Potash Archives - MiningFeeds

SANTIAGO (Reuters) – Chilean state-run copper miner Codelco said on Monday that it had reached an agreement with BHP for the multinational firm to explore the "Anillo" mining property.

BHP will spend up to $40 million to explore the area, Codelco said in a statement. BHP could form a tie-up with Codelco to mine there if there is evidence of a favorable business case, Codelco added.

(Reporting by Fabian Cambero; Editing by Brendan O'Boyle)

Release Date: May 08, 2025

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

Positive Points

Compass Minerals International Inc (NYSE:CMP) successfully reduced North American highway deicing inventory values by 47% and volumes by 59% year over year.
The company realized approximately $145 million in working capital release from inventory, aiding in reducing total debt by more than $170 million.
Consolidated revenue for the second quarter increased by 36% year over year to $495 million.
The company is well-positioned to optimize production and inventory levels for the upcoming North American highway deicing bid season.
CMP increased its adjusted EBITDA guidance for the year, showing improvements in both the Salt and corporate segments.

Negative Points

Operating loss for the quarter was $3.1 million, although improved from the previous year’s $39.3 million loss.
Consolidated net loss was $32 million, compared to a net loss of $38.9 million in the prior period.
Pricing for salt was down 5% year over year, with net revenue per ton decreasing by 4%.
Operating earnings per ton in the salt business decreased by 31%, and adjusted EBITDA per ton decreased by roughly 30%.
The plant nutrition business saw an 8% decrease in pricing year over year, despite a 16% increase in revenue.

Q & A Highlights

Warning! GuruFocus has detected 9 Warning Signs with CMP.

Q: Can you explain why accounts receivable levels rose from December to March, and if this will be a significant source of cash going forward? A: Peter Feldman, CFO, explained that there are a couple of insurance settlement matters within the accounts receivable and accounts payable balances, which caused a slight increase. However, as the quarter progresses, these balances are expected to decrease slightly due to the natural flow of inventory.

Q: What insights can you share about the upcoming bid season for highway deicing salt, particularly regarding volume commitments and regional demand? A: Edward Dowling, CEO, noted that the market is more constructive compared to previous years due to lower inventories and a recent winter season. Ben Nichols, Chief Commercial Officer, added that early data points on tender sizes indicate a positive dynamic, with some regions showing significantly increased demand.

Q: What are the plans for improving margins in the SOP (Sulfate of Potash) business, given recent high shipment levels? A: Edward Dowling, CEO, stated that efforts are underway to control brine chemistries and restore evaporation ponds to historical levels, which will help reduce SOP production costs. Pat Marin, COO, added that ongoing projects and capital improvements will drive incremental improvements over time.

Q: How is the company addressing the balance sheet and cash flow statement, considering recent events? A: Peter Feldman, CFO, mentioned that the company is managing accounts receivable and payable balances, and expects a natural flow of inventory to help stabilize these figures. The company is also focused on reducing debt and optimizing cash flow.

Q: What is the company’s strategy for the North American highway deicing business, given the recent inventory drawdown? A: Edward Dowling, CEO, explained that the company successfully reduced inventory levels, freeing up cash and reducing debt. The company is now well-positioned to optimize production and inventory levels for the upcoming bid season, with a focus on maintaining flexibility in operations and capital plans.

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

This article first appeared on GuruFocus.

For the quarter ended March 2025, Compass Minerals (CMP) reported revenue of $494.6 million, up 35.9% over the same period last year. EPS came in at $0.63, compared to $1.49 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $413.88 million, representing a surprise of +19.50%. The company delivered an EPS surprise of +61.54%, with the consensus EPS estimate being $0.39.

While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

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

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

Average Sales Price per ton – Plant Nutrition: $626.02 versus the two-analyst average estimate of $608.85.
Sales volumes – Total Salt: 5,105 KTon versus 4,150.78 KTon estimated by two analysts on average.
Average Sales Price per ton – Total Salt: $84.76 versus $87.42 estimated by two analysts on average.
Sales volumes – Plant Nutrition: 93 KTon versus the two-analyst average estimate of 76 KTon.
Sales to external customers- Salt: $432.70 million versus $362.42 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +39.4% change.
Sales to external customers- Plant Nutrition: $58.30 million versus the two-analyst average estimate of $46.26 million. The reported number represents a year-over-year change of +16.4%.
Sales to external customers- Corporate & Other: $3.60 million compared to the $3.55 million average estimate based on two analysts. The reported number represents a change of +2.9% year over year.
Operating earnings- Plant Nutrition: -$1.80 million versus the two-analyst average estimate of -$3.66 million.
Operating earnings- Corporate and Other: -$68.20 million versus -$16.50 million estimated by two analysts on average.
Operating earnings- Salt: $66.90 million versus the two-analyst average estimate of $63.52 million.

View all Key Company Metrics for Compass here>>>Shares of Compass have returned +48.7% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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

Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Compass Minerals (CMP) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 61.54%. A quarter ago, it was expected that this minerals producer would post a loss of $0.05 per share when it actually produced a loss of $0.55, delivering a surprise of -1,000%.

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

Compass , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $494.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 19.50%. This compares to year-ago revenues of $364 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

Compass shares have added about 24.1% since the beginning of the year versus the S&P 500's decline of -4.7%.

What's Next for Compass?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.17 on $209.96 million in revenues for the coming quarter and -$0.53 on $1.16 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical – Diversified is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Innospec (IOSP), another stock in the same industry, has yet to report results for the quarter ended March 2025. The results are expected to be released on May 8.

This specialty chemicals company is expected to post quarterly earnings of $1.40 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Innospec's revenues are expected to be $459.3 million, down 8.2% from the year-ago quarter.

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

Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report

Innospec Inc. (IOSP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

OVERLAND PARK, Kan. (AP) — OVERLAND PARK, Kan. (AP) — Compass Minerals International Inc. (CMP) on Wednesday reported a loss of $32 million in its fiscal second quarter.

The Overland Park, Kansas-based company said it had a loss of 77 cents per share. Earnings, adjusted for one-time gains and costs, came to 63 cents per share.

The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share.

The minerals producer posted revenue of $494.6 million in the period, also beating Street forecasts. Three analysts surveyed by Zacks expected $413.9 million.

_____

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CMP at https://www.zacks.com/ap/CMP

OVERLAND PARK, Kan., May 07, 2025–(BUSINESS WIRE)–Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported fiscal 2025 second-quarter results.

Unless otherwise noted, it should be assumed that time periods referenced below are on a fiscal-year basis.

MANAGEMENT COMMENTARY

"Compass Minerals continues to make progress on its back-to-basics strategy, a key tenet of which is optimization. This is a core principle that we will prioritize as we continue on our path to become a more efficient and profitable organization, and we must apply it in all aspects of our business," said Edward C. Dowling Jr., president and CEO. "The second quarter provides an opportunity to illustrate the benefits that can be derived from focusing on that tenet as well as explain steps we are taking to further optimize the business."

"Last year at this time, we laid out a plan to curtail mining production aimed at reducing and optimizing salt inventory levels throughout the 2024/2025 North American highway deicing season. While this would result in higher costs for a period of time, successful execution on that plan would allow us to convert excess inventory into cash and contribute to improving the supply/demand balance in a market that was long supply following consecutive weak winters. Fast forward to today, I'm pleased to report that we executed well against our plan. We realized a working capital release of nearly $150 million out of inventory in the second quarter, which contributed to the company reducing net total debt by approximately $170 million or 18% in the quarter. Year over year, North American highway deicing inventory value and volumes for the company are down 47% and 59%, respectively. As a result of the stronger winter weather that we saw in the quarter, a number of depots across the company's network were fully depleted coming out of the deicing season. Moreover, we believe that there were significant competitor and customer drawdowns of salt inventory across markets we serve. We are in the process of ramping up production, which we would expect to allow for lower unit costs going forward. As we approach the 2025/2026 bid season, we're well positioned to optimize production and inventory levels across our platform and maximize value that we realize for this essential mineral product going forward."

"In late March of this year, we announced actions to further optimize the cost structure of the company and focus its activities on its core Salt and Plant Nutrition businesses. The company eliminated over 10% of its corporate workforce and announced that we were beginning to wind down Fortress North America, steps that will allow the company to generate additional cash flow and accelerate deleveraging. We also announced that we would continue to scrutinize activities across the company to identify additional opportunities to further rationalize our cost structure."

"Compass Minerals has exceptional and unique assets that are virtually irreplaceable, enjoy durable competitive advantages and have strong leadership positions in our respective marketplaces. As we continue to execute on our back-to-basics strategy, we will unlock the intrinsic value of our business."

QUARTERLY FINANCIAL RESULTS
(in millions, except per share data)	Three Months EndedMarch 31,						Six Months EndedMarch 31,
(in millions, except per share data)		2025			2024			2025			2024
Revenue	$	494.6		$	364.0		$	801.8		$	705.7
Operating loss		(3.1	)		(39.3	)		(2.6	)		(92.9	)
Adjusted operating earnings*		54.8			73.8			56.2			98.6
Adjusted EBITDA*		84.1			95.7			116.2			157.9
Net loss		(32.0	)		(38.9	)		(55.6	)		(114.2	)
Net loss per diluted share		(0.77	)		(0.94	)		(1.34	)		(2.77	)
Adjusted net earnings*		25.7			74.2			2.8			77.3
Adjusted net earnings* per diluted share		0.63			1.78			0.07			1.85
*Non-GAAP financial measure. Reconciliations to the most directly comparable GAAP financial measure are provided in tables at the end of this press release.

COMMENTARY ON ITEMS IMPACTING COMPARABILITY

Comparability of reported results for Compass Minerals was impacted by the performance of Fortress North America (Fortress), the company's fire retardant business. It was announced in late March of 2025 that Compass Minerals was winding down this business. The company has recognized non-cash impairments related to Fortress of $53.0 million and $47.6 million in the second quarters of 2025 and 2024, respectively. Additionally, non-cash gains related to the decline in valuation of the contingent consideration liability associated with the acquisition of Fortress were $7.9 million and $23.8 million, respectively, in the second quarters of 2025 and 2024. As of March 31, 2025, the fair value of the contingent consideration liability is zero.

The company's presentation of adjusted EBITDA adjusts for loss on impairments; changes in the valuation of the contingent consideration liability are not adjusted out of reported adjusted EBITDA consistent with accounting guidance. Given the significance of the adjustment to the reported periods and for ease of comparability, the following table is provided to present the impact to adjusted EBITDA for changes in the valuation of the contingent consideration liability. As the fair value of this liability is zero as of March 31, 2025, the following reconciliation is not expected in future reporting periods.

(in millions, except per share data)	Three Months EndedMarch 31,
(in millions, except per share data)		2025			2024
Adjusted EBITDA, as reported*	$	84.1		$	95.7
Impact of change in Fortress contingent consideration liability		(7.9	)		(23.8	)
Adjusted EBITDA, as modified	$	76.2		$	71.9
*Non-GAAP financial measure. Reconciliations to the most directly comparable GAAP financial measure are provided in tables at the end of this press release.

SALT BUSINESS COMMENTARY

Reducing North American highway deicing salt inventory volumes has been a focus for Compass Minerals, which led to the company's decision to curtail production at its Goderich mine, and to a lesser extent at the Cote Blanche mine, in 2024. This curtailment of production resulted in higher cost production per ton, due to lower fixed cost absorption, being inventoried throughout 2024. As the company sells this higher cost 2024 inventory, there is an adverse impact to cost per ton that is reflected in the financial results below. Consistent with prior comments, Compass Minerals believes the benefits from reducing excess inventory, including harvesting working capital tied up inventory and contributing to a rebalancing of supply across the market, outweigh the near-term production cost per ton impacts from curtailing production. The company made significant progress on this front in the quarter, with North American highway deicing inventory values and volumes down 47% and 59%, respectively, year over year.

Operating earnings for the quarter were essentially flat at $66.9 million from the prior-year period. Adjusted EBITDA increased to $85.5 million, up 4% from the prior-year period. Adjusted EBITDA per ton declined 30% to $16.75 as a result of the company's deliberate actions to prioritize inventory rationalization of North American highway deicing salt. Adjusted EBITDA per ton is anticipated to improve as highway deicing salt produced at more normalized production levels is sold in future periods.

Salt revenue totaled $432.7 million and was up 39% year over year, driven by a 47% year-over-year sales volume increase, partially offset by a 5% decrease in average sales price. In the highway deicing business, the company realized a 5% decrease in average highway deicing selling price that reflects high inventory levels across the broader market entering the 2024/2025 highway deicing season. Highway deicing sales volumes increased 51% due to stronger winter weather conditions across the company's served markets year over year. Consumer and industrial (C&I) pricing rose 5% year over year to approximately $207 per ton and sales volumes increased by 24% primarily driven by higher retail deicing demand across the company's served markets.

Distribution costs per ton decreased 7% year over year, while all-in product costs (defined at the segment level as sales to external customers less distribution costs less operating earnings) per ton rose 8% from the comparable prior-year quarter due to the production cost dynamics for 2024-produced salt described above.

PLANT NUTRITION BUSINESS COMMENTARY

Plant Nutrition revenue for the quarter totaled $58.3 million, up 16% year over year on strong sales volume. This was led by improved sales volumes, which grew by 19,000 tons, a 26% improvement year over year. The average segment sales price for the quarter was down 8% year over year to approximately $626 per ton, reflecting supply conditions of potassium-based fertilizers globally. Per-unit distribution costs for the quarter increased 13% year over year due to an increase in sales in markets further away from the company's core California markets. Reported all-in product costs per ton in the prior period included a non-cash impairment of goodwill in the Plant Nutrition business, resulting in a decrease of 58% year over year to approximately $544 per ton. Excluding the prior year goodwill impairment, all-in product cost per ton decreased by 8%.

Operating loss in the Plant Nutrition business was $1.8 million for the quarter, compared to operating loss of $53.0 million in the prior-year quarter, which includes the aforementioned goodwill impairment. Adjusted EBITDA declined to $5.6 million versus $7.3 million last year.

CASH FLOW AND FINANCIAL POSITION

Net cash provided by operating activities amounted to $182.8 million for the six months ended March 31, 2025, compared to $33.9 million in the prior year. A significant reduction in North American salt inventory levels drove the significant improvement year over year.

Net cash used in investing activities was $35.9 million for the six months ended March 31, 2025, down from $79.7 million in the prior year principally driven by lower capital spending. Total capital spending for the six months ended March 31, 2025 was $35.8 million.

Net cash used in financing activities was $116.8 million for the six months ended March 31, 2025, which included net debt payments of $109.8 million. In the prior year, net cash used in financing activities reflected net borrowings of $72.1 million.

