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Alphabet (GOOG)

Alphabet’s first-quarter revenue jumped 15% as Google’s parent company announced its first-ever dividend of 20 cents a share alongside a $70bn (£56bn) stock buyback.

Google posted $80.5bn in revenue for the first quarter of 2024 and reported $1.89 in earnings per share, up from $1.17 – beating analysts’ expectations on both counts.

The company also announced its first dividend, of $0.20 per share, and said the payout would become quarterly.

“Our leadership in AI [artificial intelligence] research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation,” CEO Sundar Pichai said in the earnings release.

Shares in Alphabet were up roughly 15% in premarket trading. The jump pushed Alphabet’s market cap past $2tn.

Intel (INTC)

Intel reported first-quarter earnings on Thursday that beat Wall Street expectations for earnings per share but the company's Q2 outlook fell short of Wall Street's estimates, sending the stock sliding.

In the first quarter, Intel reported a net loss of $400m, or 9 cents per share, versus a net loss of $2.8bn, or 66 cents per share, last year.

Revenue was $12.7bn versus $11.7bn a year ago, a 9% year-over-year increase.

Intel said it anticipates Q2 revenue of between $12.5bn and $13.5bnn. Analysts were anticipating $13.63bn for the coming quarter. “We are making steady progress against our priorities and delivered a solid quarter,” said CEO Pat Gelsinger.

Microsoft (MSFT)

Microsoft’s heavy bet on AI appears to be paying off as the world’s largest public company reported $61.86bn revenue for the last quarter.

Total revenue increased 17% to $61.86bn during the first three months of 2024, the third quarter of its financial year, surpassing analyst expectations of some $60.88bn. Earnings per share increased 20% to $2.94, ahead of the expected $2.83.

"Microsoft’s AI-powered earnings demonstrate that doubling down on innovation is paying off," Jeremy Goldman, senior director of briefings at Emarketer, told Reuters, pointing to the company's early moves in generative AI, such as its large investment in ChatGPT maker OpenAI.

Sales in Microsoft’s cloud division, its biggest revenue driver that includes its Azure computing platform, climbed 21% during the quarter to $26.7bn, compared with analysts’ forecasts for $26.2bn and above company guidance.

Amazon (AMZN)

Amazon are higher in premarket trading following a pair of strong quarters from mega-cap peers Microsoft and Alphabet.

Amazon is scheduled to report its first-quarter financial results after the US market close on April 30. The company is expected to report earnings of 83 cents per share on revenue of $142.495bn, according to estimates from Benzinga Pro.

Investors should keep an eye out for any fluctuations to the share price at the open following reports that the Federal Trade Commission asked a judge to force Amazon to reveal what it tells company leaders about using the encrypted messaging app Signal to discuss sensitive topics and about preserving documents related to antitrust matters, according to a new court filing.

In September, the FTC filed a suit against Amazon, arguing that the company has illegally maintained a monopoly and artificially raised prices for consumers.

Anglo American (AAL.L)

British mining giant Anglo American has rejected a £31.1bn takeover offer by Australian rival BHP (BHP.L)

The FTSE 100 miner said the bid was “opportunistic” and “significantly undervalues Anglo American and its future prospects”.

The unsolicited approach from BHP would include a structure which “is highly unattractive” for Anglo’s shareholders, “given the uncertainty and complexity inherent in the proposal, and significant execution risks”, the board said.

The bid would have seen BHP pay £25.08 for every Anglo American share, which would include stock in Anglo subsidiaries Anglo Platinum and Kumba Iron Ore.

It would be conditional on Anglo demerging its entire shareholdings in the two businesses to its shareholders.

The board said that it had unanimously rejected the proposal.

Anglo’s shares surged by 16.1% on Thursday after news of the bid emerged, valuing the miner at £31.4bn and above the offer price from BHP.

Watch: Alphabet's dividend an 'olive branch for investors': Analyst

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LONDON, April 26, 2024–(BUSINESS WIRE)–

FORM 8.3

PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY

A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE

Rule 8.3 of the Takeover Code (the "Code")

1. KEY INFORMATION

(a) Full name of discloser:	Elliott Investment Management, L.P
(b) Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.	Elliott International, L.P. Elliott Associates, L.P The Liverpool Limited Partnership
(c) Name of offeror/offeree in relation to whose relevant securities this form relates: Use a separate form for each offeror/offeree	BHP Group Limited
(d) If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree:
(e) Date position held/dealing undertaken: For an opening position disclosure, state the latest practicable date prior to the disclosure	25th April 2024
(f) In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer? If it is a cash offer or possible cash offer, state "N/A"	Anglo American Plc

2. POSITIONS OF THE PERSON MAKING THE DISCLOSURE

If there are positions or rights to subscribe to disclose in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 2(a) or (b) (as appropriate) for each additional class of relevant security.

(a) Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates following the dealing (if any)

Class of relevant security: Ordinary shs : AU000000BHP4	Ordinary
	Interests		Short positions
	Number	%	Number	%
(1) Relevant securities owned and/or controlled:	10,000	0.0002%	3,437,070	0.0678%
(2) Cash-settled derivatives:			199,165	0.0039%
(3) Stock-settled derivatives (including options) and agreements to purchase/sell:
TOTAL:	10,000	0.0002%	3,636,235	0.0717%

All interests and all short positions should be disclosed.

Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions).

(b) Rights to subscribe for new securities (including directors’ and other employee options)

Class of relevant security in relation to which subscription right exists:
Details, including nature of the rights concerned and relevant percentages:

3. DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE

Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

The currency of all prices and other monetary amounts should be stated.

(a) Purchases and sales

Class of relevant security	Purchase/sale	Number of securities	Price per unit
DR (US0886061086)	Sale	400,000	US$ 57.3564

(b) Cash-settled derivative transactions

Class of relevant security	Product description e.g. CFD	Nature of dealing e.g. opening/closing a long/short position, increasing/reducing a long/short position	Number of reference securities	Price per unit
Ordinary	Equity swap	Increasing a short position	49,165	£22.847

(i) Writing, selling, purchasing or varying

Class of relevant security

Product description e.g. call option

Writing, purchasing, selling, varying etc.

Number of securities to which option relates

Exercise price per unit

Type

e.g. American, European etc.

Expiry date

Option money paid/ received per unit

(ii) Exercise

Class of relevant security

Product description

e.g. call option

Exercising/ exercised against

Number of securities

Exercise price per unit

(d) Other dealings (including subscribing for new securities)

Class of relevant security

Nature of dealing

e.g. subscription, conversion

Details

Price per unit (if applicable)

4. OTHER INFORMATION

(a) Indemnity and other dealing arrangements

Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer:

Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state "none"

None

(b) Agreements, arrangements or understandings relating to options or derivatives

Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person relating to:

(i) the voting rights of any relevant securities under any option; or

(ii) the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced:

If there are no such agreements, arrangements or understandings, state "none"

None

Is a Supplemental Form 8 (Open Positions) attached?

Date of disclosure:	26th April 2024
Contact name:	Michael Cross
Telephone number:	0203 009 1306

Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.

The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s disclosure requirements on +44 (0)20 7638 0129.

The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240426998363/en/

Contacts

Elliott Advisors (UK) Limited

(Bloomberg) — BHP Group Ltd.’s $39-billion bid to create a global copper giant risks irking its biggest customer China, where authorities have a history of intervening to stymie or water down international mergers.

Most Read from Bloomberg

A takeover of Anglo American Plc. would catapult BHP into the top spot for copper producers, with 10% or more of the world’s output. That could be a red flag for Beijing, which has long bemoaned China’s weak purchasing power against the miners that dominate trade in raw materials.

“This may invite close scrutiny from a competition perspective, specifically China’s smelting industry,” Bloomberg Intelligence analysts Grant Sporre and Alon Olsha wrote in a note. The deal comes just as Chinese copper processors are struggling to turn a profit on supplies from miners like BHP.

China’s State Administration For Market Regulation didn’t immediately respond to a faxed request for comment.

The potential for Chinese involvement, perhaps by forcing asset sales in exchange for approval, is among a swathe of challenges that BHP Chief Executive Officer Mike Henry faces in pulling off an ambitious but complex deal. Foremost, of course, is Anglo’s rejection of the bid, which it says significantly undervalues the company.

In 2013, Chinese regulators ordered Glencore Plc to offload a major new copper project in Peru to get approval for its $30 billion takeover of Xstrata Plc. Before that, Beijing helped frustrate BHP’s mega-bid to buy rival Rio Tinto Plc, a $147 billion deal that ultimately collapsed.

The Glencore-Xstrata case offers a precedent, according to Ying Song, partner at Anjie Broad Law Firm who has advised international clients in cases involving China’s antitrust authorities.

“For copper production, the Chinese market relies on global supply to a great extent, so my preliminary impression is that this case would be scrutinized under what’s called the normal procedure,” Song said.

The State Administration for Market Regulation, which oversees competition cases, would seek opinion from industry regulators like the Ministry of Industry and Information Technology, as well as experts, downstream consumers and industry bodies such as the China Nonferrous Metals Association.

Copper’s applications in advanced manufacturing and items crucial to the energy transition, such as solar panels and batteries, are likely to sharpen Beijing’s interest in the acquisition, given China’s dominance of the world’s clean energy and electric vehicle sectors.

Other aspects may draw less attention. Although a combined BHP-Anglo steelmaking coal business could account for as much as 19% of all seaborne shipments — most of which end up in China — that’s still less than BHP’s share in 2022, according to Bloomberg Intelligence.

–With assistance from Yujing Liu and William Clowes.

(Updates with comments from lawyer in seventh paragraph)

Most Read from Bloomberg Businessweek

(Bloomberg) — BHP Group Ltd.’s bid to spin off Anglo American Plc’s South African assets as part of a takeover proposal shows how the economic policies of the ruling African National Congress have undermined investor confidence in the country, the main opposition party said.

Most Read from Bloomberg

The offer by BHP envisages Anglo offloading majority stakes in Anglo American Platinum Ltd., the world’s largest miner of the metal by market value, and Kumba Iron Ore Ltd. to shareholders. Anglo on Friday rejected the £31.1 billion ($38.7 billion) proposal by BHP because it “significantly undervalues” the company.

South Africans head to the polls next month in an election in which the ANC is at risk of losing its national majority for the first time since coming to power three decades ago. It’s hemorrhaging support because of voter dissatisfaction with its management of the economy, including the collapse of state rail and port infrastructure that has hampered mining exports.

“You cannot force a business to do business with you or stay in your country or in your jurisdiction,” Dion George, shadow minister of finance for the Democratic Alliance, said at a briefing in Johannesburg on Friday. “This a very sorry indictment of what we have under the ANC government’s failed and misguided economic policy.”

South African Mineral Resources and Energy Minister Gwede Mantashe, who also serves as the chairman of the ANC, signaled his opposition to the proposal.

“I wouldn’t support it,” Mantashe said by phone on Thursday. “I don’t think Anglo will agree to that. I wouldn’t if I was on the board.”

South Africa’s mining industry is already in a fragile state in a country with one of the world’s highest unemployment rates. Platinum mines, including those owned by Anglo’s subsidiary, either have already cut thousands of jobs or are considering following suit. The upheaval that may result from a successful takeover by BHP, which has divested from the country, adds another concern for labor unions even if the shares in the iron ore and platinum units would be distributed among Anglo’s existing shareholders under BHP’s rebuffed proposal.

Ultimately, whoever ends up owning Amplats and Kumba will have to interact with underperforming state-owned power company Eskom Holdings SOC Ltd. and port and rail company Transnet SOC Ltd. Both have impaired mining productivity, from unreliable power supply to a lack of trains to move mineral exports.

“If you look at the political landscape of the country itself, it’s not giving any confidence to any person,” said Joseph Mathunjwa, president of the Association of Mineworkers and Construction Union, the largest labor group in the platinum industry.

