(Compares estimates, adds all-in sustaining costs, background)
July 29 (Reuters) – Canadian miner Turquoise Hill Resources Ltd on Thursday beat estimates for second-quarter profit, bolstered by a strong output from the Oyu Tolgoi mine in Mongolia and higher prices of copper and gold.
Prices of the red metal hit a record high in May, boosted by demand from electric-vehicle makers and other clean-energy investments. Bullion prices also rose in the second quarter as a weak dollar and pandemic-related uncertainties lifted its safe-haven appeal.
Turquoise Hill's copper production from Oyu Tolgoi stood at 36,735 tonnes in the quarter, compared with 36,495 ounces last year. Its gold output more than tripled to 113,054 ounces.
Oyu Tolgoi, one of the world's largest copper-gold-silver mines, was at the center of a long-running funding spat between Rio Tinto and Turquoise, before the dispute was put to bed in April.
The Mongolian government holds a 34% stake in the Oyu Tolgoi project with Rio's majority-owned Turquoise owning the rest.
Turquoise Hill's all-in sustaining costs fell 32% to $1.48 per pound of copper produced in the quarter.
Its income attributable to the owners of the company was $96.9 million, or 48 cents per share, for the three months ended June 30, compared with $72.6 million, or 36 cents per share, a year earlier.
Analysts on average were expecting a profit of 34 cents per share, according to Refinitiv IBES.
(Reporting by Rithika Krishna in Bengaluru; Editing by Devika Syamnath)
(Bloomberg) — Sacred sites, endangered sawfish and mythical rainbow serpents are the latest challenges confronting commodities powerhouse Australia as the nation’s top mining companies meet for their biggest annual conference.
Since the destruction last year by Rio Tinto Group of a 46,000-year-old Aboriginal rock shelter at Juukan Gorge, the industry has been scrambling to deal with a backlash over heritage protection and environmental issues. A national enquiry into the incident and new laws being drafted by the Western Australia government could have an impact on some A$18 billion ($13 billion) in projects planned by mining giants operating in the Pilbara, the nation’s iron-ore heartland, as well as other resources projects.
The industry, which gathers on Monday for the three-day Diggers and Dealers conference on the edge of a huge gold mine in Kalgoorlie, Western Australia, is already facing the threat of increasing restrictions on emissions, as well as a political spat with China, its biggest buyer. Now, Aboriginal communities are fighting for a stronger role to protect their culture from resources extraction and agriculture.
“The new legislation will put Aboriginal people at the center of decision making,” the Western Australia government said in an emailed statement. “One of the primary objectives of the bill is to ensure that Aboriginal people have custodianship over their heritage.”
The proposed new law will seek to strike a balance between giving indigenous people a stronger voice, without impeding growth in a resources industry estimated to have delivered a record A$310 billion in export revenue in fiscal 2021. Australia ranks among the top producers of metals from gold to lithium and some investors are concerned that if the rules don’t provide traditional landowners with enough safeguards, it could increase the risk of another damaging incident.
“This is a once in a generation opportunity to get a piece of legislation and not just try and fix it at the edges,” said Mary Delahunty, head of impact at pension fund Hesta, which has about A$60 billion in assets. She said the WA government’s draft proposal does not appear to go far enough in giving indigenous groups a stronger voice.
Traditional landowners agree.
“The current draft won’t prevent another Juukan Gorge,” said Wayne Bergmann, interim chief executive officer of the Kimberley Land Council, which represents Aboriginal landowners in the far north of the state. Bergmann is concerned that, under the proposed legislation, the final decision on whether work can be carried out in an area of cultural significance will still be the responsibility of whichever minister is in power at the time, rather than an independent expert body.
“Fundamentally, the investment community needs to be worried because this places risk on projects,” Bergmann said. The government says it was still drafting the bill, and had already made several revisions based on feedback from stakeholders.
Rio, the world’s biggest iron-ore miner, said it is giving cultural heritage and environmental issues a higher priority in the wake of Juukan Gorge and has set up an indigenous advisory committee to improve its engagement with local communities. The London-based company said in April it had reviewed over 1,300 sites in the Pilbara for their potential impact on cultural heritage, with subsequent additional safeguards resulting in 54 million tons of dry ore being removed from its reserves.
Read: A Miner Blew Up Ancient Human History. An Industry May Pay
The fallout from Juukan Gorge is affecting more than the mining industry. The new legislation will also affect agriculture.
One example is the plight of sawfish, which are under threat from the demands of cattle stations that extract water from the Fitzroy River, one of the last remaining nursery habitats of the critically endangered freshwater sawfish, which can grow up to 7 meters long.
The distinctive rays, with their chainsaw-like snouts, are seen in Aboriginal culture as protectors of the river. The global range of the species has declined by more than 60% since the turn of the century, according to a 2019 study by Murdoch University’s Harry Butler Institute.
The WA government has extended a consultation process on water management plans for the Fitzroy River to the end of August.
The task of lawmakers is complicated by the fact that the new rules need to protect not only historical sites and the environment, but also cultural beliefs.
When iron-ore billionaire Andrew Forrest proposed building weirs on one of his cattle stations to hold water from the Ashburton River, the plan was rejected by the state government because of its potential impact on the rainbow serpent, which Aboriginal culture says resides in the river. Forrest’s legal team is appealing the decision, arguing that the weirs will have minimal impact on the river flow, and the serpent will still be able to move freely.
Night Parrot
Forrest, who has a doctorate in marine ecology, has been a vocal supporter of the Aboriginal community — indigenous people make up around 12% of the Australian-based workforce at his Fortescue Metals Group Ltd. The company vowed to protect the endangered night parrot, which had been feared extinct prior to a 2005 sighting near the group’s Cloudbreak mine in the Pilbara.
Hesta’s Delahunty says landowner groups should have the right to veto projects, which would reassure investors that local community concerns were being taken seriously. “It’s important not just from a reconciliation point of view, but also to the financial outcomes of the company.”
The WA government said it won’t include a right of veto, which would be “a disincentive to agreement making.”
Meanwhile, resources companies are aware that their social license to operate is under closer scrutiny than ever. Rio’s former Chief Executive Officer Jean-Sebastien Jacques and other senior executives stepped down in the wake of the Juukan Gorge incident. Since Jacques’ departure, Rio’s shares have gained around 28% in London as iron-ore prices soared, but the FTSE All-Share Industrial Metals and Mining Index has more than doubled in the same time.
“Australia is watching,” Delahunty said. “The investment community is watching this process, because on our watch we will not have another of these incidents.”
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Edmonton, Alberta–(Newsfile Corp. – July 29, 2021) – Grizzly Discoveries Inc. (TSXV: GZD) (OTCQB: GZDIF) (FSE: G6H) ("Grizzly" or the "Company") is pleased to announce that field crews have completed an initial phase 1 sampling evaluation of high-priority conductivity anomalies in the search for Cobalt (Co), Copper (Cu) and Silver (Ag) mineralization that have been identified at its Robocop Property following analysis of the recent 400 line-km Versatile Time Domain Electromagnetic ("VTEM™") and magnetic survey data (Figure 1 below). Results are pending and once received will be used to plan ground geophysical surveys over the high-priority anomalies. The Robocop Property is 100% owned by Grizzly and is easily road accessible in Southeast British Columbia (the "Property"), near the hamlets of Grasmere and Roosville.
Brian Testo, CEO of Grizzly, commented, "The initial results will provide high-priority drill targets to be drilled during Q3 2021. Historical results have provided high-grade copper, cobalt and silver and we anticipate more results that will enable drill targeting towards the source of multiple anomalies. The Property has significant potential for new copper-cobalt discoveries."
Crews from APEX Geoscience Ltd. conducted a follow-up Phase 1 ground geochemical survey to test a number of high and secondary priority geophysical anomalies identified in the vicinity of the "Discovery Area" (See Figure 2 below) and across the property. The Discovery Area has provided historical anomalous trench and core intersections of up to 0.134% Co, 1.19% Cu and 33.8 grams per tonne (g/t) Ag over 1.23 m. Over the course of the three-week program a total of 588 soil samples and 16 rock samples were collected from across the property (see Figure 2 below). The samples have been submitted for multielement geochemical analysis.
Fig 1. New mineral claims (in white outlines) on a map of calculated time constant TAU values for conductance for S Field (dB/dt) with Cu in rocks & soils.
To view an enhanced version of Fig. 1, please visit:
https://orders.newsfilecorp.com/files/4488/91508_de556fa3a49898d2_002full.jpg
Fig 2. EM anomalies (including high priority anomalies as white stars) on a map of conductance for S Field (dB/dt) with sampling conducted in June 2021.
To view an enhanced version of Fig 2, please visit:
https://orders.newsfilecorp.com/files/4488/91508_de556fa3a49898d2_003full.jpg
A number of high priority targets have been identified with some in close proximity to known Co-Cu-Ag geochemical anomalies identified in historical rocks grab samples, soils and drilling. Figure 2 above shows the locations of the 2021 soil and rock samples collected to date. The samples have been submitted to ALS Chemex in Vancouver for multielement geochemical analysis and results will be released in the coming weeks as they are received. During the course of the field work a couple of new showings of copper mineralization were found in float and outcrop. An example of copper bearing float hosted in sedimentary rocks about 300 m west of the main showings and in the vicinity of high priority VTEM anomalies 15-3 and 16-3 is provided in Figure 3 below.
A Notice of Work land use permit application for drilling a number of the VTEM anomalies has been submitted to the Front Counter BC's Cranbrook Office with anticipated drill testing in the fall, 2021.
The property is hosted within a similar geological setting to the Idaho Cobalt-Copper belt where conductivity (EM) and magnetic surveying techniques have been used previously to successfully guide drilling of prospective targets and assist in making new metal discoveries.
Fig 3. Strong malachite staining on metasiltstone-sandstone float found during the field program in June 2021.