The company ended the quarter with $328.6 million of liquidity, comprised of $49.5 million in cash and cash equivalents and $279.1 million of availability under its $325 million revolving credit facility.

UPDATED FISCAL 2025 OUTLOOK

The company's salt and fertilizer production in Canada is qualified under the United States-Mexico-Canada (USMCA) trade agreement. Accordingly, Compass Minerals' exports from Canada into the United States are exempt from tariffs at this time.

Salt Segment
	2025 Range1
Highway deicing sales volumes (thousands of tons)	8,550 – 8,900
Consumer and industrial sales volumes (thousands of tons)	1,900 – 2,000
Total salt sales volumes (thousands of tons)	10,450 – 10,900

Revenue (in millions)	$975 – $1,050
Adj. EBITDA (in millions)	$215 – $230

(1)

Range for fiscal 2025 reflects the company's committed book of business for the period and assumes an average historical sales-to-commitment outcomes.

The company's outlook has been revised to reflect the completion of the North American highway deicing season. Stronger winter weather in January and February boosted the forecast for sales volumes for the year.

Plant Nutrition Segment
	2025 Range
Sales volumes (thousands of tons)	295 – 315
Revenue (in millions)	$180 – $200
Adj. EBITDA (in millions)	$17 – $24

Guidance for the Plant Nutrition segment is unchanged from the outlook provided in February of 2025.

Corporate
	2025 Range
	Total1
Adj. EBITDA (in millions)	($59) – ($52)

(1)

Includes $3 to $5 million in cash expenses related to Fortress.

Guidance for Corporate includes corporate expenses in support of the company's core businesses, Fortress financial results, and the results of DeepStore, the company's records services business in the U.K. The outlook has been updated to reflect recent actions to align the company's cost structure with current business needs. Included in the above is $7.9 million of non-cash gain related to the decline in the fair value of the Fortress contingent consideration liability discussed above.

Total Compass Minerals
	2025 Adjusted EBITDA
	Salt	Plant Nutrition	Corporate1	Total
Adj. EBITDA (in millions)	$215 – $230	$17 – $24	($59) – ($52)	$173 – $202

	2025 Capital Expenditures
				Total
Capital expenditures (in millions)				$75 – $85

(1)

Includes financial contribution from DeepStore and Fortress.

Total planned capital expenditures are unchanged from the company's previously provided guidance. The company is committed to managing capital expenditures so that they align with the cash generation performance of the business.

Other Assumptions
($ in millions)	2025 Range
Depreciation, depletion and amortization	$105 – $115
Interest expense, net	$67 – $72
Effective income tax rate (excl. valuation allowance)	13% – 18%

Guidance for the 2025 effective income tax rate reflects the income mix by country with income recognized in foreign jurisdictions offset by losses recognized in the U.S.

CONFERENCE CALL

Compass Minerals will discuss its results on a conference call tomorrow morning, Thursday, May 8, at 9:30 a.m. ET (8:30 a.m. CT). To access the conference call, please visit the company’s website at investors.compassminerals.com or dial 800-715-9871. Callers must provide the conference ID number 7896827. Outside of the U.S. and Canada, callers may dial 646-307-1963. Replays of the call will be available on the company’s website.

A supporting corporate presentation with 2025 second-quarter results is available at investors.compassminerals.com.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops while supporting sustainable agriculture. Compass Minerals operates 12 production and packaging facilities with nearly 1,800 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

Forward-Looking Statements and Other Disclaimers

This press release may contain forward-looking statements, including, without limitation, statements about future efficiency and profitability, reduction of salt inventory volumes, cost optimization, Fortress North America wind down, cash flow, deleveraging, competitive advantages, efforts to unlock intrinsic value, the opportunity to and potential benefits of refinancing, and the company's outlook for 2025, including its expectations regarding sales volumes, revenue, Adjusted EBITDA, depreciation, depletion, and amortization, interest expense, tax rates, and capital expenditures. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. The company uses words such as "may," "would," "could," "should," "will," "likely," "expect," "anticipate," "believe," "intend," "plan," "forecast," "outlook," "project," "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements or forward-looking information. These statements are based on the company’s current expectations and involve risks and uncertainties that could cause the company’s actual results to differ materially. The differences could be caused by a number of factors, including without limitation (i) weather conditions, (ii) inflation, the cost and availability of transportation for the distribution of the company’s products and foreign exchange rates, (iii) pressure on prices and impact from competitive products, and (iv) any inability by the company to successfully implement its strategic priorities or its cost-saving or enterprise optimization initiatives. For further information on these and other risks and uncertainties that may affect the company’s business, see the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of the company’s Amended Annual Report on Form 10-K for the period ended Sept. 30, 2024, and its Quarterly Reports on Form 10-Q for the quarters ended Dec. 31, 2024 and March 31, 2025, filed or to be filed with the SEC, as well as the company's other SEC filings. The company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law. Because it is not possible to predict or identify all such factors, this list cannot be considered a complete set of all potential risks or uncertainties.

Non-GAAP Measures

In addition to using U.S. generally accepted accounting principles ("GAAP") financial measures, management uses a variety of non-GAAP financial measures described below to evaluate the company’s and its operating segments’ performance. While the consolidated financial statements provide an understanding of the company’s overall results of operations, financial condition and cash flows, management analyzes components of the consolidated financial statements to identify certain trends and evaluate specific performance areas.

Management uses EBITDA, EBITDA adjusted for items which management believes are not indicative of the company’s ongoing operating performance ("Adjusted EBITDA") and EBITDA margin to evaluate the operating performance of the company’s core business operations because its resource allocation, financing methods and cost of capital, and income tax positions are managed at a corporate level, apart from the activities of the operating segments, and the operating facilities are located in different taxing jurisdictions, which can cause considerable variation in net earnings. Management also uses adjusted operating earnings, adjusted operating margin, adjusted net earnings, and adjusted net earnings per diluted share, which eliminate the impact of certain items that management does not consider indicative of underlying operating performance. The presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. Management believes these non-GAAP financial measures provide management and investors with additional information that is helpful when evaluating underlying performance. EBITDA and Adjusted EBITDA exclude interest expense, income taxes and depreciation, depletion and amortization, each of which are an essential element of the company’s cost structure and cannot be eliminated. In addition, Adjusted EBITDA and Adjusted EBITDA margin exclude certain cash and non-cash items, including stock-based compensation, impairment charges and certain restructuring charges. Consequently, any measure that excludes these elements has material limitations. The non-GAAP financial measures used by management should not be considered in isolation or as a substitute for net earnings, operating earnings, cash flows or other financial data prepared in accordance with GAAP or as a measure of overall profitability or liquidity. These measures are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation. The calculation of non-GAAP financial measures as used by management is set forth in the following tables. All margin numbers are defined as the relevant measure divided by sales. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring, unusual items and/or distinct non-core initiatives without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company’s results.

Adjusted operating earnings, adjusted operating earnings margin, adjusted net earnings (loss), and adjusted net earnings (loss) per diluted share are presented as supplemental measures of the company’s performance. Management believes these measures provide management and investors with additional information that is helpful when evaluating underlying performance and comparing results on a year-over-year normalized basis. These measures eliminate the impact of certain items that management does not consider indicative of underlying operating performance. These adjustments are itemized below. Adjusted net earnings (loss) per diluted share is adjusted net earnings (loss) divided by weighted average diluted shares outstanding. You are encouraged to evaluate the adjustments itemized above and the reasons management considers them appropriate for supplemental analysis. In evaluating these measures you should be aware that in the future the company may incur expenses that are the same as or similar to some of the adjustments presented below.

Special Items Impacting the Three Months Ended March 31, 2025 (unaudited, in millions, except per share data)
Item Description	Segment	Line Item	Amount		TaxEffect(1)			After Tax		EPS Impact
Product recall costs	Salt	Product cost and Other operating income	$	0.9	$	(0.2	)	$	0.7	$	0.02
Restructuring charges(2)	Salt	Other operating income		0.3		—			0.3		0.01
Restructuring charges(2)	Corporate and Other	Other operating income		3.7		—			3.7		0.09
Impairments	Corporate and Other	Loss on impairments, net		53.0		—			53.0		1.28
Total			$	57.9	$	(0.2	)	$	57.7	$	1.40

Special Items Impacting the Three Months Ended March 31, 2024 (unaudited, in millions, except per share data)
Item Description	Segment	Line Item	Amount		TaxEffect(1)		After Tax		EPS Impact
Restructuring charges(2)	Corporate and Other	Other operating income	$	11.1	$	—	$	11.1	$	0.27
Restructuring charges(2)	Salt	Other operating income		0.4		—		0.4		0.01
Restructuring charges(2)	Plant Nutrition	Other operating income		0.6		—		0.6		0.01
Impairments	Corporate and Other	COGS and Loss on impairments, net		50.0		—		50.0		1.20
Goodwill impairment	Plant Nutrition	Loss on impairments, net		51.0		—		51.0		1.23
Total			$	113.1	$	—	$	113.1	$	2.72

Special Items Impacting the Six Months Ended March 31, 2025 (unaudited, in millions, except per share data)
Item Description	Segment	Line Item	Amount		TaxEffect(1)			After Tax		EPS Impact
Product recall costs	Salt	Product cost and Other operating income	$	1.8	$	(0.4	)	$	1.4	$	0.03
Restructuring charges(2)	Salt	Other operating income		0.3		—			0.3		0.01
Restructuring charges(2)	Corporate and Other	Other operating income		3.7		—			3.7		0.09
Impairments	Corporate and Other	Loss on impairments, net		53.0		—			53.0		1.28
Total			$	58.8	$	(0.4	)	$	58.4	$	1.41

Special Items Impacting the Six Months Ended March 31, 2024 (unaudited, in millions, except per share data)
Item Description	Segment	Line Item	Amount		TaxEffect(1)		After Tax		EPS Impact
Restructuring charges(2)	Corporate and Other	Other operating income	$	13.6	$	—	$	13.6	$	0.32
Restructuring charges(2)	Salt	Other operating income		0.4		—		0.4		0.01
Restructuring charges(2)	Plant Nutrition	Other operating income		1.7		—		1.7		0.04
Impairments	Corporate and Other	COGS and Loss on impairments, net		124.8		—		124.8		3.02
Goodwill impairment	Plant Nutrition	Loss on impairments, net		51.0		—		51.0		1.23
Total			$	191.5	$	—	$	191.5	$	4.62

(1)		There were no substantial income tax benefits related to these items given the U.S. valuation allowances on deferred tax assets. Applicable product recall costs reflect an impact from Canadian taxes.
(2)		Restructuring charges do not include certain reductions in stock-based compensation associated with forfeitures stemming from the restructuring activities.

Reconciliation for Adjusted Operating Earnings (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Operating loss	$	(3.1	)	$	(39.3	)	$	(2.6	)	$	(92.9	)
Product recall costs(1)		0.9			—			1.8			—
Restructuring charges(2)		4.0			12.1			4.0			15.7
Loss on impairments, net(3)		53.0			101.0			53.0			175.8
Adjusted operating earnings	$	54.8		$	73.8		$	56.2		$	98.6
Sales		494.6			364.0			801.8			705.7
Operating margin		(0.6	)%		(10.8	)%		(0.3	)%		(13.2	)%
Adjusted operating margin		11.1	%		20.3	%		7.0	%		14.0	%

(1)		The company recognized costs related to a recall of food-grade salt produced at its Goderich plant.
(2)		The company incurred severance and related charges due to a reductions in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business during the three and six months ended March 31, 2025. The company also incurred severance and related charges for the three and six months ended March 31, 2024, due to reductions in workforce and changes to executive leadership and additional restructuring costs for the termination of our lithium development project.
(3)		For the three and six months ended March 31, 2025, the company recognized impairments of intangible assets related to the exit of the Fortress fire retardant business. For the three and six months ended March 31, 2024, the company recognized impairments of long-lived assets related to the termination of the lithium development project; Fortress goodwill, intangible assets and inventory; and Plant Nutrition goodwill.

Reconciliation for Adjusted Net Earnings (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Net loss	$	(32.0	)	$	(38.9	)	$	(55.6	)	$	(114.2	)
Product recall costs(1)		0.9			—			1.8			—
Restructuring charges(2)		4.0			12.1			4.0			15.7
Loss on impairments, net(3)		53.0			98.6			53.0			173.4
Loss on inventory impairment(3)		—			2.4			—			2.4
Income tax effect		(0.2	)		—		$	(0.4	)		—
Adjusted net earnings	$	25.7		$	74.2		$	2.8		$	77.3

Net loss per diluted share	$	(0.77	)	$	(0.94	)	$	(1.34	)	$	(2.77	)
Adjusted net earnings per diluted share	$	0.63		$	1.78		$	0.07		$	1.85
Weighted-average common shares outstanding (in thousands):
Diluted		41,521			41,306			41,480			41,255

(1)		The company recognized costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and six months ended March 31, 2025 were $0.9 million ($0.7 million net of tax) and $1.8 million ($1.4 million net of tax), respectively.
(2)		The company incurred severance and related charges due to a reductions in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business during the three and six months ended March 31, 2025. The company also incurred severance and related charges for the three and six months ended March 31, 2024, due to reductions in workforce and changes to executive leadership and additional restructuring costs for the termination of our lithium development project.
(3)		For the three and six months ended March 31, 2025, the company recognized impairments of intangible assets related to the exit of the Fortress fire retardant business. For the three and six months ended March 31, 2024, the company recognized impairments of long-lived assets related to the termination of the lithium development project; Fortress goodwill, intangible assets and inventory; and Plant Nutrition goodwill.

Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Net loss	$	(32.0	)	$	(38.9	)	$	(55.6	)	$	(114.2	)
Interest expense		18.0			17.3			34.9			33.2
Income tax expense (benefit)		9.8			(15.9	)		19.5			(12.3	)
Depreciation, depletion and amortization		26.5			26.8			53.3			52.3
EBITDA		22.3			(10.7	)		52.1			(41.0	)
Adjustments to EBITDA:
Stock-based compensation – non-cash		2.8			(4.9	)		6.7			7.0
Interest income		(0.2	)		(0.2	)		(0.6	)		(0.6	)
Gain on foreign exchange		(0.1	)		(2.5	)		(5.3	)		(0.6	)
Product recall costs(1)		0.9			—			1.8			—
Restructuring charges(2)		4.0			12.1			4.0			15.7
Loss on impairments, net(3)		53.0			101.0			53.0			175.8
Other expense, net		1.4			0.9			4.5			1.6
Adjusted EBITDA	$	84.1		$	95.7		$	116.2		$	157.9

(1)		The company recognized costs related to a recall of food-grade salt produced at its Goderich plant.
(2)		The company incurred severance and related charges due to a reductions in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business during the three and six months ended March 31, 2025. The company also incurred severance and related charges for the three and six months ended March 31, 2024, due to reductions in workforce and changes to executive leadership and additional restructuring costs for the termination of our lithium development project.
(3)		For the three and six months ended March 31, 2025, the company recognized impairments of intangible assets related to the exit of the Fortress fire retardant business. For the three and six months ended March 31, 2024, the company recognized impairments of long-lived assets related to the termination of the lithium development project; Fortress goodwill, intangible assets and inventory; and Plant Nutrition goodwill.