Anglo was founded in 1917 by entrepreneur and philanthropist Ernest Oppenheimer on the back of South Africa’s giant gold mines, before moving into diamonds, platinum and coal. Last year, AngloGold Ashanti Ltd. — a company formed in 1998 through the combination of Anglo American’s gold assets — moved its primary listing to New York.

“The problem here with the Anglo sale, the reason why they are doing it, is because they’ve lost confidencBHP Makes $39 Billion Anglo Approach to Create Mining Giante in our economy and they’re buying forward cover in case we have a massive problem after May 29,” George said.

Most Read from Bloomberg Businessweek

(Bloomberg) — Elliott Investment Management has built a roughly $1 billion stake in Anglo American Plc, the UK-listed miner that’s received an unsolicited takeover approach from Australia’s BHP Group Ltd.

Most Read from Bloomberg

The activist hedge fund led by Paul Singer has exposure to almost 33.6 million Anglo American shares via derivatives, according to a UK regulatory filing Friday that confirmed a report by Bloomberg News. The firm amassed the 2.5% holding over recent months, according to people familiar with the matter, who asked not to be identified discussing confidential information.

The investment puts Elliott among Anglo American’s 10 biggest shareholders, data compiled by Bloomberg show. Anglo American shares jumped as much as 6.3% in London after Bloomberg News reported the stake.

Elliott also has a 0.07% short position in BHP, a separate filing shows. Representatives for Elliott and Anglo American declined to comment.

Elliott’s presence in Anglo American’s stock emerges with the mining company the subject of takeover interest from BHP. The Australian miner has proposed an acquisition that values its smaller rival at £31.1 billion ($38.9 billion) and would create the world’s top copper producer. Bloomberg News reported BHP’s approach on Wednesday. Anglo American said the proposal significantly undervalues the company.

Singer’s firm is known for stepping in to beaten-down stocks and then pushing companies to take measures ranging from share buybacks to outright sales of the business.

“We like to see value-driven investors in the register,” said Giuseppe Bivona, chief investment officer at another activist, Bluebell Capital Partners, which built a stake in Anglo American in February. The company “is surely worth much more than BHP is offering.”

But suitors have been put off by its complicated structure and mix of other commodities, as well as its deep exposure to South Africa. In February, Anglo American reported a steep drop in profit and lowered its dividend on the back of falling demand for diamonds and platinum group metals — commodities that are unique to its portfolio.

BHP has proposed an all-share deal in which Anglo would first spin off controlling stakes in South African platinum and iron ore companies to its shareholders.

Read More: Anglo’s Stumbles Make It Prey for Mining’s Biggest Predator

Shares in Anglo American closed 3.2% higher in London on Friday at 2,643.00 pence, giving it a market value of about £32.4 billion. The stock surged 16% Thursday after BHP’s approach. Even after this week’s rally, the stock is still down more than a third from its peak two years ago.

Elliott took a sizable position in BHP in 2017 and pushed it to spin off certain oil assets. In 2021, the miner struck deals that extended its withdrawal from fossil fuels, including a sale of oil and gas operations to Woodside Petroleum Ltd.

Singer’s firm has been involved with other metals companies as well. In 2022 Elliott held talks with Kinross Gold Corp. that resulted in the miner announcing a $300 million share buyback. And it’s the majority shareholder in Triple Flag Precious Metals Corp., which provides financing for mining companies. It’s also setting up a new venture, Hyperion, to invest in mining assets.

–With assistance from Thomas Biesheuvel, Fareed Sahloul and Nishant Kumar.

(Updates Anglo’s closing price in 11th paragraph.)

Most Read from Bloomberg Businessweek

Elliott Investment Management has amassed a roughly $1 billion stake in Anglo American Plc, adding another twist to the drama sparked by BHP Group’s unsolicited takeover approach for the mining company, Bloomberg’s Crystal Tse tells Sonali Basak on “Bloomberg Markets.”

Teck Resources TECK reported first-quarter 2023 adjusted earnings per share (EPS) of 56 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line marked a 58% plunge from earnings of $1.32 per share reported in the year-ago quarter. Gains from increased prices for steelmaking coal and higher copper sales volumes were offset by lower zinc and copper prices and lower steelmaking coal sales volumes. Earnings were also impacted by increased unit costs at the steelmaking and Quebrada Blanca (QB) operations.

Including one-time items, EPS from continuing operations was 48 cents in the first quarter of 2024 compared with $1.65 in the year-ago quarter. This reflected the reduced ownership of Elk Valley Resources (“EVR”), lower copper and zinc prices, and higher unit costs at steelmaking coal and QB operations. Also, finance expenses and depreciation and amortization expenses were higher year over year as the depreciation of a majority of the QB assets has started and interest capitalization ceased.Net sales amounted to around $2.96 billion compared with $2.8 billion in the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $2.99 billion.

The gross profit was CAD$1.29 billion ($0.95 billion), marking a 22.6% plunge from the year-ago quarter. The gross margin was 32.3% compared with the year-ago quarter’s 44%.

Teck Resources Ltd Price, Consensus and EPS SurpriseTeck Resources Ltd Price, Consensus and EPS Surprise

Teck Resources Ltd price-consensus-eps-surprise-chart | Teck Resources Ltd Quote

The adjusted EBITDA was CAD$1.69 billion ($1.25 billion), which marked a 14% decline from the year-earlier period. The EBITDA margin was 42.5% in the quarter under review compared with the year-ago quarter’s 52.1%.

Segment Performances

The Steelmaking Coal segment reported sales of CAD$2.37 billion ($1.75 billion), reflecting a year-over-year increase of 1.5%. First-quarter sales volumes were reported at 5.9 million tons, down 5% due to extreme cold weather in January as well as rail impacts in the first two months of the year. This was somewhat offset by higher steelmaking prices.

The segment reported a gross profit of CAD$1.12 billion ($0.8 billion), which was down 12% from the first quarter of 2023 due to higher unit operating costs and lower sales volumes, partially offset by higher realized steelmaking coal prices.

The Copper segment’s net sales surged 41% year over year to CAD$1.08 billion ($0.8 billion) in the reported quarter, attributed to higher production offset by lower copper prices.

Copper production for the first quarter was reported at 99,000 tons, 74% higher than the first quarter of 2023. Copper in concentrate production from QB was at 43,300 tons, reflecting the ongoing ramp-up. Improved performances at Antamina and Highland Valley Copper were offset by lower output at Carmen de Andacollo due to the extreme drought conditions.

The segment’s gross profit was CAD$106 million ($79 million) in the reported quarter, which marked a 59% plunge from the year-ago quarter. This was attributed to lower copper prices and the loss incurred at QB, as it is progressing ramp-up of production and the company has commenced depreciation of the operating assets.

The Zinc segment’s net sales were down 12% year over year to CAD$541 million ($401 million) in the reported quarter as higher production levels were offset by owing to lower zinc prices. The segment’s gross profit marked a significant year-over-year drop of 51% to CAD$63 million ($47 million).

Cash Flow & Balance Sheet

Teck Resources generated a cash flow of CAD$0.04 billion ($0.03 billion), which was substantially down compared with $1.09 billion ($0.8 billion) of cash flow in the first quarter of 2023. The company had cash and cash equivalents of CAD$1.3 billion ($0.9 billion) at the end of the first quarter of 2024 compared with CAD$0.7 billion ($0.5 billion) at the end of 2023. The company’s debt was CAD$6.17 billion ($4.52 billion) at the end of the first quarter of 2024.

TECK returned around CAD$145 million ($107 million) to shareholders in the first quarter through the purchase of CAD$80 million ($59 million) of Class B subordinate voting shares under its normal course issuer bid, and CAD$65 million ($58 million) as dividends.

Guidance

Teck Resources expects steelmaking coal production to be between 24 million tons and 26 million tons in 2024. Copper production is anticipated to be 465,000-540,000 tons. Zinc production is projected between 565,000 tons and 630,000 tons. Refined zinc output is estimated between 275,000 tons and 290,000 tons.

For second-quarter 2024, the company expects sales of zinc in concentrate of 50,000-60,000 tons at Red Dog. Steelmaking coal sales are projected to be 6.0-6.4 million tons for the quarter.

Update on Sale of Steelmaking Coal Unit

On Nov 13, 2023, Teck Resources announced that it has agreed to sell its entire stake in its steelmaking coal business, EVR, for an implied enterprise value of $9 billion. The majority of the sale (77%) will be made to Glencore plc GLNCY, 20% to Nippon Steel Corporation and 3% to POSCO PKX.Nippon Steel Corporation completed the acquisition of the 20% interest in EVR on Jan 3, 2024, with a payment of $1.3 billion in cash to Teck. On Jan 3, 2024, POSCO exchanged its 2.5% interest in Elkview Operations and 20% stake in the Greenhills joint venture for a 3% interest in EVR. The sale to Glencore is expected to close by the third quarter of 2024. Until the deal is closed, Teck will continue to operate the steelmaking coal business and will retain all cash flows.Proceeds will be used to strengthen TECK’s balance sheet while returning cash to shareholders. It will help the company focus on growing its extensive copper portfolio and thereby capitalize on the energy transition trend.

Price Performance

The company’s shares have gained 8.4% in the past year compared with the industry’s 8.9% growth.

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Stock to Consider

Teck Resources currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the basic materials space is Avient AVNT, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Avient’s current fiscal year earnings is pegged at $2.55 per share, indicating year-over-year growth of 8%. AVNT beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 7.1%. The company’s shares have gained around 15% in the past year.

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POSCO (PKX) : Free Stock Analysis Report

Glencore PLC (GLNCY) : Free Stock Analysis Report

Teck Resources Ltd (TECK) : Free Stock Analysis Report

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To read this article on Zacks.com click here.

Zacks Investment Research

Teck Resources Limited (TSE:TECK.B) just released its latest quarterly report and things are not looking great. Results showed a clear earnings miss, with CA$4.0b revenue coming in 6.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of CA$0.65 missed the mark badly, arriving some 26% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Teck Resources

earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from Teck Resources' ten analysts is for revenues of CA$15.8b in 2024. This reflects a satisfactory 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 60% to CA$4.97. Before this earnings report, the analysts had been forecasting revenues of CA$16.9b and earnings per share (EPS) of CA$5.21 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of CA$68.17, suggesting the downgrades are not expected to have a long-term impact on Teck Resources' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Teck Resources at CA$88.00 per share, while the most bearish prices it at CA$45.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Teck Resources' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 8.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Teck Resources.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CA$68.17, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Teck Resources going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Teck Resources (1 makes us a bit uncomfortable!) that you should be aware of.

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.

BHP will have to sweeten its offer for Anglo American if it wants to succeed in its takeover of the diversified international miner with stakes in three big South American copper mines.

Freeport-McMoRan Inc. (NYSE:FCX) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Freeport-McMoRan delivered a significant beat with revenue hitting US$6.3b and statutory EPS reaching US$0.32, both beating estimates by more than 10%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Freeport-McMoRan

earnings-and-revenue-growth

After the latest results, the 15 analysts covering Freeport-McMoRan are now predicting revenues of US$25.1b in 2024. If met, this would reflect an okay 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 37% to US$1.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$24.3b and earnings per share (EPS) of US$1.63 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a an okay to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

There's been no major changes to the price target of US$50.87, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Freeport-McMoRan, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$39.20 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Freeport-McMoRan shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Freeport-McMoRan's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.8% per year. So it's pretty clear that, while Freeport-McMoRan's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$50.87, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates – from multiple Freeport-McMoRan analysts – going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Freeport-McMoRan you should be aware of.

Copper stocks and commodity prices have surged. Anglo American a London-based diversified miner that derived about a quarter of its 2023 sales of $24.3 billion from copper, has confirmed and turned down a $39 billion offer from Australian mining firm BHP Group. Anglo American stock is up about 20% since news of the offer broke.

