Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Southern Copper (SCCO), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Southern Copper currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for SCCO that show why this miner shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For SCCO, shares are up 5.56% over the past week while the Zacks Mining – Non Ferrous industry is up 6.2% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 17.05% compares favorably with the industry's 12.57% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics — such as performance over the past three months or year — can be useful as well. Over the past quarter, shares of Southern Copper have risen 63.38%, and are up 88.22% in the last year. In comparison, the S&P 500 has only moved 7.06% and 28.36%, respectively.

Investors should also take note of SCCO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, SCCO is averaging 1,482,347 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with SCCO.

Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SCCO's consensus estimate, increasing from $3.46 to $3.97 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Given these factors, it shouldn't be surprising that SCCO is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Southern Copper on your short list.

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By Marco Aquino

LIMA (Reuters) – Southern Copper's long-stalled Tia Maria project in Peru is set to break ground by the end of the year or in the first half of 2025, a senior company executive told Reuters, which would mark a major breakthrough for the $1.4 billion mine.

Raul Jacob, vice president of finance at Southern Copper, Peru's third largest copper producer controlled by Grupo Mexico, said "social conditions" had improved after years of protest that have halted the mine's development.

"We are fine-tuning details to be able to begin construction towards the end of this year or in the first part of next year," said Jacob, giving for the first time in years a concrete estimated start date for work on the project.

"There are no pending licenses, we have all the authorizations and we have not stopped working with the communities."

Peru, the world's second largest exporter of copper, is battling to rev up production as it jostles with rival producer the Democratic Republic of Congo and looks to revive a faltering economy after years of political turmoil and unrest.

Tia Maria, in the Islay province of the Arequipa region, is expected to eventually produce 120,000 tons of copper annually.

The project has, however, been held up for over a decade due to opposition from communities due to fears of the mine's environmental impact. Protests against the mine left six people dead between 2011 and 2015.

In 2019, after new protests, the government suspended its construction license for 120 days and agreed with Southern Copper that the project would only move forward when the social conditions were suitable.

Peru's government did not immediately respond to a request for comment. Mining minister Romulo Mucho told Reuters in May that the start of a new large mining project such as Tia Maria would be an important jolt to help ignite the economy.

Jacob said that copper prices at record levels would mean the project benefited both the state and the local region around the mine. He added Southern Copper expects to boost copper production in Peru 20% this year from 374,149 tons last year.

(Reporting by Marco Aquino; Editing by Adam Jourdan and Chizu Nomiyama)

LONDON (Reuters) – Anglo American shareholder Legal & General Investment Management (LGIM) supports the break-up plan announced by the company last week, it said on Monday, as the deadline approaches for BHP Group to log a formal takeover offer.

The radical plan to divest Anglo's less profitable coal, nickel, diamond and platinum businesses followed its rejection of two all-share takeover approaches from BHP, the world's biggest listed mining group, which had proposed a $43 billion deal on the condition that Anglo first spins off its South African operations.

"The plan outlined by Anglo American is a radical but attractive strategy to create value for long-term investors," said Nick Stansbury, head of climate solutions at LGIM.

LGIM is among Anglo's biggest investors with a stake of about 2%, LSEG data shows.

"The execution of this plan will be challenging for management to deliver, but we are confident in their ability to do so over time," Stansbury added.

Under UK takeover rules, BHP has until 1700 GMT on Wednesday to make a binding bid for Anglo or it will be forced to walk away for at least six months. If the companies find an agreement in the meantime, an extension can be granted.

Anglo American and BHP Group declined to comment.

BHP Chief Executive Mike Henry told investors last week that Anglo shareholders must consider the benefits of a combination of the two companies and which team they think has a better track record of executing projects and delivering returns.

Henry also said he was disappointed with the Anglo board's continued refusal to engage.

"Our discussions with Anglo American indicate that their board are acting appropriately with regards to the level of engagement they are having with BHP," Stansbury said in an emailed statement.

LGIM does not see a clear reason for the Anglo board to change stance unless BHP offers a reasonable premium to the underlying fair value of Anglo's assets, he added.

(Reporting by Clara Denina and Sinead Cruise; Editing by David Goodman)

Gold prices (GC=F) hit a record high today, boosted by increasing geopolitical uncertainty following the death of Iran’s president. Blue Line Futures Chief Market Strategist Phil Streible and Wolfe Research Managing Director Timna Tanners join Market Domination to discuss why commodities — including other precious metals silver (SI=F) and copper (HG=F) — have seen such a boost.

Streible explains that when trading commodities, investors need to identify two things: A supply-demand imbalance and market momentum. He says that in the instance of copper, demand is soaring amid a green energy revolution and an artificial intelligence push:

“The combination pushes demand for copper, silver, and other metallic metals higher for the first time in over a decade, and this comes at a time when increased regulation makes it harder for additional supplies of these metals to come into light and end up in the end user’s hands. So, it’s just creating this global deficit right now. It’s a perfect storm for commodities.”

“Don’t let the facts get in the way of a good narrative here,” Tanners warns. “The reality is, this is really a squeeze that’s happening in the financial community more than in the physical market,” she explains, saying that copper saw a lot of short squeezes.

“When it comes to investing of any type, you always want to manage position sizing, making sure that it’s risk capital that’s involved,” Streible adds. Tanners also notes that investors should be watching China in the commodities market, as its electric vehicle sector skyrockets and new measures to revitalize its property sector have been introduced.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video Transcript

Commodities have been on a tear, specifically metals, gold prices hitting a record high today.

Boosted by mounting geopolitical uncertainty fueled by the death of Iran’s president over the weekend, we’re looking at how to navigate the big picture with the Yahoo finance playbook.

And we’re joined by Phil Stri Blue line futures, chief Market strategist and Tim Natan, managing director at Wolf Research.

Thank you both for being here.

Phil.

I’m gonna start with you.

Um It’s not just gold, silver, copper.

We are really seeing some pretty amazing um increases in many of these medals.

Does a lot of it have to, I mean, is it sort of the dual thing here of geopolitics and then A I that’s helping fuel this?

Yeah, if you break it down into copper, I mean, you know, when you trade commodities, it doesn’t matter what it is, you really got to identify two characteristics when investing it’s a supply demand, imbalance and its market momentum.

You look at copper, for instance, you’ve got increased electrical power use because of the green energy revolution.

You’ve also got rising demand from electric vehicles and advancement of A I have also strained the outdated electrical grid.

So the combination pushes demand for copper, silver and other metallic metals higher for the first time in over a decade.

And this comes at a time when increased regulation makes it harder for additional supplies of these metals to come into a light and end up in the end user’s hands.

So it’s just creating this global deficit right now.

It’s a perfect storm for commodities and Tim now you cover the miners.

Can you give us an overview and these are very different companies uh depending on what’s mined and scattered throughout the world, different geopolitical structures and, and things at play.

What are factors that the miners are being, are concerned with right now and some of those that are translated into higher prices down the stream amount of new copper mines starting up this year.

There’s um we can rattle off a couple off the top of our heads, the K of Eco QB two, there’s Oy Togo and uh Koa Kula.

So there’s quite a bit of copper coming on and a lot of the new copper demand isn’t gonna hit the market till 2030 especially data centers may be a 1 to 3% global phenomenon over from 2020 to 2030.

So there’s nothing really very incrementally supporting this um massive rally aside from a small deficit in copper if you look at the data.

However, you know, there’s nothing to get in the way of a good um the facts don’t want the facts to get in the way of a good narrative here.

Um The reality is this is really a squeeze that’s happening in the financial community more than in the physical market.

Uh There’s a lot of shorts that were squeezed in copper.

It’s quite a bit of analysis on that.

Um And definitely, um you know, the phenomenon of Russian material not being able to delivered to the US is causing a physical squeeze in terms of the miners.

Um Certainly they are enjoying these higher prices.

Uh It’s hard to explain if how sticky they’ll really be from what we just described.

Um There is the high profile potential uh acquisition of Anglo by BHP that looks like it’s hitting a wall here, but we aren’t hearing a mass amount of M and A. Um even though it is hard to build, it’s also getting expensive to buy.

Well, and Phil to circle it back to you, if indeed at least a substantial portion of the copper rally is a short squeeze.

Like if you’re not an experienced trader, do you wanna try and chase that?

I mean, how much sustainability does that have?

Well, this is where you gotta really put your thinking cap on.

You’ve got to manage your risk, you’ve gotta manage your position.

Sizing of the uh more recent plays that we had recommended to our clients was a particular call spread where it’s a calculated risk trade, which has a favorable risk to reward ratio, but it also defined the risks involved.

So when it comes to investing of any type, you know, you always want to manage position sizing, making sure that it’s risk capital that’s involved.

So if you were step into the market right now, you know, on the copper market, you could take some of these calculator risk option play or you could look at the micro copper contract which is only 2500.

So every penny move, say from something like $5 to 501 would be a $25 positive impact in your account or a dip down to 499 a $25 negative impact Tim.

Now let’s stick with risk risk management here.

Uh So the approach that we would have with the futures market and whether you’re investing directly in the futures or an ETF that’s a little bit different than a stock play where you’re investing in with miners.

How do you go about that?

How do you advise clients?

Uh the best way to approach?

We have coverage names that are a little more liquid like Freeport.

We have names with a nice dividend like Southern Copper and then we cover tech resources which we think has the most interesting combination of a little discounted valuation because it’s a show me story and execution of their operational ramp up at QB two and some more interesting growth.

So in our view if you can have copper exposure with copper growth, that’s the way to go.

Um Tim, I wanna turn to gold and silver a little bit more now too because as you look at the miners, I mean, many of them do multiple different metals that they are mining.

But I’m curious what you think about the trajectory for those medals and which miners might be best poised to take advantage?

Sure.

We don’t unfortunately cover precious.

We do have a exposure through Freeport where they do mine gold or um their grass mine is the largest gold producer in the world and it’s a great by-product credit benefit to them.

It’s an interesting market when you see geopolitical risk helping gold but also copper at all time highs.

It’s not usually um you know, they usually uh go in different directions.

So it’s a, it’s an incremental positive for sure, for Freeport.

And uh Phil talk to me please about some of the volatility that we’ve seen in the futures market this year.

I was just looking at uh a heat map we have on the Wi Fi Interactive and Cocoa is actually up the most this year.

It’s up 68% although it’s still down 30% from its highs.

Just wondering uh how investors should consider some of the volatility embedded in these markets before rushing out and, and investing in a, in a metal.

Yeah, this is where you got to weigh in as far as those many and micro contracts account size and everything else.

A lot of the volatility we’ve seen, you know, is because of the rising geopolitical tensions.

You’ve also seen increased consumer investments and one of the largest speculative long positions that we’ve seen in the last two years in the gold market.

So you get geopolitical events, things that happen over the weekend and things like that, you’re gonna see a lot of that volatility here because of the fact that people are so embedded in the market.

They’ve got so much exposure there and the more participants you have coming in there, it’s like a river and they all rushes in one direction here at the moment.

So you always got to keep your 1 ft out of the door here and be ready to, you know, be the first person to leave.

They always have an old saying in commodities, you want to arrive to the party late but be the first person to leave.

I like that, Tim uh I’m gonna give you the last word here.

Anything we didn’t touch on.

Uh in this uh in this discussion that you want to leave with viewers, I think you can ignore the 800 gorilla in the room which is China.

China accounts for 50% of all demand for commodities that we follow on the middle side.

Um And I think that China is a big question mark so clearly, they’re farther along in terms of eb adoption than we are here in the North American market.

But um you know, and so that’s positive for transmission lines for copper demand.

But on the flip side, their property sector is I’d say in very late innings of development, you’ve seen, you know, months now of the completion side reversing which is usually negative for copper.

So are we seeing net copper demand in China or not?

I think a lot of that will depend on how the stimulus measures play out.

And so far they’ve not been that impressive.

So I think we have to include China in any of these discussions.

All right, never forget the 800 gorilla.

Thank you, Timna and Phil.

(Bloomberg) — With time running out on its $43 billion pursuit of Anglo American Plc, BHP Group faces a critical question: what would it take to draw the smaller company to the negotiating table within the next few days?

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BHP’s plan to partially break up and then acquire Anglo has transfixed the mining industry by pitting two of its biggest names against each other in a public tussle. Anglo has already rejected two non-binding proposals from BHP — criticizing both the valuation and complexity — and instead rushed out a dramatic restructuring plan of its own.

Now, all eyes are on BHP: By 5pm London on Wednesday, the world’s biggest miner must either announce a firm intention to make an offer, or walk away for six months under UK takeover rules.

BHP is considering whether to make an improved proposal, but had yet to do so, according to people familiar with the matter. The world’s biggest miner would like some sign of engagement from Anglo to make a firm offer, some of the people said, and one way to achieve that could be with a proposal attractive enough to convince Anglo’s own investors to push the company to enter talks.

Still, BHP is wary of bidding against itself in a vacuum, and walking away remains a strong possibility. The company currently has no intention of going hostile with an offer to Anglo’s shareholders if the board refuses to engage with it.

Spokespeople for BHP and Anglo declined to comment.

BHP CEO Mike Henry is trying to get his hands on Anglo’s copper assets, which are the envy of the industry, but wants Anglo to first spin off its South African platinum and iron ore businesses before proceeding with a takeover. The acquisition would be the industry’s biggest deal in over a decade and would create the world’s biggest copper producer — accounting for roughly 10% of global supply — at a time when mining companies and their investors are positioning to benefit from a looming supply deficit.

The approaching deadline follows a drama-filled week, in which BHP revealed that it been rebuffed for a second time after increasing the number of shares it was offering for the rest of Anglo. A day later, Anglo CEO Duncan Wanblad unveiled his own plan to reshape its business by exiting platinum, diamonds and coal and slowing an unpopular fertilizer project.

