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Over the past year, many Freeport-McMoRan Inc. (NYSE:FCX) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Freeport-McMoRan

The Last 12 Months Of Insider Transactions At Freeport-McMoRan

Over the last year, we can see that the biggest insider sale was by the Chairman, Richard Adkerson, for US$2.8m worth of shares, at about US$50.78 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$37.15). So it may not tell us anything about how insiders feel about the current share price.

Insiders in Freeport-McMoRan didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:FCX Insider Trading Volume February 7th 2025

I will like Freeport-McMoRan better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Freeport-McMoRan Have Sold Stock Recently

The last three months saw significant insider selling at Freeport-McMoRan. Specifically, Executive VP & CFO Maree Robertson ditched US$584k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Freeport-McMoRan Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Freeport-McMoRan insiders own 0.5% of the company, worth about US$253m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Freeport-McMoRan Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Freeport-McMoRan is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Freeport-McMoRan and understanding it should be part of your investment process.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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

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.

We recently compiled a list of the Jim Cramer Discusses These 9 Stocks & US AI GPU Advantages. In this article, we are going to take a look at where FMC Corporation (NYSE:FMC) stands against the other stocks.

In his latest appearance on CNBC's Squawk on the Street, Jim Cramer spent nearly all of his show discussing stocks. As has been the case with most of his morning appearances in 2025, he discussed Wall Street's favorite GPU stock in quite a bit of detail. While we've covered a lot of his remarks in our coverage of the stock in our next list, some points are worth mentioning in the introduction.

While Wall Street is focused on whether cloud and data center spending for the firm will materialize after China's DeepSeek purportedly demonstrated lower training costs and by effect lower spending requirements, Cramer is focused on the firm's Blackwell GPU.

For Cramer, while the Blackwell GPU is an impressive product, the timeline of its orders materializing is surprising. He commented on a recent share price target reduction by Citi to share that the only significant takeaway for him from the note concerned the orders. Before he read the note, Cramer kept "thinking that Blackwell, which is the next generation, is selling like mad." However, reading the note surprised him as he learned that the first customer was only starting to receive the products. This leads Cramer to conclude that the money from the latest AI GPUs that the firm earns is "going to be much more forward and not now in front of us."

Yet, he remains optimistic because the orders will materialize as Cramer believes "because obviously if you're spending all this money you're gonna get Blackwell." The CNBC host then shifted the conversation to the importance of the Blackwell GPUs. After analyzing the GPU orders, "you say to yourself, why do you need Blackwell? Why do you need this incredibly important platform that has software?" he wondered.

The answer to this question, according to Cramer is because "you need it [Blackwell] for both inference and you need it for training," even though according to him "There are people who said with DeepSeek you don't."

The GPU orders are particularly important when we analyze Cramer's first remarks for the GPU stock after the DeepSeek stock market selloff. Orders are one key metric that Cramer believes investors should watch to confirm whether the damage done by the selloff is permanent. In a recent morning appearance, he outlined that "any [GPU] order pullback" is a key metric along with a potentially reduced focus on energy spending.

Our Methodology

To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on February 5th.

For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

A laboratory technician carefully mixing chemicals in a laboratory.

FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders In Q3 2024: 41

FMC Corporation (NYSE:FMC) is an agricultural inputs company that sells insecticides, herbicides, and other associated products. Its shares closed 2024 22% lower as the firm struggled from a weak agricultural market beset with inventory problems. FMC Corporation (NYSE:FMC)'s shares were dealt a hefty blow in February when they dropped by a stunning 33% in one day following the firm's fourth-quarter earnings. The results saw the firm's midpoint 2025 earnings guidance of $3.48 miss analyst estimates of $4.36 by a wide margin. Here's what Cramer said as FMC Corporation (NYSE:FMC)'s shares were falling:

"There's a company called FMC. And that's an agricultural company. It's an old food machinery company, it's based in Philadelphia. And the stock is down 35% today because they have inventory problems. Too much of the crop chemicals used for . . . corn, potatoes, and sorghum. I just remind that there certain industries that are in this economy that are seemed to just, I don't know we have to stay close to ag[riculture]. That's a very very bad number. And I'm kind of shocked because it's a pretty reliable company. But the ag business maybe not as great as we think judging from the fact that they have a lot of insecticides, herbicides. So, stay close to ag."

Overall FMC ranks 6th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of FMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

Investing.com — UBS downgraded FMC Corporation (NYSE:FMC) to "Neutral" from "Buy" given increased execution risks tied to the company's strategic pivot and ongoing pressure from declining crop chemical demand. The brokerage also slashed its price target by 42% to $38 from $66.

UBS analysts noted that FMC’s revised 2025 outlook marks a third consecutive year of EBITDA below $1 billion, with risks mounting from pricing pressure and a shift toward a direct-to-farm sales model in key markets like Brazil. The transition, expected to take place over the next one to two quarters, adds complexity and potential delivery risks.

The abrupt change to lower manufacturing costs and pricing for channel partners was a bit of a surprise, UBS said, warning that ongoing debates over diamide patent expirations could weigh on the stock for years.

The firm also lowered its 2025 EBITDA forecast by 14% to $877 million, 7% below consensus estimates, and flagged concerns over weaker free cash flow (FCF). With projected FCF of around $290 million in 2025, FMC may face extended deleveraging, limiting cash for growth initiatives.

UBS cut its valuation multiple on the stock, citing a "delayed earnings recovery trajectory" and heightened exposure to commodity-driven pricing risks.

UBS downgrades FMC Corp, slashes price target on execution risks

BPER CEO says Italy's M&A wave prompted defensive bid for Pop Sondrio

U.S. stocks slip after weak nonfarm payrolls, decline in consumer sentiment gauge

Centrus Energy Corp. (LEU) came out with quarterly earnings of $3.20 per share, beating the Zacks Consensus Estimate of $1.06 per share. This compares to earnings of $3.58 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 201.89%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced a loss of $0.30, delivering a surprise of -266.67%.

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

Centrus Energy , which belongs to the Zacks Mining – Non Ferrous industry, posted revenues of $151.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 44.11%. This compares to year-ago revenues of $103.6 million. The company has topped consensus revenue estimates three times 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.

Centrus Energy shares have added about 26.7% since the beginning of the year versus the S&P 500's gain of 3.1%.

What's Next for Centrus Energy?

While Centrus Energy 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 Centrus Energy: 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 $0.36 on $72.5 million in revenues for the coming quarter and $2.83 on $418.8 million 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 – Non Ferrous is currently in the bottom 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.

Another stock from the same industry, Lundin Mining (LUNMF), has yet to report results for the quarter ended December 2024.

This base metals mining company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +80%. The consensus EPS estimate for the quarter has been revised 22.4% lower over the last 30 days to the current level.

Lundin Mining's revenues are expected to be $1.17 billion, up 10.8% from the year-ago quarter.

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

Centrus Energy Corp. (LEU) : Free Stock Analysis Report

Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Very Exciting Development at Thor!

ESTES PARK, CO / ACCESS Newswire / February 6, 2025 / Taranis Resources Inc. ("Taranis" or the "Company") (TSX.V:TRO)(OTCQB:TNREF) is providing an initial overview of the 2024 diamond drilling program at Thor. Taranis undertook a drilling exploration program at Thor using a ‘linked epithermal-porphyry' geological model, and this approach has resulted in the identification of two intrusive bodies at Thor. The basic premise of this geological model is that epithermal deposits can be underlain by large, mineralized intrusives. This News Release will be the first of several that discuss more detailed exploration results of the 2024 exploration program.

In the +130-year history of exploration and mining at Thor, there have been no documented occurrences of intrusive rocks. The presence of deep, underlying intrusive rocks at Thor became a high-level priority in 2021 after it was recognized that there were large areas of hydrothermal alteration at Thor surrounding the epithermal deposit that had hallmarks of alteration related to something other than the epithermal deposit itself. The host rocks at Thor are Lower Paleozoic metasedimentary-metavolcaniclastic rocks, and alteration has manifested itself quite differently from deposits in British Columbia that are hosted in volcanic rocks.

In May 2022, Expert Geophysics completed an airborne magnetotelluric ("MT")/magnetic survey at Thor and identified a number of geophysical features that indicated the presence of a concealed intrusive. In 2024, the initial drill holes were completed to test some of these features, and a variety of formations were encountered that either have direct connection with an intrusive – or are related to contact alteration around an intrusive. These intrusive-related rocks bear little or no resemblance to the geology mapped at surface and are subject of ongoing investigation including geochemistry, age-dating and Transmission Electron Microscopy ("TEM") mineralogical analyses at the Colorado School of Mines, Golden, Colorado. Taranis has also completed Rare Earth Element and Major Oxide geochemistry on drill cores from 2024 to gain further insight into the large-scale alteration patterns seen in the host rocks.

Two Types of Intrusives at Thor and Relationship to the Epithermal Deposit

The figure that accompanies this News Release shows the spatial relationship between the epithermal deposit at Thor, and some of the underlying alkalic intrusive and intrusive-related rocks. This model is based on surface mapping, diamond drilling (over 250 drill holes), and inverted magnetic and resistivity data from Expert Geophysics. Alkalic rocks are rich in sodium and potassium relative to silica, and are important when differentiating intrusive rocks in British Columbia because this particular type of intrusive is related to some of the largest intrusive-related gold and copper deposits in British Columbia.

Intrusive Event #1

The oldest, and largest igneous event is I-1 ("Igneous Event #1") and is identifiable as a resistive, 1.2 km diameter circular-shaped igneous body ~2.0 km southeast of where the epithermal deposit is located. The top of this intrusive body is located at least 400m below the surface. Immediately overlying this feature is Z-900/1300 that is an elongated resistivity feature that is a contact-related alteration zone that is heavily albitized (55% albite), ankerite (16%) and kaolinite (19%) characteristic of advanced argillic alteration. It also contains ludwigite (5%) that is found in skarn zones around intrusives. Z-900/1300 will be discussed in greater detail in upcoming news releases, but contains anomalous gold over substantial widths (+30m). Only the northern edge of this feature could be drill-tested in 2024, but Taranis has taken actions to be able to fully evaluate this sizeable feature in 2025. The fine-grained nature of the minerals in the rock precluded the identification of minerals (including albite) in the field and TEM had to be used. Based on various age relationships, I-1 is known to be the same age as the Thor epithermal deposit, and it is almost certainly the source of the precious and base metals in the Thor epithermal deposit.

Intrusive Event #2

A younger, second intrusive (I-2) ("Igneous Event #2") forms two dyke-like bodies that flank I-1. This dyke system is enveloped in wide zones of epidote, chlorite and magnetite. I-2 crosscuts the Silver Cup Anticline. The dyke itself is alkalic and mafic in composition, and has high levels of magnesium. The presence of up to 40% magnetite makes the dykes mappable using geophysical surveys. I-2 is completely devoid of precious or base metals, but again contains a considerable amount of albite (up to 58%). I-2 is a late-stage magmatic event that occurred after the emplacement of the Thor epithermal deposit, and has in fact intruded and disrupted the epithermal deposit. This observation means that the Thor epithermal deposit likely continues down-dip of the known deposit east of the dyke.

Comment

John Gardiner, President and CEO of Taranis states "Exploration companies talk about finding large, hidden mineral deposits in British Columbia, and unequivocally this approach is going to find British Columbia's next generation of mines. This requires a long-term approach not only being able to identify favorable geology, but the investment of time and capital. The jewel at Thor lies in the ability to find a mineralized intrusive, and we have made significant progress in that direction. Taranis' prescription has involved a systematic approach to targeting, transitioning from shallow to deeper exploration. Taranis has also leveraged modern technology to define and understand these targets, of which some examples include passive electromagnetic surveying, alteration geochemistry, TEM and most of all experience".

About Taranis and Thor

Taranis Resources is a Canadian mineral exploration company. The Thor Project is in southeast British Columbia. Taranis has completed upwards of 250 drill holes, linking all previously known mines into a single, near-surface epithermal deposit that has been recently updated into an NI 43-101 Mineral Resource Estimate (see Taranis News Release dated April 11, 2024). In the summer of 2024, Taranis initiated deep drilling aimed at finding the source of the 2 km long epithermal deposit.

Qualified Person

Exploration activities at Thor were overseen by John Gardiner (P. Geo.), who is a Qualified Person under the meaning of Canadian National Instrument 43-101. John Gardiner is a principal of John J. Gardiner & Associates, LLC which operates in British Columbia under Firm Permit Number 1002256. Mr. Gardiner has reviewed and approved the comments contained within this News Release.

For additional information on Taranis or its 100%-owned Thor project in British Columbia, visit www.taranisresources.com

Taranis currently has 100,348,854 shares issued and outstanding (113,827,227 shares on a fully-diluted basis).

TARANIS RESOURCES INC.

Per: John J. Gardiner (P. Geo.), President and CEO

For further information contact:

John J. Gardiner681 Conifer LaneEstes Park, Colorado 80517Phone: (303) 716-5922 Cell: (720) 209-3049 johnjgardiner@earthlink.net

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

This News Release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of factors beyond its control, and actual results may differ materially from expected results.

SOURCE: Taranis Resources, Inc.

View the original press release on ACCESS Newswire

Key Insights

The projected fair value for FMC is US$53.74 based on 2 Stage Free Cash Flow to Equity
FMC's US$35.92 share price signals that it might be 33% undervalued
Analyst price target for FMC is US$59.56, which is 11% above our fair value estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of FMC Corporation (NYSE:FMC) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.

We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.

See our latest analysis for FMC

Is FMC Fairly Valued?

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

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:

10-year free cash flow (FCF) estimate

	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034
Levered FCF ($, Millions)	US$492.0m	US$573.7m	US$635.5m	US$499.0m	US$425.8m	US$385.4m	US$362.8m	US$350.8m	US$345.4m	US$344.4m
Growth Rate Estimate Source	Analyst x5	Analyst x7	Analyst x2	Analyst x1	Est @ -14.68%	Est @ -9.49%	Est @ -5.86%	Est @ -3.31%	Est @ -1.53%	Est @ -0.29%
Present Value ($, Millions) Discounted @ 7.5%	US$458	US$497	US$512	US$374	US$297	US$250	US$219	US$197	US$181	US$168

("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$3.2b

We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.6%. We discount the terminal cash flows to today's value at a cost of equity of 7.5%.

Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$344m× (1 + 2.6%) ÷ (7.5%– 2.6%) = US$7.3b

Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$7.3b÷ ( 1 + 7.5%)10= US$3.6b

The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$6.7b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$35.9, the company appears quite good value at a 33% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out.

NYSE:FMC Discounted Cash Flow February 6th 2025The Assumptions

Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at FMC as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.5%, which is based on a levered beta of 1.175. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

SWOT Analysis for FMC

Strength

Debt is well covered by earnings.

