(Bloomberg) — Rio Tinto Plc workers went on strike over labor contracts at an aluminum smelter in British Columbia on Sunday, their union said in a statement.

About 900 Rio Tinto workers at smelting facilities in Kitimat were on strike as of 12:01 a.m. local time Sunday, Unifor said in a release posted on the union’s website. The union accused the company of violating existing contracts by using contractors and temporary employees and failing to address concerns over pensions and retiree benefits.

“Our union is fully prepared to defend our members’ rights and protect good jobs in Kitimat now and in the future,” Jerry Dias, Unifor’s national president, said in the release.

Staff and employees required under an order by the B.C. Labour Relations Board have taken on duties to continue operations, Simon Letendre, a Rio Tinto spokesman, said in an email. The company is assessing how the strike will affect aluminum production and will work to limit disruptions. The strike commenced after the current collective labor agreement expired, he said.

“Rio Tinto has made every effort to reach a mutually beneficial agreement through negotiating in good faith with Unifor Local 2301 over the past seven weeks, and will continue to do so,” Letendre said. “Regrettably, the union refused the company’s proposal to request the intervention of a mediator.”

The Canadian smelter has been in operation since 1954 and produced 329,000 metric tons of aluminum in 2020, according to the company website.

(Adds company comments in fourth, fifth paragraphs)

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(Bloomberg) — The world’s biggest mining companies are about to start revealing how much cash they’re churning out from this year’s commodity boom. Look out for record profits followed by eye-watering dividend payouts.

The top-five western diversified miners may have earned a combined $85 billion for the first half of the year, according to analyst estimates, more than double the level from a year ago. Rio Tinto Group, the first to report on Wednesday, is expected to announce $22 billion of profit for the six months, on a par with its total for all of 2020.

The mining sector 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 steel, iron ore and aluminum, driving prices sharply higher and sending inflation pressures rippling through the global economy.

Read more: Record Metals Prices Catapult Mining Profits Beyond Big Oil

And while previous rallies lured the industry into ambitious investment plans to build and expand mines, many producers this time appear content to return their profit windfalls to investors. The two biggest — Rio and larger rival BHP Group — have already been funneling record returns to shareholders.

Each of the group of five majors — which also includes Glencore Plc, Anglo American Plc and Vale SA — are expected to report their biggest-ever earnings for the six months through June, according to average analyst estimates compiled by Bloomberg. Rio could pay out 60% of its underlying earnings, according to some analyst estimates.

“This should be a pretty much stellar set of results all round,” said Ben Davis, an analyst at Liberum Capital. “We’re expecting record dividends from BHP and Rio, while Anglo and Glencore also have the potential to surprise.”

Iron ore has been a big driver of profit for the largest producers. The world’s biggest commodity after oil hit a record in the first-half, and has spent the last three months hovering around $200 a ton, a level not seen in a decade. Steel and copper prices both set fresh records this year, thermal coal has also soared, and even diamonds have had a resurgence.

Some prices have retreated recently amid concerns about rising Covid-19 cases and as China moves to curb rising costs. Yet commodity prices across the board remain historically high for now.

U.S. copper miner Freeport-McMoRan Inc. gave a hint of what to expect when it reported last week. The company has wiped out $5 billion of debt in the last 12 months, hitting its target months ahead of schedule, and setting the stage for an increase in shareholder returns.

Anglo American Platinum Ltd. added to that on Monday. The company, 79% owned by Anglo American, paid out a record dividend of $3.1 billion that equates to 100% of first-half headline earnings.

For the iron ore miners such as Vale, BHP and Rio, it promises to be even better. Demand for the steelmaking ingredient, especially from China, is rampant and supply is constrained. China, which accounts for about half of global steel production, is making a record amount of the metal, while iron ore supply has never recovered from two dam disasters in Brazil.

Of course, the mining companies are not immune to inflation themselves — iron ore operations in Australia are grappling with a sharp rise in labor costs due to worker shortages. And governments in resource-rich countries, especially in Latin America, are also looking at the industry as a source of extra revenue after the commodities rally.

For now though, the miners are cashing in.

(Updates with Anglo American Platinum dividend in 10th paragraph.)

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FORT DAUPHIN, Madagascar, July 26, 2021–(BUSINESS WIRE)–Rio Tinto has signed a power purchasing agreement for a new renewable energy plant to power the operations of its QMM ilmenite mine in Fort Dauphin, Southern Madagascar.

This project, which uses solar and wind energy, will significantly contribute towards Rio Tinto’s operations in Madagascar achieving its carbon neutral objective by 2023. The project is part of a broader initiative to reduce the ilmenite mine’s environmental footprint which includes programmes that focus on emissions reduction, waste and water management, carbon sequestration, ecological restoration and reforestation.

The renewable energy plant, to be built, owned and operated by independent power producer, CrossBoundary Energy (CBE), over a 20-year period, will consist of an 8 MW solar facility and a 12 MW wind energy facility to power mining and processing operations. There will also be a lithium-ion battery energy storage system of up to 8.25 MW as reserve capacity to ensure a stable and reliable network.

It will supply all of QMM’s electricity demand during peak generation times, and up to 60 percent of the operations’ annual electricity consumption. QMM will replace the majority of the power it currently supplies to the town of Fort Dauphin and the community of around 80,000 people with renewables.

The renewable energy plant will comprise more than 18,000 solar panels and up to nine wind turbines located in the Port Ehoala Park area. Construction is expected to begin this year with the solar plant scheduled to start operations at the beginning 2022. The wind power plant is planned to commence construction early 2022 and become operational by the end of 2022.

QMM President Ny Fanja Rakotomalala said: "This project is a strong example of our commitment with the Government of Madagascar to the sustainable development of the region. On a sunny and windy day, all the electricity needed by QMM and the Fort Dauphin community will be generated by the Malagasy sun and wind. It is a major step forward on our journey towards a truly sustainable mine, that protects and promotes the uniqueness of Madagascar’s environment and benefits the community with reliable and clean electricity."

Secretary General, Ministry of Energy and Hydrocarbons of the Republic of Madagascar, Andriatongarivo Tojonirina Andrisoa, said: "The Government of Madagascar is committed to the energy transition and to setting up Madagascar to be energy independent, as stated in the President’s Initiative pour l’Emergence de Madagascar (IEM). QMM’s renewable energy project, technically ambitious with two installations dedicated to solar and wind, is fully aligned with that vision. It makes Madagascar a global reference point for the use of renewable energy to supply clean, reliable power in the mining sector and other industries, and to the community."

Rio Tinto Minerals Chief Executive Sinead Kaufman said: "With this flagship project, QMM is leading the way at Rio Tinto and in Madagascar in utilizing renewable energy to power mining operations and reduce carbon emissions."

CrossBoundary Energy Co-founder and Managing Partner Matt Tilleard commented: "Emissions from electricity use in mining is estimated to account for around 1% of all greenhouse gases globally. Rio Tinto is leading the way in demonstrating how mines can seize a huge opportunity to reduce these emissions. We are focused on delivering cleaner power to businesses and were therefore able to offer Rio Tinto a flexible, fast, all-equity funding approach, combined with our reliable track record as one of Africa’s largest distributed renewable utilities."

About QIT Madagascar Minerals

QIT Madagascar Minerals (QMM), is a joint venture between Rio Tinto (80%) and the government of Madagascar (20%). It is located near Fort Dauphin in the Anosy region of south-eastern Madagascar, and primarily produces ilmenite which is a major source of titanium dioxide, predominantly used as a white pigment in products such as paints and paper.

QMM also produces zirsill used in the manufacturing ceramic tiles and digital screens, and monazite, a rare earth element, used in renewable energy technologies like high-powered permanent magnets used in wind turbines and electric vehicles.

QMM includes the deep-water Port d’Ehoala, where the raw material is shipped to the Rio Tinto Fer et Titane plant in Canada and processed into titanium dioxide.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005386/en/

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Rio Tinto plc
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London SW1Y 4AD
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T +44 20 7781 2000
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Category: QMM

(Adds background, details from release)

July 26 (Reuters) – Miner Rio Tinto said on Monday it planned to cut production at its BC Works aluminium smelter in Kitimat, Canada to 35% following a strike initiated by the Canadian union Unifor after negotiation talks failed.

Unifor said on Sunday about 900 workers had started strike action at the miner's operations in the western Canadian province of British Columbia, after nearly seven weeks of unproductive talks over proposed changes to workers' retirement benefits and unresolved grievances.

Rio Tinto employs about 1,050 people at the BC Works smelter and Kemano powerhouse, of which the union represents about 900 workers.

The miner, which has been granted an essential services order by the British Columbia Labour Relations Board, said a reduced workforce is also in place to ensure the Kemano hydro-power facility continues to run. [https://refini.tv/2Wf54r0 ] (Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini Ganguli)

(Bloomberg) — Southern Copper Corp. missed quarterly output expectations as the world’s fifth-largest producer deals with the lingering effects of the pandemic.

While producer profits are booming thanks to high prices fueled by the pandemic recovery, their operations are paying the price of Covid-fighting measures. Southern had to process lower quality ore last quarter after undertaking earthworks and maintenance that had been postponed last year in a bid to maintain production with reduced staffing.

After an initial supply shock when the world went into lockdown early last year, copper suppliers largely bounced back by focusing on the bare essentials of churning out metal. Non-essential workers stayed home as mine preparation and upkeep efforts were delayed. But that was a short-term fix that carried risks for future output.

READ MORE: Future of Copper Production Thrown Into Doubt by Worker Cuts

Southern Copper’s operations in Peru and Mexico produced 237,110 metric tons in the second quarter, down 6.3% from the previous quarter and falling short of the 241,630-ton average estimate among analysts tracked by Bloomberg. The giant Escondida mine in Chile is also playing catchup with mine development.

Still, Southern is targeting a recovery to 960,000 tons for the year and a 259% surge in quarterly net income from a year earlier helps dull the pain of operational headwinds. It also remains hopeful that the economic benefits of its Tia Maria project will help it secure permits under the incoming government of left-winger Pedro Castillo.

