Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Billiton (BBL). BBL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.51, while its industry has an average P/E of 7.34. Over the past year, BBL's Forward P/E has been as high as 14.06 and as low as 5.72, with a median of 10.05.

We should also highlight that BBL has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.52. Within the past 52 weeks, BBL's P/B has been as high as 1.32 and as low as 0.78, with a median of 1.13.

These are just a handful of the figures considered in Billiton's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBL is an impressive value stock right now.

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VANCOUVER, BC / ACCESSWIRE / July 28, 2021 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic") announces promising results from a recently-completed prospecting and soil sampling program at its wholly owned Alotta porphyry gold-copper-molybdenum project, which is located in the Dawson Range porphyry belt of southwestern Yukon (Figure 1). The Alotta project lies 40 km south of Western Copper and Gold's Casino porphyry project, which hosts a 2.4 billion tonne M&I resource⁽¹⁾ containing 7.6 billion pounds of copper (0.14%), 811 million pounds of molybdenum (0.017%) and 14.5 million ounces of gold (0.19 g/t). Rio Tinto recently invested $25.6 million in Western Copper and Gold to fund further work at the Casino Deposit.

The Alotta project is marked by a broad magnetic low that corresponds to a zone of high-level dykes, brecciation and pervasive phyllic and potassic alteration, which are developed within a portion of a large pluton mainly composed of magnetite-bearing, coarse-grained granodiorite. The magnetic low is the result of sulphide replacement of magnetite within the alteration zone (Figure 2).

The 2021 results build upon work that Strategic has done at Alotta over the past three summers. Positive results from successive programs prompted corresponding expansions to the claim block, and the property now totals 74 mineral claims encompassing over 1500 hectares. Collectively the soil geochemical sampling surveys have outlined a very large target that demonstrates classic porphyry zonation, with a 4200 m long by up to 1500 m wide core of strong copper and molybdenum values flanked by lead-zinc-silver anomalies. Highly elevated gold values, which reach a maximum of 2680 ppb, occur throughout the entire area of grid sampling and likely delineate the porphyry mineralization and fringing vein systems. The area of anomalous soil geochemistry closely coincides with the magnetic low (Figures 3 through 7).

The Alotta property is located in an unglaciated portion of Yukon, which is characterized by deep weathering. There is almost no outcrop on the property and most parts of it are well vegetated. Work by the Yukon Geological Survey has shown that residual soils in much of the Dawson Range are covered by a thick layer of eluvium and younger volcanic ash. These features, coupled with localized leaching of metals (particularly copper) from near surface rocks, often dampen the intensity of soil geochemical response and hamper prospecting and mapping. In spite of these limitations, soil sampling at Alotta has yielded highly prospective results and rock sampling has returned elevated gold values that are consistent with expected porphyry grades, including a 2021 sample that assayed 8.73 g/t gold (Figure 8).

No drilling or mechanized trenching has been done at the Alotta project. Now that the area of geochemically anomalous response has been outlined, Strategic believes that the next stage of exploration should consist of deep array induced polarization surveys, coupled with detailed magnetic and radiometric surveys. A maiden diamond drill program should be undertaken following comprehensive interpretation of geophysical, geochemical and geological data.

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

About Strategic Metals Ltd.
Strategic is a project generator with 11 royalty interests, 8 projects under option to others, and a portfolio of more than 100 wholly owned projects that are the product of over 50 years of focussed exploration and research by a team with a track record of major discoveries. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings and/or geochemical anomalies and geophysical features that resemble those at nearby deposits.

Strategic has a current cash position of $8 million and large shareholdings in a number of active mineral exploration companies including 38.9% of GGL Resources Corp., 33.5% of Rockhaven Resources Ltd., 19.9% of Honey Badger Silver Inc., 19.2% of Precipitate Gold Corp. and 18.7% of Silver Range Resources Ltd. All of these companies are well funded and are engaged in promising exploration projects. Strategic also owns 21.9% of Terra CO2 Technologies Holdings Inc., a private Delaware corporation which recently completed a US$9.2 million financing to advance its environmentally-friendly, cost-effective alternative to Portland cement. The current value of Strategic's stock portfolio is approximately $22 million.

ON BEHALF OF THE BOARD
"W. Douglas Eaton"
President and Chief Executive Officer

For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com or contact:

Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568

Investor Inquiries
Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
http://www.strategicmetalsltd.com

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

This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

SOURCE: Strategic Metals Ltd.

View source version on accesswire.com:
https://www.accesswire.com/657324/Strategic-Metals-Delineates-Promising-Porphyry-Au-Cu-Mo-Prospect-at-Its-Alotta-Project-Yukon

By Jeff Lewis

TORONTO (Reuters) -Canadian copper miner First Quantum Minerals has shelved plans to sell a stake in its Zambian copper mines, Chief Operating Officer Tristan Pascall said on Wednesday. China’s Jiangxi Copper Co Ltd had been speculated as a potential suitor for minority interests in First Quantum’s Kansanshi and Sentinel mines. Benchmark copper has pulled back after reaching a peak of $10,747.50 a tonne in May, hit by concerns about a resurgence of the pandemic, the potential for central banks to taper stimulus and China's sale of strategic reserves due to concerns about rising raw material prices.

Even so, First Quantum on Tuesday flagged rising costs on the back of higher Zambian royalty rates driven by increased copper prices.

"There has been limited progress" on talks with the Zambian government for terms which would pave the way for an expansion of ore processing at Kansanshi ahead of national elections, Pascall said.

Zambian President Edgar Lungu faces his most serious challenge yet from businessman and serial presidential hopeful Hakainde Hichilema in elections set for August 12.

Zambia's ZCCM-IH sealed its acquisition of Mopani Copper Mines in March giving the state a deeper understanding of mine operations, Pascall said.

"We don't see any significant risk there given where tax rates are at the moment," he said.

(Reporting by Jeff Lewis; Additional reporting Chris Mfula in Lusaka; Editing by Mike Harrison)

CLEVELAND, July 28, 2021–(BUSINESS WIRE)–Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it has completed the redemption of the entirety of its outstanding Series B Participating Redeemable Preferred Stock held by an affiliate of ArcelorMittal S.A. for approximately $1.2 billion, or $21.18 per common share for the equivalent of approximately 58 million common shares. The redemption was completed with existing liquidity. The elimination of the preferred shares from Cleveland-Cliffs’ capital structure reduces the Company’s diluted share count by 10% on a pro-forma basis.

Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President, and CEO, said: "Given the strength of our business fundamentals and where our common shares have been trading, the buyback of the preferred shares at an attractive price was a no-brainer, highly accretive deal for our shareholders. We actually believe this transaction is even better than a common share buyback, because we acquired the entire tranche at a 20-day VWAP without making any noise in the market. The buyback is done, and the total cash spent is less than the free cash flow we expect to generate this quarter."

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials and direct reduced iron to primary steelmaking and downstream finishing, stamping, tooling, and tubing. The Company serves a diverse range of markets due to its comprehensive offering of flat-rolled steel products and is the largest supplier of steel to the automotive industry in North America. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 25,000 people across its mining, steel and downstream manufacturing operations in the United States and Canada. For more information, visit www.clevelandcliffs.com.

Forward-Looking Statements

This release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: disruptions to our operations relating to the COVID-19 pandemic, including the heightened risk that a significant portion of our workforce or on-site contractors may suffer illness or otherwise be unable to perform their ordinary work functions; continued volatility of steel and iron ore market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry, which has been experiencing a trend toward light weighting that could result in lower steel volumes being consumed; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity, oversupply of iron ore, prevalence of steel imports and reduced market demand, including as a result of the COVID-19 pandemic; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges, due to the COVID-19 pandemic or otherwise, of one or more of our major customers, including customers in the automotive market, key suppliers or contractors, which, among other adverse effects, could lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; our ability to reduce our indebtedness or return capital to shareholders within the expected timeframes or at all, depending on market and other conditions; risks related to U.S. government actions with respect to Section 232 of the Trade Expansion Act (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, tariffs, treaties or policies, as well as the uncertainty of obtaining and maintaining effective antidumping and countervailing duty orders to counteract the harmful effects of unfairly traded imports; impacts of existing and increasing governmental regulation, including climate change and other environmental regulation that may be proposed under the Biden Administration, and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, any governmental or regulatory authority and costs related to implementing improvements to ensure compliance with regulatory changes, including potential financial assurance requirements; potential impacts to the environment or exposure to hazardous substances resulting from our operations; our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; limitations on our ability to realize some or all of our deferred tax assets, including our net operating loss carryforwards; our ability to realize the anticipated synergies and benefits of our acquisitions of AK Steel and ArcelorMittal USA and to successfully integrate the businesses of AK Steel and ArcelorMittal USA into our existing businesses, including uncertainties associated with maintaining relationships with customers, vendors and employees; additional debt we assumed, incurred or issued in connection with the acquisitions of AK Steel and ArcelorMittal USA, as well as additional debt we incurred in connection with enhancing our liquidity during the COVID-19 pandemic, may negatively impact our credit profile and limit our financial flexibility; known and unknown liabilities we assumed in connection with the acquisitions of AK Steel and ArcelorMittal USA, including significant environmental, pension and other postretirement benefits ("OPEB") obligations; the ability of our customers, joint venture partners and third-party service providers to meet their obligations to us on a timely basis or at all; supply chain disruptions or changes in the cost or quality of energy sources or critical raw materials and supplies, including iron ore, industrial gases, graphite electrodes, scrap, chrome, zinc, coke and coal; liabilities and costs arising in connection with any business decisions to temporarily idle or permanently close a mine or production facility, which could adversely impact the carrying value of associated assets and give rise to impairment charges or closure and reclamation obligations, as well as uncertainties associated with restarting any previously idled mine or production facility; problems or disruptions associated with transporting products to our customers, moving products internally among our facilities or suppliers transporting raw materials to us; uncertainties associated with natural or human-caused disasters, adverse weather conditions, unanticipated geological conditions, critical equipment failures, infectious disease outbreaks, tailings dam failures and other unexpected events; our level of self-insurance and our ability to obtain sufficient third-party insurance to adequately cover potential adverse events and business risks; disruptions in, or failures of, our information technology systems, including those related to cybersecurity; our ability to successfully identify and consummate any strategic investments or development projects, cost-effectively achieve planned production rates or levels, and diversify our product mix and add new customers; our actual economic iron ore and coal reserves or reductions in current mineral estimates, including whether we are able to replace depleted reserves with additional mineral bodies to support the long-term viability of our operations; the outcome of any contractual disputes with our customers, joint venture partners, lessors, or significant energy, raw material or service providers, or any other litigation or arbitration; our ability to maintain our social license to operate with our stakeholders, including by fostering a strong reputation and consistent operational and safety track record; our ability to maintain satisfactory labor relations with unions and employees; availability of workers to fill critical operational positions and potential labor shortages caused by the COVID-19 pandemic, as well as our ability to attract, hire, develop and retain key personnel; unanticipated or higher costs associated with pension and OPEB obligations resulting from changes in the value of plan assets or contribution increases required for unfunded obligations; and potential significant deficiencies or material weaknesses in our internal control over financial reporting.

