be made under the safe harbor protections of the Private Securities Litigation Reform Act of 1995, as amended. Actual production, prices, price adjustments, and shipments of iron ore pellets, as well as actual royalty payments (including bonus royalties) could differ materially from current expectations due to inherent risks and uncertainties such as general adverse business and industry economic trends, uncertainties arising from war, terrorist events, potential future impacts of the coronavirus (COVID-19) pandemic, and other global events, higher or lower customer demand for steel and iron ore, decisions by mine operators regarding curtailments or idling of production lines or entire plants, announcements and implementation of trade tariffs, environmental compliance uncertainties, difficulties in obtaining and renewing necessary operating permits, higher imports of steel and iron ore substitutes, processing difficulties, consolidation and restructuring in the domestic steel market, indexing features in Cliffs Pellet Agreements resulting in adjustments to royalties payable to Mesabi Trust and other factors. Further, substantial portions of royalties earned by Mesabi Trust are based on estimated prices that are subject to quarterly and final adjustments, which can be positive or negative, and are dependent in part on multiple price and inflation index factors under customer agreements to which Mesabi Trust is not a party and that are not known until after the end of a contract year. Although the Mesabi Trustees believe that any such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which could cause actual results to differ materially. Additional information concerning these and other risks and uncertainties is contained in the Trust’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Mesabi Trust undertakes no obligation to publicly update or revise any of the forward-looking statements made herein to reflect events or circumstances after the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211008005570/en/

Contacts

Mesabi Trust SHR Unit
Deutsche Bank Trust Company Americas
904-271-2520

TORONTO, Oct. 08, 2021 (GLOBE NEWSWIRE) — First Quantum Minerals Ltd. (“FQM” or the “Company”) (TSX: FM) will release third quarter 2021 financial and operating results on Tuesday, October 26, 2021 after the close of the Toronto Stock Exchange. The Company will host a conference call and webcast to discuss the results on Wednesday, October 27, 2021 at 9:00 am (ET).

The conference call replay will be available from October 27, 2021 until 11:59pm ET on November 10, 2021.

For further information, visit our website at www.first-quantum.com or contact:

Bonita To, Director, Investor Relations
(416) 361-3400 Toll-free: 1 (888) 688-6577
E-Mail: info@fqml.com

Val-d'Or, Quebec–(Newsfile Corp. – October 8, 2021) – Abitibi Royalties Inc. (TSXV: RZZ) (OTCQX: ATBYF) ("Abitibi Royalties") and Golden Valley Mines and Royalties Ltd. (TSXV: GZZ) (OTCQX: GLVMF) ("Golden Valley" and together with Abitibi Royalties, the "Companies") are pleased to announce that they have each publicly filed and commenced the sending of their respective management information circulars (the "Circulars") and related materials for their special meetings (the "Meetings") to be held on October 29, 2021 to approve the previously announced plans of arrangement (the "Arrangements").

Pursuant to the Arrangements, among other things, Gold Royalty Corp. (NYSE American: GROY) ("Gold Royalty") will acquire:

• all of the outstanding common shares of Abitibi Royalties (the "Abitibi Shares") in exchange for 4.6119 common shares of Gold Royalty (the "Gold Royalty Shares") for each Abitibi Share; and

• all of the outstanding common shares of Golden Valley (the "Golden Valley Shares") in exchange for 2.1417 Gold Royalty Shares for each Golden Valley Share.

The Companies are also pleased to announce that they have each obtained interim orders of the British Columbia Supreme Court, which provide for, among other things, the holding of the Meetings under applicable corporate legislation.

The Arrangements are subject to customary conditions applicable to such transactions, including receipt of requisite court, shareholder and stock exchange approvals. Each Arrangement is also conditional on completion of the other Arrangement. If all necessary approvals are obtained and the conditions to each Arrangement are met or waived, it is currently anticipated that the Arrangements will be completed in November 2021.

Benefits of the Arrangements

The anticipated benefits of the Arrangements to the Companies' respective shareholders, include, among other things:

• Significant Premium. The share exchange ratio represents significant premiums of 22% and 86% to Abitibi Royalties and Golden Valley shareholders, respectively, based on the 20-day volume-weighted average price of each party's shares as of September 3, 2021, being the last trading date prior to the announcement of the Arrangements.

• Creation of a Leading Growth and Americas-Focused Precious Metals Royalty Company. The transaction creates a new, sizable Americas-focused royalty company. The combined company is expected to have over 190 royalties across the production, development and exploration stages in various jurisdictions in the Americas.

• Ability to Participate in Future Potential Growth of the Combined Entity. By receiving Gold Royalty Shares under the Arrangements, Abitibi Royalties and Golden Valley shareholders will have meaningful ownership in a leading growth and Americas-focused precious metals royalty company with continued exposure to the royalty portfolio of the combined company through ownership of Gold Royalty Shares. Abitibi Royalties and Golden Valley shareholders will each also have increased exposure to royalties that are in production, currently under development, in the feasibility or preliminary economic assessment stage and on numerous key exploration projects. Additionally, given the increased scale and diversification, it is expected that Gold Royalty will be positioned for a re-rate by attracting enhanced multiples that are generally applicable to larger companies.

