The Zacks Fertilizers industry is riding on strong demand and pricing fundamentals for major crop nutrients including phosphate and potash. The underlying strength of the agricultural market, a rally in crop commodity prices and healthy farm economics are spurring demand for fertilizers globally.

Industry players like Nutrien Ltd. NTR, Yara International ASA YARIY, The Mosaic Company MOS and CF Industries Holdings, Inc. CF are poised to gain from higher demand for fertilizers in the major markets. Factors like healthy farm income and expectations of increased planted acres are expected to drive demand globally in the near term.  

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Compass Minerals shares jump as the company reports a discovery of lithium, a key ingredient in electric vehicle batteries.

Shares of Compass Minerals International (NYSE: CMP) shot up this morning and gained as much as 17.9% as of 9:40 a.m. EDT. The otherwise boring company that primarily deals in salt and plant nutrients has made a discovery that has the potential to turn its fortunes around. On July 13, Compass Minerals announced the discovery of a lithium brine resource with nearly 2.4 million metric tons of lithium carbonate equivalent (LCE) at its solar evaporation site in Ogden, Utah.

Compass Minerals International, Covanta, American Airlines, CIT Group and J.B. Hunt Transport are five stock gainers for Wednesday.

Many prominent investors, including Warren Buffett, David Tepper and Stan Druckenmiller, have been cautious regarding the current bull market and missed out as the stock market reached another high in recent weeks. On the other hand, technology hedge funds weren't timid and registered double digit market beating gains. Financials, energy and industrial stocks initially suffered the most but many of these stocks delivered strong returns since November and hedge funds actually increased their positions in these stocks. In this article we will find out how hedge fund sentiment towards Rio Tinto Group (NYSE:RIO) changed recently.

Rio Tinto Group (NYSE:RIO) was in 25 hedge funds' portfolios at the end of March. The all time high for this statistic is 26. RIO has seen a decrease in hedge fund interest in recent months. There were 26 hedge funds in our database with RIO holdings at the end of December. Our calculations also showed that RIO isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).

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. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.

Ken Fisher of Fisher Asset Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. 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. Now let's take a peek at the key hedge fund action surrounding Rio Tinto Group (NYSE:RIO).

Do Hedge Funds Think RIO Is A Good Stock To Buy Now?

At Q1's end, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the fourth quarter of 2020. The graph below displays the number of hedge funds with bullish position in RIO over the last 23 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

More specifically, Fisher Asset Management was the largest shareholder of Rio Tinto Group (NYSE:RIO), with a stake worth $971.9 million reported as of the end of March. Trailing Fisher Asset Management was Arrowstreet Capital, which amassed a stake valued at $285.7 million. Impala Asset Management, Masters Capital Management, and Impala Asset Management 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 Impala Asset Management allocated the biggest weight to Rio Tinto Group (NYSE:RIO), around 5.92% of its 13F portfolio. Impala Asset Management is also relatively very bullish on the stock, dishing out 4.68 percent of its 13F equity portfolio to RIO.

Judging by the fact that Rio Tinto Group (NYSE:RIO) has witnessed falling interest from the smart money, logic holds that there was a specific group of funds that slashed their full holdings heading into Q2. Intriguingly, Josh Donfeld and David Rogers's Castle Hook Partners sold off the biggest investment of all the hedgies monitored by Insider Monkey, totaling about $16.6 million in stock. Andrew Sandler's fund, Sandler Capital Management, also dropped its stock, about $16.5 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds heading into Q2.

Let's now review hedge fund activity in other stocks similar to Rio Tinto Group (NYSE:RIO). We will take a look at Sanofi (NASDAQ:SNY), The Charles Schwab Corporation (NYSE:SCHW), Applied Materials, Inc. (NASDAQ:AMAT), TOTAL S.A. (NYSE:TOT), International Business Machines Corp. (NYSE:IBM), HSBC Holdings plc (NYSE:HSBC), and The Toronto-Dominion Bank (NYSE:TD). This group of stocks' market valuations match RIO's market valuation.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SNY,15,1142178,0 SCHW,76,4905041,15 AMAT,78,5711193,17 TOT,17,1163601,3 IBM,41,1355701,-10 HSBC,12,234093,-2 TD,19,212935,-3 Average,36.9,2103535,2.9 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 36.9 hedge funds with bullish positions and the average amount invested in these stocks was $2104 million. That figure was $1597 million in RIO's case. Applied Materials, Inc. (NASDAQ:AMAT) is the most popular stock in this table. On the other hand HSBC Holdings plc (NYSE:HSBC) is the least popular one with only 12 bullish hedge fund positions. Rio Tinto Group (NYSE:RIO) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for RIO is 42.7. 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. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through July 9th and beat the market by 6.7 percentage points. A small number of hedge funds were also right about betting on RIO, though not to the same extent, as the stock returned 10.7% since the end of Q1 (through July 9th) and outperformed the market.

