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(Adds quote from Samarco in paragraph 9)

May 31 (Reuters) – Brazilian miner Vale said late on Wednesday night it had entered into a binding deal on the parameters for a planned debt restructuring at Samarco , a joint venture it shares with miner BHP Group .

Vale said it had agreed on the deal with Samarco, BHP Billiton Brasil and certain creditors that hold more than 50% of Samarco's notes and unsecured bank debt.

The entire restructuring plan still needs approval from the bankruptcy court and the creditors.

In a securities filing, Vale said Samarco should emerge from the recovery process with a "lean capital structure" under the terms agreed and that payments to its creditors will be made over time, in line with Samarco's cash flow and ramp-up of operations.

"Samarco's contribution to fund the reparation will be capped from 2024 to 2030 at $1 billion," Vale said, adding that additional contributions from the joint venture would depend on "excess cash flow" it generates.

The remaining reparation balance should be equally shared between Vale and BHP, it said.

Separately, Samarco restructuring director Luiz Fabiano Saragiotto said all parties had made efforts to reach the current agreement, and that "with important concessions, this could allow for a balanced and lasting plan."

Samarco has for years struggled to reach an agreement with its creditors, who rejected Samarco's initial recovery plan in April last year.

Samarco's debt problems stem from the collapse of an iron ore tailing dam in the southeastern city of Mariana, which killed 19 people and severely polluted the Doce River with mining waste. (Reporting by Roberto Samora and Peter Frontini; Writing by Carolina Pulice; Editing by Sarah Morland and Tom Hogue)

May 31 (Reuters) – Brazilian miner Vale said on Wednesday night it had entered into a binding deal on the parameters for a planned debt restructuring at Samarco , a joint venture it shares with miner BHP Group .

Vale said it had agreed the deal with Samarco, BHP Billiton Brasil and certain creditors. (Reporting by Roberto Samora and Peter Frontini; Writing by Carolina Pulice; Editing by Sarah Morland)

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about… and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Southern Copper Corporation (NYSE:SCCO) does carry debt. But is this debt a concern to shareholders?

When Is Debt A Problem?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.

View our latest analysis for Southern Copper

What Is Southern Copper's Debt?

The image below, which you can click on for greater detail, shows that Southern Copper had debt of US$6.25b at the end of March 2023, a reduction from US$6.55b over a year. On the flip side, it has US$2.44b in cash leading to net debt of about US$3.81b.

debt-equity-history-analysisA Look At Southern Copper's Liabilities

The latest balance sheet data shows that Southern Copper had liabilities of US$1.25b due within a year, and liabilities of US$7.89b falling due after that. On the other hand, it had cash of US$2.44b and US$1.33b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$5.37b.

Given Southern Copper has a humongous market capitalization of US$51.8b, it's hard to believe these liabilities pose much threat. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward.

In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.

Southern Copper has a low net debt to EBITDA ratio of only 0.74. And its EBIT covers its interest expense a whopping 15.2 times over. So we're pretty relaxed about its super-conservative use of debt. In fact Southern Copper's saving grace is its low debt levels, because its EBIT has tanked 30% in the last twelve months. When it comes to paying off debt, falling earnings are no more useful than sugary sodas are for your health. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Southern Copper can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. Over the most recent three years, Southern Copper recorded free cash flow worth 56% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.

Our View

Southern Copper's EBIT growth rate was a real negative on this analysis, although the other factors we considered were considerably better. There's no doubt that its ability to to cover its interest expense with its EBIT is pretty flash. When we consider all the elements mentioned above, it seems to us that Southern Copper is managing its debt quite well. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. These risks can be hard to spot. Every company has them, and we've spotted 3 warning signs for Southern Copper (of which 2 are a bit unpleasant!) you should know about.

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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BHP Group Limited

Laguna Seca concentrator at Escondida

By using real-time plant data from the concentrators in combination with AI-based recommendations, the concentrator operators at Escondida will have the ability to adjust operational variables that affect ore processing and grade recovery.

MELBOURNE, Australia, May 30, 2023 (GLOBE NEWSWIRE) — A new collaboration between BHP and Microsoft has used artificial intelligence and machine learning with the aim of improving copper recovery at the world’s largest copper mine.

The use of new digital technology to optimise concentrator performance at BHP’s Escondida operation in Chile is expected to improve copper recovery.

BHP Chief Technical Officer Laura Tyler said by augmenting new digital technology capabilities with new ways of working, the team at Escondida is well-positioned to generate more value from an existing resource.

“We expect the next big wave in mining to come from the advanced use of digital technologies. As grades decline at existing copper mines and fewer new economic discoveries are made, next-generation technologies like artificial intelligence, machine learning and data analytics will need to be used to unlock more production and value from our existing mines,” she said.

BHP estimates the world would need to double the amount of copper produced over the next 30 years, relative to the past 30, to keep pace with the development of decarbonisation technology such as electric vehicles, offshore wind and solar farms assumed under its 1.5 degree scenario1.

“We are excited to partner with BHP on this transformative project that demonstrates the power of AI, machine learning and cloud technologies,” said John Montgomery, CVP, AI Platform at Microsoft.

By using real-time plant data from the concentrators in combination with AI-based recommendations from Microsoft’s Azure platform, the concentrator operators at Escondida will have the ability to adjust operational variables that affect ore processing and grade recovery.

BHP is a top three global producer of copper and has the largest copper endowment of any company globally2. BHP has operated Escondida, an open-cut mine located in the Atacama Desert in the Antofagasta Region of northern Chile, for over 30 years.

Escondida produces over one million metric tonnes of copper per annum. The concentrator circuit is responsible for extracting, floating and collecting the copper mineral from crushed and milled ore.

Laguna Seca concentrator at Escondida

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/125d396c-04fa-40f3-9097-ea07a28432a3

BHP media contacts

Australia:Josie BrophyMobile: 0417 622 839Email: josephine.brophy@bhp.com

Chile:Renata FernándezMobile: +56 9 82295357Email: renata.fernandez@bhp.com

1 For information about the assumptions, outputs and limitations of this 1.5°C scenario refer to the BHP Climate Change Report 2020 available at bhp.com.2 Based on ownership interest. Peers include: Anglo American, Antofagasta, Codelco, First Quantum Minerals, Freeport, Glencore, Rio Tinto, Southern Copper and Teck. Source peers: Wood Mackenzie Ltd, Q1 2022.

MELBOURNE (Reuters) – BHP Group has teamed up with Microsoft Corp to improve copper recovery from its Escondida mine in Chile, the world's biggest copper mine, by using machine learning and artificial intelligence, it said on Tuesday.

BHP estimates the world needs to double the amount of copper produced over the next 30 years to keep pace with the development of decarbonisation technology such as electric vehicles, offshore wind and solar farms.

Finding and building new mines is costly, difficult and can take upwards of a decade so miners are looking to next generation technologies to reap more metal out of existing mines and processes.

"We expect the next big wave in mining to come from the advanced use of digital technologies" BHP Chief Technical Officer Laura Tyler said in the company statement.

Using real-time data from plants that process ore in combination with AI-based recommendations from Microsoft’s Azure platform, plant operators will have the ability to adjust variables that affect ore processing and grade recovery, BHP said.

BHP, the world's biggest miner, is the majority owner of Escondida and operates the mine with partners Rio Tinto, and Japan's JECO Corp. Escondida produced more than 1 million tonnes of copper during the last financial year ending in June.

(Reporting by Melanie Burton; Editing by Christian Schmollinger)

CALGARY, AB, May 30, 2023 /CNW/ – Uravan Minerals Inc. ("Uravan" or the "Company") (TSXV: UVN) held its Annual General and Special Meeting of shareholders on May 23, 2023, for the financial year ended December 31, 2022 (the "Meeting"). At the Meeting the shareholders passed, among other things, an ordinary resolution approving the Company's acquisition of Nuclear Fuels Inc. ("Nuclear Fuels") (the "Transaction") as contemplated in the Business Combination Agreement dated April 19, 2023 (the "Definitive Agreement"), announced in a press release May 8, 2023.

