(Bloomberg) — BHP Group Ltd. made an improved A$9.6 billion ($6.4 billion) offer to acquire copper producer OZ Minerals Ltd. as the world’s top miner seeks more exposure to rising demand from clean energy and electric cars.

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OZ Minerals will recommend shareholders vote in favor of the A$28.25 a share offer, the Adelaide, Australia-based company said Friday, after rejecting an earlier A$25 per share bid in August. The proposed acquisition would be BHP’s largest since the $12.1 billion purchase of Petrohawk Energy Corp. in 2011.

Miners across the globe are hungry for copper assets to add a metal that’s regarded as critical to the energy transition due to its use in electricity networks, renewable energy and electric vehicles. Demand for copper is set to jump 58% by 2040, according to BloombergNEF, and BHP is looking to consolidate its position as one of the world’s largest producers.

BHP has said so-called future facing metals copper and nickel, as well as fertilizer ingredient potash, are key to the company’s growth as demand plateaus for iron ore, its most important commodity, and the world moves away from fossil fuels. BHP has reduced its coal business in recent years, and sold its entire oil and gas business to Woodside Energy Group this year.

“The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership,” BHP Chief Executive Officer Mike Henry said.

OZ Minerals shares rose as much as 4.5% to A$27.49, the highest level since April, and traded at A$27.38 as of 12:13 p.m. in Sydney on Friday.

The latest offer is 49% above the OZ Minerals share price on Aug. 5, the trading session before BHP made its first bid. BHP will now conduct due diligence and the offer will be its “best and final” proposal, the company said.

OZ Minerals, which has operations adjacent to BHP’s huge Olympic Dam mine in South Australia, would add around 7% to BHP’s annual copper production. The target also has mines in Brazil and a key nickel project in Western Australia.

“BHP’s revised proposal is a clear reflection of OZ Minerals’ unique set of highly strategic, quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel assets in strong demand due to global electrification,” OZ Minerals Chief Executive Officer Andrew Cole said.

The offer came as Rio Tinto Group, BHP’s biggest competitor, hit another roadblock in its bid to take full control of Turquoise Hill, a Canadian company that has what would be one of the world’s largest copper mines in Mongolia.

(Adds shares in sixth paragraph. A previous version of the story corrected the currency in headline.)

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(Bloomberg) — Oz Minerals Ltd. has requested a trading halt pending an announcement in relation to a potential change-of-control transaction, three months after the copper miner rejected a A$8.4 billion ($5.7 billion) bid by BHP Group Ltd.

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The securities will remain in the trading halt until the commencement of normal trading on Friday, or when the announcement is released to the market, Oz Minerals said in a statement to the Australian Securities Exchange on Wednesday.

BHP was the likely bidder, but it’s also possible it could be a new entrant because the mining giant hadn’t entered a trading halt, Shaw and Partners analyst Peter O’Connor said in a note. The bidder would need to offer “A$30 a share or close to it,” he said.

BHP’s initial offer for Oz Minerals was for A$25 a share. The company’s shares closed at A$26.30 in Sydney on Tuesday.

A spokesperson from BHP declined to comment.

See also: Oz Minerals Said to Seek A$10 Billion in Potential Sale

BHP, which hived off its oil and gas assets this year, is seeking growth in commodities tied to trends including low-emissions transport and clean energy — particularly copper for renewables and nickel for lithium-ion batteries. The mining giant is also pouring billions of dollars into a giant new potash mine in Canada to enter the fertilizer sector.

(Updates with comment from analyst in 3rd paragraph.)

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(Bloomberg) — Chilean regulatory uncertainties that have held up some investments in the biggest copper-producing nation are dissipating, according to BHP Group, the world’s top mining company.

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Earlier this month, Chileans overwhelmingly rejected a proposed new constitution that signaled tougher rules to protect the environment and local communities. Authorities are showing willingness to receive feedback on planned tax hikes, BHP President Minerals Americas Ragnar Udd said Tuesday.