Dividends are covered by earnings and cash flows.

Dividend is in the top 25% of dividend payers in the market.

Weakness

Earnings declined over the past year.

Opportunity

Annual earnings are forecast to grow for the next 3 years.

Good value based on P/E ratio and estimated fair value.

Threat

Debt is not well covered by operating cash flow.

Annual earnings are forecast to grow slower than the American market.

Next Steps:

Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For FMC, we've compiled three additional factors you should assess:

Risks: To that end, you should learn about the 3 warning signs we've spotted with FMC (including 1 which doesn't sit too well with us) .

Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for FMC's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.

Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.

We recently compiled a list of the 10 Firms Defy Wednesday's Broader Market Optimism. In this article, we are going to take a look at where FMC Corp. (NYSE:FMC) stands against the other stocks.

Wall Street extended its winning streak on Wednesday, with all of its main indices closing in the green territory, as investors seemed to have already factored in the news of tariffs imposition alongside uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies, however, defied a broader market optimism, mostly due to disappointing earnings results. This article details the reasons behind the drop in their share prices and latest earnings performance.

To come up with Wednesday’s biggest losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A laboratory technician carefully mixing chemicals in a laboratory.

FMC Corp. (NYSE:FMC)

Chemical manufacturer FMC Corp. nosedived by 33.53 percent on Wednesday to finish at $35.92 apiece following a plunge in its earnings performance in the fourth quarter and full year of 2024.

In a statement, FMC Corp. said net income for the full year 2024 plummeted by 74 percent to $342 million while revenues declined by 5 percent to $4.25 billion.

In the fourth quarter alone, the company swung to a net loss of $16 million, reversing a net income in the same quarter in 2023.

Revenues for the quarter, however, increased by 7 percent to $1.22 billion.

For the full year 2025, the company also posted a conservative outlook, with revenues expected to settle between $4.15 billion and $4.35 billion, flat from 2024.

“While we saw a good increase in volume, the growth was below our expectations as we learned during the quarter that customers in many countries sought to hold significantly less inventory than they have historically. This dynamic, along with more pronounced FX impacts, acted as a headwind to further growth,” said FMC Chairman and CEO Pierre Brondeau.

Overall FMC ranks 1st on our list of Wednesday's top losers. While we acknowledge the potential of FMC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

A Relative Strength Rating upgrade for Gold Field ADR shows improving technical performance. Will it continue?

We recently compiled a list of the 12 Biggest Lithium Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Sociedad Química y Minera de Chile S.A. (NYSE:SQM) stands against the other lithium stocks.

Lithium is a soft, silver-white alkali metal that has become a cornerstone of the clean revolution. Its commonly used form, lithium carbonate, is required for the production of lithium-ion batteries. These power a variety of technologies, including vast renewable energy storage systems and electric vehicles (EV), making them nearly indispensable in the development of sustainable energy solutions. Although EVs have been available for a while, it wasn't until recent technology breakthroughs and cost reductions that they became a more reliable option for consumers, resulting in an increase in lithium demand. The International Energy Agency states that the demand for lithium will climb by over 40 times between 2020 and 2040, particularly for use in battery storage and electric cars. As per Fortune Business Insights, the global lithium market achieved a valuation of $22.19 billion in 2023 and is expected to reach $134.02 billion by 2032, reflecting a CAGR of 22.1%.

According to a McKinsey report, the global drive to net-zero will depend on guaranteeing a consistent supply of essential battery raw materials, especially as demand for EVs climbs toward the latter of this decade. Based on the report, the global market for BEV passenger cars is expected to increase sixfold between 2021 and 2030, with yearly sales rising from 4.5 million to almost 28 million units during that time. In addition, such a forecast indicates that the sector is "likely to confront persistent long-term challenges" in line with demand. McKinsey also states that 80% of all lithium mined now is used by battery manufacturers, and by 2030, that number may rise to 95%.

On the other hand, analysts predict increased volatility in lithium carbonate in 2024, following a challenging year in which the metal's price plunged 22% due to a global supply glut. However, some balance is expected to recover. S&P Global predicts that as production cuts begin to reduce excess supply, lithium surplus would fall to 33,000 metric tons in 2025 from 84,000 metric tons in 2024. According to Chris Berry, president of House Mountain Partners, however, the behavior of the lithium price over the next year may be unpredictable. He said the following:

“Lithium price volatility is a feature of the energy transition and not a bug. You have a small but fast-growing market, opaque pricing, legislation designed to rapidly build critical infrastructure underpinned by lithium and other metals, and this is a recipe for boom-and-bust cycles demonstrated by extremely high and extremely low pricing.”

Our Methodology

For our list of the 12 biggest lithium stocks to buy, we narrowed down companies involved in lithium mining and supply, lithium-ion battery sales, or technologies related to battery operations. The names on this list are ranked in ascending order according to the hedge fund sentiments surrounding them, using data from Insider Monkey’s Q3 2024 database.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A scientist in a lab coat mixing the chemicals for the Liposomal Bcl-2 drug development.

Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Number of Hedge Fund Holders: 12

Chilean chemical company Sociedad Química y Minera de Chile S.A. (NYSE:SQM) manufactures industrial chemicals, iodine, lithium, and plant nutrients. SQM, one of the world's largest lithium producers, relies primarily on the Atacama Desert's abundant natural resources, which include the Tarapacá and Antofagasta regions.

Citi revised its outlook for Sociedad Química y Minera de Chile S.A. (NYSE:SQM) back in December, lowering the price target from $64 to $60 while maintaining a Buy rating. The updated price target accounts for the company's expected 55% year-over-year decline in EBITDA in 2024, with average lithium prices forecast at $11,000 per ton, despite optimism about demand and production. Nonetheless, Citi expects a 22% year-over-year increase in EBITDA in 2025, driven by increased lithium sales volumes and a modest 10% price increase.

Although revenue met expectations at $1.08 billion, SQM reported adjusted earnings per share of $0.46 in the third quarter, $0.17 lower than the analyst consensus of $0.63. The company also reported $3.46 billion in total revenues for the first nine months of 2024, a significant decrease from the $6.16 billion recorded in the same period last year. Moreover, due to oversupply pressures, the company reported that average realized lithium prices fell 24% since Q2 2024, despite an 18% year-over-year increase in lithium sales volumes to more than 51,000 metric tons.

Overall SQM ranks 11th on our list of the biggest lithium stocks to buy according to hedge funds. While we acknowledge the potential of SQM as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SQM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

American chemical manufacturing company FMC Corporation (FMC), a major producer of insecticides and crop protection products, saw its stock plunge after a disappointing fourth quarter earnings report.

The company expects adjusted earnings per share (EPS) forecasts for its current first quarter fell short of analyst estimates for $4.40. Falling crop prices and tariff concerns also contributed to the negative stock moves.

Watch the video above to hear Market Domination anchors Josh Lipton and Julie Hyman discuss the latest on the company’s disappointing performance.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Josh Lynch

Video Transcript

First up, we’ve got to look at FMC Corporation.

Those shares plunging as the company’s forecast disappoints and fuels some growth concerns.

What is FMC, you might ask?

Well, guess what?

It’s a huge maker of insecticides, crop protection products, as they call it.

They sell those products all over the globe, and FMC is actually in the S&P 500.

It is the worst performing stock in the S&P today.

Listen to this.

The company’s forecast for the full year for adjusted.

Earnings per share is at most $3.70.

Analysts had been looking for 440.

Josh, yeah, this one is trending at the lowest intraday level since 2016.

CEOs saying the company needs a stronger reset than what I thought initially.

Analysts are weigh in.

RBC downgrades it to sector perform, talks about how the Q4 was solid, but weak organic growth, Forex headwinds.

Morgan Stanley cut the target to 46.

Doesn’t think investors, they say reengage with this one until they show they can reach 2025 EBA guidance of between 870 and 950 among other bogies they’re looking for.

Yeah, I mean this has a lot to do with what’s going on in the agricultural markets, crop prices falling.

There’s also, of course, concerns now about tariffs and whether that’s going to weigh on the market.

The CEO of the company Pierre Bronre said the company needs a stronger reset than what I thought initially, and it sounds like investors were listening to that message.

Participants

Curt Brooks; Director, Investor Relations; FMC Corp

Pierre Brondeau; Chairman & Chief Executive Officer; FMC Corp

Andrew Sandifer; Chief Financial Officer, Executive Vice President; FMC Corp

Ronaldo Pereira; President; FMC Corp

Vincent Andrews; Analyst; Morgan Stanley & Co. LLC

Joshua Spector; Analyst; UBS Securities LLC

Christopher Parkinson; Analyst; Wolfe Research, LLC

Richard Garchitorena; Analyst; Wells Fargo Securities, LLC

Arun Viswanathan; Analyst; RBC Capital Markets Wealth Management

Benjamin Theurer; Analyst; Barclays Capital Inc.

Stephen Byrne; Analyst; BofA Global Research (US)

Frank Mitsch; Analyst; Fermium Research LLC

Michael Harrison; Analyst; Seaport Global Securities LLC

Kevin McCarthy; Analyst; Vertical Research Partners

Presentation

Operator

Good afternoon and welcome to the fourth quarter of 2024 call for FMC Corporation. This event is being recorded. (Operator Instructions)And I would now like to turn the conference over to Mr. Curt Brooks, Director of Investor Relations for FMC Corporation. Please go ahead.

Curt Brooks

Thanks. Good afternoon, and welcome to FMC Corporation's fourth quarter earnings call. Joining me today are Pierre Brondeau, Chairman and Chief Executive Officer; Andrew Sandifer, Executive Vice President and Chief Financial Officer; and Ronaldo Pereira, President. Pierre will review our fourth-quarter performance, provide an outlook for first-quarter and full-year 2025 performance and share our 2027 financial targets. Andrew will provide an overview of select financial results followed by a strategy update from Ronaldo.After our prepared remarks, we will take questions. Our earnings release and today's slide presentation are available on our website, and the prepared remarks from today's discussion will be made available after the call.Let me remind you that today's presentation and discussion will include forward-looking statements that are subject to various risks and uncertainties concerning specific factors including, but not limited to those that are identified in our earnings release and in our filings with the Securities and Exchange Commission. Information presented represents our best judgment based on today's understanding. Actual results may vary based upon these risks and uncertainties.Today's discussion and the supporting materials will include references to adjusted EPS, adjusted EBITDA, free cash flow, and organic revenue growth, all of which are non-GAAP financial measures. Please note that as used in today's discussion, earnings means adjusted earnings and EBITDA means adjusted EBITDA. A reconciliation and definition of these terms as well as other non-GAAP financial terms to which we may refer during today's conference call are provided on our website. I'll now turn the call over to Pierre.