Summary of the Transaction

The Transaction, as approved by the shareholders at the Company's Meeting, includes:

the acquisition of all of the outstanding shares of Nuclear Fuels in exchange for 41,750,225 post-consolidated common shares of the Company. It is expected that shareholders of Nuclear Fuels will hold an aggregate of approximately 90.4% of the Resulting Issuer's common shares, with current shareholders of the Company holding the remaining the remaining 9.6%.
a name change from Uravan Minerals Inc. to Nuclear Fuels Inc.,
a share consolidation of the Company's Common Shares on the basis of one existing common share for each eight-tenths (0.8) of one post-consolidation common share,
the continuation of the Company from Alberta to British Columbia, and
the listing of the common shares of the Company following completion of the Transaction (the "Resulting Issuer") on the Canadian Securities Exchange ("CSE"), and corresponding delisting from the TSX Venture Exchange ("TSXV").

Details of the Transaction between Uravan and Nuclear Fuels are set forth in the Company's Management Information Circular, which can be viewed, along with the Definitive Agreement at the Company's website: www.uravanminerals.com and/or the Company's filings at www.sedar.com.

The Definitive Agreement provides that on closing of the Transaction the board of directors of the Resulting Issuer (Nuclear Fuels) will be comprised of Michael Collins, William Sheriff, David Miller, Eugene Spiering and Larry Lahusen. In addition, Monty Sutton and Jacqueline Collins have agreed to act as the Chief Financial Officer and the Corporate Secretary of the Resulting Issuer (Nuclear Fuels), respectively.

Following completion of the Transaction, enCore Energy US Corp, a wholly owned subsidiary of enCore Energy Corp. (NYSE:EU, TSXV:EU) will hold approximately 19.9% of the Resulting Issuer (Nuclear Fuels).

Trading in the Common Shares of Uravan were halted in connection with the announcement of the Transaction and will remain halted until completion of the Transaction and listing of the Resulting Issuer (Nuclear Fuels) on the CSE, or until termination of the Transaction. Closing of the Transaction is subject to the approval of the listing of the common shares of the Company on the CSE. There can be no assurance that the Transaction will be completed as proposed or at all. The Transaction between the Company and Nuclear Fuels was negotiated at arm's length.

Information Regarding Nuclear Fuels

Nuclear Fuels was incorporated on May 25, 2022, and is focused on the exploration for critical metals and natural uranium occurrences. Nuclear Fuels owns two wholly owned subsidiaries, being: Hydro Restoration Corporation incorporated in the State of Delaware, which holds the Kaycee uranium property in Johnson County, Wyoming and the Bootheel uranium project in Albany County, Wyoming; and Belt Line Resources, Inc. incorporated in the State of Texas, which holds the Moonshine Springs uranium property in Mohave County, Arizona. Nuclear Fuels also holds an option to acquire the following properties: LAB Critical Metals project in Newfoundland and Labrador and Hightest Bootheel uranium property in Albany County, Wyoming.

Nuclear Fuels is well funded with approximate cash holdings of $7 million (Canadian Dollars).

Following completion of the Transaction, the business of the Resulting Issuer (Nuclear Fuels) is anticipated to be focused on the advancement of the LAB Critical Metals Project and the Kaycee Property. The Resulting Issuer (Nuclear Fuels) intends to review potential exploration opportunities on its other properties and actively investigate other potential uranium acquisitions. Further information on Nuclear Fuels' current project holdings is available in the Company's Management Information Circular.

Completion of the Transaction is subject to a number of conditions, including but not limited to approval for listing of the resulting company on the CSE. There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or listing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.

Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in the polices of the TSX Venture Exchange) has approved or disapproved of the contents of this press release

SOURCE Uravan Minerals Inc.

Cision

View original content: http://www.newswire.ca/en/releases/archive/May2023/30/c6952.html

BHP Group BHP has collaborated with Microsoft MSFT to use new digital technology such as Artificial Intelligence, machine learning and cloud technologies to improve copper recovery at the Escondida operation in Chile.The Escondida mine is the world's largest producer of copper concentrates and cathodes. BHP owns 57.5% of the mine while the remaining stake is held by Rio Tinto plc RIO (30%) and Japan-based JECO Corp (12.5%). Escondida’s two pits feed three concentrator plants, as well as two leaching operations (oxide and sulphide). It produced more than 1 million metric tons of copper per year. The concentrator circuit is responsible for extracting, floating and collecting the copper mineral from crushed and milled ore.Through this collaboration, by using real-time plant data from the concentrators combined with AI-based recommendations from Microsoft’s Azure platform, the concentrator operators at Escondida will now be able to adjust operational variables that affect ore processing and grade recovery. Mining is a long, complex and capital-intensive process. Significant exploration and development to evaluate the size of the deposit, followed by the assessment of ways to extract and process the ore efficiently, safely and responsibly, precede actual mining.Finding and building new mines are costly as well as difficult and can take more than a decade. With declining grades at existing copper mines and the lack of new economic and promising discoveries, miners are resorting to next-generation technologies like artificial intelligence, machine learning and data analytics to boost production and value from the existing mines.Copper is the third most consumed industrial metal in the world. It is expected to play a crucial role in the achievement of global clean energy transition. The increasing global awareness regarding cleaner energy and the surge in electric car sales will be a key catalyst for copper demand in the long term. The red metal is an essential component in EVs and is utilized in electric motors, batteries, inverters and wiring. According to the International Copper Association (“ICA”), while conventional cars contain 18 pounds to 49 pounds of copper, plug-in hybrid electric vehicles use 132 pounds of copper and battery electric vehicles contain 183 pounds of the metal.

BHP estimates that over the next three decades, the global copper output has to double compared to the past 30 years to meet the surging requirement of the metal stemming from global decarbonization efforts such as electric vehicles, offshore wind and solar farms. BHP and other miners like Rio Tinto and Southern Copper SCCO to name a few, are thus trying to boost their capacity to capitalize on this trend. Southern Copper's Michiquillay project is expected to become one of Peru's largest copper mines and will produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years and at a competitive cash-cost. Production is expected to commence by 2032. The Los Chancas project located in Apurimac, Peru is a copper and molybdenum porphyry deposit. The project envisions an open-pit mine with a combined operation of the concentrator and SX-EW processes to produce 130,000 tons of copper and 7,500 tons of molybdenum annually. The project is expected to commence in 2030.

Price Performance

BHP Group's shares have fallen 20.2% over the past year, compared with the industry’s 25.2% decline.

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BHP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. To wit, the BHP Group share price has climbed 29% in five years, easily topping the market return of 14% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 7.5% , including dividends .

Although BHP Group has shed AU$7.1b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for BHP Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, BHP Group managed to grow its earnings per share at 31% a year. This EPS growth is higher than the 5% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.74.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth

We consider it positive that insiders have made significant purchases in the last year. 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 BHP Group's 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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of BHP Group, it has a TSR of 116% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that BHP Group has rewarded shareholders with a total shareholder return of 7.5% in the last twelve months. That's including the dividend. Having said that, the five-year TSR of 17% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand BHP Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for BHP Group (of which 1 is significant!) you should know about.

BHP Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in Southern Copper's (NYSE:SCCO) returns on capital, so let's have a look.

Return On Capital Employed (ROCE): What Is It?

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Southern Copper, this is the formula:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.27 = US$4.3b ÷ (US$17b – US$1.2b) (Based on the trailing twelve months to March 2023).

Thus, Southern Copper has an ROCE of 27%. That's a fantastic return and not only that, it outpaces the average of 12% earned by companies in a similar industry.

Check out our latest analysis for Southern Copper

roce

Above you can see how the current ROCE for Southern Copper compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.

The Trend Of ROCE

Southern Copper is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 27%. The amount of capital employed has increased too, by 25%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.

The Bottom Line

In summary, it's great to see that Southern Copper can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And with a respectable 76% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue.

Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 4 warning signs for Southern Copper (of which 2 make us uncomfortable!) that you should know about.

If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here.

Brisbane, Queensland, Australia–(Newsfile Corp. – May 26, 2023) – Graphene Manufacturing Group Ltd. (TSXV: GMG) ("GMG" or the "Company") is pleased to provide an update as to relevant changes following the recent Battery Joint Development Agreement (JDA) with Rio Tinto (17th May 2023) and the growing sales of Energy Saving products. These changes are designed to further align development activities and support the progression of the Battery JDA and the ongoing expansion of Thermal-XR sales following the recently announced distribution agreements (24th May 2023).