To view an enhanced version of Fig 3, please visit:
https://orders.newsfilecorp.com/files/4488/91508_de556fa3a49898d2_004full.jpg
HIGHLIGHTS FOR THE ROBOCOP PROPERTY
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The Robocop Project is comprised of 9,053 acres (3,663 ha) in five mineral claims that are all road accessible, just off Provincial Highway 93 in southeast B.C.
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Initial surface trenching in the late 1980's to early 1990's yielded up to 0.06% Co and 1.93% Cu over 6 metres (m) in one trench, and in a separate trench up to 0.146% Co, 1.8% Cu and 5.3 grams per tonne (g/t) Ag over 5 m in sediment-hosted sulphide mineralization within middle Proterozoic Purcell Group rocks (Thomson, 1990).
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A total of 15 drill holes in the area between 1990 and 2008 have yielded several intersections of near surface Co-Cu-Ag mineralization with grades of up to 0.134% Co, 1.19% Cu and 33.8 g/t Ag over 1.23 m core length in hole R-1990-5 and 0.14% Co, 0.9% Cu and 2.7 g/t Ag over 3.1 m core length in hole R-1990-6 (Thomson, 1990), along with an intersection of 0.18% Co, 0.28% Cu and 4.1 g/t Ag over 1 m core length in hole R-2008-02 (Pighin, 2009).
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All but one of the historical drillholes tested a single target in an area about 500 m by 350 m. The Property is approximately 10 km in length and 3.5 km in width and contains at least four untested anomalous soil +/- rock geochemical targets.
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Sediment hosted Co-Cu-Ag mineralization is similar in style, age and host rocks to mineralization at Jervois Mining Ltd.'s Idaho Cobalt project and Hecla's Revett Formation hosted mineralization near Troy, Montana.
The Property has yielded significant historical cobalt, copper and silver results and presents an opportunity to discover battery and electrification metals as the world shifts to electric vehicles, sustainable practices and greener alternatives. The macroeconomic outlook for battery metals such as Co and Cu remains strong with the ongoing shift to electric vehicles. It is estimated that the battery sector accounts for approximately 57% of current Co demand; this is expected to grow over the next five years to 72%, and will require an additional 100,000 tonnes/annum of Cobalt to meet demand.1
The technical content of this news release and the Company's technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange, with 93 million shares issued, focused on developing its over 160,000 acres of precious and base metals properties in southeastern British Columbia. Grizzly is run by a highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, President
Tel: 780 693 2242
For further information, please visit our website at www.grizzlydiscoveries.com or contact:
Chris Beltgens
Corporate Development
Tel: 604 347 9535
Email: cbeltgens@grizzlydiscoveries.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
_____________________
1 Cobalt's Price Rises Highlight Shift to Battery-Driven Pricing Dynamics, Benchmark Mineral Intelligence, November 19th, 2021
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91508
In this article, we discuss the 15 stocks that will double in 2021. If you want to skip our detailed analysis of these stocks, go directly to the 5 Stocks that Will Double In 2021.
The economy of 2020 was closely linked to the COVID-19 pandemic. However, the vaccine rollout at the turn of the year buoyed hopes of a return to normalcy and an accelerated recovery from the virus. Resort companies, construction firms, and even mining stocks registered a dramatic increase in price over the first few months of the year as it appeared that vaccines were effective and the virus spread slowed. In the past few days, the spread of the Delta variant of the virus, resistant to vaccines, has once again raised fears of prolonged lockdowns.
In the midst of this delicately poised situation, investors who learned their lessons from the March 2020 lockdown, have already started looking for new and exciting opportunities in the market that will offer them handsome returns even in the bear market, dumping cyclical stocks in the process. Some of the firms that these investors should take note of as they navigate the changing market dynamics include ViacomCBS Inc. (NASDAQ: VIAC), Zynga Inc. (NASDAQ: ZNGA), and MongoDB, Inc. (NASDAQ: MDB), among others.
Companies working in the technology, biopharma, and ecommerce industries are all expected to weather the impact of the coronavirus lockdown and perform better than expected if the economy does fully reopen. Some of these companies, most of which beat market expectations on revenue and earnings per share in the first quarter, are discussed below. It has become very hard for even the market experts to keep up with the ever-evolving world of stocks. Tech-led disruption has been a key factor in this regard.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 15 stocks that will double in 2021. These rankings are based on the list of firms that finance websites such as Investor Place, The Motley Fool, and Nasdaq think will double this fiscal year. After the initial selection, these companies were then further classified according to analyst ratings and basic business fundamentals. Only firms that have positive ratings or have had their price targets raised by investment advisories in the past few weeks were considered. Special importance was assigned to the recent earnings results of each firm, with those that beat market estimates on earnings per share and revenue featuring heavily. In addition, hedge fund sentiment was also included as a classifier in a bid to improve the reliability of the list. Even after all this exhaustive research, it is pertinent to mention that it is very difficult to predict which stocks will double in a fiscal year. Even market experts with years of academic and field experience find it hard to predict market direction at any given time. However, by filtering out the best of the best based on the metrics available, investors can better focus their energies.
Stocks that Will Double In 2021
15. Allakos Inc. (NASDAQ: ALLK)
Number of Hedge Fund Holders: 13
Allakos Inc. (NASDAQ: ALLK) is a clinical stage biopharmaceutical firm. It is placed fifteenth on our list of 15 stocks that will double in 2021. The stock has returned 1.4% to investors over the past year. The firm is based in California. On May 23, investment advisory Jefferies identified the stock as one on its radar as biotech prices picked up and mergers and acquisitions increased following a slow start to the year. The advisory said biotech firms would start to finalize deals in the next three to five months.
On May 15, investment advisory Cowen initiated coverage of Allakos Inc. (NASDAQ: ALLK) stock with an Outperform rating. Joseph Thome, an analyst at the advisory, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm Redmile Group is a leading shareholder in Allakos Inc. (NASDAQ: ALLK) with 2.4 million shares worth more than $277 million.
Just like ViacomCBS Inc. (NASDAQ: VIAC), Zynga Inc. (NASDAQ: ZNGA), and MongoDB, Inc. (NASDAQ: MDB), Allakos Inc. (NASDAQ: ALLK) is one of the stocks that could double in 2021.
14. Funko, Inc. (NASDAQ: FNKO)
Number of Hedge Fund Holders: 14
Funko, Inc. (NASDAQ: FNKO) is ranked fourteenth on our list of 15 stocks that will double in 2021. The company’s shares have returned 230% to investors over the past year. The firm markets pop culture consumer products. It is headquartered in Washington. In earnings results for the first quarter, posted on May 6, the firm reported earnings per share of $0.24, beating estimates by $0.13. The revenue over the period was more than $189 million, up 38% year-on-year.
On May 13, investment advisory Bank of America upgraded Funko, Inc. (NASDAQ: FNKO) stock to Buy from Underperform, raising the price target to $30 from $12, noting the firm represented a significant long-term opportunity for investors.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Woodson Capital Management is a leading shareholder in Funko, Inc. (NASDAQ: FNKO) with 3 million shares worth more than $59 million.
13. Paramount Group, Inc. (NYSE: PGRE)
Number of Hedge Fund Holders: 17
Paramount Group, Inc. (NYSE: PGRE) stock has returned 34% to investors over the past year. It is placed thirteenth on our list of 15 stocks that will double in 2021. The firm operates a real estate investment trust that deals exclusively in high-class properties in premier business districts. On July 27, the firm posted earnings for the second quarter, reporting FFO of $0.22, beating market estimates by $0.02. The revenue over the period was over $182 million, up more than 6% year-on-year.
On June 25, investment advisory Deutsche Bank kept a Hold rating on Paramount Group, Inc. (NYSE: PGRE) stock but raised the price target to $12 from $11, noting the firm offered potential in the post-pandemic economy.
At the end of the first quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $135 million in Paramount Group, Inc. (NYSE: PGRE), down from 18 in the preceding quarter worth $68 million.
Alongside ViacomCBS Inc. (NASDAQ: VIAC), Zynga Inc. (NASDAQ: ZNGA), and MongoDB, Inc. (NASDAQ: MDB), Paramount Group, Inc. (NYSE: PGRE) is one of the stocks that could double in 2021.
12. BHP Group (NYSE: BHP)
Number of Hedge Fund Holders: 18
BHP Group (NYSE: BHP) is ranked twelfth on our list of 15 stocks that will double in 2021. The stock has offered investors returns exceeding 43% over the course of the past year. The firm is based in Australia and has interests in the natural resources business. On July 21, the firm announced that it had signed a deal with electric carmaker Tesla to provide the latter with the metal nickel that is used in numerous EV products, including batteries. The financial terms of the deal were not disclosed.
On July 8, investment advisory Berenberg upgraded BHP Group (NYSE: BHP) stock to Buy from Hold, raising the price target to 2,700 GBp from 2,200 GBp, noting that the firm had potential upside with regards to final dividend this year.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE: BHP) with 7.9 million shares worth more than $553 million.
11. Genpact Limited (NYSE: G)
Number of Hedge Fund Holders: 23
Genpact Limited (NYSE: G) is a Bermuda-based business process outsourcing firm. It is placed eleventh on our list of 15 stocks that will double in 2021. The company’s shares have offered investors returns exceeding 22% over the course of the past twelve months. On May 10, the firm posted earnings for the first quarter, reporting earnings per share of $0.59, beating market predictions by $0.11. The revenue over the period was $946 million, up more than 2.5% compared to the revenue over the same period last year.
In earnings results for the first quarter, posted on May 10, Genpact Limited (NYSE: G) reported earnings per share of $0.59, beating market predictions by $0.11. The revenue over the period was more than $946 million, up 2.5% year-on-year.
At the end of the first quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $271 million in Genpact Limited (NYSE: G), down from 31 in the preceding quarter worth $340 million.
In addition to ViacomCBS Inc. (NASDAQ: VIAC), Zynga Inc. (NASDAQ: ZNGA), and MongoDB, Inc. (NASDAQ: MDB), Genpact Limited (NYSE: G) is one of the stocks that could double in 2021.
