• Adjusted EBITDA: $2.5 billion

• Operating Cash Flows: $1.9 billion

• Average Copper Price: $3.94 per pound

• Capital Expenditures: $800 million (excluding $0.5 billion for Indonesian smelter project)

• Net Debt: Reduced during the quarter

• Net Unit Cash Costs: Better than forecast, with a net credit of $0.12 per pound in Indonesia

• Copper Sales: Exceeded guidance for Q1

• Gold Sales: In line with estimates

• Warning! GuruFocus has detected 5 Warning Signs with HXL.

Release Date: April 23, 2024

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

Q & A Highlights

Q: Liam Fitzpatrick from Deutsche Bank. The first question is just on your U.S. assets. You’ve been talking about for some time, the productivity improvements that you’re targeting. Could you give us a bit more color on when we should expect some of this to be visible in the numbers? And what sort of change are you hoping for? Is this just to do better than inflation? Or could there be more of a step change at some stage? A: Kathleen Lynne Quirk – Freeport-McMoRan Inc. – President & Director: In terms of the U.S. operations, what we’re faced with right now is very low ore grades. The lowest ore grades we’ve had in — since 2010. So that is structurally a challenge for us. Over the last couple of years, we’ve also been dealing with labor shortages in the U.S. and needing to make sure that our people are trained and can gain the efficiencies that we’ve had in 2019 before COVID.

Q: Christopher LaFemina – Jefferies LLC, Research Division – Senior Equity Research Analyst: First, I just wanted to say congratulations on the operating performance in Indonesia. That has been very impressive. And once again, this past quarter, pretty incredible what you’ve done there. So congrats on that. And then secondly, I just wanted to ask a follow-up on the trends in cost in the U.S. So if you did, what, 51 million pounds of leach — production from that new leaching initiatives in the U.S. in the first quarter. And if we assume that’s around $1 a pound, that would imply that the rest of your production in the U.S. is around $3.35, $3.40 a pound for net cash cost. And then if we add to that sustaining CapEx, it’s probably something close to $4 a pound free cash flow breakeven. So my first question is, is that right? Are you at around $4 a pound free cash flow breakeven in the U.S. if you exclude the benefit of the new leaching initiatives? A: Kathleen Lynne Quirk – Freeport-McMoRan Inc. – President & Director: In terms of the leaching initiatives, when you look at our reported cash costs, you have to consider that until we add additional pounds to the stockpiles. What we’re recording as our average cost is reflective of our average cost of per unit and stockpiles. So as we gain more confidence, the denominator will drop, so we’re pulling those pounds out now out of the stockpiles are reflecting like a $3 average cost. When in reality, the incremental cost is closer to $1.

Q: Michael Stephan Dudas – Vertical Research Partners, LLC – Partner: I think you mentioned in response to the question about operating costs and cost moderation. So maybe you can touch a little bit more on what you’re seeing on the ground more specifically in your North America and South American mines on cost improvement, what your expectations are versus what it might have been a few months ago? A: Kathleen Lynne Quirk – Freeport-McMoRan Inc. – President & Director: Yes. I think those issues have moderated a bunch, and we’re getting more into a stable situation, while it’s higher than it has been. It is more stable. For instance, when we were going out for bids for things a year or two ago, you might get one bidder on a project. And now things are opening up some more for us. So on that part, I think it’s stabilized now. We’ll continue to test it.

Q: Bennett Moore – JPMorgan Chase & Co, Research Division – Analyst: It’s actually Bennett on for Bill, this morning. If I could, I wanted to ask what, if any, is the company’s current dialogue with the new leadership in Indonesia and how you see that relationship developing over time? A: Kathleen Lynne Quirk – Freeport-McMoRan Inc. – President & Director: Well, the transition doesn’t take place until October. And we’re continuing to work with the existing administration. We’ve got some matters that we’re working together on with respect to the concentrate license that we talked about earlier as well as the IUPK extension and so we’re continuing to work with the current administration on these matters.

Q: Lawson Winder – BofA Securities, Research Division – VP & Research Analyst: Maybe just on Cerro Verde, if I could. Is there still a pathway to consistently exceeding well over 400,000 tons per day at that asset? A: Kathleen Lynne Quirk – Freeport-McMoRan Inc. – President & Director: Absolutely.

Q: Martin Whittier Malloy – Johnson Rice & Company, L.L.C., Research Division – Director of Research: I wanted to ask, with your leaching technology, does that give you a competitive advantage and maybe looking at acquisition opportunities? A: Kathleen Lynne Quirk – Freeport-McMoRan Inc. – President & Director: Well, we’re focused on — I mean, we’ve got almost 40 billion pounds in our own in our inventory. And that doesn’t include some really old areas where we’re not active. But yes, I mean, to answer your question, it does give us some interest in some things that may have this opportunity to be able to apply our know-how to it. But we’re really focused on our own organic situation.

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

This article first appeared on GuruFocus.

The electric vehicle, Artificial Intelligence (AI), power infrastructure and automation boom will drive at least 10 million metric tons of additional copper demand by 2035, Swiss multinational commodity trading company Trafigura has predicted. According to Graeme Train, Trafigura’s head of metals analysis, one third of the 10 million tons of new demand will come from the electric vehicle sector, "A third is electricity generation, transmission and distribution, and the rest is for things like automation, manufacturing capex and cooling systems within data centers," he said.

A couple of weeks ago, Saad Rahim, Trafigura’s chief economist, projected that AI alone has the potential to add one million tonnes per annum of copper demand by 2030,

“If you look at the demand that is coming from data centers and related to that from AI, that growth has suddenly exploded,” said Rahim. ‘‘That one million tonnes is on top of what we have as 4-5 million tonne deficit gap by 2030 anyway. That’s not something that anyone has actually factored into a lot of these supply and demand balances.” the analyst added.

Copper futures have rallied close to a five-year high at $4.46 per pound ($9,812/t) , and Wall Street is growing increasingly bullish. Citi has predicted that the metal has entered its second secular bull market this century, "driven by booming decarbonization related demand growth, ‘’ adding that "only higher prices will solve these deficits." 

Citi notes that the last copper mega-bull market was in the 2000s when prices increased 5x in three years during copper's bull market of the 2000s, driven by rapid urbanization and industrialization in China. Citi has advised corporate consumers to hedge their copper exposures because there is potential for "explosive price upside" again over the next three years.

Citi says copper prices could hit $10,500/t over the next three months, raising its Q2 and Q3 price average to $10k/t  versus $9.5k/t previously estimated. Copper reached Citi's $9,741/t target on Thursday. Citi's new near-term bull case has copper prices skyrocketing to $12k/t over that time frame, with LME and SHFE copper stocks falling sharply over the next three months.

Meanwhile, Bank of America metals strategists say the copper supply crisis is already here, thanks to the "lack of mine projects becoming an increasing issue for copper. This, along with investment in green technologies and a rebound of the global economy, should lift prices to US$10,250/ton by Q4,’’ 8% higher than their previous view.

Copper supplies are coming under pressure as Chinese smelters approach their regulatory approval to cut output, with supply shortage resulting from disruptions in key mines across major producing regions. Rising U.S. PMIs and supply disruptions, due to drought in Zambia, are also bullish for near-term prices. Adding to the supply disruption, the U.S. and the UK have prohibited metal-trading exchanges from accepting new aluminum, copper and nickel produced by Russia, a move likely to further increase price volatility and supply uncertainty. Russia is a major metals producer, while China is the world's largest producer and consumer of copper.

Copper Stocks Rally

Unlike their lithium peers, copper mining stocks are handily outperforming the market, with Global X Copper Miners ETF (NYSEARCA:COPX) having returned 19.2% compared to 14.4% by the Energy Select Sector SPDR Fund (NYSEARCA:XLE) and 6.3% by the S&P 500 in the year-to-date.

On Tuesday, Phoenix, Arizona-based Freeport-McMoRan Inc. (NYSE:FCX) reported Q1 2024 Non-GAAP EPS of $0.32, $0.04 above the Wall Street consensus while revenue of $6.32B (+17.3% Y/Y) beat by $620M. The company’s consolidated production during the quarter totaled 1.1 billion pounds of copper, 549 thousand ounces of gold and 18 million pounds of molybdenum while average realized prices were $3.94 per pound for copper, $2,145 per ounce for gold and $20.38 per pound for molybdenum. For the second quarter, the company expects to report sales of 1.0 billion pounds of copper, 500 thousand ounces of gold and 21 million pounds of molybdenum, and expects to post consolidated sales of ~4.15 billion pounds of copper, 2.0 million ounces of gold and 84 million pounds of molybdenum for the full year 2024. FCX shares are up 22.4% over the past 12 months.

Shares of Canadian-based First Quantum Minerals Ltd (OTCPK:FQVLF) are on the mend, rallying nearly 40% in the year-to-date as mining giants Rio Tinto (NYSE:RIO), Saudi Arabia's Manara Minerals Investment Co., and scores of Japanese trading houses consider a stake in First Quantum Minerals' Zambia copper mines.

According to Bloomberg, First Quantum is looking to sell a minority stake in its Sentinel and Kansanshi mines in Zambia after it was forced to close its flagship copper mine in Panama last year. The Zambia assets could also attract interest from Chinese miners including Zijin Mining (OTCPK:ZIJMF) (OTCPK:ZIJMY) and Jiangxi Copper (OTCPK:JIAXF), First Quantum's second-largest shareholder. Last year, Zambia accounted for roughly half of First Quantum's copper production and revenue, and also delivered more than $450M in operating profit.

By Alex Kimani for Oilprice.com

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• China Scooped Up Record Volumes of Russian Oil In March

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

Harmony Gold is a member of our Basic Materials group, which includes 240 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Harmony Gold is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for HMY's full-year earnings has moved 29.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, HMY has returned 42.6% so far this year. At the same time, Basic Materials stocks have lost an average of 3.3%. As we can see, Harmony Gold is performing better than its sector in the calendar year.

Mercer International (MERC) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.2%.

Over the past three months, Mercer International's consensus EPS estimate for the current year has increased 27%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Harmony Gold belongs to the Mining – Gold industry, which includes 39 individual stocks and currently sits at #48 in the Zacks Industry Rank. This group has gained an average of 8.2% so far this year, so HMY is performing better in this area.

On the other hand, Mercer International belongs to the Paper and Related Products industry. This 12-stock industry is currently ranked #7. The industry has moved +5% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Harmony Gold and Mercer International as they attempt to continue their solid performance.

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Freeport-McMoRan (FCX) reported $6.32 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 17.3%. EPS of $0.32 for the same period compares to $0.52 a year ago.

The reported revenue represents a surprise of +11.74% over the Zacks Consensus Estimate of $5.66 billion. With the consensus EPS estimate being $0.27, the EPS surprise was +18.52%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Freeport-McMoRan performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Average realized price per pound – Copper: $3.94 versus the three-analyst average estimate of $3.88.

• Production in millions of pounds – Molybdenum – South America: 3 Mlbs versus 5.48 Mlbs estimated by three analysts on average.

• Production in millions of pounds – Molybdenum – By-product – North America: 7 Mlbs versus the three-analyst average estimate of 7.1 Mlbs.

• Sales in thousands of Ounces – Gold – North America: 4 Koz versus the three-analyst average estimate of 4.39 Koz.

• Sales in thousands of ounces – Gold – Consolidated basis: 568 Koz versus the three-analyst average estimate of 574.23 Koz.