The Company had been working in parallel to progress its Graphene Aluminium Ion Battery technically while also seeking feedback from customers as to the highest priority applications. It became clear that pouch cell, rather than coin cell, batteries were of greatest interest to potential key customers. It is also clear that the progression of the battery from the current Battery Technology Readiness Level (BTRL) Level 2-3, (Scientific Proof of Concept into Electrochemical Development) could be accelerated by having key potential customer partners help define operating and design characteristics.

Figure 1To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8082/167657_6db1225214b69ae7_001full.jpg

The JDA with Rio Tinto crystalises both elements of obtaining feedback from customers and progressing the battery's technical development. It further provides a clear development roadmap including use specifications, development targets. In the battery industry it typically takes 3 years or more to move from Phase 1 to Phase 3 when using existing battery production manufacturing systems, materials and equipment as GMG expects to utilise.

GMG is currently making single layer pouch cells to proceed to a 5 layer pouch cell testing and expects to have a >25 Layer Pouch Cell Prototype by H1 2024.

Figure 2To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8082/167657_gmg2en.jpg

In the context of this strategic move, the Company is aligning its organisation by having all scientific, product development and operations teams combined under the Chief Operating Officer. The mandate for the sale of all products is now the responsibility of the General Manager Sales. This will provide a stronger battery deep science to product performance linkage, prioritise activities and leverage learning across all product performance and also a streamlined engagement with customers with a single point of call for all products.

In addition, the Chief Financial Officer, Frederick Kotzee, after leading a successful raise last year and supporting the company's strategic steps of establishing sales and selecting a battery development focus, has decided to leave the company and resign as a Director due to a desire to move back to the resources sector and/or more flexible work arrangements effective on 31 July 2023 and hence the company has commenced an executive search for his replacement. We thank Frederick for all his work to get us into our current position over the previous year and we wish him well in his future endeavours.

The Company has also recently secured an additional 1,200 square metres of laboratory, storage and office space adjacent to the existing factory, to support the increasing analysis and development work needed for ongoing battery development. The additional facilities will also improve logistics for production, storage and dispatch of anticipated TXR and Lubricants sales, and support the technical development of potential new applications for energy saving TXR and Lubricants.

The previously announced upgraded, expanded and relocated Phase 1 graphene manufacturing project is underway, although completion is expected to be delayed until the second half of 2023. Costs have also increased to around A$2m, as a result of inflation and some scope changes. The Company is also considering further upgrade to its Battery Development Centre (BDC) and related equipment, including any relevant needs arising from the Rio Tinto JDA.

GMG's 4 critical business objectives remain to:

Produce Graphene and improve/scale the production process

Build Revenue from Energy Savings Products

Develop Next-Generation Battery

Develop Supply Chain, Partners & Project Execution Capability

About GMG

GMG is a disruptive Australian-based clean-tech 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, 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 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 lubricant oil and performance enhanced HVAC-R coating system.

For further information please contact:

Craig Nicol, Chief Executive Officer & Managing Director of the Company at craig.nicol@graphenemg.com, +61 415 445 223
Leo Karabelas at Focus Communications Investor Relations, leo@fcir.ca, +1 647 689 6041

www.graphenemg.com

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 news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding sales growth in the Company's energy saving products including Thermal-XR, market demand for the Company's products, the Company's focus on developing certain products, the value of the JDA including its impact on progressing the battery's technical development generally and along the BTRL, the advantages of the strategic realignment of the organisation, and the expected benefits of the additional facilities on battery development and the production and sales of TXR and lubricants.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things that the JDA will not result in the benefits management expects, that the Company's products will not develop as expected, that the impact of the JDA and the partnership with Rio Tinto will differ from management's expectations, that the strategic realignment of the organisation will not result in the advantages management expects, that the additional facilities will not enable improved production and sales of TXR and lubricants, changes to regional and global market trends, that the Company will be unable to research, develop and produce certain products and technologies, and risks related to the deployment of the Company's resources.

In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, assumptions regarding the Company's development of certain products, the market demand for the Company's products, the JDA and the expected benefits thereof, the advantages that will be derived from the strategic realignment of the organisation, the impact of the additional facilities acquired and its role in developing the Company's products and enabling production and sale of said products, and the Company's ability to research, develop and test its products within anticipated timelines.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167657

(Bloomberg) — BHP Group Ltd. is confident China’s troubled property market will turn around in coming months, despite gloomy economic signals pushing iron ore and copper prices back to levels last seen during the Covid Zero era.

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Secondary sales in the housing market “continue to be strong, very strong,” Vandita Pant, BHP’s chief commercial officer, said in an interview on Thursday. “We always thought sales and completions of homes will turn around first, and then new starts,” she said, adding “that trajectory is holding.”

The note of confidence from the world’s biggest miner comes after China’s economic activity disappointed expectations since strict pandemic restrictions were removed late last year, heavily impacting metals demand. The Asian powerhouse is by far the largest importer of both iron ore and copper.

Weaker-than-expected construction, particularly in the property sector, has pushed iron ore — BHP’s top export — below $100 a ton. Copper, another of its key commodities, fell below $8,000 a ton for the first time in six months this week, adding to broader gloom about the global economy.

But Pant said BHP still expects China’s metals demand “to be a source of stability in the second half, and the second half to be better than the first half,” echoing the words of Chief Executive Officer Mike Henry at the company’s half-year results in February.

The first quarter of 2023 was “better than we were expecting,” but the market got carried away in the second quarter, pushing commodity prices to unrealistic levels, Pant said. China’s economy wouldn’t feel the “full tailwind” of government stimulus measures, introduced earlier this year, until 2024, she said.

Copper futures on the London Metals Exchange edged up 0.4% to $7,929 a ton at 12:22 p.m. in Singapore, but are still down almost 4% this week.

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Toronto, Ontario–(Newsfile Corp. – May 24, 2023) – Honey Badger Silver Inc. (TSXV: TUF) ("Honey Badger" or the "Company") is pleased to announce the closing of the second and final tranche of its previously announced non-brokered hard dollar and flow-through private placement (the "Offering"). All dollar amounts are in Canadian funds.

Hard Dollar Offering

The hard dollar component of the Offering involved the sale of units ("HD Units") at a price of $0.15 per HD Unit. Each HD Unit consists of one common share of the Company and one half of a common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the Company at a price of $0.18 for a period of 36 months from the date of closing. The proceeds from the sale of the HD Units will be used to finance closing obligations and exploration activities on the Company's Cachinal project in Chile and for general working capital purposes.

In the first tranche closing on April 11, 2023, the Company sold 5,256,668 HD Units for gross proceeds of $788,500. In the second tranche closing, the Company sold an additional 1,447,000 HD Units for additional gross proceeds of $217,050. The gross proceeds from the sale of the 6,703,668 HD Units in both closings totalled $1,005,550.

Flow-Through Offering

The flow-through component of the Offering involves the sale of units ( "FT Units") at a price of $0.16 per FT Unit. Each FT Unit consists of one common share of the Company and one half of a common share purchase warrant, with each whole warrant having the same terms as the warrants comprising the HD Units. The proceeds from the sale of the FT Units will be used to fund exploration programs on one or more of the Company's exploration properties located in Yukon, Quebec, and Nunavut that will qualify as "Canadian Exploration Expenses" and, once renounced, "flow-through mining expenditures", as those terms are defined in the Income Tax Act (Canada).

In the first tranche closing on April 11, 2023, the Company sold 1,234,375 FT Units for gross proceeds of $197,500. In the second tranche closing, the Company sold an additional 365,000 FT Units for additional gross proceeds of $58,400. The proceeds from the sale of the 1,599,375 FT Units in both closings totalled $255,900.

An insider of the Company acquired 15,000 HD Units and 15,000 FT Units in the second tranche closing for total gross proceeds of $4,650. The insider's participation in the Offering is a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemption from minority shareholder approval requirements under MI 61-101, as the fair market value of the insider's participation in the Offering does not exceed 25% of the market capitalization of the Company.

In connection with the Offering, the Company paid fees to eligible finders consisting of an aggregate of: (i) $39,921.01; and (ii) 51,940 Warrants (the "Broker Warrants"). Each Broker Warrant is exercisable by the holder to acquire one Common Share for a period of 36 months from the date of closing of the Second Tranche of the Offering at a price of C$0.18 per share.

All securities issued pursuant to the Offering are subject to a four-month statutory hold period under Canadian securities laws.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Honey Badger Silver Inc.