Pierre Brondeau

Thank you, Curt, and good afternoon, everyone. When I returned as CEO, we started the process to improve our market visibility and deliver a more predictable performance for FMC. Equally important, we also focused the organization on defining and implementing a diamides growth strategy and accelerating the introduction of fluindapyr and Isoflex actives, all while increasing our cost-cutting targets.We are seeing good headways here and delivered two strong quarters with earnings above our guidance. The work we have done has also led to a new way of thinking about the portfolio with products being considered as either parts of our core portfolio or growth portfolio. Framing the products, as you can see on slide 3, in this way will shape a lot our commentary on today's call.Our efforts to improve market visibility and deliver more predictable performance have progressed. However, after eight months in a row, I have modified my view of what needs to be done for FMC to fully benefit from the market upturn when it happens and the quality of our portfolio. The company needs a stronger reset than what I thought initially. We learned a lot in the fourth quarter, and it has become clear that we need to take more aggressive actions to reposition FMC.Above all, we need to significantly lower FMC inventory in the channel much beyond what we were expecting. We also need to give a higher priority to the implementation of our newly developed strategy for Rynaxypyr and Cyazypyr, including accelerating the implementation of a manufacturing cost reduction efforts. These actions will have pronounced negative impact on 2025 performance — financial performance beyond what we anticipated. Additionally, we will need to provide additional resources to strengthen the commercial development of our new active ingredients, or AIs, which is critical to 2025 revenue and beyond.It also became clear to us that beyond inventory level, we missed the impact of an evolving distribution channel in LatAm, which will require us to invest to expand a sales organization to explore new routes to market in that region. We will go into more detail on this topic later in the presentation.2025 is a pivotal year. Let me give some more details about the actions we are undertaking. It is highly feasible to have all of these in place in the next few months. We will greatly benefit from these actions starting in 2026, but it will penalize our short-term financial performance.First, we are committed to decreasing the level of FMC products in the channel. We will make certain that our products move from the channel to the ground faster than our sales to the channel. This will be a high priority for the company. Critically, this means the volume growth we are forecasting will be heavily driven by new routes to market and new products, where channel inventory is not an issue.Second, the quarter, we are completing the first phase of significant manufacturing cost reduction of Rynaxpyr and Cyazypyr. These cost reductions are critical to delivering our future growth plan, but as I mentioned earlier, it will create some year-on-year negative comparison in revenue in 2025.It is important to remember that Rynaxypyr and Cyazypyr have two critical components, which are managed separately. They are branded diamide products that are sold directly to the market by FMC. In 2024, this was about 75% of our diamide sales. Then there are partner sales, which are solo molecules sold to competitors. A number of the most significant contracts are based on cost-plus pricing. Our significant manufacturing cost decrease will impact the sales value to our partners, as product prices will decrease with manufacturing cost reductions.In 2025, we expect branded Cyazypyr sales to continue to grow. However, we are forecasting overall Rynaxypyr sales to be down as a key partner sales are impacted by a cost-plus contracts and as we position a branded lines for a new market strategy. In addition, we continue to see generic versions over the Rynaxypyr sold in India and China as well as generic offering now in countries such as Argentina, Turkey, Mexico, Pakistan, and Peru. The presence of this generic is not unexpected but negatively impacts price and initially some volume.Third, we are preparing our diamide product lines for the next phase of their evolution. We view FMC's products as two-parts: the core portfolio and the growth portfolio. The core portfolio includes products for which the base molecules used to develop new formulations are already or about to be without patent or data protection. The growth portfolio, by contrast, includes products for which the base molecules are data or IP protected.Cyazypyr, the four new active ingredients: fluindapyr, Isoflex, Dodhylex, and rimisoxafen, and plant health portfolio construct our growth portfolio. Rynaxypyr is a part of the core portfolio, along with the rest of our legacy products. As we'll explain later, the market for Rynaxypyr will transform in the next few years, expanding to new markets and offering strong growth opportunities.The other diamide product, Cyazypyr, is a differentiated product with longer patent and data protection, stronger performance and a more complex manufacturing process. Cyazypyr also offers opportunities to develop higher-performing formulation. Today, no generic companies are selling this molecule in any major markets.Fourth, as we have delivered savings well beyond our restructuring target, we are investing in the expansion of the sales organization to support the growth of new active ingredients and to begin — to develop new routes market we have not explored, especially in LatAm and EMEA.As we'll discuss further in a moment, LatAm Q4 sales were disappointing. In addition to the channel inventory situation, we believe the shifting market structure is also impacting sales. The distribution channel in Brazil has gone through a strong wave of consolidation. Territories that we are well covered and served are not performing as well anymore.This is one of the reasons we have decided new routes to market, including a more direct approach to large growers. That will require increased investments which will be reflecting in our selling cost this year. This is a critical part of the strategy as it generates growth without impacting our efforts to lower FMC channel inventory.With these four steps in place, we believe we are well positioned for growth in 2026 and 2027. And we have strong confidence in our products. FMC, like all technology-based companies, has an evolving product portfolio. Our strategy is to drive commercialization of innovative growth platforms, while maximizing the value over older, off-patent core product through formulations and mixture.We view our core and growth portfolio as well balanced with the core portfolio able to grow at or slightly above the market, while the growth portfolio is expected to grow significantly above market. Sales in the core portfolio will be driven by market demand, new formulation developments, and new routes to market. As you will hear later, Rynaxpyr has high-single-digit growth potential after the planned 2025 correction with the market growing exponentially.In the growth portfolio, the four new AIs have excellent sales potential. The market introduction of the first two molecules, fluindapyr and Isoflex is progressing as planned, with sales approaching $130 million in 2024. The other two molecules Dodhylex and rimisoxafen have at least an equivalent peak sales potential but have later introduction dates.In addition and most importantly, all four of these new products allow us to penetrate large market we don't participate in today. The combined sales of these four molecules at maturity is expected to be substantially larger than the total diamide portfolio today and potentially beyond the $2 billion we previously announced as we find more applications for these products.Regarding plant health, we expect the platform to grow at an annual rate in the mid-20% range out to 2027, with growth rate potentially exceeding that in later years as pheromones scale up. The actions we take in 2025 will allow our portfolio to deliver substantial growth in 2026 and 2027. I want to shift now and provide more detail on our fourth quarter, which are detailed in slide 4 through 6.Q4 revenue of $1.22 billion were below our guidance range. Revenue grew 7% versus 2023 and 9% excluding sales forgone from the divestiture of our Global Specialty Solutions or GSS business in November 2024. The sales increased was heavily attributed to volume gains in our growth portfolio. Sales of these products accounted for over 75% of the growth. That includes Cyazypyr and new AIs as well as the plant health business, which grew 33%, mainly from biological. Lower pricing of 3% was slightly better than we expected, but an FX headwind of 5% was higher than the low single digit we have forecasted.LatAm sales were most disappointing as high competition to prices and terms that we were unwilling to meet, which in addition to credit risks led us to pass on some sales. As we were confident that we would meet our EBITDA and EPS targets, we had the flexibility to walk away from unattractive sales opportunities.Additionally, we saw lower-than-expected demand across most regions, as customers lowered the amount of inventory they are willing to hold versus historical level. While we did anticipate customers will hold less inventory in an environment of higher interest rates, lower commodity prices and a perception of secure supply, we were not expecting behavior to change to such a degree. Given the above assumptions and the current high levels of FMC product in the channel, we now believe we have elevated channel inventories in some countries in LatAm, including Brazil, Asia, including India as well as Canada and Eastern Europe.We reported fourth-quarter EBITDA of $339 million, which was 33% higher than last year and $3 million higher than our guidance midpoint. Lower pricing and FX headwinds were more than offset by higher volumes as well as favorable costs, including continued contribution from a restructuring program. Input costs were favorable due to lower raw material costs with much lower unabsorbed fixed costs than we recorded in previous quarters. The reduced cost, coupled with sales growth, led to a strong EBITDA margin of 27.7%, an all-time Q4 high.Slide 7 shows the return of full year — the results of full year 2024. Sales declined 5% as higher volume, mainly in the second half of the year, was more than offset by lower pricing and FX headwinds. Although EBITDA declined 8%, we posted EBITDA margin of 21%, which was only a slight decline versus prior year despite the drop in sales. Part of this was due to the strong cost including $165 million of cost benefits from our restructuring actions.Looking at 2025, we can see our full-year expectations on slide 8. We are expecting full-year sales of $4.15 billion to $4.35 billion, which is flat to prior year at the midpoint and up 3%, excluding approximately $110 million of lost sales from the GSS sale. We are forecasting moderate gains in volumes driven by our growth portfolio as well as the expansion of our customer base. This volume growth is forecasted to be partially offset by deliberate actions we are taking to reduce channel inventory in many countries.Pricing is expected to be down low- to mid-single digits with the majority of the pricing headwinds due to our diamide partners. As we discussed earlier, those contract adjustments will have the most impact in the first half of the year due to the timing of those sales. We are forecasting FX to be a low- to mid-single-digit headwinds for the year as the US dollar is projected to remain strong.Despite these challenges to sales, we expect to deliver higher EBITDA versus the prior year with an expected range of $870 million to $950 million, which is up 1% at the midpoint. Excluding the GSS impact, midpoint of guidance is up about 4%.We expect COGS to be favorable $175 million to $200 million due to lower raw materials, favorable fixed cost absorption, and restructuring benefits. Offsetting these benefits are expected to be lower price, the $65 million to $75 million FX headwind, and investment in sales organization. Adjusted earnings share is expected to be between $3.26 and $3.70, which is flat at the midpoint to prior year.As shown in our Q1 guidance on slide 9, we expect a low first quarter as we aggressively start the correction process early in the year. Sales are expected to be $750 million and $800 million, a decline of 16% against prior year due to negative price, FX, and volume. Excluding an estimated $24 million of lost GSS sales, the decline is 13% at the midpoint.We expect lower volume for two reasons. One is excess levels of FMC inventory in the channel in many countries, which is amplified by customer prioritizing much lower than historical inventory level.The other is specific to the United States. In the second half of 2024, our distribution customers in the United States replenished their depleted inventory in advance of the growing season. Normally, retailers and growers would start pulling that volume through during Q1. However, this year, due to initiatives to keep inventory low and cautious purchasing from low commodity prices, we are making the assumption that pull-through by retailers and growth will occur more evenly over the three-quarter season than in prior years. This is expected to delay reorders from distributors and will result in weaker volume in Q1.While this creates a significant challenge for our Q1 outlook, we want to make sure we are setting expectations that reflect our belief of how the US market could behave this year, which is much different than our historical view of this market. We expect Q1 price to be lower in the mid- to high-single digits with over two-third of this due to the price adjustment for diamide partner contracts. FX is also expected to be a mid-single-digit headwind.Similar to our full-year expectation, we are forecasting continued expansion of a growth portfolio in the quarter. We are gaining Q1 EBITDA at $105 million to $125 million, which is a decline of 28% at the midpoint. Lower pricing and FX headwinds are expected to be partially offset by reduced COGS, including lower material and favorable fixed cost absorption. Adjusted EPS is expected to be between $0.05 and $0.15.I'll now turn the call over to Andrew to cover some financial items and how this guidance impacts our balance sheet.

Andrew Sandifer

Thank you, Pierre. Before I get into the normal review of key financial results, let me start this afternoon with an update on our restructuring program on slide 10. When we initially announced our restructuring program in late 2023, we targeted delivering $50 million to $75 million of net savings in the 2024 P&L, with $150 million in run rate savings by the end of 2025, both measured against the 2023 baseline.As we progress through 2024, we identified a number of areas where we could move more aggressively to reduce our cost structure, raising our targets at our second-quarter earnings call and again on our third-quarter call to $125 million to $150 million in 2024 net savings and more than $225 million in run rate savings by the end of 2025. While there were many factors that contributed to these increased targets, the biggest factor was a major revamping of sourcing for raw materials for our diamide products.I'm pleased to report we exceeded our increased targets, finishing 2024 with net savings delivered in the P&L of $165 million, largely in operating expenses but with savings in cost of goods sold as well. We also now have a clear line of sight to run rate savings of more than $250 million by the end of 2025 with a very significant contribution from lower cost of goods.Our restructuring program has impacted every part of the company, resulting in fundamental changes in our operating model, including how we are organized, where we operate and the way we work. While we do have some remaining in-flight projects to finish delivering the full savings run rate in 2025, we've incorporated the expected year-on-year benefits of our restructuring actions and our outlook for 2025. As such, we consider our restructuring program to be essentially complete, and we will ensure delivery of the remaining savings through our normal management of delivery of our guidance.Moving back to key income statement items. FX was a 5% headwind to revenue growth in the fourth quarter, primarily stemming from the Brazilian reais. For full year 2024, FX was a 2% headwind at revenue with the Brazilian reais and the Turkish lira as the largest contributors, followed by smaller headwinds across a number of Asian currencies. For 2025, we anticipate a low to mid-single-digit headwind on revenue from FX with the Brazilian reais, the Turkish lira, and the euro being the most significant drivers.Unlike 2024, we anticipate a meaningful EBITDA headwind from FX in 2025 in the range of $65 million to $75 million. 2024 EBITDA benefited from the timing of currency movements during the year that created favorability against the hedges we had in place.In 2025, we continue our normal systematic approach to hedging, but with the strengthening of the dollar that happened in late 2024 and into 2025 and with the current forward curves, we do not expect to see a repeat of the favorability we saw in 2024. Rather, we expect to see a more normal relationship between FX impacts at revenue and EBITDA, with our hedging program dampening, but not limiting the impact on EBITDA and negative FX movements.Interest expense for the fourth quarter was $51.8 million, down nearly $5 million compared to the prior-year period, driven by lower debt balances and lower interest rates. For full year 2025, we expect interest expense to be in the range of $210 million to $230 million, down roughly $15 million year on year at the midpoint, reflecting the benefit of debt reduction in 2024 and modestly lower interest rates in 2025.We ended 2024 with a lower-than-expected effective tax rate on adjusted earnings of 10.9%. The mix of earnings by jurisdiction shifted meaningfully versus our expectations in the fourth quarter, with substantially less profit attributed to high tax jurisdictions like Brazil. The fourth-quarter effective tax rate of 7.9% reflects the true-up to the full-year rate relative to the 14% rate that had been accrued through the third quarter.With the impacts of lower effective tax rate for 2024, adjusted earnings per share for Q4 were up $0.72 or 67% versus the prior period, a significantly higher increase than seen at EBITDA. The biggest driver of increased earnings per share remains increased EBITDA, representing $0.59 of the $0.72 increase in EPS year over year, while lower tax contributed $0.11. For 2025, we anticipate that our effective tax rate should be in the range of 13% to 15% with the approximately 3 percentage point increase at the midpoint, driven by the expected mix of profit by jurisdiction.Moving next to the balance sheet and leverage on slide 11. Gross debt at December 31 was approximately $3.4 billion, down nearly $600 million versus the prior year. Debt reduction came both from the proceeds from the sale of our GSS business, which closed on November 1, as well as from discretionary cash flow.Cash on hand increased $55 million to $357 million resulting in net debt of approximately $3 billion. Gross debt to trailing 12-month EBITDA was 3.7 times at year-end, while net debt to EBITDA was 3.3 times. Relative to our covenant, which measures leverage with a number of adjustments to both the numerator and denominator, leverage was 3.7 times as compared to a covenant of 5.0 times.As we announced a short while ago, we recently amended the leverage covenant of our credit agreement to provide additional headroom and duration covenant relief given our outlook for 2025 through 2027. We expect to end 2025 with leverage metrics essentially flat to 2024 and then to show improving metrics with rapidly accelerating EBITDA growth in 2026 and 2027. This is coupled with disciplined cash management, including continuing to direct all discretionary free cash flow to debt reduction.We remain committed to returning our leverage to levels consistent with our targeted BBB/Baa2 long-term credit ratings. While this will take a bit longer than we previously hoped we are confident we're on the right path to get our leverage metrics back in line as our business more fully recovers.Moving on to free cash flow on slides 12 and 13, free cash flow for full year 2024 was $614 million, an increase of more than $1.1 billion versus the prior year. The year-on-year increase was driven by a $1.04 billion improvement in cash from operations, which benefited particularly from improved payables and inventory, despite over $100 million of cash restructuring spending.Capital additions and other investing activities were down substantially as we constrained spending to only the most critical projects. Cash flow from discontinued operations improved, in part due to a one-time insurance element.For 2025, we expect free cash flow of $200 million to $400 million, a decrease of $314 million at the midpoint. Cash from operations is the key driver of the decrease with normalization of working capital after the pronounced correction in 2024. Capital additions are also expected to be up somewhat, but with continued focus on only the most essential projects, including capacity expansion to support new products.Cash flow from discontinued operations is also up slightly but in line with our multi-year average. Free cash flow conversion from adjusted earnings is expected to be approximately 69% at the midpoint.With that, I'll hand the call over to Ronaldo.