• Revenues- Indonesia: $2.83 billion versus the three-analyst average estimate of $2.54 billion. The reported number represents a year-over-year change of +106.5%.

• Revenues- Molybdenum: $145 million compared to the $238.86 million average estimate based on three analysts. The reported number represents a change of -35% year over year.

• Revenues- South America copper mines: $1.14 billion versus the three-analyst average estimate of $1.11 billion. The reported number represents a year-over-year change of -20.9%.

• Revenues- North America copper mines: $1.50 billion versus the three-analyst average estimate of $1.34 billion. The reported number represents a year-over-year change of -10.1%.

• Revenues- Rod & Refining: $1.50 billion versus $1.38 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2% change.

• Revenues- Atlantic Copper Smelting & Refining: $673 million versus $680.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -11% change.

• Revenues- Corporate, other & eliminations: -$1.46 billion versus -$1.80 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -8.4% change.

View all Key Company Metrics for Freeport-McMoRan here>>>Shares of Freeport-McMoRan have returned +7.9% over the past month versus the Zacks S&P 500 composite's -4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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PHOENIX, April 23, 2024–(BUSINESS WIRE)–Freeport-McMoRan Inc. (NYSE: FCX) today announced that it has posted its first-quarter 2024 financial and operating results press release on the Investor Relations page of its website at https://investors.fcx.com/investors/news-releases.

As previously indicated on its website, FCX will host a conference call today with securities analysts at 10:00 a.m. Eastern Time to discuss quarterly results. The conference call will be webcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides on the Investor Relations page of FCX’s website at https://investors.fcx.com/investors/presentations. A replay of the webcast will be available through Friday, May 17, 2024.

FREEPORT: Foremost in Copper

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

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

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240422989299/en/

Contacts

Financial Contact:David P. Joint(504) 582-4203Media Contact:Linda S. Hayes(602) 366-7824

(Reuters) -Copper miner Freeport-McMoRan beat Wall Street estimates for first-quarter profit on Tuesday, helped by higher production and easing costs.

The mining giant said its quarterly production of copper rose to 1.1 billion pounds from 965 million pounds a year earlier, helped by a 49% jump in output from its Indonesia operations.

Freeport-McMoRan said it was working with the Indonesian government, which has put a ban on raw material exports, to obtain approvals to continue shipping copper concentrates and anode slimes. Its current license is set to expire in May.

In the reported quarter, the company also benefited from strong prices of gold, which it produces as a byproduct from its key Grasberg mine in Indonesia.

Its total gold sales volume more than doubled to 568,000 ounces in the reported quarter.

The company's average cash costs per pound of copper in the first quarter were $1.51, lower than last year's $1.76, helped by strong production and are expected to average at $1.57 for 2024, the company said.

On an adjusted basis, the Phoenix, Arizona-based company earned 32 cents per share for the three months ended March 31, compared with the average analyst estimate of 26 cents per share, according to LSEG data.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shinjini Ganguli)

(Adds background on Indonesian export license in paragraph 3, details on gold sales volumes in paragraph 5)

April 23 (Reuters) – Copper miner Freeport-McMoRan beat Wall Street estimates for first-quarter profit on Tuesday, helped by higher production and easing costs.

The mining giant said its quarterly production of copper rose to 1.1 billion pounds from 965 million pounds a year earlier, helped by a 49% jump in output from its Indonesia operations.

Freeport-McMoRan said it was working with the Indonesian government, which has put a ban on raw material exports, to obtain approvals to continue shipping copper concentrates and anode slimes. Its current license is set to expire in May.

In the reported quarter, the company also benefited from strong prices of gold, which it produces as a byproduct from its key Grasberg mine in Indonesia.

Its total gold sales volume more than doubled to 568,000 ounces in the reported quarter.

The company's average cash costs per pound of copper in the first quarter were $1.51, lower than last year's $1.76, helped by strong production and are expected to average at $1.57 for 2024, the company said.

On an adjusted basis, the Phoenix, Arizona-based company earned 32 cents per share for the three months ended March 31, compared with the average analyst estimate of 26 cents per share, according to LSEG data. (Reporting by Sourasis Bose in Bengaluru; Editing by Shinjini Ganguli)

Freeport-McMoRan (FCX) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 18.52%. A quarter ago, it was expected that this mining company would post earnings of $0.21 per share when it actually produced earnings of $0.27, delivering a surprise of 28.57%.

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

Freeport-McMoRan , which belongs to the Zacks Mining – Non Ferrous industry, posted revenues of $6.32 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 11.74%. This compares to year-ago revenues of $5.39 billion. The company has topped consensus revenue estimates four times over the last four quarters.

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

Freeport-McMoRan shares have added about 15% since the beginning of the year versus the S&P 500's gain of 5.1%.

What's Next for Freeport-McMoRan?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $5.87 billion in revenues for the coming quarter and $1.57 on $24.07 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Non Ferrous is currently in the top 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Ero Copper Corp. (ERO), is yet to report results for the quarter ended March 2024. The results are expected to be released on May 7.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -79.2%. The consensus EPS estimate for the quarter has been revised 5.8% lower over the last 30 days to the current level.

Ero Copper Corp.'s revenues are expected to be $104.4 million, up 3.4% from the year-ago quarter.

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Freeport-McMoRan Inc. FCX recorded net income (attributable to common stock) of $473 million or 32 cents per share in first-quarter 2024, down around 29% from $663 million or 46 cents in the year-ago quarter.Barring one-time items, adjusted earnings per share were 32 cents, topping the Zacks Consensus Estimate of 27 cents.Revenues rose roughly 17% year over year to $6,321 million. The figure also surpassed the Zacks Consensus Estimate of $5,657.1 million. The company witnessed higher copper sales in the reported quarter. It also benefited from higher gold prices and lower costs.

 

Freeport-McMoRan Inc. Price, Consensus and EPS Surprise

 

Freeport-McMoRan Inc. Price, Consensus and EPS Surprise

Freeport-McMoRan Inc. price-consensus-eps-surprise-chart | Freeport-McMoRan Inc. Quote

 Operational Highlights

Copper production rose around 12% year over year to 1,085 million pounds in the reported quarter. The figure was ahead of our estimate of 1,025 million pounds.Consolidated sales climbed around 33% year over year to 1,108 million pounds of copper. The figure was higher than our estimate of 1,001 million pounds. The upside can be attributed to higher mining and milling rates and ore grades at PT-FI.The company sold 568,000 ounces of gold, up around 110% year over year. FCX also sold 20 million pounds of molybdenum, up around 5% year over year, in the reported quarter.Consolidated average unit net cash costs per pound of copper were $1.51, down from $1.76 a year ago. The figure was lower than our estimate of $1.55.The average realized price for copper was $3.94 per pound, down around 4% year over year. The figure was higher than our estimate of $3.81 per pound. The average realized price per ounce for gold rose around 10% year over year to $2,145. The figure was above our estimate of $2,019.

Financial Position

Cash and cash equivalents at the end of the quarter were $5,208 million, down around 24% year over year. The company’s total debt was $9,425 million, down around 2% year over year.Cash flows provided by operations were $1.9 billion for the reported quarter, up around 81% year over year.

Guidance

Freeport expects consolidated sales for 2024 to be approximately 4.15 billion pounds of copper, 2 million ounces of gold and 84 million pounds of molybdenum. This includes an estimated 1 billion pounds of copper, 500,000 ounces of gold, and 21 million pounds of molybdenum in the second quarter of 2024.The unit net cash costs for copper are expected to average $1.57 per pound for 2024. The same has been projected at $1.57 per pound for the second quarter.The company also sees operating cash flows of approximately $7.4 billion for 2024. Capital expenditures for the full year are projected to be around $4.6 billion.

Price Performance

Freeport’s shares are up 23.8% in the past year compared with a 30.4% rise of the industry.

 

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 Zacks Rank & Key Picks

FCX currently carries a Zacks Rank #3 (Hold).Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Carpenter Technology Corporation CRS and Innospec Inc. IOSP.Denison Mines beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 96% in the past year. DNN carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $3.96, indicating a year-over-year surge of 247.4%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have rallied around 62% in the past year. CRS currently carries a Zacks Rank #2 (Buy).  The consensus estimate for Innospec’s current-year earnings is pegged at $6.77 per share, indicating a 11.2% year-over-year rise. IOSP, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.5%. The company’s shares have gained around 16% in the past year.

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• Net Income: Reported at $473 million for Q1 2024, with earnings per share of $0.32, surpassing the estimated earnings per share of $0.27 and net income estimate of $341.23 million.

• Revenue: Reached $6,321 million in Q1 2024, exceeding the estimated revenue of $5,659.69 million.

• Operating Income: Achieved $1,634 million in Q1 2024, showing strong operational performance and financial health.

• Copper Sales Volumes: Totalled 1.1 billion pounds, an 11% increase over the January 2024 estimate and a 33% increase from Q1 2023.

• Average Realized Prices: $3.94 per pound for copper, $2,145 per ounce for gold, and $20.38 per pound for molybdenum in Q1 2024.

• Operating Cash Flows: Generated $1.9 billion in Q1 2024, indicating robust cash flow management and operational efficiency.

• Capital Expenditures: Totalled $1.3 billion in Q1 2024, with significant investments in major mining projects and Indonesia smelter projects.

Freeport-McMoRan Inc. (NYSE:FCX), a leading international mining company, released its 8-K filing on April 23, 2024, detailing robust first-quarter results for the year. The company reported a net income of $473 million, translating to $0.32 per share, which aligns with analyst projections of $0.27 per share. This performance marks a significant achievement, particularly in light of the estimated net income of $341.23 million. FCX's revenue for the quarter stood impressively at $6,321 million, comfortably surpassing the expected $5,659.69 million.

Freeport-McMoRan Inc. (FCX) Q1 2024 Earnings: Surpasses Analyst Revenue ForecastsCompany Overview

Freeport-McMoRan Inc. operates on a global scale, focusing primarily on copper mining with additional operations in gold and molybdenum. Its major mining divisions include North America, South America, and Indonesia, with significant activities in the Morenci, Cerro Verde, and Grasberg mines. The company's revenue primarily stems from copper sales, making its performance in this sector crucial to overall success.

Operational Highlights and Financial Health

The first quarter saw FCX achieving copper sales volumes that not only exceeded the estimates set in January 2024 but also showed a significant increase from the first quarter of the previous year. This was largely due to enhanced mining and milling rates and improved ore grades, particularly at the PT-FI operations in Indonesia. Gold sales also saw a substantial increase, reflecting similar operational improvements.

FCX's strategic initiatives, including the nearing completion of the Indonesia smelter projects, are set to further bolster its operational capabilities. The company's solid financial position is underscored by a robust $1.9 billion in operating cash flows and a disciplined approach to capital expenditures, totaling $1.3 billion for the quarter.

Market Position and Future Outlook

The favorable market fundamentals for copper and the company's strong execution of operational plans provide a positive outlook for FCX. The anticipated completion of smelter projects in Indonesia and ongoing development activities across its operating regions are expected to sustain and enhance production capacities. With copper's role increasingly pivotal in global economic developments, particularly in green technologies, FCX is well-positioned to leverage its operational strengths for future growth.

Leadership and Strategic Directions

The impending transition in leadership, with Kathleen L. Quirk set to become CEO, marks a significant milestone for FCX. The company remains committed to its strategic focus on copper, aiming to capitalize on its extensive asset base and operational excellence to drive shareholder value and industry leadership.