Honey Badger Silver is a Canadian silver company based in Toronto, Ontario, that is focused on the acquisition, development, and integration of accretive transactions of silver ounces. The Company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. With significant land holdings in southeast and south-central Yukon, including the Plata property 180 kms to the east of the Keno Hill silver district, as well as Ontario's historic Thunder Bay Silver District, Honey Badger Silver is positioning to be a top-tier silver company.

ON BEHALF OF THE BOARD

George Davis, President & CEO

Investors that are interested in further information on the Offering may also do so through the Sharechest Connector on our website at www.honeybadgersilver.com, which is an innovative solution to streamline and simplify communications with potential investors.

For more information, contact Ms. Michelle Savella for Investor Relations | msavella@honeybadgersilver.com | (604) 828-5886

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

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking information in this news release includes statements regarding: the structure and anticipated benefits of completing the acquisition of the Cachinal Project (including historical resource estimate and possible positive effects on cash-flow); and any other information herein that is not a historical fact may be "forward-looking information". Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Honey Badger to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, but are not limited to, risks relating to capital and operating costs varying significantly from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; other risks involved in the mineral exploration and development industry; and those risks set out in the Company's public documents filed on SEDAR (www.sedar.com) under Honey Badger's issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Not for distribution to U.S. news wire services or dissemination in the United States

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167407

Southern Copper (SCCO) has been beaten down lately with too much selling pressure. While the stock has lost 13.9% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.

How to Determine if a Stock is Oversold

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why SCCO Could Bounce Back Before Long

The heavy selling of SCCO shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 28.56. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for SCCO has increased 3.2%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, SCCO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

REE Automotive Ltd.

Continued growth in authorized dealer network and orders, on track for initial production and pilot deliveries by the end of 2023

TEL AVIV, Israel, May 23, 2023 (GLOBE NEWSWIRE) — REE Automotive Ltd. (NASDAQ: REE) (“REE” or the “Company”), an automotive technology leader and provider of electric vehicle (EV) platforms, today announced its financial results for the first quarter ended March 31, 2023, through a shareholder letter posted on the company’s investor relations website at https://investors.ree.auto.

The company will also hold a conference call today, May 23 at 8:30 a.m. ET. The live webcast of the conference call can be accessed on the Investors section of the Company’s website. Click here for webcast URL. For the telephone conference online registration click here.

1Q23 Highlights:

REE remains focused on zero emission Class 3-5 vehicles built on its P7 platforms; ongoing activities support previously announced planned certification completion in 2H23; initial pilot vehicle deliveries to customers targeted to begin by the end of year 2023.
Expands dealer network in the US, with eight dealers and three fleet customers, with initial orders of approximately 100 vehicles1 which are designed to meet the growing demand in part driven by the Advanced Clean Fleet (ACF) regulation. These dealers also facilitate relationships and adoption by fleets, which we believe could purchase hundreds or thousands of vehicles per year.
Company announces two-phase production road map; Phase 1 anticipates production of vehicles in the low hundreds in 2024, with breakeven gross margin on a unit level by the end of that year. Phase 2 targets production in low – mid thousands of vehicles and breakeven EBITDA by the end of 2025.
Company ended fiscal 1Q23 with liquidity of $126 million with no debt; anticipates liquidity of $65 million at year end, following the production of initial 25 P7 vehicles for internal testing and pilot deliveries.

________________________1 The Company’s order book is determined by management based on purchase orders received by the Company. The number of vehicles included in the order book as of May 22, 2023 include 76 vehicles under firm orders (i.e. binding orders) and the remainder of vehicles are of orders that are binding orders with certain additional conditions as set forth in the order.

About REEREE Automotive (Nasdaq: REE) is an automotive technology company that allows companies to build any size or shape of electric vehicle on their modular platforms. With complete design freedom, vehicles Powered by REE are equipped with the revolutionary REEcorner, which packs critical vehicle components (steering, braking, suspension, powertrain and control) into a single compact module positioned between the chassis and the wheel, enabling REE to build the industry’s flattest EV platforms with more room for passengers, cargo and batteries. REE platforms are future proofed, autonomous capable, offer a low TCO, and drastically reduce the time to market for fleets looking to electrify. To learn more visit www.ree.auto.

Contacts

InvestorsKamal HamidVP Investor Relations | REE Automotive+1 303-670-7756investors@ree.auto

MediaKeren ShemeshChief Marketing Officermedia@ree.auto

Caution About Forward-Looking StatementsThis communication includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding REE or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to plans, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “aim” “anticipate,” “appear,” “approximate,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “would”, “designed,” “target” and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements in this communication may include, among other things, statements about REE’s strategic and business plans, technology, relationships, objectives and expectations for our business, the impact of trends on and interest in our business, intellectual property or product and its future results, operations and financial performance and condition.

These forward-looking statements are based on information available as of the date of this communication and current expectations, forecasts, and assumptions. Although REE believes that the expectations reflected in forward-looking statements are reasonable, such statements involve an unknown number of risks, uncertainties, judgments, and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. These factors are difficult to predict accurately and may be beyond REE’s control. Forward-looking statements in this communication speak only as of the date made and REE undertakes no obligation to update its forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur.

Uncertainties and risk factors that could affect REE’s future performance and could cause actual results to differ include, but are not limited to: REE’s ability to commercialize its strategic plan, including its plan to successfully evaluate, produce and market its newest medium-duty electric box truck built on a P7 platform, as discussed in this press release; REE’s ability to maintain and advance relationships with current Tier 1 suppliers and strategic partners; development of REE’s advanced prototypes into marketable products; REE’s ability to grow and scale manufacturing capacity through relationships with Tier 1 suppliers; REE’s estimates of unit sales, expenses and profitability and underlying assumptions; REE’s reliance on its UK Engineering Center of Excellence for the design, validation, verification, testing and homologation of its products; REE’s limited operating history; risks associated with plans for REE’s initial commercial production; REE’s dependence on potential suppliers, some of which will be single or limited source; development of the market for commercial EVs; intense competition in the e-mobility space, including with competitors who have significantly more resources; risks related to the fact that REE is incorporated in Israel and governed by Israeli law; REE’s ability to make continued investments in its platform; the impact of the ongoing COVID-19 pandemic and any other worldwide health epidemics or outbreaks that may arise; and adverse global conditions, including macroeconomic and geopolitical uncertainty; the need to attract, train and retain highly-skilled technical workforce; changes in laws and regulations that impact REE; REE’s ability to enforce, protect and maintain intellectual property rights; REE’s ability to retain engineers and other highly qualified employees to further its goals; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 28, 2023 and in subsequent filings with the SEC.

A [sputtering recovery in China](https://www.wsj.com/articles/chinas-youth-unemployment-tops-20-amid-signs-of-stalling-recovery-cea320ef?mod=article_inline) has dragged copper prices to a five-month low, delaying one of the most widely anticipated bull runs in commodity markets.

(Bloomberg) — A top equities fund manager is backing BHP Group Ltd. and Rio Tinto Ltd., betting they can withstand softer iron-ore prices and will benefit as China’s reopening boosts demand for the commodity.

Most Read from Bloomberg

Australian producers are attractive as they have relatively low operating costs and high exposure to the mainland, the world’s largest consumer of the steel-making ingredient, according to David Wilson, who oversees the equivalent of $5.3 billion at Australia-focused First Sentier Wholesale Geared Share Fund. The fund has returned 10% this year, beating more than 90% of its peers.

Even when iron-ore prices fall, Australian producers are still highly profitable given they have a lower cost base than their global counterparts, Sydney-based Wilson said. “Over the course of this year, China will continue to reopen and that will provide a base for demand for Australian iron ore.”

The fund recently rotated out of aluminum-miner South32 Ltd. and redirected some of that capital toward Rio Tinto, he said.

Iron ore has struggled after a strong start to the year amid concern China’s recovery is losing momentum. Still, Australian miners have weathered the commodity’s gyrations better than most of their international rivals, with BHP, Rio Tinto and Fortescue Metals Group Ltd. outperforming a Bloomberg Intelligence gauge tracking producers of the commodity over the last 12 months.

Even in Australia though, price pressures are building. BHP said last month said it expects iron-ore costs to come in at the top end of its $18 to $19 per ton guidance range in the financial year to June 30, while Brazil’s Vale SA forecasts $20 to $21 per ton for 2023.