Ronaldo Pereira

Thanks, Andrew. I want to start off by providing an update on our diamide strategy, which is supported by slides 14 through 21. As we look ahead, it's clear that our commercial strategy is evolving, driven primarily by the upcoming patent expirations, particularly for Rynaxypyr. While this presents challenges, we see it as an opportunity to transform, compete, and advance in new ways.Like other products that transition to the post-patent phase of life, when we look back at the makeup of our diamide business years from now, it will look much different than it does today. Over the past several quarters, we have spoken to the broad strategy for these products as they shift to their post-patent life cycle.At a high level, this strategy that we've communicated, which you can see on slide 15, is that we will continue to offer the basic solo formulations under the trusted FMC brand names at lower price points to compete with generics entering the market. At the same time, we will offer high-value versions of diamides via new, often patented formulations and mixtures. This evening, I'll share in more detail how we are enacting this strategy and share how we see the next few years unfolding for this product class.Going forward, you will hear us start talking about the two distinct products, Rynaxypyr and Cyazypyr rather than imply referring to them as the diamides as we've done in the past. Both products are very potent tools for growers to control insects. But as you can see in slide 16, there are some key differences between the two products.Rynaxypyr has a more limited spectrum, but that spectrum is focused on controlling lepidoptera insects or caterpillars, which is the most valuable addressable market at nearly $5 billion. Cyazypyr, on the other hand, has a much broader scope in terms of types of insects it can control.Our Rynaxypyr sales have outpaced Cyazypyr with roughly a 70-30 split. This is part due to Rynaxypyr's larger market share for caterpillar control and also has been by our own design due to its somewhat simpler manufacturing process and lower cost profile. The market for chlorantraniliprole, or CTPR, which is a chemical name for the active ingredient behind Rynaxypyr will undergo a series of changes over the next few years, and our strategy reflects that.As Rynaxpyr enters the next phase of its product life, it has been included in the core portfolio, along with the other legacy products that are off-patent, like sulfentrazone. All composition of matter patents have expired for Rynaxpyr. And by the end of 2025, almost all process patents will also have expired. We expect generics to enter all major markets with Rynaxpyr with solo formulations of CTPR by the end of 2026.As we mentioned earlier, we are already observing generic CTPR sales in some countries today. As generics enter the market, we will continue to offer solo formulations at lower price point under the trusted FMC brand to compete with the new market entrants. Based on the latest data from international shipments, we believe we are competitive on costs with lower price generics offering the solo molecule, thanks to our recent restructuring actions which have significantly lowered our cost of sales. Lower pricing for the solo formulation will coincide with a significant expansion of acres treated with CTPR. Slide 17 and 18 illustrate how this is likely to occur.Slide 17 shows the global foliar insecticide market, which is about $22 billion at the farmgate. Diamides, as a class of chemistry, are estimated to be about 9% or a little under $2 billion of that overall market with FMC's branded diamides making up about 55% of that share. The remaining 45% is made up of FMC partner sales, generic CTPR, and competitor products within the diamide class that are not Rynaxypyr or Cyazypyr.As you can see that — you can see that the majority of diamide offerings are on the higher end of the treatment per acre price curve with prices ranging from $20 to over $40 per acre. There are almost no diamide products offered below $10, and FMC's diamides are really non-existent in this space. When generics first enter the market, we expect growers who are solely driven by price to be their key customers, which should be less impactful to FMC.The entrance of generics will certainly create competitive pressure against some existing FMC products. But as Slide 18 shows, with our lower manufacturing costs and technology road map, there will be substantial opportunities for Rynaxypyr and Cyazypyr to take share across all points of the price curve from other insecticides such as neonicotinoids and organophosphates. The more favorable environmental profile of both Rynaxypyr and Cyazypyr versus these other insecticide classes would further aid market expansion.As seen on slide 18, we expect that the diamide market will grow from $2 billion up to an estimated $5 billion over time. As volume expands, we will continue to differentiate our Rynaxypyr products from other CTPR offerings with new formulations and mixtures.These new products, which are listed on slide 19, will deliver additional attributes. This innovation can be in the form of adding a second mode of action to combat potential resistance or adding a mixed partner to broaden the spectrum of control while expanding the addressable market. Rynaxypyr is expected to continue to show sales growth, although not at the high levels we observed when the product was earlier in its life cycle. Following the 2025 correction year, we expect overall Rynaxypyr to report a growth rate in the high single digits.On slide 20, you can see the upcoming products in our Rynaxypyr pipeline. Many of these products — these new products will offer additional value to growers. This can be in the form of reduced labor for application by offering rice growers a much lighter weight tablet formulation or — it can be through new mixtures with pheromones and insecticides from other groups that combat resistance and strengthens performance in existing segments.Finally, we plan to introduce seed treatment products, which is an unexplored segment of the market for our branded offerings as well as a mixture with the bionematicide.While the core portfolio grows at or above the market, we expect Cyazypyr and the rest of our growth portfolio to grow at multiples of the market. For Cyazypyr, we have process patents in place in major markets through 2025, with Brazil not expiring until the middle of 2026. In addition to the process patents, we also have a key formulation path enforce Cyazypyr through 2027 in key markets and data protection in place in major regions such as Brazil, the US, and Europe. Depending on the country, this can extend the protection granted to the regional molecule. Data protection creates an additional and costly hurdle for generics to register products even after process patents have expired.Slide 21, shows some of the products in our Cyazypyr pipeline, including mixtures within insecticides from other groups that will broaden the spectrum of control as well as slowdown resistance. Our high load formulations are not only easier to handle for growers, they also improve our cost position. To serve growers in the fruits and vegetables space, we'll be offering a fruit fly bait that is a unique and sustainable solution that leaves no residues and has no restrictions for export.Compared to Rynaxypyr, Cyazypyr has a more complex and more expensive manufacturing process. These factors may cause fewer generics to enter the market compared to Rynaxypyr. Cyazypyr has a broadened spectrum of pests it can strongly control, including white fly, fruit fly, leafminer and psyllid. Given the broader spectrum and our reduced manufacturing costs, we believe we have a sizable opportunity to expand the market for this product.Similar to Rynaxypyr, we are actively promoting and developing new formulations and mixtures to position ourselves well when all patent protection has expired and generics enter the market. Following the 2025 production year, we expect sales of Cyazypyr to grow in the low- to mid-teens.The most exciting part of the growth portfolio are the new AIs that we're launching and expanding over the next few years. We have mentioned before our high expectations for the contribution of these molecules, and will now share more details about what these expectations are and what supports them.Let me start with the two products already in commercialization. The first one is fluindapyr. It is one of the newest active ingredients of the SDHI fungicides, a class of very active products with a strong commercial success. Together, SDHI fungicides represent 15% of the global fungicide market with around $3 billion in combined sales in 2023.SDHI fungicides, are known for being very effective when used to prevent crop disease. This is also the case for fluindapyr. However, what sets it apart from the other active ingredients is the especially broad spectrum of control that covers many diseases of economic importance, such as Asian soybean rust, corn tar spot, coffee rust and damping off in young cotton plants. Fluindapyr also protects crops for ended period, lowering the need to re-spray.These technical attributes are enough to support our confidence in the success of Fluindapyr. But there is another aspect that is equally important. Fluindapyr has given us access to some large market segments that we have never served before. In aggregate, we believe that its addressable market exceeds $2 billion. Soybean rust in Brazil alone is a $3.5 billion market, just to mention one example.In many of these market segments, fluindapyr will be the first technology that we will sell. Going into these new segments with a product that is patent-protected, technically differentiated, and biologically strong will open access to sales of other FMC products.As shown on slide 22, fluindapyr already registered in Brazil, Argentina, the United States and Paraguay, with some other important countries pending registration in the next three years. Sales are expected to be more than $150 million in 2025, exceeding $300 million by 2027.The second product is Isoflex active, a herbicide based on bixlozone that offers a new mode of action in cereals, such as wheat and barley. It's most effective at controlling difficult grasses as well as some key broadleaf weeds. We have been selling this product in Australia with a strong result.With recently approved registration, it has expanded to Brazil, Argentina, India, and the UK. European Union registrations have been submitted, and we expect to begin selling there during 2027. Given the size of cereals market in the EU, Isoflex sales in those countries will provide a substantial boost to the product's global sales. We estimate that the addressable market for cereals in Europe to be about $5 billion.Isoflex sales are expected to be about $100 million in 2025 with sales approaching $250 million by 2027. We expect sales to continue strong growth beyond 2027 as the product becomes more widely used.Our third product is Dodhylex, the first herbicide to be introduced in the market with a new mode of action in over 30 years. In our Q2 call, we described it as a patented rice herbicide. I want to correct that statement. Dodhylex is a novel, patented and versatile herbicide.While its development in rice is more advanced, our confidence that it will be sold on other crops in the future keeps growing every day. Suffice to say that it can be safely applied on several broadleaf crops, such as soybean, sunflower and others. And we believe there are meaningful opportunities to expand the product to these crops beyond 2027. But for today's discussion, let's just stay with rice.There are 165 million hectares of rice planted globally. To put this in perspective, this is 25% more land than soybeans and not so far from corn. Because of cultural reasons, the vast majority of the countries currently have strict regulations that prevent the introduction of genetically modified rice varieties.As a result, decades of weed control with herbicides with similar modes of action have led to a substantial increase in weed resistance, probably more so than in any other major crops. Although it's hard to estimate the size of global rice are infected with resistant weeds, in US alone, some of universities estimate that resistant weeds are present in more than half of all the rice fields.Weeds like barnyard grass and the sprangletop are present in virtually every rice field. And in many of them, they have become resistant to existing herbicides.Differently from other crops, there are many agronomic variations on how rice is planted from country to country: direct-seeded versus transplanted, variety types, irrigated versus rain fed, different irrigation methods, et cetera. Today, all these variables result in limitations on which herbicide can be used. A product that can be safely used on transplanted rice can be harmful to the crop when used on direct-seeded fields.Dodhylex is highly safe on rice plants independently of the agronomic practices. Once we launch it, almost all the rice growers will be able to use it without being forced to choose between their herbicides side and their preferred agronomic practices.High versatility, strong performance on resistant weeds, unparalleled crop safety on a crop that is planted in all continents and potential to expand even further in traditional crops, these are the key reasons behind our high expectations on Dodhylex's commercial performance in the next few years. Looking forward into the future, we continue to believe that our new active ingredients can achieve or surpassed $2 billion in revenue at maturity.Beyond our new synthetic pipeline, our plant health business is expected to grow at a rate in the mid-20% range out to 2027, led by biologicals with a smaller contribution from pheromones. We still believe there is an excellent opportunity for outsized growth for pheromones, but meaningful growth is not likely to occur until after 2027.In summary, there is a normal potential for expanded sales from our growth portfolio when you consider the new active ingredients and the potential for Cyazypyr to broaden its market reach. In addition, we also have a growing portfolio of biological products, including pheromones that are positioned to provide even further growth.With our core portfolio providing a solid foundation for sales and earnings in a market that is in the midst of recovery, the differentiated nature of our growth portfolio puts us in a strong position to outgrow the market over the coming years.Pierre will now discuss specifically what our expectations are for the next three years and provide some closing remarks.

Pierre Brondeau

Thank you, Ronaldo. Our 2027 targets are laid out on slide 23. We are focusing here on the growth of the company post 2025, which we believe will act as a correction year to reposition our portfolio. The growth rates post-2025 are more representative of the future growth of FMC. The sales of our core portfolio from '24 to '27 are expected to grow at 2% per year.Following the 2025 correction year, we expect total Rynaxpyr growth in the high single digits. The rest of the core portfolio is forecasted to grow at the market rate of about 3% every year.Our growth portfolio is expected to grow at an annual rate of about 24% from '24 to '27. Following the '25 correction year, Cyazypyr growth is projected to be in the low- to mid-teens with growth of both branded and partner sales. The new active ingredients are expected to reach $600 million by 2027.The growth was mostly coming from fluindapyr and Isoflex with a small contribution of Dodhylex based on the launch calendar. The plant health growth rate is expected to be in the mid-20% range with a potentially high-growth pheromones product expected to meaningfully accelerate growth of plant health after 2027. From '24 to '27, the growth portfolio contribution to total company sales is expected to grow from 19% of total company to 30%.Looking beyond 2027, the ramp-up of Dodhylex and addition of new products such as extended biological offerings, the pheromones and the new dual mode of action herbicide rimisoxafen will all contribute to further growth for the company. Combining the core and growth portfolio leads to expected 2027 sales of about $5.2 billion. EBITDA is expected to be about $1.2 billion, equating to a 23% EBITDA margin, which is at the higher end of our industry. This is a revenue annual growth of 7% from '24 to '27 with EBITDA growth at 10%. From '25 to '27, revenue grows at an annual rate of 11%, with EBITDA growing at 15% rate.We are highly confident in the growth path of the company. This confidence comes from the already strong performance of our growth portfolio. I believe FMC has the strongest pipeline in its history, but we are also conscious that taking full advantage of it requires a repositioning of the company in 2025. That is why we will realign our inventory level, implement the newly developed diamide strategy, and invest in our sales organization to support our growth portfolio and develop new routes to market.We can now open the line for questions.

Question and Answer Session

Operator

We will now begin the question-and-answer session. (Operator Instructions)Vincent Andrews, Morgan Stanley.

Vincent Andrews

Thank you and good afternoon, everyone. Pierre, could you help us understand how you expect Rynaxpyr from 2026 and beyond to evolve? You're talking about high single-digit sales growth, but could you maybe help us think about the shape of volume and price over the coming years? And within that, could you let us know your view of price gaps and how do you expect to manage them as the generics proliferate? Thank you very much.

Pierre Brondeau

Sure. From a pricing standpoint, we believe we are in a place right now, where we can compete with generics at the price we understand are the prices which are being practiced by generic company as reported in the latest import data we have.So there is two aspects of it. There is the aspect of the market where we will sell the solo molecule. And there, we will have to make a decision of how deep we go into this market to go further into hectares, which are lower cost — using lower-cost product and to decide where we go and how much of this market we decide to take versus today where we do not have any of this market. So that's what a lower manufacturing cost and new pricing will allow us to do to expand the market we will reach in terms of hectares by going after different type of pesticide.Then there is the high end. As you've seen on the slide presented by Ronaldo, we are actively working on new mixtures of products, which are increasing the efficacy of the product, fighting the resistance, and those products will allow us to differentiate ourselves from the solo molecule, which will have a way less efficacy and do that at a price premium.And finally, we're going to be developing products which will be beneficial from the cost standpoint for us and growers. We talk about high concentrate [and palet]. So it's a mixture of moving our products in two direction. One is to the high end with high-level formulation, which are significantly increasing the efficacy of the product together with having the capability to expand to lower end market because we will have a much lower price, allowing us to go into those markets.

Operator

Josh Spector, UBS.

Joshua Spector

Yeah, hi. I had a question on your volume guidance for 2025. So a lot of the prepared remarks talk about weakness at the end of the year, more channel inventory you're dealing with in the first quarter, and that's clear in your 1Q guidance. But if our math is correct, it looks like you're expecting volume growth of something like high single digits for 2025 as a year.Previously, you talked about that as 5%, something in that range. So it just seems really odd to us that you're increasing confidence in volumes when the near-term outlook looks a lot worse than you previously anticipated. So can you help us out there, please?

Pierre Brondeau

Yes, absolutely. It's a very appropriate question. We are — one of the very key decision we made is to lower inventory of FMC products in the channel. So all of the core products we have or the product — part of the core portfolio, we're going to make sure that we are selling more on the ground than we are selling into the channel.Initially, when we gave some directional numbers, we talked about volume growth in the 6% range. Today, we are at a higher number. But it is a strategy we have developed during the fourth quarter when we understood better the market we were facing.If you think about — when we talked about 6%, we are thinking more of the general growth of the demand from the market, which would have recovered. Here, we are excluding that part of the growth. And if you think about the range of growth, it is something like $250 million to $350 million. That's the kind of range we talk about today in terms of volume growth. 75% of that is coming from our growth portfolio, and it is coming from mostly from the new molecules, the new AIs, and also from the biological product.The rest is coming — and the vast majority of the remaining growth is coming from the plant health portfolio. So there is very little growth — in the $250 million to $350 million, there is growth, which is coming from the core portfolio. So it's a very different profile. It's a very different approach.There is a downside to it; let's face it. It requires investments in the first quarter to develop a new sales organization to go after the growth in the new routes, which is more direct sales to large growers, but it's a very different growth profile than what we're expecting. And where we intend to grow the $250 million to $350 million do not touch places where we have high inventory level.

Ronaldo Pereira

If I may add to that, Pierre. Josh, we are investing in expanding and exploring new routes to market. The combination of new products and new customers, that is really where the growth comes from. It is not from traditional products and traditional customers as we just stated that our focus there is actually to decrease the existing inventory. So it's new products to new customers driving the volume growth.

