Vancouver, British Columbia–(Newsfile Corp. – September 23, 2022) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) (“Eastplats” or the “Company”) is pleased to announce it has signed a finance facility agreement with Investec Bank Limited (“Investec”), which will be used for working capital purposes and funding the restart of the Zandfontein underground section of its flagship Crocodile River Mine, located near Brits, South Africa. Investec is a leading South African international banking and wealth management group.

Highlights of the key terms of the finance facility include:

• Renewable 12-month revolving commodity finance facility secured by platinum group metal (“PGM”) production from the tailings storage facility at the Crocodile River Mine.

• Indicative rate on financing – 3 month Johannesburg Interbank Average Rate (“JIBAR”) + 150 basis points. The interest rate is subject to the credit quality of the PGM off-taker on an annual basis.

• Immediate pay-out to the Company on the PGM concentrate delivery date.

• The maximum size of the credit facility is R150 million (C$11.3 million).

• Guaranteed prices through a fixed-price swap hedge overlay on platinum, palladium, rhodium, and gold (4E) minerals.

Wanjin Yang, Chief Executive Officer and President of the Company stated, “We thank Investec for its support and commitment to Eastplats. We look forward to working with Investec as we restart the Zandfontein underground section and develop our eastern limb projects. This facility is a result of the hard work of our respective teams over the past several months.”

The finance facility agreement has been filed under the Company’s profile on SEDAR at www.sedar.com.

About Investec

Investec partners with private, institutional, and corporate clients, offering international banking, investment, and wealth management services in two principal markets, South Africa and the United Kingdom, as well as certain other countries. The group was established in 1974 and currently has approximately 8,200+ employees. Investec has a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. Investec’s current market capitalization is approximately £3 billion.

About Eastern Platinum Limited

Eastplats owns directly and indirectly a number of platinum group metal (“PGM”) and chrome assets in the Republic of South Africa. All of the Company’s properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world’s PGM-bearing ore.

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

For further information, please contact:

EASTERN PLATINUM LIMITEDWylie Hui, Chief Financial Officer and Corporate Secretarywhui@eastplats.com (email)(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

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

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

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

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/138288

For Immediate Release

Chicago, IL – September 23, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BHP Group Ltd. BHP, United Parcel Service, Inc. UPS, Adobe Inc. ADBE, EOG Resources, Inc. EOG, and América Móvil, S.A.B. de C.V. AMX.

Here are highlights from Thursday’s Analyst Blog:Top Analyst Reports for BHP Group, UPS, Adobe and Others

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including BHP Group Ltd., United Parcel Service, Inc. and Adobe Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

BHP Group shares have declined -7% over the past year against the Zacks Mining – Miscellaneous industry’s decline of -15.5% and the S&P 500 index's -16.1% decline. The outlook for BHP's commodities remains favorable, notwithstanding near-term macroeconomic headwinds, particularly the uncertain outlook for China.

The recent pullback in iron ore prices nothwithstanding, the Zacks analyst expects the commodity to regain ground in the medium to long run on pent-up demand in the automotive sector, infrastructure and the housing market. Copper and nickel prices will also be fueled by demand for electric vehicles.

BHP will benefit from its efforts to make operations more efficient through smart technology adoption across the entire value chain. Investment in growth projects with a particular focus on commodities like copper, nickel and potash will aid growth as well. The company’s iron ore production guidance for fiscal 2023 is 249-260 Mt. The midpoint of the range indicates a 1% increase from the prior-year tally.

(You can read the full research report on BHP Group here >>>)

UPS shares have handily outperformed rival FedEx over the past year (down -9.2% vs. -33.2%) despite being faced with most of the same macroeconomic challenges.

Even though economies are reopening, the urge for online shopping refuses to relent among consumers. High shipping rates also bode well for UPS. Moreover, its strong free cash flow generating ability pleases us and supports UPS' shareholder-friendly activities.In first-half 2022, UPS generated a free cash flow of $6,895 million compared with $6,804 million in first-half 2021. UPS paid out dividends worth $3,437 million in 2021, up 1.9% year over year. UPS aims to reward its shareholders with $8.2 billion in 2022, through dividends ($5.2 billion) and share buybacks ($3 billion).

(You can read the full research report on United Parcel here >>>)

Adobe shares have declined -55.2% over the past year against the Zacks Computer – Software industry’s decline of -27.5%, with the stock really losing ground following the weak(ish) quarterly report when it guided lower. The Figma acquisition has also weighed on the stock lately, as the market sees the purchase price to be on the high side.

Adobe's Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth in the quarterly report. Further, rising subscription revenues and solid momentum across the mobile apps remained major positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds.Also, continued key customer wins of the company are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.

(You can read the full research report on Adobe here >>>)

Other noteworthy reports we are featuring today include EOG Resources, Inc., and América Móvil, S.A.B. de C.V.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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 America Movil, S.A.B. de C.V. (AMX) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Thursday, September 22, 2022The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including BHP Group Limited (BHP), United Parcel Service, Inc. (UPS) and Adobe Inc. (ADBE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>BHP Group shares have declined -7% over the past year against the Zacks Mining – Miscellaneous industry’s decline of -15.5% and the S&P 500 index's -16.1% decline. The outlook for BHP's commodities remains favorable, notwithstanding near-term macroeconomic headwinds, particularly the uncertain outlook for China.

The recent pullback in iron ore prices nothwithstanding, the Zacks analyst expects the commodity regain ground in the medium to long run on pent-up demand in the automotive sector, infrastructure and the housing market. Copper and nickel prices will also be fueled by demand for electric vehicles.  BHP will benefit from its efforts to make operations more efficient through smart technology adoption across the entire value chain. Investment in growth projects with a particular focus on commodities like copper, nickel and potash will aid growth as well. The company’s iron ore production guidance for fiscal 2023 is 249-260 Mt. The midpoint of the range indicates a 1% increase from the prior-year tally.(You can read the full research report on BHP Group here >>>)UPS shares have handily outperformed rival FedEx over the past year (down -9.2% vs. -33.2%) despite faced with most of the same macroeconomic challenges.

Even though economies are reopening, the urge for online shopping refuses to relent among consumers. High shipping rates also bode well for UPS. Moreover, its strong free cash flow generating ability pleases us and supports UPS' shareholder-friendly activities.In first-half 2022, UPS generated a free cash flow of $6,895 million compared with $6,804 million in first-half 2021. UPS paid out dividends worth $3,437 million in 2021, up 1.9% year over year. UPS aims to reward its shareholders with $8.2 billion in 2022, through dividends ($5.2 billion) and share buybacks ($3 billion).(You can read the full research report on United Parcel here >>>)Adobe shares have declined -55.2% over the past year against the Zacks Computer – Software industry’s decline of -27.5%, with the stock really losing ground following the weak(ish) quarterly report when it guided lower. The Figma acquisition has also weighed on the stock lately, as the market sees the purchase price to be on the high side.