Get real-time email alerts: Follow Rio Tinto Plc (NYSE:RIO)

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

Lithium Americas shows rising price performance, earning an upgrade to its IBD Relative Strength Rating from 76 to 88.

SES will debut by year end as GM and other automakers anticipate a battle over battery supplies amid a global EV boom.

Company Anticipates Development and Product Optionality with Minimal Environmental Impact

Company Undertaking a Strategic Resource Assessment Designed to Maximize Market Potential and Business Opportunity

OVERLAND PARK, Kan., July 13, 2021–(BUSINESS WIRE)–Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today announced that it has identified a lithium brine resource of approximately 2.4 million metric tons lithium carbonate equivalent (LCE) at its active Ogden, Utah, solar evaporation site, including an indicated lithium resource within the ambient brine of the Great Salt Lake.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210713006108/en/

Compass Minerals' solar evaporation ponds on the Great Salt Lake near Ogden, Utah (Photo: Business Wire)

For over 50 years, Compass Minerals’ Ogden facility has leveraged the high mineral concentrations within the ambient lake brine from the North Arm of the Great Salt Lake to produce sulfate of potash (SOP), salt and magnesium chloride products. The Ogden facility is the largest operation of its kind in the Western Hemisphere.

Compass Minerals is currently undertaking a strategic evaluation to assess development options available to service growing U.S. domestic lithium market demand while maximizing the long-term value of its lithium resource.

"We are aggressively evaluating multiple paths forward for this significant lithium brine resource to optimize shareholder value, in parallel with a reassessment of our current capital allocation strategy," said Kevin S. Crutchfield, president and CEO. "In a market hungry for domestically sourced lithium produced with minimal environmental impact, we believe a sustainable and readily available lithium resource like we have defined at our operations on the Great Salt Lake could be a true differentiator for our company. We look forward to communicating the results of our strategic evaluation and the selection of an extraction technology partner as we identify the most advantageous path forward for Compass Minerals."

Resource Assessment

The company has completed an initial assessment to define the lithium resource at Compass Minerals’ existing operations in accordance with applicable Securities and Exchange Commission (SEC) regulations, including subpart 1300 of Regulation S-K. The assessment estimates total combined indicated and inferred lithium resources of approximately 127,000 metric tons LCE within the interstitial brine (IB) held in the accumulated salt-mass reservoirs at Compass Minerals’ Ogden solar evaporation site. The assessment has also identified an additional indicated lithium resource of approximately 2.32 million metric tons LCE within the ambient brine of the Great Salt Lake, which can be accessed through the company’s existing infrastructure.

The company sustainably manages 160,000 acres of leasehold on the bed of the Great Salt Lake, together with held water rights, 55,000 acres of existing ponds and active mineral extraction permissions.

The company is evaluating the most efficient and sustainable means of extracting the lithium which accumulates through its current solar evaporation process and can be accessed through its existing leases and permits.

Business Opportunity

After an 18-month assessment of multiple direct lithium extraction (DLE) technology providers, including two separate and ongoing pilot projects to demonstrate successful lithium separation from the company’s existing brine resource, Compass Minerals is in the late stages of selecting a DLE technology partner.

The company is targeting an annual production capacity of approximately 20,000 to 25,000 metric tons LCE of battery-grade lithium, with up to 65% of the future production derived from brine that has already been extracted from the Great Salt Lake and in varying stages of concentration within the company’s existing ponds. Lithium concentrations within the ambient brine of the North Arm of the Great Salt Lake range from 55 to 60 parts per million (ppm), while concentrations in the company’s pond-derived magnesium chloride product reach up to 1,000 to 1,600 ppm after three years in the solar evaporation process. The lithium concentration in the IB ranges from 205 to 318 ppm. As such, the company anticipates being well-positioned to serve the widely forecasted increase in domestic market demand for lithium.

In addition, the company is actively engaged in third-party testing of conversion options to battery-grade lithium hydroxide. The company expects to share more information on a selected DLE technology partner and other milestones as the project progresses.