In its Q3 2020 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Genpact Limited (NYSE: G) was one of them. Here is what the fund said:
“Long-time holding Genpact was sold after the NAV discount narrowed, and due to strong performance, it was no longer a small-cap company. The investment provided handsome returns to Fund shareholders over the years, but given its market cap, valuation, and other opportunities available, selling the position and recycling the capital seemed prudent.”
10. Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH)
Number of Hedge Fund Holders: 23
Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH) is ranked tenth on our list of 15 stocks that will double in 2021. The firm makes and sells biopharma products and is headquartered in Waltham. On June 30, the firm announced that it had administered the first dose of a new cancer drug to a patient in the early-stage trial of DCC-3116. Earlier in May, the company had posted earnings for the first quarter, comfortably beating market predictions on revenue and earnings per share for the first quarter.
On March 30, investment advisory Credit Suisse initiated coverage of Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH) stock with an Outperform rating and a price target of $78, appreciating the pipeline assets of the firm that offered great potential.
At the end of the first quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $511 million in Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH), down from 36 in the previous quarter worth $673 million.
9. Affimed N.V. (NASDAQ: AFMD)
Number of Hedge Fund Holders: 23
Affimed N.V. (NASDAQ: AFMD) is placed ninth on our list of 15 stocks that will double in 2021. The company’s shares have returned 92% to investors in the past twelve months. The firm is a German biopharma company focusing on cancer immunotherapies. On July 1, the firm posted earnings for the first quarter, reporting earnings per share of -€0.01, beating market estimates by €0.09. The revenue over the period was €11.6 million, up more than 120% compared to the revenue over the same period last year and beating estimates by €2.4 million.
On April 12, investment advisory BMO Capital maintained an Outperform rating on Affimed N.V. (NASDAQ: AFMD) stock and raised the price target to $15 from $12, highlighting recent positive results from studies of drugs being developed by the company.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Consonance Capital Management is a leading shareholder in Affimed N.V. (NASDAQ: AFMD) with 6 million shares worth more than $47 million.
Just like ViacomCBS Inc. (NASDAQ: VIAC), Zynga Inc. (NASDAQ: ZNGA), and MongoDB, Inc. (NASDAQ: MDB), Affimed N.V. (NASDAQ: AFMD) is one of the stocks that could double in 2021.
8. Nomad Foods Limited (NYSE: NOMD)
Number of Hedge Fund Holders: 25
Nomad Foods Limited (NYSE: NOMD) stock has returned 16% to investors in the past year. It is ranked eighth on our list of 15 stocks that will double in 2021. The company makes and sells frozen foods and is based in the United Kingdom. On May 6, the firm posted earnings for the first quarter, reporting earnings per share of €0.47, beating market estimates by €0.08. The revenue over the period was €707 million, up 2% compared to the revenue over the same period last year and beating estimates by over €5 million.
On March 30, investment advisory Deutsche Bank maintained a Buy rating on Nomad Foods Limited (NYSE: NOMD) stock and raised the price target to $35 from $32, appreciating a decision of the firm to purchase a frozen foods business.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Nomad Foods Limited (NYSE: NOMD) with 4.6 million shares worth more than $128 million.
In its Q4 2020 investor letter, FAM Funds, an asset management firm, highlighted a few stocks and Nomad Foods Limited (NYSE: NOMD) was one of them. Here is what the fund said:
“The proceeds(from a sold equity) were primarily invested into a new idea — Nomad Foods (NOMD), a producer of branded frozen food products in Europe. Product categories include fish, vegetables, and meat substitutes. Management’s plan is to continually improve the brands they control while seeking opportunities to buy and upgrade similar companies. In the past, key members of senior management pursued this strategy at other businesses and created significant returns for shareholders. As COVID-19 rolled across Europe, Nomad became one of the few beneficiaries of the pandemic as consumers stopped visiting restaurants and increasingly ate at home.”
7. TechnipFMC plc (NYSE: FTI)
Number of Hedge Fund Holders: 25
TechnipFMC plc (NYSE: FTI) is a United Kingdom-based oil and gas firm. It is placed seventh on our list of 15 stocks that will double in 2021. The company’s shares have offered investors returns exceeding 32% over the course of the past year. On July 21, the firm posted earnings for the second quarter, reporting earnings per share of -$0.06, just missing estimates by $0.05. The revenue over the period was more than $1.6 billion, up over 3% compared to the revenue over the same period last year.
On June 17, investment advisory Cowen reiterated an Outperform rating on TechnipFMC plc (NYSE: FTI) stock and raised the price target to $12 from $11, seeing an upside to orders and estimates for the company in the coming months.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in TechnipFMC plc (NYSE: FTI) with 22.9 million shares worth more than $177 million.
Alongside ViacomCBS Inc. (NASDAQ: VIAC), Zynga Inc. (NASDAQ: ZNGA), and MongoDB, Inc. (NASDAQ: MDB), TechnipFMC plc (NYSE: FTI) is one of the stocks that could double in 2021.
In its Q1 2020 investor letter, Antipodes Partners, an asset management firm, highlighted a few stocks and TechnipFMC plc (NYSE: FTI) was one of them. Here is what the fund said:
“We also added to TechnipFMC as its valuation became increasingly attractive. While the near-term outlook for service companies is challenged, Technip will be somewhat protected by its superior backlog and strong balance sheet.”
6. Revolve Group, Inc. (NYSE: RVLV)
Number of Hedge Fund Holders: 29
Revolve Group, Inc. (NYSE: RVLV) is ranked sixth on our list of 15 stocks that will double in 2021. The stock has offered investors returns exceeding 324% over the course of the past twelve months. The firm markets fashion apparel online and is based in California. The company posted earnings for the first quarter on May 6, reporting earnings per share of $0.30, beating estimates by $0.17. The revenue over the period was more than $178 million, up 22% year-on-year and beating estimates by $21 million.
On June 29, investment advisory B Riley maintained a Buy rating on Revolve Group, Inc. (NYSE: RVLV) stock and raised the price target to $80 from $58, appreciating the growth of online footwear retailers that was expected to continue in the near future.
At the end of the first quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $256 million in Revolve Group, Inc. (NYSE: RVLV), up from 24 in the preceding quarter worth $182 million.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Revolve Group, Inc. (NYSE: RVLV) was one of them. Here is what the fund said:
“Revolve is a leading, next-generation online retailer of apparel, accessories, and beauty for fashion-forward people. During the pandemic, Revolve pivoted its offerings and strategy to adapt to the new normal. The company expanded into adjacent categories like beauty, activewear, and intimates, enabling it to serve its customers’ more immediate needs, increase wallet share, and touch more aspects of their lives. This strategy shift was a success. The company delivered record profitability and free cash flow during Q4 2020.
The leadership team intends to use this strong position to prioritize several key strategic investments as the world recovers from COVID-19, including strengthening their Owned Brands portfolio, expanding marketing, and accelerating brand building around the globe. The company reported a record high Net Promoter Score (NPS) for 2020. In geographies where COVID-19 is considered generally under control, the company has seen a return of customer demand for their traditional product categories as well.”
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(Adds statement from Lithium Americas)
By Ernest Scheyder
July 28 (Reuters) – A U.S. federal judge ruled on Wednesday that Native American tribes may join a lawsuit seeking to block Lithium Americas Corp's proposed Thacker Pass mine in Nevada, the latest attempt to halt development of what could become one of the largest U.S. producers of the electric vehicle battery metal.
Four environmental groups sued to block the mining project earlier this year, arguing it could harm sage grouse and other wildlife. But those groups did not focus their arguments on potential harm to Native American sites.
Given that, Chief Judge Miranda Du of the U.S. District Court for Nevada said the Reno-Sparks Indian Colony and Atsa koodakuh wyh Nuwu/People of Red Mountain may join the lawsuit as plaintiffs to argue their belief the project would damage religious and historical sites. The judge said adding new plaintiffs should not affect the case's timeline.
"This case is still in its early stages," Du said in the nine-page ruling.
Environmentalists lost the case's first battle last week when Du denied their request to block minor archaeological digging while she considers the broader question of whether former President Donald Trump's administration erred when it approved the entire project in January.
The tribes on Thursday plan to effectively make the same request as the environmentalists, but focus their argument on the perceived threat to a site they say holds bones of their ancestors and should not be disturbed.
Regardless, no digging can take place until the U.S. Bureau of Land Management issues an Archeological Resources Protection Act permit. The agency told Reuters it has no timeline to issue the permit, but does not expect to do so before at least the second week of August.
Lithium Americas said it was pleased the judge decided not to alter the case's original timeline.
"We are committed to ensuring that the required historic preservation work is carried out appropriately and respectfully," spokesperson Tim Crowley said. (Reporting by Ernest Scheyder; Editing by Leslie Adler)
Investors are always looking for stocks that are poised to beat at earnings season and The Mosaic Company MOS may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Mosaic is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for MOS in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.03 per share for MOS, compared to a broader Zacks Consensus Estimate of $1.01 per share. This suggests that analysts have very recently bumped up their estimates for MOS, giving the stock a Zacks Earnings ESP of +2.23% heading into earnings season.
The Mosaic Company Price and EPS Surprise
The Mosaic Company price-eps-surprise | The Mosaic Company Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that MOS has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Mosaic, and that a beat might be in the cards for the upcoming report.
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The Mosaic Company MOS is set to release second-quarter 2021 results on Aug 2, after the closing bell. Its second-quarter results are likely to reflect the benefits of higher prices and demand for phosphate and potash.
The fertilizer maker delivered an earnings surprise of 132.8%, on average, over the trailing four quarters. It posted an earnings surprise of 14% in the last reported quarter.
Shares of Mosaic have rallied 118.1% in the past year compared with 61.5% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Mosaic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Mosaic is +2.23%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $1.01. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mosaic currently carries a Zacks Rank #3.
What Do the Estimates Indicate?
The Zacks Consensus Estimate for Mosaic’s second-quarter consolidated sales is currently pegged at $2,928 million, which calls for an increase of 43.2% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $1,189 million, which calls for an increase of 55.8% year over year.
Moreover, the consensus mark for net sales in the Potash segment is currently pinned at $664 million, which suggests an increase of 19.6% year over year.