• Enhanced Balance Sheet and Access to Capital. The combined company will have approximately US$52.9 million in cash and cash equivalents, restricted cash and marketable securities and no debt (pro forma as of June 30, 2021), greater access to equity and debt capital markets and the critical mass to drive significant growth through acquisitions.

• Expanded Québec Presence and Increased Diversification. The combined company will have an expanded presence in Québec through Gold Royalty's royalties on properties managed by Monarch Mining Corporation and Wallbridge Mining Company Limited. In addition, the transaction presents the opportunity for Abitibi Royalties and Golden Valley shareholders to participate in a royalty portfolio that includes royalties in Nevada and other jurisdictions of the Americas.

• Increased Liquidity and Simplification of Ownership. The Gold Royalty Shares are listed on the NYSE American which is expected to enhance the market visibility and exposure of the combined companies. The transactions will also simplify the ownership structure of Abitibi Royalties and Golden Valley by eliminating the overhang from the existing ownership structure.

The directors, senior officers and certain shareholders of the Companies, holding in the aggregate approximately 65.4% and 38.0%, respectively, of the issued and outstanding common shares of each of Abitibi Royalties (including Golden Valley) and Golden Valley, have entered into voting support agreements with Gold Royalty dated September 6, 2021, pursuant to which they have agreed to vote their shares in favour of the respective Arrangements at the applicable Meetings and against any resolution or transaction that would prevent or delay the completion of such Arrangement. Of such shares, approximately 31.4% and 11.2% of the outstanding shares of Abitibi Royalties and Golden Valley, respectively, are subject to "hard" lock-up support and voting agreements, pursuant to which the obligations of the shareholder continue for a period of 6 months from the date thereof and do not terminate in the event the underlying arrangement agreement is terminated in accordance with its terms.

Recommendation of the Boards of Directors

The boards of directors of each of Abitibi Royalties and Golden Valley, each on the unanimous recommendation of a special committee comprised of its independent directors, unanimously recommend that shareholders vote FOR the applicable Arrangement.

Meeting Materials

Shareholders of each of the Companies should refer to the applicable Circular and related materials for detailed instructions on how to vote and participate at the Meeting. The Circulars also contain important information regarding the Arrangements and underlying agreements. The Circulars and related materials are available on each respective Company's profile at www.sedar.com. Each of the Companies urges shareholders to review such materials prior to voting at the Meetings.

The Meetings

The Golden Valley Meeting is scheduled for 12:00 p.m. (Eastern time) on October 29, 2021 and the Abitibi Royalties Meeting is scheduled for 1:00 p.m. (Eastern time) on October 29, 2021. The Meetings will each be held at 2864, chemin Sullivan, Val-d'Or, Québec, and will also be held by telephone conference call. Given the continuing impact of the COVID-19 pandemic, considerations regarding the health and safety of employees and stakeholders as well as public health guidelines to limit gatherings of people, shareholders are encouraged to attend the Meetings by telephone conference. Shareholders who wish to attend the meetings must follow the instructions set out in the respective Circulars.

Your Vote is Important

Whether or not you plan to attend the applicable Meeting, the Companies each encourage their respective shareholders to vote promptly. Please complete the form of proxy or voting instruction form enclosed with the Circulars and return it to the Companies' transfer agent, Odyssey Trust Company, as soon as possible, and in any event no later than: (i) 12:00 p.m. (Eastern time) on October 27, 2021, in the case of the Golden Valley Meeting; and (ii) 1:00 p.m. (Eastern time) on October 27, 2021, in the case of the Abitibi Royalties Meeting.

Registered shareholders can vote at the respective Meetings prior to such deadlines by returning their completed form of proxy by mail to Suite 350, 409 Granville Street, Vancouver, British Columbia V6C 1T2, Attention: Proxy Department; or by facsimile: 1-800-517-4553; or by voting through the Internet following the instructions on the form of proxy.

Non-registered shareholders, being shareholders whose shares are not registered in their own name should follow the instructions set forth in the voting instruction form sent to them by their broker or other financial institution in order to vote their shares at the applicable Meeting.

If you have any questions regarding the submission of your proxy, please contact Odyssey Trust Company, at its North American toll-free number: 1-888-290-1175.

About Abitibi Royalties Inc.

Abitibi Royalties Inc. owns various royalties at the Canadian Malartic Mine near Val-d'Or, Québec. In addition, Abitibi Royalties is building a portfolio of royalties on early-stage properties near producing mines and generating mineral projects for option or sale.

About Golden Valley Mines and Royalties Ltd.

Golden Valley Mines and Royalties Ltd. is focused on project and royalty generation and continues to evaluate opportunities to enhance its mining exploration property portfolio. Golden Valley is able to grow its current assets by way of partner-funded option/joint ventures and through its shareholdings in related-entities.