Ongoing Commitment to Environmental Stewardship

By leveraging existing operational infrastructure, permits and pond processes at its Ogden facility, the company believes it is uniquely positioned to capture the now-defined lithium resource with nominal incremental impact to the beds and waters of the Great Salt Lake. Compass Minerals has contracted with Minviro Ltd. to perform a formal life cycle assessment (LCA) of the company’s lithium development scenarios currently under consideration. Based on internationally recognized LCA standards, the Minviro assessment is expected to help quantify any environmental impacts associated with the development of this resource. Compass Minerals expects to leverage the findings of the LCA to identify ways to further minimize the project’s environmental footprint.

As a longstanding operator and engaged stakeholder on the Great Salt Lake, environmental stewardship is core to Compass Minerals’ culture and success. The company’s Ogden facility is the largest SOP production site in the Western Hemisphere, employing a solar evaporation process to harvest SOP, salt and magnesium chloride from the lake’s naturally occurring brine. This technique involves pumping mineral-rich brine from the Great Salt Lake into large open ponds where the sun and wind evaporate the water leaving beds of naturally occurring, crystallized minerals. By harnessing the power of the sun, the use of carbon-based energy sources is minimized, while also reducing costs and limiting greenhouse gas emissions.

Jointly serving as strategic advisors in the company’s assessment of how best to optimize its lithium resource value are J.P. Morgan and Perella Weinberg Partners. RK Equity Advisors has advised Compass Minerals on the development of the lithium resource.

A corporate presentation with information on Compass Minerals’ defined lithium resource is available at investors.compassminerals.com.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. Its salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial and agricultural applications. And its plant nutrition business manufactures products that improve the quality and yield of crops, while supporting sustainable agriculture. Additionally, its specialty chemical business serves the water treatment industry and other industrial processes. The company operates 16 production and packaging facilities with more than 2,000 employees throughout the U.S., Canada, Brazil and the U.K. Visit compassminerals.com for more information about the company and its products.

Forward Looking Statements and Other Disclaimers

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the anticipated development of the lithium resource at the company’s Ogden, Utah, site, including the indicated lithium resource within the ambient brine of the Great Salt Lake. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. We use words such as "may," "would," "could," "should," "will," "likely," "expect," "anticipate," "believe," "intend," "plan," "forecast," "outlook," "project," "estimate," "target," and similar expressions suggesting future outcomes or events to identify forward-looking statements or forward-looking information. These statements are based on the company’s current expectations and involve risks and uncertainties that could cause the company’s actual results to differ materially. The differences could be caused by a number of factors, including without limitation (i) the company’s ability to convert all or any part of the lithium mineral resource identified by the initial assessment into an economically extractable mineral reserve, including the availability and cost of capital for related capital expenditures and the development of applicable process technologies; (ii) the overall environmental impact of the proposed extraction of the lithium mineral resource, as well as the company’s ability to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, governmental or regulatory authorities and costs related to implementing improvements to ensure compliance with regulatory requirements; (iii) the results of the company’s proposed strategic resource assessment regarding the lithium mineral resource; (iv) the company’s ultimate production capacity with respect to LCE; (v) potential weaknesses and uncertainties in global economic conditions, including adverse changes in the overall market for lithium and related products; and (vi) the risk that the company may not realize the expected financial or other benefits from the proposed development of the lithium mineral resource. For further information on these and other risks and uncertainties that may affect the company’s business, see the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of the company’s Annual Report on Form 10-K for the year ended December 31, 2020 and the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC, as well as the company’s other reports filed from time to time with the SEC. The company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law. Because it is not possible to predict or identify all such factors, this list cannot be considered a complete set of all potential risks or uncertainties.

The company has completed an initial assessment to define the lithium resource at Compass Minerals’ existing operations in accordance with applicable SEC regulations, including Subpart 1300. Pursuant to Subpart 1300, mineral resources are not mineral reserves and do not have demonstrated economic viability. The company’s mineral resource estimates, including estimates of the LCE mineral resource, are based on many factors, including assumptions regarding extraction rates and duration of mining operations, and the quality of in-place resources. For example, the process technology for commercial extraction of lithium from brines with low lithium and high impurity (primarily magnesium) is still developing. Accordingly, there is no certainty that all or any part of the LCE mineral resource identified by the initial assessment will be converted into an economically extractable mineral reserve.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210713006108/en/