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MONTREAL, July 26, 2021–(BUSINESS WIRE)–Rio Tinto has begun reducing production at its BC Works aluminium smelter in Kitimat, Canada due to a strike initiated by the Unifor Local 2301 union after negotiations failed to reach a new collective labour agreement.

Production will be reduced to around 35 per cent of the smelter’s 432,000 tonne annual capacity, so that it can safely be operated by staff and employees required under an essential services order granted by the BC Labour Relations Board.

Rio Tinto Aluminium managing director Atlantic Operations Samir Cairae said: "Reducing production will have a significant impact on the business and community, but we are committed to taking the necessary steps to operate safely with a reduced workforce.

"We have made every effort to reach a mutually beneficial agreement through negotiating in good faith over the past seven weeks, including proposing an independent mediator which was rejected by Unifor Local 2301.

"We will continue to look for longer term solutions with the union and work closely with customers and suppliers to minimise disruptions."

A reduced workforce is also in place to ensure the Kemano hydro-power facility continues to run safely.

Rio Tinto employs approximately 1,050 people at the BC Works smelter and Kemano powerhouse, including around 900 employees represented by Unifor Local 2301. The company contributed C$780 million to the economy of British Columbia in 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005751/en/

Contacts

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

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Illtud Harri
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Matthew Klar
T +1 514 608 4429

Media Relations, Australia
Jonathan Rose
M +61 447 028 913

Matt Chambers
M +61 433 525 739

Jesse Riseborough
M +61 436 653 412

Investor Relations, UK
Menno Sanderse
M: +44 7825 195 178

David Ovington
M +44 7920 010 978

Clare Peever
M +44 7788 967 877

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

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

Investor Relations, Australia
Natalie Worley
M +61 409 210 462

Amar Jambaa
M +61 472 865 948

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

T +61 3 9283 3333
Registered in Australia
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riotinto.com

Category: BC Works

Discovered over a century ago, helium was never intended for balloons.

It wasn’t supposed to be a party gas. At the height of the Cold War, the United States recognized its strategic nature and started stockpiling it and controlling supply and pricing at a Federal Helium Reserve in Amarillo, Texas.

Three decades later, in the 1990s, the federal government decided that helium could be sold to private entities.

Now, reports say those reserves have been depleted, and the reserve is slated for shutdown in September, while the United States is taking over 2 billion cubic feet of helium off the market.

For national security, Big Tech, biomedicine and even the space race, the situation may now be nearing critical.

And one junior Canadian explorer who recently scooped up highly prospective helium property in both the U.S. state of Montana and the Canadian province of Alberta is hoping to be part of the change for the course our helium trajectory.

Avanti Energy Inc. (TSX:AVN.V; US OTC:ARGYF) is aiming for the next big commercial helium discovery, and it’s a small-cap stock that could end up rewarding early-in investors significantly, if successful.

And from where we stand, it looks well positioned to take advantage of a critical supply squeeze looming for helium.

Our Tech Future May Depend on Helium

Everything from Big Data, fiber optics and MRIs to astrophysics, space travel and cryogenics relies on helium.

There’s no winning the race against China for global tech dominance without helium.

There might be no winning the space race, either.

Advancements in healthcare could be severely hindered.

You probably wouldn’t be able to get an MRI.

And perhaps most significantly, at least to the masses in the immediate term …

No one would be able to stream TV and movies … or even use a cell phone.

Helium is usually found in natural gas reservoirs and mined as a by-product of natural gas.

This noble gas is so valuable because it’s non-combustible, very unreactive, highly stable and so light that Earth’s gravity cannot hold it. Helium is non-toxic and boils at -268 degrees Celsius–near absolute zero, which is the lowest temperature in the universe. No other element can perform the invaluable act of remaining a liquid at such temperatures.

That’s what makes helium a noble gas that cannot be replaced.

And investors will like the fact that it’s already a hundred times more expensive than natural gas, which sells for around $3 per Mcf.

Helium can sell for as much as $400 Mcf, and isn’t traded like a commodity—yet.

Now, get ready for what looks to us like the supply squeeze of the century. One that could last decades.

There is no better time for a junior explorer to be launching exploration in prospective helium territory.

And it looks like there are no better venues that Alberta—which is already witnessing a helium land rush—and Canada’s Saskatchewan, which is on trend with key areas of Montana.

Fast-Paced Acquisitions

Avanti Energy Inc. (TSX: AVN.V; US OTC: ARGYF) took decisive action in the second quarter of this year, with four major acquisition moves we think are significant.

First, it acquired the license for over 6,000 acres from the Government of Alberta in highly prospective helium territory.

Next, it scooped up another ~2,500 acres in Alberta. Those projects–Knappen and Aden–show helium up to 2% and helium-trapping structures.

Shortly afterwards, Avanti moved on over 60,000 acres in northern Montana, on territory that is said to be on-trend with both Saskatchewan’s helium prospects and Alberta’s.

In mid-April, Avanti moved to acquire the helium license rights to a 12,000-acre land package in Montana. According to reports, that deal should close soon.

In June, Avanti announced intentions to purchase the helium license rights for ~50,000 more acres in Montana. The deal is still being finalized, but initial data shows multiple formations (similar to the Aden project) and data from surrounding wells makes this one even more promising in our perspective: That data showed 1.5%-2.2% helium in the Cambrian and 0.7%-1.7% helium in the Devonian. Again, with high nitrogen levels (up to 96%).

Back in Alberta, at Avanti’s Knappen project, data shows helium concentrations up to 2.18%, with nitrogen up to 98%. Additionally, data shows deep structural features for trapping helium. (Keep in mind that in Alberta, reports say 1% helium is considered a very good concentration.)

At the Aden project, also in Alberta, similar results and helium concentrations have been shown in multiple zones.

For Alberta, it’s great news because the province is reinventing itself: It’s not only going to be about dirty oilsands in the future. The future is critical gas supplies, and Alberta could become a major global hub for helium.

Experienced Explorers Who’ve Been Part Of This Before

The key figures behind Avanti Energy Inc. (TSX: AVN.V; US OTC: ARGYF) are experienced in exploration. And they know discovery, too.

Several team members were involved in giant Encana’s natural gas discovery in Canada’s Montney shale—a play that ended up producing around 300,000 boe/d over 15 years.

One of those key figures is Chris Bakker, Avanti’s CEO who has over 20 years of O&G experience, including with Encana. His expertise in acquisitions, exploration and production has already been tested in the past.

Are Insiders Going All-In on Avanti?

Reports show that insiders have been buying up this stock, and we think that’s always a good sign …

It’s now on analyst radar, too.

Recently, Beacon Securities Limited initiated coverage on Avanti, stating that with the new ~50,000 acres in Montana, Avanti could have “a contiguous land block that may support several years of drilling”.

Beacon also noted that “if successful, numerous development wells would follow with production in H2/22 once facilities are configured and installed”.

But in our view this one could move fast.

On July 12^th, following a detailed geophysical review of seismic data, Avanti Energy Inc. (TSXV: AVN) (US OTC PINK: ARGYF) identified three potential drilling locations on its Aden property and says it will now be moving forward with its planned Q3/Q4 drilling program.

Not only did the team’s geophysical review of seismic data confirm a four-way structural close with over 75 meters of relief, ideal for trapping helium, Avanti said it would target multiple horizons showing up to ~95% nitrogen and ~2% helium from multiple adjacent wells and previously abandoned wells on the property.

Not only is Avanti moving fast, but we think the land rush in Alberta is taking on proportions appropriate for a looming helium shortage that could make or break our tech dominance, and much, much more.

Tech resource companies to watch:

As demand for energy continues to explode in a post-pandemic China, CNOOC Limited (NYSE:CEO, TSX:CNU) will likely be one of the biggest winners in this boom. It’s the country’s most significant producer of offshore crude oil and natural gas and may well be one of the most controversial oil stocks for investors on the market. A label that has nothing to do with its operations, however.

Just last month, U.S. regulators announced their intention to de-list Chinese companies from the New York Stock Exchange, going back on their announcement just a few days later. The sustained negative press surrounding Chinese companies, however, has put CNOOC in an uncomfortable position for investors. While many analysts see the company as significantly undervalued, it is still struggling to gain traction in U.S. markets.

Lithium Americas Corp. (NYSE:LAC, TSX:LAC) is one of North America’s most important and successful pure-play lithium companies. With two world-class lithium projects in Argentina and Nevada, Lithium Americas is well-positioned to ride the wave of growing lithium demand in the years to come. It’s already raised nearly a billion dollars in equity and debt, showing that investors have a ton of interest in the company’s ambitious plans, and it will likely continue its promising growth and expansion for years to come.

It’s not ignoring the growing demand from investors for responsible and sustainable mining, either. In fact, one of its primary goals is to create a positive impact on society and the environment through its projects. This includes cleaner mining tech, strong workplace safety practices, a range of opportunities for employees, and strong relationships with local governments to ensure that not only are its employees being taken care of, but locals as well.

Lithium Americas’ efforts have paid off in the market, as well. While many companies across multiple industries struggled last year, Lithium Americas’ stock soared. In February last year, the company’s stock price was sitting at just $5.26, while today it is at $13.32, representing a more than 100% return for investors who bought in just a year ago.

Turquoise Hill Resources Ltd. (NYSE:TRQ, TSX:TRQ) is a key player in Canada’s resource and mineral industry. It is a major producer of coal and zinc, two resources with distinctly different futures. While headlines are already touting the end of coal, zinc is a mineral that will play a key role in the future of energy for years and years to come.

In addition to its zinc operations, Turquoise Hill is also a significant producer of Uranium. Uranium is a key material in the production of nuclear energy, which many analysts are suggesting could be a major component in the global transition to cleaner energy. While the mineral has not seen significant price action in recent years, there are a number of new projects set to come online across the globe in the medium term, which could be a boon to Turquoise Hill, especially as alternative energies gain traction in the marketplace.

Teck Resources (NYSE:TECK, TSX:TECK) could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy, Gold, Silver and Molybdenum assets. It’s even involved in the oil scene! With its free cash flow and a lower volatility outlook for base metals in combination with a growing push for copper and zinc to create batteries, Teck could emerge as one of the year’s most exciting miners.

