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On average, over time, stock markets tend to rise higher. This makes investing attractive. But if when you choose to buy stocks, some of them will be below average performers. Over the last year the Albertsons Companies, Inc. (NYSE:ACI) share price is up 30%, but that's less than the broader market return. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for Albertsons Companies

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Albertsons Companies was able to grow EPS by 87% in the last twelve months. This EPS growth is significantly higher than the 30% increase in the share price. So it seems like the market has cooled on Albertsons Companies, despite the growth. Interesting.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Albertsons Companies' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Albertsons Companies, it has a TSR of 32% for the last year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

We're happy to report that Albertsons Companies are up 32% over the year (even including dividends). The bad news is that's no better than the average market return, which was roughly 48%. The last three months haven't been so kind to Albertsons Companies, with the share price gaining just 2.9%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Albertsons Companies you should know about.

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

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.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Billiton (BBL). BBL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.73, which compares to its industry's average of 7.35. BBL's Forward P/E has been as high as 14.06 and as low as 6.45, with a median of 10.47, all within the past year.

Investors should also recognize that BBL has a P/B ratio of 1.16. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. BBL's current P/B looks attractive when compared to its industry's average P/B of 3.16. Within the past 52 weeks, BBL's P/B has been as high as 1.32 and as low as 0.78, with a median of 1.07.

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

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Vivek Sankaran was just 10 months into his tenure as president and CEO of Albertsons Companies when the pandemic hit. While other CEOs were trying to figure out how to shift their teams to remote work, Sankaran had to focus on developing systems to keep the company's grocery stores and supermarkets, located in 34 states and the District of Columbia, safe, stocked, and open.

Albertsons’ brands include grocery stores Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, and many others.

"We focused first on the safety of our people. I obsessed about it even before the CDC would come out with the recommendations," Sankaran says, adding that it took almost six weeks before the government issued some safety guidelines.

Sankaran joined Fortune’s Alan Murray and Ellen McGirt for Leadership Next, a podcast about the changing rules of business leadership.

"What we found is when people felt safe operating and working in our stores, they made our customers feel safe," he says.

And by focusing first on employee safety, Sankaran says the company could then move forward with a sense of purpose that included feeding the communities that they operate in.

This story was originally featured on Fortune.com

Brisbane, Queensland, Australia–(Newsfile Corp. – June 24, 2021) – Graphene Manufacturing Group Ltd. (TSXV: GMG) ("GMG" or the "Company") is pleased to announce that it will join the Future Battery Industries Cooperative Research Centre ("CRC") for Battery Electrolytes along with various organizations and universities. The CRC's objective is to develop advanced electrolyte systems that improve battery performance. The project will run over a period of 4 years with GMG providing a source of graphene and personnel time to the project.

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/8082/88531_graphene1enhanced.jpg

GMG's Chief Scientific Officer Dr Ashok Nanjundan said, "This is another exciting energy storage development project showcasing the potential uses of GMG's graphene for the further development of various existing battery technologies."

The CRC brings together almost 60 industry participants, including eight universities, the Commonwealth Scientific and Industrial Research Organization, and Federal and State Governments. A six-year research and development program will target all segments of the battery value chain to deliver commercially proprietary outcomes to accelerate industry expansion and grow a vibrant, emerging battery sector. With approximately A$130 million cash and in-kind contributions, the CRC is focused on Australia as a leader in battery industries that seeks to create a new generation of highly skilled workers equipped to deliver energy materials of the future.

About Future Battery Industries Cooperative Research Centre

The Future Battery Industries Cooperative Research Centre is enabling the growth of battery industries to power Australia's future. It brings together industry, researchers, governments, and the community to ensure Australia plays a leading role in the global battery revolution.

The CRC is critical in making Australia's industries more competitive by harnessing the research skills and industry expertise required to create new economic opportunities.

For further information: https://fbicrc.com.au/

About GMG

GMG is an Australian based clean-tech disruptive company listed on the TSXV (TSXV: GMG) that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite. By using the company's proprietary process, GMG can produce high quality, low cost, scalable, 'tuneable' and no/low contaminant graphene – enabling demonstrated cost and environmental improvements in a number of world-scale planet-friendly/clean-tech applications. Using this low input cost source of graphene, the Company is developing value-added products that target the massive energy efficiency and energy storage markets.

The Company is also pursuing additional opportunities for GMG Graphene, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance of lube oil, biodiesel and diesel fuels.

For further information, please contact:

– Craig Nicol, Chief Executive Officer and Managing Director of the Company at craig.nicol@graphenemg.com, +61 415 445 223

– Leo Karabelas at Focus Communications, info@fcir.ca , +1 647 689 6041

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

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, statements relating to: the deployment of the Company's resources, including its personnel; goals, outcomes and results of the activities of the CRC; and the intention of the Company to research, develop and produce certain products. Such forward-looking statements are based on a number of assumptions of management, including, without limitation, assumptions regarding the accuracy of the Company's cost and timing expectations, and the Company's continued participation with the CRC. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, including, but not limited to, the risk factors set out under the heading "Risk Factors" in the Company's final long form non-offering prospectus dated March 31, 2021 available for review on the Company's profile at www.sedar.com, many of which are beyond the ability of the Company to control or predict. Such risk factors may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, assumptions regarding the Company's ability to research, develop and test its products within anticipated timelines, and that results of testing and development data will be consistent with anticipated results and estimates. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/88531

By Jeff Lewis

TORONTO (Reuters) – BHP Group plans to almost double exploration spending for base metals within five years, its Chief Technical Officer Laura Tyler said on Wednesday, after shifting its exploration headquarters to Canada.

The world's biggest listed miner is expected to log bumper profits in August on booming prices for iron ore, but the pipeline for new projects is thin.

BHP's board is expected to make a call on its Jansen potash project in Canada as the miner looks to raise its exposure to new economy minerals including copper and nickel, seen as cornerstones of the world’s transition towards cleaner energy.

"Over the years we believe we have spent less than we should be spending on exploration," Tyler told Reuters in an interview.

Global exploration spending for base metals will nearly double within five years from the current annual $70 million to $80 million, she said, excluding outlays for early-entry joint ventures.

"So we are significantly increasing the amount we're spending just as our base load," she said.

BHP in March said it would move its head office for global exploration to Toronto from Santiago, Chile.

"That allows us almost to be closer to the action," she said.

The miner has partnered with junior Midland Exploration to explore for nickel in the Nunavik region of northern Quebec.

It also has a joint venture on copper concessions in Ecuador with Vancouver-based Luminex Resources Corp and holds a 12.3% stake in London-listed Solgold, whose Cascabel-Alpala copper-gold project in Ecuador is expected to start production in 2025.

(Reporting by Jeff Lewis; editing by Richard Pullin)

Copper Up

TORONTO, June 23, 2021 (GLOBE NEWSWIRE) — (TSXV: TVC) Three Valley Copper, formerly SRHI Inc. (“Three Valley” or the “Company”) is pleased to announce that it will participate in PI Financial’s “Copper Up” Virtual Conference on June 24^th. Michael Staresinic, CEO, will present at 1:20pm ET on Thursday, June 24^th during the session entitled “Focus on Navigating Geopolitical Risks in South America”. The conference will feature leading copper developers and explorers advancing projects in North and South America. Expect the conference to address typical political and technical risks facing today’s copper-focused developers/explorers, rather than your average investor pitch. Those wishing to participate in the conference can register here.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/261f0415-b43e-46d8-9046-29c6f6130005

About PI Financial

PI Financial Corp. (PI) is a leading, independent investment dealer which provides a full range of investment products and services for individual, corporate and institutional investors.

Founded in 1982, PI has become one of Canada’s largest independent dealers with over 300 employees from Toronto west to its headquarters in Vancouver, BC.

About Three Valley Copper

Three Valley Copper, headquartered in Toronto, Ontario, Canada is focused on growing copper production from, and further exploration of, its primary asset, Minera Tres Valles. Located in Salamanca, Chile, MTV is 90.3% owned by the Company and MTV's main assets are the Minera Tres Valles mining complex and its 46,000 hectares of exploratory lands. For more information about the Company, please visit www.threevalleycopper.com.

For further information:

Michael Staresinic
Chief Executive Officer
T: (416) 943-7107
E: mstaresinic@threevalleycopper.com

Renmark Financial Communications Inc.
Joshua Lavers: jlavers@renmarkfinancial.com
T: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

Source: Three Valley Copper.

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

The world is undergoing green energy revolution and the automobile industry is leaving no stone unturned to accelerate electric vehicle (EV) development, which is the driving force toward this clean energy revolution. As consumers get more environment conscious with each passing day, EV industry prospects are only expected to blossom in the coming years. While lithium seems to be the metal that is grabbing most eyeballs amid this e-mobility push, one should not underestimate the role of copper in sustainable energy-efficient transportation.

Copper’s Critical Role in EV Tech

The red metal is an essential component in EVs, and is used in electric motors, batteries, inverters and wiring. Also, the EV charging infrastructure is largely based on copper-based technologies. Copper is a key component of charging infrastructure and is found in cables, transformers and wiring to the electric panel.

Importantly, usage of copper in EVs is up to 4 times more than in the conventional cars. Per the Copper Development Association Inc., traditional cars have 18-49 pounds of copper, hybrid EVs contain approximately 85 pounds and plug-in hybrid EVs use 132 pounds. While battery BEVs contain 183 pounds, a hybrid electric bus and a battery electric bus contain 196 and 814 pounds of copper, respectively.