Contacts

Media Contact
Rick Axthelm
SVP and Chief Public Affairs Officer
+1.913.344.9198
MediaRelations@compassminerals.com

Investor Contact
Douglas Kris
Senior Director of Investor Relations
+1.917.797.4967
krisd@compassminerals.com

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, July 12, 2021 (GLOBE NEWSWIRE) — Arena Minerals Inc. ("Arena" or the "Company") (TSX-V: AN) announces a non-brokered private placement of subscription receipts (the "Subscription Receipts") at a price of $0.14 per Subscription Receipt for gross proceeds of up to $10,000,000 (the "Offering"). The proceeds of the Offering will be applied to the acquisition of the Sal de la Puna lithium brine project from Centaur Resources Pty Ltd., described in the Company's news releases of May 25, 2021 and June 10, 2021 (the "Centaur Acquisition"). Amounts not required to complete the Centaur Acquisition will be used by Arena for exploration and development expenditures on the Company's lithium assets and for general corporate purposes.

Lithium Americas Corp. ("Lithium Americas” or “LAC”) will be acquiring $6 million of Subscription Receipts in the Offering. Under LAC’s subscription agreement with Arena, and provided it holds at least 7.5% of Arena's common shares, LAC has been granted the right (i) to participate in future Arena financings to maintain its percentage ownership interest in Arena; and (ii) to appoint a nominee to the Arena board of directors as long as it holds at least 10% of Arena's common shares.

Ganfeng Lithium Co., Ltd ("Ganfeng Lithium") holds a contractual right to participate in the Offering to maintain its percentage ownership interest in Arena under the Subscription agreement dated February 3, 2021.

Upon successful closing of the Company’s share purchase agreement with Centaur Resources Pty Ltd. (the "Release Condition"), the Subscription Receipts will be exchanged without payment of additional consideration for units of the Company (each a "Unit"). Each Unit shall consist 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. If the Release Condition is not met by August 15, 2021, the proceeds of the Offering will be returned to the subscribers without interest or deduction.

Will Randall, President and Chief Executive Officer of Arena, commented: “Thanks to the support shown by Ganfeng Lithium, and today’s equity investment by Lithium Americas, I am pleased to confirm that upon closing of this offering, Arena will be fully funded to close the transformative acquisition of the Sal de la Puna Project in Salta, Argentina. Indeed, this financing provides the Company with sufficient working capital to advance our lithium projects towards our ultimate goal of becoming a low-cost supplier to the lithium carbonate industry.”

The Sal de la Puna Project

The Sal de la Puna Project covers approximately 11,000 hectares of the Pastos Grandes basin located in the Puna region of Salta province at an average elevation of 4,000 metres above sea level. The project hosts a large portion of the Pastos Grandes salar adjacent and south of Millennial Lithium’s 12,700-hectare Pastos Grandes project and Litica’s Pozuelos-Pastos Grandes project which shares the northern portion of the same salar. Litica is a subsidiary of Latin American leading oil and gas producers PlusPetrol S.A., who acquired LSC Lithium in 2019 giving them ownership of their lithium assets in Argentina. The Sal de la Puna project is also located 50 km north of Lithium X Energy Corp.’s project, which was sold for $265 million in 2018, where Mr. Morales, Executive Chairman, and Mr. Randall, President and CEO, were senior executives.

Approximately $22 million has been invested in the property by the current private operators/owners, including approximately $13 million in work completed at Sal de la Puna over the last five years. Work included drilling of three wells, including a pumping well to approximately 600 metres below surface, pumping tests, seismic and TEM geophysical surveys. The drilling was carried out on a portion of the Alma Fuerte, one of the nine 100% owned claims.

The technical information contained in this news release has been reviewed and approved by William Randall, P.Geo, who is a Qualified Person as defined under NI 43-101. As President and Chief Executive Officer of the Company, Mr. Randall is not considered independent.

About Lithium Americas Corp.

Lithium Americas is advancing to production the Caucharí-Olaroz lithium brine project in partnership with Ganfeng in Argentina and developing the Thacker Pass lithium project in Nevada, USA. Lithium Americas is a Canadian-based company listed on both the Toronto Stock Exchange (“TSX”) and New York Stock Exchange (“NYSE”) under the ticker symbol “LAC”, with a market capitalisation of more than $2 billion.

About Ganfeng Lithium Co.