Operator

Chris Parkinson, Wolfe Research.

Christopher Parkinson

Hey, guys. I was just hoping you could help me triangulate a few things. It just seems like the 1Q guide is the vast majority of the delta of what The Street was increasingly kind of factoring in for your '25 guidance. and we all understand there's a lot going on with Brazilian credit and increasing competition, not only across the Big Six, but also generics within the Americas, wholesale/retail holding less inventory.But just can you help us just — given even Latin America is a smaller portion of the first calendar quarter, just what's your confidence 2Q onwards that you're doing everything in FMC's power to ensure that you can ultimately hit that annual guide, if not exceed it, once all the dust settles? Thank you.

Pierre Brondeau

I think, Chris, the — I would say the first-quarter number are showing that we are taking very significant market approach to lower the level of FMC products in the channel. So certainly, our numbers for the first quarter are showing that we're going to have a very, very prudent approach to the market with a high focus on preparing the following quarters.The second half of the year will also benefit a lot of the new products the new route to market — for the new product, because lots of the registration except the US are coming from countries in Latin America, where you will have the growing season. And the new routes to market with the new growers we are targeting are also in Latin America.So the two actions, structuring and sales, for growth in the second half, plus the actions we are taking in the first half of the year should make us successful to deliver what we are planning in the second half of the year.Do you want to add something, Andrew?

Andrew Sandifer

Yeah. Chris, I'd just add as well, just as Pierre commented, we do have some major timing shifts in the US business happening this year as well that caused for some shift of sales we would normally expect to make in Q1 to happen later in the year. So I think that's a part of this low Q1 and stronger Q2 through Q4 that you're pointing to in your question. It is that combination of both the back-end weighted new product growth that Pierre mentioned, the actions we're taking earlier in the year, broadly speaking, to reduce channel inventories, and then finally, the bit of the change in sequence during the year of sales in the US market, with later replenishment by growers and retailers pulling from distribution.

Operator

Richard Garchitorena, Wells Fargo.

Richard Garchitorena

Great, thanks. Okay, good afternoon, everybody. I just wanted to touch on the pricing outlook. And it looks like in the fourth quarter, you saw pricing decline across basically most of the segments — most of the regions, with the exception of EMEA. In terms of the outlook, you talked about cost-plus contract adjustments. Was that in a specific region?How is pricing currently in Latin America, which has been the weakest, I guess, that you had been seeing. And then when you look at the 2027 revenue guide, is expectations that these contracts are reset in '25? And then they're going to be flat to potentially higher as you move forward over the next couple of years. Thank you.

Pierre Brondeau

So to answer your last question about the contract, there is for some of the very critical contracts a indexation of the pricing to customers to our manufacturing cost. The biggest jump in terms of lowering manufacturing cost is taking place now from '24 to '25. After '25, we're going to have incremental evolution of our cost, which will go lower and beyond where we will be in '25, but not at all to the same extent. So there will be less of an impact of the price adjustment to the technical sales in '26 and '27 versus '25 as most of the hit will be taken in 2025.From a pricing standpoint, I think the guidance we are giving — and Andrew, correct me if I'm wrong — but I think the guidance we are giving for 2025 is 3% with about two-third of that coming from those manufacturing contracts or the sales contract to our partners.And on Q4 (technical difficulty) commenting about Q4 and the 3% decline, which was slightly better than what we were expecting. And that's related to the comment I made initially. We had good line of sight in the fourth quarter to deliver the EBITDA and the EPS. We decided to walk away from sales when there was too much of a demand for price or term. We did not want to get into a situation where we would be competing at any cost to — to go as high as we could on the selling front and just rather stay there below the number we gave as our expectation from the price decrease, knowing that we could deliver our earnings without doing it.

Operator

Arun Viswanathan, RBC.

Arun Viswanathan

Great. Thanks for the question. Understanding that you guys have done a lot of work to get inside the channel a little bit more. It sounds like you will be continuing to increase your visibility there. But maybe you can just highlight, Pierre, some of the learnings that you have found there.It sounds like that was an area of particular interest, but now you're also shifting your strategy as well and further solidifying the growth versus core strategy. But what else are you doing on the inventory side to get a better handle on the channel? And will all of those issues be mainly addressed through your Q1 actions? Thanks.

Pierre Brondeau

Yeah. Thank you. I would say most of our inventory actions are going to take place in the first half. And I think that it will take more than one quarter. We're going to be very aggressive in the first quarter. We'll carry that on the second quarter, I think.There is two issues I did not personally appreciate in the first couple of months I was here. I focused a lot on the overall inventory. But there is clearly some places for different reasons, where we would have higher than the average inventory level, higher FMC inventory level. So we have now identified, and it's a country per country set of action. And it's going to be India; it's going to be Brazil. It's Eastern Europe; it's Asian.So we have a series of six or seven countries where we went in depth to tackle the inventory issue. And the way we truly realize that was going through — studying the selling process and why things were not happening the way we were expecting.There is also the fact we spent a lot of time talking to our customers that we are dealing with the moving target. Inventory target at the end of the season, we believe, is not the same today as it was in the past. I think people are — well, I mean, there is some regions — I'll give you an example. There is some regions where people were comfortable ending the season in the 30%, 35% range of a full-year or full-season inventory at the end of the season. But those people now are targeting the 20%, 25% range.So it's a moving target. So we have to deal with those two issues. The moving target in terms of what our customers want plus the identified places, maybe six or seven countries, including some large countries like India and Brazil, where there is a specifically high level of FMC inventory.

Operator

Ben Theurer, Barclays.

Benjamin Theurer

Yeah. Good afternoon and thanks for taking my question. Just wanted to kind of get a little bit more of the medium-term picture as you think about the roll-out and the cadence for '25 and into '26, obviously, with the backdrop of what you've just guided for Q1.So if things move the way you suspect right now and as you would have to anticipate maybe a little bit of that step in between versus what is this year's outlook and the '27 after it, how should we think about the cadence into 2026, just given the roll-out of products and your ability to gain back some market share and to gain back some customers that seem to be lost for now?

Pierre Brondeau

Yeah. I think the — it is not — if I look at the three-year plan, it's not a back-end-loaded three-year plan. You will see a significant improvement of the numbers starting in 2026. The new products — you've seen the numbers shown by Ronaldo going to $600 million — it's going to be a pretty evenly growth you're going to see over the three-year period.The new routes to market, we hope to be ready to have that in place in the second quarter to start to be very active in the third quarter and be even more implanted in 2026. So certainly, there is an acceleration of the growth from '26 to '27, but there will be a significant step-up coming from a correction year.By '26, we will benefit from a market growth of the core business and the full growth of our growth business. So it is not a back-end type of three-year plan.

Operator

Steve Byrne, Bank of America.

Stephen Byrne

Yeah. Thank you. For Rynaxypyr volumes in 2025, what are you expecting the percent decline to be? And what was the change in your outlook for the global Rynaxypyr market versus your prior expectations? Was this primarily due to just greater-than-expected capacity expansions in China? Is that what was the primary change? And if so, why do you think you could get back to high-single-digit growth in 2026?

Pierre Brondeau

Yes. I think we want to be careful in not talking about specific percentage for products. In next year, we do expect Rynaxypyr to be down, both branded Rynaxpyr and Rynaxypyr sold to our partners. We do expect Cyazypyr sales — branded Cyazypyr sales to be up.Going forward, I think, first, the different thinking we have about the Rynaxypyr business is two-fold. First, we believe that we can expand with a new manufacturing cost. The market we can address with the Rynaxypyr as a solo molecule formulations like I talked about — we talked about. We talked about the high concentration or the mixtures — with mixture partners.So we do believe that we can expand the number of acres where we can be competitive and we can also improve the efficacy of this product, allowing us to go to market, which will be beneficial from a usage standpoint to growers. So we do believe to play in a much larger market starting this year and mostly in 2026 than we've done before without moving away from staying in the high end with a specific formulation, which are giving benefits to growers.To your question around the change in the landscape, what I believe is, like it is very often the case, when you have a patent protection, which is a composition of matter — very, very solid across the world. When you have a patent protection which is process based, not all jurisdictions or countries do have the same attitude toward those patents. And I believe that with India and China starting to sell products even if we are taking legal actions and even if there is a high priority, we will win those legal actions.There is no injunction. Competitors are not stopped by court, and that gave the example and the courage to those companies to expand that behavior into other countries. And that's why we saw them coming into Argentina, for example, into Turkey. So I think there is an expansion when you are just one year away from the end of your process patent protection, where people are less worried about the legal action we could be taking. And it's happening maybe faster than what we're expecting.

Operator

Frank Mitsch, Fermium Research.

Frank Mitsch

Thank you and good afternoon. I want to come back to the price question. Pierre, you indicated that two-thirds of the price decline you're anticipating to come from the manufacturing contracts with your diamide partners. So if you could talk a little bit about the other third, where you're seeing the price declines in that area.But coming back to the diamide partners, am I to understand that as you improve your manufacturing process that you are giving that back to the diamide partners. So as you spend money to improve your manufacturing for the restructuring costs, et cetera, that that is flowing through in a lower price to the diamide partners.I certainly can understand if raw material costs come down and so forth that, that would flow through to your partners, but I was just struck that it sounded like it was also if you're making improvements and spending money to do so, that you're giving some of that up. So any color there would be very helpful? Thank you.

Pierre Brondeau

Absolutely. So yes, the contract we have with those diamide partners are the fact that — and also, again, it's not all of them. There is some of our diamide partners, where we have a very different cost structure. But important diamide partners to have what we call a cost-plus, which is not the exact terminology. That's a fact we — the way we called it, but the pricing is indexed on manufacturing cost.And it is a commercial decision we have taken. We knew that over time, those partners will have the choice between working with us and working with people who potentially would come with price which would be more competitive. So when you sign mid-term, long-term contract with those partners, they are willing to stay with you. But they also have to be sure that their source of product will remain competitive.So in some cases, there is no cost-plus contracts, but then what you end up doing is having a commercial negotiation every year or every other year when the contract has to be renewed. With some other partners, we do have longer-term contracts. And one of the benefits they get is they give us longer-term contract, and we give those a guarantee that we will optimize the price, even if we are the one spending money to lower the cost. It's just a commercial practice. We had to secure some large contracts with important partners over a longer period of time.Regarding the remaining — the one-third of the price decrease, it is actually, we believe, some of the normal market competitiveness, which will still exist for the time being until the market has completely recovered. And the fact that in Asia, we still are in a very, very competitive situation, where the — especially India, where the channel is very full. So I would say it's not as simple as two-thirds technical — what we call technical product sales to a partner and one-third of Asia, but it's not far from being the truth.

Operator

Mike Harrison, Seaport Research Partners.

Michael Harrison

Hi, good evening. I was hoping, Ronaldo, given your experience in Latin America, maybe you can give us a little bit more detail on the changes. That you're seeing in the Latin America distribution channel. I know that your restructuring plan included some rightsizing of the organization in Brazil, and now it sounds like you're seeing a need to invest in new routes to markets or a different way to access that market.So can you help us understand what has changed in the market and also what has changed about your approach to the market in Latin America and your organization. Thank you.

Ronaldo Pereira

Sure, Michael. A few years ago, the retail distribution system went through a consolidation — a wave of consolidation. And some of the consolidators started acquiring some retailers that were family-owned businesses, very traditional and small — covering the small territories. And these platforms became large and very diverse in terms of geographic expansion and also the making of their, I'll call, network for lack of better name.What we have seen is that the market share that some of those regional businesses have with our products is not the same that we are seeing with the consolidators today. Because the market is evolving, the compliance need is different. The credit requirements are different. And as a result of that, there are more and more growers going directly to companies or we could put in reverse as well more and more companies going direct to growers, and approaching them directly and establishing that direct relationship between manufacturers and large growers.You may ask, well then, why didn't you follow that way before or you adjusted before? And the answer is actually pretty simple. To go — I'm talking about soybean and corn — and to go and approach growers directly, you need a technology that is specifically important to those growers. We now have it. I talked about fluindapyr and I talked about that product being the key tool in controlling Asia soybean rust. There are new or renewed brands and versions of our diamide.We are now approaching those growers with some new technology to show them. So the difference between where we were before, before optimizing and now that we're making investments, is one, when we rightsize the organization, we rightsize it to the total size of the market. Now the type of investment that we're making — the people that are joining the company are people that are more skilled on soybean and corn, segments that we didn't serve before, and especially approaching directly growers not focusing 100% on retailers.In other words, though the skills are not the same and the fact that we let go people before and now we are adding, it's not the same type of people. It's just different skills, different networks, and different connections that are required to implement this new stage of this strategy. But I do want to stress, we can only do that now because we have the right technologies to do so.

Operator

Kevin McCarthy, VRP.

Kevin McCarthy

Yeah. Thank you and good evening. Pierre, if I look at slide number 8, you're guiding to adjusted EBITDA that's either side of flat. And that is the case, notwithstanding what looks to be $175 million to $200 million of favorability on COGS. I think you have additional restructuring benefits flowing through as well.So my question would be, can you speak to some of the headwinds that would cause the flat EBITDA? I do see the foreign exchange that you quantified, but perhaps you could speak to the level of the incremental investments you're making in SG&A to go direct in Latin America and other cost headwinds that would complete the bridge, so to speak.

Pierre Brondeau

Sure. I think I would say there is multiple ways to look at it, but there is three key headwinds. One is price — with what we explained around the price we have to give back to our — to some of our partners on diamide. So price is overall $130 million, I think, in the range of $130 million of headwind.Secondly, we do have FX which is much beyond what we would have thought a few months ago in the range of about $70 million. And we believe we're going to be investing in the first quarter about $25 million to create a new sales organization. So you have here about $200 million to $250 million of headwinds for the three main ones.Andrew, have I missed any or those are the three biggest ones?

Andrew Sandifer

Yeah, the biggest ones. And obviously, we did forgo about $25 million in profit we've made in the GSS business in the prior year that we obviously won't have this year to finish out the (multiple speakers)

Pierre Brondeau

That's the full thing —

Andrew Sandifer

It's a smaller piece.

Pierre Brondeau

So those together are beyond $250 million.

Operator

This concludes the FMC Corporation conference call. Thank you for attending. You may now disconnect.

FMC (NYSE:FMC) just got hammered, plunging over 33.6% at 12.02pm today, after its Q4 earnings report left investors unimpressed. The company beat profit expectations with adjusted earnings of $1.79 per share, but revenue missed the mark at $1.2 billion, weighed down by foreign exchange headwinds and cautious inventory management. Worse, GAAP earnings flipped negative with a $0.13 per share loss, capping off a brutal year where total revenue dropped 5% and GAAP earnings nosedived 74%. CEO Pierre Brondeau tried to reassure investors by pointing to solid organic sales growth, but with customers cutting back on inventory, the outlook remains shaky.

