MELBOURNE, Jan 31 (Reuters) – New South Wales is set to finalise an order by mid-February that will require all mining firms in Australia's biggest coal exporting state to reserve as much as 10% of their output for domestic supply.

A Department of Planning and Environment spokesperson said the government would issue final directions after talks with miners.

"The draft revised directions allow suppliers the option to provide coal from their own production or to strike an agreement from another supplier to meet their obligations under the directions," the spokesperson said.

The updated plan, disclosed last week, is designed to keep a lid on coal prices and drive down household power bills. The state last week had planned to issue the expanded order by the end of January, but has faced resistance from miners.

The department did not say how many tonnes of coal will be required.

Whitehaven Coal Chief Executive Paul Flynn has said the government appeared to be looking to secure around 3 million to 5 million tonnes, but the company was pressing the state to explain how that shortfall estimate had been determined.

Directions issued in December required a dozen coal mines that supply power plants in New South Wales to fill a shortfall in supply at a capped price of A$125 a tonne – well below the export price currently at about $265 a tonne – under a deal with the federal government.

The mines are mainly owned by Glencore Plc, Peabody Energy, New Hope Corp and Thailand's Banpu PCL .

The state now wants to spread the requirement to all the state's coal producers, including those that export all of their output, including BHP Group, Whitehaven Coal and Yancoal Australia.

BHP has said the new policy could affect its plan to keep its Mt Arthur coal mine, the state's largest single coal mine, open until 2030. (Reporting by Sonali Paul; Additional reporting by Melanie Burton; Editing by Edwina Gibbs)

Southern Copper Corporation SCCO is likely to register a year-over-year decline in earnings in its fourth-quarter 2022 results next week. Lower production levels, and a drop in copper and silver prices, as well as inflated costs, are expected to have weighed on the performance.

Q3 Results

In the last reported quarter, the company’s earnings and sales declined year over year. While revenues missed the Zacks Consensus Estimate, earnings beat the same. Over the past four quarters, SCCO surpassed earnings estimates in two quarters and missed in the other two, resulting in a negative average surprise of 5.45%.

Q4 Estimates

The Zacks Consensus Estimate for SCCO’s fourth-quarter 2022 earnings per share is pegged at 82 cents, indicating a decline of 24% from the prior-year quarter’s reported figure. The estimate has moved up 4% over the past 30 days. The consensus mark for the quarter’s revenues stands at $2.53 billion, suggesting a year-over-year decline of 10.5%.

Southern Copper Corporation Price and EPS Surprise

 

Southern Copper Corporation Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Southern Copper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings ESP: The Earnings ESP for Southern Copper is -1.83%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: Southern Copper currently sports a Zacks Rank of 1.

Key Factors

Copper accounts for more than 80% of the company’s sales. Over the past few quarters, SCCO has been witnessing lower production at its Peruvian mines due to lower ore grades. This trend is expected to have continued in 2022 and the fourth quarter was not an exception. Copper prices were on a downtrend throughout the fourth quarter, weighed down by uncertainties surrounding the global economy as new coronavirus restrictions in China affected the demand for the red metal, thus hurting prices. Prices were also impacted by the spike in energy costs and low global inventories.Silver prices have also been negatively impacted this year, weighed down by the stronger U.S. dollar, rising interest rates and sluggish growth. SCCO has also been facing higher costs for diesel and fuel, operating and repair materials, supplies, and energy, as well as higher labor costs.Overall, lower production levels, lower copper and silver prices, as well as elevated costs are expected to reflect on the company’s earnings in the to-be-reported quarter. Savings from the company’s stringent cost-control measures are likely to have negated some of the impacts.

Share Price Performance

 

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Image Source: Zacks Investment Research

 

The company’s shares have gained 16.7% over the past year compared with the industry’s 37.1% growth.

Stocks to Consider

Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.Air Products and Chemicals APD, scheduled to release fourth quarter 2022 earnings on Feb 2, has an Earnings ESP of +2.67% and currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Air Products’ fourth-quarter earnings has been revised 0.4% upward in the past 60 days. The consensus estimate for APD’s earnings for the fourth quarter is pegged at $2.73.Teck Resources TECK, expected to release fourth-quarter earnings on Feb 23, has an Earnings ESP of +3.48%.The Zacks Consensus Estimate for Teck’s fourth-quarter earnings is pegged at 94 cents. TECK currently carries a Zacks Rank of 2.Albemarle ALB, scheduled to release fourth-quarter 2022 earnings on Feb 15, has an Earnings ESP of +7.16% and a Zacks Rank of 3.The Zacks Consensus Estimate for ALB’s fourth-quarter earnings has moved north 3% in the past 60 days. The consensus mark is pegged at $7.89.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Considering Southern Copper has not realized below-30% volatility over a 50-day period in the last two years, these options appear cheap.

Southern Copper (SCCO) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this miner have returned +23.4% over the past month versus the Zacks S&P 500 composite’s +4.6% change. The Zacks Mining – Non Ferrous industry, to which Southern Copper belongs, has gained 20.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company’s business prospects usually make its stock ‘trending’ and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate Revisions

Here at Zacks, we prioritize appraising the change in the projection of a company’s future earnings over anything else. That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Southern Copper is expected to post earnings of $0.82 per share for the current quarter, representing a year-over-year change of -24.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.

The consensus earnings estimate of $3.07 for the current fiscal year indicates a year-over-year change of -30.1%. This estimate has changed +6.6% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $3.24 indicates a change of +5.8% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed +6.6%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock’s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Copper is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company’s forward 12-month consensus EPS estimate:

12 Month EPS

12-month consensus EPS estimate for SCCO _12MonthEPSChartUrl

Projected Revenue Growth

Even though a company’s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It’s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company’s potential revenue growth is crucial.

For Southern Copper, the consensus sales estimate for the current quarter of $2.53 billion indicates a year-over-year change of -10.5%. For the current and next fiscal years, $9.76 billion and $9.44 billion estimates indicate -10.8% and -3.3% changes, respectively.

Last Reported Results and Surprise History

Southern Copper reported revenues of $2.16 billion in the last reported quarter, representing a year-over-year change of -19.6%. EPS of $0.67 for the same period compares with $1.12 a year ago.

Compared to the Zacks Consensus Estimate of $2.32 billion, the reported revenues represent a surprise of -6.96%. The EPS surprise was +21.82%.

Over the last four quarters, Southern Copper surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

Valuation

Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects.

While comparing the current values of a company’s valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock’s price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Southern Copper is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

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Wall Street expects a year-over-year decline in earnings on lower revenues when Southern Copper (SCCO) reports results for the quarter ended December 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus Estimate

This miner is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of -24.1%.

Revenues are expected to be $2.53 billion, down 10.5% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 1.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core.

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Southern Copper?

For Southern Copper, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.83%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination makes it difficult to conclusively predict that Southern Copper will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Southern Copper would post earnings of $0.55 per share when it actually produced earnings of $0.67, delivering a surprise of +21.82%.

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

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Southern Copper doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Here are 3 companies under heavy accumulation this year.

Southern Copper Corp. (SCCO) Analysis

First is Southern Copper Corp. (SCCO) which develops and produces materials including copper, silver, and zinc. The stock is up a staggering 24% in 2023, but more impressive is its 60% climb the last 3 months.

Healthy institutional accumulation has likely helped lift the shares higher, which you can see below. Since November there’ve been 13 unusually large volume inflows (green bars):

Source: www.mapsignals.com

With a 12-month forward P/E of 23.2, shares could be attractive after a pullback. Additionally, a 4.6% dividend yield makes the shares attractive.

One thing is for sure, the shares have been in demand lately.

Steel Dynamics Inc. (STLD) Analysis

Next up is Steel Dynamics (STLD) which is a large manufacturer and metal recycler. At MAPsignals, we believe in following large institutional flows. With the stock gaining 10% in 2023, we believe healthy accumulation is part of the story.

Since October there’ve been 10 days where the stock jumped in price alongside outsized volumes. That can mean there’s institutional interest:

Source: www.mapsignals.com

The 12-month forward P/E is pegged at 9.5X according to FactSet. The shares pay a decent 1.3% dividend yield.

This trading action suggests investors are expecting upside for the company in 2023.

Commercial Metals Co. (CMC) Analysis

The number 3 materials firm racing higher this year is Commercial Metals Co. (CMC). This company manufactures and recycles steel and metal products. The market cap is just over $6 billion.

The stock has been an outperformer recently, jumping 7% in 2023. Notably, the shares have seen 8 large inflow signals since October:

Source: www.mapsignals.com

There’s no question the stock could be extended at these levels. However, this is one of the most in-demand materials stocks according to MAPsignals research.

Strong sector leadership could mean there’s more upside for the group in 2023.

Bottom Line

SCCO, STLD, & CMC represent 3 of the top performing materials stocks so far in 2023. Healthy institutional accumulation signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ institutional process please visit: www.mapsignals.com

Disclosure: As of the time of this writing, the author holds no positions in SCCO, STLD or CMC at the time of this writing.