Read More: Anglo-BHP Battle Is Between Two CEOs Fighting Over Same Vision

BHP has been emboldened by Anglo’s announcement given the similarities to its own plan — particularly the proposal to spin off the platinum business — and the company is now weighing how it might draw Anglo shareholders into the fray to pressure the smaller miner to begin discussions.

Technically, Anglo could ask for an extension to the deadline, but as things stand it has no intention to do so, people familiar with the matter said.

And while some shareholders have warmed to Anglo’s plan this week, its two biggest holders, BlackRock Inc. and South Africa’s Public Investment Corp., have yet to express a public view on which approach they would favor. The pair will be pivotal, holding about 18% of Anglo’s stock between them.

Meanwhile, activist Elliott Investment Management has also built a stake in Anglo and is currently assessing its options, another person said.

Speaking privately, several of Anglo’s other large shareholders said that they had not been convinced by BHP’s latest proposal. They also indicated a lack of urgency, saying that Anglo’s plan to slim itself down and focus on copper increased the likelihood that BHP or one of its rivals would target the company for a takeover in the future, if the current attempt doesn’t succeed.

However, BHP’s own shareholders may be skeptical if a restructured Anglo demands a better valuation.

Read More: BHP’s Bid for Anglo American Was Years in the Making

“The problem is, if they take out that risk, they come back in a year’s time, they have to pay a higher 30% premium on Anglo share prices in a years’ time when it’s in a better situation,” said Hugh Dive, chief investment officer of Atlas Funds Management in Sydney, which owns BHP shares.

BHP’s current offer values Anglo — including the majority stakes it holds in the listed South African companies — at £29.45 a share. Anglo closed on Friday at £26.775 in London, suggesting investors are pricing in a lower likelihood of a deal, but remains about 27% higher than the day before the BHP approach was first reported by Bloomberg.

In conversations with five of Anglo’s top-20 shareholders, most said they thought that Anglo’s plan has put the company on a surer footing, at least for the immediate goal of fending off BHP’s current takeover attempt. Several said that they particularly welcomed the belt-tightening promised at the UK fertilizer project.

Read More: Anglo Goes for Bold Breakup Plan in Move to Fend Off BHP

If Anglo’s management can achieve its ambitious portfolio overhaul, the shareholders agreed that the leaner copper and iron ore business will be a much more attractive target than the sprawling company is today – something they said won’t be lost on Rio Tinto Group and Glencore Plc. For now, however, most of the investors said that neither of the visions for Anglo outlined so far by Henry or Wanblad is clearly superior, and they could be persuaded by both sides.

BHP currently has no intention of taking its offer directly to Anglo’s investors in a hostile bid, several of the people said. Such a move would not allow for BHP to conduct due diligence on Anglo’s assets and would risk invoking the ire of its own shareholders, who have demanded the company stays disciplined. It would also require it to bid for all of Anglo — including the parts it’s insisting Anglo hive off as a prerequisite for a deal.

That means BHP needs Anglo to engage and agree to talks. But the clock is running down.

–With assistance from Clara Ferreira Marques, Sybilla Gross, Simon Casey, Yvonne Yue Li, Jacob Lorinc and Swetha Gopinath.

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Investors with an interest in Mining – Non Ferrous stocks have likely encountered both Amerigo Resources (ARREF) and Freeport-McMoRan (FCX). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Amerigo Resources has a Zacks Rank of #1 (Strong Buy), while Freeport-McMoRan has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARREF has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ARREF currently has a forward P/E ratio of 8.54, while FCX has a forward P/E of 31.34. We also note that ARREF has a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FCX currently has a PEG ratio of 8.46.

Another notable valuation metric for ARREF is its P/B ratio of 2.15. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FCX has a P/B of 2.66.

Based on these metrics and many more, ARREF holds a Value grade of B, while FCX has a Value grade of C.

ARREF sticks out from FCX in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARREF is the better option right now.

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By Anousha Sakoui

LONDON (Reuters) – BHP Group would need to boost its latest offer around 30% to reflect fair value for Anglo American and its key copper assets, JPMorgan analysts said in a note.

They raised their price target for London-listed Anglo to 27.75 pounds a share after reexamining the value of its copper assets, and said the discount for the shares to the implied value of BHP's offer was at its greatest level, implying the market sees a deal as unlikely.

WHY IT'S IMPORTANT

Anglo has rejected two bid proposals from BHP. Under UK takeover rules BHP must make a firm offer by May 22, or walk away. BHP's latest proposal was 27.53 pounds per share, up from 25.08 previously.

KEY QUOTES

"Anglo’s shares now trade at the greatest discount (-13.6%) to the implied value of BHP’s offer, implying that the market assigns a low probability to BHP’s ability to raise its offer and achieve an agreed deal," JP Morgan analysts said.

"In a 20% (change of control) scenario, we estimate Anglo American plc at ~£32/sh (~$50bn), or Anglo plc Rump (the entity BHP is seeking to acquire) at $39bn (£24.79), ~30% higher than the value of BHP’s current offer."

BY THE NUMBERS

The analysts increased their December 2025 fair value for Anglo Copper by 25% to $27 billion (17.47 pounds per share) and increased their Anglo price target to 27.75 pounds per share from 26 pounds previously. That factored in their copper reassessment, as well as $4 billion lower capital spending (capex) forecast over 2025 due to the cessation of development capex at the Woodsmith crop nutrient project.

CONTEXT

On Monday, Anglo rejected an improved 34 billion pound ($43 billion) proposal from BHP, saying BHP "continues to significantly undervalue" its business. BHP has proposed Anglo divest its South African platinum and iron ore assets as a pre-condition to an offer for the rest of the company.

THE RESPONSE

Anglo and BHP did not immediately comment on the report.

(Reporting by Anousha Sakoui; Editing by Mark Potter)

By Clara Denina and Felix Njini

LONDON (Reuters) – Anglo American has been looking for partners for its fertiliser project in North Yorkshire for around six months, Chief Executive Duncan Wanblad told Reuters, reiterating the business will be one of three pillars of the revamped miner, even as work there stalls.

The London-listed miner outlined a radical plan on Tuesday to shrink by divesting less profitable coal, nickel, diamond and platinum businesses, as it moves to fend off BHP Group's $43 billion takeover offer.

As part of the plan, Anglo said it would slow the development of its Woodsmith fertiliser project in northeast England, pushing back first production from 2027.

"We have been in the market looking for partners for the better part of six months now and we have to stall to get the partners to the point where they are prepared to invest," Wanblad said in an interview with Reuters on Thursday.

Woodsmith, on which the miner announced a $1.7 billion writedown a year ago, has the world's largest known deposit of polyhalite, a naturally-occurring mineral containing nutrients including potassium, calcium, magnesium and sulphur, which it is marketing as POLY4.

A feasibility study for the project is only expected to be ready by the beginning of 2025. This would have been followed by a board full notice to proceed in the first half of the year if the wider assets restructuring had not got in the way.

"(When) we're delevered materially compared to where we are now, we're going to be in a much stronger position to move this forward and that's the plan," Wanblad said.

The company's net debt swelled to $10.6 billion by the end of 2023, from $6.9 billion a year earlier.

Analysts estimated total spending on Woodsmith at around $9 billion.

Wanblad also said a plan to spin off the company's platinum unit in South Africa, sell off or demerge the diamonds and coking coal businesses wasn't rushed by the takeover threat from BHP.

Anglo last week rejected a second proposal from the world's No. 1 miner.

"I started an operational restructure last year …in May, it was completed in December," Wanblad told Reuters.

In February, Anglo announced an asset review having earlier outlined plans to implement deeper cost cuts to preserve cash.

"None of this is a response that we've caught up or concocted up in the last 10 days," Wanblad added.

"You can see the clarity of the thinking and the depth of the thinking that's gone into this, it's not days' worth of work, it's many months' worth of work."

(Reporting by Clara Denina and Felix Njini; Editing by Susan Fenton)

White Rock, British Columbia–(Newsfile Corp. – May 16, 2024) – Honey Badger Silver Inc. (TSXV: TUF) (OTCQB: HBEIF) ("Honey Badger" or the "Company") announces that Mr. Chad Williams has purchased 4,431,000 common shares of Honey Badger Silver Inc. ("TUF" or the "Company") (TSXV: TUF) at a price of $0.06 per common share.

Immediately prior to the purchase, Mr. Williams held 12,065,924 common shares representing approximately 19.50% of the Company's issued and outstanding common shares and would have held 28.57% if all of the 3,510,167 share purchase warrants and 2,100,158 stock options held by him were exercised.

As a result of his purchase of 4,431,000 common shares today, Mr. Williams now holds 16,496,924 common shares, representing approximately 26.66% of TUF's issued and outstanding common shares, and would hold 35.73% if all of his share purchase warrants and stock options were exercised.

Mr. Williams acquired the common shares described herein for investment purposes and subject to applicable securities laws, may increase or decrease his ownership of securities of the Company from time to time depending on market conditions and/or other relevant factors.

A copy of the early warning report to be filed by Mr. Williams in connection with the purchase of common shares described above will be available on SEDAR+ under the Company's profile.

About Honey Badger Silver Inc.

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

(1) Sunrise Lake 2003 RPA historic resource: Indicated 1.522 million tonnes grading 262 grams/tonne silver, 6.0% zinc, 2.4% lead, 0.08% copper, and 0.67 grams/tonne gold and Inferred 2.555 million tonnes grading 169 grams/tonne silver, 4.4% zinc, 1.9% lead, 0.07% copper, and 0.51 grams/tonne gold.(2) Clear Lake 2010 SRK historic Resource: Inferred 7.76 million tonnes grading 22 grams/tonne silver, 7.6% zinc, and 1.08% lead.(3) Geological Survey of Canada, 2002-C22, "Structural and Stratigraphic Controls on Zn-Pb-Ag Mineralization at the Nanisivik Mississippi Valley type Deposit, Northern Baffin Island, Nunavut; by Patterson and Powis."

ON BEHALF OF THE BOARD

Dorian L. (Dusty) Nicol, CEO

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

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

Cautionary Note Regarding Forward-Looking Information

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

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209594

REE Automotive Ltd.

Penske Class 4 EV Powered by REE

The P7-C is the world’s first FMVSS certified full by-wire EV featuring all-wheel steer and all-wheel drive with a range of up to 169 miles and a driver-centric cab upfitted with a 16 foot Wabash DuraPlate® body with ramp

–  The Powered by REE® Penske truck will be on display at the REE booth at ACT Expo in Las Vegas-  The P7-C is the world’s first FMVSS certified full by-wire EV featuring all-wheel steer and all-wheel drive with a range of up to 169 miles and a driver-centric cab upfitted with a 16 foot Wabash (NYSE: WNC) DuraPlate® body with ramp-  REE and Penske will hold a joint press conference to expand on the collaboration during ACT Expo in Las Vegas

LAS VEGAS, May 15, 2024 (GLOBE NEWSWIRE) — REE Automotive Ltd. (Nasdaq: REE), an automotive technology company and provider of full by-wire electric trucks and platforms, today announced that Penske Truck Leasing, a leading global transportation services provider, will begin to offer Powered by REE EVs to its customers interested in electrifying their fleets for demos and orders, adding further momentum to REE’s current $50 million order book value.

“We are looking forward to adding REE’s by-wire vehicle to our electric truck lineup and giving our fleet customers the opportunity to demo the vehicle and experience the technology firsthand,” said Paul Rosa, Senior Vice President of Procurement & Fleet Planning at Penske.

Paul Rosa and Daniel Barel, co-founder and CEO of REE, will hold a joint press conference to expand on the collaboration on May 22, 2024, at ACT Expo in REE’s booth #3723 at 12:45 p.m. PT.

Penske’s customers will have the opportunity to experience the intended benefits of the world’s first U.S. Federal Motor Vehicle Safety Standards (FMVSS) certified, software-driven, electric vehicle powered by REEcorner® full by-wire technology including:

• Superior maneuverability and all-wheel drive functionality

• Enhanced safety with fail operational design via redundancies in hardware and software

• Driver-centric cabin with excellent ergonomics and low chassis height

• REEcorners designed for serviceability for low total cost of ownership (TCO)

• Strong residual values

• Future-proofed, autonomous-ready and over-the-air (OTA) upgrade capable

• Modular design and quick time to market

• Optimal energy efficiency

“Today’s announcement is a testament to the synergy between REE's revolutionary technology and Penske's commitment to leading in the transportation and logistics industry,” said Daniel Barel, CEO and co-founder of REE Automotive. “This is the fruit of a long collaboration and incorporation of Penske’s voice of the customer. We are currently working on additional P7-C configurations to maximize utilization within Penske’s large product offering. By partnering with Wabash for this upfit, we believe that we were able to provide a superior product to Penske, meeting their requirements as well as expanding our roster of upfitters that can seamlessly integrate with REE’s platforms.”

REE collaborated with Wabash (NYSE: WNC) to upfit the P7-C with a custom DuraPlate® truck body utilizing the unique low floor, all-wheel steer all-wheel drive full by wire P7-C characteristics. Wabash's DuraPlate technology's lightweight properties enhance the feasibility of electric chassis for fleets while maintaining durability. Vehicles Powered by REE are upfit ready and designed to offer considerable benefits for body installations, including:

• No Drill: Integrated mounting weld nuts so that bodies can be secured directly to frame rails

• Battery Maintenance: Accessible from under the chassis

• Flat Floor with integrated ramp: Structural advantages and weight savings by reducing the need for additional body mounting kits, and independent suspension to reduce body stresses. The ramp takes advantage of the low floor box configuration.