The Zacks Consensus Estimate for net sales in the Mosaic Fertilizantes segment is currently pegged at $1,230 million, which calls for a rise of 56.3% year over year.
Some Factors at Play
Mosaic is expected to have benefited from higher demand across its markets and increased prices in the second quarter. It is likely to have gained from higher sales volumes in Phosphates and Potash units in the quarter.
The company, in its first-quarter call, said that it expects to realize a roughly $80-$90 per ton improvement in realized prices in Phosphates on a sequential comparison basis in the second quarter. Moreover, it expects to achieve a $20-$30 per ton sequential increase in average realized prices in Potash in the second quarter.
Higher crop commodity prices and healthy farm economics are driving demand for fertilizers globally. Global phosphate markets remain robust on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels.
The company’s actions to improve its operating cost structure through transformation plans are also expected to have aided its profitability in the to-be-reported quarter. Transformational savings are also likely to have supported margins in the Mosaic Fertilizantes segment.
The Mosaic Company Price and EPS Surprise
The Mosaic Company price-eps-surprise | The Mosaic Company Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
LyondellBasell Industries N.V. LYB, scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical Corporation WLK scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #1.
Eastman Chemical Company EMN, scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
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Westlake Chemical Corporation (WLK) : Free Stock Analysis Report
Eastman Chemical Company (EMN) : Free Stock Analysis Report
The Mosaic Company (MOS) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Billiton (BBL). BBL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.51, while its industry has an average P/E of 7.34. Over the past year, BBL's Forward P/E has been as high as 14.06 and as low as 5.72, with a median of 10.05.
We should also highlight that BBL has a P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.52. Within the past 52 weeks, BBL's P/B has been as high as 1.32 and as low as 0.78, with a median of 1.13.
These are just a handful of the figures considered in Billiton's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBL is an impressive value stock right now.
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BHP Billiton PLC (BBL) : Free Stock Analysis Report
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European markets were mixed on Wednesday as earnings season kicked off in earnest, with a slew of banks reporting results alongside other big hitters.
In London the FTSE 100 (^FTSE) was up 0.3% by the closing bell, having seen few changes throughout the day. Germany's DAX (^GDAXI) was up 0.3% and France's CAC (^FCHI) headed 1% higher following a day of losses.
Investors held their nerve on an interesting day of trade with earning reports from Metro Bank (MTRO.L), Santander (SAN.MC), Barclays (BARC.L), Aston Martin (AML.L), GlaxoSmithKline (GSK.L), ITV (ITV.L), Deutsche Bank (DB), and Rio Tinto (RIO.L).
In the US, stocks made muted moves by the end of the day in London following some big-hitting tech earnings the day before. The S&P 500 (^GSPC) was 0.1% higher, the Dow (^DJI) was down 0.1% and the tech-heavy Nasdaq (^IXIC) rose 0.6%.
Apple (AAPL) and Google parent Alphabet (GOOGL) both reported earnings that beat Tuesday night's expectations.
Investors in the US will be pulled in different directions later on Wednesday due to the end of the Federal Reserve's policy meeting.
Read more: Results round-up: What you need to know as earnings season kicks off
“It’s not enough to be making money now, investors need to know companies have a clear plan to make money tomorrow," said Danni Hewson, financial analyst at AJ Bell. "It’s been fascinating to watch share movements over the past couple of weeks as earnings season’s delivered day after day of stellar results.
"But this quarter is skewed, pandemic winners have probably reached peak boom and pandemic losers have yet to show turnaround growth. For Q2 more than ever it’s the outlook that’s been scrutinised, how well have bosses transmitted their future plans and how confident are shareholders."
Meanwhile, it was a mixed day of trade in Asia, following a heavy selloff the day before due to regulatory action in China. The Hang Seng (^HSI) reversed some of its losses to the tune of 0.9%, the SSE Composite (000001.SS) continued downward, and Japan's Nikkei (^N225) lost 1.4%.
On Monday, the Hang Seng had slid to its lowest level since May 2020, as news reverberated that Beijing was cracking down on parts of the tech and education industries.
According to the new reforms, these companies are not permitted to make profits or participate in stock markets in order to raise capital.
Watch: What are SPACs?
In the latest trading session, Mosaic (MOS) closed at $30.49, marking a +1.8% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%.
Prior to today's trading, shares of the fertilizer maker had lost 2.76% over the past month. This has lagged the Basic Materials sector's gain of 2.77% and the S&P 500's gain of 2.91% in that time.
Investors will be hoping for strength from MOS as it approaches its next earnings release, which is expected to be August 2, 2021. On that day, MOS is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 818.18%. Meanwhile, our latest consensus estimate is calling for revenue of $2.93 billion, up 43.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.64 per share and revenue of $11.54 billion. These totals would mark changes of +328.24% and +32.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MOS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 15.56% higher within the past month. MOS is currently a Zacks Rank #3 (Hold).
Investors should also note MOS's current valuation metrics, including its Forward P/E ratio of 8.23. Its industry sports an average Forward P/E of 13.97, so we one might conclude that MOS is trading at a discount comparatively.
Also, we should mention that MOS has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Fertilizers was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zacks Investment Research
(Bloomberg) — Union leaders at Escondida are calling on workers to reject owner BHP Group’s final wage offer, raising the possibility of a strike at the world’s largest copper mine at a time of tight global supplies and high prices.
An offer delivered at the end of regular wage talks in Chile falls short of worker demands, with the company pushing for longer hours in a bid to boost productivity and profit, the union said in a statement Wednesday. The 2,330 members will vote on the offer through July 31.
A strike is “the only tool left to workers in this scenario to press for an urgent rectification in the way things are done by management,” the union said. “The responsibility to avoid a serious conflict is entirely in the hands of the transnational BHP.”
While Chilean labor rules give either side the option to seek mediation before a strike could begin, the union has a track record of following through: In 2017, it roiled the copper market with a 44-day stoppage. A disruption at a mine that last year churned out 1.2 million metric tons would tighten supplies of the metal used in wiring just as a global economic recovery pushes up demand.
High metal prices are prompting host nations to seek a bigger share of the mining windfall, with Chilean lawmakers discussing a royalty bill as part of a push to address lingering inequalities in the country. Mining companies are striving to keep their labor costs in check in a cyclical business and as ore quality deteriorates and prices of inputs start to rise.
While terms of the Escondida offer weren’t released, the union is demanding an additional bonus equivalent to 1% of dividends paid to the mine’s owners as recognition of sacrifices made by workers, especially during the pandemic.
“The offer proposed by the company improves current conditions and incorporates new benefits in matters highly valued by workers,” BHP said in a statement. “This was built based on conversations held with Union No. 1 and reflects the intention of the company to build an agreement that is mutually beneficial, based on dialog and mutual cooperation.”
(Adds company comment in final paragraph)
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(Bloomberg) — Rio Tinto Group, the world’s biggest iron ore miner, reported its highest-ever interim profit and will pay $9.1 billion in dividends as the company and its global rivals cash in on this year’s commodities rally.
Rio is the first of the majors to post earnings, kicking off a reporting season that’s expected to see record results across the board. The industry has been one of the biggest beneficiaries from the world’s efforts to emerge from the pandemic. The trillions of dollars poured into recovery packages have ignited demand for commodities like iron ore and copper, driving prices sharply higher and sending inflation pressures rippling through the global economy.
Wednesday’s results are also the first period under the leadership of new Chief Executive Officer Jakob Stausholm, who was appointed after Jean-Sebastien Jacques left the company because of a backlash over Rio’s destruction of an ancient Aboriginal site last year. The surge in commodity prices means the new boss comes in on a high note for Rio, even as the company grapples with a slew of production setbacks that have dogged its operations in recent years.
Disruptions caused by Covid, and especially the company’s ability to move workers to its sites, added to existing problems in the first half, especially around the development of a copper project in Mongolia and at its key profit-driving iron ore mines in Western Australia. Rio’s copper business has also seen production fall as Covid takes its toll.
“In the first half we experienced too much operation instability. We have to sharpen the consistency of our performance,” the CEO said on a media call. “While today’s results clearly demonstrate the underlying quality of our asset base, our operational performance clearly is not where it has been in the past or where we want it to be.”
Stausholm also sounded a cautious note on the outlook for commodities demand in top consumer China.
“The long-term potential for China is still intact but we probably have seen a non-sustainable high level of industrial development in some of the months in the first half of this year,” he said on a call with reporters.
Rio’s shares slipped 0.6% in London, in line with a wider decline among most of its peers.
The company reported first-half underlying earnings more than doubled to $12.2 billion from the same period last year as prices for iron ore and copper surged. The half-year payout — which includes a special dividend of $3 billion — is more than the mining giant returned to shareholders for the whole of 2020 and higher than analysts forecast.
While Rio’s paying out record amounts to shareholders, the company signaled this week it’s also keen to invest in growing production in key commodities — particularly those that will benefit from the world’s shift toward green energy.
The company announced Tuesday it plans to spend $2.4 billion building a lithium mine in Serbia. While it’s the first big move by a mining major into lithium, used in rechargeable batteries, the investment reflects an ongoing push by the world’s biggest mining companies into “future facing” commodities like battery metals or fertilizer, at the same time that the industry is moving to get out of fossil fuels.
“Rio appears to be shifting from austerity and capital returns to more of a focus on growth,” Jefferies analyst Christopher LaFemina wrote in a note. “While Rio had some operational issues in the period, the big picture here is that these are stellar financial results.”
(Updates with comments from CEO in fifth paragraph.)
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RIO earnings call for the period ending June 30, 2021.
July 28 (Reuters) – A U.S. federal judge ruled on Wednesday that Native American tribes may join a lawsuit seeking to block Lithium Americas Corp's proposed Thacker Pass mine in Nevada, the latest attempt to halt development of what could become one of the largest U.S. producers of the electric vehicle battery metal.
