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Canada Carbon Inc.

Toronto, ON, Canada, July 12, 2023 (GLOBE NEWSWIRE) — Canada Carbon (the "Company") is pleased to announce that the Municipality of Grenville-sur-la-Rouge ("GSLR"), through a letter from its attorneys and a letter from its authorized municipal officer, has recognized that the Miller graphite mine project (“the Miller Project”), located within GSLR, is a mining project within the meaning of the first paragraph of section 246 of the Act respecting land use planning and development ("RLUPD"), and that the Commission de Protection du Territoire Agricole du Québec ("CPTAQ") may proceed with its analysis, effective immediately.

GSLR hereby acknowledges that its subdivision, zoning, construction, or other by-laws cannot impede the Company's graphite mine project in accordance with the Mining Act and are not enforceable against it. Consequently, GSLR’s attorneys have explicitly acknowledged the validity of the Company’s CPTAQ application. This recognition by GSLR holds significance, as it allows the CPTAQ to evaluate the Company's authorization application on the merits of the project and without any additional delays.

‘’Canada Carbon has always sought to have the Miller Graphite Project evaluated solely on its merits. That includes the Company’s demonstrated interest in being a good corporate citizen and intent to pursue the development of the project in the most responsible manner. The Company will continue to work closely with all relevant stakeholders to ensure that the Miller project is developed with respect for the highest environmental standards and host communities. We will maintain an ongoing dialogue with the Municipality of Grenville-sur-la-Rouge, regulatory agencies, and other local communities to ensure a responsible and sustainable approach to the development process while ensuring positive economic outcomes for the region the province as a whole." said Ellerton Castor, Chief Executive Officer and Director of Canada Carbon.

“For example, we have already commenced a significant drilling program designed to address certain questions raised about the hydrogeological profile of the project. We will continue to take a similarly proactive approach to the remainder of our licensing and permitting process”.

About Canada Carbon Inc.

Canada Carbon Inc. is a mining exploration and development company focused on the acquisition, exploration and development of graphite deposits. The Company holds a 100% interest in two strategic, past-producing graphite properties located in Quebec: the Miller Graphite Project located in Grenville-Sur-La-Rouge and the Asbury Graphite Mine located in Notre-Dame-du-Laus. Canada Carbon is committed to realizing its potential as a high-quality graphite producer while maintaining the highest standards of social and environmental responsibility. For more information on Canada Carbon's mining activities, please visit our website at www.canadacarbon.com.

CANADA CARBON INC.“Ellerton Castor”Chief Executive Officer and DirectorContact InformationE-mail inquiries: info@canadacarbon.comP: (905) 407-1212

(Bloomberg) — BHP Group Ltd. is calling for Australia to lift a longstanding ban on nuclear power as the country moves to decarbonize its electricity system.

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Nuclear “must be part of the conversation” in Australia, Laura Tyler, chief technical officer at the world’s biggest miner, said in an interview on Wednesday.

“To make sure we have that safe, reliable energy mix, we need to be able to mix it up” with nuclear complementing wind, solar, batteries and other sources of electricity, she said. “Everything needs to be on the table.”

The bulk of BHP’s earnings come from its Australian iron ore and coal mines, but the company also produces uranium, the fuel for nuclear reactors, at its Olympic Dam site in South Australia.

After being shunned due to safety concerns, nuclear energy is enjoying a resurgence in global popularity due to a shortage of natural gas following Russia’s invasion of Ukraine. The need to decarbonize electricity grids and the development of smaller and cheaper reactors is also making it more attractive.

Read More: Global Energy Crisis Spurs a Revival of Nuclear Power in Asia

Australia has never had nuclear power and there’s been a prohibition on its use in place since the 1990s. The Labor government supports the ban, arguing the country’s wealth of renewable resources means it’s not needed.

However, the opposition Liberal-National coalition wants it overturned, on the grounds that wind, solar and batteries can’t provide reliable baseload power to replace coal plants that are being phased out.

BHP aims to get to net zero across its operations by 2050, but warned last week that its emissions might rise in the short term.

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(Bloomberg) — Iron ore rallied along with copper after Chinese Premier Li Qiang said that growth has picked up this quarter and more stimulus was in store, boosting the outlook for consumption in the biggest metals importer.

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China will roll out more practical, effective measures to expand domestic demand and stoke market vitality, Premier Li told the World Economic Forum in Tianjin. Iron ore, used to make steel, surged by almost 4%.

In addition, Mike Henry, head of BHP Group Ltd., the world’s largest miner, urged the Chinese government to provide more help for the housing market, acknowledging recent data had been patchy. “We do think there’s room for a little bit more policy that is supportive,” he told reporters in Brisbane.

Industrial metals rallied at the start of the year as China reopened after Covid Zero was ditched, but the upswing stalled this quarter as manufacturing and the property market disappointed. While the central bank cut policy rates this month to aid the economy, investors expect more steps will follow, although it’s unclear if they’ll be enough to significantly revive growth.

“Once again, unbridled expectations of further stimulatory interventions are running rife,” said Atilla Widnell, managing director at Navigate Commodities Pte, “We fully expect intermittent upside price shocks to emanate from overly optimistic China and iron ore bulls, though bears will likely use this as an opportunity to sell.”

Iron ore traded 3.8% higher at $113.15 a ton in Singapore at 2:17 p.m., while steel futures in China also climbed. On the London Metal Exchange, copper gained 0.9% to $8,466 a ton as aluminum, zinc, lead, tin and nickel all rose more than 1%. For nickel, the day’s gain came after it closed on Monday at the lowest level since July 2022.

Copper’s upside potential was also in focus after an especially bullish, long-term forecast from billionaire Robert Friedland, who said that prices could ultimately rally tenfold as the global mining industry struggled to meet accelerating demand given the energy transition.

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(Bloomberg) — BHP Group Ltd. Chief Executive Officer Mike Henry has warned too much government intervention in global critical minerals supply chains could undermine efforts to fight climate change.

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The boss of the world’s biggest mining company said it was “understandable” that nations were scrambling to secure domestic supply of the metals needed in renewable energy and electric vehicles, but warned against an excessively domestic focus and over-reliance on the “sugar hit” of state-provided subsidies.

“Governments striving to secure their own critical mineral supplies must ensure they don’t undermine the outcome the world needs to achieve – where in fact a combination of pragmatic international cooperation and competition can jointly accelerate the energy transition,” Henry said a conference in Brisbane on Tuesday.

Australia Cautious on Chinese Investment in Vital Lithium Sector

Henry’s warning comes as global competition for minerals such as lithium, nickel, cobalt and rare earths continues to heat up as nations and industry rush to meet ambitious emissions reduction goals. China controls a large chunk of supply chains of these minerals, which has worried the US, Europe and other economies.

The US Inflation Reduction Act, legislated last year, set aside almost $400 billion to subsidize clean energy, and the US has set up partnerships with allies, including key miner Australia, to build critical mineral supply chains that exclude China.

While Henry didn’t explicitly criticize these efforts in his speech, he said any moves to mimic the new law in a smaller country like Australia would be “a losing proposition.”

“What governments here – federal and state – should focus on are those things within their control to make investment fundamentally more attractive,” he said.

Meanwhile, Henry also urged the Chinese government to provide more support for the struggling housing market, which is a major driver of steel demand, acknowledging recent economic data from the nation was “a little patchy.”

China Economy Gloom Worsens With Weak Consumer Spending Data

“We do think there’s room for a little bit more policy that is supportive of housing and housing new starts,” he told reporters after the speech. Still, he remained optimistic about the outlook for steel and iron ore demand, saying: “Our expectation remains that the second half will be stronger than the first.”