Ganfeng Lithium (1772.HK; OTCQX: GNENF), is one of the world’s leading lithium manufacturers and is listed on the Shenzhen Stock Exchange and on the Hong Kong Stock Exchange (Ticker 1772.HK) since 2018 when it raised US$ 440 million in an IPO. Ganfeng Lithium is a top three lithium compound producer, and the largest producer of lithium metal globally. Ganfeng has a strong presence in Argentina, including a 46.7% ownership in Minera Exar which operates the Caucharí-Olaroz project in Jujuy province.

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 Muertos or Posits 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.

VANCOUVER, British Columbia, July 12, 2021 (GLOBE NEWSWIRE) — Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium Americas" or the "Company") announced that it has entered into an agreement to acquire 42,857,143 subscription receipts of Arena Minerals Inc. (TSX-V: AN) (“Arena Minerals”) in a private placement at C$0.14 per subscription receipt for total consideration of C$6.0 million (US$4.8 million).

The strategic ownership in Arena Minerals will provide Lithium Americas future optionality to advance exploration in Argentina in proximity to the Caucharí-Olaroz lithium project (“Caucharí-Olaroz”), which is being jointly developed by the Company and Ganfeng Lithium Co. Ltd. ("Ganfeng"). Ganfeng also holds a 18.7% equity investment in Arena Minerals. Both Lithium Americas and Ganfeng are expected to leverage their deep technical and operational experience to support Arena Minerals’ exploration and development opportunities in Argentina, including the Sal de la Puna project.

"We look forward to working with Arena Minerals and Ganfeng to support the pursuit of resource exploration opportunities in Argentina," commented Jon Evans, President and CEO. "This investment will allow Lithium Americas to advance our long-term resource development plans, while maintaining our team’s focus on execution at Caucharí-Olaroz and the Thacker Pass project.”

The investment is part of a C$10 million non-brokered private placement of subscription receipts of Arena Minerals (the “Offering”). The proceeds of the Offering will be applied by Arena Minerals to the acquisition of the Sal de la Puna lithium brine project in Salta, Argentina, exploration and development expenditures on the Company's lithium assets and for general corporate purposes. Lithium Americas currently does not hold any securities of Arena Minerals. On closing, assuming completion of the full $10 million offering by Arena Minerals, the Company will own approximately 12.9% (14.6% on a fully diluted basis) of the issued and outstanding shares of Arena Minerals.

Pursuant to the agreement, Lithium Americas has the right (i) to participate in future Arena Minerals financings to maintain its pro rata ownership interest in Arena Minerals; and (ii) to appoint a nominee to the Arena Minerals board of directors. These rights are conditioned on Lithium Americas maintaining an ownership interest in Arena Minerals of 7.5% and 10.0% of Arena Minerals’ share capital, respectively.

Upon closing, each subscription receipt will be exchanged for one common share of Arena Minerals, and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share of Arena Minerals at C$0.25 for a period of 24 months from the date of issuance. If Arena Minerals’ acquisition of Sal de la Puna is not met by August 15, 2021, the proceeds of the Offering will be returned to the holder.

The Company is acquiring the securities for investment purposes. Depending on market conditions and other factors, Lithium Americas may, from time to time, acquire additional common shares, common share purchase warrants or other securities of Arena or dispose of some or all of the common shares, common share purchase warrants or other securities of Arena that it owns at such time. An early warning report will be filed by Lithium Americas on SEDAR at www.sedar.com in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact the Corporate Secretary of Lithium Americas at 778-656-5820 or legal@lithiumamericas.com.

About Arena Minerals
Arena Minerals Inc. (TSX-V: AN) is an exploration-stage lithium company focused on developing brine resources in Argentina. Arena Minerals’ team has extensive experience in lithium exploration and development, including the discovery and development of the Salar de los Angeles lithium brine project in Argentina, which was acquired in 2018 for C$265 million. Arena Minerals owns the Antofalla lithium brine project in Argentina, consisting of claims covering a total of 6,000 hectares in the central portion of Salar de Antofalla, located immediately south of Albemarle Corporation's Antofalla project. Arena Minerals has recently agreed to acquire the Sal de la Puna project in Salta, Argentina.

About Lithium Americas
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. The Company trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol “LAC”.