The Reno-Sparks Indian Colony and Atsa koodakuh wyh Nuwu/People of Red Mountain will effectively become co-plaintiffs in a lawsuit filed earlier this year against the project by four environmental groups. The tribes plan to file an injunction request on Thursday in an attempt to temporarily halt excavation at the mine site. (Reporting by Ernest Scheyder; Editing by Leslie Adler)
Compass Minerals (CMP) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2021. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This minerals producer is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -250%.
Revenues are expected to be $180.55 million, down 29.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Compass?
For Compass, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Compass will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Compass would post earnings of $0.72 per share when it actually produced earnings of $0.95, delivering a surprise of +31.94%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Compass doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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Image source: The Motley Fool. Israel Chemicals Limited Ordinary Shares (NYSE: ICL)Q2 2021 Earnings CallJul 28, 2021, 8:30 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorLadies and gentlemen, thank you for standing by, and welcome to the ICL analysts conference call.
In this article you are going to find out whether hedge funds think BHP Group (NYSE:BHP) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
Is BHP Group (NYSE:BHP) a first-rate investment now? Investors who are in the know were reducing their bets on the stock. The number of long hedge fund bets fell by 2 in recent months. BHP Group (NYSE:BHP) was in 18 hedge funds' portfolios at the end of March. The all time high for this statistic is 24. Our calculations also showed that BHP isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 20 hedge funds in our database with BHP positions at the end of the fourth quarter.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, pet market is growing at a 7% annual rate and is expected to reach $110 billion in 2021. So, we are checking out the 5 best stocks for animal lovers. We go through lists like the 15 best Jim Cramer stocks to identify the next Tesla that will deliver outsized returns. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we're going to check out the latest hedge fund action encompassing BHP Group (NYSE:BHP).
Do Hedge Funds Think BHP Is A Good Stock To Buy Now?
At the end of March, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -10% from the previous quarter. On the other hand, there were a total of 18 hedge funds with a bullish position in BHP a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Fisher Asset Management was the largest shareholder of BHP Group (NYSE:BHP), with a stake worth $553.8 million reported as of the end of March. Trailing Fisher Asset Management was Arrowstreet Capital, which amassed a stake valued at $114.3 million. Renaissance Technologies, CQS Cayman LP, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position CQS Cayman LP allocated the biggest weight to BHP Group (NYSE:BHP), around 2.79% of its 13F portfolio. Hourglass Capital is also relatively very bullish on the stock, earmarking 1.58 percent of its 13F equity portfolio to BHP.
Due to the fact that BHP Group (NYSE:BHP) has witnessed declining sentiment from hedge fund managers, logic holds that there was a specific group of money managers who were dropping their positions entirely heading into Q2. Intriguingly, Simon Sadler's Segantii Capital dumped the largest position of all the hedgies watched by Insider Monkey, valued at close to $49.4 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold's LMR Partners was right behind this move, as the fund dumped about $24.7 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q2.
Let's also examine hedge fund activity in other stocks similar to BHP Group (NYSE:BHP). These stocks are McDonald's Corporation (NYSE:MCD), Pinduoduo Inc. (NASDAQ:PDD), Wells Fargo & Company (NYSE:WFC), Danaher Corporation (NYSE:DHR), Medtronic plc (NYSE:MDT), Novo Nordisk A/S (NYSE:NVO), and Costco Wholesale Corporation (NASDAQ:COST). This group of stocks' market values are closest to BHP's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MCD,67,3783829,5 PDD,56,6293871,2 WFC,96,7454581,-3 DHR,81,5796963,0 MDT,65,3627546,6 NVO,23,2929727,0 COST,56,4014769,-5 Average,63.4,4843041,0.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 63.4 hedge funds with bullish positions and the average amount invested in these stocks was $4843 million. That figure was $874 million in BHP's case. Wells Fargo & Company (NYSE:WFC) is the most popular stock in this table. On the other hand Novo Nordisk A/S (NYSE:NVO) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks BHP Group (NYSE:BHP) is even less popular than NVO. Our overall hedge fund sentiment score for BHP is 25.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Hedge funds dodged a bullet by taking a bearish stance towards BHP. Our calculations showed that the top 10 most popular hedge fund stocks returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.5% in 2021 through July 23rd but managed to beat the market again by 10.1 percentage points. Unfortunately BHP wasn't nearly as popular as these 5 stocks (hedge fund sentiment was very bearish); BHP investors were disappointed as the stock returned 10.1% since the end of the first quarter (through 7/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Investors looking for stocks in the Mining – Miscellaneous sector might want to consider either Rio Tinto (RIO) or BHP (BHP). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Rio Tinto is sporting a Zacks Rank of #1 (Strong Buy), while BHP has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RIO has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
RIO currently has a forward P/E ratio of 5.33, while BHP has a forward P/E of 7.61. We also note that RIO has a PEG ratio of 1.25. 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. BHP currently has a PEG ratio of 1.84.
Another notable valuation metric for RIO is its P/B ratio of 2.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BHP has a P/B of 2.43.
These are just a few of the metrics contributing to RIO's Value grade of B and BHP's Value grade of C.
RIO has seen stronger estimate revision activity and sports more attractive valuation metrics than BHP, so it seems like value investors will conclude that RIO is the superior option right now.
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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. BHP Group Limited Sponsored (BHP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
BHP Group Limited Sponsored is one of 251 companies in the Basic Materials group. The Basic Materials group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. BHP is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BHP's full-year earnings has moved 44.44% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, BHP has gained about 20.95% so far this year. At the same time, Basic Materials stocks have gained an average of 19.15%. This shows that BHP Group Limited Sponsored is outperforming its peers so far this year.
Looking more specifically, BHP belongs to the Mining – Miscellaneous industry, a group that includes 47 individual stocks and currently sits at #189 in the Zacks Industry Rank. This group has gained an average of 34.92% so far this year, so BHP is slightly underperforming its industry in this area.
Investors in the Basic Materials sector will want to keep a close eye on BHP as it attempts to continue its solid performance.
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LONDON, July 27, 2021–(BUSINESS WIRE)–Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.
The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.
Jadar will produce battery-grade lithium carbonate, a critical mineral used in large scale batteries for electric vehicles and storing renewable energy, and position Rio Tinto as the largest source of lithium supply in Europe for at least the next 15 years. In addition, Jadar will produce borates, which are used in solar panels and wind turbines.
Jadar will be one of the largest industrial investments in Serbia, contributing 1% directly and 4% indirectly to GDP, with many Serbian suppliers involved in the construction of the mine. Rio Tinto is committed to help develop local businesses so that they can support the operation over the coming decades. It will also be a significant employer, creating 2,100 jobs during construction and 1,000 mining and processing jobs once in production.
Rio Tinto Chief Executive Jakob Stausholm said "We have great confidence in the Jadar project and are ready to invest, subject to approvals. Serbia and Rio Tinto will be well-positioned to capture the opportunity offered by rising demand for lithium, driven by the global energy transition and the project will strengthen our offering, particularly to the European market. It could supply enough lithium to power over one million electric vehicles per year1.
"The Jadar deposit and its unique mineral, Jadarite, discovered by Rio Tinto geologists in 2004 contains high-grade mineralisation of boron and lithium, supporting a long-life operation in the first quartile of the cost curve for both products."
"We are committed to upholding the highest environmental standards and building sustainable futures for the communities where we operate. We recognise that in progressing this project, we must listen to and respect the views of all stakeholders."
Rio Tinto continues to work with a wide group of local and global experts across all aspects of the environmental, social and governance impacts and has done so for many years. For example, to date we have finalised 12 environmental studies and more than 23,000 biological, physical and chemical analyses of air and water. This consultation is ongoing and will continue to inform our final submissions for approval.
The Jadar development will include an underground mine with associated infrastructure and equipment, including electric haul trucks, as well as a beneficiation chemical processing plant. To minimise the impact to communities, it will be built to the highest environmental standards, including utilising dry stacking of tailings. This innovative method allows the dry tailings to be progressively reclaimed with vegetation and soil with no need for a tailings dam. Water management will be state of the art with a dedicated facility resulting in approximately 70% of raw water coming from recycled sources or treated mine water.
First saleable production is expected in 2026 at a time of strong market fundamentals with lithium demand forecast to grow 25-35% per annum over the next decade. Following ramp up to full production in 2029, the mine will produce ~58,000 tonnes of lithium carbonate, 160,000 tonnes of boric acid (B2O3 units) and 255,000 tonnes of sodium sulphate2 annually, making Rio Tinto one of the top ten lithium producers in the world. Based on this annual production of lithium carbonate, Rio Tinto aims to produce 2.3 million tonnes of lithium carbonate over the expected 40-year life of mine.
The next steps for the project are seeking an exploitation licence and receipt of regulatory approvals. This includes approval of the environmental impact assessment (EIA) studies, which will shortly be made available to the public for comment. The EIA is required for the commencement of works, with construction targeted to start in 2022.
1 Assuming 60kWh battery size
2 These production targets were previously reported in a release to the Australian Securities Exchange (ASX) dated 10 December 2020, "Rio Tinto declares maiden Ore Reserve at Jadar" (for battery-grade lithium carbonate it was 55,000 tonnes). All material assumptions underpinning the production targets continue to apply and have not materially changed.
This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.
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(Reuters) – BHP Group has made a C$325 million ($258.45 million) approach for Noront Resources, rivaling an offer from Australian mining billionaire Andrew Forrest's Wyloo Metals for the Canadian nickel-copper miner.
The scramble for Noront underscores the race to secure supplies of battery metals among miners ahead of an expected surge in demand due to the rise of electric vehicles.
Noront owns the early-stage Eagle's Nest deposit, billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey's Bay nickel find in the eastern province of Newfoundland and Labrador, with an initial mine life of 11 years.
BHP said on Tuesday its offer valued Noront at C$0.55 per share, representing a premium of 129% to the firm's closing price on May 21, a day before Wyloo unveiled its proposal.
"For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," BHP Chief Development Officer, Johan van Jaarsveld, said in a statement.
Noront said its board has recommended the Anglo-Australian company's offer.