EV Industry on Fire, Copper Prospects Rosy

With rising awareness about greenhouse gases and their effect on global climate, several companies are aiming to reach carbon neutrality in the near term and the number of EV model launches is rapidly increasing. China, Europe, United Kingdom, France, Germany, the United States and other countries are laying out ambitious targets to phase out gas-powered vehicles. Per Deloitte projections, worldwide EV sales are set to see a CAGR of 29% over the next decade. Market Research Future expects the global EV market to reach $893.5 billion by 2027, representing a CAGR of 21.6% over 2021-2027 timeframe. The Boston Consulting Group projects EVs to more or less account for a third of the global auto industry by 2025, and more than 50% by 2030, indicating a massive jump from 2.6% in 2019.

Amid rising popularity of EVs, the demand for copper is likely to jump. Per the International Energy Agency, clean energy technologies will account for around 45% of copper demand in 2040, higher than 24% in 2020. Per Fastmarkets MB, adoption of EV vehicles will see global refined copper demand rise by 21% per year until 2030, reaching around 2.5 million tons in 2030. The International Copper Association estimates the EV boom to lift copper demand in green vehicles from 185,000 tons in 2017 to 1.74 million tons by 2027. Wood Mackenzie estimates that the growth in EV charging portals will result in the consumption of more than 250% more copper than the 2019 levels.

Stocks to Keep a Tab On

With copper being a key component powering EVs, here are some copper stocks that should be on your watchlist.

FreeportMcMoRan Inc. FCX: This Phoenix-based miner is expected to gain from progress in exploration activities that will boost production capacity. The company will benefit from the ongoing large-scale concentrator expansion project at Cerro Verde that will provide incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It recently completed the Lone Star copper leach project and is on track to produce around 200 million pounds of copper annually. Efforts to cut costs and debt levels appear encouraging. The company currently sports a Zacks Rank #1 (Strong Buy) and has a long-term expected EPS growth rate of 28.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southern Copper Corporation SCCO: This Mexico-based mining company has the largest copper reserves in the industry and operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. It has growth projects on track that will help achieve its target of producing 1.9 million tons of copper production by 2028.Backed by its commitment to increase low-cost production and growth investments, the company is well poised to continue delivering enhanced performance. It currently sports a Zacks Rank #1 and has a long-term expected EPS growth rate of 18.7%.

BHP Group BHP: Headquartered in Melbourne, this natural resources firm is engaged in the production of petroleum, copper, iron, and coal. The firm owns a copper mine in Chile and South Australia. In 2020, BHP produced around 1.7 million tons of copper. The company is expanding its mine at Spence in Chile, extending its life for another 50 years. It has also boosted exploration spending for more copper from all over the world. Efforts to make operations more efficient through smart technology adoption across the entire value chain will continue to aid in reducing costs, thereby bolstering the company’s margins. It currently has a Zacks Rank #1 and a long-term expected EPS growth rate of 4.1%.

Teck Resources TECK: Vancouver-based Teck is a significant copper producer in the Americas, with four operating mines in Canada, Chile and Peru, and copper development projects in North and South America. The firm’s Quebrada Blanca Phase 2 (QB2) copper project surpassed the half-way point in April. Once completed, QB2 will transform the company’s copper business, making it a major global copper producer. The company anticipates to produce 275,000-290,000 tons of copper in 2021, higher than 257,500 tons in 2020. Carrying a Zacks Rank #3 (Hold), the company has a long-term expected EPS growth rate of 20.2%.

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FreeportMcMoRan Inc. (FCX) : Free Stock Analysis Report

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In this article, we discuss the 10 best nickel stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Nickel Stocks to Buy Now.

The demand for nickel has been rising in the past few years as it becomes important to the electric vehicle industry. Nickel, previously used as a corrosion resistant material by the steel industry, has exploded in value with the mass production of cheap electronic devices, most of which make use of the metal in manufacturing. According to Research and Markets, the global production of the metal is expected to cross 2.76 million tons within the next two years. This represents a compound annual growth rate of close to 3% for the nickel industry.

A few mining companies poised to use the high demand for the precious metal to their advantage in the near future include Vale S.A. (NYSE: VALE), the Brazilian mining firm, BHP Group (NYSE: BHP), the Australian global resources company, and Rio Tinto Group (NYSE: RIO), the United Kingdom-based multinational metals corporation. On April 26, Vale S.A. (NYSE: VALE) posted earnings per share of $1.09 for the first quarter of 2021, beating market predictions by $0.06. The company is also considering a spinoff of its base metals division.

Meanwhile, BHP Group (NYSE: BHP) has also been enjoying a stellar start to the new year. On May 18, CEO Mike Henry spoke at a mining conference and said that the future outlook for commodities was compelling as the COVID-19 stimulus packages of the government helped lift the demand for raw materials for an extended period of time. Henry also outlined that the industry was evolving to the advantage of BHP, which had close to 25% of its mining portfolio in futuristic commodities like nickel and copper.

Rio Tinto Group (NYSE: RIO), the second-largest mining firm in the world, has also been adapting to changes in the mining sector by engaging in projects that make the firm more environmentally stable in the long-term. As one of the largest nickel producers, the company feels it has a responsibility to the clean energy industry to develop a sustainable market ecosystem. In this regard, the firm has recently pledged to stop using hydrogen in aluminum refining in order to cut down on emissions.

The demand for nickel has been a source of disruption in the mining industry that is usually reliant on other precious metals for revenue. Larger market forces have been reshaping entire industries in the past few years. 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 February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. 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.

Image by Tshekiso Tebalo from Pixabay

With this context in mind, here is our list of the 10 best nickel stocks to buy now. These were selected keeping in mind their relevance to the nickel industry, hedge fund sentiment, and the business fundamentals driving the earnings of each company.

Best Nickel Stocks to Buy Now

10. PolyMet Mining Corp. (NYSE: PLM)

Number of Hedge Fund Holders: N/A

PolyMet Mining Corp. (NYSE: PLM) is a mining company with interests in copper, nickel, cobalt, gold, silver, and platinum, among other metals. It is placed tenth on our list of 10 best nickel stocks to buy now. The stock has offered investors returns exceeding 29% over the course of the past four weeks. One of the top projects of the firm is the NorthMet, a polymetallic project located in Minnesota and covering an area of more than 4,000 hectares. Copper-nickel mines are part of the natural resource project.

In February, PolyMet Mining Corp. (NYSE: PLM) stock jumped to a six-month high, climbing 16% in a single day as the top court in Minnesota ruled in favor of the firm in a case involving a clean air permit issued to the firm by the pollution agency of the state.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in PolyMet Mining Corp. (NYSE: PLM) with 304,746 shares worth more than $963,000.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), PolyMet Mining Corp. (NYSE: PLM) is one of the best nickel stocks to buy now.

9. Haynes International, Inc. (NASDAQ: HAYN)

Number of Hedge Fund Holders: 11

Haynes International, Inc. (NASDAQ: HAYN) is a company that makes and sells nickel and cobalt-based alloys. These are corrosion resistant and are used in jet engines, gas turbines, and industrial heating equipment, among other places. The firm is ranked ninth on our list of 10 best nickel stocks to buy now. The company’s shares have returned 60% to investors over the course of the past year. Haynes has a market capitalization of just under $500 million and posted over $380 million in revenue last year.

Haynes International, Inc. (NASDAQ: HAYN) is one of the best options on the market when it comes to dividend payments. On April 29, the company declared a quarterly dividend of $0.22 per share, in line with previous. The forward yield was more than 3%.

At the end of the first quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $56 million in Haynes International, Inc. (NASDAQ: HAYN), down from 13 the preceding quarter worth $42 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Haynes International, Inc. (NASDAQ: HAYN) is one of the best nickel stocks to buy now.

8. Sibanye Stillwater Limited (NYSE: SBSW)

Number of Hedge Fund Holders: 16

Sibanye Stillwater Limited (NYSE: SBSW) is a South African mining company that focuses on precious metals. The company produces gold, nickel, copper, chrome, and other metals. The firm has mining interests in Africa and South America. The company has seen profits soar in recent weeks as the prices of basic materials rise and demand for nickel, used in premier electronic products, rises. It is placed eighth on our list of 10 best nickel stocks to buy now. The stock has returned 106% to investors over the past twelve months..

On June 1, Sibanye Stillwater Limited (NYSE: SBSW) stock soared by close to 7% after the company announced a share buyback program to repurchase 5% of ordinary stock till April next year, affirming that the buyback would not impact dividend payments for shareholders.

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Sibanye Stillwater Limited (NYSE: SBSW) with 5.2 million shares worth more than $93 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Sibanye Stillwater Limited (NYSE: SBSW) is one of the best nickel stocks to buy now.

In its Q1 2021 investor letter, Desert Lion Capital, an asset management firm, highlighted a few stocks and Sibanye Stillwater Limited (NYSE: SBSW) was one of them. Here is what the fund said:

“Sibanye is a South African gold and platinum group metals (“PGM”) producer with mines in South Africa and the U.S. Established in 2012, it has since become one of South Africa’s largest gold producers and the largest PGM producer in the world. Sibanye also operate a PGM recycling facility and own a majority interest in DRDGOLD, a specialist in the recovery of gold and other precious metals from open pit tailings.

The investment thesis incorporates the following logic:

If central banks globally are going to continue printing money unabated, precious metals prices should rise.

The drive for cleaner and greener is accelerating. The market for platinum, palladium and rhodium is structurally attractive.

The company is generally mischaracterized. Ask around, and one will find that most people still refer to Sibanye as “a South African gold miner” with “lots of debt from that Stillwater acquisition.”