Analysis and Investor Implications

Freeport-McMoRan's Q1 2024 performance reflects a robust operational and financial framework that supports its growth trajectory in the metals market. The company's ability to exceed revenue forecasts and align with earnings expectations underscores its resilience and strategic planning efficacy. Investors might view FCX's ongoing projects and market positioning as strong indicators of potential future returns, supported by favorable copper and gold market dynamics and strategic expansions.

Overall, Freeport-McMoRan Inc. (NYSE:FCX) demonstrates a compelling blend of operational success and strategic foresight, making it a noteworthy entity in the metals and mining sector for the forthcoming periods.

Explore the complete 8-K earnings release (here) from Freeport-McMoRan Inc for further details.

This article first appeared on GuruFocus.

First Quantum Minerals (FQVLF) came out with a quarterly loss of $0.20 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -42.86%. A quarter ago, it was expected that this metal and minerals mining company would post a loss of $0.16 per share when it actually produced a loss of $0.37, delivering a surprise of -131.25%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

First Quantum Minerals , which belongs to the Zacks Mining – Non Ferrous industry, posted revenues of $1.04 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 11.24%. This compares to year-ago revenues of $1.56 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

First Quantum Minerals shares have added about 40.6% since the beginning of the year versus the S&P 500's gain of 5.1%.

What's Next for First Quantum Minerals?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $1.01 billion in revenues for the coming quarter and -$0.15 on $4.09 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Non Ferrous is currently in the top 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Southern Copper (SCCO), another stock in the same industry, has yet to report results for the quarter ended March 2024.

This miner is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of -25.7%. The consensus EPS estimate for the quarter has been revised 11% higher over the last 30 days to the current level.

Southern Copper's revenues are expected to be $2.5 billion, down 10.4% from the year-ago quarter.

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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Zacks Investment Research

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.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Harmony Gold (HMY), which currently has a Momentum Style Score of A. 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. Harmony Gold currently has a Zacks Rank of #2 (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 HMY that show why this gold 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 is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For HMY, shares are up 1.98% over the past week while the Zacks Mining – Gold industry is down 0.87% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.1% compares favorably with the industry's 5.33% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Harmony Gold have risen 38.69%, and are up 93.56% in the last year. In comparison, the S&P 500 has only moved 3.72% and 22.99%, respectively.

Investors should also take note of HMY'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, HMY is averaging 6,568,800 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with HMY.

Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost HMY's consensus estimate, increasing from $0.69 to $0.89 in the past 60 days. Looking at the next fiscal year, 1 estimate has 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 HMY is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Harmony Gold on your short list.

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Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report

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Zacks Investment Research

VANCOUVER, BC / ACCESSWIRE / April 22, 2024 / Stillwater Critical Minerals (TSX.V:PGE)(OTCQB:PGEZF)(FSE:J0G) (the "Company" or "Stillwater") is pleased to announce that, due to strong investor demand, the non-brokered private placement announced March 28, 2024, (the "Offering") has been increased to 27.5 million units for gross proceeds of $3.85 million from the previously announced 17,857,143 units for gross proceeds of $2.5 million.

All other terms of the Offering remain unchanged. Glencore Canada Corporation ("Glencore"), a wholly-owned subsidiary of Glencore plc, has agreed to purchase 15 million units of Stillwater pursuant to the Placement, for gross proceeds of $2.1 million.

The Offering is expected to close on or about April 26, 2024, and is subject to customary conditions, including acceptance by the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws.

The Company confirms that certain insiders of the Company will subscribe for units in the Offering. The issuances of units to insiders will be considered related party transactions within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on exemptions from the formal valuation and minority approval requirements in MI 61-101 in respect of any such insider participation, as neither the fair market value of the securities to be issued, nor the fair market value of the consideration for the securities to be issued, insofar as it involves such insiders, will exceed 25% of the Company's market capitalization as calculated in accordance with MI 61-101.This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Stillwater have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

About Stillwater Critical Minerals Corp.

Stillwater Critical Minerals (TSX.V: PGE | OTCQB: PGEZF) is a mineral exploration company focused on its flagship Stillwater West Ni-PGE-Cu-Co + Au project in the iconic and famously productive Stillwater mining district in Montana, USA. With the addition of two renowned Bushveld and Platreef geologists to the team and strategic investments by Glencore, the Company is well positioned to advance the next phase of large-scale critical mineral supply from this world-class American district, building on past production of nickel, copper, and chromium, and the on-going production of platinum group, nickel, and other metals by neighboring Sibanye-Stillwater. An expanded NI 43-101 mineral resource estimate, released January 2023, positions Stillwater West with the largest nickel resource in an active US mining district as part of a compelling suite of nine minerals now listed as critical in the USA. To date, five Platreef-style nickel and copper sulphide deposits host a total of 1.6 billion pounds of nickel, copper and cobalt, and 3.8 million ounces of palladium, platinum, rhodium, and gold at Stillwater West, and all deposits remain open for expansion along trend and at depth. Results are pending from resource expansion drilling completed in the fall of 2023.

Stillwater also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals' development-stage Goliath Gold Complex in northwest Ontario, currently under an earn-in agreement with Heritage Mining, and the Kluane PGE-Ni-Cu-Co critical minerals project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Michael Rowley, President, CEO & DirectorEmail: info@criticalminerals.com Phone: (604) 357 4790Web: http://criticalminerals.com Toll Free: (888) 432 0075

Forward-Looking Statements

This news release includes certain statements that may be deemed "forward-looking statements" or "forward-looking information" in accordance with applicable securities laws. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, potential exploration results, the timing and success of exploration activities generally, and expectations regarding the completion of the Placement, are forward-looking statements that involve various risks and uncertainties. Although Stillwater believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals or satisfaction of other conditions to closing of the Placement, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Stillwater and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedarplus.ca.

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.

SOURCE: Stillwater Critical Minerals

View the original press release on accesswire.com

Reunion Gold Corporation (V.RGD) hit a new 52-week high of 57 cents Monday. Reunion Gold and G Mining Ventures Announced a Combination to Set the Stage for a Leading Intermediate Gold Producer in the Americas.

Alphamin Resources Corp. (V.AFM) hit a new 52-week high of $1.14 Monday. No news stories available today.

Gold79 Mines Ltd. (V.AUU) hit a new 52-week high of 79 cents Monday. No news stories available today.

Bedford Metals Corp. (V.BFM) hit a new 52-week high of $1.54 Monday. No news stories available today.

Biorem Inc. (V.BRM) hit a new 52-week high of $2.01 Monday. No news stories available today.

US Financial 15 Split Corp. Class A Shares (T.FTU) hit a new 52-week high of 43 cents Monday. No news stories available today.

Golden Cariboo Resources Ltd. (C.GCC) hit a new 52-week high of 28 cents Monday. No news stories available today.

Genesis Land Development Corp. (T.GDC) hit a new 52-week high of $3.25 Monday. No news stories available today.

Globex Mining Enterprises Inc. (T.GMX) hit a new 52-week high of $1.02 Monday. No news stories available today.

Hannan Metals Ltd. (V.HAN) hit a new 52-week high of 44 cents Monday. No news stories available today.

Hemisphere Energy Corporation (V.HME) hit a new 52-week high of $1.72 Monday. No news stories available today.

NTG Clarity Networks Inc. (V.NCI) hit a new 52-week high of 50 cents Monday. No news stories available today.

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PJX Resources Inc. (V.PJX) hit a new 52-week high of 29 cents Monday. No news stories available today.

Primo Water Corporation (T.PRMW) hit a new 52-week high of $25.44 Monday. No news stories available today.

Regulus Resources Inc. (V.REG) hit a new 52-week high of $1.58 Monday. No news stories available today.

Riley Gold Corp. (V.RLYG) hit a new 52-week high of 25 cents Monday. No news stories available today.

Sintana Energy Inc. (V.SEI) hit a new 52-week high of 83 cents Monday. No news stories available today.

Suncor Energy Inc. (T.SU) hit a new 52-week high of $53.74 Monday. No news stories available today.

Taiga Building Products Ltd. (T.TBL) hit a new 52-week high of $3.40 Monday. No news stories available today.

Thermal Energy International Inc. (V.TMG) hit a new 52-week high of 34 cents Monday. No news stories available today.

(Reuters) – North American copper miners are expected to report a decline in first-quarter earnings this week due to lower prices of the red metal amid persistently high costs.

Freeport-McMoRan and Canada's Teck Resources are expected to post a combined adjusted net income of $666.3 million, according to LSEG estimates, compared with $1.43 billion in the year-ago quarter.

Copper prices touched a multi-year high last month after major Chinese copper smelters agreed to limit capacity expansion.

Despite the late rally, average benchmark copper prices were down about 5% during the quarter compared to last year, weighed by concerns over demand in top-consumer China and fears of elevated interest rates.

"I would expect first-quarter cash flow to be low because, again, the copper price had not yet really risen," said Chris LaFemina, managing director, global metals and mining equities research at Jefferies.

The miners are also grappling with a labor shortage, especially in countries such as the U.S., and lower grades of ore, raising the per-unit production cost.

"In mining, costs tend to lag prices. So when the prices go down, it takes time before the costs are actually lower," LaFemina said.

In addition, Teck's quarterly earnings may see a hit from inclement weather in British Columbia, while Freeport's ongoing tussle with the Indonesian government over export permits could add to its costs, analysts said.

Over 50% of Wall Street analysts who cover Freeport and Teck have lowered their earnings estimates for both miners in the past 30 days, according to LSEG data.

However, a surge in the prices of gold, often mined as a by-product, could provide relief to miners like Freeport, analysts said.

"We think estimates are too pessimistic for Freeport-McMoRan, as the consensus doesn't appear to be giving Freeport credit for the significant gold production from Grasberg in Indonesia," CFRA analyst Matthew Miller said in a statement.

The late rally in copper prices will likely boost the free cash flow of miners in the second quarter, analysts said.

Company LSEG Q1 EPS LSEG Q1 Revenue

Estimate Estimate

Freeport-McMoRan 27 cents $5.66 billion

Teck Resources 89 Canadian C$4.07 billion

cents

Company Recommendation Median Price Target

Freeport-McMoRan Thirteen of 23 $51

brokerages rate

the stock "buy"

or higher and

10 "hold"

Teck Resources All 12 C$68.50

brokerages rate

the stock "buy"

or higher

(Reporting by Sourasis Bose in Bengaluru; Editing by Pooja Desai)

It’s been a rough month for most S&P 500 stocks. But some are absolutely thriving. Five stocks, including Newmont, Freeport-McMoRan and United Airlines, are up more than 7% since the S&P 500 peaked this year on March 27, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.

Key Insights

• The projected fair value for Freeport-McMoRan is US$55.05 based on 2 Stage Free Cash Flow to Equity

• Freeport-McMoRan's US$49.61 share price indicates it is trading at similar levels as its fair value estimate

• Analyst price target for FCX is US$50.38 which is 8.5% below our fair value estimate

How far off is Freeport-McMoRan Inc. (NYSE:FCX) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple!

Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.

See our latest analysis for Freeport-McMoRan

What's The Estimated Valuation?