Salt Segment Performance (unaudited, in millions, except for sales volumes and prices per short ton)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Sales	$	432.7		$	310.4		$	674.9		$	584.7
Operating earnings	$	66.9		$	65.8		$	96.3		$	116.7
Operating margin		15.5	%		21.2	%		14.3	%		20.0	%
Adjusted operating earnings(1)	$	68.1		$	66.2		$	98.4		$	117.1
Adjusted operating margin(1)		15.7	%		21.3	%		14.6	%		20.0	%
EBITDA(1)	$	84.3		$	82.0		$	131.2		$	148.1
EBITDA(1) margin		19.5	%		26.4	%		19.4	%		25.3	%
Adjusted EBITDA(1)	$	85.5		$	82.4		$	133.3		$	148.5
Adjusted EBITDA(1) margin		19.8	%		26.5	%		19.8	%		25.4	%
Sales volumes (in thousands of tons):
Highway deicing		4,583			3,045			6,570			5,311
Consumer and industrial		522			421			1,028			1,010
Total Salt		5,105			3,466			7,598			6,321
Average prices (per ton):
Highway deicing	$	70.86		$	74.72		$	70.45		$	72.86
Consumer and industrial	$	206.71		$	196.93		$	206.25		$	195.77
Total Salt	$	84.76		$	89.55		$	88.83		$	92.50

(1)

Non-GAAP financial measure. Reconciliations follow in these tables.

Reconciliation for Salt Segment Adjusted Operating Earnings (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Reported GAAP segment operating earnings	$	66.9		$	65.8		$	96.3		$	116.7
Restructuring charges(1)		0.3			0.4			0.3			0.4
Product recall costs(2)		0.9			—			1.8			—
Segment adjusted operating earnings	$	68.1		$	66.2		$	98.4		$	117.1
Segment sales		432.7			310.4			674.9			584.7
Segment operating margin		15.5	%		21.2	%		14.3	%		20.0	%
Segment adjusted operating margin		15.7	%		21.3	%		14.6	%		20.0	%

(1)		The company incurred severance and related charges due to a reduction of its workforce.
(2)		The company incurred costs related to a product recall of food-grade salt produced at its Goderich plant.

Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Reported GAAP segment operating earnings	$	66.9		$	65.8		$	96.3		$	116.7
Depreciation, depletion and amortization		17.4			16.2			34.9			31.4
Segment EBITDA	$	84.3		$	82.0		$	131.2		$	148.1
Restructuring charges(1)		0.3			0.4			0.3			0.4
Product recall costs(2)		0.9			—			1.8			—
Segment adjusted EBITDA	$	85.5		$	82.4		$	133.3		$	148.5
Segment sales		432.7			310.4			674.9			584.7
Segment EBITDA margin		19.5	%		26.4	%		19.4	%		25.3	%
Segment adjusted EBITDA margin		19.8	%		26.5	%		19.8	%		25.4	%

(1)		The company incurred severance and related charges due to a reduction of its workforce.
(2)		The company incurred costs related to a product recall of food-grade salt produced at its Goderich plant.

Plant Nutrition Segment Performance (unaudited, dollars in millions, except for sales volumes and prices per short ton)
	Three Months Ended March 31,						Six Months Ended March 31,
		2025			2024			2025			2024
Sales	$	58.3		$	50.1		$	119.7		$	99.8
Operating loss	$	(1.8	)	$	(53.0	)	$	(4.9	)	$	(55.3	)
Operating margin		(3.1	)%		(105.8	)%		(4.1	)%		(55.4	)%
Adjusted operating loss(1)	$	(1.8	)	$	(1.4	)	$	(4.9	)	$	(2.6	)
Adjusted operating margin(1)		(3.1	)%		(2.8	)%		(4.1	)%		(2.6	)%
EBITDA(1)	$	5.6		$	(44.3	)	$	10.0		$	(38.2	)
EBITDA(1) margin		9.6	%		(88.4	)%		8.4	%		(38.3	)%
Adjusted EBITDA(1)	$	5.6		$	7.3		$	10.0		$	14.5
Adjusted EBITDA(1) margin		9.6	%		14.6	%		8.4	%		14.5	%
Sales volumes (in thousands of tons)		93			74			195			149
Average price (per ton)	$	626.02		$	680.43		$	613.61		$	670.39

(1)

Non-GAAP financial measure. Reconciliations follow in these tables.

Reconciliation for Plant Nutrition Segment Adjusted Operating Loss (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Reported GAAP segment operating loss	$	(1.8	)	$	(53.0	)	$	(4.9	)	$	(55.3	)
Restructuring charges(1)		—			0.6			—			1.7
Loss on goodwill impairment(2)		—			51.0			—			51.0
Segment adjusted operating loss	$	(1.8	)	$	(1.4	)	$	(4.9	)	$	(2.6	)
Segment sales		58.3			50.1			119.7			99.8
Segment operating margin		(3.1	)%		(105.8	)%		(4.1	)%		(55.4	)%
Segment adjusted operating margin		(3.1	)%		(2.8	)%		(4.1	)%		(2.6	)%

(1)		The company incurred severance and related charges due to a reduction of its workforce.
(2)		The company recognized a goodwill impairment during the three and six months ended March 31, 2024.

Reconciliation for Plant Nutrition Segment EBITDA and Adjusted EBITDA (unaudited, in millions)
	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Reported GAAP segment operating loss	$	(1.8	)	$	(53.0	)	$	(4.9	)	$	(55.3	)
Depreciation, depletion and amortization		7.4			8.7			14.9			17.1
Segment EBITDA	$	5.6		$	(44.3	)	$	10.0		$	(38.2	)
Restructuring charges(1)		—			0.6			—			1.7
Loss on goodwill impairment(2)		—			51.0			—			51.0
Segment adjusted EBITDA	$	5.6		$	7.3		$	10.0		$	14.5
Segment sales		58.3			50.1			119.7			99.8
Segment EBITDA margin		9.6	%		(88.4	)%		8.4	%		(38.3	)%
Segment adjusted EBITDA margin		9.6	%		14.6	%		8.4	%		14.5	%

(1)		The company incurred severance and related charges due to a reduction of its workforce.
(2)		The company recognized a goodwill impairment during the three and six months ended March 31, 2024.

COMPASS MINERALS INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions, except share and per-share data)

	Three Months EndedMarch 31,						Six Months EndedMarch 31,
		2025			2024			2025			2024
Sales	$	494.6		$	364.0		$	801.8		$	705.7
Shipping and handling cost		151.4			110.6			232.0			201.9
Product cost		266.4			181.6			458.7			360.9
Gross profit		76.8			71.8			111.1			142.9
Selling, general and administrative expenses		29.6			33.3			62.9			79.0
Loss on impairments, net		53.0			98.6			53.0			173.4
Other operating income		(2.7	)		(20.8	)		(2.2	)		(16.6	)
Operating loss		(3.1	)		(39.3	)		(2.6	)		(92.9	)
Other (income) expense:
Interest income		(0.2	)		(0.2	)		(0.6	)		(0.6	)
Interest expense		18.0			17.3			34.9			33.2
Gain on foreign exchange		(0.1	)		(2.5	)		(5.3	)		(0.6	)
Other expense, net		1.4			0.9			4.5			1.6
Loss before income taxes		(22.2	)		(54.8	)		(36.1	)		(126.5	)
Income tax expense (benefit)		9.8			(15.9	)		19.5			(12.3	)
Net loss	$	(32.0	)	$	(38.9	)	$	(55.6	)	$	(114.2	)

Basic net loss per common share	$	(0.77	)	$	(0.94	)	$	(1.34	)	$	(2.77	)
Diluted net loss per common share	$	(0.77	)	$	(0.94	)	$	(1.34	)	$	(2.77	)
Weighted-average common shares outstanding (in thousands):
Basic		41,521			41,306			41,480			41,255
Diluted		41,521			41,306			41,480			41,255

COMPASS MINERALS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)

	March 31,		Sept. 30,
	2025		2024
ASSETS
Cash and cash equivalents	$	49.5	$	20.2
Receivables, net		274.6		126.1
Inventories, net		220.7		414.1
Other current assets		20.5		26.9
Property, plant and equipment, net		774.5		806.5
Intangible and other noncurrent assets		192.1		246.3
Total assets	$	1,531.9	$	1,640.1

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	$	10.0	$	7.5
Other current liabilities		297.6		209.5
Long-term debt, net of current portion		797.6		910.0
Deferred income taxes and other noncurrent liabilities		190.2		196.5
Total stockholders' equity		236.5		316.6
Total liabilities and stockholders' equity	$	1,531.9	$	1,640.1

COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
	Six Months Ended March 31,
		2025			2024
Cash flows from operating activities:
Net loss	$	(55.6	)	$	(114.2	)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Depreciation, depletion and amortization		53.3			52.3
Amortization of deferred financing costs		2.6			1.2
Stock-based compensation		6.7			7.0
Deferred income taxes		0.8			0.8
Unrealized foreign exchange gain		(6.4	)		(0.7	)
Loss on impairments, net		53.0			173.4
Net gain from remeasurement of contingent consideration		(7.9	)		(22.2	)
Other, net		0.6			2.1
Changes in operating assets and liabilities:
Receivables		(63.8	)		(12.9	)
Inventories		183.3			27.5
Other assets		2.0			(11.8	)
Accounts payable and accrued expenses and other current liabilities		6.4			(57.2	)
Other liabilities		7.8			(11.4	)
Net cash provided by operating activities		182.8			33.9
Cash flows from investing activities:
Capital expenditures		(35.8	)		(78.6	)
Other, net		(0.1	)		(1.1	)
Net cash used in investing activities		(35.9	)		(79.7	)
Cash flows from financing activities:
Proceeds from revolving credit facility borrowings		140.3			217.2
Principal payments on revolving credit facility borrowings		(299.9	)		(176.5	)
Proceeds from issuance of long-term debt		62.1			69.4
Principal payments on long-term debt		(12.3	)		(38.0	)
Payments for contingent consideration		—			(9.1	)
Dividends paid		—			(12.7	)
Deferred financing costs		(2.4	)		(2.1	)
Shares withheld to satisfy employee tax obligations		(1.1	)		(1.8	)
Other, net		(3.5	)		(1.1	)
Net cash (used in) provided by financing activities		(116.8	)		45.3
Effect of exchange rate changes on cash and cash equivalents		(0.8	)		0.1
Net change in cash and cash equivalents		29.3			(0.4	)
Cash and cash equivalents, beginning of the year		20.2			38.7
Cash and cash equivalents, end of period	$	49.5		$	38.3

COMPASS MINERALS INTERNATIONAL, INC. SEGMENT INFORMATION (unaudited, in millions)

Three Months Ended March 31, 2025	Salt		PlantNutrition			Corporate& Other(1)			Total
Sales to external customers	$	432.7	$	58.3		$	3.6		$	494.6
Intersegment sales		—		2.3			(2.3	)		—
Shipping and handling cost		141.9		9.5			—			151.4
Operating earnings (loss)(2)(3)(4)		66.9		(1.8	)		(68.2	)		(3.1	)
Depreciation, depletion and amortization		17.4		7.4			1.7			26.5
Total assets (as of end of period)		959.2		365.7			207.0			1,531.9

Three Months Ended March 31, 2024	Salt		PlantNutrition			Corporate& Other(1)			Total
Sales to external customers	$	310.4	$	50.1		$	3.5		$	364.0
Intersegment sales		—		0.7			(0.7	)		—
Shipping and handling cost		104.0		6.6			—			110.6
Operating earnings (loss)(2)(3)(4)		65.8		(53.0	)		(52.1	)		(39.3	)
Depreciation, depletion and amortization		16.2		8.7			1.9			26.8
Total assets (as of end of period)		996.5		423.3			237.9			1,657.7

Six Months Ended March 31, 2025	Salt		PlantNutrition			Corporate& Other(1)			Total
Sales to external customers	$	674.9	$	119.7		$	7.2		$	801.8
Intersegment sales		—		5.5			(5.5	)		—
Shipping and handling cost		213.2		18.8			—			232.0
Operating earnings (loss)(2)(3)(4)		96.3		(4.9	)		(94.0	)		(2.6	)
Depreciation, depletion and amortization		34.9		14.9			3.5			53.3

Six Months Ended March 31, 2024	Salt		PlantNutrition			Corporate& Other(1)			Total
Sales to external customers	$	584.7	$	99.8		$	21.2		$	705.7
Intersegment sales		—		3.8			(3.8	)		—
Shipping and handling cost		187.7		13.6			0.6			201.9
Operating earnings (loss)(2)(3)(4)		116.7		(55.3	)		(154.3	)		(92.9	)
Depreciation, depletion and amortization		31.4		17.1			3.8			52.3

(1)		Corporate and other includes corporate entities, records management operations, the Fortress fire retardant business, equity method investments and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead, including costs for general corporate governance and oversight, as well as costs for the human resources, information technology, legal and finance functions.
(2)		Corporate operating results were impacted by costs related to a product recall of $0.9 million and $1.8 million for the three and six months ended March 31, 2025, respectively. Corporate operating results were also impacted by declines in the valuation of the Fortress contingent consideration. The company recognized net gains of $7.9 million for the three and six months ended March 31, 2025, respectively, and $23.8 million and $22.2 million for the three and six months ended March 31, 2024, respectively, related to the Fortress contingent consideration valuation.
(3)		The company recognized an impairment of $53.0 million related to the exit of the Fortress fire retardant business for both the three and six months ended March 31, 2025, which impacted operating results. The company also recognized impairments of $101.0 million and $175.8 million related to the impairment of Plant Nutrition goodwill, Fortress assets and goodwill and lithium development assets for the three and six months ended March 31, 2024, respectively, which impacted operating results.
(4)		The company continued to take steps to align its cost structure to its current business needs. These initiatives impacted Corporate operating results and resulted in net severance and related charges, excluding stock-based compensation forfeitures, for reductions in workforce and changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business of $4.0 million for both the three and six months ended March 31, 2025. The company also recognized severance and related charges, excluding stock-based compensation forfeitures, related to the termination of the company’s lithium development project of $12.1 million and $15.7 million for the three and six months ended March 31, 2024, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507325387/en/

Contacts

Investor Contact Brent CollinsVice President, Treasurer & Investor Relations+1.913.344.9111InvestorRelations@compassminerals.com

Over the last 7 days, the United States market has risen by 2.2%, contributing to an overall increase of 8.2% over the past year, with earnings forecasted to grow by 14% annually. In this context of positive market momentum, identifying small-cap stocks that are currently undervalued and have insider buying activity can offer potential opportunities for investors seeking growth in various regions across the country.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Name	PE	PS	Discount to Fair Value	Value Rating
PCB Bancorp	10.2x	2.9x	48.50%	★★★★★☆
Flowco Holdings	6.8x	1.0x	38.28%	★★★★★☆
Thryv Holdings	NA	0.8x	35.74%	★★★★☆☆
West Bancorporation	12.9x	4.1x	37.30%	★★★☆☆☆
Columbus McKinnon	47.0x	0.4x	39.29%	★★★☆☆☆
MVB Financial	12.1x	1.6x	28.67%	★★★☆☆☆
Franklin Financial Services	15.4x	2.5x	33.36%	★★★☆☆☆
Union Bankshares	17.6x	3.3x	25.64%	★★★☆☆☆
Tandem Diabetes Care	NA	1.4x	-2797.51%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-9.03%	★★★☆☆☆

Click here to see the full list of 92 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let’s explore several standout options from the results in the screener.