For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2020, and other filings with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210727006218/en/

Contacts

MEDIA CONTACT:
Patricia Persico
Director, Corporate Communications
(216) 694-5316

INVESTOR CONTACT:
Paul Finan
Vice President, Investor Relations
(216) 694-6544

European markets were mixed on Wednesday as earnings season kicked off in earnest, with a slew of banks reporting results alongside other big hitters. 

In London the FTSE 100 (^FTSE) was up 0.3% by the closing bell, having seen few changes throughout the day. Germany's DAX (^GDAXI) was up 0.3% and France's CAC (^FCHI) headed 1% higher following a day of losses. 

Investors held their nerve on an interesting day of trade with earning reports from Metro Bank (MTRO.L), Santander (SAN.MC), Barclays (BARC.L), Aston Martin (AML.L), GlaxoSmithKline (GSK.L), ITV (ITV.L), Deutsche Bank (DB), and Rio Tinto (RIO.L). 

In the US, stocks made muted moves by the end of the day in London following some big-hitting tech earnings the day before. The S&P 500 (^GSPC) was 0.1% higher, the Dow (^DJI) was down 0.1% and the tech-heavy Nasdaq (^IXIC) rose 0.6%.

Apple (AAPL) and Google parent Alphabet (GOOGL) both reported earnings that beat Tuesday night's expectations. 

Investors in the US will be pulled in different directions later on Wednesday due to the end of the Federal Reserve's policy meeting. 

Read more: Results round-up: What you need to know as earnings season kicks off

“It’s not enough to be making money now, investors need to know companies have a clear plan to make money tomorrow," said Danni Hewson, financial analyst at AJ Bell. "It’s been fascinating to watch share movements over the past couple of weeks as earnings season’s delivered day after day of stellar results.  

"But this quarter is skewed, pandemic winners have probably reached peak boom and pandemic losers have yet to show turnaround growth. For Q2 more than ever it’s the outlook that’s been scrutinised, how well have bosses transmitted their future plans and how confident are shareholders."

Meanwhile, it was a mixed day of trade in Asia, following a heavy selloff the day before due to regulatory action in China. The Hang Seng (^HSI) reversed some of its losses to the tune of 0.9%, the SSE Composite (000001.SS) continued downward, and Japan's Nikkei (^N225) lost 1.4%.

On Monday, the Hang Seng had slid to its lowest level since May 2020, as news reverberated that Beijing was cracking down on parts of the tech and education industries. 

According to the new reforms, these companies are not permitted to make profits or participate in stock markets in order to raise capital.

Watch: What are SPACs?

TSX-V: GBR

VANCOUVER, BC, July 28, 2021 /PRNewswire/ – Great Bear Resources Ltd. (the "Company" or "Great Bear"), (TSXV: GBR) (OTCQX: GTBAF) today provides an update regarding its ongoing fully funded $45 million 2021 exploration program at its 100% owned flagship Dixie Project in the Red Lake district of Ontario.

Chris Taylor, President and CEO of Great Bear said, "We have now completed 440 drill holes at the LP Fault, and our Phase 1 drill grid is substantially complete to an average 450 metres depth along over 4 kilometres of strike length. 109 of the 440 drill holes totalling over 40,000 metres are currently in various stages of assay progress, with results expected regularly over the next 2 – 3 months. Maiden mineral resource estimate modeling of the first 450 metres of mineralization from surface of the LP Fault is underway and is expected to be published no later than Q1 2022."

The Company will now commence Phase 2 drilling, which will consist of: 1) Ongoing expansion drilling of the LP Fault below 450 metres depth and along strike, 2) any additional infill drilling of the upper 450 metres of the LP Fault that may be required after review, 3) expansion and infill drilling of the Hinge, Limb and Arrow zones, and 4) testing of new regional targets at Dixie.

More comprehensive Phase 2 drill plans, along with a description of which portions of the currently drilled mineralized zones will be included in the maiden mineral resource estimates, will be released after receipt and interpretation of current outstanding drill results. Great Bear has approximately $83 million in cash on hand and is funded through 2022. In total, Great Bear has completed 630 drill holes totaling 283,000 metres into all gold zones since beginning drilling at the Dixie Project in summer 2017.

Regional Forest Fire Update

Due to regional forest fire activity, on July 21^st the Ministry of Northern Development, Mines, Natural Resources and Forestry (MNRF) issued a work suspension order for many construction, mining, mineral exploration and forestry related activities over an area extending from Marathon, Ontario to the Manitoba border, which includes Red Lake. The order is expected to extend until local fire risk conditions improve.

In order to protect drill crews and Red Lake staff, Great Bear initiated a planned three-week suspension of drilling at the Dixie property on July 18^th, coinciding with the conclusion of its Phase 1 grid drill program, and prior to the MNRF order being issued. Phase 2 drilling is expected to begin on or around the week of August 9^th, subject to fire safety conditions and modified work plan approvals from the MNRF at that time. The current work suspension is not expected to significantly impact Great Bear's progress at the Dixie Project, or maiden mineral resource estimation completion timing.

Chris Taylor continued, "We would like to sincerely thank all of the dedicated fire fighting crews for their courage and ongoing efforts to protect all of the affected regional communities, including Red Lake. Special thanks also go out to the many groups of private volunteers, including Great Bear team members, local companies and members of all levels of government who are involved with supporting the fire fighting efforts."

Forest fires and ongoing Ontario government work orders can be tracked at:

https://www.ontario.ca/page/forest-fires

About the Dixie Project

The Dixie Project is 100% owned, comprised of 9,140 hectares of contiguous claims that extend over 22 kilometres, and is located approximately 25 kilometres southeast of the town of Red Lake, Ontario. The project is accessible year-round via a 15 minute drive on a paved highway which runs the length of the northern claim boundary and a network of well-maintained logging roads.

The Dixie Project hosts two principal styles of gold mineralization:

• High-grade gold in quartz veins and silica-sulphide replacement zones (Dixie Limb, Hinge and Arrow zones). Hosted by mafic volcanic rocks and localized near regional-scale D2 fold axes. These mineralization styles are also typical of the significant mined deposits of the Red Lake district.

• High-grade disseminated gold with broad moderate to lower grade envelopes (LP Fault). The LP Fault is a significant gold-hosting structure which has been seismically imaged to extend to 14 kilometres depth (Zeng and Calvert, 2006), and has been interpreted by Great Bear to have up to 18 kilometres of strike length on the Dixie property. High-grade gold mineralization is controlled by structural and geological contacts, and moderate to lower-grade disseminated gold surrounds and flanks the high-grade intervals. The dominant gold-hosting stratigraphy consists of felsic sediments and volcanic units.

About Great Bear

Great Bear Resources Ltd. is a well-financed gold exploration company managed by a team with a track record of success in mineral exploration. Great Bear is focused in the prolific Red Lake gold district in northwest Ontario, where the company controls over 200 km² of highly prospective tenure across 4 projects, all 100% owned: The flagship Dixie Project, the Pakwash Property, the Sobel Property, and the Red Lake North Property, all of which are accessible year-round through existing roads.

Qualified Person and NI 43-101 Disclosure

Mr. R. Bob Singh, P.Geo, VP Exploration, and Ms. Andrea Diakow P.Geo, VP Projects for Great Bear are the Qualified Persons as defined by National Instrument 43-101 responsible for the accuracy of technical information contained in this news release.