Adobe's Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth in the quarterly report. Further, rising subscription revenues and solid momentum across the mobile apps remained major positives. Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds.Also, continued key customer wins of the company are contributing well. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.(You can read the full research report on Adobe here >>>)Other noteworthy reports we are featuring today include The Charles Schwab Corporation (SCHW), EOG Resources, Inc. (EOG), and América Móvil, S.A.B. de C.V. (AMX).Sheraz MianDirector of ResearchNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

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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 America Movil, S.A.B. de C.V. (AMX) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

By Ambar Warrick

Investing.com– Major Australian mining stocks tumbled on Wednesday after Rio Tinto CEO Jakob Stausholm warned that copper prices are likely to face short-term pressure from steep inflation and supply chain disruptions.

Shares of BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO), the two largest miners in the country, sank 2.6% and 3.1%, respectively. The two are highly exposed to the copper market, although BHP’s sales of the red metal are greater.

Smaller copper miners Newcrest Mining (ASX:NCM) and OZ Minerals Ltd (ASX:OZL) sank 2.9% and 1.1%, respectively.

Speaking to Bloomberg, Stausholm said that the aftereffects of the COVID-19 pandemic were still disrupting global supply chains, and that inflation trending at 30 to 40-year highs was likely to pose a challenge.

Stausholm’s comments come amid a deep decline in copper prices this year, as COVID-related disruptions in China, the world’s largest copper consumer, severely hurt demand. Elevated inflation and high energy prices have also disrupted industrial activity in Europe and the United States.

Rio Tinto, the world's second-largest miner, logged a drop in its profit for the first half of the year as weakening demand in China dented metal prices. The company also recently agreed to a $3.3 billion buyout of Canadian partner Turquoise Hill Resources (TSX:TRQ), giving it direct ownership of the massive Oyu Tolgoi copper mining project in Mongolia.

Stausholm said he expects growth to pick up eventually in China, given that it isn’t facing the same inflationary pressures as other countries. He also expressed confidence in copper’s long-term prospects, driven by a transition to low-carbon energy sources.

Copper prices may also take some support in the near term from a strike in Chile’s Escondida, the largest copper mine in the world. A worker’s union at the mine, which is owned by BHP, recently voted to begin work stoppages from this month.

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Investors with an interest in Mining – Miscellaneous stocks have likely encountered both BHP (BHP) and Wheaton Precious Metals Corp. (WPM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

BHP and Wheaton Precious Metals Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BHP likely has seen a stronger improvement to its earnings outlook than WPM has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

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

BHP currently has a forward P/E ratio of 8.22, while WPM has a forward P/E of 25.17. We also note that BHP has a PEG ratio of 2.74. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WPM currently has a PEG ratio of 5.03.

Another notable valuation metric for BHP is its P/B ratio of 1.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WPM has a P/B of 2.28.

Based on these metrics and many more, BHP holds a Value grade of A, while WPM has a Value grade of D.

BHP stands above WPM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BHP is the superior value option right now.

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 BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

(Bloomberg) — Woodside Energy Group Ltd., Australia’s biggest oil and gas producer, said first-half profit soared more than fivefold on the back of higher prices and the takeover of BHP Group Ltd.’s energy assets.

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Net income for the six months through June 30 rose 417% to $1.64 billion as the average realized price more than doubled from a year earlier to $96.40 a barrel of oil equivalent, the Perth-based company said Tuesday. The completion of the integration of BHP’s petroleum business in June also helped lift production by 19% to 55 million boe.

Woodside has faced investor and activist scrutiny over its increased contribution to climate change following the all-share takeover of BHP’s petroleum assets, which made it Australia’s largest energy company and one of the world’s biggest liquefied natural gas suppliers. The company has used the global energy crunch to defend its decision to continue to invest in production such as the Scarborough project, which is set to supply its first LNG cargo in 2026.

“The upheavals in global and Australian energy markets witnessed over the course of the past six months have shone a spotlight on on the importance of gas in the world energy mix and underscores our confidence in the longer-term demand outlook for gas, which makes up 70% of Woodside’s portfolio,” Chief Executive Officer Meg O’Neill said in a statement.

The result was “in-line to marginally better than expectations,” Citigroup Inc. analysts Paul McTaggart and Tom Wallington said in a note. Price volatility and geopolitical tension are among key risks for the company, along with potential cost blowouts in new oil and gas projects, they said.

Woodside said it would pay a half-year dividend of $1.09 a share, more than three times last year’s level. The company’s shares gained as much as 3.8% in Sydney on Tuesday to their highest level since July 2019.

(Updates with analyst comment, share price from fourth paragraph)

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Meg O’Neill, chief executive officer and managing director at Woodside Energy Group Ltd., discusses first half earning, the business strategy in Asia and her outlook for the gas sector. Woodside, Australia’s biggest oil and gas producer, said first-half profit soared more than fivefold on the back of higher prices and the takeover of BHP Group Ltd.’s energy assets. O’Neill speaks on Bloomberg Television.

(Bloomberg) — Australian mining giant BHP Group should “proactively advocate” for stronger climate policy, according to a new shareholder resolution lodged by an activist investor group.

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The resolution, lodged by the Australasian Centre for Corporate Responsibility and sponsored by at least 100 BHP shareholders, calls on the company to look beyond its own business activities and take an active role in promoting Australian government policies.

The company should help lobby for a new emissions trading mechanism and for phasing out fossil fuel subsidies, and back more rigorous measurement of methane emissions from coal mines, the resolution said. Those calls go further than previous ones, which focused more narrowly on BHP’s own climate policy and its membership in pro-fossil fuel industry associations.

Methane-Spewing Coal Mines Are Climate Test for Australia PM

“Since 2020, BHP has been telling its shareholders that limiting warming to 1.5 degrees Celsius is the best outcome for the company,” Harriet Kater, the ACCR’s Climate Lead, said in a statement. “BHP needs to move beyond its industry associations by positively advocating for the ambitious policy needed to get Australia on track for a 1.5 degrees Celsius pathway.”