Net Income: Reported at $736.0 million, down 9.5% from $813.2 million in 1Q23, but significantly up from $445.0 million in 4Q23, surpassing the estimated $562.0 million.
Revenue: Totaled $2,599.8 million, a decrease of 6.9% from $2,793.9 million in 1Q23, but exceeded the estimated $2,368.5 million.
Earnings Per Share (EPS): Recorded at $0.95, decreasing from $1.05 in 1Q23 and above the estimated $0.74.
Adjusted EBITDA: Reached $1,417.7 million, down 9.6% from $1,567.9 million in 1Q23, yet showing a robust increase of 34.3% from 4Q23.
Cash Flow from Operating Activities: Increased by 22.0% to $659.9 million from $540.9 million in 4Q23, although it was 55.7% lower than $1,185.2 million in 1Q23.
Copper Production: Grew by 2.6% quarter-over-quarter, with significant contributions from the Buenavista mine.

Warning! GuruFocus has detected 7 Warning Signs with SJW.

On April 26, 2024, Southern Copper Corp (NYSE:SCCO) disclosed its first-quarter financial results through its 8-K filing. The company, a leading integrated producer of copper and other minerals, reported a net income of $736.0 million for Q1 2024. This figure represents a 9.5% decrease from the $813.2 million recorded in Q1 2023, yet a substantial 65.4% increase from $445.0 million in Q4 2023. The reported earnings per share (EPS) of $0.95 fell short of the analyst estimate of $0.74 for the quarter.

Southern Copper Corp (SCCO) Q1 2024 Earnings: Mixed Results Amidst Market Challenges

Despite the challenges posed by declining metal prices, which saw copper prices drop by 5.4% and molybdenum by a significant 38.1%, SCCO managed to increase its copper production by 2.6% quarter-over-quarter, primarily due to enhanced outputs at the Buenavista mine. However, the overall sales volume for zinc and silver saw a decrease, impacting the net sales which totaled $2,599.8 million, down by 6.9% from the previous year.

Operational Highlights and Financial Health

The company's adjusted EBITDA for the quarter was $1,417.7 million, a decrease of 9.6% year-over-year but an increase of 34.3% from the previous quarter. This reflects a robust adjusted EBITDA margin of 54.5%, although slightly lower than the 56.1% recorded in Q1 2023. The net income margin also experienced a slight contraction, settling at 28.3% compared to 29.1% in the same quarter the previous year.

Operational efficiency was evident in the 22.0% increase in cash flow from operating activities, which amounted to $659.9 million. This improvement is attributed to higher sales and stringent cost-control measures. However, it's important to note that the cash flow was significantly lower by 55.7% compared to Q1 2023, primarily due to a $310.8 million increase in working capital, driven by the company's Mexican operations.

Strategic Investments and Future Outlook

Southern Copper continues to invest heavily in strategic projects to bolster future growth. The company's capital investment program surpasses $15 billion, focusing on significant projects like the Tia Maria and Los Chancas in Peru, and the Buenavista Zinc and El Arco in Mexico. These investments are crucial for the company's long-term strategy to enhance its production capacity and operational efficiency.

Chairman of the Board, Mr. German Larrea, highlighted the company's resilience amidst market volatility. He noted, "This quarter our strengths are once again at the forefront as we report a 65% increase in net earnings compared to 4Q23. This positive result was driven by a 2.6% uptick in copper production; a 14.2% drop in the cash cost; and higher metal prices for copper (+3.2%), molybdenum (+7.8%) and precious metals."

Environmental and Social Governance (ESG) Initiatives

SCCO is also making significant strides in its ESG commitments. The company was included in S&P Global's Sustainability Yearbook for the third consecutive year, ranking among the top 15% of the best-rated companies in sustainability in the mining and metals sector. This recognition underscores Southern Copper's ongoing efforts to integrate sustainable practices into its operations and corporate strategy.

In conclusion, while Southern Copper faced challenges due to fluctuating metal prices and increased operational costs, its strategic investments and operational efficiencies paint a promising picture for its future. The company's focus on sustainable growth and cost management is expected to support its performance in the evolving global metals market.

Explore the complete 8-K earnings release (here) from Southern Copper Corp for further details.

This article first appeared on GuruFocus.

(Bloomberg) — Southern Copper Corp. raised its annual production guidance as ore quality improves and the company resolves water supply issues in Mexico, offering a little relief for a tightening global copper market.

Most Read from Bloomberg

The world’s fifth-largest supplier of the wiring metal expects to produce 948,800 metric tons this year, Chief Financial Officer Raul Jacob told analysts on a conference call Friday. That would be 4.1% more than last year’s result and compares with a projection of 935,900 tons a quarter ago.

The more optimistic guidance follows back-to-back reductions to its projections and comes as copper prices surge to two-year highs partly on concerns that mines will struggle to meet growing demand for the metal in the shift away from fossil fuels.

That strong demand outlook coupled with industrywide supply disappointments are signaling “attractive copper prices,” Southern Copper Chairman German Larrea said in the earnings statement.

Most Read from Bloomberg Businessweek

(Adds details from call, CFO quote, prior forecasts, share price)

April 26 (Reuters) – Grupo Mexico expects its Southern Copper mining arm to produce over 1 million metric tons of copper by 2027, the division's finance chief said on Friday, pointing to better-than-expected production from its portfolio of projects.

The company also edged up its forecasts for this year, predicting output of 949,000 tons, said Leonardo Contreras, the unit's chief financial officer, in an earnings call.

The executive estimated that output of the key industrial metal from the division's projects will then dip to 920,000 tons over the next two years as the miner ramps up projects to reach production of 1.02 million tons by 2027.

Earlier this year, Grupo Mexico predicted output of 935,900 tons of copper for 2024, up from the 911,014 tons produced last year.

"One of the reasons we are upgrading our numbers is because we are seeing a much better (project) execution than before," said Contreras.

This comes a day after Grupo Mexico

reported a slide in its first-quarter earnings

, dragged down by lower mining division sales, which it attributed to lower prices for base metals copper, molybdenum and zinc.

Grupo Mexico stock rose 3.6% on Friday to close at 106.71 pesos per share.

The mining and transport conglomerate is one of the world's largest copper producers, with mines in Peru, the United States, Spain and its home base of Mexico. The firm is controlled by billionaire German Larrea. (Reporting by Marion Giraldo; Editing by David Alire Garcia)

Teck Resources Ltd

VANCOUVER, British Columbia, April 25, 2024 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that its Board of Directors has declared an eligible dividend of $0.125 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on June 28, 2024 to shareholders of record at the close of business on June 17, 2024.

About TeckAs one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.

Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations & Strategic Analysis604.699.4621fraser.phillips@teck.com

Media Contact:Chris Stannell Public Relations Manager604.699.4368chris.stannell@teck.com

BHP Group Limited

BHP and Carlton Trail College MOU Signing

Photo (L-R): Amy Yeager, Carlton Trail College President and CEO; Deanna Gaetz, Carlton Trail College Business and Skills Training Director; Phillip Tysoe Lead Principal Training, BHP; Bianca Matthews, Manager Organizational Readiness, BHP; Jennifer Fafard, Coordinator Training, BHP

SASKATOON, Saskatchewan, April 25, 2024 (GLOBE NEWSWIRE) — BHP and Carlton Trail College are pleased to announce that they have signed a Memorandum of Understanding (MOU) to enhance educational and training opportunities for the mining industry in Saskatchewan. BHP and Carlton Trail College have worked together for several years, partnering to deliver pre-apprenticeship and related industry training. The signing of this MOU is an exciting next step that advances the partnership and mining training opportunities in the province.

The MOU outlines initial steps in the development of an industry-leading, immersive training program. The program will be aligned to existing provincial curriculum and pathways available through Carlton Trail College, such as the Mining Essentials which was created in 2010 by the Mining Industry Human Resources Council (MiHR) and the Assembly of First Nations (AFN).

“This is a very exciting time for the province of Saskatchewan with several projects, like BHP’s Jansen potash mine driving economic growth. At Jansen alone we have 800 site-based roles. The opportunity for people of all backgrounds to build a meaningful and rewarding career in the trades is immense – and access to training in local communities helps open the door,” said Graham Reynolds, General Manager of Operational Readiness, BHP.

“The demand for skilled tradespeople, especially in the mining industry, will only increase in the coming years,” said Amy Yeager, Carlton Trail College President and CEO. “By focusing on training for trades that are needed now and into the future, this partnership offers an exciting opportunity to enhance our impact, work more cooperatively with industry and contribute to a stronger Saskatchewan.”

As part of Saskatchewan’s post-secondary sector, Carlton Trail College already works with mining and related industry partners to help provide training and workforce development solutions to some of the labour force challenges that are being experienced.

By working together in a more coordinated manner with BHP and others, the partnership looks towards the future as it seeks to establish a responsive, long-term industry training model to build an inclusive, skilled and sustainable mining workforce.

About BHP

BHP is a global resources company with its Canadian operational headquarters in Saskatoon, Saskatchewan and global business development headquarters in Toronto. BHP has a global workforce of approximately 80,000 people working in locations across Canada, Australia, Asia, the UK, US and Latin America. BHP produces commodities essential for global decarbonization, economic development and food security including copper, nickel, iron ore, metallurgical coal and is developing the Jansen potash project in Saskatchewan, Canada.

Further information on BHP can be found at: bhp.com

About Carlton Trail College

Established in 1973, Carlton Trail College offers in-depth, applied learning to provide post-secondary education and skills training, academic upgrading and essential skills courses, English Language Training, as well as industry and workforce development to individuals, businesses and organizations across east-central Saskatchewan.

Further information about Carlton Trail College can be found at: carltontrailcollege.com.

For media inquiries, contact:

Megan Hjulfors, BHPMedia RelationsTel (403) 605-2314

Jennifer Brooks, Carlton Trail CollegeAdvancement and External AffairsTel (306) 682-6851Email brooksj@carltontrailcollege.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/69c5774e-7c21-4bcd-a956-f1a5e72cf2e0

By Sinead Cruise, Kirstin Ridley and Samuel Indyk

LONDON (Reuters) – Anglo American's London-listed shares spiked in late UK trade on Wednesday, hours before the miner announced a $39 billion bid by rival BHP Group, raising questions from some lawyers, investors and commentators about possible leaks.

Shares in Anglo rose by around 2.8% between 1500 GMT and the market close at 1530 GMT in London on Wednesday. Anglo issued a statement around 2300 GMT saying it had received an approach from BHP.

The late bounce before the bid proposal was revealed, which if successful would forge the world's biggest copper miner, contrasted with modest share price gains of between 0.2-0.5% at Anglo's peers Rio Tinto, Glencore and Antofagasta in the 35 minutes before the London market closed.

"This spike in Anglo's share price before the public announcement of the BHP bid raises questions about the integrity of the UK's markets which the Financial Conduct Authority (FCA) are likely to want to investigate," said Harvey Knight, head of the financial services regulatory group at law firm Withers LLP.

Britain's FCA does not typically comment on individual trading irregularities which it investigates and declined to comment on whether it would review the activity.

In a statement emailed to Reuters, the regulator said it "cannot comment on individual cases".

A spokesperson for Anglo American declined to comment when asked whether the company had contacted the FCA about any potential irregular trading or whether the regulator had been in touch.

"The price spiked significantly. Someone was either very lucky or very knowledgeable," said Richard Bernstein, chief investment officer of activist investor Crystal Amber.

Shares in miners like Anglo can move sharply following changes in commodity prices, or major currencies like sterling and the U.S. dollar.

Regulated companies and individuals in Britain have an obligation to detect and report suspicious trading if there are reasonable grounds to suspect market abuse, such as insider dealing or market manipulation.

"Between private chat networks, secure texting apps, and even burner phones, there are many more ways for material, non-public information to be shared via undetected means than there ever were previously," Peter C. Earle, Senior Economist, The American Institute for Economic Research, told Reuters.

"The financial markets are in an information dissemination arms race. Some of it is above board, and some of it below."