For additional information, please contact:

Abitibi Royalties Inc.
Ian Ball, President & CEO
Tel.: 1-888-392-3857
Email: info@abitibiroyalties.com

Golden Valley Mines and Royalties Ltd.
Glenn Mullan, President & CEO
Tel.: 1-819-824-2808 ext.204
Email: glenn.mullan@goldenvalleymines.com

Cautionary Statement on Forward-Looking Information:

Certain of the information contained in this news release constitutes 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and U.S. securities laws ("forward-looking statements") and involve known and unknown risks, uncertainties and other factors that may cause each of the Companies' and/or Gold Royalty's actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Such forward-looking statements, including but not limited to statements relating to the proposed Arrangements; the conditions to closing of each of the Arrangements; and the anticipated timing thereof; and the anticipated timing, benefits and effects of the completion of the Arrangements, involve risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among others, obtaining required shareholder, stock exchange and regulatory approvals, exercise of any termination rights under the underlying arrangement agreements, any inability to satisfy the other conditions therein, material adverse effects on the business, properties and assets of the Companies; and any inability of the parties to realize the benefits of the proposed transactions. Although the Companies have each attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Neither of the Companies undertakes to update any forward-looking statements, except in accordance with applicable securities laws.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99030

Yields of up to 15pc are on offer next year as FTSE 100 dividends return to record levels, rewarding investors who make early moves to capture 2022’s top payouts.

Total payments could reach £85.1bn, just behind the £85.2bn record paid out in 2018, according to the stockbroker AJ Bell, as profits and economies rebound after the pandemic.

Analysts are predicting British blue-chip stocks will build on a strong recovery in dividends this year. Payouts from FTSE 100 companies are forecast to reach £84.1bn in 2021, a rise of 37pc from £61.4bn in 2020.

Dividends from some of the London stock market’s biggest payers this year have sent their yields soaring.

Shares in miners Rio Tinto and Evraz yield almost 18pc, based on payouts for their 2021 financial year and current share prices, according to AJ Bell. Rival BHP Group yields 11.3pc.

While dividends from miners have ballooned, investors haven’t left it too late to cash in, according to experts. More than half of Rio Tinto’s 17.8pc yield is forecast to come from a bumper final dividend expected to be paid in April. Similarly, half of Evraz’s $1.48 dividend predicted for its 2021 financial year has yet to be paid.

The FTSE 100’s trio of top dividend payers are meanwhile forecast to continue to offer high payouts next year. Analysts have estimated 2022 yields of 14.9pc for Evraz, 12.4pc for Rio Tinto and 12.2pc for BHP.

Is this too good to be true? Ian Williams, the manager of the Charteris Premium Income fund, said he did not think so. Mr Williams, who holds around a third of his portfolio in mining stocks, said he expected double-digit yield forecasts to come good, despite a slump in the iron ore price from its summer high amid waning Chinese demand.

“Even if commodity prices fall, mining companies are so profitable they can still pay high dividends,” he said.

“Rio Tinto takes iron ore out of the ground for around $20 a ton. Prices have fallen by almost half since July to $118 a ton, so even after a crash it can still afford to pay shareholders.”

Mr Williams argued that miners could continue to raise their dividends in the future as they rode a wave of higher demand for metals as governments and companies pushed to decarbonise the economy.

“You can’t have decarbonisation without metals. Electric cars use four times as much copper as their petrol equivalents – demand for the metal could rise more in the next 10 years than it has done in the past 2,000,” he said.

“Rare earth” metals will also be in demand thanks to their use in the lithium-ion batteries used to power electric cars. Mr Williams highlighted Poly­metal International, forecast to yield 9.8pc next year, as a major miner of these metals.

However, other investors warned that chasing the high yields offered by mining stocks was dangerous. Laura Foll of the fund group Janus Henderson said: “Be wary of relying solely on the yield to value shares.”

She added that Rio Tinto and BHP’s high forecast dividends depended on the prices of a narrow basket of metals.

Ms Foll highlighted shares in rival miner Anglo American, which she owns in her funds, as an alternative. Expected to yield 6.6pc next year, she argued that the stock’s dividend was more reliable as the company made money from a large basket of commodities, including copper, diamonds, iron ore and nickel.

Shares in banks also offered good dividend prospects, she said. Lenders have resumed payouts after the Bank of England scrapped restrictions imposed at the start of the pandemic, and their dividends are expected to grow. Lloyds Banking Group and ­NatWest, which Ms Foll owns, are forecast to yield 5.6pc and 4.7pc respectively next year.

Simon Gergel, manager of the £660m Merchants Trust, also cautioned on the outlook for miners’ dividends. He said payouts from Rio Tinto and BHP would fall next year should the iron ore price remain at its current level.

He recommended tobacco companies as an alternative source of dividends as their profits were more predictable. British American Tobacco and Imperial Brands are forecast to yield 8.5pc and 9.2pc next year, and the former has raised its payout in each of the past 23 years.

Every investor in BCI Minerals Limited (ASX:BCI) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

BCI Minerals is not a large company by global standards. It has a market capitalization of AU$246m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about BCI Minerals.

Check out our latest analysis for BCI Minerals

What Does The Institutional Ownership Tell Us About BCI Minerals?

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.

As you can see, institutional investors have a fair amount of stake in BCI Minerals. 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 BCI Minerals, (below). Of course, keep in mind that there are other factors to consider, too.

BCI Minerals is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Australian Capital Equity Pty Ltd. with 39% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.1% and 3.1% of the stock. In addition, we found that Alwyn Vorster, the CEO has 0.9% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 BCI Minerals

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

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.

I can report that insiders do own shares in BCI Minerals Limited. It has a market capitalization of just AU$246m, and insiders have AU$17m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 43% ownership, the general public have some degree of sway over BCI Minerals. 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

We can see that Private Companies own 41%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example – BCI Minerals has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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

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.