(Updates with Henry’s China housing comments from penultimate paragraph)

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REE Automotive Ltd.

Carlton Rose

Carlton Rose joins REE Automotive’s board of directors

TEL AVIV, Israel, June 27, 2023 (GLOBE NEWSWIRE) — REE Automotive Ltd. (Nasdaq: REE) today announced that Carlton Rose, former global president of fleet maintenance and engineering at UPS, has been appointed to the company’s board of directors, effective immediately.

“Carlton, who spent 42 years at UPS, is one of the most experienced and respected fleet leaders in the world bringing invaluable expertise and a wealth of experience to REE,” said Arik Steinberg, chairman of REE. “We will greatly benefit from his management and industry experience as we continue to shape our long-term vision and strategy.”

“I am excited to join REE’s board of directors at this paramount time in the company’s evolution,” said Carlton Rose. “Over several years I have watched it transform from a startup to a company focused on scaling production as a highly innovative and commercially competitive electric vehicle solution. I look forward to applying my strategic expertise and insights of the industry, as former global president of fleet maintenance and engineering at UPS, managing over 330,000 pieces of equipment around the world.”

“During my time at UPS, I led the development and deployment of over 16,000 low and zero emission, alternate fuel and advanced technology vehicles,” Rose continued. “REE’s focus on innovation, electrification and automation provide a compelling foundation to accelerate e-mobility across multiple vehicle classes, use cases and applications. I believe that better is before us and that REE will come out a leader in the commercial EV industry.”

“It has been exactly four years since we first met Carlton and his team in Tel Aviv where we presented the REEcorner tech to UPS,” said Daniel Barel, co-founder and CEO of REE. “Carlton’s deep industry knowledge and real-life experience in new technology introduction will be of immense addition to REE as we continue to strengthen strategic partnerships with industry-leading dealers and fleet customers.”

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

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

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

About REE AutomotiveREE Automotive (Nasdaq: REE) is an automotive technology company that allows companies to build any size or shape of electric vehicle on their modular platforms. With complete design freedom, vehicles Powered by REE are equipped with the revolutionary REEcorner, which packs critical vehicle components (steering, braking, suspension, powertrain and control) into a single compact module positioned between the chassis and the wheel, enabling REE to build the industry’s flattest EV platforms with more room for passengers, cargo and batteries. REE platforms are future proofed, autonomous capable, offer a low TCO, and drastically reduce the time to market for fleets looking to electrify. To learn more visit www.ree.auto.

Caution About Forward-Looking StatementsThis communication includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding REE or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to plans, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “aim” “anticipate,” “appear,” “approximate,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “would”, “designed,” “target” and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements in this communication may include, among other things, statements about REE’s strategic and business plans, technology, relationships, objectives and expectations for our business, the impact of trends on and interest in our business, intellectual property or product and its future results, operations and financial performance and condition.

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

Uncertainties and risk factors that could affect REE’s future performance and could cause actual results to differ include, but are not limited to: REE’s ability to commercialize its strategic plan, including its plan to successfully evaluate, produce and market its newest medium-duty electric box truck built on a P7 cab chassis, as discussed in this press release; REE’s ability to maintain and advance relationships with current Tier 1 suppliers and strategic partners; development of REE’s advanced prototypes into marketable products; REE’s ability to grow and scale manufacturing capacity through relationships with Tier 1 suppliers; REE’s estimates of unit sales, expenses and profitability and underlying assumptions; REE’s reliance on its UK Engineering Center of Excellence for the design, validation, verification, testing and homologation of its products; REE’s limited operating history; risks associated with plans for REE’s initial commercial production; REE’s dependence on potential suppliers, some of which will be single or limited source; development of the market for commercial EVs; intense competition in the e-mobility space, including with competitors who have significantly more resources; risks related to the fact that REE is incorporated in Israel and governed by Israeli law; REE’s ability to make continued investments in its platform; the impact of the ongoing COVID-19 pandemic and any other worldwide health epidemics or outbreaks that may arise; and adverse global conditions, including macroeconomic and geopolitical uncertainty; the need to attract, train and retain highly-skilled technical workforce; changes in laws and regulations that impact REE; REE’s ability to enforce, protect and maintain intellectual property rights; REE’s ability to retain engineers and other highly qualified employees to further its goals; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 28, 2023 and in subsequent filings with the SEC.

A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/0dad5048-7885-422f-b639-c5cfdb9d203e

Mining’s biggest companies are already using artificial intelligence for a variety of purposes such as improving safety and efficiency. The mineral exploration company, through AI, discovers rare earth metals needed to power electric vehicles (EV). If KoBold is successful over time, this could be a big win for its investors — and for the EV industry.

(Bloomberg) — BHP Group Ltd. is warning its carbon emissions will rise in the short term, with rapid technological advances and industrial collaboration needed if the mining giant is to reach its goal of net zero emissions by 2050.

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The world’s biggest miner is on track to meet its target of a 30% reduction in operational emissions by 2030 at a cost of around $4 billion, it said Wednesday. Still, it expects a “near-term increase in emissions from production growth” from current levels, Graham Winkelman, the group’s head of carbon management, said in an investor briefing.

Carbon reduction technologies “must advance quickly from where it is now” and needs to include collaborations “with our vendors and industry,” BHP said in a presentation. The Melbourne-based company’s path to net zero would be “non-linear,” it added, with emissions rising before falling again by the end of the decade.

What It Would Take to Make Steelmaking Greener: QuickTake

The major iron ore, coal and copper producer plans to reduce its operational (Scope 1 and 2) greenhouse gas emissions by at least 30% on 2020 figures by 2030, and reach net zero in those emissions by 2050. Those targets don’t include “Scope 3” emissions, including those from end-users such as steelmakers and other customers.

The admission of short-term increases in emissions from BHP comes even as its environmental targets remain less ambitious than those of its peers. Rio Tinto Group, which is a bigger emitter, aims to reduce its Scope 1 and 2 emissions by 50% by 2030 from a 2018 baseline, while Fortescue Metals Group Ltd. is aiming to reach net zero by that year.

Around 75% of the $4 billion that BHP plans to spend on decarbonization by 2030 will be spent on replacing diesel use in haul trucks. It favors battery-powered haul trucks over hydrogen power because they are more than twice as efficient, Anna Wiley, the vice president of planning and technical in the company’s Australian minerals division, said on the conference call.

‘Dynamic Charging’

BHP will trial “dynamic charging” at its mines in Western Australia and Chile, allowing trucks to be charged while they are still in operation. It said its unfinished Jansen potash mine in Canada, which is due to start producing the fertilizer ingredient in 2026, would use 80% electric haul trucks from day one.

The company’s Australian iron ore mines are not connected to the grid and are powered by purpose-built gas generators. A switch to electric haul trucks will see power demand surge, and BHP plans to build 500 megawatts of renewables and storage to meet growing demand and decarbonize its electricity emissions, it said. It will also explore options for plugging into to a wider regional grid.

BHP’s coal mines in Queensland are the single biggest emitters in its Australian operations, producing almost half its pollution. Around a third of that comes from methane escaping from the coal seams, Wiley said.

It aims to capture about 50% of that methane and use it to generate electricity or sell to third parties, and said it was “exploring” options for the rest, adding that carbon offsets would likely be needed.

Still, of the $4 billion it plans to spend on decarbonization by 2030, BHP allocated a negligible amount to methane, with diesel, electricity and gas emissions the main targets. The company’s Western Australian iron ore division will be the biggest recipient of decarbonization investment between now and 2030, followed by the Escondida copper mine in Chile, it said.