(Reporting By Sinead Cruise, Kirstin Ridley and Samuel Indyk; Additional reporting by Amanda Cooper and Nell Mackenzie Editing by Elisa Martinuzzi and Elaine Hardcastle)

By Clara Denina, Amy-Jo Crowley and Anousha Sakoui

LONDON (Reuters) -Anglo American's management does not consider a proposed $39 billion takeover offer from BHP Group as attractive, two sources told Reuters, as some investors and analysts dismissed it as opportunistic.

BHP on Thursday offered Anglo's shareholders 25.08 pounds ($31.39) per share, or $38.8 billion, a premium of 31% to the market close on Wednesday. It would take over Anglo after a spin-off of two assets.

Speaking on condition of anonymity because the matter is private, one of the sources said the offer did not address the complexities of demerging the Anglo American Platinum and Kumba Iron Ore businesses in South Africa.

BHP has until May 22 to come back with a binding bid.

Anglo, which has a market value of $36.7 billion, said it would be reviewing the offer, without elaborating.

The proposed tie-up would create a group with around one tenth of the global output of copper, which is in demand for its use in electric vehicles and new technologies, such as automation and artificial intelligence.

BHP has made the offer as Anglo continues a strategic review of its assets started in February in response to a 94% fall in annual profit and a series of writedowns caused by to lower commodity demand.

One of the sources said Anglo's management was continuing "full steam ahead" with the review.

The company has also been looked for other ways to strengthen its position.

Two sources close to the matter said Anglo American in March picked investment bank RBC Capital Markets to begin a syndication process for its costly Woodsmith fertiliser project in northeast England, accelerating the search for an investor to share the $9 billion capital cost.

RBC was not immediately available to comment.

Another source said Anglo American was looking for partners for its diamonds De Beers business, which is among the assets BHP has said it would review after completion of any deal.

Analysts, meanwhile, also said the offer was probably not enough and that Anglo American's assets could be a better fit for othe major mining companies.

"This (BHP's) offer isn't enough to get either the board or the shareholders over the line," Liberum analyst Ben Davis said.

Analysts at Deutsche Bank said the "strategic rationale" of a merger could be as strong for Rio Tinto and Glencore.

"The proposed offer by BHP could potentially spur alternative bidders to enter the frame," they said.

Rio Tinto and Glencore both declined to comment on any possible interest and BHP declined to give any additional details beyond its offer.

Nichola Stein, portfolio manager at Coronation Fund Managers, which holds Anglo American shares, was also dismissive.

"The offer price appears quite opportunistic, especially when they say: get rid of the stuff we don't want before it …even goes through, making it conditional on that," Stein said.

(Reporting by Clara Denina, Pratima Desai, Amy-Jo Crowley, Anousha Sakoui; additional reporting by Felix Njini. Editing by Veronica Brown and Barbara Lewis)

April 25 (Reuters) – Brazilian miner Vale SA sees no impact from BHP Group's bid for Anglo American on the latter's Minas-Rio project, its CEO, Eduardo Bartolomeu, said on Thursday.

"We don't see any impact on the Minas-Rio deal. It's being done, of course, by Anglo and will be respected by whoever comes after, if they come after," said the CEO, during a conference call with analysts on the firm's first-quarter results.

Questioned about potential interest in Anglo's assets, Bartolomeo also said that Vale would "clearly" be interested, but that it has "better options in-house".

"We are much more interested in accelerating and executing our projects," said the executive.

(Reporting by Marta Nogueira; Editing by Steven Grattan)

South Africa has thrown a £31bn bid for mining titan Anglo American into immediate doubt after a minister criticised the deal.

Gwede Mantashe, South Africa’s minerals resources minister, said he was against the takeover of Anglo by rival BHP Billiton, because the country’s experience with the company was “not positive”.

Mr Mantashe said BHP’s merger with South African miner Billiton in 2001, which led to the formation of BHP Billiton, “never did much for South Africa”.

Speaking to the Financial Times, he said: “What we saw is that it dumped coal and then created a small company called South32, which is now marginal.”

The comments suggest the takeover bid, which would create the world’s largest copper miner, is likely to face fierce political opposition in Johannesburg during an election year.

Anglo employs 36,000 people in South Africa, and the miner is deeply enmeshed in the fabric of the country.

BHP stunned the market by unveiling a complex £25.08 per share bid for rival Anglo in a deal which would reshape the global mining sector.

Anglo shareholders have been offered BHP shares worth £16.60. The remainder will be in shares in Amplats and Kumba, Anglo’s two South African listed subsidiaries.

The takeover would be in two steps, with Amplats and Kumba demerged to Anglo’s shareholders before BHP takes over the remainder.

BHP faced an immediate backlash from investors, who said the bid undervalued the company.

Abrdn fund manager Iain Pyle said the £25.08 bid was “opportunistic offer” seeking to take advantage of Anglo’s recent operational weakness.

“To fully reflect the longer term value of the assets it would need to be higher,” he said.

Nick Stansbury, from Legal & General Investment Management which is Anglo American’s eleventh largest shareholder, described the bid as a “highly opportunistic approach”.

A top 20 Anglo shareholder added: “The probability of BHP winning the deal at this price (£25.08) is zero. It’s a question about whether BHP is being opportunistic or if it’s more serious. If it’s more serious, they need to put up more money.”

South Africa’s Public Investment Corporation (PIC), Anglo’s biggest shareholder, also said it would study the offer carefully.

Anglo has been under pressure since a shock cut to production guidance in December sent shares crashing.

BHP’s approach could lead to a partial break-up of the group.

“It likely acts as a catalyst for management to think about how best to realise value from a diverse portfolio. Selling off assets individually may be a realistic way to create more value,” said My Pyle.

The company is considering a sale of De Beers to release cash as part of its defence, according to a report in the Wall Street Journal.

De Beers is valued at about $6.4bn, according to HSBC.

News of the bid had sparked anxiety inside De Beers, industry sources told the Telegraph.

The diamond miner has not been considered particularly profitable for the past two to three years and it has had to make greater financial concessions to the government in Botswana, where it still has decades of reserves left in the ground.

(Bloomberg) — BHP Group Ltd. proposed a takeover of Anglo American Plc that valued the smaller miner at £31.1 billion ($38.9 billion), in a deal that would create the world’s top copper producer while sparking the industry’s biggest shakeup in over a decade.

Most Read from Bloomberg

BHP, already the largest miner, proposed an all-share deal in which Anglo would first spin off controlling stakes in South African platinum and iron ore companies to its shareholders before being acquired by BHP. The total per-share value of the non-binding proposal was about £25.08, BHP said.

A tie-up with Anglo would give BHP roughly 10% of global copper mine supply ahead of an expected shortage that many market watchers have predicted will send prices soaring. If successful, the transaction would mark a return to large-scale dealmaking for BHP, while potentially flushing out other suitors aiming to boost their exposure to the metal that’s closely linked to the global energy transition.

Read: Anglo American Share Price Shows Traders Envisage Sweeter Bid

Anglo shares jumped 14% in London on Thursday to £25.07 apiece, for a market value of £30.7 billion. The company said in a statement late Wednesday that its board was reviewing the proposal, which it confirmed after Bloomberg first reported BHP’s interest. BHP, which has a value of about $146 billion, fell 2.6%.

Anglo American has long been viewed as a potential target among the largest miners, particularly because it owns attractive South American copper operations at a time when most of the industry is eager to add reserves and production. However, suitors have been put off by its complicated structure and mix of other commodities from platinum to diamonds, and especially its deep exposure to South Africa.

Read: Anglo Must Push BHP Right Up to the Pain Barrier: Chris Hughes

Anglo has faced a series of major setbacks over the past year as prices for some of its key products plunged, while operational difficulties have forced the company to slash its production targets — driving down its valuation and leaving the company vulnerable to potential bidders.

Read: Anglo American Posts Steep Profit Fall and Lowers Dividend

Still, analysts suggested that BHP may need to raise its offer — Anglo shares were trading above £30 early last year.

“We would be surprised if this is BHP’s final offer,” analysts from Jefferies LLC led by Christopher LaFemina said in an emailed note. “We estimate that a price of at least £28/sh would be necessary for serious discussions to take place, and a takeout price of well above £30 per share would be the outcome if other bidders were to get involved.”

A successful takeover would represent the first mega deal among the world’s biggest diversified miners in more than a decade. BHP and its rivals spent years on the sidelines after a series of disastrous transactions, but there has been a growing expectation that the industry is heading for a wave of M&A as companies are flush with cash and management teams have worked hard to reassure investors that they have learned from past mistakes.

BHP last year bought copper producer OZ Minerals Ltd. for about $6.4 billion in its first major purchase in years, but has otherwise focused until now on selling assets such as oil, gas and coal.

The clear lure here would be Anglo’s South American copper business, long eyed by bigger players in the industry — even though it has recently faced setbacks and has had to reduce its production forecasts.

While BHP said that Anglo’s non-South African iron ore business and its coking coal mines in Australia would fit well with its existing operations, the future of Anglo’s De Beers diamond unit was less certain.

BHP — which was once a major diamond producer itself — said that business would be put on a strategic review, along with other Anglo assets, which would likely include its nickel operations in Brazil. Anglo itself has already been reviewing the future of its business units including De Beers.

Why BHP Is Targeting Anglo in Mining Mega Deal: QuickTake

Both companies are also investing in new fertilizer businesses — BHP is building a massive potash mine in Canada, while Anglo is developing a polyhalite mine on the east coast of England.

The combination proposed by BHP would be likely to draw antitrust scrutiny, particularly given the large percentage of global copper production that would be concentrated into a single company. Governments around the world are increasingly viewing copper as a strategic mineral, given its central role in the energy transition.

BHP produced about 1.2 million tons of copper in 2023 on an equity basis, while Anglo’s output was 826,000 tons.

It’s also possible that the proposal for Anglo could now prompt others to make a move. No. 2 miner Rio Tinto Group has also been investing in copper production, while Glencore Plc last year made an unsuccessful offer for Teck Resources Ltd., which has a coveted copper business, before eventually reaching a deal for the Canadian company’s coal assets.

Read: BHP Bid for Anglo American Set to Unleash M&A: Energy Daily

The bid comes with copper prices trading around two-year highs near $10,000 a ton, and many prominent figures in the industry calling for further gains as a supply crisis deepens. Along with the closure of a giant mine in Panama, major production setbacks at Anglo American have contributed to an unexpected squeeze on mined supplies, and added urgency to long-running warnings that the market could see historic deficits as demand accelerates during the energy transition.

Anglo’s valuation may make it more attractive, but it remains a highly complicated business. The company owns majority stakes in two South African-listed miners — Anglo American Platinum Ltd. and Kumba Iron ore Ltd. It also has a long and complicated relationship with South Africa, where the state pension fund manager is its biggest shareholder.

South Africa’s Public Investment Corp. said it will assess any offers that are presented to shareholders, but reiterated that “the mining sector remains a critical part of the South African economy, impacting a wide variety of stakeholders, therefore, new opportunities that may arise in the sector need to take these factors and long-term sustainability into account.”

Centerview Partners, Goldman Sachs Group Inc. and Morgan Stanley are advising Anglo American.

–With assistance from Mark Burton and Loni Prinsloo.

(Updates with banking advisors, response from shareholder.)

Most Read from Bloomberg Businessweek

The deal highlights the strengthening demand for metals such as copper in artificial intelligence and electric vehicles.

Teck Resources Ltd

VANCOUVER, British Columbia, April 25, 2024 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today, in accordance with Toronto Stock Exchange requirements, the voting results from its Annual Meeting of Shareholders held on Thursday, April 25, 2024 (the “Meeting”). A total of 6,366,951 Class A common shares and 380,767,143 Class B subordinate voting shares were voted at the Meeting, representing 79.97% of the votes attached to all outstanding shares.

Shareholders voted at the Meeting as follows.