Though Teck has not quite returned to its January highs, it has seen a promising rebound since April lows. In addition to its positive trajectory, the company has seen a fair amount of insider buying, which tells shareholders that the management team is serious about continuing to add shareholder value. In addition to insider buying, Teck has been added to a number of hedge fund portfolios as well, suggesting that not only do insiders believe in the company, but also the smart money that’s really driving the markets.

Celestica (NYSE:CLS, TSX:CLS), like Magna, is a key company in the lithium boom due to is role as one of the top manufacturers of electronics in the Americas. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy and enough health technology.

Thanks to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and developers.

Like the rest of the market, Celestica fell victim to the massive selloff sparked by the global COVID-19 pandemic, seeing its share price fall into the $2 range in March 2020. Since then, however, the stock price has soared by nearly 400% to its current trading price of $8.11. As the world races towards a greener future, however, the upside potential for Celestica could be even higher.

By. James Burgess

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that prices for helium will significantly increase due to global demand and use in a wide array of industries and that helium will retain its value in future due to the demand increases and overall shortage of supply; that Avanti can pursue exploration of the recently acquired licenses of property in Alberta; that Avanti’s licenses in respect of the Alberta property can achieve drilling and mining success for helium; that Avanti will be able acquire the rights to helium on 12,000 acres of prospective land in Montana pursuant to its announced letter of intent; that Avanti will be able acquire the rights to helium on approximately 50,000 acres of additional prospective land in Montana pursuant to two recently announced binding agreements; that the Avanti team will be able to develop and implement helium exploration models, including their own proprietary models, that may result in successful exploration and development efforts; that historical geological information and estimations will prove to be accurate or at least very indicative of helium; that high helium content targets exist in the Alberta and Montana projects; that results of the recent geophysical review of seismic data used to identify potential drilling targets will provide accurate that result in successful drilling and exploration efforts on the Avanti properties; and that Avanti will be able to carry out its business plans, including timing for drilling and exploration. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that demand for helium is not as great as expected; that alternative commodities or compounds are used in applications which currently use helium, thus reducing the need for helium in the future; that the Company may not fulfill the requirements under its Alberta licenses for various reasons or otherwise cannot pursue exploration on the project as planned or at all; that the Company may not be able to acquire the helium rights to the Montana lands as contemplated in the letter of intent, binding agreements or at all; that the Avanti team may be unable to develop any helium exploration models, including proprietary models, which allow successful exploration efforts on any of the Company’s current or future projects; that Avanti may not be able to finance its intended drilling programs to explore for helium or may otherwise not raise sufficient funds to carry out its business plans; that geological interpretations and technological results based on current data may change with more detailed information, analysis or testing; and that despite promise, results of the recent geophysical review of seismic data used to identify potential drilling targets may be inaccurate or otherwise fail to result in successful drilling and exploration efforts on the Avanti properties, and that there may be no commercially viable helium or other resources on any of Avanti’s properties. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

DISCLAIMERS

This communication is for entertainment purposes only. Never invest purely based on our communication. Oilprice.com and its owners and affiliates (“Oilprice.com”) have not been compensated by Avanti but may in the future be compensated to conduct investor awareness advertising and marketing for TSXV:AVN. The information in this report and on our website has not been independently verified and is not guaranteed to be correct.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares of Avanti and therefore has an additional incentive to see the featured company’s stock perform well. Oilprice is therefore conflicted and is not purporting to present an independent report. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

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Cleveland-Cliffs, featured in IBD 50 Stocks To Watch, is getting close to a breakout amid high steel prices and heavy demand.

In this article, we discuss the 15 best value stocks to invest in. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Value Stocks to Invest In.

Fears of inflation have hit the stock market in the past few weeks as the demand for goods and services rises and results in shortages, leading to pricing wars across the globe. In addition to the increased demand, the reopening of the economy after the year-long coronavirus lockdowns has also impacted the smooth movement of materials from one place to another, leading to supply chain problems and further aggravating the pricing situation. As a result, investors are turning to value stocks to diversify their growth-focused portfolios.

Between 1930 and 2010, value stocks outperformed growth stocks by an annual margin of 4-5 percentage points. That's why there is a large cohort of value investors, including Warren Buffett, who are devoted to this investment strategy. Things changed dramatically over the last 10 years, growth stocks outperforming value stocks by more than 100 percentage points cumulatively. Russell 2000 Growth ETF also returned 105% over the last 5 years, beating the Russell 2000 Value ETF by 49 percentage points. Since February of this year though Russell 2000 Value ETF outperformed the Russell 2000 Growth ETF by 15 percentage points. Value investors are hopeful that this may be the beginning of another chapter where mean reversion leads to value outperforming growth stocks for several years. That's why we decided to take a look at the best value stocks to invest in right now.

Some of the popular value stocks on the market in the United States include Apple Inc. (NASDAQ: AAPL), Bank of America Corporation (NYSE: BAC), Berkshire Hathaway Inc. (NYSE: BRK-A), and General Motors Company (NYSE: GM), among others. These firms have historically delivered solid earnings and remained relatively immune from economic recessions over the past few years, mostly because of the competitive edge of their products and services over peers in the open marketplace.

Value investing seems to be gaining traction as growth stocks undergo a period of turmoil. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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With this context in mind, here is our list of the 15 best value stocks to invest in. These were ranked keeping in mind the size of the company, the price to earnings ratio, hedge fund sentiment, analyst ratings, and basic business fundamentals.

Best Value Stocks to Invest In

15. Barrick Gold Corporation (NYSE: GOLD)

Number of Hedge Fund Holders: 49 PE Ratio: 14.90

Barrick Gold Corporation (NYSE: GOLD) is a Canadian mining firm with interests in copper and gold, among other metals. It is placed fifteenth on our list of 15 best value stocks to invest in. The company’s shares have returned 0.44% to investors over the past week. On July 15, the firm announced that it was on track to meet production targets for the full-year, reporting that it had produced 1.04 million oz of gold in the second quarter. The firm has a market cap of over $36 billion and posted $12.6 billion in revenue last year.

On July 16, investment advisory National Bank maintained an Outperform rating on Barrick Gold Corporation (NYSE: GOLD) stock but lowered the price target from C$39 to C$38. Mike Parkin, an analyst at the firm, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, investment firm First Eagle Investment Management is a leading shareholder in Barrick Gold Corporation (NYSE: GOLD) with 27 million shares worth more than $534 million.

Just like Apple Inc. (NASDAQ: AAPL), Bank of America Corporation (NYSE: BAC), Berkshire Hathaway Inc. (NYSE: BRK-A), and General Motors Company (NYSE: GM), Barrick Gold Corporation (NYSE: GOLD) is one of the best value stocks to invest in.

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE: GOLD) was one of them. Here is what the fund said:

14. ING Groep N.V. (NYSE: ING)

Number of Hedge Fund Holders: 10 PE Ratio: 14.50

ING Groep N.V. (NYSE: ING) stock has returned 67% to investors over the past twelve months. It is ranked fourteenth on our list of 15 best value stocks to invest in. The firm is based in the Netherlands and markets banking services. In earnings results for the first quarter, posted on May 6, the firm reported a net income of €1.01 billion, compared to. €670 million over the same period last year. The total income for the first quarter was $4.7 billion, up more than 4% year-on-year and beating market estimates by $260 million.

On July 9, investment advisory UBS maintained a Buy rating on ING Groep N.V. (NYSE: ING) stock and raised the price target to EUR 12 from EUR 11.70. Johan Ekblom, an analyst at the advisory, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in ING Groep N.V. (NYSE: ING) with 41.7 million shares worth more than $510 million.

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and ING Groep N.V. (NYSE: ING) was one of them. Here is what the fund said:

13. ArcelorMittal (NYSE: MT)

Number of Hedge Fund Holders: 21 PE Ratio: 14.20

ArcelorMittal (NYSE: MT) is placed thirteenth on our list of 15 best value stocks to invest in. The company’s shares have returned 179% to investors over the past year. The company operates in the steel and mining business and is based in Luxembourg. On July 13, the firm announced that it had signed an understanding with the government in Spain to build the first zero carbon steel plant in the world. The firm revealed that the total cost of setting up the facility would lie around $1.2 billion.

On July 14, investment advisory Barclays initiated coverage of ArcelorMittal (NYSE: MT) stock with an Overweight rating and a price target of EUR 36, highlighting a positive outlook for European steel makers in the coming twelve months.

At the end of the first quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $709 million in ArcelorMittal (NYSE: MT), up from 18 in the preceding quarter worth $511 million.

Alongside Apple Inc. (NASDAQ: AAPL), Bank of America Corporation (NYSE: BAC), Berkshire Hathaway Inc. (NYSE: BRK-A), and General Motors Company (NYSE: GM), ArcelorMittal (NYSE: MT) is one of the best value stocks to invest in.

12. Ford Motor Company (NYSE: F)

Number of Hedge Fund Holders: 49 PE Ratio: 13.9

Ford Motor Company (NYSE: F) stock has offered investors returns exceeding 99% over the course of the past year. It is ranked twelfth on our list of 15 best value stocks to invest in. The firm makes and sells automotives and is based in Michigan. Some of the products it markets include trucks, cars, sport utility vehicles, electric vehicles, and luxury vehicles, among others. On July 13, the firm announced that it would be partnering with ride hailing firm Lyft and Argo AI for an autonomous vehicle fleet that is set to hit the streets with human backup drivers the next year before going fully autonomous in the months after the launch..

On July 16, investment advisory Bank of America maintained a Buy rating on Ford Motor Company (NYSE: F) stock and raised the price target to $18 from $17, underlining that the firm was expected to beat market estimates for earnings in the second quarter.

At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Ford Motor Company (NYSE: F), up from 41 in the preceding quarter worth $1.6 billion.

In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE: F) was one of them. Here is what the fund said:

11. Franklin Resources, Inc. (NYSE: BEN)

Number of Hedge Fund Holders: 31 PE Ratio: 13.63

Franklin Resources, Inc. (NYSE: BEN) is a California-based asset management holding company. It is placed eleventh on our list of 15 best value stocks to invest in. The company’s shares have offered investors returns exceeding 39% over the course of the past twelve months. In earnings results for the second quarter, posted on May 4, the firm reported earnings per share of $0.79, beating market estimates by $0.04. The revenue over the period was more than $2 billion, up over 58% year-on-year.