• Electrical Integration: Plug and play chassis harnesses for aftermarket electrical and ADAS systems

• Driver Assistance Systems: Seamless integration of third-party systems; camera images can be viewed directly on infotainment screen

To learn more about REE Automotive’s patented technology and unique value proposition that position the company to break new ground in e-mobility, visit www.ree.auto.

About REE AutomotiveREE Automotive (Nasdaq: REE) is an automotive technology company that allows companies to build electric vehicles of various shapes and sizes on their modular platforms. With complete design freedom, vehicles Powered by REE® are equipped with the revolutionary REEcorner®, which packs critical vehicle components (steering, braking, suspension, powertrain and control) into a single compact module positioned between the chassis and the wheel. As the first company to FMVSS certify a fully by-wire vehicle in the U.S., REE’s proprietary by-wire technology for drive, steer and brake control eliminates the need for mechanical connection. Using four identical REEcorners® enables REE to make the industry’s flattest EV platforms with more room for passengers, cargo and batteries. REE platforms are future proofed, autonomous capable, offer a low total cost of ownership (TCO), and drastically reduce the time to market for fleets looking to electrify. To learn more visit www.ree.auto.

About Penske Truck LeasingPenske Truck Leasing is a Penske Transportation Solutions company headquartered in Reading, Pennsylvania. A leading provider of innovative transportation solutions, Penske operates and maintains more than 445,000 vehicles and serves its customers from more than 980 maintenance facilities and more than 2,650 rental locations across North America. Solutions from Penske include full-service truck leasing, fleet maintenance, truck rentals, used trucks, and a comprehensive array of technologies to keep the world moving forward. Visit PenskeTruckLeasing.com to learn more.

Media ContactMalory Van GuilderSkyya PR for REE Automotive+1 651-335-0585ree@skyya.com

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

Caution About Forward-Looking StatementsThis communication includes certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding REE or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. For example, REE is using forward-looking statements when it discusses the benefits of its vehicle design, its intent to provide additional P7-C configurations, its intent to hold a press conference with Penske at ACT Expo, the potential for the demo to add further momentum to its current $50 million order book value and Penske’s intent to demo the P7-C to its customers. In addition, any statements that refer to plans, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “aim” “anticipate,” “appear,” “approximate,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “would”, “designed,” “target” and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements in this communication may include, among other things, statements about REE’s strategic and business plans, technology, relationships and objectives, including its ability to meet certification requirements, the impact of trends on and interest in our business, or product, intellectual property, REE’s expectation for growth, and its future results, operations and financial performance and condition.

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

Uncertainties and risk factors that could affect REE’s future performance and could cause actual results to differ include, but are not limited to: REE’s ability to commercialize its strategic plan, including its plan to successfully evaluate, obtain regulatory approval, produce and market its P7 lineup; REE’s ability to maintain and advance relationships with current Tier 1 suppliers and strategic partners; development of REE’s advanced prototypes into marketable products; REE’s ability to grow and scale manufacturing capacity through relationships with Tier 1 suppliers; REE’s estimates of unit sales, expenses and profitability and underlying assumptions; REE’s reliance on its UK Engineering Center of Excellence for the design, validation, verification, testing and homologation of its products; REE’s limited operating history; risks associated with building out of REE’s supply chain; risks associated with plans for REE’s initial commercial production; REE’s dependence on potential suppliers, some of which will be single or limited source; development of the market for commercial EVs; risks associated with data security breach, failure of information security systems and privacy concerns; risks related to lack of compliance with Nasdaq’s minimum bid price requirement; future sales of our securities by existing material shareholders or by us could cause the market price for the Class A Ordinary Shares to decline; potential disruption of shipping routes due to accidents, political events, international hostilities and instability, piracy or acts by terrorists; intense competition in the e-mobility space, including with competitors who have significantly more resources; risks related to the fact that REE is incorporated in Israel and governed by Israeli law; REE’s ability to make continued investments in its platform; the impact of interest rate changes, the ongoing conflict between Ukraine and Russia and any other worldwide health epidemics or outbreaks that may arise and adverse global conditions, including macroeconomic and geopolitical uncertainty; the global economic environment, the general market, political and economic conditions in the countries in which we operate; the ongoing military conflict in Israel; fluctuations in interest rates and foreign exchange rates; the need to attract, train and retain highly-skilled technical workforce; changes in laws and regulations that impact REE; REE’s ability to enforce, protect and maintain intellectual property rights; REE’s ability to retain engineers and other highly qualified employees to further its goals; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2024 and in subsequent filings with the SEC.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5a582bc2-e518-4f0b-8324-cef314eae769

(Bloomberg) — Shareholders in BHP Group Ltd. and takeover target Anglo American Plc expect the world’s largest miner to come back with a third and improved proposal before a regulatory deadline next week, even after the smaller company laid out a bold restructuring plan of its own on Tuesday.

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Anglo has twice rejected all-share approaches from BHP that would require it to spin off listed South African businesses, arguing the proposal created “significant uncertainty” for shareholders. Instead, to counter the latest $43 billion move, it has said it will itself exit diamonds, platinum and coal, turning into a miner focused on copper and iron ore — crown jewels for the group.

BHP has said it will remain disciplined in its pursuit and the market is signaling at least some investors remain skeptical, with Anglo American shares trading around £26.40 in the London morning — well below the latest bid, equivalent to £27.53 per share.

Yet shareholders in both companies interviewed by Bloomberg, some of whom declined to be named as they are not authorized to speak to the media, said there was still likely to be some room for a sweetened offer before a May 22 cut-off.

“I reckon they’ll go back to Anglo and say – look, we’re going to come back with 5% more,” said Daniel Sullivan, head of global natural resources at Janus Henderson, which holds both BHP and Anglo stock. “That’ll be it, and we’re going to take it straight to the shareholders. And the shareholders will rush at it faster than you’ve ever seen.”

Why BHP Is Targeting Anglo in Mining Mega Deal: QuickTake

In remarks to a mining conference this week, BHP Chief Executive Officer Mike Henry argued shareholders should now determine which of the two teams had a better chance of delivering the overhaul, signaling he would not yet cede.

Anglo’s decision not to hold discussions with BHP seemed “super aggressive,” Sullivan said, as the company raised concerns about carve-outs of its South African platinum and iron ore businesses but then chose to at least partly pursue a similarly complex strategy itself.

“I’m quite surprised that Anglo’s decided to blow up the company, rather than engage,” Sullivan said. “They’re probably scaring their own shareholders a bit by now. Those statements and decisions look quite erratic. And that’s not a good thing for anybody.”

–With assistance from William Clowes and Paul-Alain Hunt.

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©2024 Bloomberg L.P.

By Melanie Burton and Scott Murdoch

MELBOURNE (Reuters) – BHP Group's options for its pursuit of rival miner Anglo American include sweetening its $42.7 billion buyout offer, making a hostile bid or walking away for now as it approaches a May 22 deadline to lodge a binding offer.

As BHP weighs its next move, CEO Mike Henry and his team have been making the case for the mega-deal on the sidelines of an investor conference in Miami and elsewhere to its investors, a large proportion of whom also hold shares in Anglo.

"At this stage I think it is up to BHP to try to convince enough of Anglo's institutional shareholders over the coming week that it's worthwhile pressuring their board to engage with BHP, with a potentially even higher offer on the table should this occur," Morningstar analyst Jon Mills said.

Anglo's board has already knocked back two all-share proposals from BHP as inadequate and too difficult to execute and on Tuesday unveiled plans for a break-up to focus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses.

That plan met with a mildly supportive response from Anglo investors, who said it provided a strategy but was short on details.

With the exception of Anglo keeping its South African iron ore assets and selling its Australian coal mines, it was also similar to BHP's own plans for its takeover target.

"It would seem to me that they (Anglo) need to demonstrate why the bird in the hand is not better than two in the bush," Anglo investor Todd Warren at Tribeca Investment Partners said.

A top 25 Anglo investor said that there was nothing compelling about the company's restructuring proposal, which resulted in shares closing 3.2% lower at 26.195 pounds on Tuesday, below BHP's latest offer of about 27.53 pounds per share.

"Anglo management need to push for a bump. An additional 10%. And then wait for Glencore," said the investor who declined to be identified due to the sensitivity of the matter.

Swiss commodities group Glencore is studying a possible rival bid for Anglo, Reuters reported this month.

"We retain our view that interloper risk remains high," JPMorgan analyst Lyndon Fagan wrote in a note published on Tuesday before Anglo's restructure was announced.

Rio Tinto CEO Jakob Stausholm said on Tuesday that his company was not afraid of M&A, but it had strong organic growth options.

BHP, Anglo, Glencore and Rio Tinto declined to comment on Wednesday.

BHP'S OPTIONS

Under UK rules, BHP has one week left to make a binding bid for Anglo or it will be forced to walk away for at least six months.

To make its case for the buyout, BHP has pointed to its successful spin-off of South32, the demerger of its petroleum business to Woodside Energy in 2022 and coal asset sales as evidence that it is a safer pair of hands, according to slides from Henry's presentation in Miami.

It has also flagged execution risk after Anglo's management did not follow through on a 2016 vision of a "new Anglo" that would simplify the miner's structure into a core portfolio of diamonds, platinum group metals and copper.

The option of going hostile and taking its offer directly to Anglo shareholders is not new to BHP, which did so unsuccessfully in 2007 with a $140 billion all-share bid for rival Rio Tinto. It also made a $39 billion hostile bid for Canada's Potash Corp in 2010 that was blocked by the Canadian government.

But two sources familiar with the matter said BHP will not take that approach because it needs Anglo's management on board to clear regulatory hurdles in South Africa and to help it unlock the most value for shareholders. BHP also needs an agreed due diligence period to examine Anglo's books, they added.

BHP has also told investors it will not drop its requirement for Anglo to demerge South African businesses Kumba Iron Ore and Anglo American Platinum as a condition of the deal. Making a binding bid at the price already rejected by Anglo would force BHP to buy the entire company, which it is not prepared to do, said a source with knowledge of the matter.

That narrows BHP's options for a revised bid to improving the share ratio, adding some cash, or a mix of the two.

It could also decide to walk away, just as Xstrata, later bought by Glencore, did from a proposed $96 billion merger of equals that was rejected by Anglo's board in 2009.

BHP has told investors that Anglo is not a make-or-break deal and it may need to take time to reassess, a prospect increasingly being priced in with BHP shares on the rise, one investor said.

BHP shares were up 2.6% on Wednesday.

BHP could come back later once Anglo does more restructuring, though it would need to be at a higher price, the investor added.

(Reporting by Melanie Burton in Melbourne and Scott Murdoch in Sydney. Additional reporting by Greg Roumeliotis in New York and Sinead Cruise, Amy-Jo Crowley, Anousha Sakoui and Clara Denina in London; Editing by Praveen Menon and Jamie Freed)

Ferroglobe PLC GSM reported break-even adjusted earnings in the first quarter of 2024, beating the Zacks Consensus Estimate of a loss of 2 cents. The company posted earnings per share of 5 cents in the year-ago quarter.Including one-time items, GSM reported a loss of 1 cent per share in the quarter under review against earnings of 11 cents per share in the year-ago quarter.GSM’s revenues fell 2.2% year over year to $392 million in the quarter under review, owing to lower pricing in silicon metal and silicon-based alloys, partially offset by higher volumes. The top line beat the Zacks Consensus Estimate of $343 million.Silicon metal revenues in the first quarter were $168 million, up 4.4% from the prior-year quarter. The average realized selling price was down 27.5%, while total shipments increased 44% on a year-over-year basis.Silicon-based alloy revenues in the quarter under review were $112 million, down 17.3% year over year. The average realized selling price and total shipments of silicon-based alloys decreased 20.6% and increased 4.2%, respectively, year over year.Manganese-based alloy revenues in the quarter were $66 million, up 7.7% from last year’s comparable quarter. The average realized selling price declined 19% year over year, whereas total shipments improved 33%.

Ferroglobe PLC Price, Consensus and EPS Surprise

 

Ferroglobe PLC price-consensus-eps-surprise-chart | Ferroglobe PLC Quote

Operational Update

Raw materials and energy consumption for production was $257 million in the first quarter of 2024 compared with $200 million in the first quarter of 2023.Operating profit was $2.6 million in the quarter, a 94.4% drop from $44.5 million in the prior-year quarter. Adjusted EBITDA was $26 million compared with $45 million in the year-ago quarter. The adjusted EBITDA margin was 6.6% in the quarter under review compared with 11.2% in the prior year’s first quarter.

Financial Position

Ferroglobe ended the first quarter of 2024 with a total cash balance of around $160 million compared with $344 million at the end of the prior-year quarter. Cash flow from operations during the quarter was $198 million, up from the $135 million reported in the comparable period last year.GSM’s gross debt declined year over year to $81 million at the end of the first quarter, the lowest gross debt in its history.

Guidance

The company expects 2024 adjusted EBITDA to be $130-$170 million, up from the previously announced $100-$170 million.

Price Performance

GSM shares have gained 25.8% over the past year compared with the industry’s 15.8% growth.

 

Zacks Investment Research

Image Source: Zacks Investment Research

 Zacks Rank

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

Performance of Peer Stocks

Reliance, Inc. RS posted adjusted earnings of $5.23 per share in first-quarter 2024, down from $6.43 per share in the year-ago quarter.RS recorded net sales of $3.64 billion, down 8.1% year over year. The top line lagged the Zacks Consensus Estimate of $3.73 billion.Teck Resources TECK reported first-quarter 2023 adjusted earnings per share of 56 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line marked a 58% plunge from earnings of $1.32 per share in the year-ago quarter.TECK reported net sales of $2.96 billion compared with $2.8 billion in the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $2.99 billion.Piedmont Lithium Inc. PLL came out with a quarterly loss of 61 cents per share, wider than the Zacks Consensus Estimate of a loss of 54 cents. The company posted a loss of 47 cents in the year-ago quarter.PLL posted revenues of $13.4 million for the quarter ended March 2024, missing the Zacks Consensus Estimate of $14 million.