It is not quick and easy to ramp up PGM supply in response to higher demand and prices. Favorable supply-demand characteristics will likely remain favorable for longer.

Bad capital allocation decisions, corporate excesses, and resultant tarnished reputations from the previous boom period are still fresh in the minds of most mining executives. Neal Froneman has proven himself a disciplined capital allocator. His approach to capital allocation is straightforward: deploy capital at expected returns that enhances value to shareholders or distribute it via dividends and buybacks.

The company is debt-free and generating heaps of cash.

The valuation is cheap. At current metal prices, Sibanye is trading at about 5 times after-tax cash profits.

Sibanye is effectively a call option on a potential commodity super cycle. In the meantime, the value of our “option” is unlikely to deteriorate as we are rewarded with healthy dividend flows.”

7. Materion Corporation (NYSE: MTRN)

Number of Hedge Fund Holders: 17

Materion Corporation (NYSE: MTRN) is ranked seventh on our list of 10 best nickel stocks to buy now. The company’s shares have returned 36% to investors over the past year. The firm makes and sells advanced engineering materials. These are used in making semiconductors, as well as in products used by the aerospace and defense industries. The company is famous for the production of copper and nickel in a variety of forms, including plate, bar, wire, rod, and others.

On April 29, Materion Corporation (NYSE: MTRN) posted earnings for the first quarter of 2021, reporting earnings per share of $0.82, beating market predictions by $0.22. The revenue for the first three months of 2021 was $354 million, up more than 27% year-on-year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Materion Corporation (NYSE: MTRN) with 421,511 shares worth more than $27 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Materion Corporation (NYSE: MTRN) is one of the best nickel stocks to buy now.

6. Mechel PAO (NYSE: MTL)

Number of Hedge Fund Holders: 3

Mechel PAO (NYSE: MTL) is a Russian mining company that has stakes in the power and steel businesses as well. It is placed sixth on our list of 10 best nickel stocks to buy now. The stock has returned 20% to investors over the past twelve months. The company is one of the top suppliers of nickel to the Russian government through the Southern Urals Nickel Plant. This nickel is used for defense needs when countries in the West refuse to export nickel to the Russian Federation.

In quarterly earnings results, posted on May 20, Mechel PAO (NYSE: MTL) reported a revenue of RUB76 billion for the first quarter of 2021, up close to 13% compared to the revenue for the first three months of last year.

At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $3 million in Mechel PAO (NYSE: MTL), down from 4 in the previous quarter worth $2.8 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Mechel PAO (NYSE: MTL) is one of the best nickel stocks to buy now.

Click to continue reading and see 5 Best Nickel Stocks to Buy Now.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Vivek Sankaran says pandemic increased sales and customer loyalty, and describes how Albertsons is managing inflation concerns.

By Rod Nickel

WINNIPEG, Manitoba, June 22 (Reuters) – Canadian potash producer Nutrien is not focused on any potential collaboration with miner BHP Group, a senior Nutrien executive said on Tuesday in the company's first public comments about reports of possible cooperation.

BHP has for years been constructing a potash mine at Jansen, Saskatchewan, near Nutrien's six mines in the Canadian province. BHP expects to present its board with a decision in a few months on whether to complete the project.

Canada's Globe and Mail newspaper reported in May that BHP and Nutrien were negotiating a joint venture that would see Nutrien take control of the Jansen mine, while Bloomberg reported the companies discussed various partnership options. Both cited unnamed sources.

"Today it's not our focus," said Nutrien Executive Vice-President of Potash Ken Seitz, in an interview, asked about potential for cooperation with BHP.

"I'll just say that everything you've seen is speculative and inaccurate."

BHP, the world's biggest miner, has estimated Jansen would cost up to $5.7 billion in its first phase. Potash offers BHP diversification from copper and iron ore into agricultural markets. Farmers spread the crop nutrient to boost yields.

Potash prices are surging, due to rising demand and recent European Union (EU) sanctions on Belarus, a major producer. Nutrien on Monday said it would boost potash output this year to take advantage.

Seitz said sanctions could hamper seaborne exports by Belaruskali, Belarus' state-owned potash company, as it depends on the Klapeida port in EU member Lithuania.

"That would be the big one, waiting to see whether as part of the sanctions, that trade route would be closed off," he said.

Nutrien could also benefit if sales by Russian potash producer Uralkali replace Belaruskali shipments to some markets and short others, like Brazil, Seitz said. (Reporting by Rod Nickel in Winnipeg Editing by Marguerita Choy)

Albertsons Companies, Inc. ACI looks to strengthen its grocery delivery capabilities to make shopping more seamless. In latest developments, the company announced its partnership with the technology firm DoorDash DASH to boost on-demand grocery delivery services. Through this tie-up, customers can get products delivered from about 2,000 Albertsons banner stores in the country. This includes Safeway, Vons, Jewel-Osco and more from the DoorDash marketplace app.

The coronavirus pandemic immensely changed consumers’ preferences and shopping trends including online purchasing and quick home delivery. Accordingly, companies are looking to expedite reliable delivery services for essential commodities including groceries, and in turn, making the shopping experience very convenient and faster.

We note that Albertsons will offer more than 40,000 grocery items including prepared and fresh food apart from core groceries via its partnership with DoorDash. Markedly, the new collaboration takes into consideration the immediate and long-term initiatives. This includes the expansion of Albertsons' first-party grocery delivery business with DoorDash Drive, thus offering a unique selection of specialty items, prepared meals and meal kits.

Hence, customers can now order groceries and essentials from Albertsons’ stores via DoorDash's marketplace app and get them delivered in an hour. Notably, no minimum order size is required to place the orders. Meanwhile, in select markets, customers can also place grocery orders via the local Albertsons store's website for same-day delivery. This is powered by DoorDash Drive, DoorDash's white-label fulfillment platform that enables direct delivery for any business.

In addition, the Albertsons-DoorDash tie-up launched a digital gaming experience for its customers. This will allow them to play and score savings on future orders. In fact, customers can win exciting rewards including credits of up to $5,000 on DoorDash purchases via the 'In the Bag' video game.

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We note that Albertsons remains committed toward digital transformation. The company registered digital sales growth of nearly 258% in fiscal 2020. Over the past six months, shares of Albertsons have increased 29.1% against its industry’s 12.9% decline. This food and drug dealer currently carries a Zacks Rank #2 (Buy).

Better-Ranked Stocks to Consider

Medifast MED has a trailing four-quarter earnings surprise of 12.7%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Darling Ingredients DAR, presently flaunting a Zacks Rank of 2, has a trailing four-quarter earnings surprise of 29.8%, on average.

5 Stocks Set to Double

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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DoorDash (DASH) and Albertsons Companies (ACI) have joined forces to enable on-demand grocery delivery. The new offering is in response to changing consumer tastes and shopping patterns that have seen most of them resort to services that offer home delivery.

Consumers will now be able to place grocery orders from Albertsons banner stores and have them delivered in an hour. Orders will take place through DoorDash's marketplace app.

Albertsons is to offer over 40,000 grocery items as part of the on-demand grocery delivery service. Some of the items on offer include prepared and fresh food in addition to core groceries. (See DoorDash stock chart on TipRanks)

"We are thrilled to partner with Albertsons, one of the largest food and drug retailers in the world, as they expand their already strong local footprint beyond their four walls to offer consumers convenient access to on-demand grocery delivery," said DoorDash Head of New Verticals, Fuad Hannon.

The on-demand grocery service is to be expanded to meet growing consumer demand while making shopping much easier. The strategic partnership also includes the expansion of Albertsons' first-party grocery delivery service. (See Albertsons stock chart on TipRanks)

Additionally, DoorDash and Albertsons are offering a gaming experience whereby customers stand to play and score savings on grocery orders. 'In the Bag' is the new video game from which customers stand to win up to $5,000 in credits towards purchases on DoorDash.

RBC Capital analyst Brad Erickson believes DoorDash has a differentiated strategy that has elevated it into a top-tier U.S restaurant delivery service. The analyst has since reiterated a Buy rating on the stock with a $175 price target implying 1.03% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 5 Buys and 7 Holds. The average DoorDash analyst price target of $168.67 implies 2.62% downside potential to current levels.

4 Copper Stocks to Watch

We suggest investors to keep an eye on these four copper-mining stocks that have been handpicked by us. Each of these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), and a VGM Score of A or B. We believe this combination offer the best investment opportunities. These stocks have also outperformed the S&P in the past year. This is shown in the chart below. These stocks are anticipated to carry the momentum forward backed by their earnings growth projections.

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Southern Copper Corporation SCCO: This company based in Phoenix, AZ engages in mining, exploring, smelting, and refining copper and other minerals.

The company has the largest copper reserves in the industry and operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. Its constant focus on increasing low-cost production is commendable. It has growth projects on track that will help achieve its target of producing 1.9 million tons of copper production by 2028.

The Zacks Consensus Estimate for the company’s earnings in 2021 suggests year-over-year growth of 117%. The estimate has moved north by 47% in 90 days’ time. It has a long-term estimated earnings growth rate of 18.7%. The company’s shares have surged 58.9% in the past year. It currently has a Zacks Rank #1 and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

BHP Group BHP: Headquartered in Melbourne, Australia, BHP Group engages in exploration, development, and production of oil and gas properties; and mining of copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal.