On May 5, investment advisory Deutsche Bank maintained a Hold rating on Franklin Resources, Inc. (NYSE: BEN) stock but raised the price target to $33 from $29. The ratings update was issued following encouraging earnings results for the first quarter.

At the end of the first quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $198 million in Franklin Resources, Inc. (NYSE: BEN), down from 33 in the previous quarter worth $268 million.

In addition to Apple Inc. (NASDAQ: AAPL), Bank of America Corporation (NYSE: BAC), Berkshire Hathaway Inc. (NYSE: BRK-A), and General Motors Company (NYSE: GM), Franklin Resources, Inc. (NYSE: BEN) is one of the best value stocks to invest in.

10. State Street Corporation (NYSE: STT)

Number of Hedge Fund Holders: 32 PE Ratio: 13.60

State Street Corporation (NYSE: STT) is ranked tenth on our list of 15 best value stocks to invest in. The stock has returned 35% to investors over the past year. The company markets financial services and is based in Boston. In earnings results for the second quarter, posted on July 16, the firm reported earnings per share of $1.97, beating market estimates by $0.17. The revenue over the period was over $3 billion, up more than 3% year-on-year and beating market predictions by $80 million.

On July 19, investment advisory Deutsche Bank maintained a Buy rating on State Street Corporation (NYSE: STT) stock and raised the price target to $105 from $104. The ratings update was issued following strong quarterly results posted by the firm.

At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $866 million in State Street Corporation (NYSE: STT), up from 31 in the previous quarter worth $502 million.

9. Chubb Limited (NYSE: CB)

Number of Hedge Fund Holders: 41 PE Ratio: 13.55

Chubb Limited (NYSE: CB) is an insurance company based in Switzerland. It is placed ninth on our list of 15 best value stocks to invest in. The company’s shares have returned 26% to investors over the past twelve months. On April 27, the firm posted earnings for the first quarter, reporting earnings per share of $2.52, beating market predictions by $0.03. The net premium over the period was more than $8.2 billion, up 5.5% compared to the net premium over the same period last year and beating market estimates by $490 million.

On July 12, investment advisory Deutsche Bank reiterated a Buy rating on Chubb Limited (NYSE: CB) stock, raising the price target to $170 from $142, underlining confidence in the company ahead of the release of quarterly earnings results.

At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Chubb Limited (NYSE: CB), up from 34 the preceding quarter worth $1.1 billion.

Apple Inc. (NASDAQ: AAPL), Bank of America Corporation (NYSE: BAC), Berkshire Hathaway Inc. (NYSE: BRK-A), and General Motors Company (NYSE: GM) are some of the best value stocks to invest in, just like Chubb Limited (NYSE: CB).

In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Chubb Limited (NYSE: CB) was one of them. Here is what the fund said:

8. Cleveland-Cliffs Inc. (NYSE: CLF)

Number of Hedge Fund Holders: 36 PE Ratio: 12.20

Cleveland-Cliffs Inc. (NYSE: CLF) stock has returned 266% to investors over the past year. It is ranked eighth on our list of 15 best value stocks to invest in. The company markets steel products and is based in Ohio. On July 22, the firm posted earnings for the second quarter, reporting earnings per share of $1.46, missing market estimates by $0.05. The revenue over the period was close to $5 billion, up more than 250% compared to the revenue over the same period last year and beating estimates by $50 million.

On July 8, investment advisory Argus initiated coverage of Cleveland-Cliffs Inc. (NYSE: CLF) stock with a Buy rating and a price target of $26, noting that the firm looked set for steep growth on the back of two big purchases and long-term catalysts.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Cleveland-Cliffs Inc. (NYSE: CLF) with 13 million shares worth more than $262 million.

7. Huntington Bancshares Incorporated (NASDAQ: HBAN)

Number of Hedge Fund Holders: 27 PE Ratio: 12.10

Huntington Bancshares Incorporated (NASDAQ: HBAN) is placed seventh on our list of 15 best value stocks to invest in. The company’s shares have offered investors returns exceeding 49% over the course of the past year. The firm operates as a bank holding company. It is based in Ohio. On July 19, the firm announced that it would start offering a new service, named Early Pay, to customers that will be able to access paychecks and other benefits up to two days early at no additional cost.

On June 23, investment advisory Raymond James upgraded Huntington Bancshares Incorporated (NASDAQ: HBAN) stock to Strong Buy from Outperform with a price target of $18, stressing that the recent pullback in the share price was a buying opportunity.

At the end of the first quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $154 million in Huntington Bancshares Incorporated (NASDAQ: HBAN), down from 29 in the preceding quarter worth $886 million.

Apple Inc. (NASDAQ: AAPL), Bank of America Corporation (NYSE: BAC), Berkshire Hathaway Inc. (NYSE: BRK-A), and General Motors Company (NYSE: GM) are some of the best value stocks to invest in, alongside Huntington Bancshares Incorporated (NASDAQ: HBAN).

6. Barclays PLC (NYSE: BCS)

Number of Hedge Fund Holders: 10 PE Ratio: 11.37

Barclays PLC (NYSE: BCS) stock has offered investors returns exceeding 63% over the course of the past twelve months. It is ranked sixth on our list of 15 best value stocks to invest in. The firm is a financial services company based in the United Kingdom. The firm has a market cap of over $39 billion and posted more than $23 billion in revenue last year. It was founded in 1690 and is one of the oldest baking firms in the UK, offering services such as retail banking, credit cards, wholesale banking, investment banking, wealth management, among others.

On July 7, investment advisory UBS raised the price target on Barclays PLC (NYSE: BCS) stock to 210 GBP from 200 GBP, maintaining a Buy rating on the shares. Jason Napier, an analyst at the firm, issued the ratings update.

At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $797 million in Barclays PLC (NYSE: BCS), down from 12 the preceding quarter worth $629 million.

Click to continue reading and see 5 Best Value Stocks to Invest In.

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Disclose. None. 15 Best Value Stocks to Invest In is originally published on Insider Monkey.

(Bloomberg) — The world’s biggest mining companies are about to start revealing how much cash they’re churning out from this year’s commodity boom. Look out for record profits followed by eye-watering dividend payouts.

The top-five western diversified miners may have earned a combined $85 billion for the first half of the year, according to analyst estimates, more than double the level from a year ago. Rio Tinto Group, the first to report on Wednesday, is expected to announce $22 billion of profit for the six months, on a par with its total for all of 2020.

The mining sector 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 steel, iron ore and aluminum, driving prices sharply higher and sending inflation pressures rippling through the global economy.

Read more: Record Metals Prices Catapult Mining Profits Beyond Big Oil

And while previous rallies lured the industry into ambitious investment plans to build and expand mines, many producers this time appear content to return their profit windfalls to investors. The two biggest — Rio and larger rival BHP Group — have already been funneling record returns to shareholders.

Each of the group of five majors — which also includes Glencore Plc, Anglo American Plc and Vale SA — are expected to report their biggest-ever earnings for the six months through June, according to average analyst estimates compiled by Bloomberg. Rio could pay out 60% of its underlying earnings, according to some analyst estimates.

“This should be a pretty much stellar set of results all round,” said Ben Davis, an analyst at Liberum Capital. “We’re expecting record dividends from BHP and Rio, while Anglo and Glencore also have the potential to surprise.”

Iron ore has been a big driver of profit for the largest producers. The world’s biggest commodity after oil hit a record in the first-half, and has spent the last three months hovering around $200 a ton, a level not seen in a decade. Steel and copper prices both set fresh records this year, thermal coal has also soared, and even diamonds have had a resurgence.

Some prices have retreated recently amid concerns about rising Covid-19 cases and as China moves to curb rising costs. Yet commodity prices across the board remain historically high for now.

U.S. copper miner Freeport-McMoRan Inc. gave a hint of what to expect when it reported last week. The company has wiped out $5 billion of debt in the last 12 months, hitting its target months ahead of schedule, and setting the stage for an increase in shareholder returns.

For the iron ore miners such as Vale, BHP and Rio, it promises to be even better. Demand for the steelmaking ingredient, especially from China, is rampant and supply is constrained. China, which accounts for about half of global steel production, is making a record amount of the metal, while iron ore supply has never recovered from two dam disasters in Brazil.

Of course, the mining companies are not immune to inflation themselves — iron ore operations in Australia are grappling with a sharp rise in labor costs due to worker shortages. And governments in resource-rich countries, especially in Latin America, are also looking at the industry as a source of extra revenue after the commodities rally.

For now though, the miners are cashing in.

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(Reuters) -Canadian union Unifor said on Sunday about 900 workers had started strike action at global miner Rio Tinto's operations in the western Canadian province of British Columbia.

Unifor issued a 72-hour strike notice on Wednesday after nearly seven weeks of unproductive talks over proposed changes to workers' retirement benefits and unresolved grievances.

In an emailed statement to Reuters, a spokesperson for the miner said that the union refused the company’s proposal to request the intervention of a mediator.

"Rio Tinto has made every effort to reach a mutually beneficial agreement through negotiating with Unifor over the past seven weeks, and will continue to do so," the company said in the statement.

The union represents about 900 workers at the miner's aluminium smelting plant in Kitimat and power generating facility in Kemano.

"Rio Tinto was given every opportunity to reach a fair deal but showed complete disregard for our issues," the union said in a statement.

Unifor said it was committed to resolving the labour dispute amicably and urged the company's management to reach a fair settlement.

The company said that required staff and employees are now taking on operational duties to ensure the smelter and powerhouse continue to function safely. Rio had earlier sought an order from the province's labour relations board declaring power plant workers essential, according to a union bulletin.

(Reporting by Rithika Krishna in Bengaluru and Jeff Lewis in Toronto; Additional reporting by Radhika Anilkumar and Vishal Vivek in BengaluruEditing by Mark Potter and Grant McCool)

(Adds statement from Rio Tinto)

July 25 (Reuters) – Canadian union Unifor said on Sunday about 900 workers had started strike action at global miner Rio Tinto's operations in the western Canadian province of British Columbia.