1. Shareholders elected 10 directors, as follows:

	Votes in Favour (#)	Votes Against (#)	Votes in Favour (%)
A.J. Balhuizen	977,339,994	1,486,433	99.85
E.C. Dowling, Jr.	975,871,365	17,514,440	98.24
N.B. Keevil, III	989,060,008	4,325,799	99.56
S.A. Murray	983,859,146	9,526,663	99.04
U.M. Power	984,498,414	8,887,393	99.11
J.H. Price	989,083,604	4,302,203	99.57
P.G. Schiodtz	971,859,098	21,526,708	97.83
T.R. Snider	982,510,175	10,875,631	98.91
S.A. Strunk	985,951,108	7,434,701	99.25
Y. Yamato	992,120,848	1,264,960	99.87

2. Shareholders re-appointed PricewaterhouseCoopers LLP as auditor of Teck, with 96.39% of all votes cast in favour.

3. Shareholders approved the advisory resolution on Teck’s approach to executive compensation as described in the Circular, with 98.39% of all votes cast in favour.

Detailed voting results for the Meeting will be available on SEDAR+ at www.sedarplus.ca. Further information about Teck’s directors, corporate governance, and executive compensation practices are available in the management information circular for the Meeting, which is available under Teck’s profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov), and on www.Teck.com/reports along with our 2023 Annual and Sustainability Reports.

Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations & Strategic Analysis604.699.4621fraser.phillips@teck.com

Media Contact:Chris Stannell Public Relations Manager604.699.4368chris.stannell@teck.com

Teck Resources Ltd (TECK) came out with quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -22.22%. A quarter ago, it was expected that this company would post earnings of $1.01 per share when it actually produced earnings of $1.02, delivering a surprise of 0.99%.

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

Teck Resources , which belongs to the Zacks Mining – Miscellaneous industry, posted revenues of $2.96 billion for the quarter ended March 2024, missing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $2.8 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

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

Teck Resources shares have added about 7.5% since the beginning of the year versus the S&P 500's gain of 6.3%.

What's Next for Teck Resources?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.79 on $3.01 billion in revenues for the coming quarter and $2.87 on $11.99 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Miscellaneous is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Globe Specialty Metals (GSM), is yet to report results for the quarter ended March 2024.

This producer of silicon metal and silicon-based alloys is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -140%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Globe Specialty Metals' revenues are expected to be $343.45 million, down 14.3% from the year-ago quarter.

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Zacks Investment Research

(Adds details on copper production, CEO and analyst comments in paragraph 2 through 10)

April 25 (Reuters) – Canadian miner Teck Resources missed first-quarter profit estimates on Thursday, pulled down partly by lacklustre steelmaking coal sales volumes and lower zinc prices.

Teck, one of the leading producers of steelmaking coal, last year announced the

sale

of the business to Swiss miner Glencore Plc, and said it was shifting its strategy towards building its copper business.

The miner reported a 74% rise in copper production at 99,000 tonnes in the first quarter, helped by ramp-up in output at its Quebrada Blanca (QB) mine in Chile.

"We had strong first quarter performance…with steadily increasing quarterly copper production as QB ramp-up advances," CEO Jonathan Price said in a statement.

The company reiterated full-year copper production of between 465,000 tonnes and 540,000 tonnes, above 296,500 tonnes produced in 2023.

All outstanding major construction at QB operations was completed and the molybdenum plant will be ramped up in the second quarter, it added.

"The investment case for Teck is very much dependent on the company hitting the revised ramp-up timeline and capex guidance at QB2..the completion of construction and reiterated guidance is encouraging," as per Jefferies analysts.

Steelmaking coal production in the first quarter came in at 6 million tons, the same levels seen in the year-ago period, impacted by extreme freezing temperatures in mid-January that resulted in frozen plant components and unplanned downtime.

Teck's first-quarter steelmaking coal sales were 5.9 million tons, compared with 6.2 million tons last year.

The Vancouver-based company reported an adjusted profit of C$0.75 per share, for the quarter ended March 31, compared with analysts' average estimate of C$0.85 per share, according to LSEG data.

(Reporting by Mrinalika Roy, Tanay Dhumal and Nilutpal Timsina in Bengaluru; Editing by Savio D'Souza, Sherry Jacob-Phillips and Eileen Soreng)

By Mrinalika Roy

(Reuters) -Canadian miner Teck Resources reported a 74% rise in quarterly copper production on Thursday, helped by a ramp-up at its Quebrada Blanca (QB) mine in Chile, sending its shares up 6%.

Teck last year announced the sale of its coal business to Swiss miner Glencore Plc as it looks to build its copper business.

"We had strong first quarter performance…with steadily increasing quarterly copper production as QB ramp-up advances," CEO Jonathan Price said in a statement.

The company produced 99,000 tonnes of copper in the first quarter and reaffirmed its full-year production guidance of 465,000 to 540,000 tonnes, above 296,500 tonnes produced in 2023.

All outstanding major construction at QB operations was completed and the molybdenum plant will be ramped up in the second quarter, it added.

"Proposed BHP Group offer for Anglo American highlights appetite for major mining companies to add copper to their portfolios and following sale of the coal business, we believe Teck's portfolio of copper assets remains an attractive target," NBCFM analyst Shane Nagle said.

Teck's first-quarter steelmaking coal sales were 5.9 million tons, compared with 6.2 million tons last year.

The Vancouver-based company reported an adjusted profit of C$0.75 per share, for the quarter ended March 31, compared with analysts' average estimate of C$0.85 per share, according to LSEG data.

(Reporting by Mrinalika Roy, Tanay Dhumal and Nilutpal Timsina in Bengaluru; Editing by Savio D'Souza, Sherry Jacob-Phillips and Eileen Soreng)

Teck Resources Ltd

Increasing copper production with QB ramp-up and completion of all major construction

VANCOUVER, British Columbia, April 25, 2024 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited first quarter results for 2024.

"All outstanding major construction at our QB operation was completed in the first quarter, including the shiploader and molybdenum plant, and we marked the first shipment of concentrate from the completed port facility," said Jonathan Price, President and CEO. "We had strong first quarter performance across our business, generating $1.7 billion of Adjusted EBITDA1 with steadily increasing quarterly copper production as QB ramp-up advances, and we continued to return cash to shareholders."

Highlights

Adjusted EBITDA1 of $1.7 billion in Q1 2024 was driven by strong prices for steelmaking coal and copper, partly offset by lower zinc prices and lower steelmaking coal sales volumes. Profit from continuing operations before taxes was $741 million in Q1 2024.
Adjusted profit from continuing operations attributable to shareholders1 was $392 million, or $0.76 per share, in Q1 2024. Profit from continuing operations attributable to shareholders was $343 million, $0.66 per share, in Q1 2024.
Our liquidity as at April 24, 2024 is $7.1 billion, including $1.6 billion of cash. Excluding the payment of income taxes of $1.3 billion, primarily related to prior years that was anticipated, we generated cash flows from operations of $1.4 billion in Q1, ending the first quarter with a cash balance of $1.3 billion.
We returned a total of $145 million to shareholders in the first quarter through the purchase of $80 million of Class B subordinate voting shares pursuant to our normal course issuer bid, and $65 million paid to shareholders as dividends.
Copper production increased 74% to 99,000 tonnes in the first quarter, with QB producing 43,300 tonnes. QB production was higher than the fourth quarter of 2023, as the operation continues to ramp-up. Average copper prices were US$3.83 per pound in the first quarter and following quarter end, spot copper prices reached two year highs, trading in excess of US$4.40 per pound.
At QB, construction was completed and demobilization of the construction workforce was substantially advanced by the end of the quarter. We successfully loaded our first vessel using the shiploader, and the molybdenum plant will be ramped-up in the second quarter of 2024.
Zinc in concentrate production increased by 10% to 159,800 tonnes in the first quarter, and sales from Red Dog of 84,600 tonnes were within our previously disclosed guidance.
Our steelmaking coal business unit generated $1.4 billion in gross profit before depreciation and amortization1 in Q1, with sales volumes of 5.9 million tonnes and an average realized steelmaking coal price of US$297 per tonne.
We closed the sale of the 20% minority interest in Elk Valley Resources (EVR), our steelmaking coal business, to Nippon Steel Corporation (NSC) on January 3, 2024, with NSC exchanging its 2.5% interest in Elkview Operations, paying US$1.3 billion in cash on closing, plus US$0.4 billion to be paid to Teck from EVR cash flows. Also, on January 3, 2024, POSCO exchanged its 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% interest in EVR.

Note:1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Financial Summary Q1 2024

Financial Metrics(CAD$ in millions, except per share data)	Q1 2024		Q1 2023
Revenue	$	3,988	$	3,785
Gross profit	$	1,289	$	1,666
Gross profit before depreciation and amortization1	$	1,919	$	2,089
Profit from continuing operations before taxes	$	741	$	1,856
Adjusted EBITDA1	$	1,693	$	1,972
Profit from continuing operations attributable to shareholders	$	343	$	1,166
Adjusted profit from continuing operations attributable to shareholders1	$	392	$	930
Basic earnings per share from continuing operations	$	0.66	$	2.27
Diluted earnings per share from continuing operations	$	0.65	$	2.23
Adjusted basic earnings per share from continuing operations1	$	0.76	$	1.81
Adjusted diluted earnings per share from continuing operations1	$	0.75	$	1.78

Note:1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Key Updates

Executing on Our Copper Growth Strategy

Construction of QB was completed and demobilization of contractors was substantially advanced at the end of the quarter.
We successfully loaded our first vessel of QB concentrate using the shiploader, and the molybdenum plant will be ramped-up in the second quarter of 2024.
Our QB2 project capital cost guidance is unchanged at US$8.6–$8.8 billion.
Copper production at QB was 43,300 tonnes during the first quarter, an increase from the fourth quarter as ramp-up continues. Our previously disclosed annual production and unit cost guidance for QB is unchanged.
We continued to advance our industry-leading copper growth portfolio, with a focus on completing feasibility studies, advancing detailed engineering work, project execution planning and progressing permitting, particularly at the HVC Mine Life Extension, San Nicolás and Zafranal.

Safety and Sustainability Leadership

Our High-Potential Incident Frequency rate was 0.06 in the first quarter, lower than the same period in 2023.
We released our 23rd annual Sustainability Report, outlining Teck’s 2023 sustainability performance, including progress in areas such as decarbonization, diversity and working towards a nature positive future.

Guidance

There has been no change to our previously disclosed guidance. Our guidance is outlined in summary below and our usual guidance tables, including three-year production guidance, can be found on pages 25 – 29 of Teck’s first quarter results for 2024 at the link below.

2024 Guidance – Summary	Current
Production Guidance
Copper (000’s tonnes)	465 – 540
Zinc (000’s tonnes)	565 – 630
Refined zinc (000’s tonnes)	275 – 290
Steelmaking coal (million tonnes)	24.0 – 26.0
Sales Guidance – Q2 2024
Red Dog zinc in concentrate sales (000’s tonnes)	50 – 60
Steelmaking coal sales (million tonnes)	6.0 – 6.4
Unit Cost Guidance
Copper net cash unit costs (US$/lb.)1	1.85 – 2.25
Zinc net cash unit costs (US$/lb.)1	0.55 – 0.65
Steelmaking coal adjusted site cash cost of sales (CAD$/tonne)1	95 – 110
Steelmaking coal transportation costs (CAD$/tonne)	47 – 51

Note:1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Click here to view Teck’s full first quarter results for 2024.

WEBCAST

Teck will host an Investor Conference Call to discuss its Q1/2024 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on April 25, 2024. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast will be archived at www.teck.com.

Reference:

Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis: 604.699.4621

Chris Stannell, Public Relations Manager: 604.699.4368

USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS

Our annual financial statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB). Our interim financial results are prepared in accordance with IAS 34, Interim Financial Reporting (IAS 34). This document refers to a number of non-GAAP financial measures and non-GAAP ratios, which are not measures recognized under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards or by Generally Accepted Accounting Principles (GAAP) in the United States.

The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under IFRS Accounting Standards, may differ from those used by other issuers, and may not be comparable to similar financial measures and ratios reported by other issuers. These financial measures and ratios have been derived from our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and ratios because we believe they assist readers in understanding the results of our operations and financial position and provide further information about our financial results to investors. These measures should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS Accounting Standards.