While it has recently increased holdings of iron-ore miners, the four largest holdings in Wilson’s fund remain insurer QBE Insurance Group Ltd., oil producer Santos Ltd., gaming-machine maker Aristocrat Leisure Ltd. and industrial property firm Goodman Group.

The fund’s main strategy is to invest in “economically defensive companies that have growth,” Wilson said. Australia doesn’t have “the sort of earnings or economic volatility seen elsewhere. Australia is seen as a bit more of a defensive place, including even our banks.”

Margin Pressures

The fund is underweight local lenders as slowing credit growth and margin pressure weigh on their earnings outlooks, Wilson said. Still, the nation’s lenders remain well capitalized and are unlikely to face issues with bad debts, he said, adding that the fund prefers Commonwealth Bank of Australia and National Australia Bank Ltd. to their competitors.

Read more: Aussie Bank Investors Say Best Days Are Over as Margins Squeezed

The First Sentier fund has handily beaten the benchmark S&P/ASX 200 Index this year, with the gauge rising just 2.3%.

The fund also owns technology shares such as logistics-software company Wisetech Global Ltd. and online property-listing service REA Group Ltd.

“People, when they think of tech, tend to think of obviously the US,” Wilson said. “But Australia, over a long period of time, has been able to develop quite solid tech companies.”

Most Read from Bloomberg Businessweek

Looking at Southern Copper Corporation's (NYSE:SCCO ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Southern Copper

The Last 12 Months Of Insider Transactions At Southern Copper

The Independent Director, Vicente Ariztegui Andreve, made the biggest insider sale in the last 12 months. That single transaction was for US$114k worth of shares at a price of US$76.11 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$78.65. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 25% of Vicente Ariztegui Andreve's holding. Vicente Ariztegui Andreve was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Southern Copper Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Southern Copper. In total, Independent Director Vicente Ariztegui Andreve sold US$114k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.08% of Southern Copper shares, worth about US$47m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Southern Copper Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern Copper. Be aware that Southern Copper is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored…

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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

By Mrinmay Dey

(Reuters) -Canadian copper miner Teck Resources Ltd has been approached by mining companies including Vale SA, Anglo American Plc and Freeport-McMoRan Inc to explore deals for its base metals business if a planned split of the company happens, sources close to the matter told Reuters on Sunday.

Teck has received expressions of interest from more than six mining companies, which are interested in several other transactions after the split, according to the sources.

These approaches from international miners come as the Vancouver-based miner is fending off unsolicited bids from Glencore Plc.

A spokesperson from Teck said the company does not comment on market rumours or speculation.

Freeport, Vale and Anglo American declined to comment.

Glencore on Tuesday modified its $22.5 billion all-share takeover bid for Teck to include up to $8.2 billion in cash, but Teck's board called it "largely unchanged".

Teck has repeatedly rejected Glencore's offer of merging the companies and subsequently spinning off their combined thermal and steel-making coal businesses, saying it would expose shareholders to thermal coal, oil, LNG and related sectors.

It has instead urged its investors to vote for a restructuring proposal which will see it spin off its highly polluting coal business and focus on production of copper.

Teck investors will decide on the Canadian miner's restructuring plan on April 26.

Influential proxy advisor Institutional Shareholder Services (ISS) on Thursday advised shareholders to reject Teck's restructuring plan on uncertainties and structural issues.

Large investors often follow the recommendations of proxy advisory firms including ISS and its smaller rival Glass Lewis.

The Globe and Mail first reported interest in Teck's base metals business.

(Reporting by Mrinmay Dey and Lavanya Ahire in Bengaluru; Editing by Bill Berkrot and Sandra Maler)

(Adds Freeport declined to comment)

April 16 (Reuters) – Teck Resources Ltd has been approached by a unit of Vale SA, Anglo American Plc and Freeport-McMoRan Inc to explore deals if a planned split of the company happens, The Globe and Mail reported on Sunday, citing two sources familiar with the discussions.

A vote on Teck's plan to fully separate the copper and zinc business Teck Metals from the steelmaking coal Elk Valley business is scheduled on April 26.

These approaches from international miners come as the Vancouver-based miner is fending off unsolicited bids from Glencore Plc that would involve combining and spinning off the thermal and steelmaking coal businesses of both companies.

The Swiss mining company has offered Teck shareholders 24% of the combined metals group and up to $8.2 billion in cash for those who may not want exposure to thermal coal.

Two proxy shareholder advisory firms have recommended that Teck Resources shareholders vote against the planned split.

Institutional Shareholder Services (ISS) advised shareholders to reject Teck's restructuring plan. On Saturday, Bloomberg News reported that Glass Lewis also asked Teck Resources shareholders to vote against Teck's plan to spin off its coal business.

Teck has received expressions of interest from at least half a dozen major mining companies, who are interested in various transactions post-split, the Globe and Mail added.

Teck, Freeport, Vale and Anglo American declined to comment to Reuters' request for comment. (Reporting by Lavanya Ahire in Bengaluru; Additional reporting credit by Mrinmay Dey in Bengaluru; Editing by Bill Berkrot and Sandra Maler)

By Fabian Cambero and Divya Rajagopal

SANTIAGO, April 14 (Reuters) – Lundin Mining Corp's bid for control of Chile's Caserones copper mine comes despite ongoing uncertainty over potential policy changes to royalties and taxes, an indication that investors may be regaining confidence in the world no.1 copper-producing country.

Lundin last month agreed to pay $950 million for 51% control of the mine, calling the deal "an endorsement that we believe the mining royalty and taxation discussions are trending in the right direction."

The deal caused some surprise. In the past 18 months, mining giants have been vocal about concerns in Chile. BHP Group Ltd said it might reevaluate its investments depending on new tax plans by the government, while Freeport-McMoRan Inc has said it would pause expansion plans in Chile, citing political uncertainty.

But with the outlook looking rosier for investment and global demand surging for the key green energy metal, reluctance has diminished, experts and officials say.

Chile's mining minister, Marcela Hernando, told Reuters on Thursday she felt "confident" that the concerns of the industry had been taken into account with the royalty proposals and that she had seen hints investment was starting to improve.

"What one observes are signs, you see how some investments have materialized, how a very important deal was completed a few weeks ago," she said, referring to the Caserones purchase.

"We aren't worried investments are going to be scared away."

A proposed new constitution that, among other changes, would have given the state greater control over mining was rejected by voters last September, while an ambitious tax overhaul plan was voted down by Congress in March.

Meanwhile, another government plan for new royalties on mining, currently moving through Congress, has also been tempered amid industry complaints that an increased tax burden at a time when deposits were facing decreased production would hurt the country's competitiveness.

"As the proposed bill has moderated, some companies have gotten to a risk level compatible with their investment decisions, as happened with Lundin," said Juan Carlos Guajardo, head of the Plusmining consulting agency in Santiago.

"Some companies have a more optimistic vision about the final evolution of the royalty bill, which is sparking investment decisions, but there are others that are still in 'wait-and-see' mode."

Canada-based Teck Resources has also recently boosted investment in Chile, submitting for environmental approval this year a $3 billion project to increase capacity at its Quebrada Blanca 2 mine.

But BHP said its stance on investment in Chile had not changed. Freeport did not reply to a request for comment.

Lundin said it was considering raising its stake to 70% of the mine for an additional $350 million, but that it would "continue to evaluate any potential royalty and taxation changes" as a factor in that decision.

ENVIRONMENTAL CONCERNS

Lundin's purchase from JX Nippon Mining & Metals comes at a time when companies are seeing longer delays for permits as opposition has risen from local communities. Some projects have been rejected by the state or by courts on environmental impact concerns.

Caserones, located 4,300 meters above sea level, has itself faced strikes by workers and lawsuits by farmers, who have complained about water over-extraction.

Chilean courts have since approved plans from JX Nippon to rectify environmental damage and Lundin told Reuters one of the company's "primary objectives is to minimize potential environmental impacts through implementation of environmental management controls."

The company added that its nearby Candelaria operation uses desalinated water and has a guaranteed minimum of 80% of renewably-sourced electricity.

Lundin remains confident in the future of the Caserones project, which began operations in 2014 and has annual output of 100,000 tonnes of copper. Peter Rockandel, Lundin Mining's CEO, said the firm had "no concerns" of what lay ahead in a conference call following the announcement of the deal.