This article was originally posted on FX Empire

More From FXEMPIRE:

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, the ROCE of Southern Copper (NYSE:SCCO) looks great, so lets see what the trend can tell us.

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

If you haven’t worked with ROCE before, it measures the ‘return’ (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Southern Copper is:

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

0.29 = US$4.6b ÷ (US$17b – US$1.5b) (Based on the trailing twelve months to September 2022).

Thus, Southern Copper has an ROCE of 29%. In absolute terms that’s a great return and it’s even better than the Metals and Mining industry average of 18%.

View 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’d like to see what analysts are forecasting going forward, you should check out our free report for Southern Copper.

What The Trend Of ROCE Can Tell Us

Southern Copper’s ROCE growth is quite impressive. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 70% over the last five years. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. On that front, things are looking good so it’s worth exploring what management has said about growth plans going forward.

In Conclusion…

To bring it all together, Southern Copper has done well to increase the returns it’s generating from its capital employed. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 96% return over the last five years. So given the stock has proven it has promising trends, it’s worth researching the company further to see if these trends are likely to persist.

If you want to know some of the risks facing Southern Copper we’ve found 2 warning signs (1 can’t be ignored!) that you should be aware of before investing here.

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.

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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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Rio Tinto (RIO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Rio Tinto is one of 239 individual stocks in the Basic Materials sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Rio Tinto is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for RIO's full-year earnings has moved 1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, RIO has returned 6.7% so far this year. At the same time, Basic Materials stocks have gained an average of 3.3%. As we can see, Rio Tinto is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, Southern Copper (SCCO), has outperformed the sector so far this year. The stock's year-to-date return is 24.9%.

The consensus estimate for Southern Copper's current year EPS has increased 12.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Rio Tinto belongs to the Mining – Miscellaneous industry, a group that includes 49 individual companies and currently sits at #64 in the Zacks Industry Rank. Stocks in this group have gained about 9.4% so far this year, so RIO is slightly underperforming its industry this group in terms of year-to-date returns.

Southern Copper, however, belongs to the Mining – Non Ferrous industry. Currently, this 13-stock industry is ranked #149. The industry has moved +33.3% so far this year.

Investors with an interest in Basic Materials stocks should continue to track Rio Tinto and Southern Copper. These stocks will be looking to continue their solid performance.

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David Iben put it well when he said, ‘Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.’ So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. As with many other companies Southern Copper Corporation (NYSE:SCCO) makes use of debt. But should shareholders be worried about its use of debt?

Why Does Debt Bring Risk?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can’t fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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

How Much Debt Does Southern Copper Carry?

The chart below, which you can click on for greater detail, shows that Southern Copper had US$6.55b in debt in September 2022; about the same as the year before. On the flip side, it has US$2.18b in cash leading to net debt of about US$4.37b.

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

According to the last reported balance sheet, Southern Copper had liabilities of US$1.48b due within 12 months, and liabilities of US$7.97b due beyond 12 months. On the other hand, it had cash of US$2.18b and US$1.15b worth of receivables due within a year. So its liabilities total US$6.12b more than the combination of its cash and short-term receivables.

Of course, Southern Copper has a titanic market capitalization of US$59.6b, so these liabilities are probably manageable. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.

We measure a company’s debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.

Southern Copper’s net debt is only 0.81 times its EBITDA. And its EBIT easily covers its interest expense, being 14.0 times the size. So we’re pretty relaxed about its super-conservative use of debt. But the bad news is that Southern Copper has seen its EBIT plunge 18% in the last twelve months. We think hat kind of performance, if repeated frequently, could well lead to difficulties for the stock. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Southern Copper’s ability to maintain a healthy balance sheet going forward. So if you’re focused on the future you can check out this free report showing analyst profit forecasts.

But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Over the most recent three years, Southern Copper recorded free cash flow worth 55% 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

When it comes to the balance sheet, the standout positive for Southern Copper was the fact that it seems able to cover its interest expense with its EBIT confidently. But the other factors we noted above weren’t so encouraging. In particular, EBIT growth rate gives us cold feet. Considering this range of data points, we think Southern Copper is in a good position to manage its debt levels. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. Case in point: We’ve spotted 2 warning signs for Southern Copper you should be aware of, and 1 of them is concerning.

If you’re interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

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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Southern Copper (SCCO) has recently been on Zacks.com’s list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock’s performance in the near future.

Shares of this miner have returned +26.4% over the past month versus the Zacks S&P 500 composite’s no change. The Zacks Mining – Non Ferrous industry, to which Southern Copper belongs, has gained 17.8% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company’s business prospects usually make its stock ‘trending’ and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings Estimates

Here at Zacks, we prioritize appraising the change in the projection of a company’s future earnings over anything else. That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Southern Copper is expected to post earnings of $0.79 per share for the current quarter, representing a year-over-year change of -26.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $3.04 points to a change of -30.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $3.04 indicates a change of +0.2% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock’s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Copper is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company’s forward 12-month consensus EPS estimate:

12 Month EPS

12-month consensus EPS estimate for SCCO _12MonthEPSChartUrl

Revenue Growth Forecast

While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it’s important to know a company’s potential revenue growth.

For Southern Copper, the consensus sales estimate for the current quarter of $2.48 billion indicates a year-over-year change of -12.2%. For the current and next fiscal years, $9.71 billion and $9.44 billion estimates indicate -11.2% and -2.8% changes, respectively.

Last Reported Results and Surprise History

Southern Copper reported revenues of $2.16 billion in the last reported quarter, representing a year-over-year change of -19.6%. EPS of $0.67 for the same period compares with $1.12 a year ago.

Compared to the Zacks Consensus Estimate of $2.32 billion, the reported revenues represent a surprise of -6.96%. The EPS surprise was +21.82%.

Over the last four quarters, Southern Copper surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

Valuation

Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects.

Comparing the current value of a company’s valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Southern Copper is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. Just take a look at Southern Copper Corporation (NYSE:SCCO), which is up 69%, over three years, soundly beating the market return of 17% (not including dividends). On the other hand, the returns haven’t been quite so good recently, with shareholders up just 15% , including dividends .

Since the stock has added US$6.7b to its market cap in the past week alone, let’s see if underlying performance has been driving long-term returns.

View our latest analysis for Southern Copper

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During three years of share price growth, Southern Copper achieved compound earnings per share growth of 20% per year. We note that the 19% yearly (average) share price gain isn’t too far from the EPS growth rate. Coincidence? Probably not. This suggests that sentiment and expectations have not changed drastically. Quite to the contrary, the share price has arguably reflected the EPS growth.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth

It’s probably worth noting that the CEO is paid less than the median at similar sized companies. It’s always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Southern Copper’s earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Southern Copper, it has a TSR of 96% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

It’s nice to see that Southern Copper shareholders have received a total shareholder return of 15% over the last year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 13%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We’ve identified 2 warning signs with Southern Copper (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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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Copper prices hit their highest level since mid-2022 on expectations that China’s reopening will boost demand for industrial metals. The rally in copper, which on Wednesday traded above $9,000 a metric ton on the London Metal Exchange for the first time since June, is broadly a good sign for the global economy. Copper is used in construction, cars, machinery, consumer goods and energy infrastructure. Prices typically rise when demand picks up speed in line with economic growth. China is by far t

Most readers would already be aware that Anglo American’s (LON:AAL) stock increased significantly by 19% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Anglo American’s ROE.

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

See our latest analysis for Anglo American

How To Calculate Return On Equity?

ROE can be calculated by using the formula:

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

So, based on the above formula, the ROE for Anglo American is:

26% = US$9.3b ÷ US$36b (Based on the trailing twelve months to June 2022).

The ‘return’ is the yearly profit. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.26 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.

Anglo American’s Earnings Growth And 26% ROE

To begin with, Anglo American has a pretty high ROE which is interesting. Additionally, the company’s ROE is higher compared to the industry average of 13% which is quite remarkable. This probably laid the groundwork for Anglo American’s moderate 19% net income growth seen over the past five years.

We then performed a comparison between Anglo American’s net income growth with the industry, which revealed that the company’s growth is similar to the average industry growth of 18% in the same period.

past-earnings-growth

Earnings growth is a huge factor in stock valuation. 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. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Anglo American is trading on a high P/E or a low P/E, relative to its industry.

Is Anglo American Using Its Retained Earnings Effectively?

With a three-year median payout ratio of 42% (implying that the company retains 58% of its profits), it seems that Anglo American is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that’s well covered.

Additionally, Anglo American has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 47%. However, Anglo American’s future ROE is expected to decline to 12% despite there being not much change anticipated in the company’s payout ratio.

Summary

Overall, we are quite pleased with Anglo American’s performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. 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.