(Updates with haul truck plans in 6th, 7th paragraphs)

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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

2 Stocks to Add to Your Watchlist

The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.

The final step today is to look at a stock that meets our ESP qualifications. Steel Dynamics (STLD) earns a Zacks Rank #3 29 days from its next quarterly earnings release on July 19, 2023, and its Most Accurate Estimate comes in at $5.11 a share.

By taking the percentage difference between the $5.11 Most Accurate Estimate and the $5.10 Zacks Consensus Estimate, Steel Dynamics has an Earnings ESP of 0.2%.

STLD is one of just a large database of Basic Materials stocks with positive ESPs. Another solid-looking stock is Southern Copper (SCCO).

Southern Copper, which is readying to report earnings on July 25, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.03 a share, and SCCO is 35 days out from its next earnings report.

Southern Copper's Earnings ESP figure currently stands at 10.36% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.93.

Because both stocks hold a positive Earnings ESP, STLD and SCCO could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're Reported

Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

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

Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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(Bloomberg) — Woodside Energy Group Ltd. gave the go-ahead for a $7.2 billion oil field off Mexico, the Australian producer’s first major fossil fuel investment since acquiring BHP Group Ltd.’s petroleum business last year.

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The Trion oil field, a joint venture with state-owned oil company Petroleos Mexicanos, will be Mexico’s first offshore deepwater oil project, according to Woodside. It has estimated resources of 479 million barrels of oil equivalent, and first production is expected in 2028, the Perth-based company said Tuesday.

Woodside, Australia’s biggest oil and gas producer, has come under intense pressure from activists and shareholders for its fossil fuel expansion plans, but has said new projects are necessary and can be consistent with global emission reduction goals. The company in February said it would review potential acquisitions in the Gulf of Mexico after reporting its highest-ever profit thanks to surging prices and the integration of BHP’s former energy unit.

“We have considered a range of oil demand forecasts and believe Trion can help satisfy the world’s energy requirements,” Chief Executive Officer Meg O’Neill said in a statement, adding two-thirds of the Trion resource was “expected to be produced within the first 10 years after start-up.”

Woodside inherited a 60% stake in Trion from BHP and will invest $4.8 billion in the project, subject to clearance from Pemex and regulatory approval expected in the fourth quarter. The field’s floating production unit will have capacity to produce 100,000 barrels of oil a day.

Woodside is also developing the vast Scarborough gas field off the coast of Western Australia and plans other oil and gas projects. It also intends to invest in clean hydrogen manufacture.

The company has been the subject of numerous shareholder resolutions from climate activists. One of its directors received the lowest support in a decade in April and 49% of shareholders rejected its climate report last year.

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(Bloomberg) — A total of 19 trains carrying coal to Australia’s flagship export hub for the fuel were disrupted after a protester suspended themselves from two poles over rail tracks.

Part of a rail line in Kooragang, close to the Port of Newcastle in New South Wales state, was halted for more than four hours from 7 a.m. local time Monday, according to the Australian Rail Track Corp., which manages the network.

A 22-year-old woman was arrested at the scene after law enforcement removed the structure from the tracks, New South Wales police said in a statement.

Australia’s status as the world’s No. 2 coal exporter has long been a focus for activists who argue the nation’s sales of the fossil fuel are a key contributor to global emissions. While Prime Minister Anthony Albanese has legislated more ambitious national climate targets, his government has also shown support for a coal sector forecast to generate about A$128 billion ($88 billion) in export earnings this fiscal year.

Blockade Australia’s demonstration at Kooragang was “a response to Australia’s destruction of the climate,” the campaign group said in a message posted to Twitter. Two separate protests also took place Monday near the Port of Melbourne and Port of Brisbane, the organization said.

Newcastle Coal Infrastructure Group, which handles coal exports for producers including BHP Group Ltd., Yancoal Australia Ltd. and Whitehaven Coal Ltd., didn’t immediately respond to a request for comment.

BHP declined as much as 1.1% in Sydney by 1:08 p.m., as Whitehaven fell as much as 3.9% and Yancoal by as much as 2.8%.

More stories like this are available on bloomberg.com

Southern Copper (NYSE:SCCO) has had a great run on the share market with its stock up by a significant 8.1% over the last month. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Specifically, we decided to study Southern Copper's ROE in this article.

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

See our latest analysis for Southern Copper

How Is ROE Calculated?

The formula for ROE is:

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

So, based on the above formula, the ROE for Southern Copper is:

33% = US$2.7b ÷ US$8.2b (Based on the trailing twelve months to March 2023).

The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.33.

What Is The Relationship Between ROE And Earnings Growth?

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

A Side By Side comparison of Southern Copper's Earnings Growth And 33% ROE

First thing first, we like that Southern Copper has an impressive ROE. Second, a comparison with the average ROE reported by the industry of 13% also doesn't go unnoticed by us. Under the circumstances, Southern Copper's considerable five year net income growth of 24% was to be expected.

As a next step, we compared Southern Copper's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 31% in the same period.

past-earnings-growth

Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Southern Copper's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is Southern Copper Using Its Retained Earnings Effectively?

Southern Copper's significant three-year median payout ratio of 84% (where it is retaining only 16% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders.

Additionally, Southern Copper has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 80% of its profits over the next three years. Accordingly, forecasts suggest that Southern Copper's future ROE will be 34% which is again, similar to the current ROE.

Summary

In total, it does look like Southern Copper has some positive aspects to its business. Its earnings growth is decent, and the high ROE does contribute to that growth. However, investors could have benefitted even more from the high ROE, had the company been reinvesting more of its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.

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

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/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, BC, June 15, 2023 /CNW/ – Bravo Mining Corp. (TSXV: BRVO) (OTCQX: BRVMF) ("Bravo" or the "Company") announces that it has closed the previously announced private placement offering (the "Concurrent Private Placement") of common shares of the Company (the "Common Shares"). Pursuant to the Concurrent Private Placement, the Company has issued 1,504,992 Common Shares at a price of C$3.50 per Common Share for gross proceeds of C$5,267,472. Along with the completion of the public offering, which included the full exercise of the Agents' (as defined below) over-allotment option (the "Public Offering"), which was previously announced in the Company's news release dated June 8, 2023, the aggregate gross proceeds of the Public Offering and Concurrent Private Placement together are C$25,034,306.50. Following the Public Offering and the Concurrent Private Placement, the Company's issued and outstanding Common Shares total 108,152,660.

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

The Public Offering and Concurrent Private Placement were co-led by Canaccord Genuity Corp., National Bank Financial Inc. and BMO Capital Markets on behalf of a syndicate that included Cormark Securities Inc. and Raymond James Ltd. (collectively, the "Agents"). Cozen O'Connor LLP acted as legal counsel to Bravo and Cassels Brock & Blackwell LLP acted as legal counsel to the Agents.

"I am pleased with the outcome of our public offering and concurrent private placement and on behalf of Bravo's team, I would like to thank all parties involved as well as the support received from both existing and new shareholders", said Luis Azevedo, Chairman and CEO of Bravo. "The funds were raised at a premium of 100% from the IPO price in July 2022 and with limited dilution to existing shareholders, which underscores the recognition of the steady progress thus far we have made in advancing and unlocking the potential of our Luanga Project".

In connection with the Concurrent Private Placement, the Company has paid the Agents a cash commission in the aggregate amount of C$181,693 equal to 5.0% of the gross proceeds of the Concurrent Private Placement, other than in respect of sales to certain purchasers on the president's list in which case the cash commission was reduced to 2.5%.

The Common Shares issued pursuant to the Concurrent Private Placement are subject to resale restrictions under applicable Canadian securities legislation until October 16, 2023.