In 2020, BHP produced around 1.7 million tons of copper in 2020. The company is expanding its mine at Spence in Chile, extending its life for another 50 years. It has also boosted exploration spending for more copper from all over the world. The company has four major projects under development in petroleum, copper, iron ore and potash with a combined budget of $8.5 billion over the life of the projects, which will drive growth in the long run. Efforts to make operations more efficient through smart technology adoption across the entire value chain will continue to aid in reducing costs, thereby bolstering the company’s margins. Its focus on lowering debt will also contribute to growth.

The company has a long-term estimated earnings growth rate of 4%. The Zacks Consensus Estimate for the company’s fiscal 2021 earnings suggests year-over-year growth of 84%. The estimate has been revised upward by 4% over the past 90 days. The stock has a Zacks Rank #3 and a VGM Score of B. Its shares have appreciated 39.6% in the past year.

Rio Tinto plc RIO: Headquartered in London, the U.K., Rio Tinto engages in mining of aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium.

The company’s world-class portfolio of high-quality assets and strong balance sheet positions it well to navigate through these turbulent times. Rio Tinto’s disciplined capital allocation supports its ability to sustain production and increase investment in development projects (in high-return iron ore and copper), while delivering superior returns to shareholders. Notably, its copper projects at Resolution (Arizona) and Winu (Western Australia) offer significant growth prospects.

The Zacks Consensus Estimate for fiscal 2021 earnings indicates year-over-year growth of 41%. The estimate has been revised upward by 11% over the past 90 days. In a year’s time, the company’s shares have gained 44.4%. The company has a Zacks Rank #3 and a VGM Score of A.

Freeport-McMoRan Inc. FCX: This Phoenix, AZ-based company is engaged in mineral exploration and development; mining and milling of copper, gold, molybdenum and silver; and smelting and refining of copper concentrates.

Freeport is conducting exploration activities near existing mines with focus on opportunities to expand reserves. The company will benefit from ongoing large-scale concentrator expansion project at Cerro Verde that will provide incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It recently completed the Lone Star copper leach project and is on track to produce around 200 million pounds of copper annually. Efforts to cut costs and debt levels appear encouraging.

The Zacks Consensus Estimate for earnings for fiscal 2021 suggests year-over-year improvement of 480%. The estimate has been revised upward by 22% over the past 90 days. Shares of the company have soared 224% over the past year. It has a Zacks Rank #3 and a VGM Score of A. It has a long-term estimated earnings growth rate of 28.7%.

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In this article, we discuss the 10 best copper stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Copper Stocks to Buy Now.

Copper is on track to become the new gold as the gap between supply and demand widens. According to a prediction by Bank of America, the price of copper could climb to $20,000 per metric ton within the next three years. However, the copper industry has been hit in recent weeks as the US prepares to lift interest rates, sending the price of the dollar surging and reducing the demand for the metal. In a double blow to the industry, China has announced that it will release the metal from national reserves in a bid to control commodity prices.

These developments have hit the copper industry that was on a bull run following the rise in demand for the metal as the economy reopened following the pandemic lockdowns. Copper is used in many electrical products like wires, motors, mobile devices, and others. It is also used in consumer ware and interior components of housing. Lately, as the demand for electric vehicles rises, copper is rapidly being consumed as it offers durability, high conductivity and efficiency, and is used in EV vehicles, charging stations, and other EV-related products.

Some of the companies that are at the forefront of copper production and could cash in on the expected boom for the metal in the long-term include Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM). In February, Freeport-McMoRan Inc. (NYSE: FCX) CEO Richard Adkerson announced that the firm was seeking to approve expansions at US-based copper mines to keep up with the surging demand, especially as copper was a central product for the new climate projects of the US government.

Meanwhile, Rio Tinto Group (NYSE: RIO), the United Kingdom-based mining firm, posted its biggest annual profit since 2011 in February as rising metals prices boosted revenue. It also declared the biggest dividend in its almost 15-decade-long history, totaling over $9 billion in payments to shareholders for 2020. Although this rise in earnings is largely attributed to the soaring price of iron, which accounts for more than 90% of the total earnings, the surge in copper prices also gave a firm push as it delivered a record quarter at the end of 2020.

Newmont Corporation (NYSE: NEM), the largest gold mining firm in the world, has also benefited from the copper business over the past few months. In April, the firm was named among the highest convictions picks for the second quarter by Bank of America. The company beat market expectations on earnings per share for the fourth quarter of 2020 even as gold production fell because of rising prices. In February, the firm hiked the quarterly dividend payment by a whopping 38%.

It remains to be seen how these companies weather the bear tailwinds in the coming months. Stock volatility in the past few years has pummeled entire investment portfolios in the past few years. 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 February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. 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.

Photo by Ricardo Gomez Angel on Unsplash

With this context in mind, here is our list of the 10 best copper stocks to buy now. These were selected keeping in mind annual copper production, hedge fund sentiment, and the business fundamentals underlying each company.

Best Copper Stocks to Buy Now

10. Barrick Gold Corporation (NYSE: GOLD)

Number of Hedge Fund Holders: 49

Barrick Gold Corporation (NYSE: GOLD) is a mining firm that focuses on the extraction and development of gold and copper. It has operations in more than 10 countries around the world. It is placed tenth on our list of 10 best copper stocks to buy now. The stock has offered investors returns exceeding 2.8% over the past three months. In the first quarter of 2021, a surge in prices helped the firm with a 31% quarter-to-quarter increase in revenue from copper mines in Chile, Saudi Arabia and Zambia.

On June 4, Barrick Gold Corporation (NYSE: GOLD) Mark Bristow told the media that the company hoped to restart a mining operation in Papua New Guinea (PNG) under a new deal that would exploit the resources in the operation under a joint venture with PNG stakeholders.

At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Barrick Gold Corporation (NYSE: GOLD), down from 53 the preceding quarter worth $1.7 billion.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD) is one of the best copper stocks to buy now.

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:

“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”

9. Teck Resources Limited (NYSE: TECK)

Number of Hedge Fund Holders: 30

Teck Resources Limited (NYSE:TECK) is a natural resources firm that engages in the mining of copper, zinc, and other metals. It is ranked ninth on our list of 10 best copper stocks to buy now. The stock has returned more than 102% to investors in the past twelve months. The firm has mining interests in many countries, including Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States, among others. The firm is one of the biggest copper producers in the world with copper mines in Canada and South America.

On May 26, investment advisory Deutsche Bank upgraded Teck Resources Limited (NYSE:TECK) stock to Buy from Hold with a price target of $30 on the back of growth potential with regards to the QB2 copper project and the returns it promised in the medium term.

Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Teck Resources Limited (NYSE:TECK) with 9.3 million shares worth more than $179 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Teck Resources Limited (NYSE:TECK) is one of the best copper stocks to buy now.

8. Vale S.A. (NYSE: VALE)

Number of Hedge Fund Holders: 31

Vale S.A. (NYSE: VALE) is a metals mining company that concentrates on the production of iron ore, nickel, and other metals. The firm is one of the largest ones in Brazil and markets logistical services related to these metals in addition to mining and development. It is placed eighth on our list of 10 best copper stocks to buy now. The company’s shares have returned more than 109% to investors over the past twelve months. Last year, the firm produced almost 360,000 metric tons of copper.

On June 4, Vale S.A. (NYSE: VALE) halted production at two mines in the Minas Gerais region of Brazil after local officials evacuated people from nearby the site of Xingu dam. Brazilian officials have said that the dam is close to collapsing but Vale disputes this.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Vale S.A. (NYSE: VALE) with 38 million shares worth more than $661 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Vale S.A. (NYSE: VALE) is one of the best copper stocks to buy now.

7. BHP Group (NYSE: BHP)

Number of Hedge Fund Holders: 18

BHP Group (NYSE: BHP) is an Australian natural resources firm with interests in petroleum, copper, iron, and coal. The firm owns a copper mine in Chile, as well as other copper-related assets elsewhere. It produced more than 1.3 million tons of copper in 2020. The firm owns a copper mine in South Australia. It is ranked seventh on our list of 10 best copper stocks to buy now. The stock has returned more than 43% to investors over the past year.

On June 11, BHP Group (NYSE: BHP) shares jumped close to 1% as the firm announced that workers at a copper mine in Chile had accepted work contracts, putting an end to rumors about a strike that could have hit the mine and global copper production.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE: BHP) with 7.9 million shares worth more than $553 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), BHP Group (NYSE: BHP) is one of the best copper stocks to buy now.

6. Turquoise Hill Resources Ltd. (NYSE: TRQ)

Number of Hedge Fund Holders: 13

Turquoise Hill Resources Ltd. (NYSE: TRQ) is a mineral exploration and development company. It is placed sixth on our list of 10 best copper stocks to buy now. The stock has returned more than 142% to investors in the past twelve months. The company concentrates on operations related to copper, gold, and silver. In 2020, the firm produced 149,631 tons of copper, beating guidance of 140,000 tons.

On May 12, Turquoise Hill Resources Ltd. (NYSE: TRQ) posted earnings results for the first quarter of 2021, reporting earnings per share of $1.18, beating market expectations by $0.63. The revenue over the period was more than $520 million, up 302% year-on-year.

At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $575 million in Turquoise Hill Resources Ltd. (NYSE: TRQ), up from 12 in the previous quarter worth $374 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Turquoise Hill Resources Ltd. (NYSE: TRQ) is one of the best copper stocks to buy now.

Click to continue reading and see 5 Best Copper Stocks to Buy Now.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Whitehaven Coal's total shareholder return (TSR) and its share price return. 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. Its history of dividend payouts mean that Whitehaven Coal's TSR of 131% over the last 5 years is better than the share price return.