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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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Commercial Metals (CMC) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Commercial Metals is one of 242 companies in the Basic Materials group. The Basic Materials group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Commercial Metals is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CMC's full-year earnings has moved 13.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CMC has returned 36.1% so far this year. Meanwhile, the Basic Materials sector has returned an average of -2.7% on a year-to-date basis. As we can see, Commercial Metals is performing better than its sector in the calendar year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Southern Copper (SCCO). The stock has returned 0.8% year-to-date.

In Southern Copper's case, the consensus EPS estimate for the current year increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Commercial Metals is a member of the Steel – Producers industry, which includes 24 individual companies and currently sits at #30 in the Zacks Industry Rank. On average, stocks in this group have gained 2.6% this year, meaning that CMC is performing better in terms of year-to-date returns.

In contrast, Southern Copper falls under the Mining – Non Ferrous industry. Currently, this industry has 13 stocks and is ranked #95. Since the beginning of the year, the industry has moved +16.7%.

Commercial Metals and Southern Copper could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.

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(Refiles to add Codelco to the headline)

SANTIAGO, Dec 28 (Reuters) – Anglo American PLC and Chile's Codelco said on Wednesday they are evaluating alternative copper shipment plans after a fire forced a major port in central Chile to close last week.

The fire in the Ventanas port, about 115 kilometers (71.5 miles) northwest of Santiago, left a huge cloud of smoke in the area, but did not spread to nearby facilities, including AES, an electricity company, or Codelco, the world's largest copper producer.

In a statement to Reuters, Anglo American said the fire did not affect its warehouses or infrastructure but that "authorities have completely closed the port" while the incident is investigated.

"The company is evaluating courses of action and at the same time contacting its clients to keep them informed of the status of the situation," the statement said.

The company did not specify the copper volumes that could be affected. Chile is the world's top copper producer.

Codelco said its operations had not been impacted by the fire, but added that "the company is in advanced talks with ports in the Valparaiso region and other nearby areas to continue its shipments and thus fulfill its commercial commitments." (Reporting by Fabian Andrés Cambero; Editing by Barbara Lewis and Matthew Lewis)

If you’re not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Amongst other things, we’ll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company’s amount 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. So when we looked at the ROCE trend of Southern Copper (NYSE:SCCO) we really liked what we saw.

Understanding Return On Capital Employed (ROCE)

For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Southern Copper is:

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

0.29 = US$4.6b ÷ (US$17b – US$1.5b) (Based on the trailing twelve months to September 2022).

So, Southern Copper has an ROCE of 29%. That’s a fantastic return and not only that, it outpaces the average of 18% earned by companies in a similar industry.

See 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’d like to see what analysts are forecasting going forward, you should check out our free report for Southern Copper.

What Can We Tell From Southern Copper’s ROCE Trend?

Southern Copper is showing promise given that its ROCE is trending up and to the right. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 70% over the last five years. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. It’s worth looking deeper into this though because while it’s great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking.

In Conclusion…

To bring it all together, Southern Copper has done well to increase the returns it’s generating from its capital employed. And with a respectable 63% 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. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.

If you want to know some of the risks facing Southern Copper we’ve found 2 warning signs (1 is a bit unpleasant!) that you should be aware of before investing here.

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.

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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Brisbane, Queensland, Australia–(Newsfile Corp. – December 21, 2022) – Graphene Manufacturing Group Ltd. (TSXV: GMG) (FSE: 0GF) (“GMG” or the “Company”) is pleased to announce the appointments of Lisa Roobottom as Chief Operating Officer (“COO”) and Paul Mackintosh as Chief Health, Safety, Environment, Quality, Risk and Sustainability Officer (“Chief HSE, Risk & Sustainability Officer”), effective on the on the 30th day January, 2023 and 6th day of February, 2023 respectively. Lisa and Paul will be members of GMG’s senior executive leadership team reporting to, and working closely with, CEO Craig Nicol.

Lisa Roobottom has a career in the Oil & Gas and Manufacturing industries spanning approximately 30 years, working in a number of roles include Refinery Operations Manager and National Health, Safety & Environment Manager at various companies including Caltex, Ampol, Australian Laboratory Services and, most recently, Alpha HPA.

Paul Mackintosh has over 20 years of experience in fulfilling senior roles in the Health, Safety and Environment function. Mr Mackintosh has worked for large organisations in the mining, energy, manufacturing and oil and gas industries including senior positions at Arrow Energy, Origin Energy, Brickworks and Caltex, as well as with Coles Myer retail and energy divisions.

GMG’s current COO, Sheena Ward, has successfully overseen both roles as COO and Chief HSE, Risk & Sustainability Officer through GMG’s recent development phase. With GMG’s growth plans currently underway, the Company has deemed it appropriate to now divide the roles. Sheena will be primarily responsible for onboarding both Lisa and Paul, after which Sheena intends on transitioning out of the Company to spend more time with her family.

GMG’s CEO Craig Nicol stated, “I am very pleased to see Lisa and Paul join the GMG team. Their capability and experience will add to maturing and progressing the Company. I also want to thank Sheena for her extreme dedication to lead and manage the operations team including production, supply chain and health, safety and environment team members through the last two years of growth and we all wish her the very best for her next opportunity that aligns with her goals to spend more time with her family.”

GMG’s Chair Guy Outen stated, “I look forward to welcoming Lisa and Paul to the leadership team at GMG to help drive the next stage of the Company’s growth. The Board and I also want to thank Sheena for her very important contributions to the company in establishing the foundations for successful production and health, safety and environment activities that we are confident will serve the Company well hereafter. We all wish her the very best with her family and with whatever she chooses to do in the future.”

About GMG

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

The Company is pursuing opportunities for GMG graphene enhanced products, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance and energy efficiency of engine oils.

www.graphenemg.com

For further information, please contact:

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

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

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

Cautionary Note Regarding Forward-Looking Statements

This 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 the effective date of appointment of Ms. Roobottom as COO and Mr. Mackintosh as HSE & Risk Officer, and Ms. Ward’s subsequent departure from the Company.

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, risks related to the successful onboarding of Ms. Roobottom and Mr. Mackintosh and that Ms. Roobottom is appointed as COO and Mr. Mackintosh is appointed as HSE & Risk Officer as of the effective dates currently anticipated.

In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, assumptions regarding the effective date on which Ms. Roobottom will be appointed as COO and Mr. Mackintosh will be appointed as HSE & Risk Officer, and that Ms. Ward will subsequently depart from the Company following the onboarding of Ms. Roobottom and Mr. Mackintosh.

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/148984

Wall Street is heading toward completing a terrible 2022. U.S. stock markets have seen a broad-based decline this year. Among the 11 broad sectors on the market’s benchmark — the S&P 500 Index — all except energy are in the red year to date.

Even the massive growth of the energy sector is primarily due to its low base in the pandemic-ridden last two years, the unending war between Russia and Ukraine and strict production control by OPEC.

Concerns About a Recession in 2023

On Dec 14, the Fed increased interest rates by another 50 basis points. The Fed indicated a continued increase in interest rates at regular intervals through 2023. The latest interest rate hike took the benchmark range to 4.25% to 4.50%, and the Fed projected it to top out at 5.25% before it takes a call on pausing the hikes. This is higher than the September forecast of 4.75%.   

Recession fears were further ignited after central banks in Europe also hinted at hiking interest rates through 2023. Both the Bank of England and the European Central Bank slowed down their pace of rate hikes but increased interest rates by 50 basis points. Investors were once again alarmed by this as they believe that the ongoing rate increases could push the economy into a recession.

On Dec 20, global financial markets were completely surprised as the Bank of Japan suddenly widened its target range for the 10-year Japanese government bond yields. The Bank of Japan raised the yield curve control range to 0.5% from the current level of 0.25%, around its target level of 0% yield.

This has sparked widespread selling of bonds and stocks across the global financial markets as the Japanese central bank’s move was perceived by market participants as potentially hawkish. BOJ has so far maintained a 0% benchmark interest rate.

U.S. Stock Markets Seem Oversold

Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 9.6%, 19.8% and 32.6%. On Dec 19, these three stock indexes closed at their lowest levels in five weeks.

However, peak inflation seems behind us. A less-than-expected inflation rate in October and November with respect to several measures have clearly indicated this. In fact, economic indicators like a tepid housing sector, declining commodity prices (except food and energy), growing accumulation of inventories on the part of manufacturers and retailers, a gradual slowdown of the ISM manufacturing PMI and retail sales along with a decline in the job openings rate are all pointing to the cooling down of the U.S. economy.

Our Top Picks

At this stage, it will be prudent to invest in beaten down U.S. corporate giants (market capital > $30 billion) for 2022 that have solid potential for 2023. We have selected five such stocks with a favorable Zacks Rank.

These companies have stable business model and stocks are currently available at attractive valuations. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our five picks year to date.

Zacks Investment Research

Image Source: Zacks Investment Research

Fortinet Inc. FTNT is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. FTNT is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network offerings.

Moreover, continued deal wins, especially those of high value, are solid drivers. Higher IT spending on cybersecurity is expected to aid Fortinet in growing faster than the security market. Also, focus on enhancing its unified threat management portfolio through product development and acquisitions is a tailwind for FTNT.