Unifor issued a 72-hour strike notice on Wednesday after nearly seven weeks of unproductive talks over proposed changes to workers' retirement benefits and unresolved grievances.

In an emailed statement to Reuters, a spokesperson for the miner said that the union refused the company’s proposal to request the intervention of a mediator.

"Rio Tinto has made every effort to reach a mutually beneficial agreement through negotiating with Unifor over the past seven weeks, and will continue to do so," the company said in the statement.

The union represents about 900 workers at the miner's aluminium smelting plant in Kitimat and power generating facility in Kemano.

"Rio Tinto was given every opportunity to reach a fair deal but showed complete disregard for our issues," the union said in a statement.

Unifor said it was committed to resolving the labour dispute amicably and urged the company's management to reach a fair settlement.

The company said that required staff and employees are now taking on operational duties to ensure the smelter and powerhouse continue to function safely.

Rio had earlier sought an order from the province's labour relations board declaring power plant workers essential, according to a union bulletin. (Reporting by Rithika Krishna in Bengaluru and Jeff Lewis in Toronto; Additional reporting by Radhika Anilkumar and Vishal Vivek in Bengaluru Editing by Mark Potter and Grant McCool)

(Bloomberg) — South African stocks advanced for a fourth consecutive session, the longest winning streak since June 2, joining gains in global peers amid earnings optimism that helped Wall Street edge toward an all-time high despite mixed economic data. Telkom SA SOC Ltd. dragged on the market on news its chief executive officer will step down.

The FTSE/JSE Africa All Share Index was up 0.7% by 9:35 a.m. in Johannesburg, trading at its highest level in more than a week, as a broad rally led by miners and banks countered losses in index giant Naspers Ltd. as well as telecommunications providers.

Friday’s gains set the index on track for a fifth consecutive weekly advance, the longest winning streak since May 2020. The index is 2% higher since Monday, its best weekly performance since May 7.

“Local equities in are positive territory, having taken their lead from stronger global markets, which have risen on the back of corporate earnings, among other factors,” said Lester Davids, a strategist at Unum Capital. “Stock leadership appears to be broad-based with Sasol, MTN and Anglo American among the biggest gainers so far in the session.”

The gains come after the South African Reserve Bank left interest rates unchanged at 3.5% and signaled a more dovish policy path.

South Africa Turns Less Hawkish on Key Rate After Riots

“Our house view is dovish; SARB to begin hiking rates in mid-2022,” Matete Thulare, an analyst at Rand Merchant Bank, said in a client note.

Global stocks are on course for a modest weekly gain, bolstered by robust corporate profits and stimulus support. At the same time, July’s decline in 10-year U.S. Treasury yields may signal concern over a possible peak in economic growth, in part as the delta coronavirus strain curbs mobility in some nations.

Anglo American Plc and BHP Group Plc led the index for industrial miners up 1.1%, providing the biggest boost to the index.Anglo American +1.5%, BHP +0.9%, Glencore Plc +1%, African Rainbow Minerals Ltd. +1%Luxury goods retailer and popular rand hedge Richemont advanced 0.7% as the South African currency slides.Precious-metals miners rise for a fourth day, up 1% to a one-week high as gold and palladium prices advanced.NOTE: Gold Steadies on ECB’s Support Pledge, Mixed U.S. Economic DataImpala Platinum Holdings Ltd. +1.3%, Sibanye Stillwater Ltd. +0.9%, AngloGold Ltd. +0.8%, Gold Fields Ltd. +0.7%, Northam Platinum Ltd. +1%, Harmony Gold Mining Co. +1%, Anglo American Platinum Ltd. +0.3%, Royal Bafokeng Platinum Ltd. +1%, Pan African Resources Plc +0.9%Bank stocks extends gains for a fourth day, the longest winning streak since June 2. the sub-index is up 1% as market cheers decision to keep benchmark rate unchanged.FirstRand Ltd. +0.7%, Standard Bank Group Ltd. +0.9%, Absa Group Ltd. +1.5%, Capitec Bank Holdings Ltd. +1.1%, Nedbank Group Ltd. +1.4%, Investec Plc +1.7%Naspers, with a 15% weighting on the index, falls for the first day in three, down 0.4% to provide the biggest drag to the index. Weakness comes as partly owned online gaming giant Tencent Holdings Ltd. retreats in Hong Kong. Naspers holds a 29% stake in Tencent through its subsidiary Prosus NV, which retreated 0.3%NOTE: China’s Tech Crackdown Is Buying Opportunity, Loop Capital SaysTelkom drops 3.1%, dragging the index for telecommunication providers lower, after CEO Sipho Maseko says he is stepping down after more than eight years at the helm of South Africa’s biggest fixed-line operator.NOTE: Telkom CEO Sipho Maseko to Leave Top JobBlue Label Telecoms Ltd. -1.7%Peers MTN Group +1.8%, MultiChoice Group +0.7%, Vodacom Group Ltd. +0.1%Foreign investors remained net sellers of South African stocks for a fourth day Thursday, disposing of 962 million rand ($65 million) of equities, according to data from exchange operator JSE Ltd.

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©2021 Bloomberg L.P.

TORONTO, July 23 (Reuters) – BHP Group has reached conditional agreement with a unit of Westshore Terminals Investment Corp for port services for the global miner's proposed Jansen potash mine in Canada, the terminal operator said late on Thursday, moving the project closer to fruition.

The port agreement is subject to approval by BHP's board and conditional on it moving ahead with Jansen's first phase, Westshore said in a release.

The world's biggest listed miner has estimated Jansen would cost up to $5.7 billion in its first phases.

The project in Canada's Saskatchewan province offers diversification into agricultural markets given that potash is a key element in plant nutrition that also makes crops more drought resistant.

Last month BHP said it would present its board with a decision on whether to move ahead with Jansen after choosing between two port options.

"If the Jansen project does proceed, the agreement requires Westshore to handle potash for BHP for a term to 2051, subject to extension," Westshore said.

Under the agreement, Vancouver-based Westshore would construct infrastructure to handle potash at Westshore’s Roberts Bank Terminal by 2026, with BHP funding the construction.

The pact would become binding on BHP if it announces a final decision to proceed with Jansen's first stage, Westshore said.

(Reporting by Jeff Lewis; editing by Jason Neely)

For Immediate Release

Chicago, IL – July 23, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BHP Group BHP, Booking Holdings Inc. BKNG, CVS Health Corporation CVS, Chipotle Mexican Grill, Inc. CMG and Exelon Corporation EXC.

Here are highlights from Thursday’s Analyst Blog:

Q2 Earnings Scorecard and Research Reports for BHP, Booking.com and CVS

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including BHP Group, Booking Holdings, and CVS Health. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today's research reports here >>>       

Q2 Earnings Season Scorecard

Including all of this morning's releases, we now have Q2 results from 103 S&P 500 members or 20.% of the index's total membership. Total earnings for these 103 index members are up +117.6% on +18.9% higher revenues, with 90.3% beating EPS estimates and a record 85.4% beating revenue estimates.

This is a notably improved performance from these 103 index members relative to what we have seen from the same group of companies in other recent periods, with the revenue outperformance notably standing out. Looking at Q2 as a whole, combining the actual results that have come out with estimates for the still to come companies, total S&P 500 earnings are currently expected to be up +72.7% on +19.8% higher revenues.

For a detailed look at the Q2 earnings season and expectations for the coming periods, please check out our weekly Earnings Trends report >>>> All Around Earnings Strength

Today's Featured Research Reports

Shares of BHP have outperformed the Zacks Mining – Miscellaneous industry over the past year (+49.4% vs. +33.6%). The Zacks analyst believes that the company will continue to benefit from the rally in iron ore prices aided by strong demand in China. Improved industrial activity has led to a rally in copper prices, which is a positive for the company.

BHP's efforts to make operations more efficient through the employment of smart technology will lead to a reduction in costs, thereby boosting margins. During fiscal 2021, the company achieved first production at four major development projects. It is currently involved in two major petroleum and potash projects, both of which are under development.

(You can read the full research report on BHP here >>>)

Booking Holdings shares have gained +7.9% over the last six months against the Zacks Internet Commerce industry's loss of -21.4%. The Zacks analyst believes that steadily improving bookings, on the back of the re-opening of economy, have been benefiting the company.

The company remains optimistic about its highly variable cost structure and strong liquidity position, which it expects will help in navigating through the current crisis. Disruptions in the travel industry due to the pandemic and sluggishness in the agency business are major headwinds for the company.

(You can read the full research report on Booking Holdings here >>>)

Shares of CVS Health have gained +21.9% in the year to date period against the Zacks Retail Pharmacies and Drug Stores industry's gain of +21.2%. The Zacks analyst is encouraged by the increasing demand for PBM and specialty pharmacy along with significant growth observed in the retail business.

The company's consumer-centric digital strategy has become more relevant in the current environment as people are using technology more while staying indoors. A weak cough, cold and flu season, however, impacted growth within both Pharmacy Services and Retail/LTC in the first quarter. The repeal of the HIF for 2021 also hampered growth for the Health Care Benefits unit.

(You can read the full research report on CVS Health here >>>)

Other noteworthy reports we are featuring today include Chipotle Mexican Grill and Exelon.

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

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TORONTO (Reuters) -BHP Group has reached conditional agreement with a unit of Westshore Terminals Investment Corp for port services for the global miner's proposed Jansen potash mine in Canada, the terminal operator said late on Thursday, moving the project closer to fruition.

The port agreement is subject to approval by BHP's board and conditional on it moving ahead with Jansen's first phase, Westshore said in a release.

The world's biggest listed miner has estimated Jansen would cost up to $5.7 billion in its first phases.

The project in Canada's Saskatchewan province offers diversification into agricultural markets given that potash is a key element in plant nutrition that also makes crops more drought resistant.

"BHP confirms that Westshore Terminals Limited Partnership … has signed an agreement to provide port services for the Jansen potash project in Saskatchewan," BHP said in a statement to Reuters.

Last month BHP said it would present its board with a decision on whether to move ahead with Jansen after choosing between two port options.

"If the Jansen project does proceed, the agreement requires Westshore to handle potash for BHP for a term to 2051, subject to extension," Westshore said.