The resolution calls on BHP to lobby for policies that would support a “global green iron and steel industry.” The company, a major exporter of both iron ore and metallurgical coal, has vested interests in emissions-intensive steelmaking processes.

“BHP is Australia’s largest company with huge political influence and a massive opportunity to align business interests and policy with a safe climate,” Kater said.

A separate resolution, also lodged by the ACCR, demands BHP include “climate sensitivity analysis” in its reporting that covers all commodities and have a scenario “aligned with limiting warming to 1.5 degrees Celsius.”

Investors will vote on the resolution at the company’s next annual shareholder meeting, BHP said in a statement. The date for the meeting is yet to be announced. The company didn’t immediately respond to a request for comment.

The ACCR has lodged numerous climate-related shareholder resolutions with BHP, including a landmark 2019 resolution calling it to rescind membership of industry groups that lobby against climate policy, which was backed by 27% of shareholders.

©2022 Bloomberg L.P.

(Reuters) – BHP Group shareholders have sought inclusion of climate sensitivity analysis in financial statements from 2023, and requested consistency on climate policy, the world's biggest listed miner and an advocacy firm said on Tuesday.

The demands form a part of resolutions submitted to BHP by the Australasian Centre for Corporate Responsibility (ACCR) on behalf of shareholders, asking the miner to "proactively advocate for Australian policy settings that are consistent with the Paris Agreement's objective of limiting global warming to 1.5°C."

Shareholders also requested that from fiscal 2023, notes to BHP's financial statements show a climate sensitivity analysis, including a scenario aligned with limiting warming to 1.5°C.

The resolutions come as companies globally face pressure to adopt climate plans, with votes being closely watched even if the resolutions are non-binding. BHP targets net zero emissions by 2050, but it has faced pushbacks from shareholders on concerns that some of its long-term plans lack detail.

On its part, the miner has also stopped short of setting a target in view of uncertainty over how technology will develop.

"BHP remains a member of industry associations that have a toxic influence on Australia's climate policy. This resolution does not let BHP off the hook from also having to constrain the advocacy of those associations," said Harriet Kater, Climate Lead (Australia) at ACCR.

"BHP needs to move beyond its industry associations by positively advocating for ambitious policy," they said.

The resolutions will be put forth for consideration at BHP's 2022 annual general meeting.

(Reporting by Harish Sridharan in Bengaluru; editing by Uttaresh.V)

(Bloomberg) — The latest talks over a multibillion-dollar settlement for a 2015 mining disaster failed to yield a deal, with Brazilian officials signaling the two sides are still far apart with time running out.

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“We don’t have an agreement and no perspective that we’ll have one,” Minas Gerais State Planning Secretary Luisa Barreto said in an interview Wednesday after a new round of conversations in Brasilia with representatives of the Samarco iron ore mine and its owners Vale SA and BHP Group.

Without saying how much the companies are offering, Barreto said their proposal falls short of the required environmental and social compensation for a tailings dam collapse that killed as many as 19 people and contaminated waterways in two states. Minas Gerais Attorney General Jarbas Soares Jr. said on Twitter that authorities won’t return to the negotiating table unless there’s a “minimally worthy” new offer.

The companies previously offered 52 billion reais ($10 billion), people with knowledge of the matter said earlier this month. That compares with a 155 billion-real public civil action for reparation.

Brazil’s Supreme Court President Luiz Fux has been acting as mediator in the renegotiation process after an initial arrangement failed to address many of the needs, with allegations of shortfalls in the foundation created to manage payments.

Fux has committed to resolving the case before stepping down on Sept. 9 in an attempt to give affected communities a clear framework for reparations and replace other lawsuits. After that, authorities would undertake the necessary measures to obtain reparations, Barreto said, without elaborating.

Samarco, Vale and BHP said they remain committed to repairing the damage caused by the dam collapse, and to the negotiation process. BHP said the Renova Foundation, which was created to compensate for and repair damages, has disbursed 23 billion reais and provided aid for more than 389,000 people.

Samarco has been under bankruptcy protection since April 2021 as it seeks an agreement with creditors.

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There’s no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.

So should Eastern Platinum (TSE:ELR) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let’s start with an examination of the business’ cash, relative to its cash burn.

See our latest analysis for Eastern Platinum

When Might Eastern Platinum Run Out Of Money?

A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. As at June 2022, Eastern Platinum had cash of US$6.4m and no debt. In the last year, its cash burn was US$5.3m. That means it had a cash runway of around 15 months as of June 2022. That’s not too bad, but it’s fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. You can see how its cash balance has changed over time in the image below.

debt-equity-history-analysisHow Well Is Eastern Platinum Growing?

Eastern Platinum reduced its cash burn by 4.9% during the last year, which points to some degree of discipline. However, operating revenue was basically flat over that time period. In light of the data above, we’re fairly sanguine about the business growth trajectory. In reality, this article only makes a short study of the company’s growth data. This graph of historic earnings and revenue shows how Eastern Platinum is building its business over time.

How Easily Can Eastern Platinum Raise Cash?

Even though it seems like Eastern Platinum is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By comparing a company’s annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).

Since it has a market capitalisation of US$27m, Eastern Platinum’s US$5.3m in cash burn equates to about 19% of its market value. As a result, we’d venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution.

So, Should We Worry About Eastern Platinum’s Cash Burn?

The good news is that in our view Eastern Platinum’s cash burn situation gives shareholders real reason for optimism. One the one hand we have its solid cash burn reduction, while on the other it can also boast very strong cash runway. Even though we don’t think it has a problem with its cash burn, the analysis we’ve done in this article does suggest that shareholders should give some careful thought to the potential cost of raising more money in the future. Its important for readers to be cognizant of the risks that can affect the company’s operations, and we’ve picked out 1 warning sign for Eastern Platinum that investors should know when investing in the stock.

If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.

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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BHP said it would return a record amount of cash to investors as surging coal prices helped the world’s biggest miner deliver a 26 per cent increase in annual profits. BHP said shareholder returns were close to $36bn, including the shares in Woodside Petroleum given to its shareholders in exchange for the sale of the miner’s petroleum division. The bumper payout concludes a transformational year for BHP in which the company spun out its oil and gas operations, unified its share structure in Australia and approved development of a huge potash project in Canada.

(Bloomberg) — BHP Group, the world’s biggest miner, unveiled a record profit on gains in prices of commodities from coal to nickel, and offered some optimism on Beijing’s efforts to reboot Chinese growth and stabilize the ailing property sector.

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China’s infrastructure and automotive sectors are “already responding to policy support,” although a rebound in housing activity is expected to take longer, the producer said.