The purchase is emblematic of the emerging copper industry trend of buy versus build, said Christopher LaFemina, an equity analyst at Jefferies, with falling share prices and ballooning development costs favoring purchasing, rather than constructing, new mines, even at "premium prices."

"The optimal time to pursue sizable acquisitions is now," LaFemina said in a report, adding that the window might close if investors wait for "the macro environment to improve." (Reporting by Fabian Cambero and Divya Rajagopal; editing by Alexander Villegas, Ernest Scheyder and Rosalba O'Brien)

(Bloomberg) — The key iron ore export hub of Port Hedland reopened after the biggest cyclone to hit Western Australia in at least a decade made landfall, with a major gold mine lashed by destructive winds as the storm moved inland.

Most Read from Bloomberg

Port Hedland reopened at 11 a.m. local time Friday after an inspection of the channel and berths confirmed safe operations can resume, according to Pilbara Ports Authority. BHP Group and Fortescue Metals Group Ltd. export iron ore from the harbor, which was closed on Thursday.

Severe tropical cyclone Ilsa crossed the coast overnight east of Port Hedland in a sparsely populated region as a category 5 — the strongest on the Australian scale. The storm is weakening as it tracks inland but had maintained cyclone intensity as it reached Newcrest Mining Ltd.’s Telfer gold and copper operation, which is 400 kilometers (248 miles) from the port.

Newcrest is aiming to start bringing the majority of workers back to Telfer over the weekend, pending inspections of the airstrip and village at the mine, according to a spokesperson. The company had reduced staffing at the site to a skeleton crew ahead of the cyclone.

Ilsa had weakened to a category 1 cyclone as of 2 p.m. local time on Friday, according to a notice from the Bureau of Meteorology.

The mayor of Port Hedland told the Australian Broadcasting Corp. that winds from the cyclone were “like a freight train” but the town appeared to have been spared from major damage. The owners of Pardoo Roadhouse, a tavern and gas station along the coastline, reported “great damage” to their building after riding out the storm, according to local media.

BHP will return to full operations once all vessels have safely returned to the inner harbor at Port Hedland, a spokesman said. There’s been no significant damage to the company’s sites at the port, they added.

Fortescue said no major damage has been reported across any of the company’s Pilbara operations and monitoring will continue over the coming days to assess potential flooding risk, according to a spokesperson. Some teams are commencing post-cyclone ramp up activities, the spokesperson said.

Ilsa is the sixth tropical cyclone and the strongest to make landfall in Australia this season, which runs from Nov. 1 to April 30, according to the bureau. The storm is expected to dump as much as 200 millimeters (7.8 inches) of rain in some areas on Friday.

–With assistance from Liz Yee Xing Ng and Kevin Varley.

(Updates with latest bureau notice, comments from Newcrest and BHP.)

Most Read from Bloomberg Businessweek

Southern Copper (NYSE:SCCO) has had a great run on the share market with its stock up by a significant 9.1% over the last month. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Southern Copper’s ROE.

Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company’s shareholders.

Check out our latest analysis for Southern Copper

How To Calculate Return On Equity?

The formula for ROE is:

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

So, based on the above formula, the ROE for Southern Copper is:

33% = US$2.6b ÷ US$8.1b (Based on the trailing twelve months to December 2022).

The ‘return’ is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.33 in profit.

Why Is ROE Important For Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or “retain”, we are then able to evaluate a company’s future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don’t necessarily bear these characteristics.

Southern Copper’s Earnings Growth And 33% ROE

Firstly, we acknowledge that Southern Copper has a significantly high ROE. Additionally, the company’s ROE is higher compared to the industry average of 17% which is quite remarkable. As a result, Southern Copper’s exceptional 26% net income growth seen over the past five years, doesn’t come as a surprise.

Next, on comparing Southern Copper’s net income growth with the industry, we found that the company’s reported growth is similar to the industry average growth rate of 31% in the same period.

past-earnings-growth

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company’s expected earnings growth (or decline). Doing so will help them establish if the stock’s future looks promising or ominous. If you’re wondering about Southern Copper’s’s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is Southern Copper Using Its Retained Earnings Effectively?

Southern Copper’s significant three-year median payout ratio of 83% (where it is retaining only 17% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders.

Moreover, Southern Copper is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts’ consensus data, we found that the company is expected to keep paying out approximately 74% of its profits over the next three years. As a result, Southern Copper’s ROE is not expected to change by much either, which we inferred from the analyst estimate of 29% for future ROE.

Summary

Overall, we are quite pleased with Southern Copper’s performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that’s probably a good sign. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company’s fundamentals? Click here to be taken to our analyst’s forecasts page for the company.

Yahoo Finance Live’s Rachelle Akuffo discusses the decline in stock for American Airlines.

Video Transcript

RACHELLE AKUFFO: Thank you.

All right, now for our trending ticker. Investors lowering the altitude of American Airlines on the airline’s updated profit outlook. The airline releasing updated earnings expectations for later this month that are coming short of analysts’ expectations with adjusted earnings per share between $0.01 to $0.05 versus expectations of $0.05 per share based on Bloomberg consensus.

Airlines like American, of course, particularly exposed to movements in the energy sector as the peak summer travel season looms. We see that the stock down almost about 9 and 1/2% on the day.

NORTHAMPTON, MA / ACCESSWIRE / April 12, 2023 / American Airlines:

In 1972, Bonnie Tiburzi wrote to every major airline carrier in the United States asking for a job, and every single airline turned her down, except for one. In March of 1973, American Airlines offered Bonnie a position as First Officer – making her the first woman to fly for a major commercial airline at the early age of 24.

Bonnie bravely broke barriers in the male-dominated profession and paved the path for women aviators to follow. As we celebrate 50 years since she started flying for American, we honor the women that inspired her and those she has inspired to take the controls on the flight deck.

View additional multimedia and more ESG storytelling from American Airlines on 3blmedia.com.

Contact Info:

Spokesperson: American AirlinesWebsite: https://www.3blmedia.com/profiles/american-airlinesEmail: info@3blmedia.com

SOURCE: American Airlines

View source version on accesswire.com: https://www.accesswire.com/748820/50-Years-Later-A-Trailblazer-Paved-the-Path-for-Women-on-the-Flight-Deck

In the US, Wall Street pushed higher on Wednesday after key inflation data showed a smaller-than expected rise in prices for March.

The Dow Jones (^DJI) rose 0.10% to 33,718.31 points, while the S&P 500 (^GSPC) climbed 0.57% to 4,132.50 points. The tech-heavy NASDAQ (^IXIC) also gained – by 0.82% to 12,130.15.

FTSE 100 and European markets

Across the pond, European markets and the FTSE 100 edged mostly higher as investors also turned their attention to the latest inflation data.

The FTSE 100 (^FTSE) rose 0.38% to close at 7,814, while the CAC 40 (^FCHI) in Paris finished flat at 7,387 – and in Germany, the DAX (^GDAXI) gained 0.20% to 15,686.

Stocks at the top

The top FTSE 100 risers were Frasers Group (FRAS.L), up 1.66%; Unite Group (UTG.L), up 1.24%; Weir Group (WEIR.L), up 1.21% – and Burberry (BRBY.L), up 1.21%.

In contrast, Anglo American (AAL.L) and Ocado Group (OCDO.L) were at the bottom of the basket with their shares down 1.16% and 1.15% respectively.

Asia financial markets

In Asia, Tokyo’s Nikkei 225 (^N225) rose 0.68% to 28,113 points, while the Hang Seng (^HSI) in Hong Kong fell 0.58% to 20,366. In mainland China, the Shanghai Composite (000001.SS) gained 0.24% to 3,321.67 points.

Economic data

In the US, new data showed that inflation cooled in March as the Federal Reserve’s interest rate increases showed more impact, the Labor Department reported on Wednesday.

The Consumer Price Index (CPI), a measure of the costs for goods and services, rose 0.1% for the month.The general expectation was that the CPI would have increased by 0.2% in March, as compared to a gain of 0.4% in February.

Excluding food and energy, core CPI increased 0.4%, meeting the median estimate of 0.4%.

Meanwhile, Deutsche Bank Research said in a note to clients on Wednesday that the prospect of another Fed hike was given some support by various Federal Open Market Committee speakers yesterday.

“Early in the session, New York Fed President Williams said that the Fed’s median forecast for a further rate hike was a “reasonable starting place”. And later in the session, Philadelphia Fed president Harker said that he wanted to “get rates above 5 and then sit there for a while”, which would imply at least one more 25bp move.