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(Bloomberg) — BHP Group Chief Executive Officer Mike Henry said investors must decide whether his team or the rival one at Anglo American Plc is best positioned to deliver value from their respective restructuring plans.

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Henry’s counterpart at Anglo, Duncan Wanblad, announced on Tuesday that the storied mining company will exit diamond, platinum and coal mining, as it fends off a £34 billion ($43 billion) bid from BHP. The BHP CEO said his company would remain “disciplined” in its pursuit of Anglo.

“Shareholders must decide which plan creates the greatest value, soonest,” Henry said at a mining conference in Miami. “Which team has the better track record of execution.”

Anglo has rejected two offers, saying that BHP’s condition to spin off South African assets before the takeover was unworkable. However, Anglo’s own plan to spin off its Anglo American Platinum Ltd. unit is “a pretty clear indicator that it is doable,” according to Henry, who cited previous spinoffs by both companies.

Read More: Anglo Goes for Bold Breakup Plan in Move to Fend Off BHP

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JOHANNESBURG/ LONDON (Reuters) -BHP Chief Executive Mike Henry said that Anglo American investors need to consider the merits of his company's bid for its smaller London-listed rival, seeking to drum up support for a proposal that has been rejected twice.

The CEO of the world's biggest listed mining group told investors at a metals and mining conference in Miami that Anglo shareholders must make a "determination" on the benefits of a combination of the two companies and which team they think has a better track record of executing projects and delivering returns to investors.

Anglo CEO Duncan Wanblad on Tuesday outlined plans to refocus on energy transition metal copper while spinning off or selling its less profitable coal, nickel, diamond and platinum businesses.

Henry, meanwhile, emphasised the merits of BHP's $43 billion bid and dismissed concerns that the proposed deal would be complex to execute.

"At the end of the day, it's going to be up to shareholders. They have to look at the plans, decide which one they believe is going to create the greatest value soonest," he said.

"And they have to make a determination as to the likelihood of execution of those plans, including which team they believe is more capable and has a better track record of execution. It's that simple."

The Anglo board argues that the proposed deal undervalues the company and is difficult to execute, with BHP planning to demerge two of Anglo's South African assets prior to a takeover.

BHP chief Henry, however, says the company has sufficient experience to execute complex transactions, having divested South32 assets in South Africa.

Henry said he was disappointed with the Anglo board's continued refusal to engage, adding that BHP would have preferred to continue talking in private.

"Our strong preference was to be able to hold these discussions with Anglo in private," Henry said. "Rather unfortunately, it got leaked."

While BHP is intent on growing its copper business, it would maintain its disciplined approach to capital allocation, Henry said, adding that the copper industry remains fragmented.

"We do not take capital discipline lightly, we will remain disciplined and we have demonstrated that in previous instances," he said.

($1 = 0.7953 pounds)

(Reporting by Felix Njini and Clara DeninaEditing by David Goodman)

The mining company raised its first offer after Anglo American said it “significantly undervalues” it.

(Bloomberg) — Anglo American Plc will exit diamond, platinum and coal mining in a massive restructuring designed to fend off a £34 billion ($43 billion) bid from rival BHP Group and turn itself into a copper giant.

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Anglo’s hand was forced by BHP’s approach — which it has twice rejected — but the move also responds to pressure from shareholders to shed less profitable businesses and focus on the copper assets that are the envy of the industry. It leaves a much simpler company — and a potentially more attractive one to suitors.

The radical overhaul laid out by Anglo Chief Executive Officer Duncan Wanblad is to create a company much like the one his rival CEO Mike Henry proposed. As both men have a similar view of where value lies in Anglo’s sprawling empire, shareholders will now have to decide who they believe can best deliver.

Anglo is pinning its hopes on shareholders supporting its plan — and backing management to deliver it, rather than pushing to accept an offer from BHP. Investors see copper as the crown jewel because of its role in the energy transition and today’s move addresses what some of them were calling for. Activists Elliott Investment Management are among Anglo’s shareholders.

“There’s still a debate over whether this really offers shareholders more than BHP’s improved offer,” said Dawid Heyl, a Cape Town-based portfolio manager at Ninety One, a top shareholder. Heyl said that while it was a robust plan it would create a shrunken Anglo that “would be attractive to others as well.”

Anglo’s shares fell 2.5% to £26.38 in London trading, below the £27.53 that BHP is offering, in a sign investors see a lower chance of a successful BHP bid. Amplats, as the platinum business is known, fell as much as 10% in Johannesburg.

It’s now up to BHP to decide how to respond. Two offers have been rejected, though crucially its improved bid didn’t address one of the main obstacles: Anglo said BHP’s condition to spin off South African assets before the takeover was unworkable. Now Anglo is proposing to spin off Amplats, it could bolster BHP’s argument that it can be done.

“The outcome of Anglo’s strategic review will not have changed BHP’s plans, but they are probably actively assessing where they are now in light of this,” said Lachlan Shaw, an analyst from UBS Group AG.

Read More: What’s Anglo Worth? For Now It’s Less than the Sum of Its Parts

Anglo is now set to focus on copper mines and iron ore, its two biggest and most consistent earners and the businesses that BHP is most attracted to. Perhaps controversially, it will also stick with its Woodsmith fertilizer project in the north of England that some investors have pushed for it to quit. Still, it will dramatically cut spending there.

It will demerge or sell its De Beers diamond business, separate its Anglo American Platinum Ltd. unit and sell its coking coal mines in Australia.

The company will also either sell or shutter its relatively small nickel business in Brazil.

The move to dramatically shrink and simplify its business has been years in the making at Anglo, which has always been a hotchpotch of commodities. Yet the approach from BHP served as a catalyst for the company to speed up decisions it’s been sitting on for years.

Getting rid of Amplats and De Beers marks a turnaround from less than a decade ago when Wanblad’s predecessor planned on making them the cornerstones of the business.

Wanblad conceded today however that they are just too volatile. When they are good they are very good, but when they’re bad they drag down the entire company, hitting the returns shareholders get from the commodities they really covet such as copper. And the last year was especially tough for both.

Why BHP Is Targeting Anglo in Mining Mega Deal: QuickTake

De Beers — despite its status as a trophy asset — has looked increasingly out of place within the Anglo stable. The diamond market has become increasing volatile in recent years, whipsawing between boom and bust. The challenges posed by changing consumer habits require more and more spending on things like advertising, an area outside the comfort zone of many mining investors.

It will break the almost 100-year link between the two companies, with Anglo first becoming a major shareholder in 1926. Sovereign wealth funds have in the past expressed interest in the storied diamond producer.

Anglo will also look to exit Amplats, as its platinum unit is called. The business is currently listed in South Africa, with Anglo as a majority owner. Its coking coal business, which lies adjacent to BHP’s mines, will also be sold and Anglo said it has already received approaches.

While Anglo’s new plan has similarities to the one proposed by BHP, Wanblad was keen to point out that they were not completely leaving South Africa. It will keep its Kumba iron ore subsidiary. BHP had wanted Anglo to shed the South African assets before the takeover.

“They make us do the work then off they go,” Wanblad said. “We remain in South Africa, that’s a unique difference between what we and BHP are proposing to do.”

That may have made a difference for South Africa’s government as the new plan has already received a warmer welcome than BHP’s proposal.

Read: South Africa Minister Warms to Anglo Plan After Opposing BHP Bid

Anglo will also slow spending on a $9 billion fertilizer mine in northern England that’s been a focal point for investors and analysts pushing for an overhaul.

The company — which has been spending about $1 billion a year on the giant Woodsmith mine — will cut spending to about $200 million in 2025, and plans to spend nothing on it in 2026. It will also look to bring in one or more strategic partners. Investors are worried the mine will produce a relatively obscure fertilizer product called polyhalite, and Anglo will need to create a huge new global market for it almost from scratch.

–With assistance from Mark Burton and Paul-Alain Hunt.

(Updates with details)

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(Bloomberg) — South Africa’s mines minister struck a conciliatory tone as Anglo American Plc announced plans to separate its platinum unit as part of a major shakeup following its rejection of two approaches from BHP Group.

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“It is their strategy and they must do anything that will optimize value,” Mines Minister Gwede Mantashe said by phone.

That marks a contrast with the senior official’s frostier reaction to rival BHP’s proposal, which involves spinning off both Anglo American Platinum Ltd. and Kumba Iron Ore Ltd. before acquiring the miner’s prized assets outside South Africa.

The platinum unit known as Amplats fell as much as 10% in Johannesburg trading, after Anglo unveiled its restructuring plan on Tuesday.

The upheaval in South Africa’s key mining industry comes at a difficult time for the ruling African National Congress, which risks losing its majority in elections later this month for the first time since coming to power in 1994.

Read more: Anglo To Exit Diamonds and Platinum in Bid To Fend Off BHP

Under the turnaround plan outlined Tuesday by Anglo Chief Executive Officer Duncan Wanblad, the London-listed miner will exit platinum and diamond mines in South Africa, while retaining its Kumba iron ore subsidiary and a stake in a manganese business.

Wanblad said the company would have liked to make its announcement after the South African election and that it was “completely disrespectful” to do so now. Still, he said BHP had forced his hand by making an approach.

Anglo said it will demerge its 79% stake in Amplats “in a responsible and orderly way,” separate or sell its De Beers diamond business and divest its coking coal mines in Australia. The overhaul plans have been accelerated by BHP’s £34 billion ($43 billion) takeover proposal to acquire the 107-year-old firm.

Anglo has long ties to South Africa and was built on the riches of the country’s gold mines before moving into diamonds. In recent decades, however, the company has rapidly accumulated assets overseas including the South American copper mines that are so coveted by BHP.

Read More: BHP CEO Flies to South Africa to Push $39 Billion Takeover

Mantashe had signaled his opposition to BHP’s twice-rebuffed proposal for Anglo to demerge its controlling interests in its South African platinum and iron ore units, telling Bloomberg on April 25 that he “wouldn’t support” the idea.

Amplats – the world’s largest platinum producer – “will survive” as a standalone company, said Mantashe who also chairs the ANC. “It’s leading in the platinum business.”

Shares of Amplats were down 7% as of 11:03 a.m. in Johannesburg.

Anglo’s second-biggest shareholder, South Africa’s Public Investment Corp., will continue to engage with both companies after noting both Anglo’s accelerated strategy and its rejection of BHP’s improved offer, PIC Chairman David Masondo said by email. The PIC manages the pensions of South African government workers.

“The PIC is a long-term investor and any transaction presented will be assessed to ensure value creation for our clients,” said Masondo, who is also South Africa’s deputy finance minister.

The Congress of South African Trade Unions, the country’s biggest federation of labor groups, said it welcomed Anglo’s commitment to the country.

“We need a commitment that whatever changes Anglo plans include the needs of its loyal employees,” Cosatu said in a response to queries. “Anglo’s professed commitment to South Africa is welcome.”

The labor federation has previously said it opposed BHP’s bid.

–With assistance from Thomas Biesheuvel and Antony Sguazzin.

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Anglo American (AAL.L)

Anglo American has announced a group restructuring that includes the sale of several assets to boost its portfolio, a day after rejecting a mega takeover bid from Australian rival BHP (BHP.L).

As part of the split, the miner will divest or demerge its diamond unit De Beers, spin off its platinum-metals subsidiary Anglo American Platinum, and sell its steelmaking coal assets, while exploring options for putting its nickel operation on care and maintenance before divesting it.

The reorganisation will reduce costs by $1.7bn (£1.36bn), it said.

The announcement comes a day after the London-listed miner rejected a sweetened £34bn offer from BHP, saying it continued to significantly undervalue the company and was “highly unattractive” for its shareholders.

“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,” chief executive Duncan Wanblad said.

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Investors still believe that BHP will lift its offer again and possibly add cash before 22 May, the deadline under UK rules to return with a binding offer or walk way.

"The language in the release suggests it's not the best and final offer," Todd Warren, a portfolio manager at Tribeca Investment Partners, told Reuters.

GameStop (GME)

Shares in GameStop, the video game retailer whose popularity among pandemic-era traders helped coin the idea of a meme stock, were surging in pre-market trading after a single post by a social media account named “Roaring Kitty”.

The internet persona, whose real name is Keith Gill, posted a picture on X of a video gamer leaning forward on their chair as if to indicate he’s taking the game seriously, making his first post on the platform since 2021.

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Gill is a day trader whose videos during the meme-stock bubble encouraged millions of others into the market, in turn propelling stocks such as GameStop to record heights.

The tweet was enough to drive a rally in GameStop on Monday which caused losses approaching $1bn for short sellers, according to data from S3 Partners.

With GameStop soaring 74%, short-selling hedge funds suffered a mark-to-market loss of $838m in the brick-and-mortar video game retailer, data firm S3 Partners said.

Vodafone (VOD.L)

Vodafone has reported a 2.2% rise in organic earnings for 2024, meeting market forecasts, after it returned to top-line growth in the final quarter helped by gains in the UK and Germany.

The UK-listed company revealed an 11.3% decline in underlying profits last year to €11bn (£9.5bn) and a 2.5% fall in revenue to €36.7bn (£31.5bn).

It said revenues were hit by the disposals of Vantage Towers, Vodafone Hungary and Vodafone Ghana in the prior financial year and adverse exchange rate movements.