“The uncertainties are easing,” he said in an interview from the Perumin conference in Arequipa, Peru. “We’re starting to see a bit more moderated conversations around the constitution in terms of what that’s going to look like one way or the other.”

BHP, which operates the world’s biggest copper mine in Chile, has dangled $10 billion to develop more resources in the country if those uncertainties are finally resolved. Huge investments are needed to help boost global supply at a time when demand for the wiring metal is set to rise as the world turns away from fossil fuels.

While it’s up to Chileans to decide whether they want a regulatory environment that remains competitive with other mining nations, people do recognize the importance of a stable economy, Udd said.

“The conversations I’ve had would suggest that there is a sensation that the reality is that Chile has an important role to play in the world and some of the changes that we see going forward probably won’t be as extreme as we’ve seen in the past,” he said.

Chile’s push for a bigger share of mining profit to address inequalities are part of the copper market’s growing supply-side challenges. Deposits around the world are getting trickier and pricier to find and develop, while there’s heightened scrutiny of environmental and social issues. Surging inflation, rising interest rates and global recession fears that have brought down commodity prices in recent months are adding to investment barriers.

Inflation is washing through mining projects, “to the point that I think that will create another obstacle in terms of how people think about investing for the next period of time,” Udd said.

“Organic growth is challenged in the current environment,” he said. “We for a second though are not backing off of exploration, nor are we backing off from early-stage entries or innovation. In fact, this sort of environment creates a possibility in terms of what can you unlock with what you’ve got.”

These days, BHP is focusing more on technologies such as leaching that can boost output without incurring huge upfront costs. It’s also taking a “more proactive stance” on early-stage entry, Udd said.

The company’s team in Toronto continues to scour for deal opportunities in nickel, although that hunt isn’t restricted to early-stage targets. “This is not an ‘or’ conversation, this is an ‘and’ conversation,” he said. “If it adds value, we will pursue it.”

With regards to BHP’s interest in Sydney-listed OZ Minerals Ltd., Udd said a non-binding indicative offer has been made. “If Oz would like to talk to us, we’re very receptive to that.”

In the case of its smallest mine in Chile, Cerro Colorado, BHP is exploring alternatives to continue operating beyond 2023, when current permits expire. A solution probably would include the use of seawater, he said. “That’s a process and studies we’re working through at this point.”

Udd wouldn’t be drawn in to making copper-price predictions in such a volatile market. Like most in the industry, he offered an upbeat outlook for the medium and longer term as decarbonization drives demand for the wiring metal and the industry struggles to keep pace. But with the current slowdown and some new supply coming on stream, near-term prospects are far less favorable, although BHP is still relatively bullish on China.

“It’s a volatile world and probably will continue to be for at least the next couple of years,” he said “We just need to adjust to that, recognizing though that there’s a longer term goal that we can be working on.”

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For Immediate Release

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. (AMX) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

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

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

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

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

Today's Must Read

BHP Group (BHP) Bets on Operation Efficiency Amid High Costs

Dividends & Buybacks Boost UPS' Prospects Despite Cost Woes

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications

Featured Reports

Strategic Acquisitions Aid Schwab (SCHW) Amid Cost ConcernsPer the Zacks analyst, while Schwab's inorganic growth initiatives and other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent.

EOG Resources (EOG) Banks On Oil-Rich Delaware Basin AssetsThe Zacks analyst believes that EOG Resources' 6,620 net undrilled premium locations in the Delaware basin will drive oil production growth. However, rising lease and well expenses are concerning.

America Movil (AMX) Benefits from Increasing Subscriber BasePer the Zacks analyst, America Movil's performance is gaining from increased broadband client base. However, stiff competition and the firm's high leverage remain concerns.

New Product Development, Wide Market Reach Aid Eaton (ETN)Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

Moderna's (MRNA) Dependence on COVID-19 Vaccine Sales A WoeThough Moderna's COVID vaccine sales have significantly boosted its cash resources, the Zacks Analyst is concerned since the company's other pipeline candidates are years away from commercialization.