Titan Machinery

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Titan Machinery operates as a network of full-service agricultural and construction equipment stores, with a market cap of approximately $0.75 billion.

Operations: The company’s revenue primarily stems from its Agriculture and Construction segments, with significant contributions from Europe and Australia. Over the years, the gross profit margin has fluctuated between 14.64% and 20.31%, reflecting variations in cost management and pricing strategies. Operating expenses have consistently been a substantial portion of costs, with general and administrative expenses forming a major component of these outlays.

PE: -11.0x

Titan Machinery, a smaller player in the U.S. market, recently saw insider confidence with David Meyer purchasing 55,000 shares for US$996,600. Despite facing a net loss of US$43.76 million in Q4 2025 and projecting revenue declines for fiscal 2026, this insider activity suggests potential optimism about future prospects. However, the company relies entirely on external borrowing for funding and struggles to cover interest payments with earnings, posing financial risks amid declining revenues.

NasdaqGS:TITN Ownership Breakdown as at May 2025Compass Minerals International

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Compass Minerals International operates in the production and distribution of salt and plant nutrition products, with a market capitalization of $1.51 billion.

Operations: The company generates revenue primarily from its Salt and Plant Nutrition segments, with the Salt segment being the larger contributor. Over recent periods, the gross profit margin has shown a declining trend, reaching 14.61% by the end of 2024. Operating expenses have fluctuated but remain a significant portion of costs, impacting overall profitability.

PE: -3.7x

Compass Minerals International, a smaller company in the U.S. market, presents an intriguing investment opportunity with its anticipated 63.77% annual earnings growth. Despite external borrowing as its sole funding source posing risks, recent strategic moves aim to enhance profitability by cutting costs and refocusing on core businesses like Salt and Plant Nutrition. The company reported a narrowed net loss of US$23.6 million for Q1 2024 compared to US$75.3 million previously, indicating potential operational improvements ahead.

NYSE:CMP Ownership Breakdown as at May 2025DiamondRock Hospitality

Simply Wall St Value Rating: ★★★★★☆

Overview: DiamondRock Hospitality is a real estate investment trust that owns a portfolio of hotels, with operations generating $1.13 billion in revenue.

Operations: The primary revenue stream is from hotel ownership, with recent quarterly revenues reaching $1.13 billion. Cost of goods sold (COGS) has been a significant expense, recently reported at $816 million for the same period. The gross profit margin has shown variability over time and was recorded at 27.68% in the latest quarter.

PE: 37.5x

DiamondRock Hospitality, a smaller player in the U.S. market, reported a slight dip in Q1 2025 sales at US$163.12 million but saw net income rise to US$11.86 million from US$8.33 million last year, suggesting operational improvements despite lower profit margins of 3.7%. Insider confidence is evident with recent share purchases, indicating potential optimism for future growth. The company continues to reward shareholders with regular dividends amidst earnings forecasts predicting a 29% annual growth rate, though reliant on external funding sources poses some risk.

NYSE:DRH Share price vs Value as at May 2025Summing It All Up

Click this link to deep-dive into the 92 companies within our Undervalued US Small Caps With Insider Buying screener.
Shareholder in one or more of these companies? Ensure you’re never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Seeking Other Investments?

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:TITN NYSE:CMP and NYSE:DRH.

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

Cabot (CBT) came out with quarterly earnings of $1.90 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.15%. A quarter ago, it was expected that this chemical company would post earnings of $1.80 per share when it actually produced earnings of $1.76, delivering a surprise of -2.22%.

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

Cabot , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $936 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 9.83%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

Cabot shares have lost about 14.6% since the beginning of the year versus the S&P 500's decline of -3.3%.

What's Next for Cabot?

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

Ahead of this earnings release, the estimate revisions trend for Cabot: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.92 on $1.04 billion in revenues for the coming quarter and $7.52 on $4.11 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical – Diversified is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Compass Minerals (CMP), is yet to report results for the quarter ended March 2025. The results are expected to be released on May 7.

This minerals producer is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of -73.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Compass Minerals' revenues are expected to be $413.88 million, up 13.7% from the year-ago quarter.

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

Cabot Corporation (CBT) : Free Stock Analysis Report

Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

O’keefe Stevens Advisory, an investment advisory firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In a volatile first quarter, equity price movements exceeded downside underwriting assumptions. The firm is cautious in assessing downside risk, as disappointing earnings often lack immediate price support. The market seems to believe no valuation is too low when earnings miss expectations, whether the issues are temporary or structural. In addition, please check the top 5 holdings of the strategy to know its best pick in 2025.

In its first-quarter 2025 investor letter, O’keefe Stevens Advisory highlighted stocks such as Compass Minerals International, Inc. (NYSE:CMP). Compass Minerals International, Inc. (NYSE:CMP) is an essential minerals provider that operates through the Salt and Plant Nutrition segments. The one-month return of Compass Minerals International, Inc. (NYSE:CMP) was 41.77%, and its shares gained 1.96% of their value over the last 52 weeks. On May 1, 2025, Compass Minerals International, Inc. (NYSE:CMP) stock closed at $13.00 per share with a market capitalization of $539.553 million.

O’keefe Stevens Advisory stated the following regarding Compass Minerals International, Inc. (NYSE:CMP) in its Q1 2025 investor letter:

"During the quarter, we initiated three new positions: BMW (Ticker: BMWKY), Mercedes-Benz (Ticker: MBGYY), and Compass Minerals International, Inc. (NYSE:CMP).

Compass Minerals (Full report here) – High-quality assets trading at attractive prices stemming from recent management mistakes, removal from the S&P 600 index, and warmer winters resulted in this stock trading down to 6x our estimated normalized earnings. Salt road de-icing does not care whether the market is up or down, consumer preferences, or AI; salt must be bought if it snows. Compass is a high-quality business with a new management team and a back-to-basics agenda. Several side projects, including a fire retardant and a lithium extraction project, distracted their core salt and Sulfate of Potash (SOP) business. With these projects eliminated, combined with a typical winter, it will demonstrate the normalized earnings power of their business."

Is Compass Minerals International, Inc. (CMP) The Best Magnesium Stock to Buy Right Now?

A close up of an essential mineral being extracted from a large rock wall.

Compass Minerals International, Inc. (NYSE:CMP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Compass Minerals International, Inc. (NYSE:CMP) at the end of the fourth quarter, compared to 29 in the third quarter. While we acknowledge the potential of Compass Minerals International, Inc. (NYSE:CMP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Compass Minerals International, Inc. (NYSE:CMP) and shared the list of best magnesium stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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

DuPont de Nemours (DD) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 8.42%. A quarter ago, it was expected that this specialty chemicals maker would post earnings of $0.98 per share when it actually produced earnings of $1.13, delivering a surprise of 15.31%.

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

DuPont de Nemours , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $3.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.85%. This compares to year-ago revenues of $2.93 billion. The company has topped consensus revenue estimates three times over the last four quarters.

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

DuPont de Nemours shares have lost about 13.4% since the beginning of the year versus the S&P 500's decline of -4.7%.

What's Next for DuPont de Nemours?

While DuPont de Nemours has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $3.22 billion in revenues for the coming quarter and $4.25 on $12.72 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical – Diversified is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Compass Minerals (CMP), has yet to report results for the quarter ended March 2025. The results are expected to be released on May 7.

Compass Minerals' revenues are expected to be $413.88 million, up 13.7% from the year-ago quarter.

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

DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report

Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Huntsman (HUN) came out with a quarterly loss of $0.11 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this chemical company would post a loss of $0.12 per share when it actually produced a loss of $0.25, delivering a surprise of -108.33%.

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

Huntsman , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $1.41 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.68%. This compares to year-ago revenues of $1.47 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

Huntsman shares have lost about 26.2% since the beginning of the year versus the S&P 500's decline of -5.3%.

What's Next for Huntsman?

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

Ahead of this earnings release, the estimate revisions trend for Huntsman: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $1.62 billion in revenues for the coming quarter and -$0.05 on $6.21 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical – Diversified is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Compass Minerals (CMP), is yet to report results for the quarter ended March 2025. The results are expected to be released on May 7.

Compass Minerals' revenues are expected to be $413.88 million, up 13.7% from the year-ago quarter.

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

Huntsman Corporation (HUN) : Free Stock Analysis Report

Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Most readers would already know that BHP Group's (ASX:BHP) stock increased by 4.6% over the past week. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to investigate if the company's decent financials had a hand to play in the recent price move. Particularly, we will be paying attention to BHP Group's ROE today.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.

We've discovered 2 warning signs about BHP Group. View them for free.

How To Calculate Return On Equity?

The formula for ROE is:

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

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

27% = US$13b ÷ US$50b (Based on the trailing twelve months to December 2024).

The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every A$1 worth of equity, the company was able to earn A$0.27 in profit.

See our latest analysis for BHP Group

What Has ROE Got To Do With Earnings Growth?

So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

BHP Group's Earnings Growth And 27% ROE

First thing first, we like that BHP Group has an impressive ROE. Secondly, even when compared to the industry average of 12% the company's ROE is quite impressive. Despite this, BHP Group's five year net income growth was quite low averaging at only 2.3%. That's a bit unexpected from a company which has such a high rate of return. A few likely reasons why this could happen is that the company could have a high payout ratio or the business has allocated capital poorly, for instance.

As a next step, we compared BHP Group'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 20% in the same period.

ASX:BHP Past Earnings Growth April 30th 2025

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. What is BHP worth today? The intrinsic value infographic in our free research report helps visualize whether BHP is currently mispriced by the market.

Is BHP Group Using Its Retained Earnings Effectively?

With a high three-year median payout ratio of 80% (or a retention ratio of 20%), most of BHP Group's profits are being paid to shareholders. This definitely contributes to the low earnings growth seen by the company.

Additionally, BHP Group has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 51% over the next three years. Still forecasts suggest that BHP Group's future ROE will drop to 17% even though the the company's payout ratio is expected to decrease. This suggests that there could be other factors could driving the anticipated decline in the company's ROE.

Conclusion

In total, it does look like BHP Group has some positive aspects to its business. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE. Bear in mind, the company reinvests a small portion of its profits, which means that investors aren't reaping the benefits of the high rate of return. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.

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

We recently published a list of Jim Cramer Commented on These 8 Stocks Recently. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against other stocks that Jim Cramer discussed recently.

On Friday, Jim Cramer, host of Mad Money, revisited the recent turbulence in artificial intelligence stocks, three months after the emergence of DeepSeek, a Chinese AI firm that initially rattled markets. He noted that despite the broad pullback in the sector, many of the fears triggered by DeepSeek’s debut have not materialized, which has led to a reconsideration of the panic that followed.

“Three months ago, January 23rd is a day that will live in artificial intelligence infamy. That’s when we learned that a Chinese firm called DeepSeek had figured out a way to train high quality generative AI models using far less hardware. They claim their hardware costs were around $6 million versus 80 to $100 million for their enormous American competitors.”

The announcement sent shockwaves through the market. Cramer recalled how NVIDIA saw its stock fall sharply over just two trading sessions. The market reaction spread quickly beyond and hit other companies tied to data center infrastructure, which eventually pulled down the broader Nasdaq. However, Cramer noted that the company then revealed plans to build $500 billion worth of AI infrastructure in the United States over the next four years.

Cramer noted that initially, it seemed to signal a renewed sense of stability. But soon after, the administration imposed a ban on selling AI chips to China, which forced the GPU kingpin to write down $5.5 billion tied to that entire initiative. Even so, Cramer emphasized that the company’s core business remained strong.

“We understand that they’re basically sold out for the year, even as they can only sell their best stuff in the United States and the 18 friendly countries.”

Cramer attributed the export restrictions to a policy from former President Biden, one that President Trump has not reversed. Despite the geopolitical constraints, Cramer stressed that demand for the company’s technology is still overwhelming. He argued that the stock never should have experienced such a steep drop in the first place. He added:

“Even with the trade war, the AI infrastructure theme seems totally back on track. In fact, it never left the track to begin with.”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 25. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Jim Cramer On BHP Group (BHP) – Holy Cow, Great Yield

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

BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Holders: 28

Mentioning the CEO change and lawsuits, a caller asked if they should buy more or just hold BHP Group Limited (NYSE:BHP). Cramer replied:

“I like BHP, Broken Hill. I remember it was Broken Hill Proprietary. That’s how old I am. Holy cow. But I like the story. I like the yield. I think you got a good situation going there.”

BHP (NYSE:BHP) is a global resources company involved in mining a variety of metals and minerals, including copper, iron ore, coal, and nickel. It also offers services like freight, marketing, and finance.

BHP (NYSE:BHP) reported record copper production of 1.5 million tonnes for the nine months ending 31 March 2025, driven by a 20% increase at Escondida and strong output from all other operated copper assets. The company revised its growth schedule at Escondida, including extending the Los Colorados concentrator’s life beyond FY29. The company expects the updates to add around 400,000 tonnes of additional copper and support annual production guidance of 900,000 to 1 million tonnes through FY31.

Overall, BHP ranks 8th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of BHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BHP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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

By Roushni Nair and Melanie Burton

(Reuters) -BHP Group said that an escalating trade war could harm the world economy and adaptation was key to sustaining global growth, as it reported a slight decline in iron ore production in the third quarter on Thursday.

The direct impact on BHP of the tariffs unleashed by U.S. President Donald Trump this month was limited, the mining giant said.