A Different Perspective

Whitehaven Coal shareholders gained a total return of 22% during the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 18% per year over five year. This suggests the company might be improving over time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Whitehaven Coal that you should be aware of before investing here.

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

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

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

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of BHP Group (ASX:BHP) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.

Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.

See our latest analysis for BHP Group

Crunching the numbers

We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:

10-year free cash flow (FCF) estimate

	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
Levered FCF ($, Millions)	US$16.7b	US$15.8b	US$14.1b	US$15.5b	US$10.7b	US$10.0b	US$9.66b	US$9.45b	US$9.37b	US$9.36b
Growth Rate Estimate Source	Analyst x16	Analyst x17	Analyst x15	Analyst x3	Analyst x1	Est @ -6.33%	Est @ -3.85%	Est @ -2.12%	Est @ -0.91%	Est @ -0.06%
Present Value ($, Millions) Discounted @ 7.2%	US$15.6k	US$13.8k	US$11.4k	US$11.7k	US$7.6k	US$6.6k	US$6.0k	US$5.4k	US$5.0k	US$4.7k

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$88b

The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.9%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%.

Terminal Value (TV)= FCF₂₀₃₀ × (1 + g) ÷ (r – g) = US$9.4b× (1 + 1.9%) ÷ (7.2%– 1.9%) = US$182b

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$182b÷ ( 1 + 7.2%)¹⁰= US$91b

The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$179b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of AU$46.5, the company appears about fair value at a 1.7% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out.

The assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at BHP Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.2%, which is based on a levered beta of 1.109. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Moving On:

Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For BHP Group, we've compiled three fundamental factors you should consider:

Risks: Be aware that BHP Group is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored…
Future Earnings: How does BHP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here.

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

It is a pleasure to report that the New Hope Corporation Limited (ASX:NHC) is up 42% in the last quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 37% in the last three years, falling well short of the market return.

See our latest analysis for New Hope

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over the three years that the share price declined, New Hope's earnings per share (EPS) dropped significantly, falling to a loss. This was, in part, due to extraordinary items impacting earnings. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But it's safe to say we'd generally expect the share price to be lower as a result!

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for New Hope the TSR over the last 3 years was -27%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

We're pleased to report that New Hope shareholders have received a total shareholder return of 38% over one year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 12%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with New Hope , and understanding them should be part of your investment process.

We will like New Hope better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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

Company exceeds their nationwide pledge to ensure environmentally responsible seafood sourcing 18 months ahead of schedule

BOISE, Idaho, Jun 18, 2021–(BUSINESS WIRE)–Albertsons Companies (NYSE: ACI) furthers their industry leadership in seafood sustainability by announcing 100 percent of its stores’ prepared sushi is aligned with the company’s Responsible Seafood Policy.

Originally adopted in 2018, the "Top 5 by 2022" Sushi Commitment set an ambitious goal for Albertsons Cos. to transition salmon, tuna, shrimp, and imitation crab to sources that meet the Responsible Seafood Policy within five years. As part of the Sushi Commitment, the company also pledged to discontinue eel until sustainable sources become available, which was achieved in 2019. Now all salmon, tuna, shrimp, and imitation crab used in sushi meet one of the following criteria from Albertsons Cos. Responsible Seafood Policy:

Rated Green (best choice) or Yellow (good alternative) by the Monterey Bay Aquarium’s Seafood Watch program; or
Certified to an equivalent environmental standard; or
Sourced from fisheries or farms making measurable and time-bound improvements.

"We owe it to our customers to make sure each and every product is of the highest quality, and at Albertsons Companies, that includes offering seafood from environmentally responsible sources," said Jewel Hunt, Group Vice President of Bakery and Deli Food Service at Albertsons Companies. "We are thrilled to be achieving our Sushi Commitment early, and look forward to sharing more on our progress across the rest of our seafood portfolio in the coming months."

The responsibly sourced sushi can be purchased at any of the Albertsons Cos. family of stores where sushi is sold including Albertsons, Safeway, Vons, Jewel-Osco, Tom Thumb, Shaw’s, Star Market, ACME Markets, Randalls, Pavilions, Haggen and Carrs.

This achievement is part of Albertsons Cos. ongoing efforts to advance the sustainability of the extensive seafood offerings at the company’s nearly 2,300 stores. In addition to exceeding timelines on the company’s Sushi Commitment, Albertsons Cos. announced last year that 100% of their Open Nature® and waterfront BISTRO® seafood met their Responsible Seafood Policy two and a half years early.

Albertsons Cos. recognizes that environmental sustainability is just one important element of responsibly sourced seafood, which is why the company's Responsible Seafood Program incorporates additional criteria that are critical to the seafood industry, such as traceability and social responsibility. In collaboration with their sushi vendors and FishWise, Albertsons Cos. is undertaking a traceability project to verify that tuna fishing boats in the company’s sushi supply chains follow international fishing laws and industry best practices as outlined in Albertsons Cos.’ At-Sea Transshipment of Tuna Position Statement.

About Albertsons Companies

Albertsons Companies is a leading food and drug retailer that operates stores across 34 states and the District of Columbia with more than 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2020, along with the Albertsons Companies Foundation, the Company gave $260 million in food and financial support, including $95 million through our Nourishing Neighbors Program to ensure those living in our communities have enough to eat. Albertsons Companies also pledged $5 million to organizations supporting social justice. These efforts have helped millions of people in the areas of hunger relief, education, cancer research and treatment, social justice and programs for people with disabilities and veterans' outreach.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210618005091/en/

Contacts

Kirby Nardo, Albertsons Cos.
Kirby.nardo@albertsons.com

Friday, June 18, 2021

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 Abbott Laboratories (ABT), Bank of America (BAC), and PayPal Holdings (PYPL). 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 >>>

Shares of Abbott have underperformed the Zacks Medical Products industry in the year-to-date period (+1.8% vs. +3.8%). The Zacks analyst believes that the branded generics and international diabetes businesses should drive growth in the coming quarters. Further, new product launches and acquisitions are likely to boost Abbott’s sales further.

The company posted robust year-over-year improvements in the first quarter. It registered organic sales growth across most operating segments. Further, Diabetes Care sales were strong on the back of solid worldwide adoption of FreeStyle Libre. However, the company’s disappointing performance in the Pediatric Nutrition unit remains a major concern.

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

Bank of America shares have gained +31.4% over the last six months against the Zacks Major Regional Banks industry’s gain of +27.9%. The Zacks analyst believes that opening of new branches, enhanced digital offerings, strategic acquisitions and efforts to manage expenses will continue to support the company’s profitability in the near term.

Moreover, a strong balance sheet and liquidity position are expected to continue aiding financials. However, lower interest rates and the Federal Reserve signaling no near-term chance of change in the same are expected to keep hurting the bank’s margins and interest income.

(You can read the full research report on Bank of America here >>>)

Shares of PayPal have gained +14.7% in the past three months against the Zacks Internet Software industry’s gain of +1%. The Zacks analyst believes that PayPal is benefiting from robust growth in total payments volume on the back of increasing net new active accounts. Moreover, strengthening customer engagement on the company’s platform is another positive.

Solid momentum of core peer to peer and PayPal Checkout experiences is a tailwind. Also, accelerating transaction revenues of PayPal are likely to continue driving revenues. However, increasing credit loss reserves due to macroeconomic projections on account of the ongoing pandemic remains a matter of concern.

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

Other noteworthy reports we are featuring today include The Procter & Gamble (PG), BHP Group (BHP) and Boeing (BA).

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Abbott (ABT) Base Business Rebounds, Drop in FY View Ails

Expense Saving Supports Bank of America (BAC) Amid Low Rates

PayPal (PYPL) Benefits From Increasing Total Payment Volume

Featured Reports

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

Per the Zacks analyst, P&G has been witnessing cost-savings and efficiency gains across all its business driven by the productivity program.

Liquidity, High Iron Prices Aid BHP Group (BHP), Costs Hurt

The Zacks analyst believes BHP's strong cash flow, focus on lowering debt, higher iron prices, and efforts to make operations more efficient will drive growth despite higher costs.

Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt

Per the Zacks Analyst, strategic mergers made by Boeing, such as overtaking KLX, boost growth. However, low 737 deliveries as a result of the worldwide grounding of 737 Max jets raises concerns.

ConocoPhillips (COP) Banks on Oil-Rich Permian Footprint

The Zacks analyst expects ConocoPhillips to boost production from lucrative oil resources in the prolific Permian Basin.

New Product Development, Wide Market Reach Aid Eaton (ETN)

Per the Zacks analyst, Eaton's operations in 175 countries across the world and the development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

Strategic Initiatives Benefit Aon (AON), Rising Debts Hurt

Per the Zacks analyst, buyouts and collaborations have enhanced the company's capabilities, which in turn, has led to bottom-line growth.

T. Rowe (TROW) Rides on Organic Growth Moves Amid High Costs

As per Zacks analyst, organic growth-focused initiatives and a debt-free position along with substantial liquidity might continue to support T. Rowe Price.

New Upgrades

International Paper (IP) Rides on Favorable Demand, Buyouts

The Zacks analyst expects International Paper to gain from elevated packaging demand as well as focus on strategic acquisitions to strengthen its packaging business.

Western Digital (WDC) Rides on High-Capacity HDD Adoption

Per the Zacks analyst, Western Digital is benefiting from demand for high-capacity energy-assisted drives (16 and 18 terabytes) and its second-generation NVMe enterprise solid-state drives (SSDs).