Adjusted profit from continuing operations attributable to shareholders – For adjusted profit from continuing operations attributable to shareholders, we adjust profit from continuing operations attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect measurement changes on our balance sheet or are not indicative of our normal operating activities.

EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.

Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted profit from continuing operations attributable to shareholders as described above.

Adjusted profit from continuing operations attributable to shareholders, EBITDA and Adjusted EBITDA highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding the ongoing cash-generating potential of our business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.

Adjusted basic earnings per share from continuing operations – Adjusted basic earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of shares outstanding in the period.

Adjusted diluted earnings per share from continuing operations – Adjusted diluted earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of fully diluted shares in a period.

Gross profit before depreciation and amortization – Gross profit before depreciation and amortization is gross profit with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our business units or operations.

Unit costs – Unit costs for our steelmaking coal operations are total cost of goods sold, divided by tonnes sold in the period, excluding depreciation and amortization charges. We include this information as it is frequently requested by investors and investment analysts who use it to assess our cost structure and margins and compare it to similar information provided by many companies in the industry.

Adjusted site cash cost of sales – Adjusted site cash cost of sales for our steelmaking coal operations is defined as the cost of the product as it leaves the mine excluding depreciation and amortization charges, outbound transportation costs and any one-time collective agreement charges and inventory write-down provisions.

Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit basis.

Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.

Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice in the industry to exclude depreciation and amortization, as these costs are non-cash, and discounted cash flow valuation models used in the industry substitute expectations of future capital spending for these amounts.

Adjusted site cash cost of sales per tonne – Adjusted site cash cost of sales per tonne is a non-GAAP ratio comprised of adjusted site cash cost of sales divided by tonnes sold. There is no similar financial measure in our consolidated financial statements with which to compare.

Profit from Continuing Operations Attributable to Shareholders and Adjusted Profit from Continuing Operations Attributable to Shareholders

	Three months ended March 31,
(CAD$ in millions)		2024			2023

Profit from continuing operations attributable to shareholders	$	343		$	1,166
Add (deduct) on an after-tax basis:
QB2 variable consideration to IMSA and ENAMI		10			2
Environmental costs		(17	)		13
Inventory write-downs		19			—
Share-based compensation		27			18
Commodity derivatives		2			(4	)
Gain on disposal or contribution of assets		(6	)		(186	)
Elkview business interruption claim		—			(68	)
Other		14			(11	)

Adjusted profit from continuing operations attributable to shareholders	$	392		$	930

Basic earnings per share from continuing operations	$	0.66		$	2.27
Diluted earnings per share from continuing operations	$	0.65		$	2.23
Adjusted basic earnings per share from continuing operations	$	0.76		$	1.81
Adjusted diluted earnings per share from continuing operations	$	0.75		$	1.78

Reconciliation of Basic Earnings per share from Continuing Operations to Adjusted Basic Earnings per share from Continuing Operations

	Three months ended March 31,
(Per share amounts)		2024			2023

Basic earnings per share from continuing operations	$	0.66		$	2.27
Add (deduct):
QB2 variable consideration to IMSA and ENAMI		0.02			—
Environmental costs		(0.03	)		0.03
Inventory write-downs		0.04			—
Share-based compensation		0.05			0.03
Commodity derivatives		—			(0.01	)
Gain on disposal or contribution of assets		(0.01	)		(0.36	)
Elkview business interruption claim		—			(0.13	)
Other		0.03			(0.02	)

Adjusted basic earnings per share from continuing operations	$	0.76		$	1.81

Reconciliation of Diluted Earnings per share from Continuing Operations to Adjusted Diluted Earnings per share from Continuing Operations

	Three months ended March 31,
(Per share amounts)		2024			2023

Diluted earnings per share from continuing operations	$	0.65		$	2.23
Add (deduct):
QB2 variable consideration to IMSA and ENAMI		0.02			—
Environmental costs		(0.03	)		0.03
Inventory write-downs		0.04			—
Share-based compensation		0.05			0.03
Commodity derivatives		—			(0.01	)
Gain on disposal or contribution of assets		(0.01	)		(0.36	)
Elkview business interruption claim		—			(0.13	)
Other		0.03			(0.01	)

Adjusted diluted earnings per share from continuing operations	$	0.75		$	1.78

Reconciliation of EBITDA and Adjusted EBITDA

	Three months ended March 31,
(CAD$ in millions)		2024			2023

Profit from continuing operations before taxes	$	741		$	1,856
Finance expense net of finance income		231			30
Depreciation and amortization		630			423

EBITDA		1,602			2,309

Add (deduct):
QB2 variable consideration to IMSA and ENAMI		20			2
Environmental costs		(29	)		17
Inventory write-downs		41			—
Share-based compensation		35			22
Commodity derivatives		2			(6	)
Gain on disposal or contribution of assets		(8	)		(258	)
Elkview business interruption claim		—			(102	)
Other		30			(12	)

Adjusted EBITDA	$	1,693		$	1,972

Reconciliation of Gross Profit Before Depreciation and Amortization

	Three months ended March 31,
(CAD$ in millions)		2024			2023

Gross profit	$	1,289		$	1,666
Depreciation and amortization		630			423

Gross profit before depreciation and amortization	$	1,919		$	2,089

Reported as:
Copper
Quebrada Blanca	$	66		$	(1	)
Highland Valley Copper		112			136
Antamina		197			230
Carmen de Andacollo		(4	)		12
Other		—			(4	)
		371			373
Zinc
Trail Operations		25			36
Red Dog		108			127
Other		(7	)		10
		126			173
Steelmaking coal		1,422			1,543

Gross profit before depreciation and amortization	$	1,919		$	2,089

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.

These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy; anticipated global and regional supply, demand and market outlook for our commodities; execution of the planned separation of Teck’s base metals and steelmaking coal businesses, including the ability to satisfy the closing conditions and expected timing of the closing of the Glencore transaction; our expectations regarding the ramp-up of the QB2 project, including the molybdenum plant and port facilities, and our ability to increase production each quarter in 2024; QB2 capital cost guidance and expectations for capitalized ramp-up costs; expectations regarding inflationary pressures and our ability to manage controllable operating expenditures; expectations regarding future remediation costs at our operations and closed operations; timing of and our ability to implement a solution related to water restrictions at Carmen de Andacollo operations; expectations with respect to execution of our copper growth strategy, including the timing and occurrence of any sanction decisions and prioritization of growth capital; expectations regarding permitting strategies and debottlenecking opportunities at our QB Operations; expectations regarding advancement of copper growth portfolio, including advancement of study, permitting, execution planning, and engineering work, community and Indigenous engagement, and completion of updated cost estimates at our San Nicolás, Zafranal, HVC Mine Life Extension, QB Asset Expansion, and Galore Creek projects, as applicable; our ability to implement the Elk Valley Water Quality Plan and other water quality initiatives; expectations for stabilization and reduction of the selenium trend in the Elk Valley; expectations for total water treatment capacity; and further reductions of selenium in the Elk Valley watershed and the Koocanusa Reservoir; projected spending, including capital and operating costs in 2024 and later years on water treatment, water management and incremental measures associated with the Direction; timing of advancement and completion of key water treatment projects; our expectation that we will increase our water treatment capacity to 150 million litres per day by the end of 2026; expectations regarding engagement with U.S. regulators on water quality standards; expectations regarding finance and general and administration expenses in 2024; expectations regarding timing and amount of income tax payments and our effective tax rate; liquidity and availability of borrowings under our credit facilities; our ability to obtain additional credit for posting security for reclamation at our sites; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost, capital expenditure, capitalized stripping, and other guidance under the headings “Guidance” and "Outlook" and as discussed elsewhere in the various business unit sections; our expectations regarding inflationary pressures and increased key input costs; and expectations regarding the adoption of new accounting standards and the impact of new accounting developments.

These statements are based on a number of assumptions, including, but not limited to, assumptions disclosed elsewhere in this document and assumptions regarding general business and economic conditions, interest rates, commodity and power prices; acts of foreign or domestic governments and the outcome of legal proceedings; our ability to satisfy the closing conditions of the Glencore transaction; the supply and demand for, deliveries of, and the level and volatility of prices of copper, zinc and steelmaking coal and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in credit market conditions and conditions in financial markets generally; the availability of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; availability of letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar, Canadian dollar-Chilean Peso and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our development and expansion projects; our ability to develop technology and obtain the benefits of technology for our operations and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the outcome of our coal price and volume negotiations with customers; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits, licenses and leases in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners.

In addition, assumptions regarding the Elk Valley Water Quality Plan include assumptions that additional treatment will be effective at scale, and that the technology and facilities operate as expected, as well as additional assumptions discussed under the heading “Elk Valley Water Management Update.” Assumptions regarding QB2 include current project assumptions and assumptions regarding the final feasibility study, estimates of the final capital cost at QB2 are based on a CLP/USD rate range of 800 — 850, as well as there being no further unexpected material and negative impact to the various contractors, suppliers and subcontractors that would impair their ability to provide goods and services as anticipated during ramp-up activities or delay demobilization in accordance with current expectations. Statements regarding the availability of our credit facilities are based on assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities are not otherwise terminated or accelerated due to an event of default. Assumptions regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations. Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other forward-looking statements accompany those statements within the document. Statements concerning future production costs or volumes are based on numerous assumptions regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. Statements regarding anticipated steelmaking coal sales volumes and average steelmaking coal prices depend on timely arrival of vessels and performance of our steelmaking coal-loading facilities, as well as the level of spot pricing sales. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices; changes in market demand for our products; changes in interest and currency exchange rates; acts of governments and the outcome of legal proceedings; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment, government action or delays in the receipt of government approvals, changes in royalty or tax rates, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters); union labour disputes; any resurgence of COVID-19 and related mitigation protocols; political risk; social unrest; failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations; changes in our credit ratings; unanticipated increases in costs to construct our development projects; difficulty in obtaining permits; inability to address concerns regarding permits or environmental impact assessments; and changes or further deterioration in general economic conditions. The amount and timing of capital expenditures is depending upon, among other matters, being able to secure permits, equipment, supplies, materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Certain of our other operations and projects are operated through joint arrangements where we may not have control over all decisions, which may cause outcomes to differ from current expectations. Current and new technologies relating to our Elk Valley water treatment efforts may not perform as anticipated, and ongoing monitoring may reveal unexpected environmental conditions requiring additional remedial measures. QB2 costs, commissioning and commercial production are dependent on, among other matters, our continued ability to advance commissioning and ramp-up as currently anticipated. QB2 costs may also be affected by claims and other proceedings that might be brought against us relating to costs and impacts of the COVID-19 pandemic or otherwise. Production at our Red Dog Operations may also be impacted by water levels at site. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and policies, and normal production and operating risks. The forward-looking statements in this news release and actual results will also be impacted by the continuing effects of COVID-19 and related matters, particularly if there is a further resurgence of the virus.

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2023 filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.

Scientific and technical information in this quarterly report regarding our coal properties, which for this purpose does not include the discussion under “Elk Valley Water Management Update” was reviewed, approved and verified by Jo-Anna Singleton, P.Geo. and Cameron Feltin, P.Eng., each an employee of Teck Coal Limited and a Qualified Person as defined under National Instrument 43-101. Scientific and technical information in this quarterly report regarding our other properties was reviewed, approved and verified by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person as defined under National Instrument 43-101.

PHOENIX, April 25, 2024–(BUSINESS WIRE)–Freeport-McMoRan Inc. (NYSE: FCX) today announced the publication of its 2023 Annual Report on Sustainability detailing its environmental, social and governance performance during the year. This report marks FCX’s 23rd year of reporting on its sustainability progress. FCX has a long history of responsible production practices and strives to embrace evolving stakeholder expectations.