Trump has since postponed some of the duties, but has increased levies on China even further. Tariffs apply to steel from China where BHP sells most of its major product, iron ore.

"China's ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook," CEO Mike Henry said in a statement.

The comments came as the world's biggest listed miner reported a slightly lower third-quarter iron ore output and flagged higher production of copper, which is also subject to a tariff probe by the U.S.

BHP said the dip in quarterly iron ore production was due to cyclones, while it forecast 2025 Chilean copper production in the upper half of its guidance range as part of a ramp-up at its Escondida mine.

The world's largest listed miner was forced to temporarily halt operations at Port Hedland, the world's largest iron ore export hub, after Cyclone Zelia struck Western Australia's Pilbara region in February, following earlier disruptions from Cyclone Sean in January.

Despite the bad weather, BHP hit record nine-month output from its Pilbara operations, where the South Flank and Mining Area C sites benefited from the completed ramp-up of South Flank last year and a 13% boost in mining activity.

Shares of the company rose 0.6% to A$36.2, as of 0027 GMT, largely in line with a 1% jump in the broader mining sub-index.

Copper production rose 10% to 513,200 metric tons in the quarter, bolstered by a 20% jump in volumes at the Escondida mine in Chile due to improved operational performance.

The company said it expects to meet its fiscal 2025 unit cost targets across all operations except at its BMA coal joint venture, where adverse weather and geological issues at the Broadmeadow mine are expected to increase costs.

BHP has been leveraging revenue from its iron ore business, which still generates over half its earnings, to expand copper and potash potash projects, as it positions for growth from the energy transition.

Iron ore production from the global miner's Western Australia operations eased to 67.8 million tons in the quarter ended March 31, from 68.1 million tons a year earlier, in line with Visible Alpha consensus view of 68.03 million tons.

(Reporting by Roushni Nair and Roshan Thomas in Bengaluru, Melanie Burton in Sydney; Editing by Maju Samuel, Rashmi Aich and Kate Mayberry)

The next earnings season is starting to ramp up again in the coming week, with a number of major companies due to report.

As developments around US president Donald Trump's tariffs continue to rock markets, with tensions escalating between the US and China, investors will be watching earnings releases closely for any commentary on the potential impact of a trade war.

Following on from the release of results by a number of major US investment banks on Friday, which is considered the traditional starting gun for a new earnings season, Goldman Sachs (GS) is due to report on Monday.

The semiconductor sector will also be in focus, as chipmaker TSMC (2330.TW, TSM) and chip equipment producer ASML (ASML.AS) are slated to release results.

Investors will hoping for another bumper set of results from streaming giant Netflix (NFLX), when it reports on Thursday, with the success of releases such as crime drama Adolescence having drawn in strong viewer numbers in the first quarter.

In the world of luxury fashion, LVMH (MC.PA) is due to report first quarter revenues, as tariffs dampen the outlook for the sector.

On the UK market, investors will be keeping an eye on the latest results from supermarket Sainsbury's (SBRY.L), after rival Tesco (TSCO.L) warned of intensifying competition in the space.

Here's more on what to look out for:

Goldman Sachs (GS) — Releases first quarter earnings on Monday 14 April

The unpredictability of tariff announcements isn't just causing big swings in markets, as economists at Goldman Sachs (GS) rescinded their forecast for the risk of a US recession shortly after Trump announced a 90-day pause on most levies on Wednesday.

The economists had raised their call on the risk of a US recession in the next 12 months to 65% but then but cut it back to 45% following Trump's announcement.

“Earlier today, before president Trump’s announcement, we had shifted to a recession baseline in response to the additional country-specific tariffs that went into effect this morning,” said the Goldman Sachs (GS) team in a note, according to Bloomberg. "We are now reverting to our previous non-recession baseline forecast."

Investors will now be keen to see what Goldman Sachs (GS) has to say around tariffs, in terms of the outlook for the investment bank for the rest of the year, when it releases its first quarter earnings.

Goldman Sachs (GS) shares rose after the investment bank posted its biggest quarterly profit in more than three years in January, beating estimates for its fourth quarter earnings.

Profits were up 105% in the fourth quarter at $4.1bn (£3.1bn), compared to around $2bn for the same period in 2023. For the year, profits were up 68% at $14.2bn.

A 16% rise in total revenue to $53bn for the year were led by the $34.9bn Goldman Sachs (GS) generated from its global banking and markets business, with by revenues from equities hitting $13.4bn.

David Solomon, chairman and CEO of Goldman Sachs (GS), said that the investment bank had "met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago, and as a result, have both grown our revenues by nearly 50% and enhanced the durability of our franchise."

Despite strong results, however, Goldman Sachs (GS) shares are down more than 14% year-to-date amid broader market volatility.

TSMC (2330.TW, TSM) — Releases first quarter results on Thursday 17 April

Shares in TSMC (2330.TW, TSM) surged after the chipmaker released its first quarter revenue figures on Thursday, giving investors a glimpse into what to expect from its full first quarter results on 17 April.

TSMC posted a 42% increase in revenues for first three months of the year, at TWD839.25bn (£19.8bn). In US dollar terms that equated to nearly $25.5bn, according to currency exchange rates on Thursday morning, which was slightly towards the higher end of guidance of between $25bn and $25.8bn.

In its monthly release, TSMC said revenue for March was up 10% on the previous month, at 285.96 billion new Taiwan dollars (£6.7bn).

TSMC had warned in its January revenue report that it that it had been impacted by severe earthquakes in Taiwan, estimating related losses of around TWD5.3bn. As a result of the earthquake damage, TSMC said it expected its revenue for the first quarter to be closer to the lower end of the guidance range.

Stocks: Create your watchlist and portfolio

Derren Nathan, head of equity analysis at Hargreaves Lansdown, said: "No structural damage was caused to the group’s production sites, so despite the near-term challenges, TSMC (2330.TW, TSM) remains positive about its full-year outlook. Growth in AI chip demand continues to drive TSMC’s (2330.TW, TSM) performance. Nvidia’s (NVDA) orders for its new Blackwell GPUs play a key role, and the overall AI-related revenues are expected to double in 2025."

TSMC (2330.TW, TSM) recently announced it was expanding its investment in the US by $100bn, in addition to its ongoing $65bn investment in its US operations.

"Markets are keen to know more about the timelines of these projects and whether their production efficiency is comparable to Taiwan’s," said Nathan. "While semiconductor exports remain exempt from recent tariffs, concerns about rising manufacturing costs and supply chain disruptions could weigh on performance."

ASML (ASML.AS, ASML) – Releases first quarter results on Wednesday 16 April

Another company in the semiconductor industry reporting in the coming week is ASML (ASML.AS, ASML), which manufactures lithography machines that are key to making chips and so is used to help gauge sector demand.

In the fourth quarter, ASML posted net sales of €9.3bn (£8.07bn), up from €7.5bn in the third quarter. This meant sales for the year came in at €28.3bn, compared to €27.6bn in 2023.

Net profits for the fourth quarter rose to €2.7bn, from €2.07bn in the previous quarter, though the total for the year of €7.5bn was down slightly from the €7.8bn the company reported for 2023.

In terms of guidance, ASML CEO Christophe Fouquet said the company expected net sales to come in at between €7.5bn and €8bn, forecasting this figure for the year to be between €30bn and €35bn.

"Growth’s being driven by increasing demand for its chip-making systems, as major customers like TSMC (2330.TW, TSM), Samsung (005930.KS), and Intel (INTC) rush to meet the rising need for high-performance semiconductors used in AI and other applications," said Hargreaves Lansdown's Nathan.

"However, recent geopolitical developments could pose challenges for ASML," he said. "The group already had to navigate restrictions on the sale of its technology to China, which was a key sales region last year."

"With political relations seemingly souring, there could be more restrictions on exports ahead, which would likely weigh on performance," he added. "The impressive €36bn order backlog offers some reassurance in terms of revenue visibility in the near term, and we’ll be keeping an eye out to see if there’s been any growth in the backlog next week."

Nervousness around the impact of tariffs on the chip sector has hurt stocks, with Amsterdam-listed shares of ASML down 14% year-to-date.

Netflix (NFLX) – Releases first quarter earnings on Thursday 17 April

While many big-name stocks are in the red year-to-date, Netflix (NFLX) shares have managed to eke out a 3% gain, helped by them hitting a record high in February.

Investors cheered the streaming giant's fourth quarter results in January, in which it reported another 18.9 million paid memberships has been added — the biggest quarterly net adds in its history.

Revenue for the quarter hit $10.2bn, up 16% from $8.8bn in the fourth quarter of 2023. Net profits hit $1.8bn, working out to diluted earnings per share (EPS) of $4.27, up from net income of $938m in the fourth quarter of 2023 and diluted EPS of $2.11.

Netflix said that its fourth quarter slate of releases, including the second series of Squid Games, outperformed expectations.

Big releases in the first quarter included crime drama Adolescence, which Netflix said amassed 66.3 million views in its first two weeks.

For the first quarter, Netflix guided to revenue of $10.4bn and net profits of $2.4bn, with diluted EPS of $5.58.

In its fourth quarter results, Netflix said it was in a "leadership position in terms of engagement (approximately two hours per paid membership per day), revenue ($39bn) and profit ($10bn in operating income) in a market that is continuing to expand."

"We estimate there are now 750M+ broadband households (excluding China and Russia) and $650B+ of entertainment revenue in the 4 markets we operate in, of which we only captured ~6% in 2024," Netflix (NFLX) said. "Similarly, we believe we account for less than 10% of TV viewing in every country in which we operate, all of which suggests a long runway for growth as streaming continues to expand around the world."

At the same time, the company noted that its sector remained "intensely competitive" but said it was "fortunate that we don’t have distractions like managing declining linear networks".

LVMH (MC.PA) – Releases first quarter revenue figures on Monday 14 April

Hopes of a recovery in the luxury sector have been clouded by Trump's tariffs, with fears that companies will face renewed headwinds from the uncertainty this year.

In a note on 9 April, Deutsche Bank (DBK.DE) analysts said that it is "no longer clear that 3Q24 was the nadir for luxury demand. The luxury recovery in 4Q now looks likely to be the anomaly and not the trend."

They said that "weaker global stock markets and the broader economic uncertainty will weigh on confidence and we see this further postponing a recovery in luxury demand."

As a result, the analysts downgraded their ratings on Richemont (CFR.SW) and Kering (KER.PA) from "buy" to "hold". They maintained their "hold" rating on LVMH (MC.PA), but lowered their target price on the stock from €695 to €580 per share.

For LVMH's first quarter revenues, the Deutsche Bank (DBK.DE) analysts forecast group sales of €21.24bn, up 2% year-on-year.

They said that for "for the first time in a number of years LVMH appears to be facing a number of headwinds across its main divisions." In the fourth quarter, they said that fashion and leather goods sales showed the "low end of sequential improvement across the sector and there is expected to be limited further improvement in 1Q."

LVMH (MC.PA), whose brands include Louis Vuitton and Dior, reported a 1% increase in sales in the fourth quarter to €23.9bn, which was ahead of estimates.

Sainsbury's (SBRY.L) – Releases full-year results on Thursday 17 April

UK supermarket Tesco (TSCO.L) warned that it expected to generate lower profits as competition over prices heats up.

In its preliminary full-year results, released on Thursday, Tesco (TSCO.L) said it had seen a "further increase in the competitive intensity of the UK market" over the past few months.

As a result, Tesco (TSCO.L) said it was issuing financial guidance for the year ahead that gives it the "flexibility and firepower to be able to respond to current market conditions".

With that in that in mind, investors will be keen to know if rival Sainsbury's (SBRY.L) is also feeling the pressure from competition.

In a third quarter trading statement in January, Sainsbury's said that it expected to deliver full-year retail retail operating profit in line with consensus and in the midpoint of its £1.01bn ($1.32bn) to £1.06bn guidance range, which would represent growth of around 7%.

"Despite an encouraging Christmas trading update in January, shares in Sainsbury sit at their lowest mark since January 2023 and, as a result, are no higher now than they were in spring 1987," said AJ Bell (AJB.L) investment director Russ Mould and investment analyst Dan Coatsworth.

"This is probably the best comeback to anyone who accuses the big grocers of price gouging and profiteering, something that will be hard to achieve for a firm that is locked in a dogfight for share with Tesco (TSCO.L), Morrisons, Asda and the discounters, Aldi and Lidl. An operating margin of barely 3.5% also hardly suggests a company having its wicked way with its customers."

"Sainsbury’s has at least been more than holding its own in the grocery market here and it has kept its share above 15%, to stay second ranked behind only Tesco (TSCO.L), according to consultants Kantar," they added.

"However, Asda’s revival of its rollback scheme is stoking fears of a price war and Tesco’s (TSCO.L) cut to its profit guidance for the coming year suggests it is gearing up for one, so chief executive Simon Roberts will no doubt be expected to give his views on this, and his firm’s strategy to confront any such developments."

Other companies reporting this week include:

Monday 14 April

Ashmore Group (ASHM.L)

M&T Bank (MTB)

Page Group (PAGE.L)

Tuesday 15 April

B&M European Value Retail (BME.L)

IntegraFin Holdings (IHP.L)

S & U (SUS.L)

Everyman Media (EMAN.L)

Accesso Technology (ACSO.L)

LVMH (MC.PA)

Rio Tinto (RIO.L)

LM Ericsson (ERIC)

Bank of America (BAC)

United Airlines (UAL)

Citigroup (C)

Newcore Gold (NCAUF)

Johnson & Johnson (JNJ)

Albertsons (ACI)

Wednesday 16 April

Barratt Redrow (BTRW.L)

DiscoverIE Group (DSCV.L)

Hays (HAS.L)

Antofagasta (ANTO.L)

Heineken (HEIA.AS)

Hunting (HTG.L)

WH Smith (SMWH.L)

EQT (EQT)

Sandvik (SAND.ST)

Moncler (MONC.MI)

Brunello Cucinelli (BC.MI)

US Bancorp (USB)

Travelers (TRV)

CSX (CSX)

Las Vegas Sands (LVS)

Citizens Financial (CZFS)

Alcoa (AA)

Bank OZK (OZK)

Autoliv (ALV)

Thursday 17 April

Deliveroo (ROO.L)

Dunelm Group (DNLM.L)

Ninety One (N91.L)

Rentokil Initial (RTO.L)

American Express (AXP)

Charles Schwab (SCHW)

BHP (BHP.L)

China Mobile (0941.HK)

China Unicom (0762.HK)

Hermès (RMS.PA)

L’Oréal (OR.PA)

UBS (UBSG.SW)

Pernod Ricard (RI.PA)

Bankinter (BKT.MC)

Blackstone (BX)

Fifth Third Bancorp (FITB)

Friday 18 April

Great Wall Motor (2333.HK)

Cleveland Cliffs (CLF)

You can read Yahoo Finance's full calendar here.