Strength in E-Commerce Drives PVH Corp's (PVH) Top Line

Per the Zacks analyst, PVH Corp is gaining from solid online sales in all regions and brands, even after stores reopened. Notably, revenues in digital commerce unit surged 66% year over year in Q1.

New Downgrades

Debt Maturity Profile to Weigh on Canadian Natural (CNQ)

The Zacks analyst is worried that the company is set to face debt maturities each year out till 2027, thereby exposing it to refinancing risk at a time of extremely volatile commodity prices.

Stiff Competitive Landscape, Forex Woes Ail Abiomed (ABMD)

The Zacks analyst is worried about Abiomed facing fierce competition in the field of treatments for heart-related diseases. Unfavorable currency movements are an added issue.

Cat Loss Exposure, Rising Expenses Hurt CNA Financial (CNA)

Per the Zacks analyst, CNA Financial's exposure to catastrophe loss induces underwriting volatility thus profitability while rising expenses affecting net operating income concerns.

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

PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

Procter & Gamble Company The (PG) : Free Stock Analysis Report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

Bank of America Corporation (BAC) : Free Stock Analysis Report

The Boeing Company (BA) : Free Stock Analysis Report

Abbott Laboratories (ABT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The Zacks Coal industry stocks have been under tremendous stress due to concerns about the impact of rising emissions. Coal is gradually losing ground to natural gas and clean alternate sources of energy. The decline in prices and demand has been hurting the profit levels of coal operators over the past few years. However, with the gradual rollout of vaccines and improving global economic activity, electricity demand is increasing and utility operators are buying more coal to step up production. Stocks like Peabody Energy Corporation (BTU), which have exposure in thermal coal and metallurgical (met) coal, are well poised to benefit from the revival in the domestic and international coal markets. Other coal stocks that are poised to benefit from an expected increase in U.S. met coal export in 2021 are CONSOL Energy Inc. (CEIX), SunCoke Energy Inc. (SXC) and Ramaco Resources (METC) as steel production is expected to increase during the 2021-2022 time period in the European and Asian countries.

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SunCoke Energy, Inc. (SXC) : Free Stock Analysis Report

Ramaco Resources, Inc. (METC) : Free Stock Analysis Report

Consol Energy Inc. (CEIX) : Free Stock Analysis Report

Peabody Energy Corporation (BTU) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 900 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Hallador Energy Co (NASDAQ:HNRG).

Hallador Energy Co (NASDAQ:HNRG) has seen a decrease in hedge fund interest lately. Hallador Energy Co (NASDAQ:HNRG) was in 4 hedge funds' portfolios at the end of March. The all time high for this statistic is 12. There were 5 hedge funds in our database with HNRG positions at the end of the fourth quarter. Our calculations also showed that HNRG isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 206.8% since March 2017 and outperformed the S&P 500 ETFs by more than 115 percentage points (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

David Harding of Winton Capital Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $28 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let's take a peek at the new hedge fund action regarding Hallador Energy Co (NASDAQ:HNRG).

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

At Q1's end, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of -20% from the previous quarter. By comparison, 9 hedge funds held shares or bullish call options in HNRG a year ago. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies, holds the most valuable position in Hallador Energy Co (NASDAQ:HNRG). Renaissance Technologies has a $2.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Dan Rasmussen of Verdad Advisers, with a $2 million position; 0.6% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors that hold long positions consist of Richard Oldfield's Oldfield Partners, Israel Englander's Millennium Management and . In terms of the portfolio weights assigned to each position Verdad Advisers allocated the biggest weight to Hallador Energy Co (NASDAQ:HNRG), around 0.64% of its 13F portfolio. Oldfield Partners is also relatively very bullish on the stock, setting aside 0.04 percent of its 13F equity portfolio to HNRG.

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Winton Capital Management. One hedge fund selling its entire position doesn't always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don't think this is the case in this case because none of the 750+ hedge funds tracked by Insider Monkey identified HNRG as a viable investment and initiated a position in the stock.

Let's go over hedge fund activity in other stocks similar to Hallador Energy Co (NASDAQ:HNRG). We will take a look at Crown ElectroKinetics Corp. (NASDAQ:CRKN), MEDIROM Healthcare Technologies Inc. (NASDAQ:MRM), Asia Pacific Wire & Cable (NASDAQ:APWC), Communications Systems, Inc. (NASDAQ:JCS), Deswell Industries, Inc. (NASDAQ:DSWL), Friedman Industries (NYSE:FRD), and Strata Skin Sciences, Inc. (NASDAQ:SSKN). All of these stocks' market caps are similar to HNRG's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CRKN,2,371,2 MRM,1,218,1 APWC,2,1076,1 JCS,2,8743,0 DSWL,1,62,0 FRD,1,4518,0 SSKN,3,12047,-1 Average,1.7,3862,0.4 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 1.7 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $5 million in HNRG's case. Strata Skin Sciences, Inc. (NASDAQ:SSKN) is the most popular stock in this table. On the other hand MEDIROM Healthcare Technologies Inc. (NASDAQ:MRM) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Hallador Energy Co (NASDAQ:HNRG) is more popular among hedge funds. Our overall hedge fund sentiment score for HNRG is 64. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 17.2% in 2021 through June 11th but still managed to beat the market by 3.3 percentage points. Hedge funds were also right about betting on HNRG as the stock returned 52.4% since the end of March (through 6/11) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.

Get real-time email alerts: Follow Hallador Energy Co (NASDAQ:HNRG)

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

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Southern Copper Corporation SCCO has various organic growth projects up its sleeve that will help the company in achieving its target of producing 1.9 million tons (Mt) by 2028. The will aid the company capitalize on the surge in demand for the metal triggered by the global focus on lower-carbon emissions. Backed by world class assets and its incessant focus on cost efficiency, the company is poised well for growth in the long haul.

Through the years, the company’s strong financial discipline has enabled it to make investments in its asset portfolio. It currently has the largest copper reserves in the industry at 67.7 Mt outscoring peers like FreeportMcMoRan Inc. FCX, Codelco and BHP Group BHP with copper reserves of 52.6Mt, 46.6 Mt and 44.4 Mt, respectively.

Roadmap to Copper Production of 1.9 Mt

The road from now to achieving production of 1.9 million tons will be a bit bumpy at the beginning, as the company anticipates lower grades to impact production in 2021 and 2022. However, 2023 is expected to be an inflation year with copper production expected to reach 1,031,000 tons. This will be made possible by the Peruvian production coming back on track and new production on projects of Pilares, El Pilar and Buenavista zinc concentrators.

Southern Copper operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. Including the Michiquillay ($2.5 billion) and Los Chancas ($2.6 billion) projects, its total investment program in Peru runs to $7.9 billion. Peru is currently the second largest producer of copper globally and holds 13% of the world’s copper reserves. Peru’s national output is expected grow to 225000 tons in 2022 and 245000 tons in 2023, per Trading Economics.

In Mexico, the company has a planned investment of $413 million in the Buenavista Zinc — Sonora project. It is expected to be completed in 2023 and will double the company’s zinc production capacity. An investment of $159 million is estimated for Pilares – Sonora project in Mexico, which comprises an open pit mine operation with an annual production capacity of 35,000 tons of copper in concentrates. It is expected to begin production in first-quarter 2022. This project will significantly improve the overall mineral ore grade. The low capital intensity copper greenfield project, El Pilar project, with an investment of $310 million is expected to be completed in 2023. It will add 36,000 tons of copper annually. The El Arco – Baja California project with an estimated capital budget of $2.9 billion is anticipated to have annual production of 190,000 tons of copper and 105,000 ounces of gold. These projects will help the company attain production target of 1.9 million tons by 2028.

High Copper Prices & Low Cost to Boost Margins

Copper prices have gained this year on pickup in global industrial activity and recovery in automobile industry. Further, the $2 trillion infrastructure package announced by President Biden will significantly increase the demand for copper, which is a fundamental element at green energy facilities. Thus, the long-term outlook for copper is positive as copper demand is expected to grow, driven by electric vehicles and renewable energy and infrastructure investments.

However, grade decline, rising input costs, water constraints and scarcity of high-quality future development opportunities continue to constrain the industry’s supply. This demand supply imbalance will push copper prices north. Backed by its endeavors to increase low-cost production, the company’s copper production cash cost is lower than other miners like Vale S.A VALE, BHP Group, Codelco and FreeportMcMoRan, which is commendable. Higher copper prices and low costs will translate to improved margins for the company.

Price Performance

Shares of Southern Copper have appreciated 70% over the past year compared with the industry’s rally of 138.9%.

Image Source: Zacks Investment Research

Zacks Rank

Southern Copper currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

FreeportMcMoRan Inc. (FCX) : Free Stock Analysis Report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

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

To read this article on Zacks.com click here.

(Bloomberg) — Global demand for potash could grow by as much as 3% a year over the next decade, BHP Group said as the world’s biggest miner prepares to decide on a major investment in the crop nutrient in Canada.

BHP remained on track to take a final investment decision on the Jansen potash project around the middle of 2021, the company said Thursday in a presentation, pending finalization of port and rail arrangements and a final risk assessment. The first phase of development is seen costing between $5.3 billion and $5.7 billion, with initial production expected within five to six years.

Potash prices have rallied this year, boosted by the economic recovery from the Covid-19 pandemic. Nutrien Ltd., the world’s biggest fertilizer company, said earlier this month that it plans to boost its potash production by about half a million metric tons more than it previously expected this year amid strong global demand.

“Potash is a future-facing commodity that is positively leveraged to global mega-trends, including decarbonization,” Huw McKay, BHP’s chief economist, said on a conference call. “While the industry is currently subject to excess capacity, the demand trajectory is expected to absorb this overhang over the course of this decade.”