Under the agreement, Vancouver-based Westshore would construct infrastructure to handle potash at Westshore’s Roberts Bank Terminal by 2026, with BHP funding the construction.

The pact would become binding on BHP if it announces a final decision to proceed with Jansen's first stage, Westshore said.

Westshore's Toronto-listed shares climbed as much as 38% Friday.

(Reporting by Jeff Lewis; editing by Jason Neely, Kirsten Donovan)

London stocks were set to scrape out a gain out for the week, helped by miners and Vodafone, as investors sifted through a mixed set of economic data on Friday. “While there are questions around high-street retail demand despite government steps to reopen the economy, the saving grace appears to have come from football fans who drove up alcohol and food sales for the euro 2020 tournament,” said Joshua Mahony, senior market analyst at IG, in a note to clients. “July saw the U.K. economy’s recent growth spurt stifled by the rising wave of virus infections, which subdued customer demand, disrupted supply chains and caused widespread staff shortages, and cast a darkening shadow over the outlook,” said Chris Williamson, chief business economist at IHS Markit, in a press release.

(Adds BHP statement, Westshore shares)

TORONTO, July 23 (Reuters) – BHP Group has reached conditional agreement with a unit of Westshore Terminals Investment Corp for port services for the global miner's proposed Jansen potash mine in Canada, the terminal operator said late on Thursday, moving the project closer to fruition.

The port agreement is subject to approval by BHP's board and conditional on it moving ahead with Jansen's first phase, Westshore said in a release.

The world's biggest listed miner has estimated Jansen would cost up to $5.7 billion in its first phases.

The project in Canada's Saskatchewan province offers diversification into agricultural markets given that potash is a key element in plant nutrition that also makes crops more drought resistant.

"BHP confirms that Westshore Terminals Limited Partnership … has signed an agreement to provide port services for the Jansen potash project in Saskatchewan," BHP said in a statement to Reuters.

Last month BHP said it would present its board with a decision on whether to move ahead with Jansen after choosing between two port options.

"If the Jansen project does proceed, the agreement requires Westshore to handle potash for BHP for a term to 2051, subject to extension," Westshore said.

Under the agreement, Vancouver-based Westshore would construct infrastructure to handle potash at Westshore’s Roberts Bank Terminal by 2026, with BHP funding the construction.

The pact would become binding on BHP if it announces a final decision to proceed with Jansen's first stage, Westshore said.

Westshore's Toronto-listed shares climbed as much as 38% Friday.

(Reporting by Jeff Lewis; editing by Jason Neely, Kirsten Donovan)

Despite a major oil price crash on Monday, oil prices are now on course to close out the week more or less unchanged.

Friday, July 23rd, 2021

The news of OPEC+ bringing back withheld production in August 2021, following through with 400kbpd monthly increments over the remainder of this year, triggered a spectacular tumble in oil prices earlier this week. Despite pandemic-related risks surging in Southeast Asia and U.S. crude inventories rising for the first time since May, the second half of the week saw a surprising rebound as the market has grown to realize that additional OPEC+ supply would be offset by recovering global demand.

Venezuela Buys Diluents Again. The VLCC Rene discharged a cargo of condensate in Venezuela’s main export terminal of José, previously used by PDVSA to dilute extra-heavy Orinoco barrels to create transportable and refinable blends. The origin of the cargo is unknown, the supertanker’s last port of call was in Sri Lanka.

Iberdrola Might Spin-Off Wind Business. The Spanish wind energy giant Iberdrola (BME:IBE) is considering a spin-off of its wind business to raise funds, it said when presenting H1 2021 results this week. Beyond its traditional markets in Europe, Iberdrola has been increasing its presence in the Asia Pacific region, going after new markets like Vietnam, Korea, or Vietnam.

Germany-US Agree on Nord Stream-2 Deal. The White House will scrap sanctions targeting the nearly completed Nord Stream 2 gas pipeline that would bring Russian gas into Germany, in return for Berlin’s pledge to ensure Gazprom (MCX:GAZP) does not fully cut off transit via Ukraine.

Coal Prices Surge to Highest Level in More than Decade. Decreasing Chinese domestic production, unrest in South Africa, and weak hydro generation across the continent have pushed Asian coal prices to their highest level in 13 years, with Newcastle thermal coal FOB prices flirting with the $150 per metric ton threshold, double of what it was in early May.

Tesla Patents New Lithium Extraction Method. Tesla Motors (NASDAQ:TSLA) has filed a patent on a new lithium extraction method from ore using sodium chloride, a more environmentally friendly way of getting lithium, avoiding the usage of acid leaching. According to Tesla officials, the new method might lead to a 33% reduction in lithium cost.

India Seeks to Commercialize Crude Stocks. India has decided to commercialize half of its strategic reserves to encourage private participation in its SPR – companies would have the option to re-export 1.5 million tons of crude stored at SPR sites if Indian companies refuse to buy it. ADNOC remains the only oil major to commit to SPR participation in India.

TAP Fails the Expansion Test. The 10 BCm per year TAP pipeline that brings Azeri gas to Turkey and Europe failed to trigger any shipping interest as no binding bids were submitted for potential capacity bookings, stoking concerns that the European case for further gas conduits was overblown.

Iran Inaugurates Jask Terminal. Iranian officials claimed the new crude export terminal at Jask began operations on Thursday, even though no vessel-tracking data was able to spot a ship alongside the jetties. The 300kbpd capacity Jask will supplement Iran’s main export port at Kharg Island.

Related: U.S. Shale Sees Light At The End Of The Tunnel

US Natgas Futures Highest Level in Almost 3 Years. US natural gas futures rose to their highest level since December 2018 on the heels of warmer-than-expected weather and higher air conditioning power demand, writes Reuters. The front-month NYMEX Henry Hub futures for August surpassed the $4 per mmBtu mark, rising more than 55% this year to date.

Saudi Aramco Data Stolen. Saudi Arabia’s national oil company Saudi Aramco (TADAWUL:2222) confirmed media reports that there has been a data leak of company data (reported to amount to 1 terabyte) yet declined to comment whether the data had been used in a cyber-extortion attempt. Media reports indicate the ransom was set at $50 million.

India Considering Obligatory Green Hydrogen. India’s government is considering the introduction of obligatory green hydrogen use in certain industries, with the oil, steel, and chemical industry listed as prime candidates to fall under the effect of such measures. No details were provided on the assumed deadlines.

BHP Seeking an Oil Exit. Australia’s BHP Group (NYSE:BHP) is mulling a complete exit from the oil business, with its assets estimated at $15 billion or more, seeking to focus on its giant iron ore and copper businesses instead. Media reports suggest that Woodside Petroleum would be the prime candidate to pick up BHP’s oil and gas portfolio.

Barents Sea Prospects Cooling. In another blow to Norway’s strategic quest to tap into the Barents Sea’s assumed hydrocarbon bounty, Aker BP (AKRBP.OL) made only a minor discovery with its wildcat in licensing block PL858, sapping hopes that the Arctic shelf could maintain the European country’s production profile.

France Softens Narrative on China Nuclear Woes. The French EDF (EPA:EDF) suggested it would shut down the Taishan nuclear reactor if similar rod fuel sealing issues were to happen in France. Taishan, the first EPR-type reactor to become operational, has been reporting build-ups on inert gases, compelling nuclear watchdogs to monitor levels of radiation.

Rwanda Seeks Its Place Under the Sun. Rwandan authorities have reportedly allocated funds to start a 2D seismic survey around Lake Kivu, in the hope of finding hydrocarbons reserves similar to the ones TotalEnergies (EPA:TTE) is developing at Lake Albert in Uganda, soon to be a new 200kbpd producing hub in East Africa.

By Tom Kool for Oilprice.com

More Top Reads From Oilprice.com:

• The World Will Run Out Of EV Batteries By 2025
  

• The Renewable Energy Waste Crisis Is Much Worse Than You Think

• Clash Of the Energy Titans: Oil vs. Solar

Read this article on OilPrice.com

The performance at EROAD Limited (NZSE:ERD) has been quite strong recently and CEO Steven Newman has played a role in it. Coming up to the next AGM on 30 July 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for EROAD

Comparing EROAD Limited's CEO Compensation With the industry

According to our data, EROAD Limited has a market capitalization of NZ$544m, and paid its CEO total annual compensation worth NZ$737k over the year to March 2021. We note that's a decrease of 29% compared to last year. We note that the salary portion, which stands at NZ$603.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between NZ$287m and NZ$1.1b, we discovered that the median CEO total compensation of that group was NZ$678k. So it looks like EROAD compensates Steven Newman in line with the median for the industry. Moreover, Steven Newman also holds NZ$847k worth of EROAD stock directly under their own name.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. EROAD pays out 82% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at EROAD Limited's Growth Numbers

Over the past three years, EROAD Limited has seen its earnings per share (EPS) grow by 98% per year. In the last year, its revenue is up 13%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has EROAD Limited Been A Good Investment?

Most shareholders would probably be pleased with EROAD Limited for providing a total return of 103% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for EROAD that you should be aware of before investing.

Switching gears from EROAD, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Almost the first words in Rio Tinto’s 2020 annual report, published in February, were these from its chairman, Simon Thompson: “Our strong performance in many areas during 2020 was overshadowed by the destruction of two ancient rock shelters in the Juukan Gorge [in Australia].

“I reiterate our unreserved apology to the Puutu Kunti Kurrama and Pinikura people for the destruction. We are committed to learning the lessons from Juukan Gorge to ensure that the destruction of a site of such exceptional cultural significance never happens again.”

Rio has offered more than words: it has scrapped plans to mine at several culturally sensitive sites and replaced its previous chief executive, Jean-Sébastien Jacques, with Jakob Stausholm, whose “collaborative leadership style, strong values and personal commitment to the role of business in promoting sustainability made him the ideal choice to lead us”.

Rio’s board has engaged with groups that represent Australia’s indigenous people, including a visit to Juukan Gorge by Thompson in the company of indigenous elders. It has also appointed an indigenous community leader to consult with traditional owners of the lands on which it mines on the formation of an indigenous group to advise the board and senior managers.