Download the Yahoo Finance app, available for Apple and Android.

Donald Trump’s decision to pause steep tariffs against most nations has ignited a share market rally that erased some of the heavy losses suffered over the past week, even as Australia eyes an escalating trade war between the world’s two biggest economies.

Wall Street soared overnight after Trump unveiled a 90-day pause on tariffs above 10% on dozens of countries, with the notable exception of China.

Australia’s position, along with those of the UK and New Zealand, are unchanged given they remain subject to the US’ “baseline” 10% tariff.

The S&P/ASX 200 closed up 4.5% on Thursday, at 7,709 points, after giving away some of its early gains.

The lift added $100bn in value to Australian shares, although the benchmark is still lower than levels recorded one week ago, shortly after the new tariff regime was unveiled.

Major miners BHP and Rio Tinto, which had been weighed down over concerns demand would drop for commodities if the global economy entered into a recession, helped lead the rally, with both stocks up more than 5%.

The surge represented the strongest trading day since 2020, although investment groups were quick to advise caution.

ANZ downgraded its price targets for energy and metal markets, which are two important components of the ASX.

“The unpredictability of US trade policy is likely to have ongoing impacts on investment and trade, as companies and consumers wait for clarity,” ANZ said in a research note.

“Importantly, the escalation of trade tension between the US and China shows no sign of abating.”

Australia’s close resources ties to China also make it susceptible to any economic slowdown sparked by the escalating tariff wars between Washington and Beijing.

The chief economist at Betashares, David Bassanese, warned investors that the global economy “faces enormous risk in the weeks and months ahead” and that the bounce may be a “cruel bear market” rally.

“We’re not out of the woods just yet,” Bassanese said.

A bear market rally refers to a temporary increase in share prices in an otherwise falling market.

Trump’s stunning tariff reversal came shortly after clear signs of market ruptures appeared, with investors selling off US government bonds, which have historically been one of the world’s safest financial assets.

Asked why he had ordered the pause, the US president told reporters: “People were jumping a little bit out of line. They were getting yippy.”

While traders cheered the tariff reversal, the effect on some market sectors was unchanged. The 25% levy on steel and aluminium imports to the US is still in place, and Trump has said he will introduce a “major” tariff on all pharmaceutical imports.

The Australian dollar recovered significant ground on Thursday, rising to US61.8c late in the day, after threatening to plunge below the 59c barrier earlier this week.

BASF SE (BASFY) shares rallied 9.6% in the last trading session to close at $11.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.2% loss over the past four weeks.

BASFY's rally is driven by a surge in material stocks after President Trump announced he would pause reciprocal tariffs for 90 days for most countries.

This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -17.4%. Revenues are expected to be $18.77 billion, down 1.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For BASF, the consensus EPS estimate for the quarter has been revised 4.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BASFY going forward to see if this recent jump can turn into more strength down the road.

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

BASF is a member of the Zacks Chemical – Diversified industry. One other stock in the same industry, Compass Minerals (CMP), finished the last trading session 5.5% higher at $9.91. CMP has returned -9.3% over the past month.

For Compass , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.39. This represents a change of -73.8% from what the company reported a year ago. Compass currently has a Zacks Rank of #3 (Hold).

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

BASF SE (BASFY) : Free Stock Analysis Report

Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

BHP Group experienced a 11% decline in share price over the past week, a movement reflecting broader market volatility rather than isolating company-specific factors. The retirement of Ken MacKenzie as an independent Non-executive Director was a key event, but given the 12% drop in the broader market amid global tariff uncertainties, it’s unlikely this board change exerted a significant effect on the company’s trajectory. Financial markets, especially industries entwined with global trade, were broadly impacted by fear of an economic slowdown, suggesting BHP’s price move was part of a wider market trend.

We’ve spotted 2 possible red flags for BHP Group you should be aware of, and 1 of them can’t be ignored.

ASX:BHP Earnings Per Share Growth as at Apr 2025

The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer’s.

The recent changes at BHP Group, particularly the departure of Ken MacKenzie, seem to reflect broader market volatility rather than being isolated company-specific issues. In the past week, BHP’s share price declined by 11%, aligning with a similar drop in the broader market. This correlates with the economic uncertainties and potential slowdowns in global trade impacting the entire sector. Over a longer period, however, BHP’s shares have seen a total return of 72.81% over five years, indicating a historically strong performance despite recent fluctuations.

Relative to the industry, BHP underperformed in the past year, returning less than the Australian Metals and Mining industry, which saw a 19.8% decline. This context suggests that while BHP’s long-term performance is robust, short-term challenges persist. The broader economic conditions remain a pivotal factor affecting revenue and earnings forecasts. Analysts project a revenue decline of 2.5% annually and earnings reduction, potentially reaching $10.7 billion over the next few years. However, the company’s strategic expansions into copper and potash markets could balance these forecasts by adding diversity and stability to its revenue streams.

The current share price of A$38.32 is notably below the analysts’ consensus price target of A$44.33, reflecting a discount to perceived fair value. This gap suggests that analysts believe BHP’s long-term potential remains strong despite anticipated short-term earnings and revenue adjustments. As BHP progresses with its diversification efforts and addresses liabilities, such as those from the Samarco dam incident, the market’s perception might align more closely with analyst expectations.

Click to explore a detailed breakdown of our findings in BHP Group’s financial health report.

Companies discussed in this article include ASX:BHP.

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

Freeport-McMoRan Inc. FCX shares have lost 25.1% in the past three months. The downside is partly due to the slump in copper prices amid uncertainties over U.S. tariffs and concerns over FCX’s high production costs. Freeport has underperformed the Zacks Mining – Non Ferrous industry’s decline of 24.2% while outperforming the S&P 500’s fall of 13.6% in the past three months. Its peers, Southern Copper Corporation SCCO, BHP Group Limited BHP and Rio Tinto Group RIO, have lost 20.1%, 17.1% and 11.1%, respectively, over the same period. Southern Copper remains hamstrung by higher operating costs. BHP Group is facing headwinds from lower iron ore and steelmaking coal prices and higher labor costs. Weaker iron ore prices and lower shipments are weighing on Rio Tinto.

Freeport’s 3-Month Price PerformanceZacks Investment Research

Image Source: Zacks Investment Research

Technical indicators show that FCX has been trading below the 200-day simple moving average (SMA) since Nov. 11, 2024. The stock is currently trading below its 50-day SMA. Following a death crossover on Dec. 3, 2024, the 50-day SMA continues to read lower than the 200-day SMA, indicating a bearish trend.

FCX Stock Trades Below 50-Day SMAZacks Investment Research

Image Source: Zacks Investment Research

Given the significant pullback in Freeport’s shares, investors might be tempted to snap up the stock. But is this the right time to buy FCX? Let’s find out.

FCX’s Growth Actions to Expand Capacity & Drive Production

Freeport is well-placed with high-quality copper assets and remains focused on strong execution and advancing its organic growth opportunities. At its Cerro Verde operation in Peru, a large-scale concentrator expansion provided incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It is evaluating a large-scale expansion at El Abra in Chile to define a large sulfide resource that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde. FCX is also conducting pre-feasibility studies (expected to be completed by mid-2026) in the Safford/Lone Star operations in Arizona to define a significant sulfide expansion opportunity. It also has expansion opportunities at Bagdad in Arizona to more than double the concentrator capacity of the operation. Also, PT Freeport Indonesia (PT-FI) substantially completed the construction of the new greenfield smelter in Eastern Java during 2024, with an expected start-up in mid-2025, followed by a full ramp-up by the end of 2025. PT-FI is also developing the Kucing Liar ore body within the Grasberg district with a targeted commencement of production by 2030. Gold production also commenced at the new precious metals refinery in late 2024. Plans are in place to transition PT-FI’s existing energy source from coal to natural gas, which is expected to significantly reduce greenhouse gas emissions at Grasberg.

FCX’s Solid Financial Health & Capital Discipline Bode Well

FCX has a strong liquidity position and generates substantial cash flows, which allow it to finance its growth projects, pay down debt and drive shareholder value. It generated operating cash flows of around $1.4 billion in the fourth quarter. The same for full-year 2024 climbed around 35% year over year to $7.2 billion. It has distributed $4.7 billion to shareholders through dividends and share purchases since June 30, 2021. Freeport ended 2024 with strong liquidity with $3.9 billion in cash and cash equivalents, $3 billion in availability under the FCX credit facility and $1.5 billion in availability under the PT FI credit facility.At the end of 2024, Freeport had a net debt of $1.06 billion, excluding smelter projects in Indonesia. Its net debt is below its targeted range of $3-$4 billion. Freeport has a policy of distributing 50% of the available cash to shareholders and the balance to either reduce debt or invest in growth projects. FCX has no significant debt maturities until 2027.FCX offers a dividend yield of roughly 1% at the current stock price. Its payout ratio is 20% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of about 21.8%. Backed by strong financial health, the company's dividend is perceived to be safe and reliable.

Higher Production Costs Cloud Freeport’s Prospects

Freeport faces headwinds from higher costs. Freeport’s consolidated unit net cash costs per pound of copper for fourth-quarter 2024 were 9% higher than the prior-year quarter level. The company now estimates that consolidated unit net cash costs for the first quarter will be roughly 5% higher than the January 2025 guidance of $2.05 per pound of copper, mainly due to the timing of gold shipments, which has led to lower by-product credits. FCX is grappling with higher unit net cash costs in North America. Higher labor and mining costs are leading to increased unit costs in the region.

Retreating Copper Prices Pose Concerns for FCX

Weak demand in top consumer China due to the property crisis weighed on copper prices in 2024. The economic uncertainty in China and the absence of detailed policy plans raise concerns about future demand. The looming threat of higher U.S. tariffs under the Trump administration added further uncertainty to the market outlook. While copper started the fourth quarter of 2024 on a strong note, prices remained volatile throughout the period. Prices of copper fell nearly 12% in the fourth quarter, closing the quarter at around $4 per pound. Copper prices surged to a new record high of $5.24 per pound in late March 2025 as buyers stocked up the commodity amid concerns that President Trump could impose tariffs on copper, leading to a disruption in the global supply chain. However, prices have nosedived more than 20% since then to around $4.10 per pound amid demand worries due to tariffs, which have threatened to cause a broader slowdown globally. Copper prices are likely to remain under pressure over the near term amid tariff uncertainties.

FCX’s FY25 Earnings Estimates Going Down

Freeport’s earnings estimates for 2025 have been going down over the past 30 days. The Zacks Consensus Estimate for 2025 has been revised lower over the same time frame. Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

Zacks Investment Research

Image Source: Zacks Investment Research

A Look at FCX’s Valuation

FCX is currently trading at a forward price/earnings of 16.35X, a roughly 1.7% discount to the industry average of 16.64X. The FCX stock is trading at a premium to BHP Group and Rio Tinto and a modest discount to Southern Copper.

FCX’s P/E F12M Vs. Industry, SCCO, BHP & RIOZacks Investment Research

Image Source: Zacks Investment Research

How Should Investors Play the FCX Stock?

FCX is poised to gain from progress in expansion activities that will boost production capacity. Robust financial health allows FCX to invest in growth projects and drive shareholder value. Despite these positives, declining earnings estimates, retreating copper prices and high production costs warrant caution. Holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.You can see the complete list of today’s Zacks #1 Rank (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

Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

Rio Tinto PLC (RIO) : Free Stock Analysis Report

Southern Copper Corporation (SCCO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

We recently published a list of the 10 Best Copper Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against other best copper stocks to buy according to Wall Street analysts.

The U.S. stock market has changed rapidly since the new president took control of the Oval Office. In the list of commodities that are recently surfacing as standout performers in the market, copper holds a significant place. The commodity has captured the attention of investors across the globe. According to The Wall Street Journal, by the end of March 2025, the U.S. copper future saw a 26% increase, reaching $5.02 per pound. The extraordinary growth, in addition to surpassing global prices, has set unprecedented records in the industry.

The recent tariff implementations from the U.S. administration stand among the heavy contributors to this surge. The U.S. president has recently announced a series of tariff increases, targeting the major trading partners of the U.S. Accordingly, the EU imports will be charged a 20% tariff. Chinese goods have the most impact at a 34% tariff. Similarly, a minimum 10% hike is imposed on all imports globally. Because of these measures, the average tariff rate has risen to 23%, the highest in over a century. The WSJ calls it the most significant shift in the United States’s approach to global trade.

These new tariffs affect the import and export of various goods in the U.S. concerning copper. A rush has been noted to import the commodity into the U.S. before the new import tax rates take effect. This influx has resulted in a notable rise in physical deliveries, causing domestic copper prices to surge.

Income-seeking investors in the market, however, need to look past these immediate market reactions and focus on the long-term outlook for copper. Even in the long run, the value of copper remains robust. An article by CNBC noted that the world’s leading mining companies anticipate a 70% growth in the global demand for copper by 2050. The surge is expected to be driven by the adoption of copper-intensive technologies, such as renewable energy systems and electric vehicles. With constant growth in several customers shifting to renewable energy-based technologies, such an increase in demand for the commodity is inevitable.

On the other hand, the industry will likely face significant challenges in meeting this rise in demand. The mining industry, for instance, faces constraints like declining ore grades and the need for substantial capital investments to develop new projects. Owing to these factors, the growth in supply and the industry’s ability to sustain high copper prices in the future could take a hit.

Even so, copper stocks remain attractive, and investors are increasingly looking towards adding them to their portfolios to give them a diverse touch. The immediate price surges due to trade policies and the potential for long-term demand position the copper sector as a compelling investment avenue. But with this said, investors may be wondering what the best copper stock to buy today is.

Our Methodology

We followed a few criteria when putting together our list of best copper stocks for investors. Primarily, we considered only those copper stocks with an upside potential of 10%. The criteria were placed to present our interested investors with stocks with the prospect of significant capital appreciation. A substantial rise in the price of stocks often correlates with substantial profits for investors. Hence, we ranked our list based on this upside potential. We have also considered only those stocks followed by hedge funds listed in Insider Monkey’s Q4 2024 database. It ensures the institutional interests in the stocks.

Is BHP Group Limited (BHP) the Best Copper Stock to Buy According to Wall Street Analysts?

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

BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Holders: 28

Upside potential: 13.12%

One of the world’s largest mining companies, BHP Group Limited (NYSE:BHP) operates from its headquarters in Melbourne, Victoria, Australia. The company is among the largest iron ore, Copper, nickel, and metallurgical coal producers. BHP serves global infrastructure, technology, and energy markets, with significant operations in Australia, the Americas, and beyond. Access to vast resources and high free cash flow allows the company to enjoy economies of scale. As one of the top-performing copper stocks, the company leverages its capital discipline to drive long-term value.