The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Bravo Mining Corp.

Bravo is a Canada 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 benefits from being in a location close to operating mines, with excellent access and proximity to existing infrastructure, including road, rail and clean and renewable hydro grid power. The project area was previously de-forested for agricultural grazing land. Bravo's current Environmental, Social and Governance activities includes replanting trees in the project area, hiring and contracting locally, engagement with local communities, and ensuring protection of the environment during its exploration activities.

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

SOURCE Bravo Mining Corp.

Cision

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2023/15/c5931.html

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:

Anglo American plc NGLOY is a mining company. The Zacks Consensus Estimate for its current year earnings has been revised 16.8% downward over the last 60 days.

Enerplus Corporation ERF is an oil and gas exploration and development company. The Zacks Consensus Estimate for its current year earnings has been revised 17% downward over the last 60 days.

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A handful of mining stocks were at the bottom of the FTSE 100 index on Monday as concerns over the prospect of a global economic slowdown continued to weigh on the minds of investors.

Anglo American (AAL.L), Antofagasta (ANTO.L), Fresnillo (FRES.L), Rio Tinto (RIO.L) and Endeavour Mining (EDV.L) were among the companies at the bottom of the basket, at the time of writing, as metal prices remained under pressure due to demand fears.

“A stronger dollar, weakening global manufacturing activity and a weaker-than-expected economic recovery in China have weighed on metals commodities lately, as well as on mining stocks,” Piero Cingari, independent macro analyst, told Yahoo Finance.

“Despite that I’m optimistic about gold miners for the second half of the year. There are many players (one is Newmont (NEM)) trading at heavily discounted valuations compared to the current price of gold. I think the market is awaiting the results of this quarter before reversing the trend,” he added.

Cingari also said he’s “slightly less bullish on copper miners” until there’s more policy stimulus to be seen in China.

Metal prices outlook

The latest slump in mining stocks comes after the World Bank recently projected metal prices to fall by 8% in 2023, and a further 3% in 2024.

It also highlighted in its recent commodities report that the first quarter of this year reflected optimism on a strong China recovery with the bank’s metals and minerals price index rising 10%.

However, it noted how that sentiment changed and most prices receded from their January highs by the end of the quarter.

It said a recovery in production is expected to lower aluminium prices (ALI=F) by 11% in 2023, while copper prices (HG=F) are forecast to fall 4%, compared with last year – and by a further 6% in 2024. Meanwhile, it forecast nickel prices to drop by about 15% in 2023.

“In the longer term, however, the energy transition could significantly lift the demand for some metals, notably lithium, copper, and nickel,” said World Bank lead economist Valerie Mercer-Blackman – and as also recently reported by Yahoo Finance.

Year-to-date performance

Matt Britzman, an equity analyst at Hargreaves Lansdown, shared with Yahoo Finance an overview of how mining stocks have performed for the year-to-date.

“2023 has seen a reversal of fortunes for many of the largest miners in the FTSE 100. The mix of higher interest rates, sticky inflation, and growing concerns about potential recessions across the globe means the prices of key commodities have come down. Earlier in the year, we saw the effect when many of the largest miners reported falling profits at full-year results.

“But it's worth taking a step back and remembering we're coming off the back of a period of booming prices. 2021 and 2022 saw record prices for several key commodities, like copper, iron ore and coal, as global economies came out of lockdown periods and war broke out in Ukraine, sending energy markets into turmoil. The picture has changed, as is the life of a miner, and rising costs along with weaker economic growth have weighed on the sector,” he said.

Britzman also noted how “riding the cycle” is “part and parcel of investing” in a cyclical sector, and said it's more important to focus on the longer-term growth drivers – of which there are many.

“The energy crisis seen over 2022 and a global push toward net-zero by 2050 both support the same message – a need to decarbonise, lower costs, and boost resilience. Reaching those targets means rethinking how we live and work, whilst improving technologies to enable that," he added.

"That means a shift in the demand dynamics for a host of metals needed to expand renewable energy sources, evolving battery technology, and build green infrastructure. There's an opportunity there for a host of companies in the sector."

The analyst also highlighted how the picture for gold (GC=F) has been somewhat different with its price rising over the past 18 months to reach record highs as investors and central banks piled cash into the asset, seen as a safe haven in difficult times.

“That'll be a tailwind for gold miners, and one that's likely to continue over the year as uncertainty looks set to remain,” Britzman concluded.

Watch: Markets in 3 Minutes: Fed and PBOC Matter More Than ECB and BOJ

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(Adds quote from Samarco in paragraph 9)

May 31 (Reuters) – Brazilian miner Vale said late on Wednesday night it had entered into a binding deal on the parameters for a planned debt restructuring at Samarco , a joint venture it shares with miner BHP Group .

Vale said it had agreed on the deal with Samarco, BHP Billiton Brasil and certain creditors that hold more than 50% of Samarco's notes and unsecured bank debt.

The entire restructuring plan still needs approval from the bankruptcy court and the creditors.

In a securities filing, Vale said Samarco should emerge from the recovery process with a "lean capital structure" under the terms agreed and that payments to its creditors will be made over time, in line with Samarco's cash flow and ramp-up of operations.

"Samarco's contribution to fund the reparation will be capped from 2024 to 2030 at $1 billion," Vale said, adding that additional contributions from the joint venture would depend on "excess cash flow" it generates.

The remaining reparation balance should be equally shared between Vale and BHP, it said.

Separately, Samarco restructuring director Luiz Fabiano Saragiotto said all parties had made efforts to reach the current agreement, and that "with important concessions, this could allow for a balanced and lasting plan."

Samarco has for years struggled to reach an agreement with its creditors, who rejected Samarco's initial recovery plan in April last year.

Samarco's debt problems stem from the collapse of an iron ore tailing dam in the southeastern city of Mariana, which killed 19 people and severely polluted the Doce River with mining waste. (Reporting by Roberto Samora and Peter Frontini; Writing by Carolina Pulice; Editing by Sarah Morland and Tom Hogue)

May 31 (Reuters) – Brazilian miner Vale said on Wednesday night it had entered into a binding deal on the parameters for a planned debt restructuring at Samarco , a joint venture it shares with miner BHP Group .

Vale said it had agreed the deal with Samarco, BHP Billiton Brasil and certain creditors. (Reporting by Roberto Samora and Peter Frontini; Writing by Carolina Pulice; Editing by Sarah Morland)

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about… and every practical investor I know worries about.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Southern Copper Corporation (NYSE:SCCO) does carry debt. But is this debt a concern to shareholders?

When Is Debt A Problem?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.

View our latest analysis for Southern Copper

What Is Southern Copper's Debt?

The image below, which you can click on for greater detail, shows that Southern Copper had debt of US$6.25b at the end of March 2023, a reduction from US$6.55b over a year. On the flip side, it has US$2.44b in cash leading to net debt of about US$3.81b.

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

The latest balance sheet data shows that Southern Copper had liabilities of US$1.25b due within a year, and liabilities of US$7.89b falling due after that. On the other hand, it had cash of US$2.44b and US$1.33b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$5.37b.

Given Southern Copper has a humongous market capitalization of US$51.8b, it's hard to believe these liabilities pose much threat. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward.

In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.

Southern Copper has a low net debt to EBITDA ratio of only 0.74. And its EBIT covers its interest expense a whopping 15.2 times over. So we're pretty relaxed about its super-conservative use of debt. In fact Southern Copper's saving grace is its low debt levels, because its EBIT has tanked 30% in the last twelve months. When it comes to paying off debt, falling earnings are no more useful than sugary sodas are for your health. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Southern Copper can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. Over the most recent three years, Southern Copper recorded free cash flow worth 56% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.