Here are the company’s key views on global growth and its key commodity markets:

Global Growth

On China, BHP expects demand to improve in fiscal 2023, although it also nodded to lingering risks from Covid-19 lockdowns and the deep slump in construction. The world’s No.2 economy will be a source of stability in the coming year and “perhaps something much more than that” if property activity recovers.

The company flagged weaker growth in other key regions stemming from geopolitics and Covid-19. “This is particularly evident in advanced economies, as central banks pursue anti-inflationary policy and Europe’s energy crisis is an additional source of concern,” BHP said.

Steel

Though there should be a steady improvement in China’s demand, a “slower than expected rebound in construction post Covid-19 lockdowns has dampened sentiment across the steel value chain,” BHP said. Elsewhere in the world, profitability for steelmakers is also declining on weaker demand and markets are likely to remain under pressure this fiscal year as the macroeconomic climate softens.

Iron Ore

The steel-making ingredient is likely to remain in surplus through fiscal year 2023, BHP said, noting stronger supply from big miners and more competition from scrap. Key near-term uncertainties are the pace of steel end-use demand recovery in China, disruptions to seaborne supply, and Chinese steel output cuts. Looking further, BHP said Chinese steel production and iron ore demand will plateau in the mid-2020s.

Copper & Nickel

As always, BHP flagged the long-term prospects of these metals, given their exposure to the “electrification mega-trend”. But immediate prospects are more mixed. The miner sees both metals moving out of deficit conditions as supply improves, particularly for nickel, and as demand outside China worsens, particularly for copper. On copper: “We believe mine supply and scrap collection will grow in the next few years, covering near-term demand growth.”

Coking Coal

After touching record highs, prices for coal used in steel-making face uncertainty over China’s import policy and Russian exports. The key seaborne supply region of Queensland has become “less conducive to long-life capital investment” after announcing plans to raise royalties on producers, BHP said. The fuel will still be used in blast-furnace steel-making for decades, supporting long-term demand, the producer said.

Thermal Coal

Energy coal also broke price records as trade flows were redirected from Asia to Europe as a result of curbs on Russian exports and on gas-to-coal switching as LNG prices spiked, BHP said. Over the longer-term, total primary energy derived from coal — both for power and other uses — is expected to be challenged, particularly under deep decarbonization scenarios where demand is expected to decline, BHP said.

Potash

Prices experienced gains on strong demand and worries over a loss of supply from Belarus and Russia, which account for about 40% of global output. The crop nutrient “stands to benefit from the intersection of numerous global mega-trends: rising population, changing diets and the need for the sustainable intensification of agriculture on finite arable land,” BHP said.

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By Ambar Warrick

Investing.com– Asian stocks rose on Tuesday as investors bet that China would roll out more stimulus measures to improve economic growth, while the Australian benchmark was supported by BHP after the miner logged a record annual profit.

China’s bluechip Shanghai Shenzhen CSI 300 index edged 0.1% higher, while the Shanghai Composite index added 0.2%.

In Southeast Asia, Philippine shares jumped 0.9%, while Malaysia and Indonesia added 0.7% and 0.3%, respectively. China is a major export destination for most of the region.

The People’s Bank of China unexpectedly cut rates on Monday, as it came under increasing pressure to loosen policy and facilitate economic growth.

The cut was also helmed by a batch of weak economic data from the mainland, which shows its economy is still under pressure from several COVID-19 lockdowns imposed this year.

But investors bet that the government would roll out even more stimulus to shore up economic growth. Along with the rate cut, Reuters reported on Tuesday that the government is also supporting beleaguered property developers with bond guarantees.

Australia’s ASX 200 jumped 0.5% on support from BHP Group (NYSE:BHP), the largest stock in the country.

BHP surged 4.5% after the mining giant reported a record profit for fiscal 2022, and forecast an improvement in China’s economy this year. The firm, which is the world’s largest miner, is largely dependent on China as a buyer of its iron ore and metal exports.

Asian stocks also received a strong lead-in from Wall Street, with major indexes gaining on bets that weakening economic growth could spur slower interest rate hikes by the Federal Reserve.

Thai stocks rose 0.2%, as the central bank forecast continued economic growth in the country, even after the economy expanded by less than expected in the second quarter.

The Thai economy grew at a pace of 2.5% in the second quarter, lower than estimates of 3.1%.

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Investing.com — Stocks in focus in premarket trade on Tuesday, August 16th. Please refresh for updates.

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Walmart (NYSE:WMT) stock rose 4.1% after the retail giant forecast a smaller drop in annual profit than it had predicted less than a month ago, after deep discounts to clear excess merchandise and a drop in fuel prices helped it beat expectations for quarterly sales.

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Mike Henry, chief executive officer at BHP Group, discusses his outlook for earnings, where he’s finding investment opportunities and his outlook for copper. He speaks exclusively on Bloomberg Television.

(Bloomberg) — BHP Group, the world’s biggest miner, posted its highest ever full-year profit on record commodity prices, and will push ahead with growth options on a stronger demand outlook in China.

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The producer will study plans to expand its top-earning iron ore unit to 330 million tons of production a year, and is continuing to assess options to lift volumes in copper and nickel, Melbourne-based BHP said Tuesday in a statement. A giant new potash mine in Canada remains on track to begin out in 2026.

Chief Executive Officer Mike Henry said China’s emergence from the Covid-19 lockdowns would provide a “tailwind” to the global economy, in a counterpoint to jittery sentiment on China following a swath of surprisingly weak data.

“We think that over the next six-to-12 months, China, if anything, is going to provide some stability to global growth and will help offset some of the slowing that we see elsewhere,” Henry said. China typically accounts for more than 60% of BHP’s revenue.

Read more: Why Top Miner BHP Reckons China’s Economy Is Poised to Improve

Rival miners have cautioned over a weaker outlook and Rio Tinto Group last month reported a decline in first-half profits and halved its dividend. Gold giant Newmont Mining Corp. and copper producer First Quantum Minerals Ltd. have also warned investors in recent weeks on the impact of inflationary pressures.

Shares Rise

BHP’s result was “better than expected”, Goldman Sachs Group Inc. analysts Paul Young and Hugo Nicolaci wrote in a note. But they warned stronger currencies and weaker commodity prices were key downside risks, particularly if China’s property sector does not recover in the next year.

Though BHP will face pressure from a slowdown in advanced economies, higher costs and tighter labor markets, there will be opportunities for low-cost miners as inflation also drives prices higher, the company said. Production costs across major assets rose 13% on Covid-related issues and higher prices of diesel and electricity.