Demand could rise to as much as 97 million tons by 2035, from around 70 million tons currently, BHP said, with consumption expected to catch up with supply by the late 2020s or early 2030s. Canada was well placed to meet that demand growth, having more than half of the global reserve base. It already accounts for almost a third of global potash exports.

Read: BHP Runs Rule Over Troubled Potash Project as Decision Looms

Nutrien has been touted as a potential partner for BHP in Jansen, with the miner seen benefiting from Nutrien’s industry knowledge and marketing expertise. BHP has struggled with the project for years, having down-sized earlier plans for a bigger concept and already ploughed at least $4.5 billion into its development.

“Our decision on Jansen depends on more than just the fundamentals of potash,” said Ragnar Udd, president of BHP’s minerals Americas business. “We’re still finalizing a port, and that remains one of the key steps for us to work for,” he said. The group was considering either a commercial option at the port of Vancouver, or a purpose-built greenfield facility at the port.

BHP shares were down 1.5% at A$47.64 at 10:58 a.m. Sydney time on Thursday, compared to a 0.5% decline in the benchmark S&P/ASX 200 index.

(Adds executive comment in paragraph seven)

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Brisbane, Queensland, Australia–(Newsfile Corp. – June 17, 2021) – Graphene Manufacturing Group Ltd. (TSXV: GMG) ("GMG" or the "Company") is pleased to announce the signing of a non-binding Letter of Intent (LOI) with OPENIA Project Management Services LLC ("OPENIA") for the exclusive distribution of THERMAL-XR®~ powered by GMG Graphene throughout the United Arab Emirates.

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/8082/87830_773b6458d4739954_001full.jpg

Under the auspices of His Excellency Ahmed Al Khatib, Chief Development & Delivery Officer Expo 2020 Dubai, and Trade and Investment Queensland Commissioner Middle East Ms. Donna Massie, OPENIA Chairman Mohammed Fadel Al Mazrooei and GMG CEO & Managing Director Craig Nicol signed the Letter of Intent – taking place simultaneously in the Australian Pavilion at EXPO 2020 DUBAI and the Trade and Investment Queensland office in Brisbane.

THERMAL-XR®~ powered by GMG Graphene is a coating system for restoring and improving energy efficiency to corroded or poorly performing refrigeration and air conditioning coils. The process coats, protects and rebuilds lost thermal conductivity by leveraging GMG's Graphene to increase the heat transfer rate, resulting in efficiency improvement, and reductions in both energy and Co2 emission for customers.

GMG CEO and Managing Director Craig Nicol stated, "The growing demand for cooling is impacting power generation and distribution capacity and is often one of the highest costs of a company's operation. GMG's THERMAL-XR® coating system is a high-tech but easy to apply solution to improve efficiency and save energy. The technology is a clear example of GMG's Graphene's ability to transfer heat, providing measurable efficiency gains for air conditioning asset owners. The Letter of Intent between GMG and OPENIA builds on the introduction by the Queensland Government's global business agency, Trade and Investment Queensland (TIQ), which has been very helpful. I am very pleased about reaching this milestone and very excited to see THERMAL-XR® penetrating the strategic Middle-East market".

OPENIA Chairman Mohammed Fadel Al Mazrooei said, "We are very pleased to progress our relationship with GMG in the UAE. The potential of this innovative product to bring both emission and energy savings to customers throughout the region aligns with our country's strategy for environment and sustainability. The importance of THERMAL-XR® and Clean-tech Graphene products in general to this part of the world is recognised today with the attendance of His Excellency Ahmed Al Khatib, and the Honorable Ms. Donna Massie here at the Australian Pavilion of EXPO 2020 DUBAI."

Trade and Investment Queensland Commissioner Middle East Ms. Donna Massie said, "GMG is an exceptional Queensland company with excellent values providing sustainable, innovative world-class energy saving and storage solutions. Trade and Investment Queensland are very pleased to support this LOI and to continue to assist and support GMG's growth and development in all Middle East markets."

GMG's Middle East and North Africa Representative Mounir Bouaziz added "This region has a big challenge when it comes to the energy costs to cool buildings. A simple solution such as Thermal-XR that can reduce energy costs has great potential here. The Letter of Intent provides a rapid pathway for mobilisation, operations, and future growth between GMG and OPENIA for the distribution of THERMAL-XR® within the United Arab Emirates".

About OPENIA

OPENIA is a Dubai-based local solutions provider that helps international companies and startups establish and develop their business throughout the Middle East and North Africa. By researching new solutions and opportunities, they consult with their clients and regional partners to develop and implement strategies to maximize their impact within the region. For further information regarding OPENIA, please contact Chris Pugh, General Manager, at chris@openia.ae, +971 58 9771493.

About GMG

The Company is also in the early stages of pursuing additional opportunities for GMG Graphene, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance of lube oil, biodiesel and diesel fuels.

For further information, please contact:

– Craig Nicol, Chief Executive Officer and Managing Director of the Company at craig.nicol@graphenemg.com, +61 415 445 223

– Leo Karabelas at Focus Communications, leo@fcir.ca, +1 647 689 6041

Cautionary Note Regarding Forward-Looking Statements

Such forward-looking statements are based on a number of assumptions of management, including, without limitation, assumptions regarding the accuracy of the Company's cost and timing expectations, the ability of the Company to achieve the expected results of its THERMAL-XR® coating system, that the Company will be successful in the deployment of its resources and personnel, that the Company will be able to negotiate and enter into a definitive binding agreement with OPENIA with respect to the exclusive distribution of THERMAL-XR®, that market demand for the Company's products will be consistent with the Company's expectations, that the Company's operations and ability to develop its products will not be adversely impacted by COVID-19, the Company's ability to research, develop and test its products within anticipated timelines, that results of testing and development data will be consistent with anticipated results and estimates. Additionally, forward-looking information involve a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of GMG to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) GMG's operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as the COVID-19 pandemic may adversely impact GMG's business and the ability of the Company to produce, develop or distribute its products; (c) the volatility of global capital markets; (d) political instability; (e) the failure of GMG to attract and retain skilled personnel; (f) unexpected development and production challenges; (g) GMG could face technology or software disruptions; (h) unanticipated costs; (i) the transactions contemplated by the LOI may not be completed; (j) market demand for GMG's THERMAL-XR® coating system may not meet the Company's expectations; and (k) the risk factors set out under the heading "Risk Factors" in the Company's final long form non-offering prospectus dated March 31, 2021 available for review on the Company's profile at www.sedar.com, many of which are beyond the ability of the Company to control or predict. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Neither GMG nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this press release. Neither GMG nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this press release by you or any of your representatives or for omissions from the information in this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/87830

For most high-growth tech investors, inflation is usually the last thing on their minds.

And for good reason. When tech investors are looking for the next 1,000x Amazon, the difference between 1.5% and 3.5% annual inflation seems irrelevant.

But tiny changes have a habit of upending stock markets. My heart goes out to Cathie Wood, who slapped a $3,000 price target on Tesla just as the carmaker’s share price was plummeting. (It’s down 32% from its January highs). When discount rates are so low, minor changes have an outsized effect on the value of future cash flows.

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But Reddit investors already knew that, whether they said it or not.

Since mid-January, investors have piled into value reopening stocks like GameStop (NYSE:GME) and AMC (NYSE:AMC). Consumer discretionary stocks have outperformed consumer staples by an almost 2-to-1 ratio.

As the economic cycle moves toward rate-rising stages, there’s another deep-value sector that typically wins: basic materials.

Today, let’s take a look at the Moonshots from that world.

Rising Stars: Metals, Mining and Moonshots

Most investors barely think twice about the down-and-dirty companies that dig up stuff from the ground. After all, these basic material companies are usually money-pits of capital expenditure.

But these highly leveraged miners can make phenomenal Moonshot investments … if they’re bought at the right price.

Shares in bankrupt Peabody Energy (NYSE:BTU) — my top pick for our office Christmas stock-picking competition — tripled last winter after the coal mining firm came to an agreement with creditors. Copper/gold miners Comstock (NYSE:CRK) and Filo Mining (OTCMKTS:FLMMF)have gone from penny stocks to winners. (In other words, make sure you pick me for your stock-picking team next year!)

That’s because mining companies are extraordinarily sensitive to commodity prices. When you’re earning 15% gross margins, minor price increases can double, triple or 10x your profits.

Some firms have already started seeing the windfall. With steel prices 90% higher than pre-pandemic levels, analysts now expect U.S. Steel (X) to generate $2.9 billion in EBIT profits this year. That’s 35 times higher than its 2019 $81 million profits! It’s hard to overemphasize the effects of price increases for firms with massive fixed costs.

Commodity prices have risen far beyond pre-pandemic levels

Redditors have already jumped in. Cleveland-Cliffs (NYSE:CLF) — formerly known as Cliffs Natural Resources — is up 65% since March. Clean Energy Fuels (NASDAQ:CLNE) is up 50% since May.

None of these firms are particularly strong long-term investments since high capital costs reduce a firm’s return on invested capital. The average U.S. metals and mining firm generates less than a third of the S&P 500’s median ROIC, according to data from Thompson Reuters. Firms like Glencore (OTCMKTS:GLNCY) virtually ignore their mining operations to focus on trading and marketing. (One can argue most Bitcoin miners also do the same thing).

But basic material companies can also gain the most when investors are cycling from panic to mania. These are firms that can benefit from inflation, rather than suffer.