Our View

Southern Copper's EBIT growth rate was a real negative on this analysis, although the other factors we considered were considerably better. There's no doubt that its ability to to cover its interest expense with its EBIT is pretty flash. When we consider all the elements mentioned above, it seems to us that Southern Copper is managing its debt quite well. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. These risks can be hard to spot. Every company has them, and we've spotted 3 warning signs for Southern Copper (of which 2 are a bit unpleasant!) you should know about.

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.

BHP Group Limited

Laguna Seca concentrator at Escondida

By using real-time plant data from the concentrators in combination with AI-based recommendations, the concentrator operators at Escondida will have the ability to adjust operational variables that affect ore processing and grade recovery.

MELBOURNE, Australia, May 30, 2023 (GLOBE NEWSWIRE) — A new collaboration between BHP and Microsoft has used artificial intelligence and machine learning with the aim of improving copper recovery at the world’s largest copper mine.

The use of new digital technology to optimise concentrator performance at BHP’s Escondida operation in Chile is expected to improve copper recovery.

BHP Chief Technical Officer Laura Tyler said by augmenting new digital technology capabilities with new ways of working, the team at Escondida is well-positioned to generate more value from an existing resource.

“We expect the next big wave in mining to come from the advanced use of digital technologies. As grades decline at existing copper mines and fewer new economic discoveries are made, next-generation technologies like artificial intelligence, machine learning and data analytics will need to be used to unlock more production and value from our existing mines,” she said.

BHP estimates the world would need to double the amount of copper produced over the next 30 years, relative to the past 30, to keep pace with the development of decarbonisation technology such as electric vehicles, offshore wind and solar farms assumed under its 1.5 degree scenario1.

“We are excited to partner with BHP on this transformative project that demonstrates the power of AI, machine learning and cloud technologies,” said John Montgomery, CVP, AI Platform at Microsoft.

By using real-time plant data from the concentrators in combination with AI-based recommendations from Microsoft’s Azure platform, the concentrator operators at Escondida will have the ability to adjust operational variables that affect ore processing and grade recovery.

BHP is a top three global producer of copper and has the largest copper endowment of any company globally2. BHP has operated Escondida, an open-cut mine located in the Atacama Desert in the Antofagasta Region of northern Chile, for over 30 years.

Escondida produces over one million metric tonnes of copper per annum. The concentrator circuit is responsible for extracting, floating and collecting the copper mineral from crushed and milled ore.

Laguna Seca concentrator at Escondida

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/125d396c-04fa-40f3-9097-ea07a28432a3

BHP media contacts

Australia:Josie BrophyMobile: 0417 622 839Email: josephine.brophy@bhp.com

Chile:Renata FernándezMobile: +56 9 82295357Email: renata.fernandez@bhp.com

1 For information about the assumptions, outputs and limitations of this 1.5°C scenario refer to the BHP Climate Change Report 2020 available at bhp.com.2 Based on ownership interest. Peers include: Anglo American, Antofagasta, Codelco, First Quantum Minerals, Freeport, Glencore, Rio Tinto, Southern Copper and Teck. Source peers: Wood Mackenzie Ltd, Q1 2022.

MELBOURNE (Reuters) – BHP Group has teamed up with Microsoft Corp to improve copper recovery from its Escondida mine in Chile, the world's biggest copper mine, by using machine learning and artificial intelligence, it said on Tuesday.

BHP estimates the world needs to double the amount of copper produced over the next 30 years to keep pace with the development of decarbonisation technology such as electric vehicles, offshore wind and solar farms.

Finding and building new mines is costly, difficult and can take upwards of a decade so miners are looking to next generation technologies to reap more metal out of existing mines and processes.

"We expect the next big wave in mining to come from the advanced use of digital technologies" BHP Chief Technical Officer Laura Tyler said in the company statement.

Using real-time data from plants that process ore in combination with AI-based recommendations from Microsoft’s Azure platform, plant operators will have the ability to adjust variables that affect ore processing and grade recovery, BHP said.

BHP, the world's biggest miner, is the majority owner of Escondida and operates the mine with partners Rio Tinto, and Japan's JECO Corp. Escondida produced more than 1 million tonnes of copper during the last financial year ending in June.

(Reporting by Melanie Burton; Editing by Christian Schmollinger)

CALGARY, AB, May 30, 2023 /CNW/ – Uravan Minerals Inc. ("Uravan" or the "Company") (TSXV: UVN) held its Annual General and Special Meeting of shareholders on May 23, 2023, for the financial year ended December 31, 2022 (the "Meeting"). At the Meeting the shareholders passed, among other things, an ordinary resolution approving the Company's acquisition of Nuclear Fuels Inc. ("Nuclear Fuels") (the "Transaction") as contemplated in the Business Combination Agreement dated April 19, 2023 (the "Definitive Agreement"), announced in a press release May 8, 2023.

Summary of the Transaction

The Transaction, as approved by the shareholders at the Company's Meeting, includes:

the acquisition of all of the outstanding shares of Nuclear Fuels in exchange for 41,750,225 post-consolidated common shares of the Company. It is expected that shareholders of Nuclear Fuels will hold an aggregate of approximately 90.4% of the Resulting Issuer's common shares, with current shareholders of the Company holding the remaining the remaining 9.6%.
a name change from Uravan Minerals Inc. to Nuclear Fuels Inc.,
a share consolidation of the Company's Common Shares on the basis of one existing common share for each eight-tenths (0.8) of one post-consolidation common share,
the continuation of the Company from Alberta to British Columbia, and
the listing of the common shares of the Company following completion of the Transaction (the "Resulting Issuer") on the Canadian Securities Exchange ("CSE"), and corresponding delisting from the TSX Venture Exchange ("TSXV").

Details of the Transaction between Uravan and Nuclear Fuels are set forth in the Company's Management Information Circular, which can be viewed, along with the Definitive Agreement at the Company's website: www.uravanminerals.com and/or the Company's filings at www.sedar.com.

The Definitive Agreement provides that on closing of the Transaction the board of directors of the Resulting Issuer (Nuclear Fuels) will be comprised of Michael Collins, William Sheriff, David Miller, Eugene Spiering and Larry Lahusen. In addition, Monty Sutton and Jacqueline Collins have agreed to act as the Chief Financial Officer and the Corporate Secretary of the Resulting Issuer (Nuclear Fuels), respectively.

Following completion of the Transaction, enCore Energy US Corp, a wholly owned subsidiary of enCore Energy Corp. (NYSE:EU, TSXV:EU) will hold approximately 19.9% of the Resulting Issuer (Nuclear Fuels).

Trading in the Common Shares of Uravan were halted in connection with the announcement of the Transaction and will remain halted until completion of the Transaction and listing of the Resulting Issuer (Nuclear Fuels) on the CSE, or until termination of the Transaction. Closing of the Transaction is subject to the approval of the listing of the common shares of the Company on the CSE. There can be no assurance that the Transaction will be completed as proposed or at all. The Transaction between the Company and Nuclear Fuels was negotiated at arm's length.

Information Regarding Nuclear Fuels

Nuclear Fuels was incorporated on May 25, 2022, and is focused on the exploration for critical metals and natural uranium occurrences. Nuclear Fuels owns two wholly owned subsidiaries, being: Hydro Restoration Corporation incorporated in the State of Delaware, which holds the Kaycee uranium property in Johnson County, Wyoming and the Bootheel uranium project in Albany County, Wyoming; and Belt Line Resources, Inc. incorporated in the State of Texas, which holds the Moonshine Springs uranium property in Mohave County, Arizona. Nuclear Fuels also holds an option to acquire the following properties: LAB Critical Metals project in Newfoundland and Labrador and Hightest Bootheel uranium property in Albany County, Wyoming.