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

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:

10-year free cash flow (FCF) forecast

	2024	2025	2026	2027	2028	2029	2030	2031	2032	2033
Levered FCF ($, Millions)	US$2.53b	US$4.39b	US$5.17b	US$4.47b	US$5.01b	US$5.12b	US$5.25b	US$5.37b	US$5.49b	US$5.62b
Growth Rate Estimate Source	Analyst x7	Analyst x7	Analyst x4	Analyst x1	Analyst x1	Est @ 2.39%	Est @ 2.36%	Est @ 2.34%	Est @ 2.32%	Est @ 2.31%
Present Value ($, Millions) Discounted @ 7.9%	US$2.3k	US$3.8k	US$4.1k	US$3.3k	US$3.4k	US$3.2k	US$3.1k	US$2.9k	US$2.8k	US$2.6k

("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$32b

We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 7.9%.

Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$5.6b× (1 + 2.3%) ÷ (7.9%– 2.3%) = US$102b

Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$102b÷ ( 1 + 7.9%)10= US$47b

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$79b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$49.6, the company appears about fair value at a 9.9% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.

dcfThe Assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Freeport-McMoRan as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.227. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

SWOT Analysis for Freeport-McMoRan

Strength

• Debt is not viewed as a risk.

Weakness

• Earnings declined over the past year.

• Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market.

Opportunity

• Annual earnings are forecast to grow faster than the American market.

• Current share price is below our estimate of fair value.

Threat

• Dividends are not covered by cash flow.

• Annual revenue is forecast to grow slower than the American market.

Moving On:

Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Freeport-McMoRan, we've compiled three pertinent aspects you should assess:

Risks: For example, we've discovered 1 warning sign for Freeport-McMoRan that you should be aware of before investing here.

Future Earnings: How does FCX's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

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

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

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

BHP Group BHP announced that its iron ore production rose 3% year over year to 61.5 Mt in the third quarter of fiscal 2024 (ended Mar 31, 2024). This was attributed to a 3% rise in iron ore output at Western Australia Iron Ore (WAIO).In the first nine-month period of 2024, iron ore production was recorded at 191 Mt, down 1% year over year. This decline can be attributed to heavy rainfall in the third quarter of fiscal 2024,  the continued tie-in activity for the Rail Technology Program, the impacts of the ongoing ramp-up of the Central Pilbara hub (South Flank and Mining Area C) and a bushfire near Yandi.BHP stated that South Flank is on track to ramp up to a full production capacity of 80 Mt per year (100% basis) by the end of fiscal 2024.Copper Output Up 15% in Q3: Total copper production in the third quarter of fiscal 2024 rose 15% year over year to 466 kt. This brings the copper production total to 1,360 kt for the first nine-month period of fiscal 2024, which marks 10% growth year over year.  This reflects strong performance and additional tons from Copper South Australia, record year-to-date performance from Spence, as well as improved grades and production at Escondida.Production at Escondida was up 7% year over year to 816 kt in the first nine-month period of fiscal 2024. Copper output at Pampa Norte declined 9% to 200 kt in the first nine-month period compared with year-ago levels. Cerro Colorado entered temporary care and maintenance in December 2023. Spence continues to perform well with its output attaining a nine-month record of 189 kt, mainly driven by improved concentrator throughput and higher recoveries.Production from Copper South Australia surged 49% to 233 kt in the first nine-month period of fiscal 2024, driven by additional contributions from Prominent Hill and Carrapateena. Antamina’s copper production rose 4% to 106 kt in the first nine months of fiscal 2024.Nickel Production Down 4% in Q3: Nickel production was down 4% year over year to 18.8 kt during third-quarter fiscal 2024. In the first nine months of fiscal 2024, nickel output was 58.6 kt, which was 1% higher than the year-ago comparable period.Energy Coal Up, Metallurgical Coal Plunges: Energy coal production rose 5% year over year to 4.1 Mt in the third quarter of fiscal 2024. In the first nine months of fiscal 2024, production improved 23% year over year to 11.6 Mt owing to strong operating performance.Metallurgical coal production was 6 Mt, down 13% compared with the year-ago quarter. Production in the first nine months of fiscal 2024 was 17.4 Mt, which was 16% lower than the year-ago levels due to planned maintenance, an extended longwall move, as well as increased stripping to improve supply-chain stability.Prices: In the third quarter of fiscal 2024, average realized prices for iron ore were down 3% to $106 per ton. Copper prices were up 5% sequentially to $3.85 per pound. Average nickel prices were $16,581 per ton, down 1% sequentially. Prices for thermal coal dipped 4% sequentially to $116.11 per ton and metallurgical coal prices were down 4% sequentially to $281.51 per ton.

FY24 Production Guidance

BHP’s iron ore production guidance for fiscal 2024 is 254-264.5 Mt. WAIO's production is expected to be between 250 Mt and 260 Mt (282 Mt and 294 Mt on a 100% basis).BHP expects copper production within 1,720-1,910 kt in fiscal 2024. Production guidance for metallurgical coal has been lowered to 21.5-22.5 Mt from the previous expectation of 23 -25 Mt. The production guidance for energy coal is 13-15 Mt. Nickel production is expected to be near the lower half of the range of 77 kt and 87 kt.

Cost Guidance for FY24

Unit cost guidance for WAIO is $17.40-$18.90 per ton. Escondida unit cost is estimated to be $1.40-$1.70 per pound. Spence unit costs are expected to range between $2.00 per pound and $2.30 per pound. BMA unit cost is expected to be between $119 per ton and $125 per ton, higher than the prior stated range of $110-$116 per ton.

Other Updates

BHP and Mitsubishi Development Pty Ltd, on Apr 2, announced the completion of the divestment of the Blackwater and Daunia mines to Whitehaven Coal.  Daunia and Blackwater were part of the BHP Mitsubishi Alliance (BMA) metallurgical coal joint venture in Queensland. Each of BHP and MDP holds a 50% interest in BMA.

Peer Performances

Vale S.A. VALE reported iron ore production of 70.8 Mt for the first quarter of 2024, which was up 6% year over year, attributed to improved operating performance at the S11D mine and higher third-party purchases. Vale’s iron ore production guidance for 2024 is 310-320 Mt.Vale produced 81.9 kt of copper in the quarter, which marked 22.2% year-over-year growth, benefiting from the steady ramp-up of Salobo 3 as well as better performance at Salobo’s 1 & 2 plants.Rio Tinto Group RIO reported a 2% decrease in its first-quarter 2024 iron ore production to 77.9 Mt (on a 100% basis) as planned ore depletion, predominantly at Yandicoogina, was partially offset by productivity gains across other operations.Shipments for the quarter (on a 100% basis) were reported at 78 Mt, marking a 5% year-over-year drop. This was due to weather disruption at the ports as well as lower output at the mines. RIO expects Pilbara iron ore shipments (100% basis) between 323 Mt and 338 Mt in 2024. The midpoint of the range indicates a year-over-year dip of 0.4%.Rio Tinto’s copper production was 156 thousand tons (on a consolidated basis), which was 7% higher than the year-ago quarter.

Price Performance

BHP’s shares have declined 7.6% in a year against the industry’s 3% growth.

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Another Key Pick

BHP currently carries a Zacks Rank #3 (Hold).A better-ranked stock in the Basic Materials space is Carpenter Technology Corporation CRS, which carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.00 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 68% in a year.

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In this piece, we will take a look at the 11 best coal mining stocks to invest in. To know more about the top stocks, go directly to 5 Best Coal Mining Stocks To Invest In.

Coal has been recognized for its role in alleviating poverty through coal mining by offering employment opportunities in areas with limited or no jobs. Also, coal mining can spur economic growth by attracting investment and generating revenue for local governments. It is most reliable, and constant power of energy in areas that use coal as a primary energy source thus contributing to enhanced productivity and quality of life. Despite being the most reliable and abundant source of energy, coal consumption has been witnessed to partially decline particularly in the United States due to apprehensions regarding the impact of carbon dioxide and other emissions on climate.

Predominantly “green companies” have been claiming for a long time now that wind and solar are the cheapest forms of electricity and transitioning to renewable energy will contribute to the broader target of achieving net zero emissions. However, the opposite is true in this case as the transition to renewable energy sources has been witnessed to fail because it misaligns with the “Energy Trilemma” of focusing on security, affordability, and sustainability.

According to Ernst & Young's 2024 report, “Top 10 business risks and opportunities for mining and metals 2024”, ESG poses both substantial risks and considerable opportunities for miners that can contribute to achieving long-term value for all stakeholders. Moving forward, coal asset divestment continues because it produces carbon that represents a significant proportion of GHG emissions. Many diversifier miners have either divested their coal assets or set a timeline for closure.  As per the latest IEA market report, a decline of 2.3% has been expected to take place globally in the demand for coal by 2026 in comparison to 2023.

Coal Industry Outlook 2024

China, India and Indonesia are the three largest coal producers. China, among them, has dominated global coal production for decades and is likely to continue as the foremost coal producer in the foreseeable future. Despite setting renewable energy targets, the growing economies of China and India continue to remain the top consumers of coal in efforts to fuel economic growth. China is the world’s largest energy consumer and over 60% of its electricity is generated by coal. Based on the projections from Energy Watchdog International Energy Agency, China’s share of global electricity consumption will surge to one-third by 2025, marking a substantial increase from a quarter in 2015.

On the contrary, according to Ember’s Global Electricity Review 2023, wind and solar energy are expected to replace coal by 2030, it will contribute to 41% of global electricity generation with a significant increase of 10% in 2021. Simultaneously, this transition demands a reduction in coal generation by 54% and gas generation by 28%. A notable surge in electricity demand with an average annual increase of 3.7% from 2021 to 2030 is also anticipated in this period.

Coal’s contribution to Energy Mix in 2024

According to the European Electricity Review of 2024, fossil generation plummeted by a record 19% last year with an unprecedented collapse in coal and gas generation. Coal generation fell by 26% to its lowest level accounting for only 12% of the EU electricity mix in 2023. Also, gas generation fell by 15%, which accounts for 17% of the total EU generation in 2023.

In the US alone, about 60% of 4.18 trillion kilowatt-hours of energy was generated last year from fossil fuels that included coal, according to the US Energy Information Administration. Coal amounted for roughly more than 16% of electricity generation in the nation.

Some of the best coal stocks include Teck Resources Limited (NYSE:TECK), Arch Resources, Inc. (NYSE:ARCH), Peabody Energy Corporation (NYSE:BTU), and others. For this, we decided to take a look at the 11 best coal mining stocks to invest in.

11 Best Coal Mining Stocks To Invest In

11 Best Coal Mining Stocks To Invest In

Our Methodology

To compile the list of the best coal mining stocks to invest in, we filtered companies listed on the New York Stock Exchange and Nasdaq that were engaged in coal mining operations. The stocks were ranked based on Insider Monkey’s database of 933 hedge funds tracked at the end of Q4 2023. The ranking was based on the ascending order of the number of hedge fund investors in each stock and then the top 11 coal mining stocks were picked for investment purposes. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Best Coal Mining Stocks To Invest In11. Alliance Resource Partners, L.P. (NASDAQ:ARLP)

Number of Hedge Fund Holders: 6

Alliance Resource Partners, L.P. (NASDAQ:ARLP) is the company involved in the production and marketing of coal. Alliance Resource Partners, L.P. (NASDAQ: ARLP) being a diversified coal and producer and marketer plays a significant role in the energy sector predominantly in regions where coal remains a vital source of electricity generation.

The company is the largest coal producer in the eastern United States that caters to both domestic and international utility and industrial sectors. Alliance Resource Partners, L.P. (NASDAQ:ARLP) is well-suited to be a reliable energy partner for the future having a market capitalization of $2.8 billion as of last quarter of 2023 and one of the best coal mining stocks to invest in.