However, Chicago Fed president Goolsbee struck a notably more dovish tone relative to some recent speakers, saying that the Fed should “be careful about raising rates too aggressively until we see how much work the headwinds are doing for us in getting down inflation.”

Bank earnings

It’s also a big earnings week for banks, including JPMorgan (JPM), Wells Fargo (WFC), and Citi (C) – with all three due to report their first-quarter results on Friday.

The three banks were part of a consortium last month that injected some $30bn in deposits into First Republic to shore up the struggling lender.

Tina Teng, market analyst at CMC Markets, said: “Higher interest income is expected for the banks specialising in lending, such as JPMorgan Chase and Wells Fargo. However, the outlook may stay gloomy due to the bank crisis in early March. The risks will be upon reduction in deposits, increase in loan loss provisions, and decline in the capital markets.”

Oil prices

Meanwhile, US crude oil, or West Texas Intermediate (CL=F), gained 0.12% to $81.63 a barrel, while Brent crude (BZ=F) also went up – by 0.15% to $85.74 a barrel.

British pound

In currency news, the British pound fell slightly against the US dollar (GBPUSD=X) – down 0.01% to 1.24, meaning £1 will get you $1.24. Against the Euro, the British pound (GBPEUR=X) also fell – by 0.04% to 1.13.

De La Rue shares

Meanwhile, De La Rue (DLAR) shares plunged on Wednesday by over 30%, bringing its one-year loss to around 68% and its 5-year share price decline to more than 92%.

It comes after the company issued a profit warning with full-year earnings for fiscal 2023 expected to fall short of market estimates.

Victoria Scholar, head of investment at Interactive Investor, said: “2023 adjusted operating profit is now seen coming in at a mid-single digit percentage and for fiscal 2024 De La Rue forecasts a figure in the low £20m range.

“The British currency and passport maker has been suffering from weak demand for banknotes which is languishing at a 20-year low. Activist investor Crystal Amber Funds recently said the group’s turnaround plan announced three years ago is failing ‘by every measure’ and the company is ‘failing to control’ various fees paid out. The activist has also been trying to remove Kev Loosemore as Chairman but he survived a vote in December.”

Scholar also highlighted how, in recent years, De La Rue has struggled with the major loss of its British passport contract after Brexit, increased costs, supply chain woes, and a structural decline in demand for physical cash amid the rise of contactless payments and digital banking.

LVMH results

Investors will also be monitoring Luxury goods company LVMH (MC.PA). Europe’s most valuable company, which is home to brands such as Tiffany & Co, Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Sephora and Bulgari, is due to report its first-quarter sales after markets close.

Rightmove UK home sales

In other news, Rightmove (RMV.L) said the number of agreed home sales in March was just 1% below pre-pandemic levels from March 2019 but is down 18% year-on-year. A pickup in buyer demand resulted in a 10% increase in agreed sales from 2019 versus an 11% drop at the start of the year.

Victoria Scholar commented: “The market has been recovering since the turmoil around the mini-budget last year which sent mortgage rates temporarily sharply higher. Reduced asking prices have helped to generate a pickup in sales, with particular strength in the British capital thanks to strong demand from workers and overseas buyers for London apartments.

“With the housing market likely to cool further this year, and the Bank of England nearing the peak of the rate hiking cycle, we could see more buyers return to the market, as the recent headwinds which have stymied transactional activity subside.”

Watch: Tips to tackle grocery and gas prices amid inflation

Download the Yahoo Finance app, available for Apple and Android.

For Immediate Release

Chicago, IL – March 2, 2023 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2060610/which-commodity-stocks-should-be-on-your-short-list

Which Commodity Stocks Should Be on Your Short List?

Welcome to Episode #350 of the Zacks Market Edge Podcast.

(3:00) – Breaking Down Oil’s Current Performance: What Should Investors Expect Going Forward?
(11:50) – The Smart Metal: What Is Copper Telling Us About The Economy?
(16:35) – Is Steel A Good Long Term Investment?
(20:40) – What Should Investors Know About Chicken: The Wing Stop Story
(28:40) – What Commodity Trends Should You Be Keeping On Your Radar?
(32:15) – Episode Roundup: PXD, RRC, ROCC, APA, FANG, LNG, FCX, SCCO, CLF, NUE, WING, GDX, GDXJ
Podcast@Zacks.com

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey tapped the knowledge and expertise of the editor of the Zacks Commodity Innovator newsletter, Jeremy Mullin, to take a deep dive into what is going on in commodities in 2023. In 2022, commodities went on a wild ride as the Ukraine War caused many commodities to spike higher. Some, like oil, traded at 10-year highs.

But many of those commodities have since fallen back to pre-Ukraine War levels. Are there buying opportunities in some of those stocks?

5 Commodity Stocks to Watch in 2023

1. Cheniere Energy (LNG)

Cheniere Energy is a large-cap liquid natural gas producer headquartered in Houston. Earnings are expected to jump 165% in 2023 to $14.95 from $5.64.

Shares are up 22% over the last year and have recently rallied 6.6% in the last 5 sessions. Cheniere is cheap, with a forward P/E of just 10.6.

Cheniere also pays a dividend, currently yielding 1%.

Should a liquid natural gas producer like Cheniere be on your watch list?

2. Freeport-McMoran (FCX)

Freeport-McMoran is a copper producer. Copper prices came down from their Ukraine War highs but are now back over $4.00 per pound again.

Shares of Freeport-McMoran are down 13.4% over the last year but in 2023, they have rallied 8%. Freeport is trading at 20x forward earnings. It pays a dividend yielding 1.5%.

Is it time for copper and Freeport-McMoran in 2023?

3. Southern Copper Corp. (SCCO)

Southern Copper is a large cap copper producer. The Zacks Consensus Estimate for 2023 is calling for $3.40, which is down only a penny from 2022’s earnings of $3.41.

Shares of Southern Copper have rallied 22.3% year-to-date. It trades with a forward P/E of 21.

But many investors like Southern Copper because of its generous dividend, which is currently yielding 4.8%.

Should Southern Copper be on your commodities stock short list?

4. Cleveland-Cliffs Inc. (CLF)

Cleveland-Cliffs is the largest flat-rolled steel producer in North America.

Shares of Cleveland-Cliffs are up 33% year-to-date but are still cheap, with a forward P/E of 12.9. Earnings are expected to fall 47.5%, however, to $1.60 from $3.05 last year.

Cleveland-Cliffs is one of Jeremy’s favorite steel stocks.

Should Cleveland-Cliffs also be on your short list?

5. Wingstop Inc. (WING)

Wingstop operates 1950 locations worldwide. How did a restaurant chain get into a podcast about commodities? Chicken wings. The price of chicken wings has come down from 2022 highs, which is boosting Wingstop’s margins.

Shares of Wingstop are up 24.7% year-to-date. It’s not cheap, with a forward P/E of 91. Jeremy believes it can grow into the valuation, however.

Wingstop does pay a dividend, currently yielding 0.4%.

Is Wingstop a hidden commodities stock in 2023?

What Else do you Need to Know About Commodities in 2023?

Listen to this week’s podcast to find out.

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

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(Bloomberg) — A major coal port in Australia said vessels bound for China had arrived at the facility this month, adding more evidence of an easing of curbs on sales to the top consuming nation.

Most Read from Bloomberg

“There are early signs that the informal ban on Australian coal imports to China may be in the process of being removed,” Dalrymple Bay Infrastructure Ltd., which operates the world’s largest metallurgical coal export facility in Queensland, said Monday in a statement.

Coal suppliers including BHP Group Ltd. have resumed exports to China after authorities gave clearance for some purchases to restart after an easing of diplomatic tensions between the two nations. Imports by China, previously a key customer, halted in late 2020 as an informal ban was imposed following disagreements on issues including the origins of coronavirus.

China could import as much as 20 million tons of hard coking coal from Australia this year, producer Coronado Global Resources Inc. said last month.

Dalrymple Bay shipped 53.3 million tons in 2022, with Japan, South Korea, India and Europe accounting for 75% of exports, the company said in its statement.

Most Read from Bloomberg Businessweek

(Bloomberg) — A decade ago, a UK startup’s plan to build a $4 billion mine more than a mile under the North Sea caught the nation’s imagination. It became a retail shareholder sensation and promised riches for many landowners. But when the company failed to raise the last piece of financing, it all came crashing down.