ON BEHALF OF THE BOARD

"Chris Taylor"

Chris Taylor, President and CEO

Cautionary note regarding forward-looking statements

This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking information are based on management of the parties' reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect.

Such factors, among other things, include: impacts arising from the global disruption caused by the Covid-19 coronavirus outbreak, business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold or certain other commodities; change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); discrepancies between actual and estimated metallurgical recoveries; inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties.

Great Bear undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

View original content to download multimedia:https://www.prnewswire.com/news-releases/great-bear-completes-phase-1-grid-drilling-to-450-m-depth-at-lp-fault-440-holes-222-500-m-drilled-since-may-2019-discovery-301342832.html

SOURCE Great Bear Resources Ltd.

(Bloomberg) — Union leaders at Escondida are calling on workers to reject owner BHP Group’s final wage offer, raising the possibility of a strike at the world’s largest copper mine at a time of tight global supplies and high prices.

An offer delivered at the end of regular wage talks in Chile falls short of worker demands, with the company pushing for longer hours in a bid to boost productivity and profit, the union said in a statement Wednesday. The 2,330 members will vote on the offer through July 31.

A strike is “the only tool left to workers in this scenario to press for an urgent rectification in the way things are done by management,” the union said. “The responsibility to avoid a serious conflict is entirely in the hands of the transnational BHP.”

While Chilean labor rules give either side the option to seek mediation before a strike could begin, the union has a track record of following through: In 2017, it roiled the copper market with a 44-day stoppage. A disruption at a mine that last year churned out 1.2 million metric tons would tighten supplies of the metal used in wiring just as a global economic recovery pushes up demand.

High metal prices are prompting host nations to seek a bigger share of the mining windfall, with Chilean lawmakers discussing a royalty bill as part of a push to address lingering inequalities in the country. Mining companies are striving to keep their labor costs in check in a cyclical business and as ore quality deteriorates and prices of inputs start to rise.

While terms of the Escondida offer weren’t released, the union is demanding an additional bonus equivalent to 1% of dividends paid to the mine’s owners as recognition of sacrifices made by workers, especially during the pandemic.

“The offer proposed by the company improves current conditions and incorporates new benefits in matters highly valued by workers,” BHP said in a statement. “This was built based on conversations held with Union No. 1 and reflects the intention of the company to build an agreement that is mutually beneficial, based on dialog and mutual cooperation.”

(Adds company comment in final paragraph)

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Cleveland Cliffs extended gains from its reversal last week crossing above an area of resistance around 23.45. A lot of earnings on tap among miners.

(Bloomberg) — Rio Tinto Group, the world’s biggest iron ore miner, reported its highest-ever interim profit and will pay $9.1 billion in dividends as the company and its global rivals cash in on this year’s commodities rally.

Rio is the first of the majors to post earnings, kicking off a reporting season that’s expected to see record results across the board. The industry has been one of the biggest beneficiaries from the world’s efforts to emerge from the pandemic. The trillions of dollars poured into recovery packages have ignited demand for commodities like iron ore and copper, driving prices sharply higher and sending inflation pressures rippling through the global economy.

Wednesday’s results are also the first period under the leadership of new Chief Executive Officer Jakob Stausholm, who was appointed after Jean-Sebastien Jacques left the company because of a backlash over Rio’s destruction of an ancient Aboriginal site last year. The surge in commodity prices means the new boss comes in on a high note for Rio, even as the company grapples with a slew of production setbacks that have dogged its operations in recent years.

Disruptions caused by Covid, and especially the company’s ability to move workers to its sites, added to existing problems in the first half, especially around the development of a copper project in Mongolia and at its key profit-driving iron ore mines in Western Australia. Rio’s copper business has also seen production fall as Covid takes its toll.

“In the first half we experienced too much operation instability. We have to sharpen the consistency of our performance,” the CEO said on a media call. “While today’s results clearly demonstrate the underlying quality of our asset base, our operational performance clearly is not where it has been in the past or where we want it to be.”

Stausholm also sounded a cautious note on the outlook for commodities demand in top consumer China.

“The long-term potential for China is still intact but we probably have seen a non-sustainable high level of industrial development in some of the months in the first half of this year,” he said on a call with reporters.

Rio’s shares slipped 0.6% in London, in line with a wider decline among most of its peers.

The company reported first-half underlying earnings more than doubled to $12.2 billion from the same period last year as prices for iron ore and copper surged. The half-year payout — which includes a special dividend of $3 billion — is more than the mining giant returned to shareholders for the whole of 2020 and higher than analysts forecast.

While Rio’s paying out record amounts to shareholders, the company signaled this week it’s also keen to invest in growing production in key commodities — particularly those that will benefit from the world’s shift toward green energy.

The company announced Tuesday it plans to spend $2.4 billion building a lithium mine in Serbia. While it’s the first big move by a mining major into lithium, used in rechargeable batteries, the investment reflects an ongoing push by the world’s biggest mining companies into “future facing” commodities like battery metals or fertilizer, at the same time that the industry is moving to get out of fossil fuels.

“Rio appears to be shifting from austerity and capital returns to more of a focus on growth,” Jefferies analyst Christopher LaFemina wrote in a note. “While Rio had some operational issues in the period, the big picture here is that these are stellar financial results.”

(Updates with comments from CEO in fifth paragraph.)

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RIO earnings call for the period ending June 30, 2021.

Southern Copper Corporation SCCO reported second-quarter 2021 earnings of $1.21 per share, which beat the Zacks Consensus Estimate of $1.15. The whopping 256% year-over-year improvement was primarily driven by higher metal prices and the company’s efforts to improve cost efficiency and productivity.

Net sales were $2,897 million, up 62% year over year. The top line beat the Zacks Consensus Estimate of $2,826 million. Revenues were mainly driven by higher metal prices for copper (81.8%), molybdenum (68.6%), silver (61.9%), zinc (48.3%) and gold (6.2%).

Operating cash cost per pound of copper, including by-product revenue credits, was 59 cents the second quarter, up 11.5% from 66 cents reported in the year ago quarter. Total operating costs inched up 0.9% year over year to $986 million. Operating profit soared 190% to $1,675 million on higher sales. Operating margin in the reported quarter was 57.8% compared with 32.3% in the prior-year quarter. Adjusted EBITDA soared 142% year over year to $1,862 million in second-quarter 2021. Adjusted EBITDA margin was 64.3% compared with the year-ago quarter figure of 43.1%.

Southern Copper Corporation Price, Consensus and EPS Surprise

Southern Copper Corporation price-consensus-eps-surprise-chart | Southern Copper Corporation Quote

Operating Highlights

Copper: Southern Copper mined 237,110 tons of copper during the reported quarter, down 6.3% year over year. Decline in ore grades, due to stripping and maintenance works that were carried out this year after being postponed in 2020 on account of the COVID 19 pandemic, weighed on production numbers in the quarter.

The company expects copper production in 2021 to be around 960,000 tons.

Molybdenum: The company mined 6,982 tons of molybdenum during the reported quarter, reflecting a year-over-year drop of 10.8%. Higher production at Cuajone and La Caridad were offset by lower output at both the Toquepala and Buenavista mines.

Zinc: The company’s zinc production rose 8.9% year over year to 17,111 tons in the quarter under review. Higher production at both the Charcas mine and the San Martin mine was partially offset by lower production at the Santa Barbara mine.

Silver: Southern Copper’s silver production decreased 16.1% year over year to 4,644,000 ounces due to lower production at Buenavista, IMMSA and Toquepala operations.

Financials

Southern Copper generated net cash from operating activities of $1,061.5 million in the second quarter of 2021 compared with $419.3 million in the prior-year quarter. Cash and cash equivalents were at $2,394 million at the end of the second quarter, up from $2,183 million as of 2020 end. Long-term debt was $6,546 million at the quarter end compared with $6,544 million as of 2020 end. The company made capital investments worth $220 million during the quarter under review.

Price Performance

Shares of Southern Copper have appreciated 44.8% over the past year compared with the industry’s rally of 87%.

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Southern Copper currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Cabot Corporation CBT and Dow Inc. DOW.

Nucor has a projected earnings growth rate of around 455.4% for the current year. The company’s shares have soared 130.6% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 42.4% in the past year. It currently flaunts a Zacks Rank #1.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 45.4% in the past year. It currently carries a Zacks Rank #2.

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Zacks Investment Research

Here are four stocks with buy ranks and strong growth characteristics for investors to consider today, July 28th:

Vale S.A. VALE: This producer and seller of iron ore and iron ore pellets carries a Zacks Rank #1 (Strong Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.3% over the last 60 days.

Vale S.A. Price and Consensus

Vale S.A. price-consensus-chart | Vale S.A. Quote

Vale has a PEG ratio of 0.11 compared with 0.19 for the industry. The company possesses a Growth Score of A.

Vale S.A. PEG Ratio (TTM)

Vale S.A. peg-ratio-ttm | Vale S.A. Quote

TotalEnergies SE TTE: This integrated oil and gas company carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.6% over the last 60 days.

TotalEnergies SE Price and Consensus

TotalEnergies SE price-consensus-chart | TotalEnergies SE Quote

TotalEnergies has a PEG ratio of 0.47, compared with 1.40 for the industry. The company possesses a Growth Score of B.