Fortinet has an expected earnings growth rate of 20.6% for next year. The Zacks Consensus Estimate for next-year earnings improved 6.2% over the last 60 days. The stock price of FTNT is currently trading at a 32.1% discount from its 52-week high.

salesforce.com inc. CRM is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for CRM’s products. CRM’s sustained focus on introducing more aligned products as per customer needs is driving its top-line.

Continued deal wins in the international market are other growth drivers. The acquisition of Slack would position salesforce.com to be a leader in the enterprise team collaboration solution space and better compete with Microsoft’s Teams product. We expect CRM revenues to witness a CAGR of 12.5% through fiscal 2023-2025.

salesforce.com has an expected earnings growth rate of 14.6% for next year (ending January 2024). The Zacks Consensus Estimate for next-year earnings improved 2% over the last 30 days. The stock price of CRM is currently trading at a 50.7% discount from its 52-week high.

Workday Inc.’s WDAY revenue growth continues to be driven by high demand for its HCM and financial management solutions. WDAY’s cloud-based business model and expanding product portfolio have been the primary growth drivers.

Moreover, the growing clout of Workday Prism Analytics and Adaptive Insights business planning cloud offerings holds promise. Based on its expanding product portfolio, we believe that Workday is well positioned to gain from its strong growth prospect.

Workday has an expected earnings growth rate of 32.3% for next year (ending January 2024). The Zacks Consensus Estimate for next-year earnings improved 0.2% over the last seven days. The stock price of WDAY is currently trading at a 38.7% discount from its 52-week high.

Wells Fargo & Co. WFC has benefited from rising rates and solid average loan growth. Progress on efficiency initiatives propelled expense control and savings, which might support WFC’s bottom line in the upcoming period. Strength in the deposit balance would aid the bank’s liquidity position. WFC’s solid liquidity position will help navigate economic uncertainty and supports capital deployment moves.

Wells Fargo has an expected earnings growth rate of 34.7% for next year. The Zacks Consensus Estimate for next-year earnings improved 0.2% over the last seven days. The stock price of WFC is currently trading at a 32% discount from its 52-week high.

Southern Copper Corp. SCCO expects production to recover in 2023 and reach 971,000 tons with Peruvian production coming back on track and new production at Pilares, El Pilar and Buenavista. SCCO’s strict cost control measures will help offset the impact of inflated fuel, labor and operating costs.

Even though copper prices have declined lately, SCCO will be supported by growth in public infrastructure investment in the United States and global initiatives to address climate change. This would support Southern Copper’s top-line performance. Backed by industry-leading copper reserves as well as growth investments, SCCO is well poised to continue delivering solid results.

Southern Copper has an expected earnings growth rate of 0.2% for next year. The Zacks Consensus Estimate for next-year earnings improved 20.2% over the last 30 days. The stock price of SCCO is currently trading at a 23.8% discount from its 52-week high.

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(Bloomberg) — China is about to upend the $160 billion iron ore trade with the biggest change in years as Beijing expands efforts to increase control over the natural resources needed to feed its economy.

Most Read from Bloomberg

A new state-owned company called China Mineral Resources Group is poised to become the world’s biggest iron ore buyer as soon as next year, when it will begin consolidating purchases on behalf of about 20 of the largest Chinese steelmakers including leader China Baowu Steel Group Corp., according to people familiar with the situation.

CMRG has already begun discussing supply contracts with top producers Rio Tinto Group, Vale SA and BHP Group, said the people, who asked not to be identified discussing private information.

The move to consolidate buying for China’s massive steel industry will give CMRG unprecedented negotiating power in iron ore, and the new company plans to seek discounts to prevailing market prices. It’s the latest in a number of attempts by China, the No. 1 buyer of almost every major commodity, to increase its influence over global markets and pricing.

Representatives from the major iron ore miners were informed of the changes by Chinese officials in recent meetings. The current structure for “term” supply contracts — in which steelmakers place orders on a quarterly basis and use a spot index for pricing — is expected to continue, with CMRG taking over responsibility for certain contracts to begin with, said the people.

Iron ore futures slumped as much as 3.9% in Singapore on Friday, the biggest drop this month.

Multiple attempts to seek comment from CMRG were unsuccessful. Baoshan Iron & Steel Co., the listed unit of Baowu, did not respond to an emailed query. BHP and Rio declined to comment. Vale has been working closely with CMRG and sees an opportunity to strengthen its relationship with China in this new context, the company wrote in an emailed response. “We see ourselves as China’s long-term partner and a reliable supplier to the Chinese steel industry of the future.”

China, which accounts for about three-quarters of the world’s iron ore imports, has long complained the mega miners hold too much power because supply is so concentrated — the top three producers control more than half of global exports.

CMRG was established in July to buy raw materials for the giant domestic steel industry, but it has been unclear how quickly it would begin operating, or how much of the industry’s purchasing would end up being centralized.

If implemented, the move to buy through CMRG will be the biggest change to the iron ore market since 2010, when producers led by BHP took advantage of a scramble for supplies to break a 40-year system of selling iron ore at a set annual price, arguing that prices should be driven by market fundamentals.

Now, the power balance has switched. Demand is stagnating, weakening the miners’ position, and the world’s biggest steelmaker is flexing its muscles. Chinese iron ore demand has fallen from a peak in 2020, and Macquarie Group Ltd. forecasts it will not return to that level within the next five years.

Read: China Wants to Rewire Its Billion-Ton Iron Ore Trade: QuickTake

The recent discussions have spooked senior executives at the biggest miners, who are worried about the potential for China to increase its control over prices in their most profitable commodity.

China’s current plan is to move all term supply contracts for the leading steelmakers over time to CMRG, the people said, although the negotiations are still ongoing and the situation could change. The company will act as an agent for the steelmakers and has hired leaders and key traders from Chinese metals firms.

“The miners don’t have a choice – they have to sign up to this China-based price-setting agency, because there’s no one else out there to buy these tons,” said Tom Price, head of commodities strategy at Liberum Capital. Over time the move could push the big miners to work more closely, given that supply is so concentrated among a few producers, he said.

“Given this market’s structure, if China decides to dictate pricing terms then we should expect the miners to respond by behaving less competitively, and more strategically.”

Tensions between the top iron ore producers and their biggest buyer are nothing new.

For most of the industry’s recent history, iron ore was sold based on the annual “benchmark” price, set through lengthy negotiations between the Australian miners and Japan’s Nippon Steel Corp. and China’s Baoshan Iron & Steel Co., which the rest of the industry would use as a reference.

In 2010, under pugnacious Chief Executive Officer Marius Kloppers, BHP decided to break the system. Negotiations had become increasingly difficult and ugly, and the biggest miner was convinced it was leaving too much money on the table.

Read: Rio, BHP Vow to Cooperate With China’s Iron Ore Firm

With Chinese demand roaring and supply at the time increasingly tight, the miners were able to move pricing onto a spot market, where prices jumped from about $60 a ton to $150 a ton in little more than a year. Strong iron ore prices since then — with the exception of the commodity collapse in 2015 — have helped produce eye-watering profit margins at the biggest miners.

Beijing has long pointed to a power imbalance between the clutch of global mining giants on the one hand and China’s vast but fragmented steel industry on the other. The country imports 1.1 billion tons of iron ore annually to help supply about 500 steel mills, of which the top 10 companies only contribute 40% of the national output.

There was no fanfare when CMRG was established in July, but people familiar with the matter told Bloomberg at the time that its creation was encouraged and closely monitored by top leaders in Beijing. They see a consolidated platform for buying resources as a way to strengthen the country’s negotiating position in an unfriendly international environment.

Despite that, CMRG received little global attention so far. BHP, Vale and Rio’s executives have made few public comments about the company, mostly restricted to recent posts on Chinese social media pledging to work with the new venture. Analysts and investors haven’t seemed overly interested either — it didn’t come up at all in questions during a Rio Tinto investor day last month.

The fact that iron ore supply is so concentrated may limit CMRG’s negotiating power for now, said David Lennox, a resource analyst at Sydney-based Fat Prophets.

“It will only work when there are significant supply sources available for the single buyer to play off against each other, and that is well down the track.”

–With assistance from Mariana Durao and Liz Ng.

(Updates with comments from analysts.)

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(Updates with context, comment)

Dec 16 (Reuters) – Rio Tinto Ltd said on Friday it had completed its long drawn-out acquisition of remaining 49% stake in Turquoise Hill Resources, giving the Anglo-Australian firm a 66% stake in Mongolia's Oyu Tolgoi, the world's largest known copper and gold deposit.

Turquoise Hill shareholders last week voted in favour of Rio Tinto's $3.3 billion bid to take the Canadian company private after months of back and forth.

Minority shareholders were against the deal over valuation, and no. 2 shareholder Pentwater Capital Management accused Rio of concealing delays and huge cost overruns at Oyu Tolgoi.