Robust Digital Sales Aid Walgreens (WBA) Amid High CostsThe Zack analyst is encouraged by Walgreens' (WBA) improved online growth momentum led by strong digital sales in the United States. Yet, mounting expenses weigh on the company's bottom line.

Solid Project Execution Aids Quanta (PWR) Amid Project DelaysPer the Zacks analyst, Quanta benefits from solid project execution strategy and three-pronged growth plan. Yet, project variability and elevated consumables costs due to supply-chain disruptions ail.

New Upgrades

Paylocity Holding (PCTY) Benefits From Growing Customer BasePer the Zacks Analyst, Paylocity Holding is benefiting from its differentiated employee strategy, comprehensive product offerings and on-demand pay facility, that are helping it win new customers.

RBC Bearings (ROLL) Rides on Industrial Segment StrengthPer the Zacks analyst, strong performance of the Industrial segment owing to strength in semiconductor, mining, energy, and general industrial end markets, supports RBC Bearings' growth.

Triton (TRTN) Benefits From Dividends & Share RepurchasesThe Zacks analyst likes the shareholder-friendly measures adopted by Triton. Gradual increase in trade volumes and container demand also bode well for the company.

New Downgrades

Soft Comps Performance to Hurt Children's Place (PLCE) SalesPer the Zacks analyst, persistent of soft comps performance may hurt Children's Place sales. The company expects a low-double-digit decline in comps in both the third quarter as well as fiscal year.

Rising SG&A Expenses are a Concern for Wolverine (WWW)Per the Zacks analyst, rise in SG&A costs is a concern for Wolverine. Adjusted SG&A expenses jumped 13% to $228.5 million due to higher variable costs in the second quarter of 2022.

Exposure to Cat Loss, Rising Costs Ail Cincinnati (CINF)Per the Zacks analyst, Cincinnati Financial's exposure to catastrophe events induces underwriting volatility while rising costs weigh on margin, in turn both affecting profitability.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. (AMX) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

By Ambar Warrick

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

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

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

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

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

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

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

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

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

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

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

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

Methane-Spewing Coal Mines Are Climate Test for Australia PM

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

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

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

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

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

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

©2022 Bloomberg L.P.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global Growth

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

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

Steel

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

Iron Ore

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

Copper & Nickel

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

Coking Coal

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

Thermal Coal

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

Potash

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

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By Ambar Warrick

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

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

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

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

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

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

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

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

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

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

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

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

Home Depot (NYSE:HD) stock fell 0.8% after the home improvement retailer maintained its outlook for fiscal 2022 even as it reported quarterly comparable sales above expectations on steady demand for home improvement goods from builders and handymen.

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

Zoom Video (NASDAQ:ZM) stock fell 3.3% after Citigroup downgraded its investment stance on the communications company to ‘sell’ from ‘neutral’, citing growing competition from Microsoft's (NASDAQ:MSFT) Teams.

Bed Bath & Beyond (NASDAQ:BBBY) stock fell 2% after B. Riley downgraded its stance on the home furnishings retailer to ‘sell’ from ‘neutral’, saying it’s trading at unrealistic valuations.

PayPal (NASDAQ:PYPL) stock rose 1.0% after Daiwa upgraded its stance on the online payments giant to ‘outperform’ from ‘neutral’, saying the company is turning around after recent struggles.

BHP Group (NYSE:BHP) ADRs rose 3% after the mining giant reported its highest profit in 11 years on the back of gains in prices of coal and other commodities. Philips (NYSE:PHG) ADRs rose 2.6% after the Dutch health technology company unexpectedly announced the imminent departure of CEO Frans van Houten, as he takes the blame for a massive product recall that has halved its market value over the past year. ZipRecruiter (NYSE:ZIP) stock fell 7% after the online employment website operator announced disappointing guidance, saying employers were starting to pull back on job postings. ThredUp (NASDAQ:TDUP) stock rose 2.3% after the online clothing resale platform reported a 29% increase in active buyers.