Wyloo Metals, which is Noront's top shareholder with a 23% stake as of December, had in May offered C$0.315 per share for the stock it did not already hold in the company. Noront had adopted a poison pill to stop the takeover.
Wyloo was not immediately available for comment on Tuesday.
BHP's offer also comes after the mining giant moved its exploration headquarters to Canada and said it would almost double exploration spending for base metals within five years.
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)
(Bloomberg) — Rio Tinto Group plans to spend $2.4 billion building a lithium mine in Serbia, in the latest sign that the biggest miners are pushing into metals poised to benefit from the green-energy transition.
The biggest producers are churning out record profits after commodities rallied this year, raising the question of what the industry will do with all the extra cash. Most have been focused on returning money to shareholders through dividends and buybacks — analysts are expecting more big payouts in the coming weeks, including from Rio itself when the world’s second-biggest miner reports financial results on Wednesday.
But there are also signs that the industry is increasingly keen to invest more in growing production of key “future facing” commodities like battery metals or fertilizer. Rio’s announcement marks the first big move by a mining major into lithium, which is used in rechargeable batteries.
Earlier Tuesday, larger rival BHP Group announced plans to buy the owner of a Canadian nickel project — another vital component of the types of batteries that power electric cars or back up renewable energy. Rio in May acquired a stake in a Canadian copper project, while BHP has been building a holding in a company planning to develop a giant copper mine in Ecuador, and is expected to sanction a giant potash project as soon as next month.
It also comes at a time when the biggest miners are looking to shift away from fossil fuels, increasingly shunned by investors. Rio sold its last coal mine in 2019 and is the only major miner to be fossil-fuel free. And its peers are slowly following. Anglo American Plc has agreed to sell its last thermal coal mines, while BHP is in the process of exiting thermal coal and is considering getting out of oil and gas.
Rio has been working on the Jadar project in Serbia for years, and had been expected to make an investment decision this year. The mine will help the company diversify away from iron ore, which dominates its earnings, and will allow it to produce lithium close to the key German carmaking industry.
Rio said on Tuesday that the project is expected to start operating in 2026 and hit full-production in 2029. The investment, which still depends on getting the necessary approvals in Serbia, would make the company a top-10 lithium producer.
Still, there may be obstacles. The Serbian government has promised voters it will hold a referendum on the project, while touting its benefit as a huge growth driver for the Serbian economy. Serbian authorities are opposed to exporting lithium carbonate as raw material for batteries and want to see local production of lithium-based batteries, possibly even electric-vehicles.
“The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition,” Rio said in a statement Tuesday.
(Updates with details throughout)
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(Bloomberg) — Rio Tinto Plc workers went on strike over labor contracts at an aluminum smelter in British Columbia on Sunday, their union said in a statement.
About 900 Rio Tinto workers at smelting facilities in Kitimat were on strike as of 12:01 a.m. local time Sunday, Unifor said in a release posted on the union’s website. The union accused the company of violating existing contracts by using contractors and temporary employees and failing to address concerns over pensions and retiree benefits.
“Our union is fully prepared to defend our members’ rights and protect good jobs in Kitimat now and in the future,” Jerry Dias, Unifor’s national president, said in the release.
Staff and employees required under an order by the B.C. Labour Relations Board have taken on duties to continue operations, Simon Letendre, a Rio Tinto spokesman, said in an email. The company is assessing how the strike will affect aluminum production and will work to limit disruptions. The strike commenced after the current collective labor agreement expired, he said.
“Rio Tinto has made every effort to reach a mutually beneficial agreement through negotiating in good faith with Unifor Local 2301 over the past seven weeks, and will continue to do so,” Letendre said. “Regrettably, the union refused the company’s proposal to request the intervention of a mediator.”
The Canadian smelter has been in operation since 1954 and produced 329,000 metric tons of aluminum in 2020, according to the company website.
(Adds company comments in fourth, fifth paragraphs)
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(Bloomberg) — The world’s biggest mining companies are about to start revealing how much cash they’re churning out from this year’s commodity boom. Look out for record profits followed by eye-watering dividend payouts.
The top-five western diversified miners may have earned a combined $85 billion for the first half of the year, according to analyst estimates, more than double the level from a year ago. Rio Tinto Group, the first to report on Wednesday, is expected to announce $22 billion of profit for the six months, on a par with its total for all of 2020.
The mining sector has been one of the biggest beneficiaries from the world’s efforts to emerge from the pandemic. The trillions of dollars poured into recovery packages have ignited demand for commodities like steel, iron ore and aluminum, driving prices sharply higher and sending inflation pressures rippling through the global economy.
Read more: Record Metals Prices Catapult Mining Profits Beyond Big Oil
And while previous rallies lured the industry into ambitious investment plans to build and expand mines, many producers this time appear content to return their profit windfalls to investors. The two biggest — Rio and larger rival BHP Group — have already been funneling record returns to shareholders.
Each of the group of five majors — which also includes Glencore Plc, Anglo American Plc and Vale SA — are expected to report their biggest-ever earnings for the six months through June, according to average analyst estimates compiled by Bloomberg. Rio could pay out 60% of its underlying earnings, according to some analyst estimates.
“This should be a pretty much stellar set of results all round,” said Ben Davis, an analyst at Liberum Capital. “We’re expecting record dividends from BHP and Rio, while Anglo and Glencore also have the potential to surprise.”
Iron ore has been a big driver of profit for the largest producers. The world’s biggest commodity after oil hit a record in the first-half, and has spent the last three months hovering around $200 a ton, a level not seen in a decade. Steel and copper prices both set fresh records this year, thermal coal has also soared, and even diamonds have had a resurgence.
Some prices have retreated recently amid concerns about rising Covid-19 cases and as China moves to curb rising costs. Yet commodity prices across the board remain historically high for now.
U.S. copper miner Freeport-McMoRan Inc. gave a hint of what to expect when it reported last week. The company has wiped out $5 billion of debt in the last 12 months, hitting its target months ahead of schedule, and setting the stage for an increase in shareholder returns.
Anglo American Platinum Ltd. added to that on Monday. The company, 79% owned by Anglo American, paid out a record dividend of $3.1 billion that equates to 100% of first-half headline earnings.
For the iron ore miners such as Vale, BHP and Rio, it promises to be even better. Demand for the steelmaking ingredient, especially from China, is rampant and supply is constrained. China, which accounts for about half of global steel production, is making a record amount of the metal, while iron ore supply has never recovered from two dam disasters in Brazil.
Of course, the mining companies are not immune to inflation themselves — iron ore operations in Australia are grappling with a sharp rise in labor costs due to worker shortages. And governments in resource-rich countries, especially in Latin America, are also looking at the industry as a source of extra revenue after the commodities rally.
For now though, the miners are cashing in.
(Updates with Anglo American Platinum dividend in 10th paragraph.)
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FORT DAUPHIN, Madagascar, July 26, 2021–(BUSINESS WIRE)–Rio Tinto has signed a power purchasing agreement for a new renewable energy plant to power the operations of its QMM ilmenite mine in Fort Dauphin, Southern Madagascar.
This project, which uses solar and wind energy, will significantly contribute towards Rio Tinto’s operations in Madagascar achieving its carbon neutral objective by 2023. The project is part of a broader initiative to reduce the ilmenite mine’s environmental footprint which includes programmes that focus on emissions reduction, waste and water management, carbon sequestration, ecological restoration and reforestation.
The renewable energy plant, to be built, owned and operated by independent power producer, CrossBoundary Energy (CBE), over a 20-year period, will consist of an 8 MW solar facility and a 12 MW wind energy facility to power mining and processing operations. There will also be a lithium-ion battery energy storage system of up to 8.25 MW as reserve capacity to ensure a stable and reliable network.
It will supply all of QMM’s electricity demand during peak generation times, and up to 60 percent of the operations’ annual electricity consumption. QMM will replace the majority of the power it currently supplies to the town of Fort Dauphin and the community of around 80,000 people with renewables.
The renewable energy plant will comprise more than 18,000 solar panels and up to nine wind turbines located in the Port Ehoala Park area. Construction is expected to begin this year with the solar plant scheduled to start operations at the beginning 2022. The wind power plant is planned to commence construction early 2022 and become operational by the end of 2022.
QMM President Ny Fanja Rakotomalala said: "This project is a strong example of our commitment with the Government of Madagascar to the sustainable development of the region. On a sunny and windy day, all the electricity needed by QMM and the Fort Dauphin community will be generated by the Malagasy sun and wind. It is a major step forward on our journey towards a truly sustainable mine, that protects and promotes the uniqueness of Madagascar’s environment and benefits the community with reliable and clean electricity."
Secretary General, Ministry of Energy and Hydrocarbons of the Republic of Madagascar, Andriatongarivo Tojonirina Andrisoa, said: "The Government of Madagascar is committed to the energy transition and to setting up Madagascar to be energy independent, as stated in the President’s Initiative pour l’Emergence de Madagascar (IEM). QMM’s renewable energy project, technically ambitious with two installations dedicated to solar and wind, is fully aligned with that vision. It makes Madagascar a global reference point for the use of renewable energy to supply clean, reliable power in the mining sector and other industries, and to the community."
Rio Tinto Minerals Chief Executive Sinead Kaufman said: "With this flagship project, QMM is leading the way at Rio Tinto and in Madagascar in utilizing renewable energy to power mining operations and reduce carbon emissions."
CrossBoundary Energy Co-founder and Managing Partner Matt Tilleard commented: "Emissions from electricity use in mining is estimated to account for around 1% of all greenhouse gases globally. Rio Tinto is leading the way in demonstrating how mines can seize a huge opportunity to reduce these emissions. We are focused on delivering cleaner power to businesses and were therefore able to offer Rio Tinto a flexible, fast, all-equity funding approach, combined with our reliable track record as one of Africa’s largest distributed renewable utilities."
About QIT Madagascar Minerals
QIT Madagascar Minerals (QMM), is a joint venture between Rio Tinto (80%) and the government of Madagascar (20%). It is located near Fort Dauphin in the Anosy region of south-eastern Madagascar, and primarily produces ilmenite which is a major source of titanium dioxide, predominantly used as a white pigment in products such as paints and paper.