Germany returned to growth with service revenue increasing by 0.2% for the full year and 0.6% for the fourth quarter, the company said, but adjusted core earnings dropped by 5.8% due to higher energy and other inflationary costs.

"Much more still needs to be done in the year ahead," said chief executive Margherita Della Valle.

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Free cash flow fell from €2.6bn to €1.8bn. Net debt, excluding the sold segments of Spain and Italy, was broadly flat at €33.2bn.

Mark Crouch, analyst at eToro, said: "Vodafone investors may have been bracing themselves for another tumultuous earnings report this morning and while this might not have them jumping for joy, there are signs the business has turned a corner."

Greggs (GRG.L)

Greggs reported sales growth of 7.4% as the bakery chain remains on track to open between 140 and 160 new stores in 2024.

The firm reported a 7.4% rise in like-for-like sales for the first 19 weeks of 2024, with total sales in the period hitting £693m.

Greggs added that its new range of iced drinks was “performing well”, with plans to roll it out further from the current 300 shops to up to 700 in the coming months.

Since the start of the year Greggs has opened 64 stores, and closed 37 — including relocations — giving a total of 2,500 shops trading nationwide.

Novavax (NVAX)

Shares of Novavax jumped as much as 50% as Wall Street cheered a new multibillion-dollar deal with French drugmaker Sanofi (SAN.PA) that kicked off a dramatic turnaround for the struggling vaccine maker.

Novavax signed a $1.2bn licensing agreement with Sanofi that includes commercialising a combined COVID-19 and flu shot.

The pharma company reported a first-quarter 2024 loss of $1.05 cents per share while revenues in the quarter came in at $94m, below expectations of $101m. Still, the top line rose 16% on a year-over-year basis.

It recorded $11.5m of revenues from royalties and adjuvant sales to licensing partners compared with the year-ago quarter’s revenues of $1m.

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(Bloomberg) — Pension giant AustralianSuper, BHP Group Ltd’s largest Australian shareholder, said capital discipline was of “utmost importance” for the mining industry as investors weigh the heavyweight’s twice-rebuffed efforts to woo smaller rival Anglo American Plc.

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Luke Smith, the senior portfolio manager who oversees the fund’s Australian mining investments, declined to comment on whether or not it would support a takeover, but confirmed it had engaged “more than once” with BHP.

The world’s biggest miner approached Anglo last month with a proposal aimed squarely at the iron-to-diamond producer’s Latin American copper deposits — only to be swiftly turned down. It has since tabled a sweetened $43 billion all-share bid but maintained a structure that would see Anglo doing much of the heavy lifting on a restructuring before the deal goes through — including spinning off two listed South African businesses.

Anglo rejected the latest approach, arguing the non-binding offer continues to “significantly undervalue” the company and its future prospects, while creating “significant uncertainty” for shareholders. It has now laid out a bold self-help plan that would see it divest diamonds, platinum and coal.

“If part of your strategy is copper then you follow and try and execute on that strategy,” Smith said in an interview in Melbourne. But capital discipline is “of utmost importance, and I think that’s at the forefront of people’s minds when it comes to any consolidation across the commodity landscape,” he said.

BHP has long been clear on its desire to expand in copper, eager to take advantage of rising demand for a metal key for renewable energy installations, expanding grids and electric vehicles. But the mining industry is also emerging from more than a decade of purdah after a string of frenzied, ill-timed and overly expensive acquisitions that burnt billions of investor dollars and left even the largest firms saddled with debt.

“I think we are in a much stronger environment from a capital allocation aspect of the mining industry,” Smith said. “There probably wasn’t the focus then that there is now on capital allocation. And not just from the companies, but from the stakeholders.”

Read More: BHP Seeks to Break Mining’s M&A Curse With Thorny Anglo Deal

Anglo’s shares ended Monday slightly below the value of BHP’s offer, indicating the market is not yet convinced a deal will get done. Still, among the miner’s smaller Australian investors, many said they saw room for maneuver that could yet help BHP clinch its prey.

“Obviously they haven’t got there with a good enough offer yet, so watch this space,” said Matthew Haupt, portfolio manager at Wilson Asset Management in Sydney, who is underweight BHP. “Another 5% to 7.5% bump, with a cleaner structure, could get a deal done.”

Jun Bei Liu at Tribeca Investment Partners in Sydney, also a BHP shareholder, said an increase of another 15% could make the difference and that she expected BHP to try to get there. Any short-term dip in the price as a consequence would be an opportunity to increase exposure.

“They’re not buying for the next couple of years, they’re really looking into the future of the copper shortage,” she said. “Yes, there’s every chance of overpaying and mining companies haven’t had a great record on this, but what they’re saying is that they believe their strategy.”

The company was unlikely to take an openly hostile approach, though.

“It’s a big transaction, which requires a lot of regulatory approval across many jurisdictions. So I just think that being aggressive is going to be very costly,” she said. “There’s a lot more uncertainty with what is already a very complex deal.”

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By Clara Denina and Felix Njini

LONDON (Reuters) -Anglo American laid out plans on Tuesday to refocus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses, as it moves to fend off BHP Group's $43 billion takeover offer.

The announcement comes a day after the London-listed miner rejected its Australian suitor for the second time in less than three weeks, saying an increased proposal continued to significantly undervalue the company.

Anglo said on Tuesday it would divest its steelmaking coal assets, demerge its South African platinum unit, explore options for its nickel mines and divest or demerge diamonds business De Beers. The group expects the new configuration will lower costs by $1.7 billion.

"We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction," Anglo CEO Duncan Wanblad said.

Anglo shares fell 3.2% to close at 26.19 pounds, after trading at the bottom of the London stock market's benchmark index FTSE 100.

Moving to drum up support for his proposal, BHP CEO Mike Henry said on Tuesday it was down to investors to weigh the merits of his company's offer for Anglo, adding he would have preferred to continue talking with Anglo in private.

"Our strong preference was to be able to hold these discussions with Anglo in private," Henry said. "Rather unfortunately, it got leaked."

BHP's 27.53 pound per share approach, raised from an initial 25.08 pounds, would require Anglo to sell its iron ore and platinum assets in South Africa, where it employs more than 40,000 people.

That has caused alarm in South Africa, where unemployment and a stagnant economy are major issues ahead of a May 29 election.

Wanblad said BHP's bid had forced him to accelerate plans for a spin-off of Johannesburg-listed Anglo American Platinum (Amplats).

Under Tuesday's plan, Anglo will keep its South African Kumba Iron Ore business, while Wanblad said the planned divestment of Amplats would be "completely different" in terms of time and complexity to the BHP proposal.

South Africa's mines minister Gwede Mantashe said on Tuesday he had no problem with Anglo's proposal, and that he hoped it would continue to resist BHP's bid.

Anglo is also exploring an initial public offering of its diamond business De Beers, two people familiar with the matter told Reuters on Tuesday, with one flagging London as the preferred venue. Anglo declined to comment.

The company also said on Tuesday it would slow the development of its Woodsmith fertiliser project in northeast England and seek strategic partners. First production at Woodsmith will be pushed back from 2027, Wanblad said.

The divestment of Anglo's steelmaking coal operations could move rapidly, he added, given available interest.

SELF-HELP

Anglo has been meeting investors since BHP's initial approach in April, and after a review of its assets initiated in February following a 94% plunge in annual profit.

One top 20 investor at Anglo, who said a deal with BHP was likely to lead to less copper being produced rather than the increase needed to accelerate the world's energy transition, welcomed Tuesday's proposal.

"At the moment, Anglo has lots of very interesting assets … but it is not a focused business, focused on a clear strategic goal," the shareholder said. "This plan offers clarity of purpose."

MKP Advisers said however that the concern with the "self-help plan" will be that it is "too little, too late".

"There is no timescale attached to most of the plans and it has been clear to most that many of the potential disposals across the portfolio are simply tough to execute," MKP said.

Activist fund Elliott, one of Anglo's top 10 shareholders after building up a $1 billion stake, declined to comment on the plan. It is expected to put out a statement later in the day, sources say.

Developments such as artificial intelligence and automation, and the energy transition that includes electric vehicles and renewable energy, have driven up demand prospects for copper cable used to conduct electricity.

Copper prices have risen 25% from this year's Feb. 9 low to $8,127 a tonne.

Ashwin Pillay, senior associate at law firm Charles Russell Speechlys, said the new plan addressed shareholder concerns that the value of Anglo's copper mines has been suppressed by less valuable operations such as the diamond division.

"Intriguingly, there is still an opportunity for BHP to raise their offer further, including by adding a cash component, which would sweeten the pot," he added.

($1 = 0.7966 pounds)

(Additional reporting by Melanie Burton in Melbourne, Sinead Cruise in London and Eva Mathews; Writing by Jan Harvey; Editing by Nivedita Bhattacharjee, Kirsten Donovan, Sonali Paul, Catherine Evans and Emelia Sithole-Matarise)

*

Anglo expects new structure to lower costs by $1.7 bln

*

Will keep South African Kumba Iron Ore business

*

Says revised BHP offer significantly undervalues Anglo

*

BHP CEO urges Anglo investors to consider takeover benefits

(Updates share prices, adds BHP CEO comment on leaks, paragraphs 5,7)

By Clara Denina and Felix Njini

LONDON, May 14 (Reuters) – Anglo American laid out plans on Tuesday to refocus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses, as it moves to fend off BHP Group's $43 billion takeover offer.

The announcement comes a day after the London-listed miner rejected its Australian suitor for the second time in less than three weeks, saying an increased proposal continued to significantly undervalue the company.

Anglo said on Tuesday it would divest its steelmaking coal assets, demerge its South African platinum unit, explore options for its nickel mines and divest or demerge diamonds business De Beers. The group expects the new configuration will lower costs by $1.7 billion.

"We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction," Anglo CEO Duncan Wanblad said.

Anglo shares fell 3.2% to close at 26.19 pounds, after trading at the bottom of the London stock market's benchmark index FTSE 100.

Moving to drum up support for his proposal, BHP CEO Mike Henry said on Tuesday it was down to investors to weigh the merits of his company's offer for Anglo, adding he would have preferred to continue talking with Anglo in private.

"Our strong preference was to be able to hold these discussions with Anglo in private," Henry said. "Rather unfortunately, it got leaked."

BHP's 27.53 pound per share approach, raised from an initial 25.08 pounds, would require Anglo to sell its iron ore and platinum assets in South Africa, where it employs more than 40,000 people.

That has caused alarm in South Africa, where unemployment and a stagnant economy are major issues ahead of a May 29 election.

Wanblad said BHP's bid had forced him to accelerate plans for a spin-off of Johannesburg-listed Anglo American Platinum (Amplats).

Under Tuesday's plan, Anglo will keep its South African Kumba Iron Ore business, while Wanblad said the planned divestment of Amplats would be "completely different" in terms of time and complexity to the BHP proposal.

South Africa's mines minister Gwede Mantashe said on Tuesday he had no problem with Anglo's proposal, and that he hoped it would continue to resist BHP's bid.

Anglo is also exploring an initial public offering of its diamond business De Beers, two people familiar with the matter told Reuters on Tuesday, with one flagging London as the preferred venue. Anglo declined to comment.

The company also said on Tuesday it would slow the development of its Woodsmith fertiliser project in northeast England and seek strategic partners. First production at Woodsmith will be pushed back from 2027, Wanblad said.

The divestment of Anglo's steelmaking coal operations could move rapidly, he added, given available interest.

SELF-HELP

Anglo has been meeting investors since BHP's initial approach in April, and after a review of its assets initiated in February following a 94% plunge in annual profit.

One top 20 investor at Anglo, who said a deal with BHP was likely to lead to less copper being produced rather than the increase needed to accelerate the world's energy transition, welcomed Tuesday's proposal.

"At the moment, Anglo has lots of very interesting assets … but it is not a focused business, focused on a clear strategic goal," the shareholder said. "This plan offers clarity of purpose."

MKP Advisers said however that the concern with the "self-help plan" will be that it is "too little, too late".

"There is no timescale attached to most of the plans and it has been clear to most that many of the potential disposals across the portfolio are simply tough to execute," MKP said.

Activist fund Elliott, one of Anglo's top 10 shareholders after building up a $1 billion stake, declined to comment on the plan. It is expected to put out a statement later in the day, sources say.

Developments such as artificial intelligence and automation, and the energy transition that includes electric vehicles and renewable energy, have driven up demand prospects for copper cable used to conduct electricity.

Copper prices have risen 25% from this year's Feb. 9 low to $8,127 a tonne.

Ashwin Pillay, senior associate at law firm Charles Russell Speechlys, said the new plan addressed shareholder concerns that the value of Anglo's copper mines has been suppressed by less valuable operations such as the diamond division.

"Intriguingly, there is still an opportunity for BHP to raise their offer further, including by adding a cash component, which would sweeten the pot," he added.

($1 = 0.7966 pounds)

(Additional reporting by Melanie Burton in Melbourne, Sinead Cruise in London and Eva Mathews; Writing by Jan Harvey; Editing by Nivedita Bhattacharjee, Kirsten Donovan, Sonali Paul, Catherine Evans and Emelia Sithole-Matarise)

By Melanie Burton

MELBOURNE (Reuters) – BHP Group is likely to sweeten its $43 billion takeover offer for Anglo American for a second time and possibly add cash, investors in both companies said on Tuesday, after the London-headquartered target rejected a higher bid.

Anglo said the improved all-share offer, up 10% from BHP's initial proposal, continued to significantly undervalue the company.

Shares in BHP were trading 0.5% lower at A$43.03 on Tuesday.