TotalEnergies SE PEG Ratio (TTM)

TotalEnergies SE peg-ratio-ttm | TotalEnergies SE Quote

Camping World Holdings, Inc. CWH: This recreational vehicle and outdoor retailer carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.8% over the last 60 days.

Camping World Holdings Inc. Price and Consensus

Camping World Holdings Inc. price-consensus-chart | Camping World Holdings Inc. Quote

Camping World has a PEG ratio of 0.20, compared with 0.62 for the industry. The company possesses a Growth Score of B.

Camping World Holdings Inc. PEG Ratio (TTM)

Camping World Holdings Inc. peg-ratio-ttm | Camping World Holdings Inc. Quote

AutoNation, Inc. AN: This automotive retailer carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 33.2% over the last 60 days.

AutoNation, Inc. Price and Consensus

AutoNation, Inc. price-consensus-chart | AutoNation, Inc. Quote

AutoNation has a PEG ratio of 0.43, compared with 0.69 for the industry. The company possesses a Growth Score of A.

AutoNation, Inc. PEG Ratio (TTM)

AutoNation, Inc. peg-ratio-ttm | AutoNation, Inc. Quote

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

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In this article you are going to find out whether hedge funds think BHP Group (NYSE:BHP) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Is BHP Group (NYSE:BHP) a first-rate investment now? Investors who are in the know were reducing their bets on the stock. The number of long hedge fund bets fell by 2 in recent months. BHP Group (NYSE:BHP) was in 18 hedge funds' portfolios at the end of March. The all time high for this statistic is 24. Our calculations also showed that BHP isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 20 hedge funds in our database with BHP positions at the end of the fourth quarter.

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, pet market is growing at a 7% annual rate and is expected to reach $110 billion in 2021. So, we are checking out the 5 best stocks for animal lovers. We go through lists like the 15 best Jim Cramer stocks to identify the next Tesla that will deliver outsized returns. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we're going to check out the latest hedge fund action encompassing BHP Group (NYSE:BHP).

Do Hedge Funds Think BHP Is A Good Stock To Buy Now?

At the end of March, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -10% from the previous quarter. On the other hand, there were a total of 18 hedge funds with a bullish position in BHP a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Fisher Asset Management was the largest shareholder of BHP Group (NYSE:BHP), with a stake worth $553.8 million reported as of the end of March. Trailing Fisher Asset Management was Arrowstreet Capital, which amassed a stake valued at $114.3 million. Renaissance Technologies, CQS Cayman LP, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position CQS Cayman LP allocated the biggest weight to BHP Group (NYSE:BHP), around 2.79% of its 13F portfolio. Hourglass Capital is also relatively very bullish on the stock, earmarking 1.58 percent of its 13F equity portfolio to BHP.

Due to the fact that BHP Group (NYSE:BHP) has witnessed declining sentiment from hedge fund managers, logic holds that there was a specific group of money managers who were dropping their positions entirely heading into Q2. Intriguingly, Simon Sadler's Segantii Capital dumped the largest position of all the hedgies watched by Insider Monkey, valued at close to $49.4 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold's LMR Partners was right behind this move, as the fund dumped about $24.7 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q2.

Let's also examine hedge fund activity in other stocks similar to BHP Group (NYSE:BHP). These stocks are McDonald's Corporation (NYSE:MCD), Pinduoduo Inc. (NASDAQ:PDD), Wells Fargo & Company (NYSE:WFC), Danaher Corporation (NYSE:DHR), Medtronic plc (NYSE:MDT), Novo Nordisk A/S (NYSE:NVO), and Costco Wholesale Corporation (NASDAQ:COST). This group of stocks' market values are closest to BHP's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MCD,67,3783829,5 PDD,56,6293871,2 WFC,96,7454581,-3 DHR,81,5796963,0 MDT,65,3627546,6 NVO,23,2929727,0 COST,56,4014769,-5 Average,63.4,4843041,0.7 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 63.4 hedge funds with bullish positions and the average amount invested in these stocks was $4843 million. That figure was $874 million in BHP's case. Wells Fargo & Company (NYSE:WFC) is the most popular stock in this table. On the other hand Novo Nordisk A/S (NYSE:NVO) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks BHP Group (NYSE:BHP) is even less popular than NVO. Our overall hedge fund sentiment score for BHP is 25.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Hedge funds dodged a bullet by taking a bearish stance towards BHP. Our calculations showed that the top 10 most popular hedge fund stocks returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.5% in 2021 through July 23rd but managed to beat the market again by 10.1 percentage points. Unfortunately BHP wasn't nearly as popular as these 5 stocks (hedge fund sentiment was very bearish); BHP investors were disappointed as the stock returned 10.1% since the end of the first quarter (through 7/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.

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Suggested Articles:

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

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Investors looking for stocks in the Mining – Miscellaneous sector might want to consider either Rio Tinto (RIO) or BHP (BHP). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Rio Tinto is sporting a Zacks Rank of #1 (Strong Buy), while BHP has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RIO has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

RIO currently has a forward P/E ratio of 5.33, while BHP has a forward P/E of 7.61. We also note that RIO has a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BHP currently has a PEG ratio of 1.84.

Another notable valuation metric for RIO is its P/B ratio of 2.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BHP has a P/B of 2.43.

These are just a few of the metrics contributing to RIO's Value grade of B and BHP's Value grade of C.

RIO has seen stronger estimate revision activity and sports more attractive valuation metrics than BHP, so it seems like value investors will conclude that RIO is the superior option right now.

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Zacks Investment Research

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. BHP Group Limited Sponsored (BHP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

BHP Group Limited Sponsored is one of 251 companies in the Basic Materials group. The Basic Materials group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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

Over the past 90 days, the Zacks Consensus Estimate for BHP's full-year earnings has moved 44.44% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, BHP has gained about 20.95% so far this year. At the same time, Basic Materials stocks have gained an average of 19.15%. This shows that BHP Group Limited Sponsored is outperforming its peers so far this year.

Looking more specifically, BHP belongs to the Mining – Miscellaneous industry, a group that includes 47 individual stocks and currently sits at #189 in the Zacks Industry Rank. This group has gained an average of 34.92% so far this year, so BHP is slightly underperforming its industry in this area.

Investors in the Basic Materials sector will want to keep a close eye on BHP as it attempts to continue its solid performance.

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LONDON, July 27, 2021–(BUSINESS WIRE)–Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

Jadar will produce battery-grade lithium carbonate, a critical mineral used in large scale batteries for electric vehicles and storing renewable energy, and position Rio Tinto as the largest source of lithium supply in Europe for at least the next 15 years. In addition, Jadar will produce borates, which are used in solar panels and wind turbines.

Jadar will be one of the largest industrial investments in Serbia, contributing 1% directly and 4% indirectly to GDP, with many Serbian suppliers involved in the construction of the mine. Rio Tinto is committed to help develop local businesses so that they can support the operation over the coming decades. It will also be a significant employer, creating 2,100 jobs during construction and 1,000 mining and processing jobs once in production.

Rio Tinto Chief Executive Jakob Stausholm said "We have great confidence in the Jadar project and are ready to invest, subject to approvals. Serbia and Rio Tinto will be well-positioned to capture the opportunity offered by rising demand for lithium, driven by the global energy transition and the project will strengthen our offering, particularly to the European market. It could supply enough lithium to power over one million electric vehicles per year¹.

"The Jadar deposit and its unique mineral, Jadarite, discovered by Rio Tinto geologists in 2004 contains high-grade mineralisation of boron and lithium, supporting a long-life operation in the first quartile of the cost curve for both products."

"We are committed to upholding the highest environmental standards and building sustainable futures for the communities where we operate. We recognise that in progressing this project, we must listen to and respect the views of all stakeholders."

Rio Tinto continues to work with a wide group of local and global experts across all aspects of the environmental, social and governance impacts and has done so for many years. For example, to date we have finalised 12 environmental studies and more than 23,000 biological, physical and chemical analyses of air and water. This consultation is ongoing and will continue to inform our final submissions for approval.

The Jadar development will include an underground mine with associated infrastructure and equipment, including electric haul trucks, as well as a beneficiation chemical processing plant. To minimise the impact to communities, it will be built to the highest environmental standards, including utilising dry stacking of tailings. This innovative method allows the dry tailings to be progressively reclaimed with vegetation and soil with no need for a tailings dam. Water management will be state of the art with a dedicated facility resulting in approximately 70% of raw water coming from recycled sources or treated mine water.

First saleable production is expected in 2026 at a time of strong market fundamentals with lithium demand forecast to grow 25-35% per annum over the next decade. Following ramp up to full production in 2029, the mine will produce ~58,000 tonnes of lithium carbonate, 160,000 tonnes of boric acid (B₂O₃ units) and 255,000 tonnes of sodium sulphate² annually, making Rio Tinto one of the top ten lithium producers in the world. Based on this annual production of lithium carbonate, Rio Tinto aims to produce 2.3 million tonnes of lithium carbonate over the expected 40-year life of mine.

The next steps for the project are seeking an exploitation licence and receipt of regulatory approvals. This includes approval of the environmental impact assessment (EIA) studies, which will shortly be made available to the public for comment. The EIA is required for the commencement of works, with construction targeted to start in 2022.

¹ Assuming 60kWh battery size

² These production targets were previously reported in a release to the Australian Securities Exchange (ASX) dated 10 December 2020, "Rio Tinto declares maiden Ore Reserve at Jadar" (for battery-grade lithium carbonate it was 55,000 tonnes). All material assumptions underpinning the production targets continue to apply and have not materially changed.