Warning! GuruFocus has detected 11 Warning Signs with FMC.

Wall Street isn't buying the optimism. BofA Securities slashed its rating from Neutral to Underperform, trimming its price target to $48 from $61, citing a weak Q1 outlook and rising competition in FMC's high-margin diamide business. RBC Capital and Morgan Stanley followed with their own target cuts, pushing expectations as low as $46. Analysts are skeptical of FMC's ability to hit its 2025 guidance, which forecasts flat revenue growth and adjusted EPS between $3.26 and $3.70. With concerns mounting over financial leverage and the sustainability of its dividend, investors are left wondering if the worst is yet to come.

At multi-year lows, FMC stock looks like a falling knife. The company is battling intensifying generic competition, unpredictable demand, and investor skepticism that's only growing louder. Management is betting on a volume recovery and strong cash flow to stabilize things, but for now, the market isn't convinced. Until FMC proves it can turn the ship around, investors may want to stay on the sidelines.

This article first appeared on GuruFocus.

We recently compiled a list of the 12 Biggest Lithium Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where FMC Corporation (NYSE:FMC) stands against the other lithium stocks.

Our Methodology

A laboratory technician carefully mixing chemicals in a laboratory.

FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 41

FMC Corporation (NYSE:FMC), founded in 1883 as an insecticide manufacturer, is an American chemical manufacturing company that has since expanded into other industries. FMC Corporation (NYSE:FMC) has spent decades developing and producing lithium amides, lithium alkoxides, lithium metal hydrides, alkyllithiums, and aryllithiums. These compounds are useful as reducing agents in the production of agricultural and pharmaceutical intermediates.

On January 21, Barclays analyst Benjamin Theurer upgraded FMC Corporation (NYSE:FMC) from Equalweight to Overweight, while maintaining a $65 price target. According to the analyst, the market expects an EV/EBITDA multiple of 9.3 times in 2025, based on Bloomberg consensus estimates, while the historical average for FMC is 12-13 times. Theurer provides a more optimistic assessment of the stock's future performance, citing the historical multiple to suggest that the stock's "normalized" pricing may exceed the current price target.

In the third quarter of 2024, FMC Corporation (NYSE:FMC) reported 12% organic sales growth and 9% sales growth. The company expects a 32% increase in EBITDA and a 19% increase in sales in the fourth quarter of the same year. By 2025, the company hopes to increase revenue by about 6%, at a potential cost of $200 million. As part of its ongoing innovation efforts, FMC plans to launch four new active ingredients and save $125 million to $150 million through restructuring by 2024.

Overall FMC ranks 2nd on our list of the biggest lithium stocks to buy according to hedge funds. While we acknowledge the potential of FMC as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

FMC Corporation FMC reported a loss of 13 cents for fourth-quarter 2024. This is in contrast with earnings of $8.77 reported in the year-ago quarter.Barring one-time items, adjusted earnings per share were $1.79, beating the Zacks Consensus Estimate of $1.61.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues were $1,224.3 million in the quarter, up around 6.8% from the year-ago quarter’s level. The top line fell short of the Zacks Consensus Estimate of $1,324.1 million.FMC's fourth-quarter revenues were driven by a 15% increase in volume, with growth reported in several countries, especially the United States.

FMC Corporation Price, Consensus and EPS Surprise

FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote

FMC’s Regional Sales Performance

In North America, sales increased 23% year over year to $340 million in the quarter, driven by higher volume. The figure missed the Zacks Consensus Estimate of $347.5 million.Latin America sales saw a 10% year-over-year decline to $390 million in the reported quarter, as higher volumes were partly offset by a low-single-digit price decline. The figure missed the Zacks Consensus Estimate of $516.9 million.In Asia, revenues rose 10% year over year, totaling $307 million due to higher volumes. The figure beat the Zacks Consensus Estimate of $273.7 million.EMEA experienced an 18% year-over-year sales upside, reaching $188 million in the reported quarter. Higher volumes in EMEA resulted in sales growth, excluding currency impacts. The Plant Health business improved over the previous year. The figure beat the Zacks Consensus Estimate of $183 million.

FMC’s FY24 Results

For the full year, FMC reported revenues amounting to $4,246.1 million, marking a 5.4% decrease from the previous year. On a reported basis, the company posted full-year net income of $341.1 million, reflecting a 74.1% decrease. Consolidated earnings per share were $2.72, down 74.2% year over year.

FMC’s Financials

The company had cash and cash equivalents of $357.3 million at the end of the quarter, up roughly 18.1% year over year. Long-term debt was $3,027.9 million, up around 0.1% year over year.

FMC’s Guidance

Revenues for the first quarter are projected to be in the $750 million to $800 million range, a 16% decrease at the midpoint from the same period in 2024. Volume is likely to fall as customers in various countries continue to cut inventories, and retailers and growers make cautious purchases in an environment of low commodity prices. Adjusted EBITDA is estimated to be in the $105 million to $125 million range, a 28% decrease at the midpoint compared to the prior-year quarter, as lower expenses, primarily in COGS, somewhat offset lower price and FX headwinds. Adjusted EPS is estimated to be in the range of 5 cents to 15 cents, representing a 72% fall at the midpoint against the first quarter of 2024 due to the reduction in adjusted EBITDA.Revenues for full-year 2025 are expected to be in the $4.15 billion to $4.35 billion range, roughly steady at the midpoint and up 3% after accounting for about $110 million in lost revenues from the GSS business divestiture. Full-year adjusted EBITDA is estimated to be between $870 million and $950 million, up 1% from the previous year at the midpoint and 4% after accounting for roughly $25 million in lost EBITDA from the GSS sale. The adjusted EPS for 2025 is estimated to be $3.26 to $3.70 per share, which is consistent with the previous year at the midpoint. Full-year free cash flow is projected to be $200 million to $400 million, a $314 million decrease from 2024 at the midpoint, as the free cash flow conversion normalizes following the outsized recovery in 2024.

FMC’s Stock Price Performance

The stock has gained 1.1% in the past year against a 3% rise of the industry.

Zacks Investment Research

Image Source: Zacks Investment Research

FMC’s Zacks Rank & Key Picks

FMC currently carries a Zacks Rank #4 (Sell).Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd. ICL, Hecla Mining Company HL and Ingevity Corporation NGVT.ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hecla Mining is slated to report fourth-quarter results on Feb. 13. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%.

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Revenue: $1.22 billion for Q4 2024, a 7% increase versus 2023.
EBITDA: $339 million for Q4 2024, 33% higher than last year.
EBITDA Margin: 27.7% for Q4 2024, an all-time Q4 high.
Full Year 2024 Revenue: Declined 5% compared to the previous year.
Full Year 2024 EBITDA: Declined 8%, with a margin of 21%.
2025 Revenue Guidance: $4.15 billion to $4.35 billion, flat at the midpoint compared to 2024.
2025 EBITDA Guidance: $870 million to $950 million, up 1% at the midpoint.
Adjusted EPS for 2025: Expected to be between $3.26 and $3.70.
Q1 2025 Revenue Guidance: $750 million to $800 million, a decline of 16% against prior year.
Q1 2025 EBITDA Guidance: $105 million to $125 million, a decline of 28% at the midpoint.
Free Cash Flow for 2024: $614 million, an increase of more than $1.1 billion versus the prior year.
2025 Free Cash Flow Guidance: $200 million to $400 million, a decrease of $314 million at the midpoint.
Interest Expense for 2025: Expected to be in the range of $210 million to $230 million.
Effective Tax Rate for 2025: Anticipated to be in the range of 13% to 15%.
Gross Debt as of December 31, 2024: Approximately $3.4 billion, down nearly $600 million versus the prior year.

Warning! GuruFocus has detected 11 Warning Signs with FMC.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

FMC Corp (NYSE:FMC) delivered two strong quarters with earnings above guidance, indicating effective management and strategic execution.
The company is making significant progress in manufacturing cost reductions, which are critical for future growth plans.
FMC Corp (NYSE:FMC) has a well-balanced portfolio with a core portfolio expected to grow at or slightly above market rates and a growth portfolio projected to grow significantly above market rates.
The introduction of new active ingredients, such as Isoflex and Fluinapi, is expected to drive substantial revenue growth, with sales projected to reach $600 million by 2027.
The plant health platform is expected to grow at an annual rate in the mid-20% range through 2027, driven by biologicals and pheromones.

Negative Points

FMC Corp (NYSE:FMC) faces significant challenges with elevated channel inventories, particularly in regions like Brazil, India, and Eastern Europe.
The company anticipates a pronounced negative impact on 2025 financial performance due to aggressive actions needed to reposition the business.
Pricing pressures are expected due to cost-plus contracts with partners and increased competition from generic products, particularly in Asia.
The restructuring program, while delivering savings, requires substantial investment in expanding sales organizations and exploring new routes to market.
FMC Corp (NYSE:FMC) is experiencing a shifting market structure in Latin America, requiring increased investments to adapt to new distribution channels and direct sales approaches.

Q & A Highlights

Q: Pierre, could you help us understand how you expect RAure from 2026 and beyond to evolve? We’re talking about high single-digit sales growth, but could you maybe help us think about the shape of volume and price over the coming years? And within that, could you let us know your view of price gaps and how you expect to manage them as the generics proliferate? A: From a pricing standpoint, we believe we are in a place right now where we can compete with generics at the price we understand. There are two aspects: the market where we will sell a solar molecule and the high end with new measures of products increasing efficacy. We aim to expand into lower-end markets with lower prices and develop high-end formulations for better efficacy and price premiums.

Q: I had a question on your volume guidance for 2025. It seems odd that you’re increasing confidence in volumes when the near-term outlook looks worse than previously anticipated. Can you help us out there, please? A: We are committed to lowering FMC inventory in the channel. The volume growth forecast is driven by the growth portfolio, particularly new molecules and biological products, not the core portfolio. This strategy requires investment in new sales routes, focusing on direct sales to large growers.

Q: Can you help us understand your confidence in achieving the annual guidance despite challenges in Latin America and other regions? A: Our Q1 numbers reflect a prudent market approach to lower FMC products in the channel. The second half will benefit from new products and routes to market, especially in Latin America. We are structuring sales for growth in the second half, supported by new registrations and targeted growers.

Q: I wanted to touch on the pricing outlook. How is pricing currently in Latin America, and what are your expectations for 2027 revenue guidance? A: For some critical contracts, pricing is indexed to manufacturing costs. The biggest cost reduction impact is from 2024 to 2025, with less impact in 2026 and 2027. We anticipate a 3% price decline in 2025, mainly due to these contracts, with some market competitiveness affecting pricing in Asia.

Q: Can you highlight some of the learnings from your inventory strategy and how you plan to address these issues in Q1? A: Most inventory actions will occur in the first half, focusing on countries with higher FMC inventory levels like India and Brazil. We realized the need to adjust to a moving target as customers now aim for lower inventory levels than in the past.

Q: Can you provide more detail on the changes in the Latin America distribution channel and your approach to the market? A: The retail distribution system has consolidated, affecting market share. More growers are now approached directly by companies. We are investing in new routes to market with skilled personnel in soybean and corn segments, leveraging new technologies like fluenta beer for direct grower engagement.

Q: You’re guiding to adjusted EBITDA that’s flat despite significant COGS favorability. Can you speak to the headwinds causing this flat guidance? A: Key headwinds include a $130 million price impact from dynamite partner contracts, a $70 million FX impact, and a $25 million investment in a new sales organization. These factors contribute to over $250 million in headwinds.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

As the Canadian economy navigates a period of uncertainty with the Bank of Canada’s recent rate cut and anticipated economic rebound, investors are increasingly focused on uncovering opportunities within small-cap stocks. In this environment, finding hidden gems requires identifying companies that can thrive despite market volatility, often characterized by strong fundamentals and resilience to economic shifts.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
TWC Enterprises	6.24%	12.63%	23.89%	★★★★★★
Reconnaissance Energy Africa	NA	9.16%	15.11%	★★★★★★
Maxim Power	25.01%	12.79%	17.14%	★★★★★☆
Mako Mining	10.21%	38.44%	58.78%	★★★★★☆
Grown Rogue International	24.92%	19.37%	188.55%	★★★★★☆
Corby Spirit and Wine	65.79%	7.46%	-5.76%	★★★★☆☆
Petrus Resources	19.44%	17.20%	46.03%	★★★★☆☆
Genesis Land Development	47.40%	28.61%	52.30%	★★★★☆☆
Queen’s Road Capital Investment	8.87%	13.76%	16.18%	★★★★☆☆
Dundee	3.76%	-37.57%	44.64%	★★★★☆☆

Click here to see the full list of 45 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Sol Strategies

Simply Wall St Value Rating: ★★★★★★

Overview: Sol Strategies Inc. is a company that invests in cryptocurrencies and blockchain technologies, with a market cap of CA$635.02 million.

Operations: Sol Strategies generates revenue through investments in cryptocurrencies and blockchain technologies. The company has a market capitalization of CA$635.02 million, reflecting its valuation in the financial markets.

Sol Strategies, a Canadian company with a knack for innovation in cryptocurrency infrastructure, recently closed significant private placements totaling CAD 30 million. This influx of funds likely bolsters its financial position as it navigates high volatility in share prices over the past three months. The appointment of Max Kaplan as Head of Staking signals strategic growth, leveraging his expertise to enhance their validator network. Despite no substantial insider selling recently, Sol Strategies faces challenges with negative levered free cash flow at CAD -0.86 million last quarter and remains unprofitable, highlighting areas for potential improvement amidst industry competition.

CNSX:HODL Earnings and Revenue Growth as at Feb 2025Headwater Exploration

Simply Wall St Value Rating: ★★★★★★

Overview: Headwater Exploration Inc. is a Canadian company focused on the exploration, development, and production of petroleum and natural gas, with a market capitalization of CA$1.59 billion.

Operations: Headwater Exploration generates revenue primarily from the exploration, development, and production of petroleum and natural gas, totaling CA$490.27 million.

Headwater Exploration, a nimble player in the Canadian oil and gas sector, has been making waves with its strategic land acquisitions and partnerships. The recent collaboration with Bigstone Cree Nation could unlock new drilling opportunities across 34.5 sections of promising land. With a robust production volume of 21,500 BOE/d reported for Q4 2024, Headwater’s operational momentum is evident. Despite earnings growth of 22.7% last year and trading at over 40% below fair value estimates, future earnings are expected to face challenges with a forecasted decline of around 14% annually over the next three years.

TSX:HWX Earnings and Revenue Growth as at Feb 2025Alphamin Resources

Simply Wall St Value Rating: ★★★★★★

Overview: Alphamin Resources Corp., along with its subsidiaries, focuses on the production and sale of tin concentrates, with a market capitalization of CA$1.16 billion.