BHP has until May 22 to return with a binding offer or walk away under UK takeover rules. The revised bid again required Anglo to sell its shares in iron ore and platinum assets in South Africa, a structure Anglo says is unattractive.

"The language in the release suggests it's not the best and final offer, said Todd Warren, a portfolio manager at Tribeca Investment Partners, which holds Anglo shares.

Anglo said on Monday it had accelerated plans to deliver its standalone strategy and would update investors on Tuesday.

"The market is waiting with baited breath for the details of Anglo's strategy day. There's not a lot Anglo can do to realise the immediate value that would be daylighted by accepting a BHP bid," Warren said.

BHP CEO Mike Henry is due to present at Bank of America's global mining conference in Miami later on Tuesday.

Several Australian fund managers holding BHP shares spoke to Reuters ahead of his presentation on condition of anonymity because of the sensitivity of the matter.

One BHP investor said it would be reasonable for the miner to add a cash component to get the deal done, though the overall deal structure was complex, which raised risks around Anglo achieving acceptable prices for unwanted assets.

A second BHP investor said he would be surprised if BHP did not come back with another offer, adding that it still had scope to add a cash component.

"The copper is what we like," the investor said. "I think there is investor support broadly for another bid."

Copper prices have climbed 12% in the past six weeks to hit two-year highs on Tuesday above $10,200 a metric ton.

Anglo is attractive to its competitors for its prized copper assets in Chile and Peru, with demand expected to rise as the world moves to cleaner energy and wider use of artificial intelligence will drive power use. Copper is highly efficient at transporting power because of its conductive properties.

Anglo's rejection was disappointing but BHP was in a difficult position given the need to balance a strong run in copper prices and the need to stay financially disciplined, said a third BHP investor.

BHP's latest offer of 27.53 pounds per share, up from an initial 25.08 pounds, would lift Anglo shareholders' aggregate ownership in the combined group to 16.6% from 14.8%. Anglo shares closed 2.4% lower at 27.07 pounds on Monday.

Jefferies analysts said it might need to raise its offer above 30 pounds per share to gain approval from Anglo's board.

"We are just not sure that BHP is prepared to go that high. This latest offer could be final," Jefferies said.

(Reporting by Melanie Burton; Editing by Jamie Freed)

(Bloomberg) — As Anglo American Plc sets out a survival plan that echoes the vision of its suitor BHP Group, the rival mining bosses are now locked in a battle to convince shareholders they are the man for the job.

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Anglo Chief Executive Officer Duncan Wanblad and his BHP counterpart Mike Henry took center stage on Tuesday, as the personalities behind two of the world’s biggest miners came to the fore. Wanblad presented his own radical turnaround plan to investors, before Henry made his first public remarks on BHP’s bid at a conference in Miami.

“We don’t need BHP to deliver this strategy, we absolutely do not need them at all,” Wanblad said in an interview on Tuesday. “We can deliver this.”

BHP wants Anglo to spin off its two listed South African businesses producing iron ore and platinum, before the world’s biggest miner acquires the rest of its assets. Anglo would also separate its Anglo American Platinum Ltd. unit, while exiting diamond mining and selling its coal business. Both CEOs see copper as the crown jewel.

Read More: Anglo Goes for Bold Breakup Plan in Move to Fend Off BHP

Hours after Wanblad made his pitch, BHP’s Henry told the same conference that Anglo’s shareholders must choose between the two management teams.

“Shareholders must decide which plan creates the greatest value, soonest,” Henry said “Which team has the better track record of execution.”

Henry, who has been at the helm of BHP since 2020, has had time to stamp his image on the company. In a series of sweeping reforms, he implemented the biggest shakeup at the company since its creation two decades earlier.

BHP’s $39 Billion Bid for Anglo American Was Years in the Making

But he also inherited a stronger company than Wanblad. In Australia, BHP has some of the most profitable iron ore operations and it also runs the world’s biggest copper mine. It has no exposure to commodities such as platinum and diamonds, which have caused Anglo problems as prices slumped.

Still, there have also been missteps by Henry, such as betting on nickel before the market collapsed and wading into a South African election campaign when his approach for Anglo became public.

Wanblad by contrast has faced a tougher start. While the company he inherited was riding high, buoyed by soaring commodity prices, some of Anglo’s key markets quickly soured, exposing flaws in some of the underlying businesses. That ultimately led Wanblad to launch the root-and-branch review of the business.

Both Henry and Wanblad have been at their respective companies for decades, working their way up to the top job. Canadian Henry is described by those who work with him as incredibly detail driven, making decisions based on cold logic and hard facts. South African Wanblad, like his counterpart at BHP, is described by employees as deeply analytical but with a reputation for being more personable.

The two disagreed on their respective plans for South Africa, which is turning into a key battleground. Henry said Anglo’s own plan to spin off its Amplats platinum business is “a pretty clear indicator that it is doable.”

The “key difference” between the two proposals is that BHP’s plan involves securing simultaneous regulatory approval in South Africa for a pair of demergers and the top-level transaction, Anglo’s Wanblad said in an interview.

Such an “unprecedented” undertaking would be “all potentially at the expense of Anglo shareholders,” he said.

Wanblad, who like Henry is meeting investors in Miami this week, will hope those shareholders back his vision.

“I don’t believe at all that BHP has a better management team than Anglo,” he said. “Our plan will make the company much stronger than we are today, especially at the bottom of cycles.”

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VANCOUVER, BC, May 14, 2024 /CNW/ – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that it has filed its condensed interim consolidated financial statements for the three months ended March 31, 2024 and the corresponding management's discussion and analysis ("MD&A"). Below is a summary of the Company's financial results for the first quarter of 2024 ("Q1 2024") in comparison to the restated period in 2023 ("Restated Q1 2023") (all amounts in USD unless specified):

• Revenue for Q1 2024 decreased to $15.7 million (Restated Q1 2023 – $18.0 million), representing a $2.3 million or -12.9% decrease.

• Mine operating income increased by $1.8 million (or 49.5%) to $5.3 million in Q1 2024 (Restated Q1 2023 – $3.5 million) while gross margin increased from 19.6% in Restated Q1 2023 to 33.7% in Q1 2024.

• Operating loss was $0.03 million in Q1 2024 compared to an operating income of $1.8 million in Restated Q1 2023.

• Net loss attributable to equity shareholders was $0.9 million ($0.00 loss per share) in Q1 2024 versus net loss attributable to equity shareholders of $0.4 million ($0.00 loss per share) in Restated Q1 2023. The decrease in Q1 2024 net income was largely attributable to the increase in overall operating costs associated with the soft restart of the Zandfontein underground operations located at the Crocodile River Mine ("CRM") in South Africa and foreign exchange losses incurred in the period due to the strengthening of the U.S. dollar.

• The Company had a working capital deficit (current assets less current liabilities) of $16.7 million as at March 31, 2024 (December 31, 2023 – working capital deficit of $15.5 million) and short-term cash resources of $20.7 million (consisting of cash, cash equivalents and short-term investments) (December 31, 2023 – $21.3 million)

Wanjin Yang, Chief Executive Officer and President of Eastplats commented, "We are encouraged by the first quarter results despite the challenging PGM market price environment. Our focus is on chrome recoveries from the remaining tailings resource as we approach the end of the retreatment project. We expect to start earning chrome and PGM revenue from the Zandfontein underground section at the CRM in June as we ramp up run-of-mine tonnages."

Prior Period Error – Restatement of Comparatives

Certain 2023 comparative numbers in the condensed interim consolidated financial statements and corresponding MD&A have been restated to correct an error in the condensed interim consolidated financial statements for the three months ended March 31, 2023, that was identified subsequent to the period-end and is discussed below.

As discussed in the previous news release of May 3, 2024, in connection with the preparation of the Company's consolidated financial statements for the year ended December 31, 2023, an error was identified in the recognition of revenue related to a chrome concentrate sales transaction in fourth quarter of 2022 which impacted the Company's previously filed audited consolidated financial statements for the year ended December 31, 2022 and its unaudited condensed interim consolidated financial statements for the three months ended March 31, 2023. Chrome concentrate revenue is recognized when control is transferred to the buyer and payment is considered probable. A sales transaction that was included in deferred revenue at the end of 2022 and recognized as revenue in the first quarter of 2023 should have been recognized in fourth quarter of 2022 based on the fact that the Company had met all of its required performance obligations at the time, as supported by the underlying contract and bill of lading. Previously reported revenue for the first quarter of 2023 was overstated by $4.0 million, with associated errors in production costs, accumulated other comprehensive loss and deficit.

The following table presents the effects of the restatement on the individual line items within the Company's unaudited Condensed Interim Consolidated Statement of Income (Loss), Condensed Interim Statement of Comprehensive Income (Loss) and Condensed Interim Statement of Financial Position, expressed in thousands of U.S. dollars, except for per share amounts. The corrected prior period error had no impact on cash flows.

	Three months ended March 31, 2023
	As previouslyreported	Adjustment	As restated
	$	$	$
Revenue	22,058	(4,021)	18,037
Production costs	(15,360)	2,324	(13,036)
Mine operating income (loss)	5,233	(1,697)	3,536
Operating income (loss)	3,497	(1,697)	1,800
Net income (loss) for the period	1,343	(1,697)	(354)
Net income (loss) attributable to equityshareholders of the Company	1,344	(1,697)	(353)
Earnings (loss) per share, basic and diluted	0.01	(0.01)	0.00
Comprehensive income (loss) for the period	(2,267)	(1,766)	(4,033)

 

	As at March 31, 2023
	As previouslyreported	Adjustment	As restated
	$	$	$
Accumulated other comprehensive loss	(321,406)	(13)	(321,419)
Deficit	(850,900)	13	(850,887)

The Company's audited consolidated financial statements for the year ended December 31, 2023 reflected these changes. The unaudited interim consolidated financial statements and related financial information for the affected period contained in the Company's unaudited interim filings prior to May 13, 2024 should no longer be relied upon.

The Company has a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE Limited.

The Company has filed the following documents, under the Company's profile on SEDAR+ at www.sedarplus.ca:

• Condensed interim consolidated financial statements for the three months ended March 31, 2024; and

• Management's discussion and analysis for the three months ended March 31, 2024.

The condensed interim consolidated financial statements for the three months ended March 31, 2024 are available for download at https://www.eastplats.com/investors/quarterly-reports/F2024/  and are also available on the JSE's website at:

https://senspdf.jse.co.za/documents/2024/JSE/ISSE/EPS/Q124.pdf.

Operations

The Company derived revenue from the processing of PGM and chrome concentrates during Q1 2024 and Q1 2023. Eastplats' majority of revenue (approximately 93% for Q1 2024) is from chrome concentrate sales to third parties.

Summary of chrome production for the three months ended March 31, 2024 and 2023:

	Q1 2024	Q1 2023
Total Tailings Feed (Tons)	385,299	631,954
Average grade Cr  concentrate	38.57 %	38.65 %
Tons of Cr concentrate	79,882	147,090

Summary of PGM production for the three months ended March 31, 2024 and 2023:

	Q1 2024	Q1 2023
Tons of PGMconcentrate	945	1,156
PGM ouncesproduced (6E)*	1,475	2,134

*PGM 6E ounces are estimates until final exchanges and umpire results have been concluded, which can take up to three months.

About Eastern Platinum Limited

Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western limb (Crocodile River Mine) and eastern limb (Kennedy's Vale, Spitzkop, Mareesburg) of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.

Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource from the Barplats Zandfontein tailings dam and mining and processing ore from the Zandfontein underground section to both produce PGM and chrome concentrates.

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation.  Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company.  Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will," "plan," "intends," "may," "could," "expects," "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedarplus.ca.

In particular, this press release contains, without limitation, forward-looking statements pertaining to: expected earnings from chrome and PGM revenue from the Zandfontein underground section at the CRM in June 2024 and ramping-up the Zandfontein underground operations. These forward-looking statements are based on assumptions made by and information currently available to the Company.  Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in the Company's production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

All forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedarplus.ca. The forward-looking statements in this news release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

SOURCE Eastern Platinum Ltd.

Cision

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/14/c1587.html

(Adds details from speech, acquisition comments)

By Divya Rajagopal

May 14 (Reuters) – Teck Resources Ltd expects to generate annual earnings before interest, depreciation, tax and amortization (EBITDA) of $3 billion if copper prices hit $5 per pound, CEO Jonathan Price said on Tuesday.

For Vancouver, Canada-based Teck, copper is the main driver of profitability after it sold its steel-making coal business to a consortium of buyers led by Swiss miner Glencore for $8.9 billion last year.

Price, speaking at the Bank of America Metals, Mining and Steels conference in Miami, gave a range of predictions for Teck's annual EBITDA at different copper prices, the lowest being $2 billion if copper trades at $4 per pound.

U.S. copper prices

on the CME hit a record peak on Tuesday, with the Comex May contract hitting a high of $5.082 a lb, fueled by robust demand in the United States and fund buying.

The red metal has been in focus after mining giant

BHP's $37 billion offer to buy out rival Anglo American. Analysts have been nudging Teck to explore acquisition options because it is flush with cash from the sale of steel-making business.

But Price said Teck is focused on executing its existing projects when asked whether the company would acquire any copper assets.

"I know there's a lot of discussion in the industry about buy versus build," Price said." And I think when people are looking at projects with capital intensities above $30,000 per ton, perhaps buying capacity makes more sense."

Several industry estimates suggest the cost of building a new copper mine today is around $44,000 per tonne.

(Reporting by Divya Rajagopal; editing by Jonathan Oatis and Leslie Adler)

By Divya Rajagopal

(Reuters) -Teck Resources Ltd expects to generate annual earnings before interest, depreciation, tax and amortization (EBITDA) of $3 billion if copper prices hit $5 per pound, CEO Jonathan Price said on Tuesday.