Richard C. Adkerson, Chairman and Chief Executive Officer, said, "Our sustainability programs are at the forefront of our daily work and are a critical driver of our long-term success. We have a strong commitment to continuous improvement in the efficiency of our operations, to supporting and developing our global workforce, forging and maintaining partnerships with our host communities, and continually enhancing our transparency with our stakeholders. This year’s report details our progress in 2023 to further embed our sustainability strategy into the business: Accelerate the Future, Responsibly."

FCX’s 2023 Annual Report on Sustainability was prepared in alignment with the International Financial Reporting Standards Foundation's SASB Standards for the Metals & Mining industry (2023) as well as in reference to the GRI Sustainability Report Standards (2021) and the G4 Mining and Metals Sector Supplement (2013) and reflects FCX’s reporting obligations as a founding member of the International Council on Mining and Metals. FCX’s 2023 Annual Report on Sustainability is available on the company website at fcx.com/sustainability.

FREEPORT: Foremost in Copper

FCX is a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world’s largest publicly traded copper producers.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available on FCX's website at fcx.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240425842423/en/

Contacts

Financial Contact: David P. Joint(504) 582-4203

Media Contact: Linda S. Hayes(602) 366-7824

WHITE ROCK, BC / ACCESSWIRE / April 24, 2024 / Honey Badger Silver Inc. (TSXV:TUF) ("Honey Badger" or the "Company") is pleased to appoint George Topping as a Director effective today. The Company has also appointed Stephen Kibsey and Michael Jalonen as Advisors to the Company.

The Company's CEO, Dorian L. (Dusty) Nicol commented, "We welcome George Topping to our Board. His extensive experience in operations and capital markets will add great value to the Company as we implement our strategy to become a leading silver company. We also welcome Stephen Kibsey and Michael Jalonen as advisors. Each brings expertise that will help us implement our strategy to become the leading investment vehicle as we expect silver prices to march toward all-time highs."

George Topping is an experienced mining professional with over 30 years of practical and analytical experience in a wide range of commodities and listed mining equities. He worked for 12 years in the South African industry, gaining underground production management experience prior to commencing a 25-year capital markets career covering Canadian listed mining equities. He is a well-regarded mining analyst and was most recently at iA Capital Markets and before that, as CEO of Wolfden Resources, a publicly traded junior mining company. Mr. Topping holds a BSc Mining Engineering.

Stephen Kibsey has over thirty years of experience as an investment professional and currently does ESG coaching and mentoring for various organizations. He worked for 21 years at one of Canada's largest investment institutions (CDPQ) as analyst, portfolio manager, business unit risk manager, and more recently as a vice-president in the Investment Stewardship group. He also held the position of vice-president of Canadian equities during his ten years at one of Canada's largest corporate pension funds (BIMCOR). Stephen has for many years been at the forefront of responsible investment through his involvement with the creation of the Sustainable Investment Professional Certificate and the Sustainability Ecosystem at Concordia University. He lectured at the Goodman Institute on risk management in investment portfolio construction and Sustainability Finance and Accounting at McGill University and Queen's University. Stephen was a member of the Mining Association of Canada-Community of Interest Panel which gave feedback on the Toward Sustainable Mining protocols for 9 years and was one of the founding members of the Finance and Sustainability Initiative in Montreal. He sat on the Investment Committee and Risk Sub-committee of the McConnell Foundation in Montreal for 6 years. Stephen holds a Bachelor of Science in Physiology, a Bachelor of Engineering in Mining, a MBA, a SIPC, and was a CFA from 1991 to 2019. He has been recognized as a Brendan-Wood Top Gun portfolio manager from 2008-2010.

Michael Jalonen had an over 30-year career as a respected mine analyst, specializing in precious metals, with Bank of America Securities and was regularly ranked as a leading mining analyst in North America. He travelled throughout the world, visiting and reporting on over 100 gold, silver, and copper mining and development projects. He holds a BSc (Honors) in geology from the University of Windsor, an MBA from the De Groote School of Business, and is a designated CFA. While at Bank of America, Michael implemented investment recommendations, provided coverage, analyzed, and researched 20 companies in the North American senior, mid-tier, and intermediate precious metal producer group as well as 5 senior precious metal royalty and streaming companies. He created detailed operating and financial models on a mine by mine basis with long-term forecasts for companies under coverage, which led to valuation analyses to estimate company and asset values. He regularly published multiple industry thematic reports including five annual sector primers (including a royalty and streaming industry primer) and quarterly reports on merger and acquisition activity in the global gold sector.

Stock Option GrantThe Company also reports that the board of directors of Honey Badger approved the grant of a total of 3,595,000 incentive stock options of the capital stock of the Company to directors, officers, employees and consultants, vesting immediately, exercisable for up to a five-year period at an exercise price of $0.075, pursuant to the Company's shareholder approved stock option plan.

About Honey Badger Silver Inc.Honey Badger Silver is a silver company. The company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. Our projects are located in areas with a long history of mining, including the Sunrise Lake project with a historic resource of 12.8 Moz of silver (and 201.3 million pounds of zinc) Indicated and 13.9 Moz of silver (and 247.8 million pounds of zinc) Inferred (1)(3) located in the Northwest Territories and the Plata high grade silver project located 165 km east of Yukon's prolific Keno Hill and adjacent to Snowline Gold's Rogue discovery. The Company's Clear Lake Project in the Yukon Territory has a historic resource of 5.5 Moz of silver and 1.3 billion pounds of zinc (2)(3). The Company also has a significant land holding at the Nanisivik Mine Area located in Nunavut, Canada that produced over 20 Moz of silver between 1976 and 2002. (2,3) A qualified person has not done sufficient work to classify the foregoing historic resources as current mineral resources and the Company is not treating the estimate as a current mineral resource. The historic resource estimates cannot be relied upon. Additional work, including verification drilling / sampling, will be required to verify the estimate as a current mineral resource.

Sunrise Lake 2003 RPA historic resource: Indicated 1.522 million tonnes grading 262 grams/tonne silver, 6.0% zinc, 2.4% lead, 0.08% copper, and 0.67 grams/tonne gold and Inferred 2.555 million tonnes grading 169 grams/tonne silver, 4.4% zinc, 1.9% lead, 0.07% copper, and 0.51 grams/tonne gold.

Clear Lake 2010 SRK historic Resource: Inferred 7.76 million tonnes grading 22 grams/tonne silver, 7.6% zinc, and 1.08% lead.

Geological Survey of Canada, 2002-C22, "Structural and Stratigraphic Controls on Zn-Pb-Ag Mineralization at the Nanisivik Mississippi Valley type Deposit, Northern Baffin Island, Nunavut; by Patterson and Powis."

ON BEHALF OF THE BOARDDorian L. (Dusty) Nicol, CEO

For more information please visit our website www.honeybadgersilver.com or contact Ms. Michelle Savella for Investor Relations | msavella@honeybadgersilver.com | +1 (604) 828-5886.

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

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

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

SOURCE: Honey Badger Silver Inc.

View the original press release on accesswire.com

Freeport-McMoRan Inc. (NYSE:FCX) Q1 2024 Earnings Call Transcript April 23, 2024

Freeport-McMoRan Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Freeport-McMoRan First Quarter Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Mr. David Joint, Vice President, Investor Relations. Please go ahead, sir.

David Joint: Thank you, Regina, and good morning, everyone. Welcome to the Freeport-McMoRan conference call. Earlier this morning, Freeport reported its first quarter 2024 operating and financial results. A copy of our press release with supplemental schedules and slides is available on our website, fcx.com. Today's conference call is being broadcast live on the Internet. Anyone may listen to the conference call by accessing our website home page and clicking on the webcast link. In addition to analysts and investors, the financial press has been invited to listen to today's call. A replay of the webcast will be available on our website later today. Before we begin today's – our comments, we'd like to remind everyone that our press release and certain of our comments on the call include non-GAAP measures and forward-looking statements, and actual results may differ materially.

Please refer to our cautionary language included in our press release and slides and to the risk factors described in our SEC filings, all of which are available on our website. Also on the call with me today are Richard Adkerson, Chairman of the Board and Chief Executive Officer; Kathleen Quirk, President; Maree Robertson, Senior Vice President and CFO; and other senior members of our management team. Richard will make some opening comments, Kathleen will review our slide materials and then we'll open up the call for questions. I would now like to call – turn the call over to Richard.

Richard Adkerson: Thank you, David, and thank you all for joining us. We're really pleased today to report our first quarter results. They reflect a continuation of Freeport's long-running success in executing our business plans. Kathleen will present our results, as David said, and then we'll answer your questions. Kathleen will become Freeport's CEO, effective with our Annual Shareholders Meeting on June 11. I will continue as Chairman and support Kathleen and our management team on important strategic issues and external relations. This will be the most seamless management transition in history. There's been a 20-year transition, in fact. Coincidentally, Kathleen joined Freeport shortly after I did 35 years ago and I've been an adviser to the company for the previous two decades.

She advanced through our finance group to become CFO when I became CEO 20 years ago. And since then, she has been integral to the management of the company. When I became Chairman three years ago, I made a personal commitment to build a sustainable Board and a sustainable management team. And since that time, we've added six high-quality independent directors, new directors, which together with our continuing directors comprise a very strong independent board to represent our shareholders. We bolstered our staff with internal promotions and external hires. Freeport is strongly positioned for the future, and I'm personally proud to be able to say that at this point. 20 years ago, we made a strategic commitment to copper based on the fundamentals of supply and demand for the commodity.

The validity of that commitment has never been more evident, and the best is yet to come. My personal enthusiasm for Freeport's future has never been stronger. I cannot be more pleased with our Board and with our management team under Kathleen's leadership. Kathleen, I'll turn the call over to you for your slides.

Kathleen Quirk: Great, and thank you, Richard. And a special thank you to you for your outstanding and visionary leadership during your long tender as our – tenure as our CEO. As I prepare to become CEO in June, I'm focused on our copper-leading strategy centered on reliable execution of our plans, disciplined cost and capital management and continuing our drive for profitable growth. Our seasoned team knows this business has a proven ability to navigate challenges and a passion for finding value in our assets. I look forward to building on our past success and to leading our company to new highs in the future. Starting on Page 3, Slide 3, we have a new annual report out with this year's theme being the value of copper. The report is available on our website.

It highlights our performance, our copper-focused strategy and our strength as a premier copper producer. We'll also be publishing our annual sustainability report, which will be available on our website later this week. This report, which we've been doing for some time now, details our environmental and social performance, which we take very seriously as part of our commitment to responsible production. On Slide 4, we present our key focus areas of – for 2024. These are the same items we discussed in our January call and we thought it would be good to show these again for reference so you can track our progress against these areas as we go through the year. On Slide 5, turning to the first quarter highlights. We're off to a really good start so far in 2024.

As summarized, we exceeded our guidance for first quarter copper sales. Gold sales were in line with our estimates and consolidated unit net cash costs were better than forecast. We generated strong margins and cash flows during the quarter with $2.5 billion in adjusted EBITDA and $1.9 billion in operating cash flows, and that was at an average copper price of $3.94 per pound. Capital expenditures, excluding $0.5 billion for the Indonesian smelter project totaled $800 million in the quarter, and we reduced our net debt. We made great progress on several important initiatives, including on the Indonesian smelter, which is scheduled to start up in June, building momentum in our innovative copper leach initiative and continuing to build optionality in our organic growth pipeline.

Market conditions are increasingly positive. They are growing recognition of factors, driving favorable fundamentals in copper and we've also seen a rise in gold prices year-to-date. Recall that Grasberg is one of the world's largest mines in terms of both copper and gold production. Moving to copper markets, starting on Slide 6, the growing intensity of use of copper in the global economy is supported by secular trends, particularly in electrification. Copper is a foundational, essential metal when it comes to electrification, and the world is becoming more and more focused on copper-intensive energy applications. New massive investment in the power grid, renewable generation, technology infrastructure and transportation are driving increased demand for copper and forecasts call for above-trend growth and demand for the foreseeable future.