Most Read from Bloomberg

For the last three years, the giant fertilizer project — which would be the UK’s biggest mine in more than four decades — has largely sat on ice, drifting from the public consciousness as its new owner Anglo American Plc figured out what to do with it.

Today it provided the answer. After taking a $1.7 billion writedown on the mine, Anglo unveiled its plans to spend almost $5 billion to bring the project into production by 2027, a decision that will likely secure thousands of jobs in one of the country’s poorest regions and become a major engine of growth for the company.

One of the world’s top mining companies, Anglo was attracted by the huge size of the deposit combined with the longer-term prospects for fertilizer demand. About 1.8 billion tons of a fertilizer called polyhalite are sitting more than 1.5 kilometers below the surface, and stretching out under the sea, which could be mined for more than 40 years. Demand for crop nutrients is expected to keep growing as a rising global population boosts food consumption.

“This resource is so unique, it’s one of a kind in terms of its size and shape,” Anglo Chief Executive Officer Duncan Wanblad said in a Bloomberg TV interview on Thursday. “We will be able to bring some very, very profitable fertilizer on to the market.”

Retail Interest

Sirius Minerals Plc, the mine’s previous owner, became a retail investor darling when it started fundraising for the project. Across the UK, regular people poured money into the company while the planned mine gained an almost cult-like following in North Yorkshire — in addition to buying shares, many locals saw the prospect of life-changing royalties on the mineral rights that fell on their land. Others simply hoped for jobs.

The overwhelming support helped Sirius win a license to build the project despite being in a National Park and overlooking the seaside town of Whitby, the setting for part of Bram Stoker’s “Dracula.”

But then Sirius ran out of money, and Anglo eventually stepped in with an offer.

While investors lost out — the takeover price was well below the heights at which many had bought their shares — Anglo’s decision to press ahead will be a major boon for the region and the wider UK. The project will likely employ more than 1,000 people once in full production and become a major exporter.

A $4 Billion Mine Was Meant to Lift Northern England. Instead Locals Lost Big

The investment in the Woodsmith project also forms part of a wider shift at the world’s biggest miners, as they retreat from fossil fuels and seek growth in commodities like fertilizers and metals that are needed for the green-energy transition.

Writedown

Anglo has written down the value of the project to reflect a change in the way it will be developed, compared with Sirius’s plans.

When Anglo bought Sirius in a half a billion dollar deal it was always likely the project would be delayed and changed. The smaller firm had been rushing to get into production as fast as possible, and Anglo has spent the last three years looking at ways to develop the project more strategically.

The result is that Anglo will now look to start production in 2027 after spending about $1 billion a year on top of the $2.6 billion it has already spent. That will allow it to target annual production of 5 million tons of fertilizer a year, with the capacity already built into crucial infrastructure such as the shafts, and to ultimately expand it to 13 million tons a year.

Polyhalite, or Poly4, is a type of potash found under the North Sea. It’s a relatively unknown type of fertilizer, so Anglo faces the additional challenge of proving how big the market will ultimately be.

Anglo’s plans also come at a time of massive volatility in global fertilizer markets. Prices spiked last year after Russia’s invasion of Ukraine threw the world’s crop-nutrient sector into disarray. While prices have since eased, the long-term outlook remains strong as the global population and its demand for food grows.

Most Read from Bloomberg Businessweek

Mining group extends cost and timeframe estimates for bringing Woodsmith project into production by 2027

A little over a year ago, Melbourne-based BHP Group Ltd., the world’s largest miner, bowed out of the highly publicized bidding war with Australian billionaire Andrew Forrest’s Wyloo Metals Pty. Ltd. for a nickel project in Ontario’s Ring of Fire region.

The tug of war between the two Australian miners over a Canadian asset included multiple bids over almost half a year before Wyloo’s $616.9-million bid in December 2021 led to the takeover of Noront Resources Ltd. — and with it the much talked about Eagle’s Nest project in northern Ontario.

Losing out to Wyloo, however, didn’t discourage BHP on planting more flags in Canada. The company has made a series of alternative investments since bowing out of the Noront auction that haven’t received as much attention, but suggests that BHP may be open to building a battery metals empire in Canada.

“Mergers and acquisition is one lever for growth but not the only lever for growth for us at all,” Rag Udd, BHP’s president of minerals for the Americas, said after the company reported its latest quarterly financials on Feb. 21. “We see Canada as a highly prospective and desirable location to actually making investments,” he added.

Rag Udd, BHP’s president of minerals for the Americas.

BHP is coming off a down year. The company said this week that revenue fell 16 per cent over the final six months of 2022 from the same period in 2021, while profit tumbled 27 per cent. Udd attributed the decline to lower prices of iron ore and copper last year and rising costs. The company’s stock dropped sharply on the news, but recovered, and is now about four per cent higher than year ago.

Still, BHP, like most miners these days, is optimistic. The demand for metals that are crucial in powering batteries and driving the transition to greener energy — primarily lithium, nickel and copper — is on the rise as more countries look to meet their climate goals. Major mining companies such as Teck Resources Ltd., Barrick Gold Corp. and Rio Tinto Ltd. have been involved in building, exploring and buying projects containing these minerals to take advantage of the boom.

Governments also want a piece of the action. Canada, for its part, is attempting to lure miners and automakers to the region through tax credits and funds in order to build its own electric vehicle industry.

We see Canada as a highly prospective and desirable location to actually making investments

Rag Udd, BHP’s president of minerals for the Americas

BHP, which already produces a vast amount of nickel and copper at mines around the world, set up an office for minerals exploration in Toronto about a year-and-half ago. The group has a special focus on metals such as copper and nickel, and the objective is to find Canadian miners with good assets and invest in them.

Over the past year, the Australian miner invested $13.6 million in a copper project run by Vancouver-based Brixton Metals Corp., renewed its exploration alliance with Montreal-based Midland Exploration Inc. and invested $100 million in Vancouver-based Filo Mining Corp., which is developing a copper-gold project on the Argentinean-Chilean border.

These investments aren’t significant, especially for a company the size of BHP, which earned a revenue of about US$65 billion in 2022, Udd acknowledged. One of the reasons BHP has taken a cautious approach to investing in green metals in Canada is because it already runs the Nickel West operations in Australia, which it says is the world’s leading nickel supplier to the battery metals market.

A tonne of nickel powder made by BHP Group sits in a warehouse at its Nickel West division, south of Perth, Australia.

However, Udd said that Canada’s recently announced critical minerals strategy makes it a “very very attractive jurisdiction” for BHP and aligns it with the “company’s priorities moving forward.”

Released in December, Canada’s first significant critical minerals strategy aims to expand exploration, speed up mining projects, tackle labour shortages, and build secure supply chains with allied nations in a bid to build its on electric vehicle industry.

While the strategy comes with a list of 31 minerals that the government has deemed as “critical,” the country will initially prioritize six: lithium, graphite, nickel, cobalt, copper and rare earth elements.

If one of the goals was to attract international investment, then the strategy could be working because Prime Minister Justin Trudeau’s government got BHP’s attention.

“As we are looking to bring new supply to the market quickly, we hope that Canada actually continues to not only focus on the critical minerals strategy but also the efficiency of the regulatory processes associated with that,” said Udd.

Ottawa knows regulation is getting in the way of investment. Jonathan Wilkinson, the natural resources minister, said repeatedly last year that he’s working on making the system more efficient. When he released the critical minerals strategy in December, he acknowledged that permits need to be granted faster, and suggested the federal and provincial governments could conduct reviews concurrently instead of consecutively.

Of course, BHP’s main focus in Canada currently isn’t on battery metals, but potash, a vital crop nutrient that is also deemed as a critical mineral by the federal government. BHP is currently pressing forward with Jansen, a $7.5-billion project 140 kilometres east of Saskatoon that will be the world’s largest potash mine once completed.

However, judging by BHP’s activities in the last year and Udd’s statements on BHP’s future in Canada, few would be surprised to see the world’s largest miner expand its interests in Canada.

“We are looking to build up on in terms of thematics around decarbonization, electrification and population growth,” Udd said. “We see these as the mega-trends that are going to play out in the next 50 years globally, and we think Canada is well positioned.”

• Email: nkarim@postmedia.com | Twitter: naimonthefield

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