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.

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

MELBOURNE (Reuters) – BHP Group, the world's largest listed mining company, announced on Thursday that from the end of January all workers and visitors entering its workplaces in Australia will need to be fully vaccinated against COVID-19.

Those requirements will be introduced earlier for some sites in high risk areas, such as Mt Arthur coal mine in New South Wales state, BHP said in a statement.

Australia has struggled since mid-year to contain an outbreak of the highly infectious Delta variant of COVID-19.

It is now pushing to increase vaccination rates so that cities can begin lowering their lockdowns.

“The science is clear that widespread vaccination saves lives," BHP Minerals Australia President Edgar Basto said in a statement.

"We recognise the path forward is through widespread vaccination in Australia and we are looking at a range of practical ways to support that while protecting communities and workforces," he said.

The Mining and Energy Union said that it did not support BHP’s decision to mandate vaccines and that it was working through the legal implications of the decision.

"We have strongly advocated to government and industry that COVID-19 vaccinations should be voluntary for mineworkers," it said in a statement.

Western Australia, where BHP runs its iron ore operations, and which has remained mostly coronavirus free, said earlier this week that it would require all employees that work with natural resources to have a first COVID-19 shot from December.

That was to help protect vulnerable Indigenous communities as the country begins opening up, it said.

Australia's coronavirus numbers are relatively low, with some 120,000 cases and 1,381 deaths. The country's double dose vaccination rate has climbed to around 47%.

(Reporting by Melanie Burton; Editing by Simon Cameron-Moore)

VANCOUVER, BC / ACCESSWIRE / October 7, 2021 / Tinka Resources Limited ("Tinka" or the "Company") (TSXV:TK)(BVL:TK)(OTCQB:TKRFF) is pleased to announce initial high grade copper-gold surface sampling results from the Silvia NW target, one of several prospective areas within the Company's 100%-owned Silvia Project which was recently acquired (see news release dated July 12, 2021). Silvia NW is located in the Huanuco region of central Peru, 30 km from the Company's flagship Ayawilca project and 90 km along strike south of the Antamina copper mine (see Figure 1).

Silvia NW is prospective for copper-gold skarn mineralization along a 3 km x 1 km trend that has seen minimal exploration and no drilling. Tinka's detailed sampling at "Area A", one of three mineralized zones at Silvia NW (see Figure 2), has discovered high-grade copper-gold mineralization associated with apparently continuous outcrops of skarn covering an area of approximately 400 metres by 100 metres, open in all directions. Widespread scree intermittently covers the outcrops and has limited the lateral extent of this early sampling (see Figures 3, 4 & 5).

Highlights of sampling from Area A at Silvia NW:

• A total of 108 trench and rock chip samples were collected over a 400 m x 100 m area of semi-continuous skarn:

  • Average grade of all samples is 0.79% copper & 0.60 g/t gold (1.24% CuEQ*);

  • Copper ranges between 0.01% to 12.31% Cu, and gold ranges between 0.01 g/t to 18.60 g/t Au;

• There is a strong positive correlation between copper and gold;

• Copper occurs as chalcopyrite with chalcocite and covellite (and minor copper oxides) in green garnet-magnetite skarn associated with quartz feldspar porphyry (QFP) dikes – mineralization occurs in both limestone ("exoskarn") and QFP ("endoskarn");

• Skarn mineralization is open in all directions under shallow scree cover;

• Rock samples are representative, non-selective, trench or continuous rock chip samples (1-2m wide) covering various rock types including skarn, QFP and limestone;

• Exploration is continuing at Area A, B and C along the 3 km northeast-southwest trend.

Dr. Graham Carman, Tinka's President and CEO, stated: "We are very excited to announce the discovery of high grade copper-gold mineralization in our initial sampling at Silvia NW, located in an underexplored Andean region of central Peru close to our flagship Ayawilca project. We believe that these initial sampling results, covering a surface area of approximately 400 m x 100 m, show the outstanding potential for a large and high-grade skarn deposit that has previously not been recognized. The high levels of gold associated with the copper mineralization is a big positive, as gold significantly increases the potential value of the mineralization. The skarn remains open in all directions."

"We believe that we could be seeing the early indications of a high potential, high quality copper-gold prospect at Silvia NW. Exploration is continuing at target Areas B and C with mapping and detailed sampling along the 3 km trend, where additional skarn bodies have been reported in both areas."

"In addition to our current exploration activities, Tinka continues to advance its outstanding Ayawilca zinc-silver project which we believe is one of the best undeveloped zinc projects in the Americas. A Mineral Resource estimation update was recently released (see news release dated September 27, 2021). A Preliminary Economic Assessment (PEA) for the Ayawilca deposit will be disclosed within weeks."

* Copper Equivalent (CuEQ) is calculated assuming 100% recovery of copper and gold using a Gold Conversion Factor of 0.751, calculated from a nominal copper price of US$3.30/lb and a gold price of US$1,700/oz.