For further information contact:

Investor Relations
Telephone: 778-656-5820
Email: ir@lithiumamericas.com
Website: www.lithiumamericas.com

Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as forward-looking information) under the provisions of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking information, examples of which in this news release include, among other things, statements related to: the Company’s investment in a private placement by Arena Minerals and expected ownership interest upon closing thereof, provided certain conditions to closing are met; the expected benefits to the Company from such investment; any support the Company expects to provide to Arena Minerals to advance its projects; and any future acquisition or disposition of securities of Arena Minerals.

Forward-looking information is based upon a number of factors and assumptions that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such information. Such information reflects the Company’s current views with respect to future events and is necessarily based upon a number of assumptions that, while considered reasonable by the Company today, are inherently subject to significant uncertainties and contingencies. These assumptions include, among others: changes to the Company’s current and future business plans and the strategic alternatives available to the Company; stock market conditions generally; demand, supply and pricing for lithium; results of exploration activities and technical reporting by Arena Minerals; current technological trends; a cordial business relationship among the Company, Arena Minerals and Ganfeng; the ability of the Company to fund, advance and develop its projects; and general economic and political conditions in Argentina and other jurisdictions where the Company conducts business.

Additional risks, assumptions and other factors upon which forward-looking information is based, as it pertains to the Company and its properties, are set out in the Company’s management discussion and analysis and most recent annual information form, copies of which are available on SEDAR at www.sedar.com.

Although the Company has attempted to identify important risks and assumptions, given the inherent uncertainties in such forward-looking information, there may be other factors that cause results to differ materially. Forward-looking information is made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to update or revise the forward-looking information contained in this news release, except as required by applicable law. Accordingly, readers are cautioned not to place undue reliance on forward-looking information.

Lithium Americas shows rising price performance, earning an upgrade to its IBD Relative Strength Rating

Today we will run through one way of estimating the intrinsic value of Intrepid Potash, Inc. (NYSE:IPI) by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.

We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

View our latest analysis for Intrepid Potash

The model

We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:

10-year free cash flow (FCF) estimate

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$154m

The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%.

Terminal Value (TV)= FCF₂₀₃₁ × (1 + g) ÷ (r – g) = US$19m× (1 + 2.0%) ÷ (6.8%– 2.0%) = US$410m

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$410m÷ ( 1 + 6.8%)¹⁰= US$212m

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$366m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$31.5, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.

Important assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Intrepid Potash as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.8%, which is based on a levered beta of 1.026. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Moving On:

Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Intrepid Potash, we've put together three fundamental items you should look at:

1. Risks: We feel that you should assess the 1 warning sign for Intrepid Potash we've flagged before making an investment in the company.

2. Future Earnings: How does IPI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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

Today we will run through one way of estimating the intrinsic value of Compass Minerals International, Inc. (NYSE:CMP) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!

We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.

View our latest analysis for Compass Minerals International

What's the estimated valuation?

We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:

10-year free cash flow (FCF) estimate

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$1.2b

After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 8.4%.

Terminal Value (TV)= FCF₂₀₃₁ × (1 + g) ÷ (r – g) = US$214m× (1 + 2.0%) ÷ (8.4%– 2.0%) = US$3.4b

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$3.4b÷ ( 1 + 8.4%)¹⁰= US$1.5b

The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$2.7b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$60.8, the company appears a touch undervalued at a 23% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.

The assumptions

The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Compass Minerals International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 1.353. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Next Steps:

Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Compass Minerals International, we've compiled three important items you should explore:

1. Risks: You should be aware of the 3 warning signs for Compass Minerals International (1 makes us a bit uncomfortable!) we've uncovered before considering an investment in the company.

2. Future Earnings: How does CMP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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

Energy Fuels (UUUU) closed at $5.41 in the latest trading session, marking a +1.31% move from the prior day. This move outpaced the S&P 500's daily gain of 1.13%.

Heading into today, shares of the uranium and vanadium miner and developer had lost 22.72% over the past month, lagging the Basic Materials sector's loss of 4.51% and the S&P 500's gain of 2.39% in that time.

UUUU will be looking to display strength as it nears its next earnings release. In that report, analysts expect UUUU to post earnings of -$0.04 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $5.48 million, up 1269.75% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.17 per share and revenue of $18.41 million. These totals would mark changes of +26.09% and +1010.62%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for UUUU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UUUU is currently sporting a Zacks Rank of #3 (Hold).

The Mining – Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Energy Fuels Inc (UUUU) : Free Stock Analysis Report
 
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LONDON MARKETS Stocks in London moved higher on Friday, as investors took in stride news of a growth pullback in the country. Deal news sent FTSE 250-listed Vectura climbing. The FTSE 100 index (UK:UKX) rose 0.