Nuclear Fuels is well funded with approximate cash holdings of $7 million (Canadian Dollars).

Following completion of the Transaction, the business of the Resulting Issuer (Nuclear Fuels) is anticipated to be focused on the advancement of the LAB Critical Metals Project and the Kaycee Property. The Resulting Issuer (Nuclear Fuels) intends to review potential exploration opportunities on its other properties and actively investigate other potential uranium acquisitions. Further information on Nuclear Fuels' current project holdings is available in the Company's Management Information Circular.

Completion of the Transaction is subject to a number of conditions, including but not limited to approval for listing of the resulting company on the CSE. There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or listing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.

Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in the polices of the TSX Venture Exchange) has approved or disapproved of the contents of this press release

SOURCE Uravan Minerals Inc.

Cision

View original content: http://www.newswire.ca/en/releases/archive/May2023/30/c6952.html

BHP Group BHP has collaborated with Microsoft MSFT to use new digital technology such as Artificial Intelligence, machine learning and cloud technologies to improve copper recovery at the Escondida operation in Chile.The Escondida mine is the world's largest producer of copper concentrates and cathodes. BHP owns 57.5% of the mine while the remaining stake is held by Rio Tinto plc RIO (30%) and Japan-based JECO Corp (12.5%). Escondida’s two pits feed three concentrator plants, as well as two leaching operations (oxide and sulphide). It produced more than 1 million metric tons of copper per year. The concentrator circuit is responsible for extracting, floating and collecting the copper mineral from crushed and milled ore.Through this collaboration, by using real-time plant data from the concentrators combined with AI-based recommendations from Microsoft’s Azure platform, the concentrator operators at Escondida will now be able to adjust operational variables that affect ore processing and grade recovery. Mining is a long, complex and capital-intensive process. Significant exploration and development to evaluate the size of the deposit, followed by the assessment of ways to extract and process the ore efficiently, safely and responsibly, precede actual mining.Finding and building new mines are costly as well as difficult and can take more than a decade. With declining grades at existing copper mines and the lack of new economic and promising discoveries, miners are resorting to next-generation technologies like artificial intelligence, machine learning and data analytics to boost production and value from the existing mines.Copper is the third most consumed industrial metal in the world. It is expected to play a crucial role in the achievement of global clean energy transition. The increasing global awareness regarding cleaner energy and the surge in electric car sales will be a key catalyst for copper demand in the long term. The red metal is an essential component in EVs and is utilized in electric motors, batteries, inverters and wiring. According to the International Copper Association (“ICA”), while conventional cars contain 18 pounds to 49 pounds of copper, plug-in hybrid electric vehicles use 132 pounds of copper and battery electric vehicles contain 183 pounds of the metal.

BHP estimates that over the next three decades, the global copper output has to double compared to the past 30 years to meet the surging requirement of the metal stemming from global decarbonization efforts such as electric vehicles, offshore wind and solar farms. BHP and other miners like Rio Tinto and Southern Copper SCCO to name a few, are thus trying to boost their capacity to capitalize on this trend. Southern Copper's Michiquillay project is expected to become one of Peru's largest copper mines and will produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years and at a competitive cash-cost. Production is expected to commence by 2032. The Los Chancas project located in Apurimac, Peru is a copper and molybdenum porphyry deposit. The project envisions an open-pit mine with a combined operation of the concentrator and SX-EW processes to produce 130,000 tons of copper and 7,500 tons of molybdenum annually. The project is expected to commence in 2030.

Price Performance

BHP Group's shares have fallen 20.2% over the past year, compared with the industry’s 25.2% decline.

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

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Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. To wit, the BHP Group share price has climbed 29% in five years, easily topping the market return of 14% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 7.5% , including dividends .

Although BHP Group has shed AU$7.1b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for BHP Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, BHP Group managed to grow its earnings per share at 31% a year. This EPS growth is higher than the 5% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.74.

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

earnings-per-share-growth

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on BHP Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of BHP Group, it has a TSR of 116% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that BHP Group has rewarded shareholders with a total shareholder return of 7.5% in the last twelve months. That's including the dividend. Having said that, the five-year TSR of 17% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand BHP Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for BHP Group (of which 1 is significant!) you should know about.

BHP Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in Southern Copper's (NYSE:SCCO) returns on capital, so let's have a look.

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

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Southern Copper, this is the formula:

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

0.27 = US$4.3b ÷ (US$17b – US$1.2b) (Based on the trailing twelve months to March 2023).

Thus, Southern Copper has an ROCE of 27%. That's a fantastic return and not only that, it outpaces the average of 12% earned by companies in a similar industry.

Check out our latest analysis for Southern Copper

roce

Above you can see how the current ROCE for Southern Copper compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.

The Trend Of ROCE

Southern Copper is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 27%. The amount of capital employed has increased too, by 25%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.

The Bottom Line

In summary, it's great to see that Southern Copper can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And with a respectable 76% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue.

Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 4 warning signs for Southern Copper (of which 2 make us uncomfortable!) that you should know about.

If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here.

Brisbane, Queensland, Australia–(Newsfile Corp. – May 26, 2023) – Graphene Manufacturing Group Ltd. (TSXV: GMG) ("GMG" or the "Company") is pleased to provide an update as to relevant changes following the recent Battery Joint Development Agreement (JDA) with Rio Tinto (17th May 2023) and the growing sales of Energy Saving products. These changes are designed to further align development activities and support the progression of the Battery JDA and the ongoing expansion of Thermal-XR sales following the recently announced distribution agreements (24th May 2023).

The Company had been working in parallel to progress its Graphene Aluminium Ion Battery technically while also seeking feedback from customers as to the highest priority applications. It became clear that pouch cell, rather than coin cell, batteries were of greatest interest to potential key customers. It is also clear that the progression of the battery from the current Battery Technology Readiness Level (BTRL) Level 2-3, (Scientific Proof of Concept into Electrochemical Development) could be accelerated by having key potential customer partners help define operating and design characteristics.

Figure 1To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8082/167657_6db1225214b69ae7_001full.jpg

The JDA with Rio Tinto crystalises both elements of obtaining feedback from customers and progressing the battery's technical development. It further provides a clear development roadmap including use specifications, development targets. In the battery industry it typically takes 3 years or more to move from Phase 1 to Phase 3 when using existing battery production manufacturing systems, materials and equipment as GMG expects to utilise.

GMG is currently making single layer pouch cells to proceed to a 5 layer pouch cell testing and expects to have a >25 Layer Pouch Cell Prototype by H1 2024.

Figure 2To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8082/167657_gmg2en.jpg

In the context of this strategic move, the Company is aligning its organisation by having all scientific, product development and operations teams combined under the Chief Operating Officer. The mandate for the sale of all products is now the responsibility of the General Manager Sales. This will provide a stronger battery deep science to product performance linkage, prioritise activities and leverage learning across all product performance and also a streamlined engagement with customers with a single point of call for all products.

In addition, the Chief Financial Officer, Frederick Kotzee, after leading a successful raise last year and supporting the company's strategic steps of establishing sales and selecting a battery development focus, has decided to leave the company and resign as a Director due to a desire to move back to the resources sector and/or more flexible work arrangements effective on 31 July 2023 and hence the company has commenced an executive search for his replacement. We thank Frederick for all his work to get us into our current position over the previous year and we wish him well in his future endeavours.