For Vancouver, Canada-based Teck, copper is the main driver of profitability after it sold its steel-making coal business to a consortium of buyers led by Swiss miner Glencore for $8.9 billion last year.

Price, speaking at the Bank of America Metals, Mining and Steels conference in Miami, gave a range of predictions for Teck's annual EBITDA at different copper prices, the lowest being $2 billion if copper trades at $4 per pound.

U.S. copper prices on the CME hit a record peak on Tuesday, with the Comex May contract hitting a high of $5.082 a lb, fueled by robust demand in the United States and fund buying.

The red metal has been in focus after mining giant BHP's $37 billion offer to buy out rival Anglo American. Analysts have been nudging Teck to explore acquisition options because it is flush with cash from the sale of steel-making business.

But Price said Teck is focused on executing its existing projects when asked whether the company would acquire any copper assets.

"I know there's a lot of discussion in the industry about buy versus build," Price said." And I think when people are looking at projects with capital intensities above $30,000 per ton, perhaps buying capacity makes more sense."

Several industry estimates suggest the cost of building a new copper mine today is around $44,000 per tonne.

(Reporting by Divya Rajagopal; editing by Jonathan Oatis and Leslie Adler)

Forsys Metals Corp

TORONTO, May 14, 2024 (GLOBE NEWSWIRE) — Forsys Metals Corp. (TSX: FSY) (FSE: F2T) (NSX: FSY) (“Forsys” or the “Company”)

Forsys is pleased to provide an update for the Company’s Norasa Uranium project (“Norasa1”) which comprises the deposits of Valencia Main and East, (“Valencia”), under Mining Licence (ML-149) and Namibplaas (“Namibplaas”) under EPL-3638, (ML-251 pending).

Highlights

Forsys has undertaken a comprehensive review and update of all of the parameters for a Mineral Resource Estimate (“MRE”) for the Norasa project using recent drill results together with the 2005-2011 previous MRE data. Confirmatory and geotechnical drilling, in conjunction with new survey information, including topographic surveys, down-the-hole optical televiewer surveys, trajectory surveys, and downhole gamma probe surveys, were used as inputs for mineral resource modelling. Re-interpretation of the previous database utilising all available data and modern estimation approaches has improved the definition of the MRE to more confidently support mine planning. This study, enhanced by an integrated and expanded drill program targeting existing and new areas together with a robust work plan of optimisation process testing and modelling, will help reinforce the upside potential of the Norasa project.

• For the overall Norasa project, a conceptual pit constrained MRE for total deposits assessed from previous (2005-2011) and 2023 drilling results is estimated to be:

  • Valencia Main Measured and Indicated Resource at 40 ppm U3O8 cutoff is estimated to be 152 Mt at 136 ppm eU3O8 (equivalent U3O8). Measured and Indicated contained metal is estimated at 45 Mlbs U3O8, at 40 ppm U3O8 cutoff.

  • Valencia Main and East Inferred Resources are estimated at 5.7 Mt at 120 ppm eU3O8 with 1.3 Mlbs U3O8 contained metal oxide, at 40 ppm U3O8 cutoff.

  • Namibplaas Inferred Resources are estimated to be 218.7 Mt at 85 ppm eU3O8 with 41.1 Mlbs U3O8 contained metal oxide, at 40 ppm U3O8 cutoff.

Pine van Wyk, Country Director for Forsys commented: “The comprehensive work done over the last twelve months on the Norasa Uranium Project has created a solid foundation to advance project development.  The revised mineral resource model will help optimise the mine economics and process parameters. Results are expected soon from a column leaching test program currently being undertaken at SGS Laboratories in South Africa, which would establish the design basis of the planned heap leaching pads.  With the existing ML149 permitted to commence mining, the large scale Norasa project is well advanced to take advantage of the strong uranium sector fundamentals.”

Mineral ResourcesResults are reported from recent remodelling of historical (2005-2011) drilling and recent 2023 drilling results. The Mineral Resources are reported within US$120/lb U3O8 pit shells, with a cut-off grade of 40 ppm U3O8 for each of the deposits at Valencia Main and East, (“Valencia”), under Mining Licence (ML-149) and US$120/lb U3O8 at 40 ppm U3O8 cutoff at Namibplaas (“Namibplaas”) under EPL-3638. The MRE are summarised as follows:

For the overall Norasa project, a conceptual open-pit shell constrained MRE for total deposits assessed from previous (2005-2011) and recent (2023) drilling results is estimated to be Measured and Indicated of 151.9 Mt at 136 ppm eU3O8, with contained metal oxide of 45.4 Mlbs U3O8 at Valencia Main. Inferred Resources for the Norasa project are estimated to be 224.5 Mt at 86 ppm eU3O8, with contained metal oxide of 42.6 Mlbs U3O8 (refer to Table 1):

• Measured and Indicated: 151.9 Mt at 136ppm eU3O8, with contained metal oxide of 45.4 Mlbs for Valencia Main.

• Inferred Resource for Valencia Main is estimated to be 4.7 Mt at 121 ppm eU3O8 and 1.3 Mlbs eU3O8 contained metal oxide.

• Inferred Resource for Valencia East is estimated to be 1.0 Mt at 114 ppm eU3O8 and 0.3 Mlbs U3O8 contained metal oxide; and

• Inferred Resource for Namibplaas is estimated to be 218.7 Mt at 85 ppm eU3O8 and 41.1 Mlbs U3O8 contained metal oxide.

Table 1: Mineral Resource Estimate for Norasa project as at 30 April 2024 at a 40 ppm U3O8 cut-off grade.

Class	Deposit	Mass Mt (metric)	Average Grade eU3O8 (ppm)	Material Content U3O8 Mlbs	Contained Metal U tonnes
Measured	Valencia East
	Valencia Main	7.6	171	2.9	1,099
	Namibplaas
	Norasa	7.6	171	2.9	1,099
Indicated	Valencia East
	Valencia Main	144.3	134	42.6	16,368
	Namibplaas
	Norasa	144.3	134	42.6	16,368
Measured & Indicated	Valencia East
	Valencia Main	151.9	136	45.4	17,467
	Namibplaas
	Norasa	151.9	136	45.4	17,467
Inferred	Valencia East	1.0	114	0.3	97
	Valencia Main	4.7	121	1.3	487
	Namibplaas	218.7	85	41.1	15,817
	Norasa	224.5	86	42.6	16,401

Notes:
1.	All tabulated data have been rounded and as a result minor computational errors may occur.
2.	Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
3.	The Mineral Resource Statement for Norasa as at 30th April 2024 is reported at a cut-off grade of 40ppm U3O8 from within a conceptual pit-shell using the following assumed parameters: Base Uranium Price –USD/lb U3O8: $120 Average Mining Cost at reference elevation (AISC) USD/tonne: Valencia Main $2.38; Valencia East $2.13; Namibplaas $2.29” Average Processing Cost USD/tonne processed: $7.55 Average G&A Overheads USD/tonne processed: $1.04 Process Overall Recovery % U3O8 Recovery: 85.0 % Selling Cost Transport USD/lb U3O8: $1.29
4.	From the assumed parameters, a 40 ppm U3O8 cut-off grade was calculated, which together with the conceptual pit shell demonstrates reasonable prospects for eventual economic extraction (RPEEE) for the Mineral Resource. The assessment to satisfy the criteria of RPEEE is a high-level estimate and is not an attempt to estimate Mineral Reserves.

Mineral Resource Estimation Methodology

A summary of the Mineral Resource modelling methodology is as follows:

• The Mineral Resource was modelled using a combination of Leapfrog Geo® and Datamine Studio RM® software.

• Valencia Main and East data:

  • Comprise a combined dataset of 141 diamond (DD), 148 reverse circulation (RC) and 446 percussion (PC) type drill holes (Figure 1).

  • Borehole data from Valencia Main and East with XRF assay and calculated equivalent grades (eU3O8) from gamma-probing for each of the deposits have been used to estimate the Mineral Resource.

  • Equivalent uranium grades have been factored to correlate practically well with the XRF data, which constitutes 25 % of the grade data.

  • Where XRF data are available these supercede the corresponding probe equivalent grade in the estimation data.

• Namibplaas data:

  • Comprise a dataset of 530 percussion holes and 40 diamond drill holes (Figure 2).

  • Borehole data from Namibplaas XRF assay and calculated equivalent grades (eU3O8) have been used to estimate the Inferred Mineral Resource.

  • Equivalent uranium grades constitute the majority of the grade data and where XRF data are available, ~3.5 % of all grade data, these supercede the probe derived values.

• Wireframe interpretations of the logged lithologies were used to define the various geological units.

• Mineralisation is strongly associated with alaskite intrusions, that are in turn controlled by a structural architecture that comprises folded and planar strata surfaces, and fold-associated shears and cleavages. Importantly, the orientation of marble strata is a major control on the distribution of uranium mineralisation for REDOX chemistry reasons, at Valencia and the Erongo region alaskite deposits as whole. The alaskite orientations are therefore strataform, except where they have invaded sheared and strongly cleaved antiformal hinge zones, as at Valencia Main. In order to honour the geological controls in the estimates various surfaces were modelled:

  • String interpretations of the “stratiform” intrusions were digitised in cross-section and were used to create median surfaces for each of the intrusions.

  • The resulting mineralised zone wireframes align with the lithological strata while also cross-cutting the strata in places to accommodate axial-planar mineralisation orientations (see Figure 3).

  • The surfaces were then used to guide the orientation of the grade estimate through interpolation of individual dip and dip directions for each model block.

• The geometry of the Namibplaas deposit comprises stratiform lithologies that dip toward the southwest. The alaskite intrusives have intruded in a strataform manner and have exploited disruptions in the overall fabric, such as local fold flexures and dilation zones associated with the NE-SW regional extensional setting. In order to honour the geological controls at Namibplaas in the estimates various surfaces were modelled with guidance from the directions of greatest structural continuity to guide implicit modelling:

  • Along the strike and dip direction of the host metasediments, and

  • Along a shallow-plunging hinge structure that is oriented to the NE, parallel to the regional extension regime.

  • Considering that mineralization at Namibplaas is strongly associated with the granitic intrusions, string interpretations of the mid-points of these “stratiform” intrusions were digitized in cross-section, thereafter linked to create median surfaces of each of the alaskite intrusions (see Figure 4).

  • The surfaces of the intrusions were then used to guide the orientation of the grade estimate through interpolation of individual dip and dip directions for each model block.

• Grade shells using a 40 ppm U3O8 threshold were constructed using Leapfrog® implicit modelling with directional control surfaces from the geological model.

• The model volumes were divided into four domains at Valencia Main and two domains at Namibplaas. Each domain is distinct in terms of its geographic/geometric position as well as statistical / geostatistical parameters.

• Ordinary kriging estimation used three-dimensional directional variograms to estimate U3O8 grades within the mineralised zones for Valencia Main and Namibplaas. Inverse distance squared interpolation was used for Valancia East. The models underwent validation by comparison of estimated grade values against input sample grades, both visually and statistically.

• Volumes covered by 30 m drill-spacing were classified as Indicated Mineral Resources at Valencia. All blocks outside of these volumes within the grade shells that received a grade estimate during the interpolation runs were considered Inferred.

• At Namibplaas, although the tight drill spacing of approximately 30 m provides dense coverage of the deposit, the predominance of probe-derived eU3O8 assays warrants a confidence level for an Inferred Resource.

                

30 April 2024 MRE block model and US$120/lb U3O8 pit shells at Valencia Main and Valencia East, ML 149.

Figure 1: 30 April 2024 MRE block model and US$120/lb U3O8 pit shells at Valencia Main and Valencia East, ML 149.

30 April 2024 MRE block model and US$120/lb U3O8 pit shells at Namibplaas, EPL 3638.

Figure 2: 30 April 2024 MRE block model and US$120/lb U3O8 pit shells at Namibplaas, EPL 3638.

Figure 3 part 1.

 

Figure 3 part 2

Figure 3:  Shows the stacked concordant surfaces generated parallel to the 3 marble bands and orientation of mineralisation aligned with the strata and axial planar cleavages in the fold hinge (guiding surfaces hidden) at Valencia.

Shows alaskite midpoint strings (yellow) linked in parallel to the the NE-SW oriented strike of the deposit.

Figure 4:  Shows alaskite midpoint strings (yellow) linked in parallel to the the NE-SW oriented strike of the deposit.

In accordance with National Instrument 43-101 (“NI 43-101”) a Technical Report outlining the mineral resource estimation will be filed under Forsys’ profile on SEDAR+ (www.sedarplus.ca) within 45 days of the date of this release.

Assaying and QAQC

• Recent (2023) Sampling and Assays

  • Samples were taken from the diamond drill cores and RC chips for geochemical assay guided by the routine downhole radiometric probe results, and sent to Trace Elements Analysis Laboratories (Pty) Ltd (“TEA Labs”) at Swakopmund for sample preparation and analyses by XRF. For internal quality control purposes TEA Labs has weekly round robins with independent laboratories at Rosh Pinah, Swakop Uranium and Langer Heinrich mines.

  • Forsys employs a QAQC programme with Certified Reference Materials (CRMs), blanks, coarse duplicates and pulp duplicates inserted into each batch of samples. The QAQC insert rate comprises 4 % CRMs using three CRM types with different grades of U3O8; 4 % blanks and 8 % to 10 % duplicates. RC sample batches have three types of duplicates; a field duplicate split at the drill rig; a coarse duplicate split at prescribed intervals at the laboratory; and pulp duplicates, also split at the laboratory. Core samples only have coarse and pulp duplicates split at the laboratory.