This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.

riotinto.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005910/en/

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

Media Relations, UK

Illtud Harri
M +44 7920 503 600

David Outhwaite
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Media Relations, Americas

Matthew Klar
T +1 514 608 4429

Media Relations, Australia

Jonathan Rose
M +61 447 028 913

Matt Chambers
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Jesse Riseborough
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Investor Relations, UK

Menno Sanderse
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David Ovington
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Investor Relations, Australia

Natalie Worley
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Amar Jambaa
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Rio Tinto plc

6 St James’s Square
London SW1Y 4AD
United Kingdom

T +44 20 7781 2000
Registered in England
No. 719885

Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia

T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

Category: Jadar

July 27 (Reuters) – BHP Group has made a C$325 million ($258.45 million) approach for Noront Resources, rivaling an offer from Australian mining billionaire Andrew Forrest's Wyloo Metals for the Canadian nickel-copper miner.

The scramble for Noront underscores the race to secure supplies of battery metals among miners ahead of an expected surge in demand due to the rise of electric vehicles.

Noront owns the early-stage Eagle's Nest deposit, billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey's Bay nickel find in the eastern province of Newfoundland and Labrador, with an initial mine life of 11 years.

BHP said on Tuesday its offer valued Noront at C$0.55 per share, representing a premium of 129% to the firm's closing price on May 21, a day before Wyloo unveiled its proposal.

"For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," BHP Chief Development Officer, Johan van Jaarsveld, said in a statement.

Noront said its board has recommended the Anglo-Australian company's offer.

Wyloo Metals, which is Noront's top shareholder with a 23% stake as of December, had in May offered C$0.315 per share for the stock it did not already hold in the company. Noront had adopted a poison pill to stop the takeover.

Wyloo was not immediately available for comment on Tuesday.

BHP's offer also comes after the mining giant moved its exploration headquarters to Canada and said it would almost double exploration spending for base metals within five years.

(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)

(Reuters) – BHP Group has made a C$325 million ($258.45 million) approach for Noront Resources, rivaling an offer from Australian mining billionaire Andrew Forrest's Wyloo Metals for the Canadian nickel-copper miner.

The scramble for Noront underscores the race to secure supplies of battery metals among miners ahead of an expected surge in demand due to the rise of electric vehicles.

Noront owns the early-stage Eagle's Nest deposit, billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey's Bay nickel find in the eastern province of Newfoundland and Labrador, with an initial mine life of 11 years.

BHP said on Tuesday its offer valued Noront at C$0.55 per share, representing a premium of 129% to the firm's closing price on May 21, a day before Wyloo unveiled its proposal.

"For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," BHP Chief Development Officer, Johan van Jaarsveld, said in a statement.

Noront said its board has recommended the Anglo-Australian company's offer.

Wyloo Metals, which is Noront's top shareholder with a 23% stake as of December, had in May offered C$0.315 per share for the stock it did not already hold in the company. Noront had adopted a poison pill to stop the takeover.

Wyloo was not immediately available for comment on Tuesday.

BHP's offer also comes after the mining giant moved its exploration headquarters to Canada and said it would almost double exploration spending for base metals within five years.

(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)

Noront Board recommends shareholders accept the offer

• Consideration of C$0.55 per share represents a 129% premium to Noront’s unaffected closing price on May 21, 2021 and a 69% premium to Noront’s closing price on July 26, 2021, the last trading day prior to announcing this transaction.

• The members of the Noront Board who voted on the matter unanimously recommend shareholders accept the offer.

• Noront directors and senior management and a major shareholder holding an aggregate of 9.9% of the Noront shares on a fully diluted basis¹ have agreed to tender all of their Noront shares to the offer.

• Noront represents a growth opportunity in a prospective nickel basin capable of delivering a scalable, new nickel-sulphide district and provides the BHP group with more growth options in future facing commodities.

• With proven expertise and capabilities in both exploration and bringing complex base metals projects into production, the BHP group is well positioned to advance Noront’s Ring of Fire projects through the next stages of development.

• To tender your shares contact your broker or Kingsdale Advisors. Contact information is included below.

TORONTO and MELBOURNE, Australia, July 27, 2021 (GLOBE NEWSWIRE) — BHP Lonsdale Investments Pty Ltd (“BHP Lonsdale”), a wholly owned subsidiary of BHP, and Noront Resources Ltd. (TSXV: NOT) ("Noront" or the "Company") today announced that they have entered into a definitive Support Agreement pursuant to which BHP Western Mining Resources International Pty Ltd (the “Offeror”), a wholly-owned subsidiary of BHP Lonsdale, will make a take-over bid to acquire all of the issued and outstanding common shares of Noront for C$0.55 per share in cash (the "Offer"). BHP Lonsdale owns 3.7% of the Noront shares on a fully diluted basis. The total equity value of the transaction is C$325 million (based on 100% of the fully diluted shares outstanding). The members of the Board of Directors of Noront who voted on the matter unanimously recommend that Noront shareholders tender their shares to accept the Offer.

The cash consideration of C$0.55 per share represents a premium of 129% to Noront's unaffected closing price of C$0.24 on May 21, 2021, the last trading day prior to the date that Wyloo Metals Pty Ltd. ("Wyloo") first publicly announced its intention to make an offer for Noront, and a 69% premium to Noront’s closing price of C$0.325 on July 26, 2021, the last trading day prior to the announcement of this transaction. In addition, the C$0.55 per share Offer price is C$0.235 per share, or 75%, higher than the C$0.315 per share proposed by Wyloo in its announcement on May 25, 2021.

Noront CEO, Alan Coutts: “This transaction provides a significant premium to Wyloo's indicative offer, and crystallizes immediate and certain value through an all-cash offer. After careful consideration, Noront’s Board of Directors, with input from its financial and legal advisors and the Special Committee, determined this offer is in the best interests of the company and shareholders. BHP has the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle’s Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come.”

BHP Chief Development Officer, Johan van Jaarsveld: “We are pleased that the Noront board has seen the value in our offer and has recommended it to its shareholders. This is a win-win for both BHP and Noront shareholders. For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity. The highly prospective Eagle’s Nest nickel project provides an excellent platform from which to develop further opportunities in Ontario’s Ring of Fire. For Noront shareholders, this offer recognizes and realizes the full value of Noront’s portfolio, delivering guaranteed shareholder returns in the near term. We are excited to bring our mining expertise and capabilities to develop these long-term opportunities. We look forward to working in constructive partnerships with First Nations peoples, government and communities to realize the untapped potential of these important resources.”

Reasons to accept the Offer

• Compelling premium. The Offer represents a 69% premium to the closing price of C$0.325 per Noront share on the TSXV on July 26, 2021 (the last trading day prior to the announcement of the Offer) and a 129% premium to the closing price of C$0.24 per Noront share on the TSXV on May 21, 2021 (the last trading day prior to the announcement by Wyloo of its intention to make an offer to acquire the Noront shares). The Offer represents a 75% premium to Wyloo’s proposed offer price of C$0.315 per share.

• Liquidity and certainty of value. The Offer immediately crystalizes full and certain value by providing for 100% cash consideration for the Noront shares, giving depositing shareholders certainty of value and immediate liquidity while removing financing, market, regulatory and execution risks to shareholders. Shareholders who deposit their Noront shares under the Offer will have the opportunity to realize cash proceeds and certainty of value for their shares.

• Unanimous recommendation of the Noront Board. The members of the Noront Board of Directors who voted on the matter have, after consultation with the Board’s financial and legal advisors and the Special Committee of the Board, UNANIMOUSLY DETERMINED that the Offer is in the best interests of Noront and the Offer price is fair, from a financial point of view, to Noront shareholders and, accordingly, UNANIMOUSLY RECOMMENDED that shareholders ACCEPT the Offer and DEPOSIT their Noront shares under the Offer.

• Support of shareholders. Certain Noront shareholders, including certain directors and each officer of Noront, have entered into lock-up agreements pursuant to which they have agreed to deposit under the Offer all Noront shares held or to be acquired by them pursuant to the exercise of options or share awards, representing in the aggregate approximately 9.9% of the issued and outstanding Noront shares on a fully-diluted basis, subject to certain terms and conditions of such agreements.

• Minimum tender condition. In order for Noront shareholders to be able to receive the Offer price for their shares, more than 50% of the outstanding Noront shares not beneficially owned or controlled by BHP Lonsdale, the Offeror or any other person acting jointly or in concert with the Offeror must be deposited under the Offer prior to the expiry of the initial deposit period. Shareholders increase the likelihood of receiving the Offer price by depositing their shares under the Offer prior to the expiry of the initial deposit period.

• Project execution and development risk. BHP Lonsdale believes that the Offer provides Noront shareholders with the value inherent in Noront’s portfolio of projects, including the Eagle’s Nest project, without the long-term risks associated with the development and execution of those projects. Given the relatively early stage of Noront’s projects, it will be several years before the Eagle’s Nest project or other projects in the portfolio reach commercial production, if at all.

• Significant growth funding required. Noront’s development and exploration projects have significant funding requirements to bring them to the production stage. Noront currently has limited cash to fund the necessary capital projects and near-term debt maturities, which will be a further drain on cash. Equity financing sufficient to repay debt and fund the progress of Noront’s business plan, if available, may be significantly dilutive to Noront shareholders.