The larger stake in Oyu Tolgoi will help Rio Tinto compete better with BHP Group over battery metals production as the world speeds up the shift towards green economy.

BHP Group last month made a renewed $6.5 bln play for copper miner OZ Minerals, potentially allowing the miner to consolidate its copper assets in South Australia if the deal goes through.

"We now have a simpler and more efficient ownership and governance structure with our partner the Government of Mongolia, as we proceed together towards sustainable production from the underground mine," Rio Tinto's copper chief executive Bold Baatar said.

Shares of Rio Tinto finished 0.8% higher on the Australian Stock Exchange. (Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

VANCOUVER, BC, Dec. 15, 2022 /PRNewswire/ – Copper Mountain Mining Corporation (TSX: CMMC) (ASX: C6C) (the “Company” or “Copper Mountain”) is pleased to announce that the Foreign Investment Review Board (“FIRB”) in Australia granted approval on December 13, 2022 (the “FIRB Approval”) for the previously announced sale of Copper Mountain’s wholly-owned Eva Copper Project and its 2,100km2 exploration land package in Queensland, Australia (the “Transaction”) to Harmony Gold Mining Company Limited (JSE: HAR) (NYSE: HMY) (“Harmony”). See Copper Mountain’s press release dated October 6, 2022 (“Copper Mountain Mining Announces Agreement to Sell the Eva Copper Project and the Australian Exploration Tenements for Total Consideration of up to US$230 Million“) for additional details regarding the Transaction.

The FIRB Approval was the final key condition to the closing of the Transaction. The Company expects the Transaction to be completed imminently upon the Company receiving the cash consideration for the Transaction from Harmony.

About Copper Mountain Mining Corporation

Copper Mountain’s flagship asset is the 75% owned Copper Mountain Mine located in southern British Columbia near the town of Princeton. The Copper Mountain Mine currently produces approximately 100 million pounds of copper equivalent on average per year. Copper Mountain trades on the Toronto Stock Exchange under the symbol “CMMC” and Australian Stock Exchange under the symbol “C6C”.

Additional information is available on the Company’s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION”Gil Clausen”

Gil ClausenPresident and Chief Executive Officer

Website: www.CuMtn.com

Cautionary Note Regarding Forward-Looking Statements

This news release may contain “forward looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this news release and Copper Mountain does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities legislation.

All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements relate to future events or future performance and reflect Copper Mountain’s expectations or beliefs regarding future events.

In certain circumstances, forward-looking statements can be identified, but are not limited to, statements which use terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “forecasts”, “guidance”, scheduled”, “target” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved” or the negative of these terms or comparable terminology. In this news release, certain forward-looking statements are identified, including the anticipated closing date of the Transaction, anticipated production at the Copper Mountain Mine, and expectations for other economic, business and/or competitive factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance, achievements and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, among others, assumptions concerning the Transaction and the operations and capital expenditure plans of the Company following completion of the Transaction, the potential impact of the consummation of the Transaction, the diversion of management time on the Transaction, the successful exploration of the Company’s property in Canada, market price, continued availability of capital and financing and general economic, market or business conditions, the Company’s ability to comply with its financial covenants under its bond terms and meet its future cash commitments, extreme weather events, material and labour shortages, the reliability of the historical data referenced in this document and risks set out in Copper Mountain’s public documents, including the management’s discussion and analysis for the quarter ended September 30, 2022 and the annual information form dated March 29, 2022, each filed on SEDAR at www.sedar.com. Although Copper Mountain has attempted to identify important factors that could cause the Company’s actual results, performance, achievements and opportunities to differ materially from those described in its forward-looking statements, there may be other factors that cause the Company’s results, performance, achievements and opportunities not to be as anticipated, estimated or intended. While the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Accordingly, readers should not place undue reliance on the Company’s forward-looking statements.

Cision

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SOURCE Copper Mountain Mining Corporation

  • Pulsed power could transform mining and decarbonise key steps of the mineral extraction process

  • BHP invests in both I-Pulse and its affiliate, I-ROX, to develop new disruptive approaches to crushing and grinding of ores

Toulouse, France–(Newsfile Corp. – December 12, 2022) – I-Pulse Inc. (I-Pulse) and I-ROX SAS (I-ROX) are pleased to today announce a comprehensive collaboration arrangement with BHP, a world-leading resources company, to identify and develop applications of pulsed-power technology across multiple aspects of the mining industry.

Earlier this year, I-Pulse and Breakthrough Energy Ventures-Europe (BEV-E) announced the establishment of I-ROX, which is focused on demonstrating that short, high-intensity bursts of energy delivered using pulsed-power technology can quickly and efficiently shatter rocks and mineral ores. This process, which targets tensile weakness in rocks, could substantially reduce the time, energy usage and greenhouse gas (GHG) emissions currently generated by critical mining activities. The crushing and grinding of ores is the most energy- and capital-intensive aspect of the entire mining process – it is estimated to comprise approximately 4% of all electrical energy consumption globally and more than half a typical mine’s power usage.

BHP has entered into a collaboration agreement with I-ROX under which the companies will work together to seek to accelerate the development of I-ROX’s technology and business, and BHP will be offered direct access to this potentially disruptive technology. BHP has also made an equity investment in I-ROX, joining I-Pulse and BEV-E as shareholders.

BHP has also made an equity investment in, and entered into a collaboration agreement with, I-Pulse to identify new applications for pulsed-power technology in a mining context. Within the mining industry, pulsed-power technology is currently deployed by I-Pulse’s former subsidiary, Ivanhoe Electric Inc., in mineral exploration via its proprietary Typhoon™ system. Further opportunities to develop and commercialize pulsed-power-based applications include drilling, tunnel boring, blasting and explosives replacement.

These collaboration arrangements will link the mining and processing expertise of BHP with the pulsed-power technology and expertise of I-Pulse and I-ROX, in an effort to transform multiple aspects of mining with the potential for economic and environmental upside. This includes materially reducing GHG emissions associated with rock crushing.

Mike Henry, BHP’s Chief Executive Officer, explained, “The collaboration with I-Pulse and I-ROX will contribute to our growing portfolio of options with potential to both improve the competitiveness of and help decarbonise our current business, and also to unlock new growth opportunities beyond those available today. We are excited by the opportunity to work more closely with I-Pulse and I-ROX and bring our own expertise to the relationship to together develop these solutions.”

Robert Friedland, Chairman of I-Pulse said, “I-Pulse technologies offer transformational improvement potential in so many aspects of life. Pulsed power could enable significant energy savings in mining and manufacturing, as well as opportunities in relation to geothermal energy. The TyphoonTM system is being applied to precisely locate ore bodies and groundwater.

“BHP’s investment and our collaboration offer a meaningful step forward in the development and commercialisation of I-Pulse technologies for the mining industry and particularly in relation to the prospect of the crushing and grinding of rocks for a fraction of today’s energy consumption, environmental impact and costs.”

For more information, please contact:

Bradley Doig (bradley.doig@ipulse-group.com) ORPhil Mitchell (philip.mitchell@ipulse-group.com)

LinkedIn: I-ROX

About I-Pulse

Founded by Robert Friedland and Laurent Frescaline in 2005, I-Pulse Inc., a private U.S. company headquartered in Toulouse, France, uses its unique expertise in electrical energy to power disruptive industrial solutions. Mr. Frescaline is a plasma physicist and an electrical engineer who founded a successful high-technology company specialising in pulsed-power applications with domestic and international governmental agencies. The I-Pulse suite of technologies utilises proprietary capacitors that safely and repeatedly compress and release stored electricity in billionths of a second. The extremely high-powered discharges, which utilise extremely small amounts of energy, generate precise shockwaves directed to shape and assemble metals to previously unachievable degrees of precision; generate electrical fields that reveal chargeable or resistive mineral deposits, or water, at depth; and crush rock containing minerals or gemstones. I-Pulse is commercializing these applications in industries such as advanced manufacturing and mineral exploration. I-Pulse operates its I-Cube research and development facilities in Toulouse, France. Visit www.ipulse-group.com to learn more.

About BHP

BHP was founded in 1885 and is a leading global resources company headquartered in Melbourne, Australia, focused on providing the resources the world needs to grow and decarbonise. Copper for renewable energy. Nickel for electric vehicles. Potash for sustainable farming. Iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. BHP operates in more than 90 locations including throughout Australia, Chile, and the United States, with a workforce of 80,000 employees and contractors.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/147549

Brisbane, Queensland, Australia–(Newsfile Corp. – December 12, 2022) – Graphene Manufacturing Group Ltd. (TSXV: GMG) (“GMG ” or the “Company”) is pleased to provide an update on its ongoing investment in the Company’s Battery Development Centre (“BDC”). The GMG Board has approved an additional $AU 600,000 in capital expenditure, to accelerate the progress of semi-automatic pouch cell prototype production in the BDC for customer trials and Graphene Aluminium Ion (G+AI) Battery cell development. The Company has also successfully increased its organisational capacity by attracting new staff experienced in pouch cell manufacturing, thereby enabling the acceleration of its battery performance optimisation programme.