  • Four-percent of the samples sent to TEA Labs are sent for check analyses at SGS Laboratories (SGS) in South Africa, which serves as the independent accredited laboratory. The sample results are further validated by comparison with the radiometric scans.

• Previous Sampling and Assays (2005-2011 Valencia Uranium Limited (VUL)):

  • All diamond drill half core and RC samples collected by VUL were assayed at the Setpoint Technology (“Setpoint”) laboratory in Johannesburg, South Africa. Setpoint was accredited with the South African Accreditation System (SANAS), accreditation number T0223, and was also an ISO17025 accredited laboratory. Setpoint crushed and pulverised the samples for analysis of U3O8 using the XRF pressed pellet method.

  • The VUL protocols for the QAQC were as follows:

    • CRMs inserted at a frequency of at least one per 20 samples.

    • Blanks inserted at a frequency of at least one per 50 samples.

    • Duplicates taken at a frequency of at least one per 20 samples.

  • The Setpoint laboratory included appropriate quality assurance and quality control (QAQC) procedures during the analysis of the VUL samples by including its own certified reference standards (CRM), blanks and duplicates.

  • VUL percussion holes were not physically sampled. Datasets were derived from two downhole probes that were calibrated against the XRF sample assays.

  • Snowden reviewed the assay results from Setpoint for the Valencia deposits in 20092 for the purposes of resource estimation and considered the QAQC results to be of a high standard of precision, unbiased and accurate.

  • Optiro reviewed the assay results from Setpoint for the Namibplaas deposit in 2011 and considered that the results of the QAQC indicate a high level of precision with no bias, no significant contamination and a high degree of accuracy (from Snowden 20092 and Optiro 20113)

• Trekkopje Exploration (Goldfields 1974-1984):

  • Exploration data derived from Trekkopje Exploration era, up to and including 1984, have not been verified by the QP and therefore were not utilised in this Mineral Resource Estimate.

Workplan

Forsys is undertaking an infill and extension drilling program and optimisation work with the aim of expanding and upgrading the Mineral Resource:

Resource Infill Drilling and Resource Extension DrillingTotal of 85 percussion drill holes for 7,520 metres have been laid out on a 25 x 25 metre grid. The objective is to more than double the quantity of the Measured Mineral Resource. The holes target the 660 m elevation with drill depths up to 100 m from surface and is comparable to the previous Measured Resource grid.A subsequent program for potential resource extension is planned for the areas adjacent to the Valencia Main deposit; along strike to the west, on the hinge zone to the south, and north of the Main deposit at the Jolie Zone.

Pit Design ModelingThe updated resource block model is used to assess open pit economic models. Pit slope design parameters are being reviewed to include lithological logging and geomechanical test work from additional drilling.

Column Leaching Process Optimization WorkColumn Leach tests are presently underway at SGS in South Africa where the columns have been emptied and final analyses and data is pending. The next phase of testing will assess systematic processes to enhance the efficiency and effectiveness of extracting the uranium mineralisation from the ore using sulphuric acid solutions.

Process DesignDRA Global were appointed as the study contractor to deliver engineering to support preliminary cost estimates for a heap leach process. Ongoing engineering and optimisation continues.

Bulk SamplingAfter site assessment and selection, a detailed plan is being drawn up to develop a box cut with the objective of retrieving approximately 20,000 tonnes of typical run-of-mine, fresh and representative sample material from the deposit.

Qualified Persons Statement for Metallurgy  Mr Aveshan Naidoo is a Specialist Engineer: Hydromet and Economics, for DRA South Africa Projects (Pty) Ltd of Building 33, Woodlands Office Park, 20 Woodlands Drive, Woodlands, Sandton, 2080. He holds a Bachelor of Science in Chemical Engineering and a Master of Business Administration at the University of Witwatersrand. He is a registered Professional Engineer with the Engineering Council of South Africa (Registration No. 20130523). Mr Naidoo has been practising his profession continuously since 2008 and has 16 years of experience across a range of African projects. He is familiar with NI 43-101 and, by reason of his education, experience, and professional registrations, he fulfils the requirements of an independent Qualified Person as defined in NI 43-101.

Qualified Persons Statement for Mineral Resource The information in this release that relates to the updated Mineral Resource Estimate for the Norasa Project is based on information compiled or reviewed by Dr Guy Freemantle of The MSA Group (Pty) Ltd., Johannesburg, South Africa. The MSA Group are independent consultants to the Norasa Project, Namibia.  Dr Freemantle holds a Bachelor of Science in Geology and a PhD in Geology, both at the University of the Witwatersrand. He is a member of the Society of Economic Geologists (892905); a Fellow of the Geological Society of South Africa (965392); and is registered with SACNASP (Registration 117527). Dr Freemantle has practiced his profession continuously for 14 years and has sufficient experience and knowledge that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being undertaken to fulfil requirements of a Qualified Person as per NI 43-101. Dr Freemantle consents to this release in the form and context in which it appears.

About Forsys Metals Corp.

Forsys Metals Corp. (TSX: FSY, FSE: F2T, NSX: FSY) is an emerging uranium developer focused on advancing its wholly-owned Norasa Uranium Project, located in the politically friendly jurisdiction of Namibia, Africa. The Norasa Uranium Project is comprised of the Valencia Uranium deposit (ML-149) and the nearby Namibplaas Uranium deposit (EPL-3638). Further information is available at the Company website www.forsysmetals.com

On behalf of the Board of Directors of Forsys Metals Corp. Richard Parkhouse, Director, Investor Relations.  For additional information please contact:

Pine van Wyk, Country Director, Forsysemail: pine@forsysmetals.com

Richard Parkhouse, Director, Investor Relationsemail: rparkhouse@forsysmetals.com   email:  info@forsysmetals.comphone : +44 7730493432

Nikolas Matysek,  Communications Manager (Canada)email: nmatysek@forsysmetals.com

Forward Looking Statement

Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar+.com. The forward-looking statements included in this press release are made as of the date of this press release and Forsys Metals Corp disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

1 The Norasa Uranium Project (“Norasa”) is wholly-owned by the Company’s 100% subsidiary Valencia Uranium (Pty) Ltd. (“Valencia Uranium”) and comprises the Valencia uranium deposits (held under ML-149) ("Valencia”) and the Namibplaas uranium deposit (under EPL-3638, application for ML-251) (“Nambiplaas”), located in the Erongo region of Namibia,2 Valencia Uranium (Pty) Ltd. Valencia Project Namibia Technical Report, Snowden, 2009.3 Forsys Metals Corp. Technical Report on the Namibplaas Deposit, Namibia, Optiro, 2011

Photos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/2016b8e9-e68f-483e-822b-1424733835e1https://www.globenewswire.com/NewsRoom/AttachmentNg/f1685ef1-81f0-4936-a3e8-074025530934https://www.globenewswire.com/NewsRoom/AttachmentNg/09bf2f9e-0ec3-4b95-ac2b-7d8c5269f43bhttps://www.globenewswire.com/NewsRoom/AttachmentNg/7103e818-7dd1-42aa-abe6-d85e3ff8d22bhttps://www.globenewswire.com/NewsRoom/AttachmentNg/97832d3f-51e4-413f-94c3-52d8e0b1d136

Anglo American has rejected a second takeover offer from Australian mining rival BHP and promised to set-out a new plan for growth to convince shareholders to back its future as an independent business.

The FTSE 100 mining group on Monday said it had rejected an improved £34bn takeover offer from BHP.

The second bid was priced at £27.53 per share, 9.7pc higher than the £25.08 a share approach rejected last month.

However, Anglo said the latest offer still “significantly undervalues” the group.

Duncan Wanblad, Anglo chief executive, and chairman Stuart Chambers promised to unveil a new strategy on Tuesday in a bid to convince shareholders to reject the continued takeover advances. Shareholders had complained about the slow pace of the group’s review.

Mr Chambers said the new plan would focus on “delivering against its strategic priorities of operational excellence, portfolio simplification and growth”

It has sparked speculation that Anglo American could spin-off divisions including its planned fertiliser mine in Yorkshire.

Deutsche Bank analysts said Anglo could simplify its sprawling empire by fully or partially selling luxury diamond brand De Beers and its fledgling polyhalite mine Woodsmith in North Yorkshire.

The outcome of the review will be closely watched by politicians in both the UK and South Africa because of the number of jobs tied to Anglo’s mining assets.

In the UK, Tory MP Sir Robert Goodwill has said he will seek assurances over the future of Woodsmith if the site changes hands.

Sir Robert, whose Scarborough and Whitby constituency is home to the project, told The Telegraph last month that mothballing the site was not an option because of its advanced state of development.

Analysts have suggested that Anglo American could simplify its structure by selling its Woodsmith site in North Yorkshire

Anglo’s mining commitment to South Africa is also particularly sensitive given how many local workers rely on the company. Upcoming South African elections on May 29 will further heightened scrutiny of Anglo’s plans.

Mr Chambers promised to “unlock value” at the group in light of the fresh BHP approach.

Management are seeking to bolster the case for keeping Anglo independent amid expectations that BHP may yet return with a third bid. The Australian company has until May 22 to make a final binding bid.

Other potential suitors such as Glencore and Rio Tino have all studied the possibility of making rival offers, according to reports.

BHP chief executive Mike Henry said: “BHP put forward a revised proposal to the Anglo American board that we strongly believe would be a win-win for BHP and Anglo American shareholders. We are disappointed that this second proposal has been rejected.”

Mr Henry’s offer involves a complex two-step process whereby Anglo shareholders would first receive shares in its subsidiaries Anglo American Platinum, known as Amplats, and Kumba Iron Ore. Both are listed on the South African stock market.

After this demeger is completed, Anglo investors would then swap each share they own for 0.8132 BHP shares.

It means investors would swap UK-listed Anglo shares for three separate non-UK listed shares: BHP, Amplats and Kumba.

Anglo’s UK shareholders have previously criticised the takeover structure as unappealing.

BHP offer is all stock. A cash element may prove more appealing to Anglo shareholders.

Liberum analysts said: “Given the emphatic ‘no’ from Anglo American’s board on accepting execution risk of demergers pre-deal, it’s no surprise BHP’s revised offer was rejected.

“Clearly, a successful bid probably requires a much higher premium – one that BHP is probably unwilling to pay.”

By Clara Denina

LONDON (Reuters) -Anglo American rejected a raised takeover offer of 34 billion pounds ($42.67 billion) from BHP Group on Monday, saying the world's largest listed miner "continues to significantly undervalue" the company.

The London-listed miner had earlier rebuffed BHP's initial $39 billion all-share proposal made on April 25, dismissing it as opportunistic and saying it would dilute the upside value for its shareholders relative to BHP's.

"The latest proposal from BHP again fails to recognise the value inherent in Anglo American," Chairman Stuart Chambers said on Monday.

The new offer, made on May 7, was 10% higher than the first, or a 15% increase in the merger exchange ratio to lift Anglo American shareholders' aggregate ownership in the combined group to 16.6% from 14.8%.

"We are disappointed that this second proposal has been rejected," BHP CEO Mike Henry said in a statement.

"BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders."

The revised bid again required Anglo to sell its shares in iron ore and platinum assets in South Africa, a structure Anglo says is unattractive.

"The BHP proposal … leaves Anglo American, its shareholders and stakeholders, disproportionately at risk from the substantial uncertainty and execution risk created by the proposed inter-conditional execution of two demergers and a takeover," Chambers said.

Anglo shares closed down 2.3% at 27.07 pounds, while BHP shares closed up 0.8% at A$43.25 before the announcement.

Anglo is attractive to its competitors for its prized copper assets in Chile and Peru with demand expected to rise as the world moves to cleaner energy and wider use of artificial intelligence.

Its portfolio also includes platinum, iron ore, steelmaking coal, diamonds and a fertiliser project.

"We estimate that if Anglo divested its iron ore, diamonds, manganese and PGM portfolio, the remaining entity would have a c.70% exposure to copper," RBC Capital Markets analysts said in a note.

"Adding our forecasts for the potential divestments, we calculate 31 pounds per share could be realised, 13% higher than today's revised offer."

BHP had offered Anglo American shareholders 27.53 pounds per share, up from 25.08 previously. It has until May 22 to log a binding offer.

Both Anglo and BHP have been meeting investors since April's initial approach, which followed a review of all of Anglo's assets initiated in February in response to a 94% plunge in annual profit and writedowns at its diamond and nickel operations.

"Anglo has been trying to restructure for a long time and hasn't really achieved many of its own goals…There's no natural bigger party to come over and pay more for Anglo…they would struggle to find anyone better to do the deal with," said Daniel Sullivan, portfolio manager at Janus Henderson Investors.

Anglo's investors are concerned that they stand to lose heavily by holding shares in the South African subsidiaries if they are spun out. BHP said their new proposal would bear the costs of the unbundling.

"I'm intrigued why BHP are so obsessed with maintaining the original structure when it was flagged by many as an obstacle to the deal," said Nicholas Stein, a portfolio manager at Coronation Fund Managers, a top-20 investor in Anglo.

Anglo in March picked investment bank RBC Capital Markets to begin a syndication process for its costly Woodsmith fertiliser project in northeast England, two sources previously said.

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

The company said on Monday it had accelerated plans to deliver its standalone strategy and would update investors on them on Tuesday.

The mining sector has seen a jump in M&A activity recently, with a total deal value of $26.4 billion in 2023, S&P Global Market Intelligence data shows.

"The big miners all benchmark themselves to each other. They will be taking a keen interest," said SP Angel analyst John Meyer.

($1 = 0.7968 pounds)

(Reporting by Clara Denina, Felix Njini, Pratima Desai, Eva Mathews; editing by Veronica Brown, Bernadette Baum, Catherine Evans and Jason Neely)