Geology and Sampling Results at Area A

Tinka's exploration activities at Silvia NW have concentrated to date on detailed mapping and sampling of skarns at Area A, located at the southwestern end of the target area (Figure 2). The skarns are hosted by the Cretaceous Jumasha Formation, a thick (> 2km) sequence of limestones that form a major part of the fold and thrust belt in central Peru and host to several major skarn deposits in Peru (including Antamina). The limestone at Area A has been intruded by quartz feldspar porphyry dikes and sills (QFP) which appear to control the copper-gold skarn mineralization.

Skarn occurs both in the limestone (as exoskarn) and in QFP (as endoskarn) over an apparently continuous area of approximately 400 metres x 100 metres (see Figure 3). There is widespread scree cover in-between outcrops of skarn limiting outcrop (Figures 4 & 5). Tinka geologists believe that the skarn mineralization could continue over a larger area beneath the scree on the lower slopes and floor of the valley. On the edges of the outcropping skarn zones, limestones show minor to weak skarn development and are weakly mineralized or unmineralized. Limestone outside of the skarn zones have developed localised hornfels and minor skarn veining.

The skarns are dominated by green garnets with or without magnetite and other calc-silicates (Figure 6). Sulphides in the outcrops are common (typically partially oxidised) and dominated by chalcopyrite and pyrite with minor covellite, chalcocite, and malachite.

Table 1 below highlights the copper-gold trench sampling results presented in this release (also highlighted in Figure 3) along with selected other metals. Table 2 is a summary of the surface samples by rock type. Zinc, along with silver, is anomalous in many of the samples while arsenic is not significant.

Table 1. Highlights of surface sampling at Area A presented in this release

* Copper Equivalent (CuEQ) is calculated assuming 100% recovery of copper and gold using a Gold Conversion Factor of 0.751, calculated from a nominal copper price of US$3.30/lb and a gold price of US$1,700/oz.

Table 2. Summary of sampling at Area A by rock type

* Copper Equivalent (CuEQ) is calculated assuming 100% recovery of copper and gold using a Gold Conversion Factor of 0.751, calculated from a nominal copper price of US$3.30/lb and a gold price of US$1,700/oz.

Notes on sampling and assaying

Trenches were dug up to a depth of 1 metre, where possible, across areas of outcrop (partially weathered) to test the grade of skarn and adjacent limestones and intrusions. Trench samples are continuous samples collected with hammer and chisel over 1 to 2 metre intervals. In areas of sporadic outcrop, samples are taken as semi-continuous rock chips. Tinka believes that the samples are representative of the outcrop and non-selective. Samples were bagged and labelled in the field. Samples were sent to Certimin laboratory in Lima where samples were dried, crushed to 90% passing 2mm, then 1 kg pulverized to 85% passing 75 microns. Gold was analysed by fire assay on 30 g (method G0108) and multi-element analysis by ICP using multi-acid digestion (method G0176). Gold assays above 10 g/t Au were re-assayed by a high-grade fire assay method and a gravimetric finish (method G0014). Copper assays over 1% Cu were re-assayed by atomic absorption (method G0039). Standards and blanks were not inserted by Tinka but were inserted at the laboratory.

Figure 1 – Location of Silvia NW target area with selected mining claims in central Peru

Figure 2 – Simplified geological map of Silvia NW highlighting Areas A, B & C

Figure 3 – Highlights of copper-gold trenching and rock chip results at Area A

Figure 4 – Photo of Area A highlighting copper-gold skarn outcrops (darker shade) and scree, viewing SE

Figure 5 – Photo of Area A highlighting copper-gold skarn outcrops (darker shade) and scree, viewing South

Figure 6 – Photograph of Exoskarn from Area A. Green garnets are pervasive throughout the rock, while copper is observed as turquoise-coloured malachite replacing chalcopyrite

The Qualified Person, Dr. Graham Carman, Tinka's President and CEO, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the technical contents of this release.

On behalf of the Board,
"Graham Carman"
Dr. Graham Carman, President & CEO

Further Information:
www.tinkaresources.com

Mariana Bermudez
1.604.685.9316
info@tinkaresources.com

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About Tinka Resources Limited

Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca zinc-silver-tin project in central Peru. The Ayawilca Zinc Zone deposit has an estimated Indicated Mineral Resource of 19.0 Mt grading 7.15% Zn, 16.8 g/t Ag & 0.2% Pb and an Inferred mineral resource of 47.9 Mt grading 5.4% Zn, 20.0 g/t Ag & 0.4% Pb (dated August 30, 2021 – see news release dated September 27, 2021). The Ayawilca Tin Zone has an estimated Inferred Mineral Resource of 8.4 Mt grading 1.02% Sn (also dated August 30, 2021). An NI 43-101 report will be released in November 2021.

Tinka holds 46,000 hectares of mining claims in central Peru, one of the largest holders of mining claims in the belt. Tinka is actively exploring for copper-gold skarn mineral deposits at its 100%-owned Silvia project.

Forward-Looking Statements: Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptions made by and information currently available to Tinka's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations: timing of planned work programs and results varying from expectations; delay in obtaining results; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; equipment failure, unexpected geological conditions; imprecision in resource estimates or metal recoveries; success of future development initiatives; competition and operating performance; environmental and safety risks; the Company's expectations regarding the Ayawilca Project PEA; the political environment in which the Company operates continuing to support the development and operation of mining projects; risks related to negative publicity with respect to the Company or the mining industry in general; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID-19 virus; delays in obtaining or failure to obtain necessary permits and approvals from local authorities; community agreements and relations; and, other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Tinka believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or obligation to update any forward-looking statement.