(Adds prosecutor quote, company comment)

By Marta Nogueira

RIO DE JANEIRO, July 9 (Reuters) – Federal prosecutors in Brazil are seeking a definitive settlement with miner Samarco and it's shareholders, BHP Group and Vale, for damages caused by the rupture of a tailings dam in 2015, the lead prosecutor told Reuters.

Carlos Bruno Ferreira da Silva, who is leading the task force responsible for the case, said in an interview this week that prosecutors felt a previous agreement – in which the companies agreed to pay around 20 billion reais ($3.80 billion)- had not been effective enough.

He declined to put a figure on how much companies might have to pay, but cited a previous lawsuit seeking 155 billion reais as a potential benchmark.

He also said the settlement would look to learn from the agreement signed with Vale for a separate dam disaster in 2019 at Brumadinho, in which the company agreed to pay 37.69 billion reais ($7.17 billion).

The dam collapse at the Samarco iron ore mine near the town of Mariana in the Brazilian state of Minas Gerais is widely regarded as the country's largest ever environmental disaster. It released enough thick red sludge to fill about 12,000 Olympic swimming pools, flattened an entire village, killed 19 people and left hundreds homeless.

The waste flooded the Rio Doce river, choking fish and spitting them lifeless to the surface.

In 2016, the companies agreed an initial settlement with prosecutors which created a foundation through which to repair damages and a complicated chronology for payments. But the deal left open space for a final definitive agreement.

Silva said there were nearly 85,000 still-unresolved lawsuits relating to the disaster and added that authorities, the mining companies and the impacted population were all unhappy with the earlier agreement.

"Everyone thinks the situation could be better," he said.

In response to requests for comment, Samarco, Vale, BHP and the Renova Foundation – responsible for implementing reparations – said they remain committed to repairing the damage done.

The negotiations with prosecutors, they added, will not interfere with projects and compensations currently in progress. ($1 = 5.2579 reais) (Reporting by Marta Nogueira, writing by Stephen Eisenhammer, Editing by Chris Reese and Diane Craft)

By Roberto Samora

SAO PAULO, July 9 (Reuters) – Mosaic Fertilizantes, a unit of Mosaic Co, sees fertilizer demand in Brazil growing by 6% to as much as 10% in 2021 if demand from corn farmers proves strong, an executive told Reuters.

Mosaic Fertilizantes head Corrine Ricard noted the strong negative effects droughts and frosts have had on Brazil's 2021 corn crop. But she said in an interview that recent difficulties could bump up fertilizer use as farmers push to produce as much as possible to compensate.

"The second harvest suffered from the drought and now the frosts, and I think that could lead some producers to double their efforts in the next harvest," Ricard said.

Recent setbacks have supported corn prices in Brazil even as they have fallen nearly 10% in July in the United States.

That will also push some farmers to be aggressive going forward, said Eduardo Monteiro, Mosaic Fertilizante's commercial vice president.

"Even with volatility in Chicago, in Brazil, prices are still strong," he said. "I think that producers will have more appetite to expand in the next harvest."

Mosaic Fertilizantes, which is active in the mining, production, import, sale and distribution of fertilizer products, has space to expand organically in Brazil, Ricard said.

"We have space to grow," she told Reuters. "That's very important, because the market is growing quickly, and we can continue to participate."

(Reporting by Roberto Samora; Writing by Gram Slattery; Editing by Dan Grebler)

LONDON, July 08, 2021–(BUSINESS WIRE)–Rio Tinto and POSCO, the largest steel producer in South Korea and one of the world’s leading steel producers, have signed a Memorandum of Understanding (MoU) to jointly explore, develop and demonstrate technologies to transition to a low-carbon emission steel value chain.

The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron ore mining to steelmaking, including integrating Rio Tinto’s iron ore processing technology and POSCO’s steelmaking technology.

The MoU with POSCO underlines Rio Tinto’s commitment to working in partnerships with customers on steel decarbonisation pathways and to invest in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 or with potential to deliver carbon neutral steelmaking pathways by 2050. Both Rio Tinto and POSCO share the ambition to reach net zero carbon emissions by 2050.

As one of South Korea’s leading industrial companies, POSCO’s efforts to decarbonise will play an important role in achieving the country’s recently announced ambition to become carbon-neutral by 2050, which has inspired Korean companies to accelerate decarbonisation activities.