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

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

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

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

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

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

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

Shares Rise

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

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

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

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

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

Electric Metals

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

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

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

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

(Updates with CEO comment in fourth paragraph)

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

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

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

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

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

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

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

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

(Updates with details, background of Xiao)

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

By Praveen Menon and Siyi Liu

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

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

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

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

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

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

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

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

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

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

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

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

Rival Anglo-Australian miner Rio Tinto declined to comment.

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

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

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

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

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

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

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

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

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

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

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

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

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

Iron Giant

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

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

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

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

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

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(Bloomberg) — BHP Group Ltd. will accelerate the start of a $5.7 billion potash project in Canada as high gas prices and curbs on key exporters disrupt fertilizer supply chains.

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The world’s top miner, which is entering production of the crop nutrient to add exposure to population growth, has been searching for ways to speed up the project as the long-term outlook for fertilizer prices strengthens.

“We are working to bring forward Jansen Stage 1 first production into 2026 and are assessing options to accelerate Jansen Stage 2,” Melbourne-based BHP said Tuesday in a statement. Jansen’s first stage had previously been expected to commence in 2027.

Read more: The Vital Fertilizer That’s Driving Multibillion-Dollar Bets

BHP last year finally approved construction of the Jansen mine in Saskatchewan, Canada, after years of debate over the huge price tag. Jansen could operate for a century, and eventually grow to a scale that would rival the size of the company’s flagship Pilbara iron ore operations, according to BHP.

The producer had been reviewing options to accelerate the project’s timeline, Ragnar Udd, president of BHP’s Minerals Americas business, said in a May interview.

Fertilizers have become more expensive as a hike in natural gas prices — a crucial feedstock — has raised costs. Sanctions on Belarusian potash, and moves by China to rein in shipments have also tighten the market.

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

Equinox Gold Corp. EQX engages in the exploration and development of mineral properties. The Zacks Consensus Estimate for its current year earnings has been revised 20% downward over the last 60 days.

BHP Group Limited BHP is a resources company that operates in Petroleum, Copper, Iron Ore, and Coal segments. The Zacks Consensus Estimate for its current year earnings has been revised 18.4% downward over the last 60 days.

Honda Motor Co., Ltd. HMC manufactures, and distributes motorcycles, automobiles, power products, and other products. The Zacks Consensus Estimate for its current year earnings has been revised 10.3% downward over the last 60 days.

View the entire Zacks Rank #5 List.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Equinox Gold Corp. (EQX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

It hasn’t been the best quarter for BHP Group Limited (ASX:BHP) shareholders, since the share price has fallen 24% in that time. Looking further back, the stock has generated good profits over five years. Its return of 56% has certainly bested the market return!

So let’s investigate and see if the longer term performance of the company has been in line with the underlying business’ progress.

Check out our latest analysis for BHP Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, BHP Group managed to grow its earnings per share at 46% a year. The EPS growth is more impressive than the yearly share price gain of 9% over the same period. So one could conclude that the broader market has become more cautious towards the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 8.68.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on BHP Group’s earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for BHP Group the TSR over the last 5 years was 148%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

While it’s never nice to take a loss, BHP Group shareholders can take comfort that , including dividends,their trailing twelve month loss of 1.0% wasn’t as bad as the market loss of around 4.0%. Longer term investors wouldn’t be so upset, since they would have made 20%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we’ve spotted with BHP Group (including 1 which shouldn’t be ignored) .

BHP Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

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

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BHP has announced plans to tackle biodiversity loss, in a move that the world’s biggest mining company hopes will put it ahead of rivals in the race to secure the best mineral deposits in the shift to clean energy. The biodiversity goal is part of a wider “social value” scorecard published on Tuesday that includes plans for a revised strategy on indigenous relations and full adherence to a programme on combating sexual assault and harassment in 2023. “The scrutiny of our industry continues to be high and the expectations on us are also high,” said BHP’s chief external affairs officer Caroline Cox.

By Nick Carey

LONDON (Reuters) – UK startup Circulor, which uses blockchain technology to map supply chains for companies pursuing greener, more sustainable production, said on Tuesday it had raised $25 million to fund expansion, primarily in the United States.