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

SOURCE: Tinka Resources Limited

View source version on accesswire.com:
https://www.accesswire.com/667120/Tinka-Discovers-High-Grade-Copper-and-Gold-at-Silvia-Project–Surface-Samples-Up-to-123-Copper-and-186-GT-Gold

TORONTO, ON / ACCESSWIRE / October 7, 2021 / Bold Ventures Inc. (TSXV:BOL) (the "Company" or "Bold") is pleased to report that its geological team has mobilized to the Traxxin Gold Project. Having inspected historical trenching on the claims, specific locations are being cleaned, mapped and sampled. Prospecting will focus on areas adjacent to and south of the Main Zone (see project details and maps here). Geological mapping and sampling of these areas of interest will follow.

A downhole geophysical survey is in the planning stage to further define the depth extent and character of the structurally controlled gold mineralization occurring at and below the Main Zone. This survey will utilize the four diamond drill holes completed by Bold in January of this year (see Bold news release dated April 12, 2021).

In conjunction with this work, the historical geophysical surveys have been reviewed with a goal to improve the understanding of the relationship between the geophysical signature and the known gold mineralization. As a result, test surveys will be carried out prior to any additional survey work. This will assist in determining the optimal survey system and coverage to identify possible gold-bearing horizons more clearly. Current geological interpretation indicates that multiple shear zones occur subparallel to the Main Zone. The character, orientation, continuity, and intensity of the shearing remains a focus of the exploration effort.

Additionally, a study of polished thin section samples from historical drill core has been initiated. This is designed to improve the technical team's understanding of the mineralogical relationships with the gold mineralization encountered at the property. The work is being carried out under the supervision of Professor James Mungall, PhD, Carleton University who is a member of Bold's Advisory Board.

Additional exploration work will be planned as the results from the current work are received and evaluated. For a view of the technical merits of the Traxxin Gold Project and our other properties please visit our website at www.boldventuresinc.com.

The technical and scientific disclosures in this news release have been reviewed and approved by Gerald D. White, B.Sc., P.Geo., a qualified person (QP) under National Instrument 43-101.

Traxxin Extension Joint Venture

In April 2017, Lac des Mille Lacs First Nation (LDMLFN) and Bold entered into a joint venture to explore the northeastern extension of the Traxxin Gold discovery. Pursuant to the Traxxin Extension Joint Venture Agreement, LDMLFN has the right to earn a 50% interest in the Traxxin Gold Property from Bold by paying to Bold 50% of the cash option payments, 50% of the expenditure requirements and reimbursing Bold for 50% of the value of the shares issued pursuant to the Option. If the Option is earned and both parties maintain their interest in the Traxxin Gold Property, Bold and LDMLFN will form a joint venture for the further exploration and development of the Traxxin Gold Property.

About Bold Ventures Inc.

The Company explores for Gold and Base Metals in Canada. Bold is exploring properties located within active gold camps of Northern Ontario. Bold also holds significant assets located within and around the emerging multi-metals district dubbed the Ring of Fire region, located in the James Bay Lowlands of Northern Ontario.

As a result of the current COVID-19 virus concerns, the Company's management and contractors are following public guidelines and taking recommended steps to protect the health and safety of all personnel while carrying out operations. As a result of the COVID-19 pandemic giving rise to local and national anti-virus measures, the scheduling of activities is subject to change. COVID-19 impacts may affect timing and availability of goods and services for the foreseeable future.

For additional information about Bold Ventures and our projects please visit www.boldventuresinc.com or contact us at 416-864-1456 or email us at info@boldventuresinc.com.

"David B Graham"

David Graham
President and CEO

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

Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

SOURCE: Bold Ventures Inc.

View source version on accesswire.com:
https://www.accesswire.com/667146/Bold-Ventures-Commences-Field-Work-at-the-Traxxin-Gold-Project

It is hard to get excited after looking at Capstone Mining's (TSE:CS) recent performance, when its stock has declined 12% over the past month. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Capstone Mining's ROE today.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.

See our latest analysis for Capstone Mining

How Is ROE Calculated?

Return on equity can be calculated by using the formula:

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

So, based on the above formula, the ROE for Capstone Mining is:

22% = US$206m ÷ US$936m (Based on the trailing twelve months to June 2021).

The 'return' is the yearly profit. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.22 in profit.

What Is The Relationship Between ROE And Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

Capstone Mining's Earnings Growth And 22% ROE

First thing first, we like that Capstone Mining has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 14% which is quite remarkable. As a result, Capstone Mining's exceptional 63% net income growth seen over the past five years, doesn't come as a surprise.

As a next step, we compared Capstone Mining's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 32%.

Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Capstone Mining's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is Capstone Mining Efficiently Re-investing Its Profits?

Capstone Mining doesn't pay any dividend currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.

Summary

Overall, we are quite pleased with Capstone Mining's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.

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.

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

Just because a business does not make any money, does not mean that the stock will go down. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.

So, the natural question for Prairie Mining (ASX:PDZ) shareholders is whether they should be concerned by its rate of cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.

View our latest analysis for Prairie Mining

Does Prairie Mining Have A Long Cash Runway?