• Search for the best alternative. Following Wyloo’s announcement on May 25, 2021 of its intention to make an offer for the Noront shares, the Special Committee had the opportunity to consider strategic alternatives available to Noront, including, among other alternatives, maintaining the status quo as a publicly-traded company, and the Special Committee and the Noront Board ultimately determined on July 26, 2021 to support the Offer.

• TD Securities fairness opinion. TD Securities Inc. provided the Noront Board of Directors with a verbal opinion to the effect that, as of the date of such opinion, subject to the assumptions, limitations, and qualifications which will be set out in the written opinion, the Offer is fair, from a financial point of view, to Noront shareholders (other than BHP Lonsdale and its affiliates).

• Stifel independent fairness opinion. Stifel Nicolaus Canada Inc. (“Stifel”), who is also acting as independent valuator engaged to prepare a formal valuation of the Common Shares in connection with the proposed Wyloo bid, provided the Special Committee and the Noront Board of Directors with a verbal opinion to the effect that, as of the date of such opinion, subject to the assumptions, limitations, and qualifications which will be set out in the written long form opinion, the Offer is fair, from a financial point of view, to Noront shareholders (other than BHP Lonsdale and its affiliates).

• Fully financed cash offer. The Offer is not subject to a financing condition. The Offeror will satisfy the funding requirements of the Offer from its cash resources.

Transaction details

The Offeror intends to formally commence the take-over bid by mailing a take-over bid circular to shareholders shortly after this announcement. The bid will initially be set to expire 105 days after commencement. Noront has agreed to issue a deposit period news release upon request from the Offeror to reduce the initial deposit period to as few as 35 days from commencement, a right which the Offeror currently intends to exercise. The Offeror will ensure that there remain at least 10 days prior to the end of the initial deposit period at such time as it exercises its right to shorten the initial deposit period.

The Board of Directors of Noront, acting on the recommendation of the Special Committee, and after evaluating the Offer in consultation with Noront's legal and financial advisors, has determined that the Offer is fair, from a financial point of view, to Noront shareholders and in the best interests of Noront and Noront shareholders. As such, the Board of Directors of Noront is recommending that Noront shareholders tender their shares and accept the Offer.

The Offer is conditional upon, among other closing conditions, there having been deposited pursuant to the Offer and not withdrawn at the expiry of the initial deposit period more than 50% of the Noront common shares then outstanding, excluding the Noront common shares beneficially owned, or over which control or direction is exercised, by BHP Lonsdale, the Offeror and any other person acting jointly or in concert with the Offeror. BHP Lonsdale owns 21,659,385 Noront common shares, representing approximately 4.7% (or 3.7% on a fully diluted basis) of the outstanding common shares.

Shareholders holding an aggregate of 9.9% of the Noront common shares on a fully diluted basis, including certain Noront directors and senior management, have entered into lock-up agreements under which they have agreed to deposit their shares under the Offer.

The Support Agreement provides for, among other things, a non-solicitation covenant on the part of Noront (subject to customary fiduciary out provisions). The Support Agreement also provides the Offeror with a right to match any competing offer which the Noront Board of Directors determines to be a superior proposal.

The Offeror is entitled to a termination payment of C$13.0 million (equal to 4.0% of the total equity value of the transaction based on 100% of the fully diluted shares outstanding) if the Support Agreement is terminated in certain circumstances, including if Noront enters into an agreement with respect to a superior proposal, or if the Board of Directors of Noront withdraws or modifies its recommendation with respect to the Offer.

Fairness opinions

The Noront Board of Directors received a verbal opinion on July 26, 2021 from TD Securities Inc., Noront’s financial advisor, as to the fairness as of the date of such opinion, from a financial point of view, of the C$0.55 per share cash consideration offered pursuant to the Offer to holders of Noront common shares (other than BHP Lonsdale and its affiliates).This opinion was based on and subject to the assumptions made, procedures followed, matters considered and limitations and qualifications on the review undertaken, which will be more fully described in the written opinion to be provided by TD Securities Inc. and included in the Noront directors’ circular.

The Noront Board of Directors and the Special Committee also received a verbal opinion on July 26, 2021 from Stifel, who is also acting as independent valuator engaged to prepare a formal valuation of Noront in connection with the proposed Wyloo offer, as to the fairness as of the date of such opinion, from a financial point of view, of the C$0.55 per share cash consideration offered pursuant to the Offer to holders of Noront common shares (other than BHP Lonsdale and its affiliates). This opinion was based on and subject to the assumptions made, procedures followed, matters considered and limitations and qualifications on the review undertaken, which will be more fully described in the written long-form opinion to be provided by Stifel and included in the Noront directors’ circular.

Additional information regarding the Offer will be included in a take-over bid circular which will be mailed to Noront shareholders shortly, and in the Noront directors' circular, which will be mailed to Noront shareholders no later than August 11, 2021. These materials, as well as the Support Agreement, will also be available under Noront's profile on SEDAR at www.sedar.com, and on Noront's website at www.norontresources.com.

How to tender your shares

Only those who tender their shares will receive the cash consideration of C$0.55 per share. To tender your shares today please visit www.noronttender.ca.

Advisors

BMO Capital Markets is acting as financial advisor to BHP and Blake, Cassels & Graydon LLP is acting as legal counsel to BHP. Kingsdale Advisors is acting as strategic shareholder and communications advisor to BHP. TD Securities Inc. is acting as financial advisor, Bennett Jones LLP is acting as legal counsel and Longview Communications & Public Affairs is acting as communications advisor to Noront.

The Depositary and Information Agent for the Offer is Kingsdale Advisors. If you have any questions or require assistance with tendering to the Offer, please contact Kingsdale Advisors, by telephone toll-free in North America at 1-866-581-0512 and at 1-416-867-2272 outside North America or by e-mail at contactus@kingsdaleadvisors.com.

About Noront Resources
Noront Resources Ltd. is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire. www.norontresources.com

About BHP
BHP is a world-leading global resources company. We extract and process minerals, oil and gas, with more than 80,000 employees and contractors, primarily in Australia and the Americas. Our products are sold worldwide, with sales and marketing led through Singapore and Houston, United States. Our global headquarters are in Melbourne, Australia. Our Potash head office is in Saskatoon and we are opening our head office for metals exploration in Toronto.

Our corporate purpose is to bring people and resources together to build a better world. Our strategy is to create value by growing our exposure to a portfolio of world-class, expandable assets in future-facing commodities. We create value for our stakeholders and the communities where we operate by focusing on safety, sustainability, innovation and exceptional performance. BHP has a track record in Canada of more than four decades with interests in potash, copper and nickel exploration, and joint ventures with a range of technology, low emissions and sustainability projects. BHP developed and operated the EKATI Diamond Mine in the Northwest Territories which operated with a strong focus on benefiting local communities, especially First Nations and Métis. Under BHP, EKATI’s spend with local northern and Indigenous suppliers was over 80% of the mine’s budget. BHP also initiated the first Opportunities Agreements with First Nations in the Potash industry in Saskatchewan, establishing agreements with six First Nations near the Jansen Project for wide-ranging mutual benefits, including education and training, employment and procurement.

www.bhp.com

Contact details

Noront Resources

BHP

Forward looking statements

Certain statements contained in this press release contain “forward-looking information” within the meaning of applicable securities laws and are prospective in nature. Forward-looking information and statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

Forward-looking statements include, but are not limited to, statements regarding: the Offer, including the anticipated timing, mechanics, funding, completion, settlement, results and effects of the Offer; reasons to accept the Offer; and the value inherent in Noront’s portfolio of projects, including the Eagle’s Nest project.

Although the Offeror, BHP Lonsdale and Noront believe that the expectations reflected in such forward-looking information and statements are reasonable, such information and statements involve risks and uncertainties, and undue reliance should not be placed on such information and statements. Material factors or assumptions that were applied in formulating the forward-looking information contained herein include, without limitation, the expectations and beliefs of the Offeror and BHP Lonsdale that the Offer will be successful, that all required regulatory consents and approvals will be obtained and all other conditions to completion of the transaction will be satisfied or waived, and the ability to achieve goals. The Offeror, BHP Lonsdale and Noront caution that the foregoing list of material factors and assumptions is not exhaustive. Many of these assumptions are based on factors and events that are not within the control of the Offeror, BHP Lonsdale or Noront, and there is no assurance that they will prove correct. Consequently, there can be no assurance that the actual results or developments anticipated by the Offeror, BHP Lonsdale or Noront will be realized or, even if substantially realized, that they will have the expected consequences for, or effects on, Noront, the Offeror or BHP Lonsdale, or their respective future results and performance.

Forward-looking information and statements in this press release are based on the Offeror’s, BHP Lonsdale’s and Noront’s beliefs and opinions at the time the statements are made, and there should be no expectation that these forward-looking statements will be updated or supplemented as a result of new information, estimates or opinions, future events or results or otherwise, and the Offeror, BHP Lonsdale and Noront disavow and disclaim any obligation to do so except as required by applicable law. Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of the Offeror or any of its affiliates or Noront.

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

^{_______________________________
1} References to fully diluted shares in this press release assume all outstanding convertible loans, warrants, options and share awards are converted into shares.