The company possesses royalties from oil and gas operations and has notable investments in emerging alternative energy ventures which makes it as one of the best coal stocks. According to the last quarter of 2023, Alliance Resource Partners, L.P. (NASDAQ: ARLP) had 6 hedge fund investors out of 933 funds tracked by Insider Monkey database. Adam Peterson’s Magnolia Capital Fund was the largest stakeholder with 3.2 million shares having net worth of $68.1 million.

10. Ramaco Resources, Inc. (NASDAQ:METC)

Number of Hedge Fund Holders: 14

Ramaco Resources, Inc. (NASDAQ:METC) is a US based coal mining company that specializes in mining, processing and selling of metallurgical coal primarily used in steel production. As of March 2024, Ramaco Resources, Inc. (NASDAQ:METC) intends to increase its met coal production by two folds from the current 3.5 million tons and delve into the rare earth business that makes it as one the best coal stocks.

According to Insider Monkey’s Q4 database of 2023, 14 hedge funds were bullish on Ramaco Resources, Inc. (NASDAQ: METC) with Steve Cohen’s Point72 Asset Management being the largest stakeholder of the company, with 901,500 shares worth $15.5 million.

Ramaco Resources, Inc. (NASDAQ:METC) is one of the best coal mining stocks to invest in as it leads the coking coal industry as of March 2024 and it has managed to secure an average rating of buy and a price target of $23.50, according to analysts of S&P Capital IQ. In an effort to reduce costs and improve operational efficiency, Ramaco Resources, Inc. (NASDAQ: METC) has purchased a coal preparation plant for the Maben Complex and expects the same plant to get operational by Q4 this year.

9. Hallador Energy Company (NASDAQ:HNRG)

Number of Hedge Fund Holders: 17

Hallador Energy Company (NASDAQ: HNRG) is the leader in energy exploration since 1951 that makes it as one of the best coal stocks. The company is headquartered in Terre Haute, Indiana and through its wholly owned subsidiary, Sunrise Coal, LLC, produces electricity at its 1GW facility at the Merom Generating Station.

As of February 2024, Hallador Energy Company (NASDAQ: HNRG) announced a restructuring of its sunrise coal division to transition from a coal production company to a vertically integrated independent power producer that will eventually enhance the overall cost structure.

The last quarter of 2023 as per Insider Monkey’s database indicated that Hallador Energy had 17 hedge fund holders and Israel Englander’s Millennium Management was the biggest position holder, with 322,570 shares worth $2.9 million of the firm.

Along with Alliance Resource Partners, L.P. (NASDAQ: ARLP) and Ramaco Resources, Inc. (NASDAQ: METC), Hallador Energy Company (NASDAQ: HNRG) is one of the best coal mining stocks to invest.

8. SunCoke Energy, Inc. (NYSE:SXC)

Number of Hedge Fund Holders: 19

SunCoke Energy, Inc. (NYSE: SXC) is an independent manufacturer of coke. The company was established in 1960 and is headquartered in Lisle, Illinois. It operates through three segments: Domestic Coke, Brazil Coke, and Logistics. Analysts who are looking for strong oil-energy stocks, it is prudent for them to seek those companies that are outperforming and as of March 2024, SunCoke Energy, Inc. (NYSE: SXC) has certainly gained attention of many investors and is one of the best coal stocks.

SunCoke Energy, Inc. (NYSE: SXC) had 19 hedge fund holders as per Insider Monkey’s fourth quarter database. And Cliff Asness’s AQR Capital Management is the largest stakeholder of the company with 592,500 shares worth $6.4 million. SunCoke Energy, Inc. (NYSE:SXC) had surpassed its own forecasts with a consolidated adjusted EBITDA of $268.8 million in Q4. And the company is planning ahead for a challenging year of 2024 with a strategic focus on safety, environmental performance, and expanding its customer base.

7. Alpha Metallurgical Resources, Inc. (NYSE:AMR)

Number of Hedge Fund Holders: 20

Alpha Metallurgical Resources, Inc. (NYSE: AMR) was formerly known as Contura Energy Inc. and is a leading coal producer in the United States headquartered in Bristol, Tennessee. The company specializes in mining, producing, blending, and selling metallurgical and steam coal. Its portfolio of mining operations consists of 15 underground mines, nine surface mines and eight coal preparation plants.

Insider Monkey’s Q4 database results show that Alpha Metallurgical Resources, Inc. (NYSE:AMR) held 20 hedge funds out of 933 funds with Mohnish Pabrai as the largest stakeholder with 394,313 shares valued at $133.6 million. Mohnish Pabrai acquired a significant portion of AMR i.e. 369,642 shares during the second quarter of 2023 and added another 12% in the third quarter. The company’s strong financial discipline, clear-cut business model and commitment to maximizing shareholder returns makes it as one of the best coal stocks.

Alpha Metallurgical Resources, Inc. (NYSE:AMR) is one of the best coal mining stocks to invest like Hallador Energy Company (NASDAQ:HNRG) and SunCoke Energy, Inc. (NYSE:SXC).

6. BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Holders: 24

BHP Group Limited (NYE: BHP) is one of the largest diversified mining companies that is the major producer of commodities such as iron ore, copper, coal, petroleum, and nickel with a substantial presence in each sector. Its strong focus and commitment to sustainability and environmental stewardship makes it as one of the best coal stocks.

BHP Group Limited (NYSE: BHP) has a market capitalization of around $144 billion. It published a white paper that focuses on the company’s efforts to transition from fossil fuel and carbon-intensive to a world of low or zero-carbon emission resources. In 2016, BHP Group Limited (NYSE:BHP) is committed to achieving gender balance by 2025, and has achieved 40% female representation this year. It is one of the first mining companies in Chile to exceed 40% female representation.

BHP Group Limited (NYSE: BHP) positions itself as a promising, resilient investment choice and one of the best coal mining stocks to capitalize amidst changing market dynamics and regulatory pressures due to its diversified portfolio spanning various commodities, vigorous operational efficiency and proactive approach to sustainability and environmental stewardship.

Insider Monkey’s fourth quarter database results show that 24 hedge funds were bullish on BHP Group Limited (NYSE:BHP) with Ken Fisher’s Fisher Asset Management as the largest position holder in the company have 19.9 million shares worth $1.4 billion.

Click to continue reading and see 5 Best Coal Mining Stocks To Invest In.

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Disclosure: None. 11 Best Coal Mining Stocks To Invest In is originally published on Insider Monkey.

Alphamin Resources Corp. (V.AFM) hit a new 52-week high of $1.19 Friday. No news stories available today.

Aris Mining Corporation (T.ARIS) hit a new 52-week high of $5.30 Friday. No news stories available today.

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ADF Group Inc. (T.DRX) hit a new 52-week high of $14.34 Friday. No news stories available today.

Genesis Land Development Corp. (T.GDC) hit a new 52-week high of $3.04 Friday. No news stories available today.

Globex Mining Enterprises Inc. (T.GMX) hit a new 52-week high of $1.05 Friday. No news stories available today.

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(Bloomberg) — The performance of Australia’s mining stocks is lagging their global peers by the the most in over a year, as China’s uneven recovery and volatile metal prices weigh on shares.

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Recent rallies in gold and copper prices have done little to lift the S&P/ASX 200 Materials Index, down 6.6% for the year, due largely to share declines in behemoths BHP Group Ltd and Rio Tinto Ltd, which account for over half the gauge. In contrast, the Bloomberg World Mining Index is up almost 7%.

Miner shares have trailed falling iron ore prices, which have sunk by 17% this year as China’s real estate slump continues to damp steel demand. Both Rio Tinto and BHP get more than half of their revenue from China.

Still, there might be some positives for miners: ore prices are rebounding after dipping below $100 a ton, and quarterly production updates from BHP and Rio Tinto cast copper as a bright spot for both miners. SBG Securities analyst Tim Clark raised the recommendation on BHP to buy from hold following its trading update.

“We do expect the demand outlook out of China to stabilize into mid-year and be supportive of early-stage commodities, such as iron ore, coal,” UBS analysts including Lachlan Shaw wrote in an April 9 note.

Prolonged US dollar strength may also benefit Aussie miners’ profits as their US dollar-denominated export incomes gain from favorable exchange rates.

–With assistance from Michael G. Wilson and Paul-Alain Hunt.

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Teck Resources Ltd (TECK) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 25. On the other hand, if they miss, the stock may move lower.

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

Zacks Consensus Estimate

This company is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of -28%.

Revenues are expected to be $3.02 billion, up 7.7% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has been revised 4.81% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

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

Earnings Whisper

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

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

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

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

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

How Have the Numbers Shaped Up for Teck Resources?

For Teck Resources, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -43.87%.

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

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

Does Earnings Surprise History Hold Any Clue?

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

For the last reported quarter, it was expected that Teck Resources would post earnings of $1.01 per share when it actually produced earnings of $1.02, delivering a surprise of +0.99%.

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

Bottom Line

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

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

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

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

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L1 Capital, an investment management firm, released its “L1 Long Short Fund” first quarter 2024 investor letter, a copy of the same can be downloaded here. As U.S. economic data continued to surprise to the upside in comparison to market expectations, equity markets saw a gain throughout the March quarter. The portfolio returned 7.4% for the quarter compared to 5.3% for S&P/ASX 200 AI. Over the past three years, the portfolio return was 14.8% p.a compared to 9.6% p.a. for the index. Please check the top five holdings of the fund to know its best picks in 2024.

L1 Long Short Fund featured stocks like Teck Resources Limited (NYSE:TECK) in the first quarter 2024 investor letter. Headquartered in Vancouver, Canada, Teck Resources Limited (NYSE:TECK) engages in the exploration, acquisition, development, production, and sale of natural resources. On April 16, 2024, Teck Resources Limited (NYSE:TECK) stock closed at $47.13 per share. One-month return of Teck Resources Limited (NYSE:TECK) was 7.58%, and its shares gained 1.42% of their value over the last 52 weeks. Teck Resources Limited (NYSE:TECK) has a market capitalization of $24.83 billion.

L1 Long Short Fund stated the following regarding Teck Resources Limited (NYSE:TECK) in its first quarter 2024 investor letter:

"Teck Resources Limited (NYSE:TECK) (Long +8%) shares rose on the same copper market dynamics that drove the Capstone share price. Teck is in the process of completing the sale of its steelmaking coal business for US$8.6b. The company has already received US$1.3b and allocated $500m of this to a buy-back, with the remainder of the proceeds subject to regulatory approvals. Post transaction completion, we expect the company to have significant capital management flexibility, including the potential for further returns to shareholders. Following the divesture of its coal portfolio, Teck will become a leading copper-zinc producer with a strong pipeline of organic growth projects that can grow production by more than 60% over the next decade. Throughout 2024, Teck’s key focus will be to continue ramping up copper production at QB2 (one of the world’s largest new copper mines) and to establish a track record of positive operating performance."

A close up of an automated machine processing other Industrial Metals & Mining resources.

Teck Resources Limited (NYSE:TECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Teck Resources Limited (NYSE:TECK) was held by 68 hedge fund portfolios, compared to 75 in the previous quarter, according to our database.