BHP Group Limited (NYSE:BHP) has seen a strong operational and financial performance since the beginning of the 2025 financial year, achieving an underlying EBITDA of $12.4 billion. The company continues to lay its focus on operational excellence and capital discipline. Significant advancements in copper projects have led to a 10% growth in copper production, contributing to a 24% growth over three years. With its Escondido Mine performing better in the first half of 2025, the company aims to elevate its positive outlook among shareholders by increasing copper production to between 1,845 and 2,045 kt.

BHP Group Limited (NYSE:BHP) is held by 28 hedge funds, as per the Insider Monkey Q4 2024 database, indicating relatively lower institutional participation than some other companies here. However, the upside potential of 13.12% points to near-term share price expansion in the future for interested investors.

Overall, BHP ranks 9th on our list of best copper stocks to buy according to Wall Street analysts. While we acknowledge the potential for BHP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BHP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

In the wake of recent market turbulence sparked by President Trump’s announcement of sweeping tariffs, major U.S. stock indexes have experienced significant declines, with the S&P 500 and Nasdaq Composite enduring some of their worst days since 2020. Amid this volatility, small-cap stocks within the S&P 600 are drawing attention as investors seek opportunities that may be less impacted by international trade tensions and more focused on domestic growth potential. In such an environment, identifying small-cap companies with strong fundamentals and insider activity can offer insights into potential resilience and value in a challenging economic landscape.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Name	PE	PS	Discount to Fair Value	Value Rating
S&T Bancorp	10.1x	3.5x	46.12%	★★★★★★
Shore Bancshares	9.5x	2.1x	16.02%	★★★★★☆
MVB Financial	10.5x	1.4x	38.42%	★★★★★☆
Thryv Holdings	NA	0.6x	29.20%	★★★★★☆
PDF Solutions	167.5x	3.8x	25.10%	★★★★☆☆
Citizens & Northern	11.5x	2.8x	49.69%	★★★☆☆☆
Union Bankshares	14.7x	2.7x	48.44%	★★★☆☆☆
Franklin Financial Services	14.0x	2.2x	38.11%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-190.66%	★★★☆☆☆
Titan Machinery	NA	0.1x	-281.40%	★★★☆☆☆

Click here to see the full list of 77 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let’s take a closer look at a couple of our picks from the screened companies.

Citizens & Northern

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Citizens & Northern operates as a community banking institution with a market cap of approximately $0.36 billion, focusing on providing financial services primarily through its community banking segment.

Operations: The company’s revenue primarily comes from community banking, with recent figures showing $106.13 million. Operating expenses are significant, reaching $74.26 million in the latest period, with general and administrative expenses accounting for $60.35 million of that total. The net income margin has shown variability, most recently recorded at 24.26%.

PE: 11.5x

Citizens & Northern, a smaller player in the financial sector, showcases potential for growth with earnings projected to rise 8.6% annually. Despite a low allowance for bad loans at 84%, insider confidence is evident through recent share purchases. The company reported increased net income of US$8.17 million for Q4 2024, doubling from US$4.26 million the previous year, alongside steady dividends and no recent share buybacks completed by December 2024.

NasdaqCM:CZNC Share price vs Value as at Apr 2025CompX International

Simply Wall St Value Rating: ★★★☆☆☆

Overview: CompX International is a company that manufactures security products and marine components, with a market cap of approximately $0.25 billion.

Operations: CompX International generates revenue primarily from its Security Products segment, contributing $115.24 million, and Marine Components segment, contributing $30.70 million. The company’s cost of goods sold (COGS) significantly impacts its gross profit margin, which has shown variability over time with a recent figure of 28.34%.

PE: 15.1x

CompX International, a smaller player in its industry, has seen insider confidence with recent share purchases. Despite a dip in sales to US$145.94 million from US$161.29 million and net income dropping to US$16.59 million for 2024, the company maintains regular dividends at US$0.30 per share, reflecting stability amidst challenges. With external borrowing as its sole funding source, potential investors should weigh this risk against the company’s consistent dividend payouts and ongoing insider interest.

NYSEAM:CIX Share price vs Value as at Apr 2025Compass Minerals International

Simply Wall St Value Rating: ★★★★☆☆

Overview: Compass Minerals International operates in the production and distribution of salt and plant nutrition products, with a market capitalization of approximately $1.37 billion.

Operations: The company generates revenue primarily from its Salt and Plant Nutrition segments, with the Salt segment contributing significantly more. Over recent periods, the gross profit margin has shown a declining trend, reaching 14.61% in late 2024. Operating expenses have fluctuated but generally remained substantial compared to gross profit figures.

PE: -2.5x

Compass Minerals, a smaller US company, is navigating financial challenges with strategic initiatives aimed at enhancing profitability in its core Salt and Plant Nutrition sectors. Recent cost-cutting measures include downsizing over 10% of the corporate workforce and winding down its fire retardant business. Despite a net loss of US$23.6 million for Q1 2025, this was an improvement from the previous year’s larger deficit. The company anticipates growth with earnings forecasted to rise by 63.77% annually, suggesting potential value for investors seeking opportunities in smaller market players amidst insider confidence reflected through share purchases earlier this year.

NYSE:CMP Ownership Breakdown as at Apr 2025Summing It All Up

Discover the full array of 77 Undervalued US Small Caps With Insider Buying right here.
Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St’s portfolio to get a 360-degree view on how they’re shaping up.
Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Searching for a Fresh Perspective?

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

Companies discussed in this article include NasdaqCM:CZNC NYSEAM:CIX and NYSE:CMP.

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

(Bloomberg) — A fragile ceasefire in the Black Sea brings hope for a boost in global shipments of wheat from Europe’s breadbasket. The US is set to release its latest corn plantings report, signaling future output for the world’s largest exporter of the grain. And energy traders across the world are hot for US liquefied natural gas.

Most Read from Bloomberg

Here are five notable charts to consider in global commodity markets as the week gets underway.

Wheat

The US-brokered ceasefire between Russia and Ukraine in the Black Sea stands to lift global shipments of wheat and other agricultural goods from the countries. Russia is on track to be the world’s top wheat exporter for an eighth season. And, despite attacks on vessels and infrastructure in the port of Odesa, Ukraine’s grain loads are close to pre-war levels. The deal has the potential to make transporting goods cheaper by reducing insurance costs for vessels.

Corn

American farmers are expected to plant the most corn acres in five years, potentially boosting supplies in the world’s biggest producer and exporter. The US Department of Agriculture releases its annual spring planting outlook Monday, as well as a quarterly grain stockpiles report. Roughly a third of the US corn crop is used for domestic ethanol production, and farmers are expected to turn to a surer bet of corn as US President Donald Trump’s proposed reciprocal tariffs may hit export demand for crops.

Copper

Chile’s state-owned Codelco has held its status as the world’s biggest copper producer by a slim margin after reporting 2024 output just above Australia’s BHP Group. Codelco posted total full-year production of 1.44 million metric tons last year, which includes its share from mines it doesn’t operate. That compared with BHP’s attributable production of 1.43 million tons, according to Bloomberg Intelligence estimates. Codelco has been playing catch-up after decades of underinvestment, with a push to finish projects key to tapping richer areas of its aging mines. BHP has also embarked on a $10.8 billion plan to overhaul old operations in Chile, where it oversees the world’s largest copper mine, Escondida.

LNG

The US is set to expand export capacity of liquefied natural gas by 60% in the next few years, according to BloombergNEF, and international traders are taking notice. Asia-originated trading of benchmark US natural gas has more than doubled over the past year. The US market has also seen increases originating from Europe, the Middle East and Africa. The surge underscores the growing importance of LNG for global energy supplies.

Oil

Venezuela is boosting oil exports to China to the highest in almost two years as the Trump administration deploys sanctions and secondary tariffs. Shipments are set to rise to the highest since June 2023, according to preliminary data from shipping reports and vessel movements tracked by Bloomberg. China, the world’s biggest oil importer, has historically been a top purchaser of deeply discounted barrels from sanctioned nations, including Venezuela, Iran and Russia.

–With assistance from Elizabeth Elkin and Lucia Kassai.

Most Read from Bloomberg Businessweek

Investing.com — Shares of iron ore miners have come under pressure in recent weeks amid speculation about potential steel production cuts in China.

Market concerns stem from reports suggesting that Beijing may target a reduction of up to 50 million tonnes in 2025, with further cuts in subsequent years. However, analysts believe the market reaction is overdone, as they do not expect mandated production restrictions this year.

RBC analysts expect crude steel production to decline due to lower demand and weaker prices, rather than government-imposed cuts. Beijing’s approach to managing steel capacity remains market-driven, with mechanisms such as pricing and green-finance incentives shaping industry output.

Iron ore prices have also been weighed down by expectations of softer demand, but analysts see potential support in the first half of the year due to supply disruptions, seasonal construction activity, and low steel inventories in China.

Despite the recent selloff, the note suggests that capacity cuts, if they materialize, could improve steel mill profitability and lead to higher discounts for lower-grade iron ore, rather than directly reducing demand for the commodity.

Environmental restrictions have also contributed to confusion, with air quality-related production curbs in cities like Tangshan and Tianjin coinciding with China’s National People’s Congress meetings. These, however, are seen as temporary.

Fortescue Metals Group (OTC:FSUGY), Rio Tinto (NYSE:RIO), and BHP Group (NYSE:BHP) have all seen declines, reflecting broader uncertainty in the sector.

Why are iron ore stocks falling

Citing melting glaciers, Peruvian farmer tests global climate law

5 big analyst AI moves: Microsoft, Intel, Xpeng upgrades; more downside in Tesla

LONDON (AP) — A lawyer argued Thursday that global mining giant BHP Group should be held liable for Brazil’s worst environmental disaster 10 years ago when a dam collapse poured tons of toxic mining waste into a major waterway that killed 19 people and devastated villages.

High Court Justice Finola O’Farrell said she would rule later in the class action case in which claimants are seeking 36 billion pounds ($47 billion) in damages from Australia-based BHP. The case was filed in Britain because one of BHP’s two main legal entities was based in London at the time.

BHP owns 50% of Samarco, the Brazilian company that operates the iron ore mine where the tailings dam ruptured on Nov. 5, 2015. Enough mine waste to fill 13,000 Olympic-size swimming pools poured into the Doce River in southeastern Brazil.

“As a result of its heavy involvement in Samarco’s operations, BHP had many opportunities to avert disaster but failed to do so and instead kept allowing and encouraging the dam to be raised by constantly pushing for ever greater production by Samarco,” attorney Alain Choo Choy said in his closing argument.

A defense lawyer had argued that BHP did not own or operate the Fundao dam and the company was not responsible for the pollution. The company also said a deadline to bring the claims had expired before the lawsuit was filed on behalf of 600,000 Brazilians.

Sludge from the burst dam destroyed the once-bustling village of Bento Rodrigues in Minas Gerais state and badly damaged other towns.

The disaster killed 14 tons of freshwater fish and damaged 660 kilometers (410 miles) of the Doce River, according to a study by the University of Ulster. The river, which the Krenak Indigenous people revere as a deity, has yet to recover.

The trial began in October, just days before Brazil’s federal government reached a multibillion-dollar settlement with the mining companies.

Under the agreement, Samarco — which is also half owned by Brazilian mining giant Vale — agreed to pay 132 billion reais ($23 billion) over 20 years. The payments were meant to compensate for human, environmental and infrastructure damage.

BHP had said the U.K. legal action was unnecessary because it duplicated matters covered by legal proceedings in Brazil.

Speaking to journalists at an online conference after the hearing, lawyers and victims said they were hopeful BHP would be convicted.

José Eduardo Cardozo, Brazil’s former justice minister and a lawyer in the case, said the evidence against the company was overwhelming.

Pamela Fernandes, whose 5-year-old daughter, Emanuelle, died in the disaster, has been making trips to London since last year to attend the trial proceedings.

“Just knowing that the trial has come to an end — today was the closing arguments — I already feel very relieved,” Fernandes said. “Being here is very painful. ”

We recently published a list of 10 Best Australian Stocks to Buy According to Billionaires. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against other best Australian stocks to buy according to billionaires.

Australian Market Outlook 2025

In December 2024, Ausbil Investment Management Limited released its equity market outlook 2025. Ausbil anticipates Australia’s economic growth will improve heading into 2025, supported by global monetary easing and Australia’s low unemployment rates. It foresees the Reserve Bank of Australia (RBA) potentially reducing rates in 2025, aligning with other central banks, which could boost earnings growth and revitalize cyclical demand. Moreover, the report also expects earnings growth across various sectors to exceed market expectations. However, geopolitical risks, particularly potential trade wars under a newly elected President Trump, pose the most significant threat. If you want to read more about the recent tariffs imposed by the US you can look at the 10 Most Undervalued High Quality Stocks to Buy According to Analysts and 11 Best Undervalued Stocks to Invest in Now.

Ausbil’s general outlook is that a Trump presidency will favor business and markets, but trade changes could cause disruptions and opportunities. It identifies potential in several sectors and expects earnings growth to surpass consensus estimates in FY25. In contrast to widespread recession predictions since late 2023, Ausbil has maintained a more positive view. Australia’s GDP is projected to recover in the latter half of 2024, averaging 1.4%, and further increase to a trend pace of 2.5% in 2025. Household consumption is expected to contribute less of a drag on economic activity. On the other hand, while the labor market remains strong, a slight increase in the unemployment rate to 4.2% is anticipated as labor supply grows and demand relatively slows. Despite this, the economy is expected to maintain its broad-based gains over the past 50 years, which is good news for companies whose earnings depend on household spending. The report expects that the structural demand for resources and a favorable interest rate differential should strengthen the Australian dollar, with forecasts predicting it will rise to US70 cents and the trade-weighted basket will increase.

Ausbil expects that Australia’s global interest rate participation will ease in 2025, which is anticipated to support high-quality resource and energy companies. Moreover, the report also expects the earnings growth to recover more than the market anticipates in FY25, broadening across sectors and market capitalization. The FY24 reporting season was weak due to high inflation, higher interest rates, and softness in China. However, looking to 2025, the report foresees relief for balance sheets and income statements from the RBA potentially starting to ease monetary policy, joining other developed markets, which would reduce debt costs.

Our Methodology

To curate the list of the 10 best Australian stocks to buy according to billionaires, we used the Finviz stock screener and Insider Monkey’s billionaire Q4 2024 database. Using the screener we aggregated a list of Australian stocks. Next, we checked the number of billionaires holding each stock and ranked them in ascending order of the number of holders. We have also added the total value of holdings along with the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 hedge funds database.