Operations: Alphamin Resources generates revenue from the production and sale of tin concentrates, amounting to $436.73 million. The company has a market capitalization of CA$1.16 billion.

Alphamin Resources, a nimble player in the mining sector, has shown a robust performance with earnings growing at 39.2% annually over the past five years. The company boasts a satisfactory net debt to equity ratio of 0.3%, and its interest payments are well-covered by EBIT at 17.9 times coverage. Recent production results highlight an increase in contained tin produced to 17,324 tonnes for 2024 from the previous year’s 12,568 tonnes. With a price-to-earnings ratio of 11x below the Canadian market average of 14.6x, Alphamin seems poised for continued value creation as it expands operations at Mpama South.

TSXV:AFM Debt to Equity as at Feb 2025Make It Happen

Get an in-depth perspective on all 45 TSX Undiscovered Gems With Strong Fundamentals by using our screener here.
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Contemplating Other Strategies?

Explore high-performing small cap companies that haven’t yet garnered significant analyst attention.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include CNSX:HODL TSX:HWX and TSXV:AFM.

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

Teck Resources Ltd

VANCOUVER, British Columbia, Feb. 04, 2025 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) will release its fourth quarter 2024 earnings results before market open on Thursday, February 20, 2025.

A webcast to review the results will be held as follows:

Date:	Thursday, February 20, 2025
Time:	8:00 a.m. PT / 11:00 a.m. ET
Listen-Only Webcast:	here
Dial In for Investor & Analyst Q&A:	1.647.484.8814 or 1.844.763.8274
	Quote “Teck Resources”, to join the call
Alternate, pre-register to the call for Q&A:	registration link

An archive of the webcast will be available at teck.com within 24 hours.

About TeckTeck is a leading Canadian resource company focused on responsibly providing metals essential to economic development and the energy transition. Teck has a portfolio of world-class copper and zinc operations across North and South America and an industry-leading copper growth pipeline. We are focused on creating value by advancing responsible growth and ensuring resilience built on a foundation of stakeholder trust. 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:Ellen LaiCoordinator, Investor Relations604.699.4257ellen.lai@teck.com

Media Contact:Dale SteevesDirector, External Communications236.987.7405 dale.steeves@teck.com

We recently compiled a list of the 10 Firms Shine Amid Market Slump. In this article, we are going to take a look at where Harmony Gold Mining Company Ltd. (NYSE:HMY) stands against the other stocks.

Ten companies kicked off this week's trading on a positive note, defying a broader market pessimism amid growing trade tensions among the US, Mexico, China, and Canada over the retaliation of tariffs on each other's goods.

On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump's announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.

Ten companies under mixed sectors defied a broader market downturn, leading the charge among market advancers. In this article, we will examine which companies performed well and the factors driving their success.

The list of top advancers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.

Is Harmony Gold (HMY) Close Shortened Trading Week Higher?

An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley.

Harmony Gold Mining Company Ltd. (NYSE:HMY)

Shares of Harmony Gold Mining Company Ltd. rose by 4.7 percent on Monday to finish at $11.8 apiece as investor sentiment was fueled by news that it was on track to surpass its annual gold production target of 1.5 million ounces, despite booking lower output for the first half of the financial year.

Harmony, the largest gold producer in South Africa, said in a recent trading update that gold production for the six months ending December 2024 was expected to settle between 790,000 ounces to 805,000 ounces. The figures, however, marked a decline from the 832,349 ounces produced in the same period a year earlier mainly due to planned lower output from its South African underground mines and Hidden Valley in Papua New Guinea.

However, South African underground recovered grades are expected to be higher than the projected 5.80 grams per ton, on the back of a strong performance from Mponeng, the world’s deepest mine.

Overall HMY ranks 9th on our list of the stocks that shone amid market slump. While we acknowledge the potential of HMY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HMY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

The Canadian market has been navigating a complex landscape, with the Bank of Canada cutting rates amid tariff uncertainties and a recent contraction in GDP. In such conditions, investors often look for opportunities that combine potential growth with financial resilience. Penny stocks, though an older term, still represent an intriguing segment for those interested in smaller or newer companies that might offer unexpected value when backed by strong financials.

Top 10 Penny Stocks In Canada

Name	Share Price	Market Cap	Financial Health Rating
Silvercorp Metals (TSX:SVM)	CA$4.59	CA$989.91M	★★★★★★
Mandalay Resources (TSX:MND)	CA$4.70	CA$447.95M	★★★★★★
Foraco International (TSX:FAR)	CA$2.28	CA$230.34M	★★★★★☆
Findev (TSXV:FDI)	CA$0.46	CA$14.32M	★★★★★★
Pulse Seismic (TSX:PSD)	CA$2.38	CA$126.59M	★★★★★★
PetroTal (TSX:TAL)	CA$0.68	CA$619.87M	★★★★★★
NamSys (TSXV:CTZ)	CA$1.00	CA$28.21M	★★★★★★
East West Petroleum (TSXV:EW)	CA$0.04	CA$3.62M	★★★★★★
Tornado Infrastructure Equipment (TSXV:TGH)	CA$0.98	CA$138.93M	★★★★★☆
DIRTT Environmental Solutions (TSX:DRT)	CA$1.09	CA$222.42M	★★★★☆☆

Click here to see the full list of 928 stocks from our TSX Penny Stocks screener.

Let’s dive into some prime choices out of the screener.

District Metals

Simply Wall St Financial Health Rating: ★★★★★★

Overview: District Metals Corp., a junior mineral exploration company, focuses on acquiring, exploring, and evaluating natural resource properties with a market cap of CA$51.58 million.

Operations: District Metals Corp. has not reported any revenue segments.

Market Cap: CA$51.58M

District Metals Corp., a junior mineral exploration company with a market cap of CA$51.58 million, remains pre-revenue, reporting less than US$1 million in revenue. Despite its unprofitability and increased losses over the past five years, the company benefits from being debt-free and having sufficient cash runway for over three years if current cash flow trends persist. The company’s short-term assets of CA$5.8 million comfortably cover its short-term liabilities of CA$1 million, indicating sound liquidity management. Additionally, shareholders have not faced significant dilution recently, while the experienced board and management team provide strategic oversight amidst ongoing financial challenges.

TSXV:DMX Financial Position Analysis as at Feb 2025Rock Tech Lithium

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Rock Tech Lithium Inc. is involved in the exploration and development of lithium properties, with a market cap of CA$117.63 million.

Operations: Currently, there are no reported revenue segments for Rock Tech Lithium Inc.

Market Cap: CA$117.63M

Rock Tech Lithium Inc., with a market cap of CA$117.63 million, is pre-revenue, reporting less than US$1 million in revenue. Despite being debt-free and having short-term assets of CA$5.3 million exceeding liabilities, the company faces financial challenges with increased losses over five years and no profitability forecast in the near term. Its management team is relatively new, averaging 1.1 years in tenure, while the board offers more experience at 7.1 years average tenure. Recent capital raising efforts aim to address a limited cash runway amidst high share price volatility compared to most Canadian stocks.

TSXV:RCK Debt to Equity History and Analysis as at Feb 2025Taranis Resources

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Taranis Resources Inc. is an exploration stage company focused on acquiring, exploring, and developing precious and base metal deposits in Canada, with a market cap of CA$26.02 million.

Operations: Taranis Resources Inc. has not reported any revenue segments, as it is currently in the exploration stage focusing on precious and base metal deposits in Canada.

Market Cap: CA$26.02M

Taranis Resources Inc., with a market cap of CA$26.02 million, is pre-revenue, focusing on precious and base metal exploration in Canada. The company recently completed a land acquisition adjacent to its Thor project, enhancing its position in the Silver Cup Mining District. Despite having more cash than total debt and reducing its debt-to-equity ratio from 6.5% to 1.3% over five years, Taranis faces financial strain with short-term assets not covering liabilities and limited cash runway. The board’s average tenure of 22.2 years provides stability as the company navigates ongoing exploration challenges without significant revenue streams yet established.

TSXV:TRO Financial Position Analysis as at Feb 2025Seize The Opportunity

Navigate through the entire inventory of 928 TSX Penny Stocks here.
Have you diversified into these companies? Leverage the power of Simply Wall St’s portfolio to keep a close eye on market movements affecting your investments.
Join a community of smart investors by using Simply Wall St. It’s free and delivers expert-level analysis on worldwide markets.

Curious About Other Options?

Explore high-performing small cap companies that haven’t yet garnered significant analyst attention.
Jump on the AI train with fast growing tech companies forging a new era of innovation.
Find companies with promising cash flow potential yet trading below their fair value.

Companies discussed in this article include TSXV:DMX TSXV:RCK and TSXV:TRO.

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

(Reuters) -Shares of Australia's Predictive Discovery were set for their best session in nearly six months on Tuesday after the gold explorer said that China's Zijin Mining will invest A$24.1 million ($15.00 million), while Lundin family will invest A$45.1 million in it, to acquire a 3.5% and a 6.5% stake, respectively.

Shares of the company gained as much as 13.2% by 0020 GMT and were set for their biggest single-day rise since mid-August, 2024. Meanwhile, the broader benchmark S&P/ASX 200 index was up 0.6%.

Predictive said it received firmed commitments from both parties to raise a total of A$69.2 million at an issue price of A$0.265 per share, the same as the company's last close on Jan. 31.

Proceeds from the placement will be used to accelerate the miner's key asset Bankan Gold Project in Guinea, it said.

Lundin family is a majority shareholder in Lundin Group, which manages public companies, such as Canada's Lundin Mining Corp, that are focused on the minerals, metals, renewables and energy sectors.

($1 = 1.6069 Australian dollars)

(Reporting by Sherin Sunny in Bengaluru; Editing by Alan Barona)

Key Insights

Given the large stake in the stock by institutions, Freeport-McMoRan's stock price might be vulnerable to their trading decisions
The top 18 shareholders own 51% of the company
Recent sales by insiders

To get a sense of who is truly in control of Freeport-McMoRan Inc. (NYSE:FCX), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 85% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's take a closer look to see what the different types of shareholders can tell us about Freeport-McMoRan.

View our latest analysis for Freeport-McMoRan

NYSE:FCX Ownership Breakdown February 3rd 2025What Does The Institutional Ownership Tell Us About Freeport-McMoRan?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Freeport-McMoRan already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Freeport-McMoRan's historic earnings and revenue below, but keep in mind there's always more to the story.

NYSE:FCX Earnings and Revenue Growth February 3rd 2025

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Freeport-McMoRan. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 8.5% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.3% and 7.6% of the stock.

A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Freeport-McMoRan

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of Freeport-McMoRan Inc.. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$247m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Freeport-McMoRan. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Freeport-McMoRan better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Freeport-McMoRan , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Palantir (PLTR)

Data analytics software firm Palantir (PLTR) is due to release its fourth quarter earnings after the close of US markets on Monday.

Palantir (PLTR) rallied on the back of its third quarter earnings, which were released a day before the US election in November. The stock continued to surged following the election, becoming one of the stocks considered to be part of the "Trump trade", as investors bet on increased defence spending under Trump, which is a key part of Palantir's (PLTR) business.

The company has guided to revenue of between $767m (£623m) and $771m for the fourth quarter, as well as adjusted income from operations of between $298m and $302m.

In the third quarter results, Palantir (PLTR) raised its full-year revenue guidance to between $2.805bn and $2.809bn. The company also upped its adjusted income from operations estimate to between $1.054bn and $1.058bn.

Matt Britzman, senior equity analyst at Hargreaves Lansdown (HL.L), said that the "spotlight will be on Palantir's (PLTR) AI platform, with investors eager to see how it’s driving enterprise adoption and converting pilot programs into full-scale deals".

Alibaba (9988.HK, BABA)

Major Chinese stocks were in focus on Monday after US president Donald Trump followed through with his promise to impose a 10% tariff on China, as well as 25% levies on Mexico and Canada, with these duties coming into effect on Tuesday.

Tech company Alibaba (9988.HK, BABA) was one stock that was trending, despite Chinese markets being closed for the lunar new year holiday, with its US shares down 2% in pre-market trading on Monday.

Susannah Streeter, head of money and markets at Hargreaves Lansdown (HL.L), said: "There is a glimmer of hope that a long-running dispute could be averted with a flurry of calls expected between Trump and the leaders of Canada and Mexico, with China also counting on talks.

"But what’s clear is that Trump's way of doing business is to sow seeds of chaos and unpredictability to gain domestic political wins."

Alibaba (9988.HK, BABA) has also been in focus over the past week, after it released a new version of its AI-model Qwen 2.5, claiming that it surpassed the DeepSeek-V3 model.

DeepSeek's AI advancements rattled tech stocks and markets more broadly last week, raising concerns about the level of spending in the space by US tech giants.

TSMC (2330.TW, TSM)

Taiwan's Taiex (^TWII) index fell 3.5% on Monday, on the back of the tariffs announcements, led by a nearly fall in chipmaker TSMC (2330.TW, TSM).

The company is considered to be a bellweather for the semiconductor sector, as it is the world's largest contract chipmaker, manufacturing for the likes of Nvidia (NVDA).

Chip stocks, which are considered to be key beneficiaries of the AI-boom, sold off sharply last week following DeepSeek's updates.

Stocks: Create your watchlist and portfolio

"The latest moves won’t do much to calm the high tensions which have hit the semi-conductor sector," said Streeter. "Companies like Nvidia (NVDA) rely on the production of chips from outsourced factories overseas, like China and Mexico – but many other parts needed to construct AI data centres could also be vulnerable to tariffs, given they are imported.

"China is a huge source of electrical imports into the United States – with everything from video consoles to phones and phones potentially affected by tariffs."

Toyota Motor Corporation (7203.T)

Global auto stocks tumbled on Monday, with Japan's Toyota (7203.T) falling 5%, while Nissan (7201.T) was down nearly 6% and Honda (7267.T) plunged 7%.

In Europe, Germany's Volkswagen (VOW3.DE) fell more than 6% into the red and Milan-listed Stellantis (STLAM.MI) was down nearly 7%.

The car sector is among those that rely on exports to other markets.

Neil Wilson, analyst at TipRanks, said: "The question is whether this is the beginning of a damaging trade war or something less sinister.

"It seems from the selling pressure that the market underestimated Trump – not for the first time.

"But whether this is resolved in short order or drags out and spirals is unknown. If the tariffs stay in place it would mean a significant redrawing of trade terms and currencies will need to adjust to reflect that."

Antofagasta (ANTO.L)

London-listed Chilean mining company Antofagasta (ANTO.L) was one of the biggest fallers on the FTSE 100 (^FTSE) on Monday morning, declining nearly 4%.