It’s fair to say then that the FTSE 100 company’s response to the Juukan Gorge public relations disaster (which was far from its first) went beyond paying lip service to the need for change. In an era of unprecedented investor attention to environmental, social and governance issues, however, Rio could hardly have done less.

Miners need periodic access to capital, and the pool of investors inclined to hand it to them was fast dwindling anyway. Juukan Gorge will hardly have helped.

Let’s turn to the other aspect of the chairman’s statement: Rio Tinto’s “strong performance” in 2020.

It was no exaggeration. It made pre-tax profits of $15.4bn (£11.2bn) and cut its debts to a negligible $664m. The dividend was raised by 26pc to $5.57, which included a 93 cent special.

Why did it have such a good year? Thanks to the price of iron ore. Rio likes to present itself as a diversified miner but iron ore dominates its operations and its profit and loss account. In 2020 the ore generated $18.8bn in profits on the “underlying Ebitda” measure, while aluminium managed just $2.2bn and copper and diamonds between them the same figure. Energy and minerals accounted for $1.6bn.

As those profits suggest, this is a great time to be digging up iron ore. Its price rose by almost 85pc last year and the reason is not hard to find: China accounts for a huge percentage of the world’s steel production and its consumption of the alloy grew by 9pc last year.

“Iron ore is at a fantastic price for the miners – it is dream time for them,” the manager of a natural resources fund told Questor. He said it was “boom time” in Western Australia – “all the mines are flat out, there is no labour availability, labour cost inflation is horrific”.

Despite this, Rio’s shares don’t look expensive. They have risen along with the iron ore price but yield a tempting 6.9pc if we include the special dividend. The free cash flow yield is in double figures.

Why? “The iron ore price is very high but the market doesn’t think this will continue. It’s literally as simple as that,” another resources investor said. “China accounts for the vast majority of demand and the Chinese are stimulating that side of their economy. No one knows when it will end – it’s a punt.”

Put another way, Rio’s share price ultimately depends on how many roads, airports and bridges the Chinese politburo decides to build. As if this were not already hard enough to predict, those decisions in turn depend on whether the Communist Party favours pursuing economic growth by promoting exports and infrastructure spending, the traditional route, or by encouraging consumer consumption. It has swung between the two in the past and may easily do so again.

Why would you tie your investment returns to the decisions of politicians in a country on the other side of the world, especially when you have little insight into how those decisions are made? Buying shares in Rio Tinto is a gamble pure and simple. Avoid.

Questor says: avoid

Ticker: RIO

Share price at close: £59.26

Read the latest Questor column on telegraph.co.uk every Sunday, Tuesday, Wednesday, Thursday and Friday from 5am.

Read Questor’s rules of investment before you follow our tips.

BRENTWOOD, United Kingdom, July 23, 2021 (GLOBE NEWSWIRE) — RAB Capital Holdings Limited (“RAB Capital”), a private investment holding corporation owned by Mr. William Philip Richards, reports that, on July 21, 2021, it purchased 1,500,000 common shares of Black Iron Inc. (BKI:TSX) (“Black Iron”) pursuant to a short form prospectus offering, at a price of $0.40 per share for aggregate consideration of $600,000.

RAB Capital now beneficially owns and controls 38,300,000 Black Iron shares (representing approximately 12.68% of the outstanding Shares on a non-diluted and partially-diluted basis). Prior to this investment acquisition transaction RAB Capital beneficially owned 36,800,000 common shares of Black Iron representing approximately 13.5% of the outstanding Shares on a non-diluted and partially-diluted basis.

The Black Iron shares were acquired by RAB Capital for investment purposes. RAB Capital has a long-term view of the investment and may acquire additional securities of Black Iron, including on the open market or through private acquisitions, or sell securities of Black Iron, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.

RAB Capital is a private company that invests in a wide range of assets based on fundamental analysis. RAB Capital currently targets investments in small companies, both listed and private, and real estate development opportunities.

A copy of the early warning report with respect to the foregoing will appear on Black Iron’s profile on SEDAR at www.sedar.com and may also be obtained by contacting RAB Capital at + 44 (0) 20 7389 7000 (PO Box 12996, Brentwood, United Kingdom CM14 9TB)

RAB Capital Holdings Limited

“Andrew Knatchbull”

Andrew Knatchbull
Finance Director
T: +44 2073897161
E: andrew.knatchbull@rabcap.com

PITTSBURGH, July 23, 2021–(BUSINESS WIRE)–United States Steel Corporation (NYSE: X) ("U. S. Steel" or "company") today announced changes to two asset-based credit facilities that reward performance for meeting sustainability targets. This is part of the ongoing execution of the company’s Best for All℠ strategy of creating profitable solutions for sustainable steelmaking.

At the company’s request, its $2 billion asset-based revolving credit facility (the "ABL") has been amended to include an increase or decrease in the margin payable based on achievement of targets related to carbon reduction, safety performance and facility certification by ResponsibleSteel™. When U. S. Steel joined the global not-for-profit organization in April, it became the first North American steelmaker to gain membership in ResponsibleSteel, which provides a process and certification framework for sustainable steel use throughout its lifecycle. In addition to the new sustainability link, the ABL has also been amended to reduce the credit line to $1.75 billion from $2 billion, which supports the company’s current footprint and is consistent with the company’s efforts to optimize its global liquidity position.

Additionally, the company’s subsidiary, Big River Steel, extended its $350 million ABL by five years to 2026 and included the same sustainability performance targets.

"These loan amendments align U. S. Steel’s financial incentives with our sustainability performance commitments," U. S. Steel President and Chief Executive Officer David B. Burritt said. "Under U. S. Steel’s Best for All strategy, sustainability and profitability are both necessary to achieving our goal of net-zero carbon emissions by 2050. That path is one where U. S. Steel’s innovation and creativity are coming together to meet the defining challenges of this era."

U. S. Steel in April announced its 2050 net-zero target, part of a transformational commitment to sustainable and profitable steelmaking. U. S. Steel expects to leverage its growing fleet of electric arc furnaces coupled with other technologies such as direct reduced iron, carbon-free energy sources, and carbon capture, sequestration, and utilization. Achieving the goal depends on public-private collaboration across industries and global stakeholders to develop breakthroughs, including access to commercially available carbon-neutral electricity sources.

J.P. Morgan Securities LLC and ING Capital LLC acted as Joint Sustainability Structuring Agents in the U. S. Steel Sustainability-linked ABL. Goldman Sachs Bank NA and ING Capital LLC acted as Joint Sustainability Structuring Agents in the BRS Sustainability-linked ABL.

Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the company’s customer-centric Best for All℠ strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3™ advanced high-strength steel. The company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 26.2 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210723005482/en/

Contacts

John O. Ambler
Vice President
Corporate Communications
T – (412) 433-2407
E – joambler@uss.com

Kevin Lewis
Vice President
Investor Relations
T – (412) 433-6935
E – klewis@uss.com

Vale S.A VALE is scheduled to report second-quarter 2021 results on Jul 28, after the market close.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter total sales is pegged at $16.7 billion, indicating growth of 123% from the year-ago quarter. The consensus mark for earnings currently stands at $1.47, suggesting a whopping improvement of 568% from the prior-year quarter. The estimate has gone up 7% over the past 30 days.

Q1 Results

Vale’s first-quarter earnings and revenues were higher than the year-ago quarter and also beat the respective Zacks Consensus Estimate. This can primarily be attributed to record performance of Ferrous Minerals business, aided by higher iron ore prices. The company has surpassed earnings estimates in three of the trailing four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.08%, on average.

VALE S.A. Price and EPS Surprise

VALE S.A. price-eps-surprise | VALE S.A. Quote

Factors to Note

Vale recently provided second-quarter-2021 production update, which offers a sneak peek as to how the company is likely to fare in the to-be-reported quarter. Iron ore production for second-quarter 2021 was 75.7 million tons (Mt), 12% higher than the year-ago quarter. It marked an 11% sequential increase aided by higher volumes from Brucutu, improvement of weather-related conditions in Serra Norte and a strong performance in Serra Leste. Increased productivity in Itabira Complex, higher third-party purchase and wet processing production in Fábrica during the tests to resume beneficiation plant operations contributed to the improvement as well. These gains were partially offset by the interferences caused by the installation and commissioning of the first of four jaspilite crushers in S11D. The company’s pellet production was up 13% year over year to 8 Mt in the quarter. Sales volume of iron ore fines and pellets was up 22% to 74.9 Mt in the quarter under review.

Iron ore prices have been rallying in the second quarter as demand has been outstripping supply. Demand for the primary steelmaking commodity has been increasing this year on strong demand from China as steel production has been gaining steam in the country. This combined with persistent concerns over a supply shortage fueled the rally in iron ore prices. Iron generates around 80% of Vale’s revenues. Thus, higher iron production and prices are likely to have contributed to Vale’s top-line performance in the quarter to be reported.

With regard to base metals, which collectively contribute around 16% to the company’s revenues, production of nickel declined 14% year over year owing to labor disruption at Sudbury and unscheduled maintenance in Clydach Nickel Refinery. Copper production was down 13% year over year to 73.5 kt due to labor disruption in Sudbury and delays in mining at Voisey’s Bay, partially mitigated by a more robust performance in Salobo on account of the ramp-up of mine maintenance activities and better performance at Sossego operations. Cobalt was up 34.2%, while coal production improved 63% from the prior-year quarter. Meanwhile, production of manganese ore came in 24.2%, lower than the prior-year quarter due to adjustments in the mining plan to ensure the safety and sustainability of underground operations at the Urucum mine. Gold production was down 15.8% year over year. Higher year-over-year metal prices might have somewhat negated the impact of lower production for most of these metals.

Vale has been focusing on maintaining its ‘”value over volume” approach for the iron ore business. The company remains committed to delivering the highest possible margins by managing extensive supply chain and flexible product portfolio. It has been focusing on controlling costs. These efforts might have favored the second-quarter performance.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Vale 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 beating estimates.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Vale is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

In a year’s time, shares of Vale have gained 34.3%, compared with the industry’s rally of 95.4%.

Image Source: Zacks Investment Research

Stocks to Consider

Here are some Basic Materials stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Westlake Chemical Corporation WLK has an Earnings ESP of +6.05% and a Zacks Rank #1, currently.