We previously discussed Teck Resources Limited (NYSE:TECK) in another article, where we shared billionaire Stanley Druckenmiller’s top stock picks. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Highlights include 115m at 1.71g/t PGM+Au and 158m at 1.27g/t PGM+Au, including 36m at 2.81g/t PGM+Au

VANCOUVER, BC, April 15, 2024 /CNW/ – Bravo Mining Corp. (TSXV: BRVO) (OTCQX: BRVMF), ("Bravo" or the "Company") announced that it has received assay results from seven trenches in the Central Sector at its 100% owned Luanga palladium + platinum + rhodium + gold + nickel project ("Luanga" or "Luanga PGM+Au+Ni Project"), located in the Carajás Mineral Province, state of Pará, Brazil.

"Bravo's trenching program continues to return excellent results that are better than the average oxide grades reported in the existing Mineral Resource Estimate ("MRE"). In addition, the increased lateral extent of oxide PGM+Au mineralization at surface is likely to increase the oxide volume component of a future MRE update. The high-grade zones present within these broad intersections also continue to validate or improve the higher grades seen in the drilling below the trench lines, further supporting our interpretation of supergene enrichment," said Luis Azevedo, Chairman and CEO of Bravo. "Furthermore, it is encouraging to see trenching results from the Central Sector continuing to show the same broad lateral distribution that was consistently observed in the Northern Sector, which bodes well for future resource growth."

Highlights Include:

• Results from the trenches reported are from the northern end of the Central Sector and continue to show broad distribution of oxide mineralization (158m wide in TRC23LU013 and 152m wide in TRC23LU015).

• These results continue to demonstrate the much greater lateral extents of surface oxide mineralization in comparison to the narrower zones of primary (fresh rock) mineralization in drilling below the trenches.

• Results confirm the presence of supergene enrichment in the saprolite zone (above the base of oxidation), encountering grades that are generally higher than MRE average grades for oxide mineralization.

• Grades in trenches further corroborate or improve upon intersections encountered by drilling in the underlying fresh rock, while higher-grade zones within trenches, such as TRC23LU015 (17m at 2.30g/t PGM+Au) also validate or surpasses the high-grade intersections encountered by drilling.

• Grades are consistently better than MRE average grades for the oxide zone which, in combination with the broader distribution, suggest potential for increased tonnes of oxide mineralization at higher grades in future mineral resource updates.

• Trenching is planned to continue along the entire 8.1km strike length of the Luanga deposit, with work now progressing through the Central Sector, towards the Southern Sector.

TRENCH-ID	From  (m)	To  (m)	Width   (m)	Pd (g/t)	Pt (g/t)	Rh (g/t)	Au (g/t)	PGM + Au (g/t)	TYPE
TRC24LU009	143.70	218.15	74.45	0.66	0.42	0.07	0.04	1.20	Ox
TRC24LU010	173.18	245.78	72.60	0.73	0.53	0.09	0.04	1.39	Ox
TRC24LU011	190.60	206.60	16.00	0.32	1.46	0.16	0.01	1.95	Ox
TRC24LU012	47.60	162.57	114.97	0.89	0.64	0.12	0.06	1.71	Ox
TRC23LU013	25.80	183.90	158.10	0.71	0.43	0.08	0.04	1.27	Ox
Including	83.90	120.30	36.40	1.61	0.94	0.19	0.05	2.81	Ox
TRC23LU015	0.00	152.70	152.70	0.67	0.39	0.08	0.02	1.15	Ox
Including	0.00	17.30	17.30	1.27	0.86	0.15	0.03	2.30	Ox

Notes:  All 'From', 'To' depths, and 'Thicknesses' are along the topographic surface.             Type: Ox = Oxide. FR = Fresh Rock. Recovery methods and results will differ based on the type of mineralization.

Luanga Trenching Program

Trenching across the strike of the outcrop/sub-crop aims to better interpret near surface mineralization and to reduce the distance/spacing between assay data points for later resource classification to the indicated category. The program continues to be highly successful.

Trenches TRC24LU009 to 012 and TRC23LU013 to 015 cover the northern end of the Central Sector (Figure 1). Trenching continues in the Central Sector, progressing towards the Southwest Sector. Figure 4 shows the location of trenches reported in this press release.

Figure 1: Trenching in the Central Sector. (CNW Group/Bravo Mining Corp.)

Trenching results continues to highlight significant expansion in the lateral extent of shallow oxide mineralization, which extends out across the topographic high that is a ridge and down its flanks, along the 8.1km strike length of the Luanga deposit. Results continue to confirm the presence of supergene enrichment in the saprolite zone (above the base of oxidation), encountering grades that are generally higher than MRE average grades for oxide mineralization. Grades are supported by shallow intersections in nearby drillholes, and as reported in previous trench results (see December 14th 2023, September 26th 2023 and May 08th, 2023).

Figure 2 (Section 1) demonstrates the extent of surface oxide mineralization, in comparison to the narrower zones of primary (fresh rock) mineralization in drilling below the trench. This "mushrooming" of oxide mineralization in the supergene zone demonstrates the potential for volumetric growth in future oxide mineral resources that were previously not possible to define by drilling alone.

Trenching to date continues to be successful, and is likely to enhance future MREs, all while being very cost effective. Trenching is planned to continue along the entire 8.1km strike length of the Luanga deposit, with work now progressing in the Central Sector

Figure 2: Central Sector (Section 1 on Figure 4) – Trenching showing supergene enrichment and lateral extents to surface mineralization. (CNW Group/Bravo Mining Corp.)

Figure 3 (Section 2) also shows a significant blanket of oxide mineralization at surface, in comparison to fresh rock mineralized widths in drilling below the trench. While the higher-grade zone within trench TRC23LU015 (17m at 2.30g/t PGM+Au) supports or improves on the highest-grade intersections encountered by drilling below.

The same sampling, assay laboratory procedures and QAQC protocols as applied to drill core sampling are applied to trench samples.

Luanga Drilling & Trenching Status

A total of 280 drill holes have been completed by Bravo to date, for 60,168.40 metres, including eight metallurgical holes (not subject to routine assaying). Results have been reported for 235 Bravo drill holes to date. Assay results for 37 Bravo drill holes that have been completed are currently outstanding (excluding the metallurgical holes). A total of 26 trenches have been completed to date, with results for 22 trenches reported and  results for four pending.

Figure 3: Central Sector (Section 2 on Figure 4) – Trenching showing supergene enrichment and lateral extents to surface mineralization. (CNW Group/Bravo Mining Corp.)

Complete Table of Recent Intercepts – Trenching

TRENCH-ID	From (m)	To (m)	Thickness (m)	Pd (g/t)	Pt (g/t)	Rh (g/t)	Au (g/t)	PGM + Au (g/t)	TYPE
TRC24LU009	143.70	218.15	74.45	0.66	0.42	0.07	0.04	1.20	Ox
TRC24LU010	44.70	69.90	25.20	0.40	0.19	0.04	0.05	0.67	Ox
	112.78	169.18	56.40	0.30	0.16	0.02	0.04	0.52	Ox
	173.18	245.78	72.60	0.73	0.53	0.09	0.04	1.39	Ox
TRC24LU011	58.70	60.70	2.00	1.47	0.25	0.01	0.11	1.84	Ox
	89.40	141.00	51.60	0.71	0.38	0.06	0.05	1.20	Ox
	142.00	163.60	21.60	0.51	0.26	0.04	0.01	0.83	Ox
	190.60	206.60	16.00	0.32	1.46	0.16	0.01	1.95	Ox
	206.60	228.90	22.30	0.18	0.31	0.04	0.01	0.54	Ox
TRC24LU012	47.60	162.57	114.97	0.89	0.64	0.12	0.06	1.71	Ox
TRC23LU013	25.80	183.90	158.10	0.71	0.43	0.08	0.04	1.27	Ox
Including	83.90	120.30	36.40	1.61	0.94	0.19	0.05	2.81	Ox
TRC23LU014	0.00	83.40	83.40	0.56	0.25	0.04	0.09	0.93	Ox
TRC23LU015	0.00	152.70	152.70	0.67	0.39	0.08	0.02	1.15	Ox
Including	0.00	17.30	17.30	1.27	0.86	0.15	0.03	2.30	Ox

Notes:  All 'From', 'To' depths, and 'Thicknesses' are along the topographic surface.             Type: Ox = Oxide. FR = Fresh Rock. Recovery methods and results will differ based on the type of mineralization.

Figure 4: Location of Bravo Trenches and Sections Reported in this News Release (CNW Group/Bravo Mining Corp.)

About Bravo Mining Corp.

Bravo is a Canadian and Brazil-based mineral exploration and development company focused on advancing its Luanga PGM+Au+Ni Project in the world-class Carajás Mineral Province of Brazil.

The Luanga Project is situated on mature freehold farming land and benefits from being in a location close to operating mines and a mining-experienced workforce, with excellent access and proximity to existing infrastructure, including road, rail, and clean renewable hydro grid power. A fully funded 63,000m infill, step out and exploration drilling and trenching program is well advanced for 2024. Bravo's current Environmental, Social and Governance activities includes planting more than 25,000 high-value trees in the project area, hiring and contracting locally, and ensuring protection of the environment during its exploration activities.

Technical Disclosure

Technical information in this news release has been reviewed and approved by Simon Mottram, F.AusIMM (Fellow Australia Institute of Mining and Metallurgy), President of Bravo Mining Corp. who serves as the Company's "qualified person" as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Mottram has verified the technical data and opinions contained in this news release.

Forward Looking Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "compare well", "elevated", "expect", "anticipated", "future results", "continue", "outstanding results", "positive impact", "potential", "successful", "interpretation", variants of these words and other similar words, phrases, or statements that certain events or conditions "may", "should" or "will" occur. This news release contains forward-looking information pertaining to the Company's ongoing trenching program; the interpretation of the results of trench data, including that the mineralization thickens in the saprolite, is locally supergene enriched, and the impact on future mineral resource estimates thereof; the potential that similar thickening and supergene enrichment may be present along the entire strike length of the Luanga deposit and the impact on mineral resource estimates thereafter; the potential future economics of the saprolite material, including the recoverability of PGMs and Au therein; the results of planned additional trenching; and the Company's plans in respect thereof. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, unexpected results from exploration programs, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, environmental risks, limitations on insurance coverage; and other risks and uncertainties involved in the mineral exploration and development industry. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including, but not limited to results from trenching reasonably reflect consistent zones of oxide mineralization and that future results from additional trenching will continue to see similar broad distribution of oxides with higher grades that the current MRE; that activities will not be adversely disrupted or impeded by regulatory, political, community, economic, environmental and/or healthy and safety risks; that the Luanga Project will not be materially affected by potential supply chain disruptions; and general business and economic conditions will not change in a materially adverse manner. 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. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.