The miner’s shares jumped as much as 5.5% in Sydney trading, the most since January 2021, and were 4.8% higher at A$40.79 as of 1:00 p.m. local time. Iron ore futures in Singapore rose 2.1% to $108.20 a ton.

China’s central bank on Monday cut interest rates as data showed the economy struggling on multiple fronts, and BHP’s comment on prospects there came with some caveats.

Downside risks in China include the possibility of further lockdowns, slowing exports, and continued turbulence in the country’s real estate sector, BHP said. And it noted that the iron ore market — its biggest source of earnings — would likely remain in surplus through this fiscal year.

Electric Metals

The producer is aiming to seize on any pressure on competitors to add metals tied to clean energy and electric vehicle supply chains, including copper and nickel. Copper miner OZ Minerals Ltd. — which rejected a BHP takeover approach — was a “nice to have, not a must have”, Henry told media on Tuesday.

BHP will continue to produce high quality metallurgical coal, Henry said, but plans for new coal mines in Queensland, Australia, are on hold after the state government increased royalty taxes. He also said green steel technology, including using hydrogen rather than metallurgical coal, was still “decades” away from becoming commercial.

Read more: BHP Returns to Major M&A in Hunt for EV and Clean Energy Metals

Total underlying earnings were $23.8 billion in the year to June 30, beating an average analyst forecast of $21.6 billion, and the highest since the current company was created in a 2001 merger. The producer will pay a record final dividend of $3.25 a share.

(Updates with CEO comment in fourth paragraph)

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Some investors rely on dividends for growing their wealth, and if you’re one of those dividend sleuths, you might be intrigued to know that Anglo American plc (LON:AAL) is about to go ex-dividend in just 3 days. The ex-dividend date is one business day before a company’s record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company’s books on the record date. Thus, you can purchase Anglo American’s shares before the 18th of August in order to receive the dividend, which the company will pay on the 23rd of September.

The company’s next dividend payment will be US$1.24 per share. Last year, in total, the company distributed US$2.42 to shareholders. Based on the last year’s worth of payments, Anglo American stock has a trailing yield of around 6.7% on the current share price of £29.63. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

View our latest analysis for Anglo American

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Anglo American’s payout ratio is modest, at just 42% of profit. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out more than half (60%) of its free cash flow in the past year, which is within an average range for most companies.

It’s encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don’t drop precipitously.

Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.

historic-dividendHave Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That’s why it’s comforting to see Anglo American’s earnings have been skyrocketing, up 36% per annum for the past five years.

Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. Anglo American has delivered 13% dividend growth per year on average over the past 10 years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

To Sum It Up

Is Anglo American worth buying for its dividend? From a dividend perspective, we’re encouraged to see that earnings per share have been growing, the company is paying out less than half of its earnings, and a bit over half its free cash flow. Anglo American looks solid on this analysis overall, and we’d definitely consider investigating it more closely.

So while Anglo American looks good from a dividend perspective, it’s always worthwhile being up to date with the risks involved in this stock. For example, we’ve found 2 warning signs for Anglo American (1 makes us a bit uncomfortable!) that deserve your attention before investing in the shares.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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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Anglo American has become the latest mining group to report a sharp drop in earnings and shareholder payouts as waning demand for commodities and cost pressures squeeze margins. The FTSE 100 miner on Thursday reported a 28 per cent drop in underlying earnings before interest, tax, depreciation and amortisation to $8.7bn in the first six months of the year compared with the same period a year earlier, on revenues of $18.1bn. Anglo American blamed the drop in earnings on tight labour driven by Covid-19 absenteeism, supply chain disruptions, extreme weather and inflationary pressures.

(Bloomberg) — Chinese authorities are investigating the Minister of Industry and Information Technology Xiao Yaqing on suspicion of disciplinary violations, making him the most senior sitting cabinet official to be ensnared in a disciplinary probe in almost four years.

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The case was a “violation of discipline and law,” the country’s top anti-graft agency said in a statement Thursday, avoiding the common phrasing “serious violation of discipline and law.” The regulators didn’t offer further details on the alleged crimes by Xiao, whose ministry spearheads China’s efforts to build technologies from semiconductors to aviation, and supports the nation’s most promising startups in areas from chipmaking to bio-tech.

The probe against the 62-year-old official is unfolding weeks before the Communist Party’s 20th congress later this year, which is expected to reshuffle the country’s leadership. President Xi Jinping, who’s expected to secure a third term in the shake-up, has consolidated power over the past decade in part due to an enduring corruption crackdown that brought down dozens of former top cadres.

The announcement coincided with a monthly meeting of the Communist Party’s Politburo, which vowed to strive for the “best outcome” for economic growth this year, as concerns mount over the risks of a property crisis spreading to the broader financial system.

READ: China Looks for ‘Best Outcome’ as Economic Challenges Mount

Xiao’s ministry is the regulator for the country’s heavy industry, automobile, telecom and electronics sectors, overseeing companies from Huawei Technologies Co. to Xiaomi Corp. He has held the rank of cabinet minister since 2016, earlier leading government agencies including the country’s top state-owned assets watchdog. He attracted public attention earlier on Thursday as he was not included in a list of central government officials slated to attend the upcoming Party Congress.

Prior to his political career, Xiao mainly worked in the aluminum industry and was president of Aluminum Corp. of China when it bought a $14 billion stake in Rio Tinto Group with Alcoa Inc. in 2008. That derailed BHP Billiton Ltd.’s hostile bid for the world’s third-largest mining company and marked one of the biggest Chinese outbound investments.

Former Vice Public Security Minister Meng Hongwei, who was placed under investigation in October 2018, was the last official of such a senior rank to fall.

(Updates with details, background of Xiao)

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Investors set for last round of bumper payouts as margins are squeezed by falling commodity prices and cost inflation

Rio Tinto has signalled an end to the era of record returns in the mining sector, as the Anglo-Australian group reported a sharp drop in half-year profit and more than halved its dividend payment. Rio, the world’s largest producer of steelmaking ingredient iron ore, reported underlying earnings of $8.6bn for the six months to June, down from a record $12.2bn last year, on sales of almost $30bn. While that is still the second-highest half-year payout on record and in line with its dividend policy, the dividend is significantly lower than last year’s payment of $9.1bn and below what analysts had expected.

REE Automotive Ltd.

Proxima Powered by REE

REE will host an investor event on July 28, live-streamed from the American Center for Mobility in Ypsilanti, Mich., to provide a business update and showcase the first electric walk-in van Powered by a REE P7 electric chassis, paired with the newly-designed EAVX and Morgan Olson Proxima van body.