LyondellBasell Industries N.V. LYB has an Earnings ESP of +9.93% and a Zacks Rank of 1, currently.

Celanese Corporation CE has a Zacks Rank #2 and an Earnings ESP of +7.01%, at present.

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

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

Westlake Chemical Corporation (WLK) : Free Stock Analysis Report

Celanese Corporation (CE) : Free Stock Analysis Report

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

To read this article on Zacks.com click here.

Zacks Investment Research

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. Long term Mesabi Trust (NYSE:MSB) shareholders would be well aware of this, since the stock is up 225% in five years. It's down 4.5% in the last seven days.

See our latest analysis for Mesabi Trust

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, Mesabi Trust managed to grow its earnings per share at 33% a year. The EPS growth is more impressive than the yearly share price gain of 27% over the same period. So one could conclude that the broader market has become more cautious towards the stock.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Mesabi Trust the TSR over the last 5 years was 407%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Mesabi Trust has rewarded shareholders with a total shareholder return of 128% in the last twelve months. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 38% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Mesabi Trust better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Mesabi Trust you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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.

TORONTO (Reuters) – Canadian union Unifor said on Wednesday miner Rio Tinto has been served with a 72-hour strike notice after nearly seven weeks of unproductive negotiations over proposed changes to workers' retirement income and benefit levels.

The union said it is seeking better retirement security for younger workers by moving newer employees from the company's Defined Contribution plan to a Defined Benefit plan.

"Rio Tinto is committed to working with the union to reach a mutually beneficial outcome to the ongoing bargaining process," a Rio spokesperson told Reuters.

Negotiations are also focused on a backlog of more than 300 grievances and the company's refusal to hire full-time workers leading to an overreliance on temporary employees, Unifor said.

Unifor says it represents about 900 workers at the company's aluminum smelting plant in Kitimat and power generating facility in Kemano.

(Reporting by Sabahatjahan Contractor in Bengaluru and Jeff Lewis in Toronto; Editing by Subhranshu Sahu)

(Adds Rio Tinto comment)

TORONTO, July 21 (Reuters) – Canadian union Unifor said on Wednesday miner Rio Tinto has been served with a 72-hour strike notice after nearly seven weeks of unproductive negotiations over proposed changes to workers' retirement income and benefit levels.

The union said it is seeking better retirement security for younger workers by moving newer employees from the company's Defined Contribution plan to a Defined Benefit plan.

"Rio Tinto is committed to working with the union to reach a mutually beneficial outcome to the ongoing bargaining process," a Rio spokesperson told Reuters.

Negotiations are also focused on a backlog of more than 300 grievances and the company's refusal to hire full-time workers leading to an overreliance on temporary employees, Unifor said.

Unifor says it represents about 900 workers at the company's aluminum smelting plant in Kitimat and power generating facility in Kemano. (Reporting by Sabahatjahan Contractor in Bengaluru and Jeff Lewis in Toronto; Editing by Subhranshu Sahu)

By Dhirendra Tripathi

Investing.com – BHP (NYSE:BHP) and Tesla (NASDAQ:TSLA) stocks were among the gainers in Thursday’s premarket trading following an agreement under which the miner will supply nickel to the electric vehicle maker.

BHP was up 1% and Tesla 0.4%.

Nickel is one of the key metals used to make batteries that run electric vehicles.

BHP will supply Tesla with nickel from its Nickel West asset in Western Australia that it claims is one of the most sustainable and lowest carbon emission nickel producers in the world.

The agreement is much broader than a mere supply agreement. The two companies will collaborate to make the entire battery supply chain more sustainable including working on storage solutions along with looking for more ways to deploy renewable energy, according to a joint statement.

According to BHP Chief Commercial Officer, Vandita Pant, demand for nickel in batteries is estimated to grow by over 500% over the next 10 years, in large part to support the world’s rising demand for electric vehicles.

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LONDON, July 22, 2021–(BUSINESS WIRE)–Rio Tinto has approved a $108 million investment in underground development to enable early orebody access and undertake orebody characterisation studies for underground mining at the Kennecott copper operations in the United States.

The investment builds on $25 million approved in early-2020 to complete a pre-feasibility study to determine the viability of underground mining operations at Kennecott. Potential underground mining would occur concurrently with open pit operations and result in increased copper output.

Kennecott holds the potential for a significant and attractive underground development, with declared Mineral Resources of 20 Mt at 3.65% copper and 1.62 g/t gold¹ with further upside potential based on drilling.

The feasibility study work will focus on gathering critical geological, geotechnical and hydrogeological data to inform Rio Tinto’s assessment of underground development options and is expected to be completed in 2024. Existing infrastructure from previous underground projects will be extended to access the North Rim Skarn orebody, allowing for the development of crosscuts and further drilling of the resource. The project includes approximately 15,000 feet (4,500 metres) of lateral development, 1,000 feet (300 metres) of vertical development and associated support infrastructure.

The project will also include the trial of underground battery electric vehicles to reduce carbon emissions at Kennecott and across Rio Tinto’s global operations. Sandvik Mining and Rock Solutions will supply a battery electric haul truck and loader to evaluate performance and suitability for future underground mining fleets.

Pre-feasibility studies are also being progressed to extend open pit mining at Kennecott beyond 2032, with a further push back of the North Wall to allow access to Mineral Resources. This follows a $1.5 billion investment in the second phase of the South Wall Pushback project, approved in 2019, to allow open cut mining to continue between 2026 and 2032.

Rio Tinto Copper Chief Executive Bold Baatar said: "Kennecott holds a range of options to extend our supply of copper and other critical materials, to meet the strong demand being driven by electric vehicles and renewable power technologies.

"The operation is uniquely positioned to supply these emerging markets, with one of only two operating smelters in the United States that also processes concentrates from third parties, a long history delivering high quality products and significant resources that are yet to be developed."

¹ This underground Mineral Resource estimate (North Rim Skarn) was included in Rio Tinto’s 2020 Annual Report released to the ASX on 22 February 2021 which is available at https://www.riotinto.com/invest/reports/annual-report. The Competent Person responsible for this Mineral Resource estimate was Ryan Hayes (AusIMM). Rio Tinto is not aware of any new information or data that materially affects this Mineral Resource estimate and confirms that all material assumptions and technical parameters underpinning this Mineral Resource estimate continue to apply and have not materially changed. The form and context in which the Competent Person’s findings are presented have not been materially modified from the 2020 Annual Report.

Notes to Editors

Kennecott operates an advanced copper and precious metals smelter, processing concentrate from Kennecott and third parties.

In addition to copper, Kennecott is one of the largest producers of gold, silver, and molybdenum in North America. Construction is underway on a plant to recover tellurium, a critical mineral used in solar panels, from copper refining at Kennecott. Rio Tinto is working with experts from the US Department of Energy’s Critical Materials Institute (CMI) on ways to extract further critical minerals from the existing refining and smelting processes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005163/en/

Contacts

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

Media Relations, UK
Illtud Harri
M +44 7920 503 600

David Outhwaite
M +44 7787 597 493

Media Relations, Americas
Matthew Klar
T +1 514 608 4429

Investor Relations, UK
Menno Sanderse
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David Ovington
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Media Relations, Australia
Jonathan Rose
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Matt Chambers
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Investor Relations, Australia
Natalie Worley
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Amar Jambaa
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Rio Tinto plc
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Category: Kennecott

Tesla TSLA recently inked a deal with BHP Group BHP to secure the supply of nickel from the latter’s Nickel West mine based in Western Australia.

Per the latest alliance, Tesla and BHP will also collaborate to make the battery supply chain more efficient and sustainable, with key focus on raw material procurement using blockchain and exchange of know-how for battery raw-material production. The companies will also identify supply-chain partners who are most aligned with their vision and battery value chains.

BHP will also join hands with Tesla on energy storage solutions to reduce carbon emissions through the enhanced use of sustainable energy, coupled with battery storage.

Headquartered in Melbourne, Australia, BHP is a leading resources company globally. The mining giant extracts and processes minerals, oil and gas and its products are sold worldwide. The company is a notable producer of major commodities, including iron ore, metallurgical coal, nickel and copper.

Shining Prospects of Nickel Market

Amid the heightening climate-change concerns, development of batteries used to power electric vehicles (EVs) has become crucial in order to decarbonize the global economy. This, in turn, has buoyed the demand of metals, particularly copper and nickel, used in the production of batteries.

Nickel, a core ingredient used in lithium-ion batteries, helps reduce the usage of cobalt, which is much more expensive and has an ambiguous supply chain. Amid the soaring popularity of EVs worldwide, demand for nickel in batteries is projected to jump more than 500% over the next decade. Within the shining future prospects of nickel, BHP claims to be one of the most sustainable and lowest carbon emission nickel producers in the world.

California-based Tesla is the undisputed leader of EVs and battery storage systems, with a vision to accelerate the global transition to green transportation solutions.

With the demand for nickel set to boom in the near future and due to challenges faced in procuring nickel, Tesla CEO Elon Musk has repeatedly expressed his concerns about the future supplies of nickel and has urged miners to increase the production of nickel.

In fact, in order to facilitate in-house production of batteries, Tesla has entered into a series of deals with mining companies for the commodities it needs to make batteries. This includes securing cobalt, another metal used in batteries, from the Swiss miner Glencore and supporting a nickel venture in New Caledonia.

The deal with BHP to procure nickel is in sync with Tesla’s vision of in-house production of batteries, and will boost the EV behemoth’s ability to self-manufacture batteries. The agreement is Tesla’s latest effort to shield itself from future supply crunch of metals needed in battery production. The agreement confirms Tesla will become one of the biggest customers of BHP for sustainable and reliable supply of quality nickel crucial to the EV maker’s growth plans.

BHP has been hinting a deal with Tesla since last year. For BHP, the deal marks a revival for the company’s Nickel West division. The company failed to sell the unit in 2014 and has since then diverted the division to cater to battery makers, rather than conventional customers like the stainless steel industry.

Though details on the deal amount have not been revealed by the companies, Tesla had earlier noted that it anticipates spending more than $1 billion annually on raw material for batteries from Australia.

Tesla — which shares space with auto biggies like General Motors GM and Ford F — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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