GMG believes its pouch cells could be used in a wide range of potential applications, including:

  • personal communication devices,

  • internet of things (IOT) sensors,

  • personal mobility devices,

  • energy storage,

  • high power industrial applications,

  • electric aviation,

  • electric vehicles, and

  • personal electronics.

GMG Pouch Pack Cell Prototype

To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8082/147626_d4942a5f64f5fbba_001full.jpg

GMG’s Managing Director and CEO, Craig Nicol, commented: “This investment adds to our existing pouch cell manufacturing capabilities and together with GMG’s internal expertise the Company is now focused on progressing collaborative partnerships with several potential battery customers to further accelerate commercial development work in 2023.”

GMG Battery Development Centre

To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8082/147626_d4942a5f64f5fbba_002full.jpg

The additional CAPEX expenditure will assist with future optimisation, prototype development and production, and assembly times in the BDC. The additional equipment is expected to be operational in Q2 2023.

GMG will continue to work with various scientific and engineering methods to optimise capacity, energy and power density, and overall design of coin cell and/or pouch cell products.

About GMG

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

The Company is pursuing opportunities for GMG graphene enhanced products, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance and energy efficiency of engine oils.

For further information, please contact:

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

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

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

Cautionary Note Regarding Forward-Looking Statements

This 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 the expectation that the Pilot Battery Plant will allow the Company to develop, manufacture and test its own G+AI Battery coin cell and pouch packs in-house and that such capability may accelerate the development of the Company’s G+AI Batteries; the expectation that additional equipment to enable the manufacture of G+AI Batteries in pouch pack cell format will arrive in January 2022; GMG’s expectations relating to construction of an initial commercial coin cell G+AI Battery manufacturing facility, production and sales of G+AI Batteries and the anticipated timing of such events; the proposed location of the anticipated manufacturing facility; and the potential full commercialization of the Company’s technology.

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, risks related to the deployment of the Company’s resources, including its personnel; the intention of the Company to research, develop and produce certain products; the ability of the Company to acquire additional equipment to enable the manufacture of G+AI Batteries in pouch pack cell format and the timeline for such acquisition; the ability of the Company to complete construction of an initial commercial coin cell G+AI Battery manufacturing facility, including obtaining necessary permits; timing of anticipated construction; and fluctuations in the market for graphene.

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 ability to research, develop and test its products within anticipated timelines; the ability of the Company to acquire additional equipment to enable the manufacture of G+AI Batteries in pouch pack cell format in a timely manner; the costs associated with commissioning a pouch cell G+AI Battery manufacturing and testing equipment; the ability of the Company to obtain necessary production permits; the continued demand for graphene; sufficient demand for the Company’s products; and that in-house production of G+AI Batteries by the Company will be cost-effective.

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/147626

MELBOURNE, Dec 1 (Reuters) – Mining is facing a major shortage of the digital skills it needs, and must step up or lose out to the "cool kids" of Google and Amazon, a BHP Group executive said on Thursday.

Miners are increasingly reliant on computing heft to manage tasks such as automated truck fleets, and using artificial intelligence to delve into reams of data and discover the next big deposit, said Chief Technology Officer Laura Tyler.

"We need more technologists, more data scientists and more mathematicians," she told a Melbourne Mining Club lunch, according to a prepared speech.

"We compete for such talent not just with each other, but with the cool kids such as Google and Amazon … the defence and pharmaceuticals industries, government and NGOs," she told the business luncheon. "Increasingly, we need more digital skills in every aspect of what we do."

A PwC analysis last year suggested that by 2040, the industry will need 21% more mining engineers and geotech engineers, and 29% more metallurgists than it had in 2020, she said.

"We need to train them now … and we need to make sure they see the mining industry as stable, attractive, and dare I say it, exciting," she said.

Australia's mining giants BHP, Rio Tinto Ltd and Fortescue have redoubled efforts to attract new workers to an industry confronting a dire skills shortage, and concerns over job security, sexual harassment and social licence.

So far, however, efforts are bearing fruit, Tyler said.

BHP's First Year Intern program was oversubscribed seven times and resulted in 60 graduates deciding to switch to resources-facing subjects for their next year of university, she said.

A program at Adelaide University is developing a pipeline of exploration geologists, specialising in finding ore deposits deep beneath the surface.

BHP has also established a reentry program to welcome back those who left the industry, while Rio Tinto's efforts to advance jobs in automation and industry efforts to train metallurgists are all bearing fruit – but are still not enough, she said. (Reporting by Melanie Burton. Editing by Gerry Doyle)

(Bloomberg) — BHP Group Ltd., the world’s biggest miner, is warning a shortage of skilled workers from mining engineers to mathematicians will hamper efforts to meet soaring demand for metals crucial to the energy transition.

Most Read from Bloomberg

Increasingly advanced technological expertise is needed to discover and access new deposits of “difficult to find” key metals such as copper and nickel, Laura Tyler, BHP’s chief technical officer, said in a speech in Melbourne on Thursday.

“They are becoming deeper, harder to access, in more challenging regions,” Tyler said. “As we automate and electrify our operations, move work to remote operating centers, change the very equipment our maintainers look after, we have to train for new skills.”

Demand for copper — a core metal in almost every electrical technology from power grids to electric vehicles — is expected to double over the next 30 years, while the need for nickel, a key component in lithium-ion batteries, will quadruple, Tyler said. Both “future facing” metals are key to BHP’s growth plans, along with fertilizer ingredient potash, as consumption of its main commodity iron ore plateaus and it winds back its exposure to coal.

Read more: BHP Says China Growth Will Help Offset Wider Global Slowdown

To meet demand for the so-called “green metals,” by 2040 the world will need 21% more mining and geotech engineers and 29% more metallurgists, Tyler said, citing PricewaterhouseCoopers LLP research. “We need to train them now,” she added.

“Even as we retrain our people to meet the challenges of the new way of operating, we know this will not be enough,” she said. “We need more technologists. More data scientists. And more mathematicians.”

Demand for less skilled forms of labor in the sector, however, will drop thanks to automation of vehicles and equipment, she said.

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©2022 Bloomberg L.P.

By Marco Aquino and Marcelo Rochabrun

TAPAIRIHUA, Peru (Reuters) – In the hills of Tapairihua in Peru's Andes, Samuel Retamozo and other artisanal miners have found a rich seam of copper on their indigenous community's land. Armed with temporary government permits, they started exploiting it earlier this year.

There's just one problem – the seam is within the site of Southern Copper Corp's planned $2.6 billion Los Chancas mine. One of the world's biggest copper miners, it also has a permit to dig in the same area.

Grupo Mexico's Southern Copper aims to start producing here in 2027 after decades of studies. The planned mine is crucial to the company's goal of producing 1.8 million tonnes of copper annually by 2030.

But the rise of artisanal copper mining – driven by high global metal prices and sustained by a messy government permitting system – is threatening billions in new investments by Southern Copper and others in Peru, according to Reuters reviews of internal company reports, interviews with executives and a visit to Tapairihua to meet the miners.

Small-scale copper miners are now challenging Big Copper for territorial control of rich deposits of the red metal. Artisanal copper mining is creating much-needed income for impoverished Andean Peruvians even as it brings them into conflict with major miners, a rare and previously unreported trend in the world's No. 2 copper producer.

"This used to happen with silver and gold, but now it's affecting copper," said Raul Jacob, Southern Copper's chief financial officer, bemoaning what the company sees as the government's poor handling of artisanal mining permits.

In Peru, artisanal mining permits have doubled to 80,000 since 2020, government records show. And copper is the new focus.

Southern Copper is not the only mining company in a stand-off with the miners. Chinese-owned MMG Ltd's nearby Las Bambas copper mine is struggling to develop two new open pits because of artisanal miners who have settled on the same land. The company says its current pit is running out.

"Informal mining is entering lands granted to formal (mining) companies and threatening the development of large-scale projects," a source close to MMG told Reuters.

While companies often call small-scale miners "informal" or "illegal," what complicates the matter are two dueling authorizations – one for artisanal mining and another to hold the mining rights to a given area. Mining companies own the latter, known as concessions.

But since 2012 Peru has been granting artisanal mining permits on lands that overlap with concessions, giving the small-scale miners some legal protection, Reuters found after checking the geolocations of the permits and reviewing an internal document in which Peru's mining ministry did the same.

POTENTIAL FOR MORE DISPUTES

Disputes between mining firms and artisanal miners may only increase over time. Peru's leftist administration presented a new framework for artisanal mining last week that declared artisanal mining is "as important" as big mining.

Southern Copper has asked the government to revoke all artisanal mining permits on its concession. About half have now been canceled, causing resentment in Tapairihua.

"We are going to defend ourselves. At the end of the day we are at home, and from home there is nowhere to go," Retamozo, a mining engineer and president of the Tapairihua Mining Association, told Reuters.