YPSILANTI, Mich., July 26, 2022 (GLOBE NEWSWIRE) — REE Automotive (NASDAQ: REE) will host an investor event on July 28, live-streamed from the American Center for Mobility in Ypsilanti, Mich., to provide a business update and showcase the first electric walk-in van Powered by a REE P7 electric chassis, paired with the newly-designed EAVX and Morgan Olson Proxima van body.

What: Live-streamed event to include a business update and Q&A session with REE’s management team including:

• Daniel Barel, Co-Founder & CEO,

• David Goldberg, CFO,

• Joshua Tech, COO, and

• Peter Dow, VP of Engineering.

When: Thursday, July 28 at 11 a.m. ET

Where: Register for the webcast here.

The event follows the start of prospective customer evaluations of the all-new electric step-in van, which leverages REE’s REEcorner technology and P7 electric vehicle chassis. Combined with EAVX and Morgan Olson’s decades of experience building walk-in step van bodies, the vehicle introduces new technologies to enhance driver ergonomics and efficiencies that will transform the industry.

For more information on Proxima Powered by REE, read the press release here, watch it in motion here, and visit https://www.lastmileevolution.com/.

MediaCaroline HutchesonHead of Global Communications | REE Automotive+1252-314-2028media@ree.auto

InvestorsLimor GruberVP Investor Relations | REE Automotive+972-50-5239233investors@ree.auto

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

About REE AutomotiveREE (Nasdaq: REE) is an automotive technology leader whose mission is to empower companies to build any size or shape of electric or autonomous vehicle – from Class 1 through Class 6 – for any application and any target market. REE aims to serve as the underpinning on top of which EVs and AVs will be built and envisions a future where EVs and AVs will be ‘Powered by REE’.

REE’s revolutionary technology – the REEcorner™ – 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 uses x-by-wire technology to control each of the corners of the vehicles with full drive-by-wire, brake-by-wire and steer-by-wire.

REE’s EV platforms afford complete freedom of design, enabling auto-manufacturers, OEMs, delivery & logistic fleets, Mobility-as-a-Service providers and new mobility players to design mission-specific EVs and AVs based on their exact business requirements and significantly reduce their time-to-market, lower TCO and meet zero-carbon regulations.

Headquartered in Herzliya, Israel, REE has an Engineering Center in the UK, as well as subsidiaries worldwide including Japan and Germany, and plans to open its U.S. headquarters and first Integration Center in Austin, Texas. REE’s unique CapEx-light manufacturing model leverages Tier-1 partners’ existing production lines; the company’s extensive partner ecosystem encompasses leading names including Hino Motors (truck arm of Toyota), Magna International, JB Poindexter, Navya and American Axle & Manufacturing to provide a full turnkey solution.

REE’s patented technology, together with its unique value proposition, position it to break new ground in e-Mobility.

For more information visit: https://www.ree.auto.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6345b793-fd94-444f-bdfb-66789aecfcce

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

Brighthouse Financial BHF is a holding company formed to own the legal entities that historically operated a substantial portion of the former Retail segment of MetLife, Inc.The Zacks Consensus Estimate for its current year earnings has been revised 30.3% downward over the last 60 days.

BHP Group Limited BHP is one of the world's largest diversified resource companies with operations across several continents with a market capitalization of around $183 billion. The Zacks Consensus Estimate for its current year earnings has been revised almost 21.1% downward over the last 60 days.

ASM International ASMIY is a leading supplier of equipment and solutions used to produce semiconductor devices, or integrated circuits, for both the front-end and back-end segments of the semiconductor market. The Zacks Consensus Estimate for its current year earnings has been revised 6.5% downward over the last 60 days.

View the entire Zacks Rank #5 List.

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 BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report ASM International NV (ASMIY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

By Praveen Menon and Siyi Liu

SYDNEY/BEIJING, July 21 (Reuters) – China's plan to centralise iron ore purchases has prompted questions whether the move could hit the bottomlines of global mining giants, such as Australia's Rio Tinto and BHP Group.

China, exposed to international prices of the steelmaking raw material as it must import nearly 80% of its annual consumption of about 1.2 billion tonnes, launched a new state-backed resources company on Tuesday.

The China Mineral Resources Group, with registered capital of 20 billion yuan ($3 billion), is tasked with investment in mining of minerals, as well as trading and purchasing, said Tianyancha, a Chinese online database of company information.

Global mining giants such as Rio, BHP and Fortescue Metals Group have refused to comment on the plans, but said there was no change in their relations with Chinese customers.

Fortescue supplies iron ore to customers under long-term contracts, Chief Executive Elizabeth Gaines said.

"We will continue to work closely with our customers and other key stakeholders in China to … optimise our distribution channels to meet the needs of our long-standing customers and the Chinese steel industry," Gaines said.

China accounted for 90% of Fortescue's revenue in the 2021 financial year.

The new company is expected to coordinate procurement of imported iron ore, develop domestic iron ore resources, and oversee development of mines overseas, the online database added.

Chinese business outlet Caixin also said this month that the body would centralise iron ore demand.

However, history showed plans for centralised iron ore purchases did not work, said BHP, the world's third largest producer of iron ore which sells the bulk of its output to China.

"At the end of the day, we believe that markets will sort out where the price needs to be based on supply and demand," Chief Financial Officer David Lamont told a business forum in Melbourne.

BHP led efforts more than a decade ago to end annual iron ore price-setting talks in a shift to market-based pricing.

Rival Anglo-Australian miner Rio Tinto declined to comment.

Still, a centralised approach to purchases seems likely to be more successful now than two decades ago, said Commonwealth Bank commodities analyst Vivek Dhar.

"That’s largely because of the recent consolidation among China's state-owned steel producers," he added.

"Further, the nationwide success of reducing steel production in the second half of 2021 provides hope that the steel sector can act in a unified way."

The impact of centralised purchases on top miners depends on the agency's ultimate objective, however, said Glyn Lawcock, head of mining research at Barrenjoey.

"The comments over the last few years clearly indicate that China is not happy with iron ore prices over $100 a tonne," Lawcock said.

Yet the short-term impact of centralised buying may be limited, as a long tail of private steel producers operates in China, he added.