QMM also produces zirsill used in the manufacturing ceramic tiles and digital screens, and monazite, a rare earth element, used in renewable energy technologies like high-powered permanent magnets used in wind turbines and electric vehicles.
QMM includes the deep-water Port d’Ehoala, where the raw material is shipped to the Rio Tinto Fer et Titane plant in Canada and processed into titanium dioxide.
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Rio Tinto plc
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Registered in England
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Category: QMM
(Adds background, details from release)
July 26 (Reuters) – Miner Rio Tinto said on Monday it planned to cut production at its BC Works aluminium smelter in Kitimat, Canada to 35% following a strike initiated by the Canadian union Unifor after negotiation talks failed.
Unifor said on Sunday about 900 workers had started strike action at the miner's operations in the western Canadian province of British Columbia, after nearly seven weeks of unproductive talks over proposed changes to workers' retirement benefits and unresolved grievances.
Rio Tinto employs about 1,050 people at the BC Works smelter and Kemano powerhouse, of which the union represents about 900 workers.
The miner, which has been granted an essential services order by the British Columbia Labour Relations Board, said a reduced workforce is also in place to ensure the Kemano hydro-power facility continues to run. [https://refini.tv/2Wf54r0 ] (Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini Ganguli)
MONTREAL, July 26, 2021–(BUSINESS WIRE)–Rio Tinto has begun reducing production at its BC Works aluminium smelter in Kitimat, Canada due to a strike initiated by the Unifor Local 2301 union after negotiations failed to reach a new collective labour agreement.
Production will be reduced to around 35 per cent of the smelter’s 432,000 tonne annual capacity, so that it can safely be operated by staff and employees required under an essential services order granted by the BC Labour Relations Board.
Rio Tinto Aluminium managing director Atlantic Operations Samir Cairae said: "Reducing production will have a significant impact on the business and community, but we are committed to taking the necessary steps to operate safely with a reduced workforce.
"We have made every effort to reach a mutually beneficial agreement through negotiating in good faith over the past seven weeks, including proposing an independent mediator which was rejected by Unifor Local 2301.
"We will continue to look for longer term solutions with the union and work closely with customers and suppliers to minimise disruptions."
A reduced workforce is also in place to ensure the Kemano hydro-power facility continues to run safely.
Rio Tinto employs approximately 1,050 people at the BC Works smelter and Kemano powerhouse, including around 900 employees represented by Unifor Local 2301. The company contributed C$780 million to the economy of British Columbia in 2020.
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Discovered over a century ago, helium was never intended for balloons.
It wasn’t supposed to be a party gas. At the height of the Cold War, the United States recognized its strategic nature and started stockpiling it and controlling supply and pricing at a Federal Helium Reserve in Amarillo, Texas.
Three decades later, in the 1990s, the federal government decided that helium could be sold to private entities.
Now, reports say those reserves have been depleted, and the reserve is slated for shutdown in September, while the United States is taking over 2 billion cubic feet of helium off the market.
For national security, Big Tech, biomedicine and even the space race, the situation may now be nearing critical.
And one junior Canadian explorer who recently scooped up highly prospective helium property in both the U.S. state of Montana and the Canadian province of Alberta is hoping to be part of the change for the course our helium trajectory.
Avanti Energy Inc. (TSX:AVN.V; US OTC:ARGYF) is aiming for the next big commercial helium discovery, and it’s a small-cap stock that could end up rewarding early-in investors significantly, if successful.
And from where we stand, it looks well positioned to take advantage of a critical supply squeeze looming for helium.
Our Tech Future May Depend on Helium
Everything from Big Data, fiber optics and MRIs to astrophysics, space travel and cryogenics relies on helium.
There’s no winning the race against China for global tech dominance without helium.
There might be no winning the space race, either.
Advancements in healthcare could be severely hindered.
You probably wouldn’t be able to get an MRI.
And perhaps most significantly, at least to the masses in the immediate term …
No one would be able to stream TV and movies … or even use a cell phone.
Helium is usually found in natural gas reservoirs and mined as a by-product of natural gas.
This noble gas is so valuable because it’s non-combustible, very unreactive, highly stable and so light that Earth’s gravity cannot hold it. Helium is non-toxic and boils at -268 degrees Celsius–near absolute zero, which is the lowest temperature in the universe. No other element can perform the invaluable act of remaining a liquid at such temperatures.
That’s what makes helium a noble gas that cannot be replaced.
And investors will like the fact that it’s already a hundred times more expensive than natural gas, which sells for around $3 per Mcf.
Helium can sell for as much as $400 Mcf, and isn’t traded like a commodity—yet.
Now, get ready for what looks to us like the supply squeeze of the century. One that could last decades.
There is no better time for a junior explorer to be launching exploration in prospective helium territory.
And it looks like there are no better venues that Alberta—which is already witnessing a helium land rush—and Canada’s Saskatchewan, which is on trend with key areas of Montana.
Fast-Paced Acquisitions
Avanti Energy Inc. (TSX: AVN.V; US OTC: ARGYF) took decisive action in the second quarter of this year, with four major acquisition moves we think are significant.
First, it acquired the license for over 6,000 acres from the Government of Alberta in highly prospective helium territory.
Next, it scooped up another ~2,500 acres in Alberta. Those projects–Knappen and Aden–show helium up to 2% and helium-trapping structures.
Shortly afterwards, Avanti moved on over 60,000 acres in northern Montana, on territory that is said to be on-trend with both Saskatchewan’s helium prospects and Alberta’s.
In mid-April, Avanti moved to acquire the helium license rights to a 12,000-acre land package in Montana. According to reports, that deal should close soon.
In June, Avanti announced intentions to purchase the helium license rights for ~50,000 more acres in Montana. The deal is still being finalized, but initial data shows multiple formations (similar to the Aden project) and data from surrounding wells makes this one even more promising in our perspective: That data showed 1.5%-2.2% helium in the Cambrian and 0.7%-1.7% helium in the Devonian. Again, with high nitrogen levels (up to 96%).
Back in Alberta, at Avanti’s Knappen project, data shows helium concentrations up to 2.18%, with nitrogen up to 98%. Additionally, data shows deep structural features for trapping helium. (Keep in mind that in Alberta, reports say 1% helium is considered a very good concentration.)
At the Aden project, also in Alberta, similar results and helium concentrations have been shown in multiple zones.
For Alberta, it’s great news because the province is reinventing itself: It’s not only going to be about dirty oilsands in the future. The future is critical gas supplies, and Alberta could become a major global hub for helium.
Experienced Explorers Who’ve Been Part Of This Before
The key figures behind Avanti Energy Inc. (TSX: AVN.V; US OTC: ARGYF) are experienced in exploration. And they know discovery, too.
Several team members were involved in giant Encana’s natural gas discovery in Canada’s Montney shale—a play that ended up producing around 300,000 boe/d over 15 years.
One of those key figures is Chris Bakker, Avanti’s CEO who has over 20 years of O&G experience, including with Encana. His expertise in acquisitions, exploration and production has already been tested in the past.
Are Insiders Going All-In on Avanti?
Reports show that insiders have been buying up this stock, and we think that’s always a good sign …
It’s now on analyst radar, too.
Recently, Beacon Securities Limited initiated coverage on Avanti, stating that with the new ~50,000 acres in Montana, Avanti could have “a contiguous land block that may support several years of drilling”.
Beacon also noted that “if successful, numerous development wells would follow with production in H2/22 once facilities are configured and installed”.
But in our view this one could move fast.
On July 12th, following a detailed geophysical review of seismic data, Avanti Energy Inc. (TSXV: AVN) (US OTC PINK: ARGYF) identified three potential drilling locations on its Aden property and says it will now be moving forward with its planned Q3/Q4 drilling program.
Not only did the team’s geophysical review of seismic data confirm a four-way structural close with over 75 meters of relief, ideal for trapping helium, Avanti said it would target multiple horizons showing up to ~95% nitrogen and ~2% helium from multiple adjacent wells and previously abandoned wells on the property.
Not only is Avanti moving fast, but we think the land rush in Alberta is taking on proportions appropriate for a looming helium shortage that could make or break our tech dominance, and much, much more.
Tech resource companies to watch:
As demand for energy continues to explode in a post-pandemic China, CNOOC Limited (NYSE:CEO, TSX:CNU) will likely be one of the biggest winners in this boom. It’s the country’s most significant producer of offshore crude oil and natural gas and may well be one of the most controversial oil stocks for investors on the market. A label that has nothing to do with its operations, however.
Just last month, U.S. regulators announced their intention to de-list Chinese companies from the New York Stock Exchange, going back on their announcement just a few days later. The sustained negative press surrounding Chinese companies, however, has put CNOOC in an uncomfortable position for investors. While many analysts see the company as significantly undervalued, it is still struggling to gain traction in U.S. markets.
Lithium Americas Corp. (NYSE:LAC, TSX:LAC) is one of North America’s most important and successful pure-play lithium companies. With two world-class lithium projects in Argentina and Nevada, Lithium Americas is well-positioned to ride the wave of growing lithium demand in the years to come. It’s already raised nearly a billion dollars in equity and debt, showing that investors have a ton of interest in the company’s ambitious plans, and it will likely continue its promising growth and expansion for years to come.
It’s not ignoring the growing demand from investors for responsible and sustainable mining, either. In fact, one of its primary goals is to create a positive impact on society and the environment through its projects. This includes cleaner mining tech, strong workplace safety practices, a range of opportunities for employees, and strong relationships with local governments to ensure that not only are its employees being taken care of, but locals as well.
Lithium Americas’ efforts have paid off in the market, as well. While many companies across multiple industries struggled last year, Lithium Americas’ stock soared. In February last year, the company’s stock price was sitting at just $5.26, while today it is at $13.32, representing a more than 100% return for investors who bought in just a year ago.
Turquoise Hill Resources Ltd. (NYSE:TRQ, TSX:TRQ) is a key player in Canada’s resource and mineral industry. It is a major producer of coal and zinc, two resources with distinctly different futures. While headlines are already touting the end of coal, zinc is a mineral that will play a key role in the future of energy for years and years to come.