Schedule 1: Trench Location Details

HOLE-ID	Company	East (m)	North (m)	RL (m)	Datum	Length (m)	Azimuth	Dip	Sector
TRC24LU009	Bravo	659340.68	9341162.14	222.07	SIRGAS2000_UTM_22S	218.15	330.00	0.00	Central
TRC24LU010	Bravo	659430.88	9341219.66	217.51	SIRGAS2000_UTM_22S	245.78	330.00	0.00	Central
TRC24LU011	Bravo	659505.67	9341288.04	216.41	SIRGAS2000_UTM_22S	228.90	330.00	0.00	Central
TRC24LU012	Bravo	659588.93	9341340.00	205.14	SIRGAS2000_UTM_22S	197.62	330.00	0.00	Central
TRC23LU013	Bravo	659672.34	9341393.00	203.64	SIRGAS2000_UTM_22S	183.90	330.00	0.00	Central
TRC23LU014	Bravo	659762.25	9341437.66	196.63	SIRGAS2000_UTM_22S	134.75	330.00	0.00	Central
TRC23LU015	Bravo	659828.70	9341524.80	211.30	SIRGAS2000_UTM_22S	152.70	330.00	0.00	Central

Schedule 2: Assay Methodologies and QAQC

Samples follow a chain of custody between collection, processing, and delivery to the SGS laboratory in Parauapebas, state of Pará, Brazil. The drill core is delivered to the core shack at Bravo's Luanga site facilities and processed by geologists who insert certified reference materials, blanks, and duplicates into the sampling sequence. Drill core is half cut and placed in secured polyurethane bags, then in security-sealed sacks before being delivered directly from the Luanga site facilities to the Parauapebas SGS laboratory by Bravo staff. Additional information about the methodology can be found on the SGS Geosol website (SGS) in their analytical guides. Information regarding preparation and analysis of historic drill core is also presented in the table below, where the information is known.

Quality Assurance and Quality Control ("QAQC") is maintained internally at the lab through rigorous use of internal certified reference materials, blanks, and duplicates. An additional QAQC program is administered by Bravo using certified reference materials, duplicate samples and blank samples that are blindly inserted into the sample batch. If a QAQC sample returns an unacceptable value an investigation into the results is triggered and when deemed necessary, the samples that were tested in the batch with the failed QAQC sample are re-tested.

Bravo SGS Geosol
Preparation	Method	Method	Method	Method
For All Elements	Pt, Pd, Au	Rh	Sulphide Ni, Cu	Trace Elements
PRPCLI (85% at 200#)	FAI515	FAI30V	AA04B	ICP40B

Bravo Mining Corp. Logo (CNW Group/Bravo Mining Corp.)

SOURCE Bravo Mining Corp.

Cision

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(Bloomberg) — Copper continued its upwards charge, hitting the highest since June 2022, as investors bet that curtailed ore supply will struggle to keep up with rising global demand.

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The metal has found itself strongly positioned after a mine-supply shock late last year that is now combining with better-than-expected consumption, as global manufacturing usage picks up. Prices are also drawing support as investors start to pivot into commodities as a hedge against renewed inflation fears.

Futures have risen about 11% on the London Metal Exchange this year. Copper jumped as much as 2.7% to $9,590.50 a ton Friday, after fresh data showing strong Chinese imports during March.

“The underlying narrative remains very positive, both from a challenged supply perspective and with regards to cyclical improvements in global growth,” said Marcus Garvey, the head of commodities strategy at Macquarie. “However, the near-term move looks to be driven by financial flows, both discretionary and systematic moment driven, and is arguably getting ahead of itself now.”

On the LME, hedge funds have increased their net long positions in copper to the highest since February 2021, according to data for the week through April 5. Investors have been focusing on signs of a recovering industrial sector in China, while disruptions at major mines have pressured margins at the Chinese processing plants that account for more than half the world’s supply, raising the prospect they will reduce output of refined metal.

Chinese trade data published Friday show imports of refined copper in the first quarter up 6.9% from a year earlier, even though the country has been expanding its domestic smelting capacity. An index of China’s manufacturing industry jumped at the end of March to indicate sector growth for the first time since last September.

“Investors now betting that China is recovering, demand is coming back, and also elsewhere, manufacturing activity is improving,” ING Bank commodities strategist Ewa Manthey said. “Plus, all the micro drivers are supportive like tightening supply of copper concentrates.”

Copper smelters have come under increasing pressure this year, as a supply squeeze on copper concentrates — a partially processed form of ore that is used to produce refined metal — has driven processing fees to the lowest levels in recent memory.

The concentrates market has tightened dramatically as smelters have expanded capacity while mine supply has been disrupted by the sudden shutdown of First Quantum Minerals Ltd.’s Cobre Panama mine, removing roughly 400,000 tons of the metal from the world’s annual supply. The outlook for mined copper tightened further after Anglo American Plc announced it was scaling back output by about 200,000 tons.

Those lost tons, while painful for First Quantum, Anglo and the Chinese smelters, have been a boon for rival producers. Antofagasta Plc, which mines the metal in Chile, has jumped 37% this year to trade at a record high.

The pressure on smelters is expected to eventually lead to cuts in refined copper production, although no major reductions have yet been announced. Still, data published this week showed that about 8.5% of China’s smelting capacity was inactive in the first quarter, compared with 4.1% a year earlier.

One potential headwind for prices is a buildup in refined copper stocks in China, while spot prices are also trading at a large discount to futures, a market structure which typically signals ample supply.

Copper’s price surge has coincided with a wider commodities bull run. Gold is currently trading at a record high, while analysts and trading houses are becoming bullish on oil hitting $100 a barrel.

“Copper has, just like several other commodities especially metals, increasingly become a buy on dip market with hedge funds adding exposure,” said Ole Hansen, Saxo Bank’s head of commodity strategy.

Copper rose 1.2% to $9,452.50 by 5:18 p.m. in London. In other metals, aluminum reached $2,500 a ton for the first time since February 2023, before paring the gains. Zinc traded 2.3% higher after touching its highest mark in almost a year.

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Vancouver, British Columbia–(Newsfile Corp. – April 11, 2024) – Flying Nickel Mining Corp. (TSXV: FLYN) (OTCQB: FLYNF) ("Flying Nickel" or the "Company") announces the results of an updated Mineral Resource Estimate ("MRE") prepared in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves ("MRMR") (2014) and CIM MRMR Best Practice Guidelines (2019) for its 100% owned Minago nickel platinum group metals ("PGM") project ("Minago Project") in Manitoba's Thompson Nickel Belt in Canada.

The Minago Project MRE, effective date March 18th 2024, was prepared by Mercator Geological Services Limited ("Mercator") and includes a total Measured and Indicated ("M&I") Mineral Resource of 125,700 oz of platinum ("Pt"), 279,330 oz of palladium ("Pd"), and 689.53 million pounds of nickel ("Ni") (43.44 million tonnes grading 0.20 grams per tonne ("g/t") Pd, 0.09 g/t Pt, 0.72% Ni). Table 1 presents the updated Minago Project MRE.

Table 1: Minago Project Mineral Resource Estimate – Effective Date: March 18, 2024

Type	Ni % Cut-off	Category	Tonnes (millions)	Ni %	NiS %	Pd g/t	Pt g/t
In-Pit	0.29	Measured	11.53	0.74	0.53	0.21	0.09
		Indicated	24.44	0.63	0.43	0.16	0.07
		Measured and Indicated	35.97	0.67	0.46	0.18	0.08
		Inferred	3.14	0.66	0.35	0.14	0.06
Underground	0.75	Measured	0.39	0.97	0.75	0.28	0.12
		Indicated	7.08	0.97	0.75	0.29	0.12
		Measured and Indicated	7.47	0.97	0.75	0.29	0.12
		Inferred	6.05	0.97	0.75	0.18	0.08
Combined	0.29/0.75	Measured	11.92	0.75	0.54	0.22	0.09
		Indicated	31.52	0.71	0.5	0.19	0.08
		Measured and Indicated	43.44	0.72	0.51	0.2	0.09
		Inferred	9.2	0.86	0.61	0.16	0.07

 

Mineral Resource Estimate Notes:1.Mineral resources were prepared in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves ("MRMR") (2014) and CIM MRMR Best Practice Guidelines (2019). 2. In-Pit Mineral Resources are defined within an optimized pit shell with pit slope angles ranging between 40⁰ and 51⁰ and an overall 14.8:1 strip ratio (waste: mineralized material). 3. An exchange rate of 1.35 CAN$/US$ was applied. All prices are in US$ currency.4. Pit optimization parameters include: metal pricing at $9.20 per pound Ni, $1,035 per ounce of Pt, $1,380 per ounce of Pd; costs for mining at $1.35 per tonne of waste and $1.54 per tonne processed and an incremental mining cost of $0.03 per 12 meters ("m") below 244 meters above sea level ("masl"), processing at $11.64 per tonne processed, general and administrative ("G&A") at $3.38 per tonne processed; recoveries to concentrate of 72.9% sulphide Ni ("NiS") (average recovery above the cut-off grade ranging from 45.6% to 91.1%), 44% Pt, and 61% Pd; and a 60% concentrate payable for Pt and Pd. An average Ni recovery of 50% can be calculated using the average NiS recovery and the average ratio of NiS to Ni (68%) reported above the cut-off grade. A potential frac-sand overburden unit was assigned a value of $20 per tonne, a recovery factor of 68.8%, mining cost of $1.54 per tonne plus $0.03 per 12m below 244 masl, and processing cost of $6.30 per tonne processed. 5. In-Pit Mineral Resources are reported at a cut-off grade of 0.20% NiS within the optimized pit shell. The 0.20% NiS cut-off grade approximates a 0.29% Ni grade when applying the average ratio of NiS to total Ni for the In-Pit Mineral Resource. The cut-off grade reflects the marginal cut-off grade to define reasonable prospects for eventual economic extraction by open pit mining methods.6. Underground Mineral Resources are reported at a cut-off grade of 0.58% NiS. The 0.58% NiS cut-off grade approximates a 0.75% Ni grade when applying the average ratio of NiS to Ni (77%) for the Underground Mineral Resource. The cut-off grade reflects total operating costs of $59.46 per tonne processed and an average sulphide NiS recovery above the cut-off grade of 87% (ranging from 81% to 91%) to define reasonable prospects for eventual economic extraction by underground mining methods. 7. Deposit grades were estimated from 2 m downhole assay composites using Ordinary Kriging for Ni % and Inverse Distance Squared for Pd g/t and Pt g/t. No grade capping was applied. NiS % block values were calculated from Ni % block values using a regression curve based on Ni and NiS drilling database assay values. The model block size is 6 m (x) by 6 m (y) by 6 m (z). 8. Bulk density was applied on a lithological model basis and reflects averaging of bulk density determinations for each lithology. 9. Estimates of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. See the Company's latest annual and interim management's discussion and analysis for further details.10. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.11. Mineral Resource tonnages are rounded to the nearest 10,000 tonnes.

John Lee, CEO of Flying Nickel states: "This is an outstanding MRE update with an inaugural PGM resource and a 42% increase in the M&I nickel In-Pit Mineral Resource estimate. Those two factors will be studied further in Minago's on-going feasibility study. In a short time under Flying Nickel's watch, the Minago Project is now known for both its nickel and PGM endowment.

"Platinum is a key ingredient in hydrogen engines in the next generation electric vehicles planned by GM and Toyota. Hydrogen engines require up to 5 times more platinum compared to amounts required by today's catalytic converters. Our Minago Project potentially plays an important role in supplying key battery ingredients for the current and future generations of electric vehicles, catering to the North American market."

The updated MRE results in a 41.95% increase in the M&I In-Pit Mineral Resource to 531.31 million pounds of nickel over the previous MRE published in the Company's July 6, 2021 news release (35.97 million tonnes grading 0.67% Ni, 0.08 g/t Pt, 0.18 g/t Pd). The M&I In-Pit resource increase is attributed to the Company's 2022 drill program.