"I don't think a buyers' club will have an impact in the short-term market, which is still very much driven by supply and demand." ($1=6.7593 Chinese yuan renminbi) (Reporting by Praveen Menon; Editing by Clarence Fernandez)

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

BHP Group Limited BHP is one of the world's largest diversified resource company with operations across several continents with a market capitalization of around $183 billion.The Zacks Consensus Estimate for its current year earnings has been revised 20.0% downward over the last 60 days.

Aviva AVVIY is the leading provider of indexed annuity and indexed life insurance products and its principal activity is the provision of financial products and services, focused on the following lines of business: long-term insurance and savings business, fund management and general insurance and health. The Zacks Consensus Estimate for its current year earnings has been revised 15.4% downward over the last 60 days.

BlackRock BLK  is a leading investment management company that offers products that span the risk spectrum, including active, enhanced and index strategies through a variety of structures that include separate accounts, mutual funds, iShares exchange-traded funds (ETFs), and other pooled investment vehicles. The Zacks Consensus Estimate for its current year earnings has been revised almost 13.5% downward over the last 60 days.

View the entire Zacks Rank #5 List.

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 BlackRock, Inc. (BLK) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Aviva PLC (AVVIY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

BHP Group BHP reported production details for the year ended Jun 30, 2022, and provided guidance for fiscal 2023. Total iron ore production for fiscal 2022 was 253 Mt (million tons), flat year on year and within its guidance of 249-259 Mt. The company met production guidance for copper, energy coal and metallurgical coal but missed the same for nickel due to a smelter outage in the June 2022 quarter.BHP’s copper production in fiscal 2022 was down 4% year over year to 1,573.5 kt. Metallurgical coal production decreased 9% to 29.1 Mt, while energy coal production was 13.7 Mt, down 4% year over year. Nickel production declined 14% year over year to 76.8 kt.Average realized prices for thermal coal and metallurgical coal for fiscal 2022 soared 271% and 225%, respectively. Average realized prices for nickel and copper surged 43% and 9%, respectively. However, iron ore prices declined 13%.

Quarterly Production & Peer Performances

In the April-June quarter, BHP’s iron ore production was down 2% year over year to 64.2 Mt. However, production improved 8% on a sequential basis, primarily due to enhanced performance at Western Australia Iron Ore (WAIO). This was driven by record production from the Mining Area C hub with the continued ramp-up of South Flank and improved supply chain performance.Brazilian miner Vale S.A. VALE reported its iron ore production for the second quarter of 2022 at 74.1 Mt, which came in 1.2% lower than the year-ago quarter but 17% higher than the first quarter of 2022.Vale lowered its iron ore production guidance for 2022 to 310-320 Mt citing the sale of the Midwestern System. Vale mentioned that it is adjusting production levels according to the current market conditions, and this decision is in sync with its “value over volume” philosophy/mantra.Last week, Rio Tinto Group RIO reported a 4% increase in second-quarter iron ore production to 78.6 Mt. Despite the impact of higher-than-average rainfall in May, continued focus on mine pit health and commissioning of Gudai-Darri supported production during the quarter under discussion.Rio Tinto’s iron production in the first half of this year was 150.3 Mt, 1% lower than the prior year. This was primarily due to the 6% decline reported in its first quarter production to 71.7 Mt.

Fiscal 2023 Guidance

BHP’s iron ore production guidance for fiscal 2023is at 249-260 Mt. The mid-point of the range indicates growth of 1% from fiscal 2022. WAIO production is expected between 246 Mt and 256 Mt (278 Mt and 290 Mt on a 100% basis), reflecting the tie-in of the debottlenecking port project and the continued ramp up of South Flank.The company expects copper production within 1,635 kt and 1,825 kt, suggesting a 10% year-on-year growth at the mid-point. Production guidance of Metallurgical coal is at 29-32 Mt compared with 29.1 Mt reported in fiscal 2022. The guidance for energy coal production is at 13-15 Mt. Nickel production for fiscal 2023 is expected between 80 kt and 90 kt, higher than the production of 76.8 kt reported in fiscal 2022.

Other Key Developments

The divestment of BHP’s 80% interest in BHP Mitsui Coal Pty Ltd (“BMC”) to Stanmore Resources was completed in May. The merger of BHP’s oil and gas portfolio with Woodside Energy was completed on Jun 1.BHP announced that it is retaining its New South Wales Energy Coal (“NSWEC”) unit and plans to continue mining up to the end of fiscal 2030. With the mining consent for the operation to expire in 2026, BHP is currently working toward acquiring the relevant approvals for the same.As of Jun 30, 2022, the company had one major project under development — the $5.7 billion Jansen Stage 1 project. It is tracking according to plan, and BHP is expecting to bring the first production forward to 2026.

Price PerformanceZacks Investment Research

Image Source: Zacks Investment Research

BHP’s shares have fallen 31.1% in a year, compared with the industry’s decline of 24.3%.

Zacks Rank & a Key Pick

BHP currently carries a Zacks Rank #5 (Strong Sell).

A better-ranked stock in the basic materials space is Albemarle Corporation ALB, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised upward by 26.5% in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 11% in a year.

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 BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report VALE S.A. (VALE) : Free Stock Analysis Report Rio Tinto PLC (RIO) : Free Stock Analysis Report Albemarle Corporation (ALB) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Vale S.A. VALE reported iron ore production of around 74.1 million tons for the second quarter of 2022, which was up 17% sequentially. Improvement at Southeastern Systems (mainly attributable to Brucutu, Itabira and Timbopeba) and upbeat performances in all operations at Southern Systems, particularly at Vargem Grande and Mutuca, led to the higher production numbers in the quarter. Northern System production improved, benefiting from better weather seasonality in June despite headwinds.