While artisanal permits have existed since 2012, lower copper prices that decade meant they were not in demand. But copper has risen more than 60% since 2020 due to demand for electric vehicles.

The surge in artisanal copper mining is forcing the government to review its artisanal permitting system, a mechanism that was meant to be a temporary bridge toward formalization and intended mostly for gold miners.

"Our country is a mining country but we haven't had until now a mining framework that gives a long-term view about small-scale mining," Alberto Rojas, Peru's top mining formalization official, told Reuters

Rojas, however, suggested artisanal miners would lose in a dispute against concession holders.

"Where we have concessions we can't have (artisanal mining permits)," Rojas said. "We can't disavow the concessions that have already been granted."

DIGGERS, TRUCKS

On a recent day in Tapairihua, Reuters visited the artisanal mining operations, where dozens of wood and blue tarpaulin homes were erected, and tunnels supported with wooden beams burrowed into the steep rocky hillside.

In Peru's Andes many feel the copper under the ground is a right, with mining dating back to the Incas and other cultures that existed before Spain's colonization. Tapairihua looks down onto the river Antabamba, meaning "copper plain" in the Andean Quechua language.

Many of the miners are also local subsistence farmers who took up mining in search of income. Many declined to be named because they have been sued by Southern Copper over their mining activities.

To extract copper, they use dynamite to explode rock that they bring out in wheelbarrows and bags. Miners earn 80 soles ($20.61) a day, extracting enough rock to fill a handful of trucks a week, usually containing around 5% copper, though this level can rise as high as 18%.

Gherson Quintanilla arrived in Tapairihua earlier this year with a background in artisanal gold mining. He came because he heard copper was abundant and expertise was low.

"My goal is to extract up to two truckloads a day," he told Reuters.

But artisanal copper mining is not always as small scale.

Graphic: Las Bambas: Small-scale miners https://www.reuters.com/graphics/PERU-MINING/zjpqjkdbyvx/chart.png

An internal Las Bambas presentation seen by Reuters estimated informal miners were blasting some 1,950 tonnes of rock per day, almost double their output a year ago.

The report said artisanal miners were using heavy machinery and diggers as well as pneumatic tools.

Overall, it estimated the government has issued 700 permits that overlap with Las Bambas's concession,

But removing those miners is not straightforward. While Las Bambas and Southern Copper hold mining rights – which grants them access to the mineral underground – in most cases they have yet to buy the property rights to the surface terrain.

That limits their options because they cannot file an eviction claim on land they do not own.

The source close to Las Bambas said MMG recognized this difficulty and anticipated it would have to buy out the miners if it wants them to leave the site of its third pit, set to open in 2027 – if there are no delays.

At the site of its second pit, which was supposed to open this year, Las Bambas has filed eviction claims against the miners there because it already owns that particular parcel of land. The company estimates almost a dozen mining sites in the area. Reuters was unable to determine the number of miners working in them.

Graphic: Las Bambas: artisanal mining https://www.reuters.com/graphics/PERU-MINING/lbvggnmarvq/chart.png

'FUEL TO THE FIRE'

In May, Southern Copper sued Retamozo and other Tapairihua miners, saying their mining permits were non-compliant.

Weeks later a fire destroyed Southern Copper's local headquarters, which is made up of tents, just minutes downhill from where the small-scale miners are operating. Burned-out cars remain there today.

Nobody was hurt in the fire and no arrests have been made. Peruvian authorities say the matter remains under investigation.

The miners have distanced themselves from the arson, though Retamozo acknowledged the lawsuits have angered them and that some individual members may have acted out of "resentment."

The number of valid artisanal mining permits in Tapairihua has fallen from 100 to 32 since May, according to government records. An internal mining ministry document seen by Reuters shows that the process is under way to revoke the remaining permits.

Retamozo cautioned about what would happen if those were canceled.

"Canceling them would add fuel to the fire," he said.

($1 = 3.8811 soles)

(Reporting by Marco Aquino and Marcelo Rochabrun; Editing by Adam Jourdan and Ross Colvin)

By Marco Aquino and Marcelo Rochabrun

TAPAIRIHUA, Peru, Dec 1 (Reuters) – In the hills of Tapairihua in Peru's Andes, Samuel Retamozo and other artisanal miners have found a rich seam of copper on their indigenous community's land. Armed with temporary government permits, they started exploiting it earlier this year.

There's just one problem – the seam is within the site of Southern Copper Corp's planned $2.6 billion Los Chancas mine. One of the world's biggest copper miners, it also has a permit to dig in the same area.

Grupo Mexico's Southern Copper aims to start producing here in 2027 after decades of studies. The planned mine is crucial to the company's goal of producing 1.8 million tonnes of copper annually by 2030.

But the rise of artisanal copper mining – driven by high global metal prices and sustained by a messy government permitting system – is threatening billions in new investments by Southern Copper and others in Peru, according to Reuters reviews of internal company reports, interviews with executives and a visit to Tapairihua to meet the miners.

Small-scale copper miners are now challenging Big Copper for territorial control of rich deposits of the red metal. Artisanal copper mining is creating much-needed income for impoverished Andean Peruvians even as it brings them into conflict with major miners, a rare and previously unreported trend in the world's No. 2 copper producer.

"This used to happen with silver and gold, but now it's affecting copper," said Raul Jacob, Southern Copper's chief financial officer, bemoaning what the company sees as the government's poor handling of artisanal mining permits.

In Peru, artisanal mining permits have doubled to 80,000 since 2020, government records show. And copper is the new focus.

Southern Copper is not the only mining company in a stand-off with the miners. Chinese-owned MMG Ltd's nearby Las Bambas copper mine is struggling to develop two new open pits because of artisanal miners who have settled on the same land. The company says its current pit is running out.

"Informal mining is entering lands granted to formal (mining) companies and threatening the development of large-scale projects," a source close to MMG told Reuters.

While companies often call small-scale miners "informal" or "illegal," what complicates the matter are two dueling authorizations – one for artisanal mining and another to hold the mining rights to a given area. Mining companies own the latter, known as concessions.

But since 2012 Peru has been granting artisanal mining permits on lands that overlap with concessions, giving the small-scale miners some legal protection, Reuters found after checking the geolocations of the permits and reviewing an internal document in which Peru's mining ministry did the same.

POTENTIAL FOR MORE DISPUTES

Disputes between mining firms and artisanal miners may only increase over time. Peru's leftist administration presented a new framework for artisanal mining last week that declared artisanal mining is "as important" as big mining.

Southern Copper has asked the government to revoke all artisanal mining permits on its concession. About half have now been canceled, causing resentment in Tapairihua.

"We are going to defend ourselves. At the end of the day we are at home, and from home there is nowhere to go," Retamozo, a mining engineer and president of the Tapairihua Mining Association, told Reuters.

While artisanal permits have existed since 2012, lower copper prices that decade meant they were not in demand. But copper has risen more than 60% since 2020 due to demand for electric vehicles.

The surge in artisanal copper mining is forcing the government to review its artisanal permitting system, a mechanism that was meant to be a temporary bridge toward formalization and intended mostly for gold miners.

"Our country is a mining country but we haven't had until now a mining framework that gives a long-term view about small-scale mining," Alberto Rojas, Peru's top mining formalization official, told Reuters

Rojas, however, suggested artisanal miners would lose in a dispute against concession holders.

"Where we have concessions we can't have (artisanal mining permits)," Rojas said. "We can't disavow the concessions that have already been granted."

DIGGERS, TRUCKS

On a recent day in Tapairihua, Reuters visited the artisanal mining operations, where dozens of wood and blue tarpaulin homes were erected, and tunnels supported with wooden beams burrowed into the steep rocky hillside.

In Peru's Andes many feel the copper under the ground is a right, with mining dating back to the Incas and other cultures that existed before Spain's colonization. Tapairihua looks down onto the river Antabamba, meaning "copper plain" in the Andean Quechua language.

Many of the miners are also local subsistence farmers who took up mining in search of income. Many declined to be named because they have been sued by Southern Copper over their mining activities.

To extract copper, they use dynamite to explode rock that they bring out in wheelbarrows and bags. Miners earn 80 soles ($20.61) a day, extracting enough rock to fill a handful of trucks a week, usually containing around 5% copper, though this level can rise as high as 18%.

Gherson Quintanilla arrived in Tapairihua earlier this year with a background in artisanal gold mining. He came because he heard copper was abundant and expertise was low.

"My goal is to extract up to two truckloads a day," he told Reuters.

But artisanal copper mining is not always as small scale.

An internal Las Bambas presentation seen by Reuters estimated informal miners were blasting some 1,950 tonnes of rock per day, almost double their output a year ago.

The report said artisanal miners were using heavy machinery and diggers as well as pneumatic tools.

Overall, it estimated the government has issued 700 permits that overlap with Las Bambas's concession,

But removing those miners is not straightforward. While Las Bambas and Southern Copper hold mining rights – which grants them access to the mineral underground – in most cases they have yet to buy the property rights to the surface terrain.