The Series B funding round brings Circulor's fundraising over the last two years to $45 million. The funding round was led by early Tesla investor Westly Group and included investments from the venture capital arms of Volvo Cars, Jaguar Land Rover (JLR) and BHP Group, the world's largest listed miner.

Westly Group founder Steve Westly told Reuters that Circulor is "very much like Tesla," a pioneer in electric vehicles (EVs)that is the world's largest carmaker by market capitalisation.

"The market is going that direction in an extraordinarily rapid way… and Circulor is by far the leader in this sector," he said.

Circulor is working with carmakers including Volvo, Tata Motors unit JLR, plus miners and energy companies BHP and TotalEnergies, to trace their supply chains as they pursue environmental, social and corporate governance (ESG) goals.

BHP has used Circulor's blockchain platform to track the carbon emissions of nickel from the point when it was mined to Tesla's "gigafactory" in Shanghai.

Circulor CEO Douglas Johnson-Poensgen said demand for supply chain visibility has grown in response to regulatory pressure from the U.S. Securities and Exchange Commission (SEC).

Global supply chain disruptions have given manufacturers further reason to seek scrutiny over every stage of a component's journey.

"U.S. industry is increasingly interested in not just origin, but also demonstrating ESG performance because the SEC has made clear that the greenwashing and war of glossy brochures isn't good enough," Johnson-Poensgen told Reuters.

The U.S. government has also pushed for domestic EV battery production, which Johnson-Poensgen said will intensify the need for better supply chain mapping.

"Clearly the global arms race for battery materials is going to spread to the U.S. pretty quick," he said. "The one thing I think most folks can agree on is whatever the reason for supply chain visibility, it is now mission critical."

Johnson-Poensgen added that Circulor plans an initial public offering "in due course".

(Reporting By Nick Carey; editing by Barbara Lewis)

(Updates with BHP comment on royalty hike)

By Harish Sridharan

June 22 (Reuters) – Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts warned on Wednesday.

Australia's second-largest state, which aims to deliver a budget surplus by 2024-25, said on Tuesday it would increase royalties on coal production after a 10-year freeze, to capture windfall profit from rocketing coal prices.

The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd, Glencore PLC, Anglo American PLC and Peabody Energy Corp.

"We had expected QLD (Queensland) to increase royalties but the magnitude of the increase & the lack of consultation with the mining industry in our opinion sets a concerning precedent, especially when many governments are looking to balance budgets post-COVID," analysts at UBS said in a note.

Resources lobbies in Queensland slammed the move, saying it would compound the tax burden on coal producers who already pay double the royalty rate in Australia's other major coal-producing state, New South Wales (NSW).

"The cost of doing business in Queensland is already high, and further cost pressures will discourage investment, operational growth, job creation and local business spending," Edgar Basto, President Minerals Australia at BHP, said in an emailed statement to Reuters.

While NSW left its rate unchanged, analysts said they would be keeping an eye out for the Commonwealth Budget in October to see if there were any plans to lift rates for iron ore or other miners, considering the boom most commodities saw recently in the wake of the Russia-Ukraine conflict.

"While NSW did not follow the Queensland government's decision to hike royalties, record high commodity prices and ongoing budget deficits could pressure other governments to raise mining taxes," Australian brokerage firm Barrenjoey said.

UBS also flagged the risk of other mining countries like Chile, Peru, Canada and Zambia raising taxes over the next two years after Queensland's move.

Chile, a major copper producer, is already set to push forward its tax reform plans that include a bill on mining royalties, while Indonesia announced plans of raising royalty tariffs on tin production earlier this week.

(Reporting by Harish Sridharan and Sameer Manekar in Bengaluru; Editing by Subhranshu Sahu)

(Bloomberg) — BHP Group u-turned on its plan to exit from thermal coal, after surging prices made the assets more valuable and a shift in investor attitudes has reduced pressure on the company to stop mining the dirtiest fuel.

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The world’s biggest resources companies and their shareholders have been grappling for years with the question of whether to get out of the fossil-fuel business. BHP already sold out of a giant coal mine in Colombia and its biggest rival, Rio Tinto Group, completely exited coal years ago, while top shipper Glencore Plc says it will hold onto its mines until they run out of coal sometime before 2050.