Fellow FTSE-listed miners Glencore (GLEN.L), Anglo American (AAL.L) and Rio Tinto (RIO.L) were also down on Monday, trading 2.5%, 2.2% and 1.6% in the red respectively.

Russ Mould, investment director at AJ Bell (AJB.L), said: "There was firmly a risk-off mood with investors. Tech stocks were on the scrapheap amid the prospects of rates staying higher for longer. Implied interest rate strength was also bad for real estate stocks, throwing cold water over the idea that we’re on a trajectory for cheap borrowing.

"Miners retreated as investors feared a pullback in economic activity and how that would hurt commodities demand."

Other companies in the news on Monday 3 February:

L'Oréal (OR.PA)

Mizuho Financial (8411.T)

Hoya (7741.T)

Murata (6981.T)

NXP Semiconductors (NXPI)

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Alphamin Resources Corp. (CVE:AFM) shareholders might be concerned after seeing the share price drop 27% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. It's fair to say most would be happy with 279% the gain in that time. So while it's never fun to see a share price fall, it's important to look at a longer time horizon. Only time will tell if there is still too much optimism currently reflected in the share price.

In light of the stock dropping 15% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.

Check out our latest analysis for Alphamin Resources

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last half decade, Alphamin Resources became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. We can see that the Alphamin Resources share price is down 19% in the last three years. Meanwhile, EPS is up 39% per year. It would appear there's a real mismatch between the increasing EPS and the share price, which has declined -7% a year for three years.

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

TSXV:AFM Earnings Per Share Growth February 2nd 2025

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Alphamin Resources the TSR over the last 5 years was 366%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Alphamin Resources shareholders gained a total return of 17% during the year. But that return falls short of the market. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 36% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example – Alphamin Resources has 1 warning sign we think you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

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

Jonathan Price learnt the biggest lesson of his career in his first job, working at a nickel refinery near his hometown of Swansea.A fresh

We recently compiled a list of the 10 Best ASX Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against other best ASX stocks to buy according to hedge funds.

According to a report by the Australian Bureau of Statistics (ABS) published on December 4, 2024, the Australian economy grew by 0.3% in the September quarter of 2024, which marked the twelfth consecutive quarter of growth. This growth, however, was the lowest rate since the December quarter of 2020 after the COVID-19 pandemic. The report also noted that in nominal terms, GDP rose by 0.4%.

In terms of trade, a key indicator of the economy’s international competitiveness fell by 2.5% in the quarter. This decline was primarily due to a 2.6% drop in export prices and was the third consecutive quarterly fall. The weakening in global bulk commodity demand, particularly from China, significantly affected the prices of metallurgical coal and iron ore. Import prices also fell slightly by 0.1%, aligning with lower global oil prices.

However, public investment surged by 6.3% after three-quarters of decline, with government investment rising, driven by increased imports of defense equipment and investments in hospital and road projects. State and local public corporations also contributed to the rise, with increased activity on major road and renewable energy projects.

According to Morgan Stanley’s 2025 Outlook and Implications for Australian Investors, the outlook for Australian equities is optimistic, though it is expected to lag behind major developed markets, particularly the United States. Morgan Stanley has raised its year-end 2025 price target for the ASX 200 to 8500, reflecting a base case multiple of 17.0x and a forecasted 10% earnings per share growth over the next 12 months. Within the Australian market, Morgan Stanley favors sectors that are poised for strong performance, such as healthcare, technology, and consumer discretionary. These sectors are expected to benefit from secular growth trends and favorable macroeconomic conditions.

In the energy sector, Morgan Stanley anticipates lower crude oil prices in 2025 due to rising supply from both OPEC and non-OPEC producers, outpacing slowing demand growth. This could impact energy-related stocks and investments. Regarding metals, copper remains the top pick, driven by declining inventories and demand recovery at lower price levels. For gold, the outlook is more cautious, with limited upside expected despite potential tailwinds from rate cuts. According to the report, physical demand for gold is beginning to soften, which may dampen its appeal as a safe-haven asset.

The Australian economy continues its growth streak and sectors such as healthcare, technology, and consumer discretionary are positioned for strong performance.

Is BHP Group Limited (BHP) Among the Best ASX Stock to Buy According to Hedge Funds?

An aerial view of a mining operation in action, with large trucks and yellow diggers.

Our Methodology

To compile our list of the 10 best ASX stocks to buy according to hedge funds, we used Finviz and Yahoo stock screeners to identify companies that are dual-listed in the United States and Australia. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Holdings: 22

BHP Group Limited (NYSE:BHP) is a leading global resources company headquartered in Australia. The company is engaged in the exploration, production, and processing of minerals and energy resources. BHP Group Limited’s (NYSE:BHP) diversified portfolio includes iron ore, copper, coal, nickel, and potash. The company serves industries such as steelmaking, electronics, and agriculture.

BHP Group Limited (NYSE:BHP) is actively pursuing growth opportunities in the copper market, which is expected to see significant demand growth in the coming decades. In South Australia, the company is expanding its Olympic Dam operation, with plans to increase production to over 500,000 tons per year by the early 2030s. BHP Group Limited (NYSE:BHP) is also advancing several copper projects in Chile, including at the Escondida mine, where it plans to invest in new leaching technology to boost production and extend the mine’s lifespan. Additionally, BHP Group Limited (NYSE:BHP) has recently formed a joint venture with Lundin Mining to develop the Filo del Sol and Josemaria copper projects in Argentina and Chile, which have the potential to become major copper producers.

Another key area of growth for BHP Group Limited (NYSE:BHP) is its potash business, where the company is investing in the Jansen project in Canada. The Jansen project is a world-class potash asset and is expected to become one of the largest potash producers globally. BHP Group Limited (NYSE:BHP) is currently constructing the first phase of the project, which is expected to produce around 4.3 million tons of potash per year. The company also has plans for future expansions are planned, with the potential to increase production to over 16 million tons annually.

Overall BHP ranks 2nd on our list of the best ASX stocks to buy according to hedge funds. While we acknowledge the potential of BHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BHP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

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

Over the past month, shares of this miner have returned +0.5%, compared to the Zacks S&P 500 composite's +2.9% change. During this period, the Zacks Mining – Non Ferrous industry, which Southern Copper falls in, has lost 0.5%. The key question now is: What could be the stock's future direction?

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

Revisions to Earnings Estimates

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

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Southern Copper is expected to post earnings of $1.02 per share, indicating a change of +79% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $4.38 for the current fiscal year indicates a year-over-year change of +40.8%. This estimate has changed +0.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.63 indicates a change of +5.6% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed +0.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Copper is rated Zacks Rank #3 (Hold).

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

12 Month EPSRevenue Growth Forecast

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

For Southern Copper, the consensus sales estimate for the current quarter of $2.78 billion indicates a year-over-year change of +21.1%. For the current and next fiscal years, $11.57 billion and $11.61 billion estimates indicate +16.9% and +0.4% changes, respectively.

Last Reported Results and Surprise History

Southern Copper reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of +17%. EPS of $1.15 for the same period compares with $0.79 a year ago.

Compared to the Zacks Consensus Estimate of $2.94 billion, the reported revenues represent a surprise of -0.26%. The EPS surprise was +2.68%.

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

Valuation

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

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

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

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

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

We recently compiled a list of the 10 Best Coal Stocks to Invest in Right Now. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against the other coal stocks.

Research by The Business Research Company estimates the coal market to grow by 2.6% in 2025, reaching a market value of $669.84 billion. The continued dependency on coal for developing countries should sustain a growth rate of 2% until 2029. The APAC region is the region with the largest share of the market with China being the largest player. Slow economic growth in the region is the reason for the lackluster performance of the commodity in 2024.

Rising energy demand is the primary driver for the growth in the coal industry but a transition to renewable forms of energy forms a major headwind. The steel industry along with other manufacturing sectors provides a sustained demand for coal. These industries have not fared well in 2024, leading to unfavorable pricing for coal companies.

The production in the US is expected to remain flat in 2025 after registering a 12% drop in 2024. The demand from utility firms is expected to be met by the accumulation of inventory. India continues to be the destination where a majority of the exports of metallurgical and thermal coal take place. While the trend is expected to continue, a strengthening dollar is expected to lower the volumes in the near future.

The recent performance of coal companies has not been particularly good due to the overall macroeconomic environment. Companies are looking to diversify their assets and are exploring opportunities in other commodities like mining. Nonetheless, most of these companies have a healthy balance sheet that has enabled them to tide over this period. With a better year around the corner, there should be a revival in business for these companies.

Coal ETFs have generated returns of -4.34%, -17.86% and -20.86% for 1-month, 6-month and 1-year tenors. While big tech players pose a threat, there is immense potential to tap a constantly growing advertising pie that would benefit traditional players.

For this article we picked 10 coal stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

An aerial view of a mining operation in action, with large trucks and yellow diggers.

BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Investors: 22

BHP Group Limited (NYSE:BHP) operates as a resources company with coal being one of the key segments. The primary operations of BHP are located in Australia, Europe, China, Japan, India, South Korea, the rest of Asia and North America.

While the overall business has been growing, energy coal production was down 4% y-o-y and steelmaking coal was lower by 23% in the latest quarter. This does not deter the annual guidance as the company expects coal production to be in the upper half of its guidance for 2025. The impact of unfavorable coal prices has been offset by higher shipments. A diversified business makes BHP a defensive investment in the commodity space. A more favorable coal pricing should enable BHP to generate better margins. It has already received a higher EBITDA revision for the year. A forward dividend yield close to 6% also offers a lucrative investment opportunity in this stock.

Overall BHP ranks 8th on our list of the best coal stocks to buy. While we acknowledge the potential of BHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BHP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

Southern Copper (SCCO) closed the most recent trading day at $91.62, moving -1.11% from the previous trading session. This move lagged the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 0.28%.

Heading into today, shares of the miner had gained 0.53% over the past month, lagging the Basic Materials sector's gain of 4.34% and the S&P 500's gain of 2.87% in that time.

The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company is forecasted to report an EPS of $1.02, showcasing a 78.95% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.78 billion, indicating a 21.1% increase compared to the same quarter of the previous year.

Investors might also notice recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. Southern Copper currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Southern Copper is at present trading with a Forward P/E ratio of 20.03. Its industry sports an average Forward P/E of 20.03, so one might conclude that Southern Copper is trading at no noticeable deviation comparatively.

Investors should also note that SCCO has a PEG ratio of 1.81 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining – Non Ferrous was holding an average PEG ratio of 0.87 at yesterday's closing price.

The Mining – Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 165, positioning it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The market expects Southern Copper (SCCO) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

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

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

Zacks Consensus Estimate

This miner is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +79%.

Revenues are expected to be $2.78 billion, up 21.1% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Earnings Whisper

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

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

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

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

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

How Have the Numbers Shaped Up for Southern Copper?

For Southern Copper, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -13.30%.

On the other hand, the stock currently carries a Zacks Rank of #3.

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

Does Earnings Surprise History Hold Any Clue?

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

For the last reported quarter, it was expected that Southern Copper would post earnings of $1.12 per share when it actually produced earnings of $1.15, delivering a surprise of +2.68%.

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

Bottom Line

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

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

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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VANCOUVER, BC, Jan. 30, 2025 /CNW/ – (TSX: LUN) (Nasdaq Stockholm: LUMI) Minera Ojos del Salado, a subsidiary of Lundin Mining Corporation ("Lundin Mining" or the "Company") has received a notice from the Superintendencia del Medio Ambiente ("SMA") following its investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine in 2022. The notice levies a fine of $3.3 million and orders the continued closure of the Alcaparrosa mine, based on four violations investigated.

Mining operations at Alcaparrosa have been suspended since the incident occurred in 2022. At the time, Mineral Reserve estimates for the Alcaparrosa mine were removed from the Company's reserve statement and have not been included in any future production estimates. The Company's Candelaria operation is unaffected and generated record production in the second half of 2024. The Candelaria mine is forecast to produce 140,000 tonnes to 150,000 tonnes of copper in 2025.

The Company has collaborated with investigative proceedings initiated by the national environmental regulator (SMA), including providing monitoring technology, studies and experts to guide the process. The Company will review the notification and determine the next steps relating to the charges that it allegedly breached its environmental permit at its Minera Ojos del Salado operation which owns the Alcaparrosa mine.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations or projects in Argentina, Brazil, Chile, and the United States of America, primarily producing copper, gold and nickel. In December 2024 the Company announced the sale of their European assets to Boliden, the transaction is expected to close in mid-2025 subject to customary conditions and regulatory approvals.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on January 30, 2025 at 19:00 Eastern Time.

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein are "forward-looking information" within the meaning of applicable Canadian securities Certain of the statements made and information contained herein are "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the operation of Vicuña with BHP; the realization of synergies and economies of scale in the Vicuña district; estimated capital expenditures; the timing and expectations for studies and updated estimates; the completion of the sale of the Company's European assets and the timing thereof; the conditions to close the sale of the Company's European assets; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results and timing of any Preliminary Economic Assessment, Pre-Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; expansion projects and the realization of additional value; the Company's integration of acquisitions and expansions and any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking information.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, zinc, nickel, gold and other metals; anticipated costs; that the conditions to close the sale of the Company's European assets will be satisfied; the ability to achieve goals and identify and realize opportunities; the prompt and effective integration of acquisitions, including the acquisition of Filo, the establishment of the joint arrangement with BHP and the realization of synergies and economies of scale in connection therewith; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: the failure to obtain required approvals for the sale of the Company's European assets; global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; project financing risks, liquidity risks and limited financial resources; volatility and fluctuations in metal and commodity demand and prices; delays or the inability to obtain, retain or comply with permits; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; risks relating to the development of the Filo del Sol project and the Josemaria project; inability to attract and retain highly skilled employees; risks associated with climate change; compliance with environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks relating to indebtedness; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration, including the joint acquisition of Filo and the joint arrangement with BHP; changing taxation regimes; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; activist shareholders and proxy solicitation matters; risks relating to dilution; regulatory investigations, enforcement, sanctions and/or related or other litigation; risks relating to payment of dividends; counterparty and customer concentration risks; the estimation of asset carrying values; risks associated with the use of derivatives; risks relating to joint ventures, joint arrangements and operations; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of a significant shareholder; exchange rate fluctuations; challenges or defects in title; internal controls; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; the threat associated with outbreaks of viruses and infectious diseases; risks relating to minor elements contained in concentrate products; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Company's MD&A for the year three and nine months ended September 30, 2024 and the "Risk and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.com under the Company's profile.

All of the forward-looking information in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward ‐ looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

Lundin Mining Reports on Legal Notice Pertaining to the 2022 Sinkhole at the Alcaparrosa Mine (CNW Group/Lundin Mining Corporation)

SOURCE Lundin Mining Corporation

Cision

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2025/30/c9199.html

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