Is BHP Group Limited (BHP) the Best Australian Stock to Buy According to Billionaires?

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

BHP Group Limited (NYSE:BHP)

Number of Hedge Fund Holders: 28

Number of Billionaire Investors: 7

Total Value of Billionaire Holdings: $1.14 billion

BHP Group Limited (NYSE:BHP) is an Australian multinational mining and metals company headquartered in Melbourne. It is one of the world’s largest mining companies based on market capitalization. The company specializes in the mining and selling of commodities, including iron ore, copper, coal, nickel, and potash. On March 7, Morgan Stanley analyst Rahul Anand maintained a Buy rating on the stock with a price target of A$48.50.

For the year ending in June 2024, the company reported a 3% revenue increase to $55.7 billion, mainly due to high iron ore and copper prices. However, attributable profit sharply dropped by almost 39%, from $12.9 billion in 2023 to $7.9 billion in 2024, due to lower energy coal and nickel prices. Moreover, during the first half of 2025, copper production increased by 10% year-over-year and iron ore production improved by 2% quarter-over-quarter. Higher iron ore production was aided by enhanced supply chain management; however, weaker demand from China remains a prominent concern. It is one of the best Australian stocks to buy according to billionaires.

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

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

OVERLAND PARK, Kan., February 21, 2025–(BUSINESS WIRE)–Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today announced that Edward C. Dowling Jr., president and CEO, and other members of management will participate in one-on-one meetings at two upcoming investor events. The events are as follows:

Feb. 24, 2025 – BMO 34th Global Metals, Mining & Critical Minerals Conference in Hollywood, Florida
Feb. 25, 2025 – J.P. Morgan 2025 Global Leveraged Finance Conference in Miami Beach, Florida

Updated presentation materials will be available at the time of the events through the investor relations section of the Compass Minerals’ website at compassminerals.com.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops, while supporting sustainable agriculture. Additionally, it is working to develop a long-term fire-retardant business. Compass Minerals operates 12 production and packaging facilities with nearly 1,900 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250221546923/en/

Contacts

Investor Contact Brent CollinsVice President, Treasurer and Investor Relations+1.913.344.9111InvestorRelations@compassminerals.com

Media Contact Rick AxthelmChief Public Affairs and Sustainability Officer+1.913.344.9198MediaRelations@compassminerals.com

(Bloomberg) — Rio Tinto Group (RIO.L) has rebuked a call from activist investor Palliser Capital UK Ltd. to unify its dual listing into an Australian-domiciled holding company, saying tax costs would amount to billions and there was nothing to gain.

Most Read from Bloomberg

Palliser has been asking Rio to end its London listing since May, arguing unification could “unlock $28 billion of upside in the near term” for shareholders and that the current structure had cost investors $50 billion.

“The Board firmly rejects Palliser’s claim of $50 billion of lost value over the past 30 years, of which Palliser states $35.6 billion is attributable to structural impediments caused by the DLC structure,” Rio said. “Contrary to Palliser’s claims, unification is not a low-cost decision from a tax perspective.”

Glencore Plc (GLEN.L), another mining giant, on Wednesday said it’s studying whether to move its primary listing away from London, as a flux of companies exit the UK capital in search of deeper liquidity and heftier valuations. BHP Group (BHP) did so in 2022, while oil major Shell Plc (SHEL.L) has been considering a move to the US.

Rio’s board said it conducted an independent review of the listing structure last year, but failed to find any benefits. The company recommended shareholders vote against a Palliser motion to engage an independent firm to conduct another study.

Rio’s share register is far more weighted to London compared with BHP’s at the time. It has about three-quarters of its stock listed in the UK.

Most Read from Bloomberg Businessweek

(Bloomberg) — The world’s biggest miners, having cashed in on China’s once-rampant demand for iron ore, are starting to reel from the impact of their main customer’s economic struggles.

Most Read from Bloomberg

BHP Group Ltd., Rio Tinto Group and Fortescue Ltd. in Australia, and Brazil’s Vale SA, all posted weaker profits this week, after prices of the steel-making staple beat a retreat in the face of China’s prolonged property crisis and its impact on construction demand in the world’s second-biggest economy. The firms most exposed to iron ore fared the worst.

Iron ore was one of the worst-performing major commodities in 2024, losing more than a quarter of its value, with the average price of benchmark futures falling about 7% from the previous year. The Singapore market peaked above $140 a ton before dropping to around $100 a ton, and analysts predict that further losses to below $90 a ton are likely by the end of 2025.

Demand for steel in China is now widely thought to have peaked, and its decline means less need for iron ore. Although the country still imports over 1 billion tons a year, an inflection point is overdue. Steel mills are under increasing financial pressure and the government is unlikely to inject stimulus that would significantly boost the construction sector. Rising protectionism around the world is also set to undermine the country’s steel exports.

Worsening demand isn’t the only weight on iron ore prices. Supply is also likely to ramp up, with Guinea’s giant Simandou project expected to come online later this year, augmented by expansions in both Australia and Brazil.

Smaller, higher-cost miners will be worst hit, said Jiang Mengtian, the Shanghai-based chief iron ore analyst at consultancy Horizon Insights.

“The profit-squeezing process will gradually shift upstream, especially as the production capacity of iron ore mines is expected to increase by about 46 million tons in 2025,” she said.

The biggest miners are relatively insulated by their lower costs, but they’re still feeling the pinch. BHP posted record earnings in the year to June 2022 as iron ore demand soared, but annual profits have since more than halved. Rio’s annual earnings from the steelmaking ingredient fell 19% from 2023, even though production remained flat.

The two Australian powerhouses have spent decades scaling up iron ore mines to allow them to turn a profit even if prices fall. They’re also more diversified than some of their peers, with most of BHP’s revenue and over 40% of Rio’s coming from other metals.

“Rio is positioned to continue to generate strong cash flow from its iron ore business while also retaining, and increasing, its leverage to rising prices for copper and aluminum when the next demand cycle kicks in,” Chris LaFemina, an analyst at Jefferies Financial Group, said in a research note.

BHP and Rio saw their headline profit numbers drop by 23% and 8% respectively, but miners more exposed to iron, like Vale and Australia’s Fortescue Ltd., were in a worse position. The Brazilian firm relies on iron ore for 80% of its revenue and saw one gauge of its latest quarterly profit slump by 41%, while Fortescue, a pure iron ore play, posted a 53% plunge in the first half.

–With assistance from Paul-Alain Hunt.

Most Read from Bloomberg Businessweek

(Bloomberg) — Glencore Plc said it’s studying whether to move its primary listing away from London, potentially becoming the latest major miner to leave what has for decades been the industry’s global hub.

Most Read from Bloomberg

“Ultimately, what we want to ensure is that our securities are traded on the right exchange where we can get the right and optimal valuation for our stock,” Glencore Chief Executive Officer Gary Nagle said on a call with reporters. “There have been questions raised previously around whether London is the right exchange.”

Glencore began trading on the London Stock Exchange in 2011, in what was the bourse’s largest ever IPO at the time. The company said in a presentation on Wednesday that it was studying the best location for its primary listing.

Glencore joins some of the world’s biggest companies in weighing a London exit, as they look enviously at the deeper pools of capital, higher multiples and greater appetite for fossil fuels in the US. Oil major Shell Plc has been considering a move to the US, while miner Rio Tinto Plc is under pressure to collapse its London listing to focus on Australia. BHP Group Ltd. has already done so.

Losing Glencore would be a blow to London, which has lost 25% of its companies in the past decade.

Why London’s Once-Vibrant Stock Market Is in a Rut: QuickTake

After buying a majority stake in Teck Resources Ltd.’s coal business in 2023, Glencore floated the idea of putting the combined coal operations into a new company listed on the New York Stock Exchange. Mutual-fund data shows the US market is more supportive of companies involved in fossil fuels.

Nagle said the review had nothing to do with the new US administration or its views on fossil fuels. However, the US was the leading candidate for a change, he added.

“We’re looking at all relevant exchanges that would make sense for Glencore,” Nagle said. “London is one — where we are and where we’re happy — but if there’s a better one, and those include the likes of the New York Stock Exchange, we have to consider that.”

While coal miners globally have come under pressure as prices have fallen, US investors have warmed to the sector as Donald Trump has made clear that the dirtiest fossil fuel will have a central role to play in his campaign to overhaul America’s energy policy.

“We believe re-domiciling to the US would be a positive catalyst for these shares if the company decides to go down that path,” said Christopher LaFemina, an analyst at Jefferies LLC.

The discussions come as London battles to stem a flux of companies moving their listings overseas in search of deeper liquidity and heftier valuations. Plumbing products distributor Ferguson Enterprises Inc., construction materials group CRH Plc and betting firm Flutter Entertainment Plc are among those that have moved their primary listing to the US in recent years, while equipment rental firm Ashtead Group Plc is in the process of switching to New York.

In 2022, rival miner BHP switched its main listing to Sydney, ending a dual arrangement with London. Most of the trading in BHP shares was already done in Australia.

In addition to the defections, the British capital is also having to contend with a relentless wave of takeovers that reached 14-year peak last year, as well as a dearth of initial public offerings with just $1 billion raised in all of 2024, according to data compiled by Bloomberg.

–With assistance from Mark Burton.

(Updates with CEO comment in seventh paragraph, background on London listings in 11th)

Most Read from Bloomberg Businessweek

Production Growth: Over 5% increase in major commodities production, excluding divestments and suspensions.
Unit Cost Reduction: Close to 4% reduction in unit costs for major assets.
Inflation Impact: Almost a 4% inflation headwind, successfully overcome.
Interim Dividend: USD 0.50 per share.

Release Date: February 18, 2025

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

Positive Points

BHP Group Ltd (NYSE:BHP) reported a strong operational and financial performance for the December 2024 half-year, with a production increase of over 5% in major commodities.
The company achieved a close to 4% reduction in unit costs for major assets, overcoming a 4% inflation headwind.
BHP Group Ltd (NYSE:BHP) declared an interim dividend of USD0.50 per share, reflecting strong underlying operational performance.
The company is advancing attractive organic growth projects, including a joint venture with Lundin Mining in Argentina for a significant copper discovery.
BHP Group Ltd (NYSE:BHP) is well-positioned with strong demand for its products, supported by early signs of recovery in China, resilient US economic performance, and strong growth in India.

Negative Points

BHP Group Ltd (NYSE:BHP) faces challenges in mergers and acquisitions (M&A) due to market circumstances, making it difficult to find value in large global deals.
The company has not yet provided a timeline for the CapEx announcement or investment decision on the Waikuna project.
BHP Group Ltd (NYSE:BHP) is cautious about the iron ore market, anticipating a contracting market towards the end of the decade due to plateauing Chinese steel demand.
The nickel market remains uncertain, with BHP Group Ltd (NYSE:BHP) suspending operations and planning to review the decision to restart in early 2027.
The company is dealing with ongoing legal challenges related to the Samarco disaster, with claimants in the UK case and potential liabilities still unresolved.

Q & A Highlights

Q: Can you provide an update on the timing for the Waikuna project, including CapEx announcements and investment decisions? A: We haven’t specified exact timings yet, but we plan to provide resource updates and outline key milestones, including potential FID completion, in the first half of the year. – Mike Henry, CEO

Q: How does BHP view M&A opportunities given current market conditions? A: M&A is challenging due to market circumstances, and our focus remains on organic growth, particularly in copper and potash. We are committed to delivering on our existing projects. – Mike Henry, CEO

Q: Does the medium-term CapEx guidance include the Escondida recapitalization? A: Yes, the $10 billion to $11 billion per year guidance includes Escondida recapitalization but excludes future nickel CapEx and certain other projects. – Mike Henry, CEO

Q: What gives you confidence in ramping up copper production in South Australia given past underperformance? A: Improved performance at Olympic Dam, investment in asset integrity, and synergies from consolidating assets give us confidence in future growth. – Mike Henry, CEO

Q: Do you see the market needing an extra 25 million tonnes of iron ore with the Way 330 expansion? A: We don’t see a need for more tonnes due to plateauing Chinese demand, but we are evaluating the potential returns from expanding our best-performing asset. – Mike Henry, CEO

Q: Will the nickel asset be put up for sale in the near term? A: We are optimistic about the nickel market’s potential improvement but will review the decision to restart in early 2027. – Mike Henry, CEO

Q: Is the current net debt target range still appropriate given potential growth phases? A: We believe a firm net debt range is the best metric for ensuring a robust balance sheet and disciplined capital allocation. – Mike Henry, CEO and Vandita Pant, CFO

Q: Are there concerns about time slippage or cost implications for the Jansen project? A: No concerns, as we have a well-defined contract with West Shore, and the project is progressing well. – Mike Henry, CEO

Q: How low do you think iron ore prices can go in the next 5 to 10 years? A: Prices could be pressured by new supply, but we focus on being at the low end of the cost curve and improving product quality to maintain resilience. – Mike Henry, CEO

Q: Can you provide an update on the Samarco UK class action and other legal matters? A: Our position remains that the Brazilian system is the most appropriate recourse for claimants, and some have migrated to it for faster resolution. – Mike Henry, CEO

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

This article first appeared on GuruFocus.

CONNECT WITH US

Tweets

Tweet with hash tag #miningfeeds or @miningfeeds and your tweets will be displayed across this site.

Tweets by MiningFeeds

MOST ACTIVE MINING STOCKS

Daily Gainers


CMC Metals Ltd.	CMB.V	+900.00%
Tasman Resources Ltd.	TAS.AX	+566.67%
Peak Resources Limited	PEK.AX	+150.00%
Peak Resources Limited	PEK.AX	+150.00%
Adex Mining Inc.	ADE.V	+100.00%
Energy Resources of Australia Ltd	ERA.AX	+100.00%
Resource Mining Corp. Ltd.	RMI.AX	+83.33%
MRG Metals Limited	MRQ.AX	+33.33%
Galore Resources Inc.	GRI.V	+33.33%
Casa Minerals Inc.	CASA.V	+30.00%

CONNECT WITH US

Tweets

MOST ACTIVE MINING STOCKS

Daily Gainers

Articles

FOUND POSTS

Pan American Silver (NYSE:PAAS) to Acquire MAG Silver in $2.1 Billion Deal, Gains 44% Stake in Juanicipio Mine

Barrick Begins Trading Under Single-Letter ‘B’ Ticker on NYSE

Gold Isn’t Going Up—Your Money is Just Losing Value

Saudi Arabia and U.S. Set to Formalize Mining Cooperation Agreement Along with Broader Industrial Push

Ivanhoe Mines (TSX:IVN) Reports Record Copper Production from Kamoa-Kakula, Advances Projects in DRC