Publication of 2020 Sustainability Report

LONDON, UK / ACCESSWIRE / July 27, 2021 / Horizonte Minerals Plc, (AIM:HZM)(TSX:HZM) ('Horizonte' or 'the Company') the nickel company focused in Brazil is pleased to announce that it has today published its Sustainability Report for the year ended 31 December 2020. The report is an overview of the Company's sustainability performance over the 2020 financial year, primarily focussed on the Araguaia ferronickel project and also includes data from the Vermelho nickel-cobalt project and corporate head office where appropriate.

The report is available to view on the Company's website at:
https://horizonteminerals.com/uk/en/sustainability_report/

This is the Company's second standalone sustainability report in accordance with the Global Reporting Initiative. The report covers the Company's approach, achievements, and goals for accountable and transparent corporate governance, developing a local, inclusive and diverse workforce, maintaining a safe workplace, minimising our environmental footprint and creating value for stakeholders.

The following key achievements are noted within the Sustainability Report from 2020:

• Zero work-related Covid-19 transmissions

• Zero environmental incidents

• Zero lost time injuries and fatalities

• Appointment of first female director to the Board

• Development of an Integrated Stakeholder Engagement Plan

• Receipt of final permits including energy and water to construct supporting infrastructure for the Araguaia Project

Katie Millar, Head of ESG and Communications at Horizonte commented: 'Our commitment to the highest sustainability standards and the transparent reporting of our sustainability practices positions Horizonte as an important emerging nickel producer.

Unsurprisingly the Covid-19 pandemic dominated both our engagement and activities this year, as well as significantly changing the way in which we work. The health and safety of our employees, contractors and local communities is always our priority, and we therefore are very pleased to report zero work-related Covid-19 transmissions. Whilst the pandemic presented significant challenges, there have been many positive outcomes and we are very proud to have achieved so much in a difficult year.

As our Araguaia Project advances towards the start of construction, our focus in 2020 was to ensure we built strong sustainability-related foundations on which to support the Company's transition to a successful producer. Our priorities for the year included: the creation of an Integrated Management System to enable effective risk management; the implementation of our resettlement programme in line with International Finance Corporation Standards and Equator Principles; the development of a Biodiversity Action Plan to achieve our goal of net positive impact; and the commencement of a CO₂ emissions reduction programme for the Araguaia Project.

Sustainability is critical to our business strategy. We encourage proactive dialogue with all our stakeholders and look forward to reporting on our continued progress as we work to align with additional international standards including the United Nations Sustainable Development Goals.'

For further information, visit www.horizonteminerals.com or contact:

About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil. The Company is developing the Araguaia project, as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, with the aim of being able to supply nickel and cobalt to the EV battery market. Both projects are 100% owned.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes 'forward-looking information' under Canadian securities legislation. Forward-looking information includes, but is not limited to, the ability of the Company to complete the Acquisition as described herein, statements with respect to the potential of the Company's current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; the ability of the Company to complete the Placing as described herein, and the realization of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: the inability of the Company to complete the Acquisition as described herein, exploration and mining risks, competition from competitors with greater capital; the Company's lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company's future payment obligations; potential disputes with respect to the Company's title to, and the area of, its mining concessions; the Company's dependence on its ability to obtain sufficient financing in the future; the Company's dependence on its relationships with third parties; the Company's joint ventures; the potential of currency fluctuations and political or economic instability in countries in which the Company operates; currency exchange fluctuations; the Company's ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company's plans to continue to develop its operations and new projects; the Company's dependence on key personnel; possible conflicts of interest of directors and officers of the Company, the inability of the Company to complete the Placing on the terms as described herein, and various risks associated with the legal and regulatory framework within which the Company operates. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Horizonte Minerals PLC

View source version on accesswire.com:
https://www.accesswire.com/657131/Horizonte-Minerals-PLC-Announces-2020-Sustainability-Report

Cleveland-Cliffs (CLF) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The upward trend in estimate revisions for this mining company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Cleveland-Cliffs, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $1.86 per share, which is a change of +4550% from the year-ago reported number.

Over the last 30 days, one estimate has moved higher for Cleveland-Cliffs while one has gone lower. As a result, the Zacks Consensus Estimate has increased 6.43%.

Current-Year Estimate Revisions

The company is expected to earn $5.74 per share for the full year, which represents a change of +3276.47% from the prior-year number.

The revisions trend for the current year also appears quite promising for Cleveland-Cliffs, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 8.8%.

Favorable Zacks Rank

The promising estimate revisions have helped Cleveland-Cliffs earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Cleveland-Cliffs shares have added 6.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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ClevelandCliffs Inc. (CLF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Horizon Kinetics, an investment management firm, published its second quarter 2021 investor letter – a copy of which can be downloaded here. In its second-quarter letter, the fund talked about money supply, and inflation, debt vs GDP, ESG investing, and other related topics. You can view the fund’s top 5 holdings to have an idea about their top bets for 2021.

In the Q2 2021 investor letter of Horizon Kinetics, the fund mentioned Mesabi Trust (NYSE: MSB), and discussed its stance on the firm. Mesabi Trust is a New York, New York-based royalty trust, that currently has a $446.1 million market capitalization. MSB delivered a 21.24% return since the beginning of the year, while its 12-month returns are up by 105.73%. The stock closed at $33.89 per share on July 26, 2021.

Here is what Horizon Kinetics has to say about Mesabi Trust in its Q2 2021 investor letter:

SFIO CRACHO/Shutterstock.com

Based on our calculations, Mesabi Trust (NYSE: MSB) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MSB was in 2 hedge fund portfolios at the end of the first quarter of 2021, compared to 4 funds in the fourth quarter of 2020. Mesabi Trust (NYSE: MSB) delivered a -8.75% return in the past 3 months.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, pet market is growing at a 7% annual rate and is expected to reach $110 billion in 2021. So, we are checking out the 5 best stocks for animal lovers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

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

With us this morning, we have Southern Copper Corporation, Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the second quarter 2021, as well as answer any questions that you may have. Now, I will pass the call on to Mr. Raul Jacob.

(Bloomberg) — Rio Tinto Group plans to spend $2.4 billion building a lithium mine in Serbia, in the latest sign that the biggest miners are pushing into metals poised to benefit from the green-energy transition.

The biggest producers are churning out record profits after commodities rallied this year, raising the question of what the industry will do with all the extra cash. Most have been focused on returning money to shareholders through dividends and buybacks — analysts are expecting more big payouts in the coming weeks, including from Rio itself when the world’s second-biggest miner reports financial results on Wednesday.

But there are also signs that the industry is increasingly keen to invest more in growing production of key “future facing” commodities like battery metals or fertilizer. Rio’s announcement marks the first big move by a mining major into lithium, which is used in rechargeable batteries.

Earlier Tuesday, larger rival BHP Group announced plans to buy the owner of a Canadian nickel project — another vital component of the types of batteries that power electric cars or back up renewable energy. Rio in May acquired a stake in a Canadian copper project, while BHP has been building a holding in a company planning to develop a giant copper mine in Ecuador, and is expected to sanction a giant potash project as soon as next month.

It also comes at a time when the biggest miners are looking to shift away from fossil fuels, increasingly shunned by investors. Rio sold its last coal mine in 2019 and is the only major miner to be fossil-fuel free. And its peers are slowly following. Anglo American Plc has agreed to sell its last thermal coal mines, while BHP is in the process of exiting thermal coal and is considering getting out of oil and gas.

Rio has been working on the Jadar project in Serbia for years, and had been expected to make an investment decision this year. The mine will help the company diversify away from iron ore, which dominates its earnings, and will allow it to produce lithium close to the key German carmaking industry.

Rio said on Tuesday that the project is expected to start operating in 2026 and hit full-production in 2029. The investment, which still depends on getting the necessary approvals in Serbia, would make the company a top-10 lithium producer.

Still, there may be obstacles. The Serbian government has promised voters it will hold a referendum on the project, while touting its benefit as a huge growth driver for the Serbian economy. Serbian authorities are opposed to exporting lithium carbonate as raw material for batteries and want to see local production of lithium-based batteries, possibly even electric-vehicles.

“The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition,” Rio said in a statement Tuesday.

(Updates with details throughout)

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TORONTO, July 27, 2021 /CNW/ – (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") announced today that its 24% owned subsidiary, Koboltti Chemicals Holding Limited, has entered into an agreement to sell its specialty cobalt business based in Kokkola, Finland ("Freeport Cobalt") to Jervois Mining Limited ("Jervois"). This business was no longer strategic to Lundin Mining following the sale of its interests in Tenke Fungurume in 2016 and the cobalt refinery in Kokkola in 2019.

Under the terms of the transaction, Jervois will acquire 100% of Freeport Cobalt for $85 million, in cash and Jervois shares, plus working capital to be determined at closing. In addition, Lundin Mining and its partners will have the right to receive up to $40 million in contingent cash consideration based on the future performance of the business.

Under the terms of the agreement, the consideration at closing may include up to 9.9% of Jervois shares. Assuming a full allotment of shares, Lundin Mining currently estimates its net share of the proceeds, excluding contingent consideration, would approximate $42 million cash plus its pro-rata 24% share of up to 9.9% of Jervois shares.

The transaction is subject to the completion of Jervois financing and other customary closing conditions and is expected to close in the third quarter of 2021.