The Company has also recently secured an additional 1,200 square metres of laboratory, storage and office space adjacent to the existing factory, to support the increasing analysis and development work needed for ongoing battery development. The additional facilities will also improve logistics for production, storage and dispatch of anticipated TXR and Lubricants sales, and support the technical development of potential new applications for energy saving TXR and Lubricants.

The previously announced upgraded, expanded and relocated Phase 1 graphene manufacturing project is underway, although completion is expected to be delayed until the second half of 2023. Costs have also increased to around A$2m, as a result of inflation and some scope changes. The Company is also considering further upgrade to its Battery Development Centre (BDC) and related equipment, including any relevant needs arising from the Rio Tinto JDA.

GMG's 4 critical business objectives remain to:

Produce Graphene and improve/scale the production process

Build Revenue from Energy Savings Products

Develop Next-Generation Battery

Develop Supply Chain, Partners & Project Execution Capability

About GMG

GMG is a disruptive Australian-based clean-tech company listed on the TSXV (TSXV: GMG) that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite. By using the company's proprietary process, GMG can produce high quality, scalable, 'tuneable' and no/low contaminant graphene – enabling demonstrated cost and environmental improvements in a number of world-scale planet-friendly/clean-tech applications. Using this low input cost source of graphene, the Company is developing value-added products that target the massive energy efficiency and energy storage markets. The Company is pursuing additional opportunities for GMG Graphene, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance of lubricant oil and performance enhanced HVAC-R coating system.

For further information please contact:

Craig Nicol, Chief Executive Officer & Managing Director of the Company at craig.nicol@graphenemg.com, +61 415 445 223
Leo Karabelas at Focus Communications Investor Relations, leo@fcir.ca, +1 647 689 6041

www.graphenemg.com

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

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding sales growth in the Company's energy saving products including Thermal-XR, market demand for the Company's products, the Company's focus on developing certain products, the value of the JDA including its impact on progressing the battery's technical development generally and along the BTRL, the advantages of the strategic realignment of the organisation, and the expected benefits of the additional facilities on battery development and the production and sales of TXR and lubricants.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things that the JDA will not result in the benefits management expects, that the Company's products will not develop as expected, that the impact of the JDA and the partnership with Rio Tinto will differ from management's expectations, that the strategic realignment of the organisation will not result in the advantages management expects, that the additional facilities will not enable improved production and sales of TXR and lubricants, changes to regional and global market trends, that the Company will be unable to research, develop and produce certain products and technologies, and risks related to the deployment of the Company's resources.

In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, assumptions regarding the Company's development of certain products, the market demand for the Company's products, the JDA and the expected benefits thereof, the advantages that will be derived from the strategic realignment of the organisation, the impact of the additional facilities acquired and its role in developing the Company's products and enabling production and sale of said products, and the Company's ability to research, develop and test its products within anticipated timelines.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167657

(Bloomberg) — BHP Group Ltd. is confident China’s troubled property market will turn around in coming months, despite gloomy economic signals pushing iron ore and copper prices back to levels last seen during the Covid Zero era.

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Secondary sales in the housing market “continue to be strong, very strong,” Vandita Pant, BHP’s chief commercial officer, said in an interview on Thursday. “We always thought sales and completions of homes will turn around first, and then new starts,” she said, adding “that trajectory is holding.”

The note of confidence from the world’s biggest miner comes after China’s economic activity disappointed expectations since strict pandemic restrictions were removed late last year, heavily impacting metals demand. The Asian powerhouse is by far the largest importer of both iron ore and copper.

Weaker-than-expected construction, particularly in the property sector, has pushed iron ore — BHP’s top export — below $100 a ton. Copper, another of its key commodities, fell below $8,000 a ton for the first time in six months this week, adding to broader gloom about the global economy.

But Pant said BHP still expects China’s metals demand “to be a source of stability in the second half, and the second half to be better than the first half,” echoing the words of Chief Executive Officer Mike Henry at the company’s half-year results in February.

The first quarter of 2023 was “better than we were expecting,” but the market got carried away in the second quarter, pushing commodity prices to unrealistic levels, Pant said. China’s economy wouldn’t feel the “full tailwind” of government stimulus measures, introduced earlier this year, until 2024, she said.

Copper futures on the London Metals Exchange edged up 0.4% to $7,929 a ton at 12:22 p.m. in Singapore, but are still down almost 4% this week.

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Toronto, Ontario–(Newsfile Corp. – May 24, 2023) – Honey Badger Silver Inc. (TSXV: TUF) ("Honey Badger" or the "Company") is pleased to announce the closing of the second and final tranche of its previously announced non-brokered hard dollar and flow-through private placement (the "Offering"). All dollar amounts are in Canadian funds.

Hard Dollar Offering

The hard dollar component of the Offering involved the sale of units ("HD Units") at a price of $0.15 per HD Unit. Each HD Unit consists of one common share of the Company and one half of a common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the Company at a price of $0.18 for a period of 36 months from the date of closing. The proceeds from the sale of the HD Units will be used to finance closing obligations and exploration activities on the Company's Cachinal project in Chile and for general working capital purposes.

In the first tranche closing on April 11, 2023, the Company sold 5,256,668 HD Units for gross proceeds of $788,500. In the second tranche closing, the Company sold an additional 1,447,000 HD Units for additional gross proceeds of $217,050. The gross proceeds from the sale of the 6,703,668 HD Units in both closings totalled $1,005,550.

Flow-Through Offering

The flow-through component of the Offering involves the sale of units ( "FT Units") at a price of $0.16 per FT Unit. Each FT Unit consists of one common share of the Company and one half of a common share purchase warrant, with each whole warrant having the same terms as the warrants comprising the HD Units. The proceeds from the sale of the FT Units will be used to fund exploration programs on one or more of the Company's exploration properties located in Yukon, Quebec, and Nunavut that will qualify as "Canadian Exploration Expenses" and, once renounced, "flow-through mining expenditures", as those terms are defined in the Income Tax Act (Canada).

In the first tranche closing on April 11, 2023, the Company sold 1,234,375 FT Units for gross proceeds of $197,500. In the second tranche closing, the Company sold an additional 365,000 FT Units for additional gross proceeds of $58,400. The proceeds from the sale of the 1,599,375 FT Units in both closings totalled $255,900.

An insider of the Company acquired 15,000 HD Units and 15,000 FT Units in the second tranche closing for total gross proceeds of $4,650. The insider's participation in the Offering is a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemption from minority shareholder approval requirements under MI 61-101, as the fair market value of the insider's participation in the Offering does not exceed 25% of the market capitalization of the Company.

In connection with the Offering, the Company paid fees to eligible finders consisting of an aggregate of: (i) $39,921.01; and (ii) 51,940 Warrants (the "Broker Warrants"). Each Broker Warrant is exercisable by the holder to acquire one Common Share for a period of 36 months from the date of closing of the Second Tranche of the Offering at a price of C$0.18 per share.

All securities issued pursuant to the Offering are subject to a four-month statutory hold period under Canadian securities laws.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Honey Badger Silver Inc.

Honey Badger Silver is a Canadian silver company based in Toronto, Ontario, that is focused on the acquisition, development, and integration of accretive transactions of silver ounces. The Company is led by a highly experienced leadership team with a track record of value creation backed by a skilled technical team. With significant land holdings in southeast and south-central Yukon, including the Plata property 180 kms to the east of the Keno Hill silver district, as well as Ontario's historic Thunder Bay Silver District, Honey Badger Silver is positioning to be a top-tier silver company.

ON BEHALF OF THE BOARD

George Davis, President & CEO

Investors that are interested in further information on the Offering may also do so through the Sharechest Connector on our website at www.honeybadgersilver.com, which is an innovative solution to streamline and simplify communications with potential investors.