This brings the company’s year-to-date production to 137 million tons, which marks a 3.7% decline year on year. This is primarily due to a lower 6% drop in production in the first quarter on account of the heavy rainfall in Minas Gerais in January that halted the Southern and Southeastern Systems operations. Production in the second quarter of 2022 was down 1.2% on a year-on-year comparison.The company lowered its iron ore production guidance for 2022 to 310-320 Mt from its previous guidance of 320-335 Mt, citing the sale of the Midwestern System. Vale mentioned that it is adjusting production levels according to the current market conditions, and this decision is in sync with its “value over volume” philosophy.This lowered guidance might provide a much-needed boost to iron ore prices. Iron ore prices have been in a slump lately and have fallen below $100 per ton. Prices have been weighed down by apprehensions regarding weak demand from top consumer China due to the recurring COVID-19 outbreaks and low profitability at Chinese steel mills. Rising fears about a potential global recession-driven demand downturn continue to put pressure on prices as well.Coming back to Vale’s details for the second quarter, sales volumes of iron ore fines and pellets were around 73.2 Mt in the quarter. It represents a 23% increase from the first quarter of 2022. Compared with the second quarter of 2021, sales were flat. Pellet production was 8.7 Mt in the quarter under review, up 25% from the first quarter and 8% year on year, courtesy of improved performance in the Oman plant as a result of fewer maintenance activities and higher pellet feed availability at the Vargem Grande plant.Copper production for the quarter was down 24% year over year to 55.9 kt in the quarter. Compared with the first quarter of 2022, copper output was down 1.2% due to planned and corrective maintenance at the Salobo plant that offset the impact of the Sossego SAG mill resumption in early June and stronger performance of Canadian mines. Vale sold 51.5 kt of copper, which reflects a 31% decline from the last-year quarter. However, compared with the first quarter of this year, copper sales were up 2.4% due to the postponement of a shipment.Vale has revised its copper production to 270-285 kt to account for the longer-than-expected maintenance at the Sossego mill and additional maintenance at the Salobo mill in the back half of the year.Production of nickel was down 16% year over year and 24% sequentially to 34.8 kt in April to June period. Scheduled maintenance of downstream facilities, partially offset by strong performance at Onça Puma, impacted production in the quarter.Nickel sales were down 17% year on year to 39.3 kt. However, on sequential comparison, sales were up 0.8%, outpacing production by 13%, as first-quarter inventories were sold in the second quarter.Cobalt production reached 541 metric tons in the quarter under review, down 28.2% from the prior-year quarter and 28.3% sequentially. Gold production plunged 37.5% year over year and 15.5% sequentially to 60,000 troy ounces in second-quarter 2022. Platinum production was 21,000 troy ounces, down 30% year on year and 8.7% sequentially. Palladium produced was 28,000 troy ounces, down 22% year on year and 3.4% sequentially.

Production Numbers from Peers

Last week, Rio Tinto Group RIO reported that its iron ore shipments in the second quarter of 2022 rose 5% year over year to 79.9 Mt. Iron ore production was up 4% year over year to 78.6 Mt. Despite the impact of higher-than-average rainfall in May, continued focus on mine pit health and commissioning of Gudai-Darri supported production during the quarter under discussion.The total iron ore shipped by Rio Tinto is 151.4 Mt for the first half of 2022, which reflects a 2% drop year over year. Iron production in the first half of this year was 150.3 Mt, 1% lower than the prior year. This was primarily due to the 6% decline reported in its first-quarter production to 71.7 Mt.BHP Group BHP recently reported that its iron ore production for the fiscal year ended June 30, 2022, was in line with the prior period at 253 Mt. Production in June ended quarter was 64.1 Mt, down 2% year on year but up 8% sequentially.BHP’s production came within its iron ore production guidance between 249 Mt and 259 Mt for fiscal 2022. Production for the 2023 financial year is expected to be between 249 Mt and 260 Mt

Price Performance

Shares of Vale have fallen 42.6% in a year compared with the industry’s decline of 41.2%

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & a Stock to Consider

Vale currently sports a Zacks Rank #5 (Strong Sell).A better-ranked stock in the basic materials space is Albemarle Corporation ALB, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised upward by 26.5% in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 11% in a year.

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 BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report VALE S.A. (VALE) : Free Stock Analysis Report Rio Tinto PLC (RIO) : Free Stock Analysis Report Albemarle Corporation (ALB) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

The copper price jumped higher on Wednesday, rebounding from steep declines, as Antofagasta became the latest miner to cut production guidance in response to inflation, drought and maintenance problems. London-listed Antofagasta lowered its full-year output target to a range of 640,000 to 660,000 tonnes, from 660,000 to 690,000 previously, blaming a leak in an underground pipeline at its Los Pelambres operation in Chile and continued “uncertainty about water availability”. Shares in Antofagasta fell as much as 1.3 per cent, recovering to trade 0.8 per cent higher on the day at 1,055p.

(Bloomberg) — Mining giant BHP Group has joined rival Rio Tinto Group in signaling more turbulence to come for commodities producers as costs balloon and demand for everything from iron ore to copper hits headwinds.

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The world’s biggest miner warned Tuesday of an “overall slowing of global growth” amid war in Ukraine, Europe’s energy crisis and global monetary tightening. The commentary — from its latest quarterly output update — echoed remarks from Rio last week. BHP also said cost pressures would linger over the coming 12 months.

While profitability is still strong, both miners “are trying to prepare the market in case we see a significant slowdown in Chinese demand,” Gavin Wendt, a senior resource analyst at MineLife Pty said by phone. “The tougher conditions are coming at a time when prices they’re receiving from commodities are easing, putting pressure on margins.”

Commodities prices have slumped in recent months as demand wavers in China and forecasts multiply for recessions across developed economies. Iron ore, the biggest earner for both companies, plunged below $100 a ton last week as China tackled fresh turmoil in its beleaguered property market, including a wave of homebuyer boycotts of mortgage payments.

At the same time, miners face rising costs. “We expect the lag effect of inflationary pressures to continue through the 2023 financial year, along with labor market tightness and supply chain constraints,” BHP’s Chief Executive Officer Mike Henry said in the statement.

Stimulus measures in China would boost growth there over the coming year, Henry said. Asia’s biggest economy grew by only 0.4% last quarter, and there’s uncertainty over when government steps to shore up the economy will take effect. Rio has described the headwinds in China as “considerable”.

Iron Giant

BHP’s shipments of the steel-making material from Western Australia’s Pilbara region reached 72.8 million tons in the three months ended June 30, down 1.2% from a year earlier and up 8.5% from the previous quarter, which was impacted by Covid-19 disruptions. That compares with a median estimate from three analysts of 73.1 million tons.

Rio last week announced a 5% increase in its quarterly iron ore shipments. Vale SA, which vies with BHP for the No.2 spot behind Rio in iron ore output, is due to report its production figures for the period later Tuesday.

“There’s definitely been more uncertainty seen in some time and that’s been reflected in the outlook” provided by BHP and Rio, said David Radclyffe, senior mining analyst at Global Mining Research Pty Ltd. Still, he added “their balance sheets have never been so good; they’re well-placed” to weather the downturn.

BHP is due to report its earnings for the period on Aug. 16. On Tuesday it forecast iron ore output from its Western Australian operations for the year started July 1 of between 246 million tons and 256 million tons, after it reached 253 million tons in the 12 months just completed.

For more highlights from BHP’s production report, including copper, nickel, coal output and forecasts, click here.

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