This is occurring at a time when there are constraints on existing supplies, an absence of major new copper development projects and extended multiyear lead times for supply development, pointing to tight market conditions for an extended period of time. Copper producers, including us, at Freeport have been citing physical market tightness for some time. And in the last several weeks, the copper price has risen to reflect the reality of the market situation. Based on historical periods of above trend growth in demand, we may be in the early stages of a repricing for long-term copper prices. And we illustrate this on Slide 7, where we show how copper prices responded 20 years ago when China emerged as a major consumer of copper. You can see on this chart that within 12 months, the copper price increased by 40% and was up nearly four times within a three-year period.

During 2023, the secular drivers for copper demand provide a growth in demand despite weakness in some of the more cyclical drivers of copper demand. In the fourth quarter of last year, industry announcements of sizable supply disruptions tightened the market significantly. This is clearly evident when you look at the physical concentrate markets where smelters drop TC, treatment charges, sharply as a result of the shortage of concentrate supply. Notably, recent manufacturing data points also indicate that the global economy is recovering. Recently improved macroeconomic sentiment, combined with physical market conditions have driven prices higher, copper prices higher year-to-date, and many analysts are now projecting significantly higher copper prices in the future.

At Freeport, our financial performance is highly levered to copper prices, as you'll see from our sensitivities; we'll review later in the presentation. We're not predicting where prices will go from here, and recognize there will be volatility. But clearly, the fundamentals point to an extended period of deficits and significantly higher copper prices over the long term. That's very positive for a company like ours with large-scale, long-life producing assets and organic development opportunities. Now I will cover the operating highlights from the quarter. This is presented on Slide 8. We are summarizing the key operating highlights by geographic region. In the U.S., we continue to work to mitigate the impact of lower ore grades by focusing on initiatives to improve efficiency and reliability of our equipment, the productivity of our workforce and sharpening our focus on cost reduction.

We're making progress in these areas, but we still have work to do to regain our goal of being at the top of the industry in terms of efficiency and productivity. Our innovative leach initiative is providing incremental volumes and has helped us mitigate the impact of lower ore grades. As we previously reported, we reached over our 200 million pound per annum run rate, we've got several initiatives in progress to scale this to the 300 million-pound to 400 million-pound per annum range over the next two years. We're also continuing to take advantage of new technologies and automation across the portfolio, which we believe have a lot of potential to move the needle as we go forward. In South America, we – our ore milled was slightly below 400,000 metric tons of ore per day at Cerro Verde.

Team worked through several challenges during the quarter associated with material types, which required optimizing mill throughput to address recoveries. And the team was successful in achieving copper volume targets by increasing mine rates and accessing higher than planned grades. Our moly byproduct volumes were impacted, however, by low recoveries associated with the material types and progress is being made to address this. At our El Abra mine in Chile, we had a good quarter, and we met expectations. We are also pleased to report that Cerro Verde recently finalized an agreement for a new four-year labor agreement with its workforce. In Indonesia, we had another exceptional quarter of performance. Both copper and gold production exceeded our forecast with higher mill rates, higher ore grades and recoveries.

A large open-pit copper mine with heavy machinery extracting minerals from the earth.

Our net unit cash costs for the quarter in Indonesia was a net credit of $0.12 per pound. That means our gold byproduct credits more than offset all of the cash production costs. Our underground ore mined, which is the largest block-cave mine district in the world averaged 220,000 tons per day that was above the fourth quarter of 2023 and significantly above last year's first quarter. The Grasberg Block Cave mine is our largest in the district, and it continues to achieve strong performance. We've also increased our rates at the extra high-grade smaller mine at Big Gossan by nearly 30%. Our new SAG mill, which we installed at the end of last year, is performing very well. We're nearing completion of a mill recovery project, and that will enable higher mill recoveries in the future.

And our team there is just doing outstanding work in sustaining and optimizing value from this large resource position. Topping it off the PT-FI team recently finalized a new two-year labor agreement with our workforce. Give a report on Slide 9 of where we stand with our smelter project and the completion of this new smelter in Indonesia is a very important catalyst for us, as we work to secure an extension of our long-term operating rights in Indonesia. We made substantial progress in the first quarter and now we're focused on the remaining critical path and transitioning to commissioning and start-up activities. We're on track to begin hitting the furnaces during June, followed by concentrate process in August and first cathode in October.

We're working closely with the Indonesian government to continue to export concentrates and anode slimes until the smelter and precious metals are fully operational, and we expect that by year-end when we will become a PT-FI, a fully integrated metals producer. Discussions with the government to-date are positive and that's supported by the project status and the startup plans. In terms of our startup, we have a very talented local team who will be supported by a large team of Freeporters from around the globe, including from our Spanish operations and our U.S. smelting operations to support an efficient startup. We're very focused on our growth and optionality in our growth pipeline, and we've got a summary on Slide 10, where we go through where we stand on the various projects.

We have dedicated teams working on advancing opportunities to grow production in the future. And here, you'll see the update for each of the major initiatives underway, starting with the innovative leach initiative where our team has several work streams in progress to take our initial success and build substantial scale. This project has the highest net present value potential of any project we have seen historically because of low capital intensity, low incremental operating costs. And at Freeport, we're uniquely positioned to capture this value with our sizable existing footprint, technical know-how and new technologies available to us. At our Bagdad operation in Northwest Arizona, we talked about it on our last call. And now we're continuing to take steps to derisk the brownfield expansion project by converting the existing haul truck fleet to fully autonomous, expanding housing infrastructure at the site and expanding our tailings facilities.

We're also continuing to monitor labor market conditions in Arizona and hope to be in a position to make an investment decision by the end of next year. From there, the project would take about three to four years to construct. At our Lone Star, Safford brownfield project in Eastern Arizona, we're commencing a pre-feasibility study this year to define and frame a major expansion. As we've been talking about over many quarters, we have a sizable resource here and expect this district will become a major cornerstone asset for us in Arizona during the next decade. At El Abra, in Chile, we have a large resource that can support a new concentrator of scale and we're looking at a concentrator similar to the size of the Cerro Verde concentrator expansion we installed nearly 10 years ago.

We've done substantial work to define the project, and we're currently in the process of retesting the economics and taking a hard look at capital costs in light of the recent industry experience in Chile. We're working to be in a position to file an environmental impact statement by the end of next year, and this project would require seven to eight years of lead time because of permitting requirements. In Indonesia, we're continuing to advance our large-scale Kucing Liar development to commence production by 2030. We also have several additional exploration targets in the district and expect to have additional long-term development options that would become available with an extension of our operating rights beyond 2041. We're going to continue to be disciplined in our approach, targeting opportunities that can be executed efficiently and profitably and where we think we can create value for our shareholders.

We wanted to take you through a little bit of our leach history on Slide 11 that provides history of what we've achieved to-date on this innovative project. We started on this journey two years ago with data analytics and new operating practices to tap into our large stockpiles to recover copper from material that was previously mined. Through a combination of actions to achieve greater heat retention in the stockpiles, gaining access to areas of the stockpiles that had not been optimally leached historically, and through the use of better identification of trap potential, we’ve been successful in adding incremental copper previously thought to be unrecoverable. This initiative has grown now to be a major value driver for our Americas business, particularly for our largest U.S. mine in Morenci.

As we mentioned, we achieved our initial target for an annual run rate of 200 million pounds per annum, now focused on doubling this or scaling what we’ve learned to date. To date, the success has largely been operationally driven, complemented by new data and technology. At the same time, in parallel, we’re advancing studies on new additives that could boost recoveries and we’re exploring options for adding heat to existing stockpiles to generate incremental copper. In the aggregate, these initiatives have the potential to reach 800 million pounds per annum and that’s the equivalent of a large-scale copper mine with low capital intensity, low cost and a low carbon footprint. About half of this can be achieved through further scaling, as we mentioned, and the other half relates to technology under development.

The value potential is very attractive, particularly for Freeport given our large quantities of suitable materially – material that we previously mined. In terms of our timing of all this on Slide 12, we summarized potential growth and that we frame it in near-term, medium-term and longer-term horizons. We’ve outlined identified projects in the Americas, totaling 1.7 billion pounds and the Kucing Liar project currently in development in Indonesia, and that’s expected to continue to support long-term production profiles in the Grasberg District. In the two to three-year category, we set our focus on incremental production, on scaling our leach initiatives and operational improvement projects. Together, the potential from these opportunities total 400 million pounds and do not require significant investment or long lead times.

In three to five-year category, we’ve got the Bagdad expansion opportunity and the additional potential from our leach initiatives. El Abra is reflected in the seven to eight-year category and Lone Star is not on here, but it’s also a major opportunity, which we’re currently defining. It’s likely a bit further out, but we feel it will be a major new opportunity for us as we go forward. The KL development in Indonesia is proceeding on schedule. We expect to commence production before 2030 and ramp up to over 500 million pounds of copper and 500,000 ounces of gold, which is meaningful operation. In Indonesia, an extension of our rights beyond 2041 would open substantial opportunity for reserve and resource expansion and continuation of large-scale mining in one of the world’s largest and highest grade copper and gold mining districts.

We’re in a strong position, as you see here, to continue our leadership role in supplying copper to a world with growing requirements. On Slide 13, as we usually do, we show our three-year outlook for sales volume of copper, gold and molybdenum. We’ve increased our 2024 copper sales by about 1.5%, reflecting the first quarter outperformance. The rest of the guidance is similar to our outlook at the start of the year. We’re also estimating consolidated net unit cash costs to approximate $1.57 per pound on a consolidated basis that’s slightly below our previous guidance of $1.60 per pound. We’ve got some details of the makeup of this average presented on Slide 25 in the restaurants materials. With a strong cash flow generator, as you can see on Slide 14, where we show modeled results for our EBITDA and cash flows at various copper prices ranging from $4 per pound to $5 per pound for the average of 2025 and 2026.

We’re using our current volume estimates for 2025 and 2026, our cost estimates and we’re holding gold flat here at $2,300 per ounce and molybdenum at $20 an ounce for illustration. Under this scenario, annual EBITDA would range from almost $11 billion per annum at $4 copper to in excess of $15 billion per annum at $5 copper and our operating cash flows would range from over $7.5 billion per year at $4 copper and over $11 billion per year at $5 per pound copper. We’ve got sensitivities to the various commodities on the right with long life reserves, large-scale production; we’re extremely well-positioned to benefit from improved pricing, providing substantial cash flow for investments in our organic growth and cash returns to shareholders on our performance-based payout framework.

On Slide 15, we show our current estimates for capital expenditures for 2024 and 2025. Not much has changed since our last update. $3.6 billion is projected for 2024, which is consistent with our prior guidance. And in 2025, we estimate CapEx will total about $3.9 billion. That’s about $100 million higher than the January estimate and reflects timing changes for our Kucing Liar project spend for 2025. During this period – during this two-year period, discretionary projects totaled $2.5 billion. This is – this category reflects the capital investments we're making in new projects that under our financial policy, are funded with the half of available cash that is not distributed. And these projects are all value-enhancing initiatives, and we've got some details in the back – in the reference materials.

Finally, getting to financial policy on Slide 16. We reiterate the policy priorities centered on a strong balance sheet, cash returns to shareholders and investments and value-enhancing growth projects. Balance sheet continues to be very strong. We've got great metrics – credit metrics and significant flexibility within our debt targets to execute on our projects. As indicated here, we've distributed about $4 billion to shareholders through dividends and share purchases since starting this new financial policy and we've got a very attractive future long-term portfolio that will enable us to continue to build long-term value for shareholders. A sustained higher price for copper will drive higher cash returns to shareholders while allowing us to invest in future value-oriented growth.

We're going to continue to actively monitor the market conditions. We'll carefully manage the timing of our projects and make sure that our financial flexibility remains strong. In closing, our global team is driven by value, and we continue to focus on what matters in our business by executing our plans responsibly, safely and efficiently and maximizing the value of our vast resources. We thank you all for your attention, and we'll now open up the call for questions.

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