For more information, contact Ms. Michelle Savella for Investor Relations | msavella@honeybadgersilver.com | (604) 828-5886

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

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

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

Not for distribution to U.S. news wire services or dissemination in the United States

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167407

Southern Copper (SCCO) has been beaten down lately with too much selling pressure. While the stock has lost 13.9% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.

How to Determine if a Stock is Oversold

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why SCCO Could Bounce Back Before Long

The heavy selling of SCCO shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 28.56. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for SCCO has increased 3.2%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, SCCO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

REE Automotive Ltd.

Continued growth in authorized dealer network and orders, on track for initial production and pilot deliveries by the end of 2023

TEL AVIV, Israel, May 23, 2023 (GLOBE NEWSWIRE) — REE Automotive Ltd. (NASDAQ: REE) (“REE” or the “Company”), an automotive technology leader and provider of electric vehicle (EV) platforms, today announced its financial results for the first quarter ended March 31, 2023, through a shareholder letter posted on the company’s investor relations website at https://investors.ree.auto.

The company will also hold a conference call today, May 23 at 8:30 a.m. ET. The live webcast of the conference call can be accessed on the Investors section of the Company’s website. Click here for webcast URL. For the telephone conference online registration click here.

1Q23 Highlights:

REE remains focused on zero emission Class 3-5 vehicles built on its P7 platforms; ongoing activities support previously announced planned certification completion in 2H23; initial pilot vehicle deliveries to customers targeted to begin by the end of year 2023.
Expands dealer network in the US, with eight dealers and three fleet customers, with initial orders of approximately 100 vehicles1 which are designed to meet the growing demand in part driven by the Advanced Clean Fleet (ACF) regulation. These dealers also facilitate relationships and adoption by fleets, which we believe could purchase hundreds or thousands of vehicles per year.
Company announces two-phase production road map; Phase 1 anticipates production of vehicles in the low hundreds in 2024, with breakeven gross margin on a unit level by the end of that year. Phase 2 targets production in low – mid thousands of vehicles and breakeven EBITDA by the end of 2025.
Company ended fiscal 1Q23 with liquidity of $126 million with no debt; anticipates liquidity of $65 million at year end, following the production of initial 25 P7 vehicles for internal testing and pilot deliveries.

________________________1 The Company’s order book is determined by management based on purchase orders received by the Company. The number of vehicles included in the order book as of May 22, 2023 include 76 vehicles under firm orders (i.e. binding orders) and the remainder of vehicles are of orders that are binding orders with certain additional conditions as set forth in the order.

About REEREE Automotive (Nasdaq: REE) is an automotive technology company that allows companies to build any size or shape of electric vehicle on their modular platforms. With complete design freedom, vehicles Powered by REE are equipped with the revolutionary REEcorner, which packs critical vehicle components (steering, braking, suspension, powertrain and control) into a single compact module positioned between the chassis and the wheel, enabling REE to build the industry’s flattest EV platforms with more room for passengers, cargo and batteries. REE platforms are future proofed, autonomous capable, offer a low TCO, and drastically reduce the time to market for fleets looking to electrify. To learn more visit www.ree.auto.

Contacts

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

MediaKeren ShemeshChief Marketing Officermedia@ree.auto

Uncertainties and risk factors that could affect REE’s future performance and could cause actual results to differ include, but are not limited to: REE’s ability to commercialize its strategic plan, including its plan to successfully evaluate, produce and market its newest medium-duty electric box truck built on a P7 platform, as discussed in this press release; REE’s ability to maintain and advance relationships with current Tier 1 suppliers and strategic partners; development of REE’s advanced prototypes into marketable products; REE’s ability to grow and scale manufacturing capacity through relationships with Tier 1 suppliers; REE’s estimates of unit sales, expenses and profitability and underlying assumptions; REE’s reliance on its UK Engineering Center of Excellence for the design, validation, verification, testing and homologation of its products; REE’s limited operating history; risks associated with plans for REE’s initial commercial production; REE’s dependence on potential suppliers, some of which will be single or limited source; development of the market for commercial EVs; intense competition in the e-mobility space, including with competitors who have significantly more resources; risks related to the fact that REE is incorporated in Israel and governed by Israeli law; REE’s ability to make continued investments in its platform; the impact of the ongoing COVID-19 pandemic and any other worldwide health epidemics or outbreaks that may arise; and adverse global conditions, including macroeconomic and geopolitical uncertainty; the need to attract, train and retain highly-skilled technical workforce; changes in laws and regulations that impact REE; REE’s ability to enforce, protect and maintain intellectual property rights; REE’s ability to retain engineers and other highly qualified employees to further its goals; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 28, 2023 and in subsequent filings with the SEC.

A [sputtering recovery in China](https://www.wsj.com/articles/chinas-youth-unemployment-tops-20-amid-signs-of-stalling-recovery-cea320ef?mod=article_inline) has dragged copper prices to a five-month low, delaying one of the most widely anticipated bull runs in commodity markets.

(Bloomberg) — A top equities fund manager is backing BHP Group Ltd. and Rio Tinto Ltd., betting they can withstand softer iron-ore prices and will benefit as China’s reopening boosts demand for the commodity.

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Australian producers are attractive as they have relatively low operating costs and high exposure to the mainland, the world’s largest consumer of the steel-making ingredient, according to David Wilson, who oversees the equivalent of $5.3 billion at Australia-focused First Sentier Wholesale Geared Share Fund. The fund has returned 10% this year, beating more than 90% of its peers.

Even when iron-ore prices fall, Australian producers are still highly profitable given they have a lower cost base than their global counterparts, Sydney-based Wilson said. “Over the course of this year, China will continue to reopen and that will provide a base for demand for Australian iron ore.”

The fund recently rotated out of aluminum-miner South32 Ltd. and redirected some of that capital toward Rio Tinto, he said.

Iron ore has struggled after a strong start to the year amid concern China’s recovery is losing momentum. Still, Australian miners have weathered the commodity’s gyrations better than most of their international rivals, with BHP, Rio Tinto and Fortescue Metals Group Ltd. outperforming a Bloomberg Intelligence gauge tracking producers of the commodity over the last 12 months.

Even in Australia though, price pressures are building. BHP said last month said it expects iron-ore costs to come in at the top end of its $18 to $19 per ton guidance range in the financial year to June 30, while Brazil’s Vale SA forecasts $20 to $21 per ton for 2023.

While it has recently increased holdings of iron-ore miners, the four largest holdings in Wilson’s fund remain insurer QBE Insurance Group Ltd., oil producer Santos Ltd., gaming-machine maker Aristocrat Leisure Ltd. and industrial property firm Goodman Group.

The fund’s main strategy is to invest in “economically defensive companies that have growth,” Wilson said. Australia doesn’t have “the sort of earnings or economic volatility seen elsewhere. Australia is seen as a bit more of a defensive place, including even our banks.”

Margin Pressures

The fund is underweight local lenders as slowing credit growth and margin pressure weigh on their earnings outlooks, Wilson said. Still, the nation’s lenders remain well capitalized and are unlikely to face issues with bad debts, he said, adding that the fund prefers Commonwealth Bank of Australia and National Australia Bank Ltd. to their competitors.

Read more: Aussie Bank Investors Say Best Days Are Over as Margins Squeezed

The First Sentier fund has handily beaten the benchmark S&P/ASX 200 Index this year, with the gauge rising just 2.3%.

The fund also owns technology shares such as logistics-software company Wisetech Global Ltd. and online property-listing service REA Group Ltd.

“People, when they think of tech, tend to think of obviously the US,” Wilson said. “But Australia, over a long period of time, has been able to develop quite solid tech companies.”

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