You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. When Prairie Mining last reported its balance sheet in June 2021, it had zero debt and cash worth AU$5.0m. Importantly, its cash burn was AU$2.2m over the trailing twelve months. So it had a cash runway of about 2.2 years from June 2021. That's decent, giving the company a couple years to develop its business. You can see how its cash balance has changed over time in the image below.

How Is Prairie Mining's Cash Burn Changing Over Time?

In our view, Prairie Mining doesn't yet produce significant amounts of operating revenue, since it reported just AU$298k in the last twelve months. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. Even though it doesn't get us excited, the 40% reduction in cash burn year on year does suggest the company can continue operating for quite some time. Admittedly, we're a bit cautious of Prairie Mining due to its lack of significant operating revenues. We prefer most of the stocks on this list of stocks that analysts expect to grow.

How Hard Would It Be For Prairie Mining To Raise More Cash For Growth?

While Prairie Mining is showing a solid reduction in its cash burn, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.

Prairie Mining has a market capitalisation of AU$80m and burnt through AU$2.2m last year, which is 2.8% of the company's market value. That means it could easily issue a few shares to fund more growth, and might well be in a position to borrow cheaply.

So, Should We Worry About Prairie Mining's Cash Burn?

As you can probably tell by now, we're not too worried about Prairie Mining's cash burn. For example, we think its cash burn relative to its market cap suggests that the company is on a good path. And even though its cash burn reduction wasn't quite as impressive, it was still a positive. Looking at all the measures in this article, together, we're not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. On another note, we conducted an in-depth investigation of the company, and identified 3 warning signs for Prairie Mining (1 can't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies insiders are buying, and this list of stocks growth stocks (according to analyst forecasts)

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.

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

(Bloomberg) — If iron ore giant Vale SA decides to separate its base metals operations, it may look at the possibility of merging that business with the assets of another company.

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Chief Executive Officer Eduardo Bartolomeo opened the door to such a possibility during the Financial Times Mining Summit on Thursday.

The world’s second-largest producer of iron ore continues to weigh up the pros and cons of forming a seperate company with its copper and nickel mines in Canada, Brazil and Indonesia. The goal is to unlock value as the global transition toward clean energy gains momentum. A future merger would help Vale gain scale as new deposits get trickier and pricier to find and develop.

“When you have this vehicle you might find a way to merge with somebody who has synergies with you,” Bartolomeo said. “But this is a second step. First step is to look at yourself, fix yourself.”

Read More: Vale CEO Sees Iron Ore Market Staying ‘Relatively Tight’

Vale became the world’s biggest commercial producer of nickel after taking over Inco in 2006 for about $19 billion. The company calculates the nickel and copper business is worth about $25 billion, a value that’s not reflected in the current single structure.

“When people look at Vale, they look to iron ore,” he said.

The company sees an opportunity to grow in the electric-vehicle supply chain as the world tries to wean itself off fossil fuels.

Vale has faced setbacks in its base metals operations in the past week or so, with miners trapped in a Canadian underground mine, a fire at Brazil’s Salobo copper mine and a temporary halt of nickel mining at Onca Puma.

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(Reuters) -The chief executive of Vale SA said on Thursday the Brazilian iron ore miner is not looking into a near-term spin-off for its base metal, and the company later said the unit needs to be "transformed" before that longstanding plan can be carried out.

"We are not talking about a spin off yet. The problem here is the size of the business," said Eduardo Bartolomeo, Vale's Chief Executive Officer as part of the Financial Times' Mining Summit.

Vale had a longstanding plan to sell the unit, that was still being considered as recently as April of this year. The plan had first been developed in 2014, postponed to 2015, and then the idea was temporarily abandoned.

Bartolomeo said part of the problem was the value of the business, saying it brings in $3.5 billion in revenue a year, which would put a sale value at "more or less $25 billion."

To get to a spin-off, Vale said in a statement after the event, "the business still needs to be adjusted, transformed, and go through an internal transformation."

Vale, one of the world's largest iron ore miners, is still dealing with the consequences of a dam burst in 2019, which killed 270 in the town of Brumadinho.

Aside from the lives lost, the environmental damage, fines and complicated legal proceedings that targeted its top executives, the incident also depressed the company's value.

"We are perceived as a risky stock," Bartolometo said, adding however that "Vale did the homework. Now it's not a risky company."

(Reporting by Marcelo Rochabrun; Editing by David Gregorio)

Vale S.A VALE recently announced that it has temporarily suspended production of copper concentrate at its Salobo mine in Brazil after a fire partially affected a conveyor belt. The company stated that other activities, including mine and maintenance operations, are running as usual. The impacted site is currently undergoing an assessment, and the company expects to resume operations by the end of this month.

Vale’s Salobo mine, located in Marabá, in the southeast of Pará, is the largest copper deposit ever discovered in Brazil. The low-cost copper-gold mine began operating in 2012. In October 2018, the company announced the approval of the Salobo III mine expansion, which is currently in progress. Start-up is expected in 2022 and the expansion is expected to increase capacity by 30-40 kt per year.