The PGM addition to the MRE is based on PGM assays before 2022, additional PGM assays from the Company's 2022 drill program, and the Company's 2023 PGM assay program on historic drill cores (refer to Company news releases dated September 7, 2022, October 11, 2022, November 14, 2022, January 16, 2023, March 30, 2023, April 19, 2023, May 4, 2023, May 29, 2023, July 12, 2023 and September 28, 2023). In total, 4,041 meters from 47 holes (drilled prior to 2021) were assayed for PGM in 2023. This expanded on the existing PGM sample dataset that includes 6 holes and 1,320 meters of PGM sampling completed by Flying Nickel in 2022 and 70 holes and 9,622 meters of PGM sampling completed by previous operators prior to 2021. A comparison between the 2024 and 2021 Minago Project Mineral Resources is presented in Table 2. Ounces, pounds, and tonnes in the table may not sum due to rounding.

Table 2: Comparison of the 2024 and 2021 Minago Project Mineral Resource Estimates

		Tonnes (millions)		Ni ('000,000 lbs)		2024 MRE ('000oz)
Type	Category	2024 MRE	% Difference from 2021 MRE	2024 MRE	% Difference from 2021 MRE	Pd	Pt
In-Pit	Measured	11.53	0.35%	188.1	1.72%	77.85	33.36
	Indicated	24.44	96.31%	339.45	79.24%	125.72	55
	Measured and Indicated	35.97	50.25%	531.31	41.95%	208.16	92.52
	Inferred	3.14	51.69%	45.69	75.64%	14.13	6.06
Underground	Measured	0.39	-36.07%	8.34	-23.44%	3.51	1.5
	Indicated	7.08	-64.02%	151.4	-54.68%	66.01	27.32
	Measured and Indicated	7.47	-63.18%	159.74	-53.62%	69.65	28.82
	Inferred	6.05	-65.39%	129.38	-55.83%	35.01	15.56
Combined	Measured	11.92	-1.49%	197.09	1.21%	84.31	34.49
	Indicated	31.52	-1.90%	493.38	-5.88%	192.54	81.07
	Measured and Indicated	43.44	-1.79%	689.53	-4.44%	279.33	125.7
	Inferred	9.2	-52.94%	174.43	-45.31%	47.33	20.71

 

The Minago Project has been the subject of over $50 million in exploration, a historical feasibility study and environmental permitting expenditures by various previous interests since 1980', the most recent of these being by Victory Nickel Inc. and Flying Nickel since the Company acquired the project in 2021. On July, 21, 2022, Flying Nickel submitted the Notice of Alteration ("NOA") to Environment Act Licence No. 2981 for the Minago Project. Flying Nickel expects to receive the final decision on the NOA in the fall of 2024.

A technical report prepared pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), which documents the MRE will be filed under the Company's profile on SEDAR+ within 45 days of the date of this news release.

Qualified Person

Matthew Harrington, P. Geo., of Mercator is responsible for technical disclosure regarding the Minago Project MRE contained in this press release. Mr. Harrington is an external consultant to and "independent" of the Company as this term is defined under NI 43-101.

The disclosure of scientific and technical information in this news release has been approved by Robert Smith, P. Geo., who is an external consultant of the Company, as well as "independent" of the Company and a "Qualified Person" as such terms are defined under NI 43-101.

Further information on the Company can be found at www.flynickel.com.

FLYING NICKEL MINING CORP.

ON BEHALF OF THE BOARD

John LeeChief Executive Officer

For more information about the Company, please contact:

Phone: Phone: 1.877.664.2535 / 1.877.6NICKELEmail: info@flynickel.com

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding Flying Nickel's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking information in this news release includes the estimated grade and quantity of Mineral Resources for the Minago Project, and anticipated uses of any future production from the project.

Forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance, events or results, and may not be indicative of whether such events or results will actually be achieved. A number of risks and other factors could cause actual results to differ materially from expected results discussed in the forward-looking statements, including but not limited to: inconsistencies of mineralization and grades; differing recovery rates; changes to project parameters as studies and plans continue to be refined; changes in business plans; ability to secure sufficient financing to advance the Company's project; maintaining cordial business relations with strategic partners and contractual counterparties; risks inherent to mineral resource estimation, including uncertainty as to whether mineral resources will be further developed into mineral reserves; the risk that mineral resources that are not mineral reserves do not have demonstrated economic viability; receiving and maintaining required permits and regulatory approvals to advance the project; maintaining the support of local communities and First Nations for the project; commodity pricing, demand and supply; and general market, industry and economic conditions. Additional risk factors are set out in the Company's latest annual and interim management's discussion and analysis, available on SEDAR+ at www.sedarplus.ca.

Forward-looking statements in this news release are made as of the date of this news release and are based on reasonable assumptions by management as of such date. There can be no assurance that actual results will be consistent with any forward-looking statements included herein. The Company undertakes no obligation to update or revise any forward-looking statements included herein to reflect circumstances or events that occur after the date of this news release, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/205011

VANCOUVER, BC / ACCESSWIRE / April 11, 2024 / Commerce Resources Corp. (TSXv:CCE)(FSE:D7H0)(OTCQX:CMRZF) (the "Company" or "Commerce") is pleased to announce the publication of a paper on rare earth element ("REE") mineral processing, which has been supported by sample material from the Ashram Rare Earth and Fluorspar Deposit, wholly owned by the Company, located in Nunavik, Quebec.

The paper, titled "Assessment of the impact of grinding conditions and water quality on the flotation of rare earth elements bearing minerals using hydroxamic acid" was published earlier this month in The Canadian Journal of Metallurgy and Materials Science, a peer-reviewed international journal.

The publication is part of an ongoing research and development program being carried-out as a collaboration between the Company, Université du Québec en Abitibi-Témiscamingue (UQAT), and Industrial Waste Technology Centre (CTRI). As part of its contribution to the work, the Company provided approximately 1.5 tonnes of Ashram Deposit material to be used as feed for the various test programs. The research and development test programs, targeted at optimization of flotation, are jointly funded through both Provincial and Federal grant mechanisms (see news release dated August 25, 2020).

Company President Chris Grove states, "we are grateful to have been in a position to contribute to this publication and, in general, the continued research and development of REEs in the province of Quebec. Quebec has a wealth of mineral potential, and in the REE space this includes the Ashram Rare Earth and Fluorspar Deposit held by the Company. The Company remains active in the academic space with grant supported collaborations ongoing with several provincial and federal institutions."

The Company is pleased to provide its continued support to the academic and institutional REE research and development industry through the supply of Ashram Deposit material and geological expertise, supporting the development of highly qualified personnel (HQP) in Canada. The Ashram Deposit outcrops at surface and has allowed for cost-effective collection of large amounts of material for test work. As such, the Company is actively engaged with various research and academic institutions to support the advancement of the REE industry in Canada, and in Quebec specifically.

About the Ashram Deposit

The Ashram Deposit ranks as one of the largest REE (and fluorspar) deposits globally, consisting of a monazite dominated, single mineralized body outcropping at surface, and has a footprint approximately 700 m along strike, over 300 m across, and 600 m deep, remaining open in several directions. The deposit hosts a measured resource of 1.6 million tonnes (Mt) at 1.77% rare earth oxide (REO) and 3.8% F, an indicated resource of 27.7 Mt at 1.90% REO and 2.9% F, and an inferred resource of 219.8 Mt at 1.88% REO and 2.2% F, at a cut-off grade of 1.25% REO (Effective Date July 5th, 2012). Note, mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

About Commerce Resources Corp.

Commerce Resources Corp. is a junior mineral resource company focused on the development of the Ashram Rare Earth and Fluorspar Deposit located in Quebec, Canada. The Company is positioned to become one of the lowest cost rare earth producers globally, with a specific focus on being a long-term supplier of mixed rare earth carbonate and/or NdPr oxide to the global market. The Ashram Deposit is characterized by simple rare earth (monazite, bastnaesite, xenotime) and gangue (carbonates) mineralogy, a large tonnage resource at favourable grade, and has demonstrated the production of high-grade (>45% REO) mineral concentrates at high recovery (>70%) in line with active global producers. In addition to being one of the largest rare earth deposits globally, Ashram is also one of the largest fluorspar deposits globally and has the potential to be a long-term supplier to the met-spar and acid-spar markets.

For more information, please visit the corporate website at www.commerceresources.com or email info@commerceresources.com.

On Behalf of the Board of Directors

COMMERCE RESOURCES CORP.

"Chris Grove"Chris GroveCEO and President Tel: 604.484.2700Email: cgrove@commerceresources.com Web: http://www.commerceresources.com

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

Forward Looking Statements

This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward looking statements in this news release include that that mixed REC is readily saleable; that partial separation of REEs will allow for the marketability of individual elements to be produced; that Ashram has the potential to become one of the largest fluorspar deposit and a long-term supplier to the met-spar and acid-spar markets; and that the Company is positioning to be one of the lowest cost rare earth element producers globally. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these events, activities or developments from coming to fruition include: that we may not be able to fully finance any additional exploration on the Ashram Project; that even if we are able raise capital, costs for exploration activities may increase such that we may not have sufficient funds to pay for such exploration or processing activities; the timing and content of any future work programs; geological interpretations based on drilling that may change with more detailed information; potential process methods and mineral recoveries assumptions based on limited test work and by comparison to what are considered analogous deposits that, with further test work, may not be comparable; testing of our process may not prove successful or samples derived from the Ashram Project may not yield positive results, and even if such tests are successful or initial sample results are positive, the economic and other outcomes may not be as expected; the availability of labour and equipment to undertake future exploration work and testing activities; geopolitical risks which may result in market and economic instability; and despite the current expected viability of the Ashram Project, conditions changing such that even if metals or minerals are discovered on the Ashram Project, the project may not be commercially viable; The forward-looking statements contained in this news release are made as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

SOURCE: Commerce Resources Corp.

View the original press release on accesswire.com

It is hard to get excited after looking at BHP Group's (ASX:BHP) recent performance, when its stock has declined 5.7% over the past three months. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to BHP Group's ROE today.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.

See our latest analysis for BHP Group

How Do You Calculate Return On Equity?

ROE can be calculated by using the formula:

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

So, based on the above formula, the ROE for BHP Group is:

20% = US$8.9b ÷ US$46b (Based on the trailing twelve months to December 2023).

The 'return' refers to a company's earnings over the last year. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.20.

Why Is ROE Important For Earnings Growth?

So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

BHP Group's Earnings Growth And 20% ROE

To start with, BHP Group's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 10%. Probably as a result of this, BHP Group was able to see a decent growth of 13% over the last five years.

We then compared BHP Group's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 21% in the same 5-year period, which is a bit concerning.

past-earnings-growth

Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is BHP worth today? The intrinsic value infographic in our free research report helps visualize whether BHP is currently mispriced by the market.

Is BHP Group Efficiently Re-investing Its Profits?

The high three-year median payout ratio of 94% (or a retention ratio of 5.6%) for BHP Group suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders.

Moreover, BHP Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 59% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio.

Conclusion

Overall, we feel that BHP Group certainly does have some positive factors to consider. As noted earlier, its earnings growth has been quite decent, and the high ROE does contribute to that growth. Still, the company invests little to almost none of its profits. This could potentially reduce the odds that the company continues to see the same level of growth in the future. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

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

(Bloomberg) — The copper industry is about to get a new leader as BHP Group overtakes Codelco in the global producer rankings, according to Bloomberg Intelligence estimates.

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As long as BHP’s giant Escondida mine in Chile continues to step up production, the Australian company will nudge past Codelco this year, disrupting the Chilean state-owned behemoth’s reign as No. 1, said Bloomberg Intelligence analyst Grant Sporre.

Still, Codelco may recover the top spot in the years ahead as it battles to recover from delays and missteps at its projects.

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