In today’s list, I’ve scored basic materials companies with 1) low gross margins, 2) cheap prices and 3) high momentum. Steel firms make up half of the U.S. stock list, while mining firms make up more of international*.

Several firms stand out. My old favorite, Peabody Energy, makes #2 on the list, as does Arch Resources (NYSE:ARCH) and penny stock Hallador Energy (NASDAQ:HNRG) for coal. Of these, Hallador’s cheap price-per-share makes it the most tempting Moonshot of the three.

In a similar vein (pardon the pun), Synalloy (NASDAQ:SYNL) and Alpha Metallurgical Resources (NYSE:AMR) have reasonably low starting prices for the enterprising Moonshot investor.

Others on the list will have steadier upside. Verso (NYSE:VRS) is a potential buyout candidate in the slowly consolidating world of paper products. If it does, it will join Domtar (NYSE:UFS) and Georgia Pacific in paper companies going private.

* Please send us a request if you’d like the international list

Falling to Earth: Bitcoin Miners

Speaking of mining, one segment I haven’t heard from recently?

Second-tier Bitcoin miners.

These firms — which include Ebang (NASDAQ:EBON) and SOS Limited (NYSE:SOS) — are off between 75% to 85% from their peaks. Better-known names, by comparison, are down less.

Bitcoin (CCC:BTC-USD): down 37% Marathon Patent Group (NASDAQ:MARA): down 48% Riot Blockchain (NASDAQ:RIOT): down 55%

Why the difference between the haves and have-nots? (assuming that you can call losing 55% a “have”…)

That’s because when it comes to mining Bitcoin, it’s a winner-take-all game; there’s no reward for completing a block in second place.

Ebang, a second-tier mining rig producer, has since fallen far behind #1 Bitmain. The laggard’s flagship model, the E12, sells for a tenth of Bitmain’s A19 price despite having half of its power efficiency.

SOS Limited is also starting to feel the burn. I had written my “breakup letter” to the company right when short sellers Hindenburg and Culper Research issued scathing reports about fraud. The company has lost another half of its value since then.

These firms *will* win if Bitcoin prices come roaring back — much like real-world metals and mining, cryptocurrency miners are leveraged plays on the underlying asset prices. (That’s why it was so strange for Marathon to buy $150 million of Bitcoin in January).

But those looking for better Moonshots need to take an all-or-nothing approach. Rather than settle for these middling companies, I prefer going with 1) high-momentum altcoins, or 2) truly dirt-cheap Bitcoin miners.

High momentum altcoins of the week:

AMP (CCC:AMP-USD)- an Ethereum-based digital asset token on the Flexa network. Its listing on Coinbase this week has pushed the crypto into the top-30 by market cap.
Shiba Inu (CCC:SHIB-USD)- a “next Dogecoin” token takes off again with a 50% rise this week.
SafeMoon (CCC:SAFEMOON-USD)- its cult-like following apparently still considers the developer’s six-figure withdrawals a cost of membership.

Dirt-cheap Bitcoin miners of the week:

Dmg Blockchain (OTCMKTS:DMGGF)- the Canadian-based penny stock has 3,600 ASIC miners on order. The August delivery date makes the firm not only an option, but also a futures contract on Bitcoin prices.

Hello Pal International (OTCMKTS:HLLPF)- another Canadian-based penny stock. This time, it’s a failed social-media firm looking to become the next big Dogecoin miner.

By the numbers: The Cycles of Metals and Mining

177,500 Number of Americans employed by coal companies in 1985. That year, the U.S. produced around 850 million short tons across 3,355 mines. 42,000 Americans employed by coal companies in 2021. The U.S. now only has around 600 operational mines. 79% Percentage of Americans who favor developing alternative energy sources 70% Approximate amount of Bitcoin mining that relies on fossil fuels, according to data scientist Alex de Vries

Interesting Reads: Memes, Private Investing, and Self-Driving Trucks

After rising 40% this week, a self-driving truck company could still gain more. That’s according to research done by Luke Lango and his team.

Bret Kenwell takes a shot at identifying the eight Reddit stocks that could be the next big meme.

Jeff Remsburg asks investing guru Cody Shirk about how private investing turned a throwaway $5,000 investment into $180,000.

I have to admit: I doubt AMC could rise beyond $75. Mark Hake begs to disagree, with a cash-flow model that pins the movie theater company at almost $80.

Closing Thoughts: Here We Go Again … Again

People tend to learn from their mistakes. I, for one, now know that space suit helmets don’t fit in airplane overhead bins.

But the stock market tends to challenge our collective memories.

In the case of basic materials, investors tend to remember only the bad times. Mental images of shuttered coal plants and steel factories get burned into our minds. So too, does losing a bunch of money.

That means it’s occasionally possible to find $10 stocks selling for pennies. Much like bankrupt Peabody Energy, these ugly ducklings will make you think “why on earth would anyone buy such a thing?”

As every contrarian investor knows, however, when the crowd is running in a certain direction, it’s often wise to stop and see what treasures they’ve left behind.

Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Now, in a new report, he’s naming 17 of his favorite Reddit penny stocks. Claim your FREE COPY here!

On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.

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The post Playing the Inflation Game with Moonshots appeared first on InvestorPlace.

Excavator. Earth-Moving Heavy Equipment Construction side. Excavator on the construction side with a pile of land on the background. An Excavators are heavy construction equipment consisting of a boom, dipper, bucket and cab on a rotating platform known as the house. — China’s National Food and Strategic Reserves Administration said the move would ensure the supply and price stability of bulk commodities. Photo: Getty

Mining stocks fell on Wednesday after China's announcement to release metal reserves to curb commodity prices put miners under pressure.

Major mining stocks weighed heavy on the FTSE 100 (^FTSE) after falling on the news. Rio Tinto (RIO.L) declined as much as 0.9% and is currently trading 0.7% lower.

Anglo American (AAL.L) dropped 2% and Antofagasta (ANTO.L) was down 1.5%, Glencore (GLEN.L) crashed 2.8% and Evraz (EVR.L) declined 1.5%. BHP Group (BHP.L) also lost ground, dropping 1.1%.

"With China having driven much of the upside seen in global commodity prices over the past year, their recent efforts aimed at easing the price pressures have clearly caused major ripples throughout the sector," said Joshua Mahony, senior market analyst at IG.

China said it would release the country's reserves of major industrial metals, including copper, aluminium and zinc in batches "in the near future".

The country's stockpiling body – China’s National Food and Strategic Reserves Administration – said the move would ensure the supply and price stability of bulk commodities.

Rio Tinto shares fell as much as 0.9% on the news and are currently down 0.7%. Chart: Yahoo Finance

The reserves will be released to non-ferrous metal processing and manufacturing firms via a public bidding process. It did not specify on quantities of metal to be sold, the auction process or which manufacturers will be allowed to bid.

It came as Chinese industrial data released on Wednesday showed production grew at a less than expected rates in May as chip shortages dragged down car production.

Industrial output grew at 8.8% year-on-year in May 2021, against expectations of 9.2% growth, according to data from the National Bureau of Statistics (NBS). Production was hit by a rise in COVID infections in Guandong province and fresh restrictions have impacted a number of electronic manufacturing plants located in the region, especially chips and semiconductors.

"The declines in Chinese industrial production seen today highlight the pressure put on economic growth by rising input prices," said IG analyst Joshua Mahony. "With the Chinese announcing that they will start to periodically release reserves of aluminium, copper, and zinc, we are seeing that the country clearly has intentions to do all it can to quell the rise in commodity prices."

The State Council said in May that it would take measures to ensure supply and stable prices for commodities, and regulators had previously warned it would adopt a zero-tolerance policy to market manipulation or hoarding of metals.

The world's largest metals consumer has been struggling to tame a surge in metal prices this year fuelled by a post-COVID economic recovery, ample global liquidity and speculative buying that has dented manufacturers’ margins.

Watch: Could mining make a comeback in Cornwall?

MELBOURNE (Reuters) -BHP Group expects to present its board with a decision on whether to proceed with its Jansen potash project in Canada in a few months' time – rather than mid-year – after choosing between two port options, an executive said on Thursday.

The world's biggest miner has estimated the project in Saskatchewan province would cost up to $5.7 billion in its first phase. The project offers diversification into agriculture markets given that potash is a key element in plant nutrition that also makes crops more drought resistant.

"We are considering two options in terms of the port. One is a commercial option at the port of Vancouver, one is a greenfield option," said Ragnar Udd, president of BHP's Minerals America.

"We would like to have those locked in before we take them to the board," he said.

"We continue to expect that this (decision) will occur in the next, coming few months."

The miner expects the project will take five years to develop and have an annual production capacity of around 4.4 million tonnes of potash in its first phase. It will have capacity for an additional 12 million tonnes in stages thereafter for a life of 100 years.

Udd was speaking to investors about the outlook for the potash market, for which BHP expects demand to catch up with supply by late this decade or early next.

BHP estimated global production of potash was 76 million tonnes (Mt) in 2020, which could rise to 86 Mt when factoring in latent capacity.

It expects demand to grow by 15 Mt to around 105 Mt by 2040 or 1.5% to 3% a year, along with the global population and pressure to improve farming yields given limited land supply.

BHP sees operational expenditure at the Jansen potash mine at $100 per tonne and sustaining capital expenditure at $15 per tonne. It sees incentive pricing for new projects at $300 to $500 a tonne, with Canada the main supplier.

(Reporting by Melanie Burton; Editing by Richard Pullin and Christopher Cushing)

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* Please send us a request if you’d like the international list

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