In 2020, Vale produced 360.1 kt of copper with Salobo contributing 172.7 kt, or 48% of the total output. In the first half of 2021, the company produced 179 kt of copper. Of this, Salobo’s contribution was 83.5 kt. In the second quarter of 2021, copper production in Salobo was 38.7 kt, 13.5% higher than the first quarter, due to the ramp-up of mine maintenance activities. Movement at Salobo mine has been improving with increased availability of equipment as the ramp-up of the mine maintenance workshop continues. Total mine movement at Salobo has increased 31.2% in the second quarter compared to the first quarter. Improvement in mine movement is expected to have continued in the third quarter as well.

This news comes on the heels of Vale’s announcement that it has halted all activities at Onça Puma mine, Brazil, following the suspension of its operation license by a State Agency on allegations that the company has failed to comply with conditions for licensing. Vale is currently evaluating the direct impact of the shutdown on total production. Onca Puma accounted for 7.5% of the company's total nickel production in 2020.

Vale’s Base Metals business, which includes exploration efforts related to nickel, copper, cobalt, PGMs and gold and silver, has gone through a broad safety review of the operational process, resulting in comprehensive overhaul of maintenance standards, procedures, training and oversight. It anticipates improvements from maintenance activities to materialize throughout the business this year. The company anticipates to attain 500 ktpy (kilo tons per year) with projects — Salobo III, Alemao and Cristalino — already in pipeline. Carajas is expected to act as a key catalyst in copper growth. Vale uncovered 1.9 Mt of copper equivalent in the last two years that will support growth in the future. The long-term outlook for copper is positive as copper demand is expected to improve, partly driven by electric vehicles and renewable energy and infrastructure investments, while future supply growth remains challenged on account of declining ore grades and the lack of major discoveries.

So far this year, shares of Vale have fallen 16.2%, compared with the industry’s decline of 17.9%.

Image Source: Zacks Investment Research

The drop in Vale’s share price this year can primarily be attributed to the recent plunge in iron ore prices due to weak demand in China on account of its intensified curbs on steel production. In the third quarter of 2021, iron ore plummeted 49% — the first quarterly loss since the first quarter of 2020. Copper prices have dipped lately on a stronger dollar and easing supply disruption threat in Peru, the world's second largest producer of mined copper.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space include Nucor Corporation NUE, Methanex Corporation MEOH and The Chemours Company CC. While Nucor and Methanex sport a Zacks Rank #1 (Strong Buy), Chemours carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an estimated earnings growth rate of 537.4 % for the ongoing year. So far this year, the company’s shares have appreciated 82.9%.

Methanex has a projected earnings growth rate of 409.3 % for 2021. The company’s shares have gained 6% so far this year.

Chemours has an estimated earnings growth rate of 86.4% for the current year. The company’s shares have increased 23.7% year to date.

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

VALE S.A. (VALE) : Free Stock Analysis Report

Nucor Corporation (NUE) : Free Stock Analysis Report

Methanex Corporation (MEOH) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

(Reuters) – Fortescue Metals Group Ltd's green energy unit said on Thursday it bought a 60% stake in Dutch-based renewable firm High yield Energy Technologies (HyET) Group in a bid to cut costs and boost green energy production.

Fortescue Future Industries (FFI) is part of Fortescue Metals' plan to become the world's first major supplier of green iron ore, and aims to supply 15 million tonnes of green hydrogen globally by 2030.

Fortescue Metals, the world's No.4 iron ore producer, is pursuing some of the most ambitious green plans in the industry with its efforts to diversify into renewable energy and green hydrogen through FFI.

"HyET Hydrogen's technology will support FFI in reducing costs in other areas of the green hydrogen supply chain," said Julie Shuttleworth, chief executive officer of FFI.

FFI, which plans to spend between $400 million and $600 million in the year to June 2022 on developing green transport and decarbonisation technologies, expects to cut down costs at its Powerfoil factory in Australia from the acquisition.

As part of the deal, FFI will provide a majority share of financing for the expansion of HyET Solar's Dutch Solar photovoltaics factory. Financial terms of the stake acquisition were not disclosed.

(Reporting by Tejaswi Marthi in Bengaluru; Editing by Subhranshu Sahu)

Peel Mining (ASX:PEX) has had a rough three months with its share price down 5.9%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Peel Mining's ROE in this article.

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

View our latest analysis for Peel Mining

How Do You Calculate Return On Equity?

ROE can be calculated by using the formula:

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

So, based on the above formula, the ROE for Peel Mining is:

4.2% = AU$3.7m ÷ AU$87m (Based on the trailing twelve months to June 2021).

The 'return' is the yearly profit. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.04.

Why Is ROE Important For Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

Peel Mining's Earnings Growth And 4.2% ROE

At first glance, Peel Mining's ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 13%. In spite of this, Peel Mining was able to grow its net income considerably, at a rate of 56% in the last five years. Therefore, there could be other reasons behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.

Next, on comparing with the industry net income growth, we found that Peel Mining's growth is quite high when compared to the industry average growth of 24% in the same period, which is great to see.

Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Peel Mining is trading on a high P/E or a low P/E, relative to its industry.

Is Peel Mining Using Its Retained Earnings Effectively?

Peel Mining doesn't pay any dividend to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.

Conclusion

Overall, we feel that Peel Mining certainly does have some positive factors to consider. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. You can see the 4 risks we have identified for Peel Mining by visiting our risks dashboard for free on our platform here.

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.

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