Investors Pushed Mining Giants to Quit Coal. Now It’s Backfiring

Now investors are growing increasingly wary of the unintended consequences of divestment, especially as spiking energy prices make it a lucrative business for new owners — meaning more coal could end up being produced for longer. Anglo American Plc spun off its South African coal mines last year into a new company that immediately announced it planned to increase production.

As a result, pressure from ESG-focused investors to quickly sell coal assets has been replaced by calls on major commodity producers to focus on the responsible — and accelerated — closure of the operations.

“Use of asset divestment as a tool to lower carbon footprints and avoid responsible closure is not acceptable,” Harriet Kater, climate lead for Australia at the Australasian Centre for Corporate Responsibility, a shareholder activist group, said in a statement.

In fact, BHP will seek to extend the operation’s life until the end of the decade, from the current permitting through 2026. The company said it will work with the local community over the next eight years on a closure plan.

While the company was still looking to sell the mine, it surprised investors by applying to extend mining until 2045, which prompted concerns that a potential buyer could keep the operation open until then.

BHP’s move to exit the business has also been complicated by a price surge that saw Asia’s benchmark Newcastle coal advance to a record high last month. BHP sold its stake in the Cerrejon coal mine to Glencore before prices spiked, which given the structure of the deal meant Glencore got the asset almost for free.

Glencore Gets Rich on Coal, But Questions Persist Over Exit Plan

Glencore itself is on course to make record profits from its coal business this year and could overtake Rio Tinto to become the world’s second most profitable miner as a result. The company has been forced to revisit the debate over its coal strategy this year as some investors push for more detail about the plan to wind down coal mines. However, the plan still received support from 76% of investors in a vote in April.

BHP has been seeking to shed fossil fuel assets as Chief Executive Office Mike Henry focuses the company around its top-earning iron ore unit, and on metals tied to the energy transition, including copper and nickel.

A sprawling oil and gas unit was divested to Woodside Energy Group in a deal completed this month, while the firm also last year sold a package of Australian metallurgical coal assets.

BHP has a provision of about $700 million for the closure of Mt Arthur and expects rehabilitation work to last about 10 to 15 years after mining ends, the company said in its statement.

(Updates with chart and additional background.)

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

By Sonali Paul

BRISBANE (Reuters) -Woodside Petroleum's shareholders on Thursday voted for a merger with BHP Group's petroleum arm to create a top 10 global independent oil and gas producer worth $40 billion, according to a vote count at the company's annual meeting.

Of the total final votes, 98.66% were in favour of the deal.

The merger, agreed last August, advances top global miner BHP's effort to move away from fossil fuels, as it looks to decarbonise, while doubling Woodside's oil and gas production and beefing up its funding for growth.

"The merger is an opportunity for Woodside to increase its contribution to the world's growing energy needs and build the scale, resilience and diversity to thrive through the energy transition," Chief Executive Officer Meg O'Neill told shareholders.

BHP will be paid in Woodside shares, giving BHP investors a 48% stake in the merged group, which will have assets in Australia, the United States, Mexico, Senegal and Trinidad.

While backing the merger, shareholders were disappointed with Woodside's climate plan, which does not set targets for reducing its customers' emissions, called Scope 3 emissions.

Nearly 49% of the votes were against the climate plan, which Woodside put to an advisory vote for the first time.

Two proxy advisers recommended voting against the plan.

Woodside Chairman Richard Goyder ordered the microphone to be cut off after one proxy for a shareholder asked whether the company's plans to invest in fossil fuels were "morally mad, economically mad or both", to which the chairman replied, "Or neither".

However, Goyder said the company clearly needs to engage more with shareholders to explain that its plans are in line with Paris Agreement goals.

O'Neill said Woodside's strategy on Scope 3 is to come up with clean products, such as hydrogen, for its customers.

(Reporting by Sonali Paul; Editing by Christopher Cushing and Rashmi Aich)

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