That limits their options because they cannot file an eviction claim on land they do not own.

The source close to Las Bambas said MMG recognized this difficulty and anticipated it would have to buy out the miners if it wants them to leave the site of its third pit, set to open in 2027 – if there are no delays.

At the site of its second pit, which was supposed to open this year, Las Bambas has filed eviction claims against the miners there because it already owns that particular parcel of land. The company estimates almost a dozen mining sites in the area. Reuters was unable to determine the number of miners working in them.

'FUEL TO THE FIRE'

In May, Southern Copper sued Retamozo and other Tapairihua miners, saying their mining permits were non-compliant.

Weeks later a fire destroyed Southern Copper's local headquarters, which is made up of tents, just minutes downhill from where the small-scale miners are operating. Burned-out cars remain there today.

Nobody was hurt in the fire and no arrests have been made. Peruvian authorities say the matter remains under investigation.

The miners have distanced themselves from the arson, though Retamozo acknowledged the lawsuits have angered them and that some individual members may have acted out of "resentment."

The number of valid artisanal mining permits in Tapairihua has fallen from 100 to 32 since May, according to government records. An internal mining ministry document seen by Reuters shows that the process is under way to revoke the remaining permits.

Retamozo cautioned about what would happen if those were canceled.

"Canceling them would add fuel to the fire," he said. ($1 = 3.8811 soles)

(Reporting by Marco Aquino and Marcelo Rochabrun; Editing by Adam Jourdan and Ross Colvin)

The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of Anglo American plc (LON:AAL) stock is up an impressive 143% over the last five years. It’s also up 25% in about a month.

After a strong gain in the past week, it’s worth seeing if longer term returns have been driven by improving fundamentals.

View our latest analysis for Anglo American

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Anglo American achieved compound earnings per share (EPS) growth of 14% per year. This EPS growth is slower than the share price growth of 19% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that’s hardly shocking given the track record of growth.

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

earnings-per-share-growth

It might be well worthwhile taking a look at our free report on Anglo American’s earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Anglo American’s TSR for the last 5 years was 224%, which exceeds the share price return mentioned earlier. And there’s no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It’s good to see that Anglo American has rewarded shareholders with a total shareholder return of 28% in the last twelve months. That’s including the dividend. That’s better than the annualised return of 26% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we’ve identified 2 warning signs for Anglo American (1 doesn’t sit too well with us) that you should be aware of.

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 GB exchanges.

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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VANCOUVER, BC, Nov. 28, 2022 /CNW/ – Copper Mountain Mining Corporation (TSX: CMMC) (ASX: C6C) (the “Company” or “Copper Mountain”) is pleased to announce that it has received bondholder approval (“Bondholder Approval”) under its US$250 million senior secured bonds (the “Bonds”) for the previously announced sale of its wholly-owned Eva Copper Project and its 2,100km2 exploration land package in Queensland, Australia (the “Transaction”) to Harmony Gold Mining Company Limited (JSE: HAR) (NYSE: HMY) (“Harmony”). See Copper Mountain’s press release dated October 6, 2022 (“Copper Mountain Mining Announces Agreement to Sell the Eva Copper Project and the Australian Exploration Tenements for Total Consideration of up to US$230 Million“) for additional details regarding the Transaction.

The receipt of Bondholder Approval is a condition to the closing of the Transaction. The closing of the Transaction remains subject to certain customary conditions, including Harmony obtaining written correspondence from the Foreign Investment Review Board (FIRB) in Australia that the Australian Government has no objections under the Foreign Acquisitions and Takeovers Act 1975. The Transaction is expected to close no later than the first quarter of 2023.

Summary of Bond Buyback Offer

In connection with obtaining the Bondholder Approval, the Company has agreed, within 30 days after completion of the Transaction, to:

  • Pay a one-time amendment fee of 0.25% of the nominal amount of the outstanding Bonds, on a pro rata basis, to the bondholders; and

  • Make an offer to buyback Bonds for an aggregate minimum principal amount of US$87,000,000 (the “Buyback Offer”) at an offered price of 103.00 per cent of the nominal amount of the Bonds (plus accrued interest on the repurchased amount).

The Buyback Offer will be funded by a portion of the aggregate net cash proceeds CMMC expects to receive from the gross US$170,000,000 cash consideration payable by Harmony on completion of the Transaction.  The Company is relying on anticipated cash flows generated from the Copper Mountain Mine and the net cash proceeds from the Transaction to meet its future cash commitments.

In addition, 100% of the net cash proceeds from any future contingent consideration received by the Company from Harmony pursuant to the Transaction before the maturity date of the Bonds on April 9, 2026 will be applied to either: (i) make further offers to buyback Bonds at an offered price of 103.00 per cent of the nominal amount of the Bonds (plus accrued interest on the repurchased amount) if such contingent consideration is received prior to the applicable interest payment date in April 2024; or (ii) redeem Bonds in accordance with the call terms of the Bonds if such contingent consideration is received on or after the applicable interest payment date in April 2024.

About Copper Mountain Mining Corporation

Copper Mountain’s flagship asset is the 75% owned Copper Mountain Mine located in southern British Columbia near the town of Princeton. The Copper Mountain Mine currently produces approximately 100 million pounds of copper equivalent per year, with expected annual average production to increase to approximately 140 million pounds of copper equivalent.  Copper Mountain trades on the Toronto Stock Exchange under the symbol “CMMC” and Australian Stock Exchange under the symbol “C6C”.

Additional information is available on the Company’s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

“Gil Clausen”

Gil ClausenPresident and Chief Executive Officer

Cautionary Note Regarding Forward-Looking Statements

This news release may contain “forward looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this news release and Copper Mountain does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities legislation.

All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements relate to future events or future performance and reflect Copper Mountain’s expectations or beliefs regarding future events.

In certain circumstances, forward-looking statements can be identified, but are not limited to, statements which use terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “forecasts”, “guidance”, scheduled”, “target” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved” or the negative of these terms or comparable terminology. In this news release, certain forward-looking statements are identified, including anticipated timing for the closing of the Transaction, expected proceeds from the Transaction, entitlement to any contingent consideration under the Transaction, obtaining and satisfying customary conditions (including FIRB approval) for the closing of the Transaction, completion of the Buyback Offer and any future buyback or redemption in connection with any contingent consideration received from Harmony, anticipated production at the Copper Mountain Mine, and expectations for other economic, business and/or competitive factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance, achievements and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the parties’ ability to consummate the Transaction, the ability of the parties to satisfy, in a timely manner, all conditions to the closing of the Transaction, assumptions concerning the Transaction and the operations and capital expenditure plans of the Company following completion of the Transaction, the potential impact of the announcement of the Buyback Offer or the consummation of the Transaction, the diversion of management time on the Transaction, the successful exploration of the Company’s properties in Canada and Australia, market price, continued availability of capital and financing and general economic, market or business conditions, the Company’s ability to comply with its financial covenants under the Bond terms and meet its future cash commitments, extreme weather events, material and labour shortages, the reliability of the historical data referenced in this document and risks set out in Copper Mountain’s public documents, including the management’s discussion and analysis for the quarter ended September 30, 2022 and the annual information form dated March 29, 2022, each filed on SEDAR at www.sedar.com. Although Copper Mountain has attempted to identify important factors that could cause the Company’s actual results, performance, achievements and opportunities to differ materially from those described in its forward-looking statements, there may be other factors that cause the Company’s results, performance, achievements and opportunities not to be as anticipated, estimated or intended. While the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Accordingly, readers should not place undue reliance on the Company’s forward-looking statements.

Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/copper-mountain-mining-receives-bondholder-approval-for-the-sale-of-the-eva-copper-project-and-the-australian-exploration-tenements-and-announces-bond-buyback-offer-301687544.html

SOURCE Copper Mountain Mining Corporation

Cision

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2022/28/c7089.html

By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, Southern Copper Corporation (NYSE:SCCO) shareholders have seen the share price rise 53% over three years, well in excess of the market return (25%, not including dividends). However, more recent returns haven’t been as impressive as that, with the stock returning just 3.6% in the last year , including dividends .

In light of the stock dropping 3.9% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company’s positive three-year return.

View our latest analysis for Southern Copper

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During three years of share price growth, Southern Copper achieved compound earnings per share growth of 20% per year. The average annual share price increase of 15% is actually lower than the EPS growth. So one could reasonably conclude that the market has cooled on the stock.

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

earnings-per-share-growth

We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Southern Copper’s earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Southern Copper’s TSR for the last 3 years was 77%, which exceeds the share price return mentioned earlier. And there’s no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It’s good to see that Southern Copper has rewarded shareholders with a total shareholder return of 3.6% in the last twelve months. And that does include the dividend. However, the TSR over five years, coming in at 11% per year, is even more impressive. Potential buyers might understandably feel they’ve missed the opportunity, but it’s always possible business is still firing on all cylinders. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 2 warning signs for Southern Copper you should be aware of, and 1 of them makes us a bit uncomfortable.

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

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

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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