About Lundin Mining

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

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on July 27, 2021 at 02:00 Eastern Time.

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; and the Company's integration of acquisitions and any anticipated benefits thereof. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labor; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; global financial conditions and inflation; changes in the Company's share price, and volatility in the equity markets in general; volatility and fluctuations in metal and commodity prices; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; changing taxation regimes; reliance on a single asset; delays or the inability to obtain, retain or comply with permits; risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; exploration, development or mining results not being consistent with the Company's expectations; unavailable or inaccessible infrastructure and risks related to ageing infrastructure; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; ore processing efficiency; community and stakeholder opposition; information technology and cybersecurity risks; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; regulatory investigations, enforcement, sanctions and/or related or other litigation; uncertain political and economic environments, including in Brazil and Chile; risks associated with the structural stability of waste rock dumps or tailings storage facilities; estimates of future production and operations; estimates of operating, cash and all-in sustaining cost estimates; civil disruption in Chile; the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; risks related to the environmental regulation and environmental impact of the Company's operations and products and management thereof; exchange rate fluctuations; reliance on third parties and consultants in foreign jurisdictions; climate change; risks relating to attracting and retaining of highly skilled employees; compliance with environmental, health and safety laws; counterparty and credit risks and customer concentration; litigation; risks inherent in and/or associated with operating in foreign countries and emerging markets; risks related to mine closure activities and closed and historical sites; changes in laws, regulations or policies including but not limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; internal controls; challenges or defects in title; the estimation of asset carrying values; historical environmental liabilities and ongoing reclamation obligations; the price and availability of key operating supplies or services; competition; indebtedness; compliance with foreign laws; existence of significant shareholders; liquidity risks and limited financial resources; funding requirements and availability of financing; enforcing legal rights in foreign jurisdictions; dilution; risks relating to dividends; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; activist shareholders and proxy solicitation matters; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Annual Information Form and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2020, which are available on SEDAR at www.sedar.com under the Company's profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward–looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

SOURCE Lundin Mining Corporation

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2021/27/c8122.html

(In United States dollars, except where noted otherwise)

TORONTO, July 27, 2021 (GLOBE NEWSWIRE) — First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM) today announced that its Board of Directors has approved an interim dividend of CDN$0.005 per share in respect of the financial year ending December 31, 2021.

The dividend will be paid on September 21, 2021 to shareholders of record on August 30, 2021.

The Company has established a Dividend Reinvestment and Share Purchase Plan (the "Plan") for its Canadian resident shareholders ("Eligible Shareholders"). The Plan enables Eligible Shareholders to reinvest the cash dividends paid on all or a portion of their Common Shares into additional Common Shares, which will be issued at 97% of the Average Market Price (as defined in the Plan) and provides the opportunity to make optional cash purchases of additional Common Shares on a semi-annual basis, on dividend payment dates.

To participate in the Plan, registered Eligible Shareholders must deliver a properly completed enrolment form to Computershare Trust Company of Canada ("Computershare") (in its capacity as "Plan Agent" under the Plan), as directed under the Plan, by no later than 4:00 p.m. Eastern time on the fifth business day immediately preceding a dividend record date in order for the cash dividend to which such record date relates to be reinvested under the Plan.

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

Ryan MacWilliam, Director, Business Development and Investor Relations
(416) 361-3400 Toll-free: 1 (888) 688-6577
E-Mail: info@fqml.com

Teck Resources Ltd (TECK) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2%. A quarter ago, it was expected that this company would post earnings of $0.43 per share when it actually produced earnings of $0.48, delivering a surprise of 11.63%.

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

Teck Resources Ltd, which belongs to the Zacks Mining – Miscellaneous industry, posted revenues of $2.08 billion for the quarter ended June 2021, missing the Zacks Consensus Estimate by 1.53%. This compares to year-ago revenues of $1.24 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

Teck Resources Ltd shares have added about 15.7% since the beginning of the year versus the S&P 500's gain of 17.5%.

What's Next for Teck Resources Ltd?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.69 on $2.5 billion in revenues for the coming quarter and $2.35 on $9.28 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Miscellaneous is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

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If you want to know who really controls First Quantum Minerals Ltd. (TSE:FM), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of CA$17b, First Quantum Minerals is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about First Quantum Minerals.

View our latest analysis for First Quantum Minerals

What Does The Institutional Ownership Tell Us About First Quantum Minerals?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that First Quantum Minerals does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at First Quantum Minerals' earnings history below. Of course, the future is what really matters.

First Quantum Minerals is not owned by hedge funds. The company's largest shareholder is Pangaea Investment Management Ltd., with ownership of 18%. In comparison, the second and third largest shareholders hold about 11% and 4.0% of the stock. Additionally, the company's CEO Philip Kelvin Pascall directly holds 0.9% of the total shares outstanding.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 First Quantum Minerals

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

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

Our most recent data indicates that insiders own some shares in First Quantum Minerals Ltd.. Insiders own CA$229m worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 47% stake in First Quantum Minerals. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 18%, of the shares on issue. 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. Case in point: We've spotted 3 warning signs for First Quantum Minerals you should be aware of, and 1 of them is a bit unpleasant.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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

This article by Simply Wall St is general in nature. 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 Teck Resources Limited (TSE:TECK.B), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Teck Resources has a market capitalization of CA$14b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Teck Resources.

Check out our latest analysis for Teck Resources

What Does The Institutional Ownership Tell Us About Teck 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.

As you can see, institutional investors have a fair amount of stake in Teck Resources. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Teck Resources, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Teck Resources is not owned by hedge funds. Our data shows that China Investment Corporation is the largest shareholder with 11% of shares outstanding. With 2.6% and 2.2% of the shares outstanding respectively, The Vanguard Group, Inc. and RBC Global Asset Management Inc. are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Teck Resources

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

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

Our data suggests that insiders own under 1% of Teck Resources Limited in their own names. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own CA$17m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 37% ownership, the general public have some degree of sway over Teck Resources. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Teck Resources you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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

This article by Simply Wall St is general in nature. 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.

United States Steel Corporation X is scheduled to come up with its second-quarter 2021 results after the bell on Jul 29. Strong end-market demand and higher steel prices are likely to have driven its second-quarter results. The company is also expected to have benefited from its actions to improve cost and operating performance in the quarter.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 24%. It delivered an earnings surprise of roughly 18.7% in the last reported quarter.

Shares of U.S. Steel have shot up 198.1% over a year, compared with the industry’s rise of 126.9%.

Image Source: Zacks Investment Research

Zacks Model

Our proven model predicts an earnings beat for U.S. Steel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for U.S. Steel is +1.50%. The Zacks Consensus Estimate for the second quarter is currently pegged at $3.11. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: U.S. Steel currently carries a Zacks Rank #2.

What do the Estimates Say?

U.S. Steel, last month, issued its guidance for the second quarter. It expects second-quarter adjusted earnings per share to be roughly $3.08. It also sees adjusted net income for the quarter to be $880 million. The company also projects adjusted EBITDA to be around $1.2 billion.

The Zacks Consensus Estimate for revenues for U.S. Steel for the second quarter is currently pinned at $4,703 million, indicating a 124.9% year-over-year rise.

Moreover, the Zacks Consensus Estimate for shipments for the company’s Flat-Rolled unit for the quarter currently stands at 2,311,000 tons, reflecting a 0.9% sequential decline. The consensus estimate for average realized price per ton in the unit stands at $1,076, suggesting a 21.2% sequential increase.

The Zacks Consensus Estimate for shipments for U.S. Steel Europe segment is pegged at 1,067,000 tons, indicating a 2.3% sequential rise. The same for average realized price per ton in the unit stands at $837, calling for a 35% sequential increase.

For the Tubular segment, the consensus estimate for shipments is pegged at 113,000 tons, reflecting a 26% sequential rise. The same for average realized price per ton in the unit stands at $1,401, calling for a 2.1% sequential increase.

Some Factors at Play

The company’s second-quarter results are likely to have benefited from strong demand across end markets, higher domestic steel prices, the Big River Steel buyout and its efforts to improve operation efficiency and reduce costs.

U.S. Steel benefited from strong market fundamentals underpinned by strong demand and low steel inventories in the second quarter. Higher steel selling prices are also expected to have driven margins in its Flat-rolled, Mini Mill and U.S. Steel Europe segments in the quarter.

Notably, U.S. steel prices are on a tear driven by an upturn in demand, supply shortages and higher raw material costs. Prices have hit record levels after plunging to pandemic-induced multi-year lows in August 2020. The benchmark hot-rolled coil (“HRC”) prices started to recover in September 2020, and the bull run continues this year. HRC prices shot past the $1,600 per short ton level in May 2021 and remained above that level through June amid tight supply and robust demand. Higher domestic steel prices are likely to have boosted the company’s selling prices and supported its bottom line in the to-be-reported quarter.

United States Steel Corporation Price and EPS Surprise

United States Steel Corporation price-eps-surprise | United States Steel Corporation Quote

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:

LyondellBasell Industries N.V. LYB, scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Westlake Chemical Corporation WLK scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #1.

Eastman Chemical Company EMN, scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.

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United States Steel Corporation (X) : Free Stock Analysis Report

Eastman Chemical Company (EMN) : Free Stock Analysis Report

LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report

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