In addition to its zinc operations, Turquoise Hill is also a significant producer of Uranium. Uranium is a key material in the production of nuclear energy, which many analysts are suggesting could be a major component in the global transition to cleaner energy. While the mineral has not seen significant price action in recent years, there are a number of new projects set to come online across the globe in the medium term, which could be a boon to Turquoise Hill, especially as alternative energies gain traction in the marketplace.
Teck Resources (NYSE:TECK, TSX:TECK) could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy, Gold, Silver and Molybdenum assets. It’s even involved in the oil scene! With its free cash flow and a lower volatility outlook for base metals in combination with a growing push for copper and zinc to create batteries, Teck could emerge as one of the year’s most exciting miners.
Though Teck has not quite returned to its January highs, it has seen a promising rebound since April lows. In addition to its positive trajectory, the company has seen a fair amount of insider buying, which tells shareholders that the management team is serious about continuing to add shareholder value. In addition to insider buying, Teck has been added to a number of hedge fund portfolios as well, suggesting that not only do insiders believe in the company, but also the smart money that’s really driving the markets.
Celestica (NYSE:CLS, TSX:CLS), like Magna, is a key company in the lithium boom due to is role as one of the top manufacturers of electronics in the Americas. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy and enough health technology.
Thanks to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and developers.
Like the rest of the market, Celestica fell victim to the massive selloff sparked by the global COVID-19 pandemic, seeing its share price fall into the $2 range in March 2020. Since then, however, the stock price has soared by nearly 400% to its current trading price of $8.11. As the world races towards a greener future, however, the upside potential for Celestica could be even higher.
By. James Burgess
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that prices for helium will significantly increase due to global demand and use in a wide array of industries and that helium will retain its value in future due to the demand increases and overall shortage of supply; that Avanti can pursue exploration of the recently acquired licenses of property in Alberta; that Avanti’s licenses in respect of the Alberta property can achieve drilling and mining success for helium; that Avanti will be able acquire the rights to helium on 12,000 acres of prospective land in Montana pursuant to its announced letter of intent; that Avanti will be able acquire the rights to helium on approximately 50,000 acres of additional prospective land in Montana pursuant to two recently announced binding agreements; that the Avanti team will be able to develop and implement helium exploration models, including their own proprietary models, that may result in successful exploration and development efforts; that historical geological information and estimations will prove to be accurate or at least very indicative of helium; that high helium content targets exist in the Alberta and Montana projects; that results of the recent geophysical review of seismic data used to identify potential drilling targets will provide accurate that result in successful drilling and exploration efforts on the Avanti properties; and that Avanti will be able to carry out its business plans, including timing for drilling and exploration. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that demand for helium is not as great as expected; that alternative commodities or compounds are used in applications which currently use helium, thus reducing the need for helium in the future; that the Company may not fulfill the requirements under its Alberta licenses for various reasons or otherwise cannot pursue exploration on the project as planned or at all; that the Company may not be able to acquire the helium rights to the Montana lands as contemplated in the letter of intent, binding agreements or at all; that the Avanti team may be unable to develop any helium exploration models, including proprietary models, which allow successful exploration efforts on any of the Company’s current or future projects; that Avanti may not be able to finance its intended drilling programs to explore for helium or may otherwise not raise sufficient funds to carry out its business plans; that geological interpretations and technological results based on current data may change with more detailed information, analysis or testing; and that despite promise, results of the recent geophysical review of seismic data used to identify potential drilling targets may be inaccurate or otherwise fail to result in successful drilling and exploration efforts on the Avanti properties, and that there may be no commercially viable helium or other resources on any of Avanti’s properties. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
DISCLAIMERS
This communication is for entertainment purposes only. Never invest purely based on our communication. Oilprice.com and its owners and affiliates (“Oilprice.com”) have not been compensated by Avanti but may in the future be compensated to conduct investor awareness advertising and marketing for TSXV:AVN. The information in this report and on our website has not been independently verified and is not guaranteed to be correct.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares of Avanti and therefore has an additional incentive to see the featured company’s stock perform well. Oilprice is therefore conflicted and is not purporting to present an independent report. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation, nor are any of its writers or owners.
ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock acquisition will or is likely to achieve profits.
Read this article on OilPrice.com
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, July 26, 2021 (GLOBE NEWSWIRE) — Arena Minerals Inc. ("Arena" or the "Company") (TSX-V: AN) is pleased to announce that it has completed the acquisition from Centaur Resources Pty Ltd. ("Centaur") of the Sal de la Puna lithium project which was the subject of its news releases dated March 29, May 26 and June 28, 2021 (the "Centaur Acquisition"), and that it has closed the first tranche of its $10 million subscription receipts private placement announced July 12, 2021.
William Randall, President and Chief Executive Officer of the Company, commented, “With recent developments in the Pastos Grandes basin closing this acquisition secures Arena with a strategic and key land package within a world class basin. Closing the acquisition of Sal de la Puna project as part of the Centaur Acquisition, with the support of our partner Ganfeng Lithium and strategic financing by Lithium Americas, is a transformative event for Arena.”
Private Placement
The Company has closed an initial tranche of its subscription receipts private placement, issuing 42,857,143 subscription receipts to Lithium Americas Corporation ("Lithium Americas") (TSX: LAC; NYSE: LAC) at a price of $0.14 per subscription receipt for aggregate consideration of $6 million. The Company anticipates closing a second tranche for the remainder of the placement shortly, which will include participation by GFL International Co. Ltd., a subsidiary of Ganfeng Lithium Co., Ltd (“Ganfeng Lithium”) (1772.HK; OTCQX: GNENF).
Upon the closing of the Company's share purchase agreement with Centaur Resources Pty Ltd., the subscription receipts were exchanged without payment of additional consideration for units of the Company consisting of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Common Share of the Company at $0.25 for a period of 24 months from the date of issuance. Following the exchange of the subscription receipts, Lithium Americas held 42,857,143 Common Shares and 21,428,571 Warrants.
Sal de la Puna Acquisition
Arena has completed the previously announced acquisition of all of the shares of Centaur Resources Holdings from Centaur, particulars of which are contained in the Company's news releases of May 26 and June 28, 2021. The aggregate consideration for the acquisition was approximately USD $22 million. Through this acquisition, the Company has acquired a 100% interest in the Sal de la Puna lithium brine project, which covers approximately 11,000 hectares of the Pastos Grandes basin located in the Puna region of Salta province, sharing the basin with Millennial Lithium Corp. (TSX-V:ML). Please refer to the Company's previous news releases respecting the Centaur Acquisition for further information respecting the Sal de la Puna project.
As disclosed in the Company's news release of March 29, 2021, the Company took an assignment of the right to acquire Centaur Resources Holdings from LITH-ARG Acquisition LLC ("LITH-ARG") pursuant to a binding MOU. Under the terms of the MOU, LITH-ARG agreed to assign to Arena all right, title and interest in a heads of agreement entitling it to acquire Centaur Resources Holdings in consideration for payment by Arena to LITH-ARG or to its direction of 49,345,314 common shares of Arena, 18,384,519 share purchase warrants each entitling the holder to acquire one common share of Arena at a price of $0.16 cents per common share for a period of 24 months following closing and a cash payments of $1.98-million (U.S.). These payments were made concurrently with the closing of the Centaur Acquisition. The shares issued in connection with the binding MOU are subject to a four month plus one day hold period.
Arena agreed to pay a finder's fee to an arm's length finder in connection with the binding MOU. The finders fee consists of 5% of the shares issued in connection with the MOU (not the private placement or Centaur Acquisition) and is subject to the approval of the TSX Venture Exchange.
About Arena Minerals Inc.
Arena owns the Antofalla lithium brine project in Argentina, consisting of four claims covering a total of 6,000 hectares of the central portion of Salar de Antofalla, located immediately south of Albemarle Corporation's Antofalla project. Arena has developed a proprietary brine processing technology using brine type reagents derived from the Antofalla project with the objective of producing more competitive battery grade lithium products.
Arena also owns 80 percent of the Atacama Copper property covering approximately 5,000 hectares within the Antofagasta region of Chile. The project is at low altitudes, within producing mining camps in infrastructure-rich areas, located in the heart of Chile's premier copper mining district. Arena holds 5.82 million shares of Astra Exploration Ltd as a result of the sale of its 80% interest in the Pampa Paciencia epithermal gold property, also located in northern Chile, to Astra Exploration Ltd.
To view our website, please visit www.arenaminerals.com. In addition to featuring information regarding the Company, its management, and projects, the site also contains the latest corporate news, a long form text explaining the unique business model of the Company (under the tab "the Company Explained") and an email registration allowing subscribers to receive news and updates directly.
For more information, contact William Randall, President and CEO, at +1-416-818-8711 or Simon Marcotte, Vice-President Corporate Development, at +1-647-801-7273 or smarcotte@arenaminerals.com.
On behalf of the Board of Directors of: Arena Minerals Inc.
William Randall, President and CEO
Cautionary Note Regarding Accuracy and Forward-Looking Information
This news release may contain forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements, projections and estimates relating to the future development of any of the Company's properties, the anticipating timing with respect to private placement financings, the ability of the Company to complete private placement financings, results of the exploration program, future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Atacama project in Chile, the Antofalla, Hombre Muerto or Pocitos Projects in Argentina, and the Company's ability to obtain financing. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The statements made herein are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Estimates underlying the results set out in this news release arise from work conducted by the previous owners and the Company. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Arena Minerals does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Shares of Lithium Americas (NYSE: LAC) were up 8% as of midday Monday, in response to a ruling that the mining outfit can move forward with plans to excavate its Thacker Pass site in Nevada. Just as the name suggests, Lithium Americas is a key producer of lithium, the key component of batteries used to power electric vehicles. The industry continues to expand, with worldwide sales of electrified automobiles growing 41% last year even with the pandemic in place, according to numbers from the International Energy Agency.
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