Rio Tinto’s Vice President of Iron Ore Sales and Marketing, Simon Farry, said: "This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focusses on developing technologies that support the transition to a low-carbon economy."

POSCO’s Head of Steel Business Unit, Hag-Dong Kim, said: "Tackling climate change is a critical item in achieving sustainable development for a better future. On the journey to achieving carbon neutrality with Rio Tinto, we can play an important role of finding a way to build a low-carbon steel industry"

About Rio Tinto

Rio Tinto produces materials that are essential to human progress. We have publicly acknowledged the reality of climate change for over two decades and have reduced our emissions footprint by over 30 per cent in the decade to 2020.

We have set ambitious emissions targets to reduce our carbon intensity by a further 30% and our absolute emissions by a further 15% by 2030, alongside establishing a $1 billion fund to invest in climate related projects. These targets will bring us a step closer to achieving our long-term goal of becoming net zero emissions by 2050 (which includes emissions from shipping of our products).

In 2021, we also outlined our new scope 3 goals, which include working in partnerships with customers on steel decarbonisation pathways through investing in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 and investing in breakthrough technologies with potential to deliver (i) carbon neutral steelmaking pathways by 2050; and/or (ii) zero-carbon aluminium.

As part of our climate strategy, we have entered into partnerships with the world’s largest steel producer, China Baowu Steel Group, one of China’s most prestigious and influential universities, Tsinghua University, and Japan’s largest steel producer, Nippon Steel Corporation, to develop and implement new methods to reduce carbon emissions and improve environmental performance across the steel value chain.

About POSCO

POSCO is the world’s leading steel-making company established in 1968. POSCO has two steelworks in Pohang and Gwangyang, South Korea. Recognised by World Steel Dynamics as the most competitive steelmaker for 10 consecutive years, POSCO is devoted to the company’s management philosophy, 'Corporate Citizenship: Building a Better Future Together'.

POSCO plans to utilise carbon risk as an opportunity, overcoming its inevitable need for CO2 emission. Through innovative technologies, such as CCUS (Carbon Capture, Utilization and Storage), and hydrogen-based steelmaking, POSCO aims to equip itself with ‘low carbon competitiveness’ which enables providing ‘green steel’.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210708005340/en/

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

Media Relations, UK
Illtud Harri
M +44 7920 503 600

David Outhwaite
M +44 7787 597 493

Media Relations, Americas
Matthew Klar
T +1 514 608 4429

Investor Relations, UK
Menno Sanderse
M: +44 7825 195 178

David Ovington
M +44 7920 010 978

Clare Peever
M +44 7788 967 877

Media Relations, Australia
Jonathan Rose
M +61 447 028 913

Matt Chambers
M +61 433 525 739

Jesse Riseborough
M +61 436 653 412

Investor Relations, Australia
Natalie Worley
M +61 409 210 462

Amar Jambaa
M +61 472 865 948

Rio Tinto plc
6 St James’s Square
London SW1Y 4AD
United Kingdom

T +44 20 7781 2000
Registered in England
No. 719885

Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia

T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

riotinto.com

Category: General

TORONTO (Reuters) – Junior miner Star Diamond Corp on Thursday said it objected to Rio Tinto's "predatory and coercive" actions after the global miner called a meeting for a joint venture the Canadian company says does not yet exist.

The companies have been in a long-running dispute over development of Star Diamond's Star-Orion South Diamond Project in the Canadian province of Saskatchewan.

In 2017 Star Diamond entered an earn-in agreement with Rio Tinto Exploration Canada Inc giving the Anglo-Australian miner an option to earn up to a 60% interest in the project.

Saskatoon-based Star Diamond later said Rio overspent on the project while exercising its earn-in options before completing and delivering results from its bulk sampling program. It said the Rio Tinto was trying to boost its stake at below market value.

Rio has spent roughly C$168 million to complete a 10-hole bulk sample program that Rio told Star Diamond would originally cost about C$18.5 million, the Canadian company said on Thursday.

"Rio Tinto now seeks to call a management committee meeting that it has no legal right to call for a joint venture that Rio Tinto knows has not been duly formed," Star Diamond said in a release.

Rio did not immediately respond to a request for comment.

A preliminary study in 2018 estimated 66 million carats of diamonds could be recovered from the C$2 billion Star-Orion project over a 38-year mine life.

Rio faced similar acrimony with its junior partner Turquoise Hill Resources over expansion of the pair's Oyu Tolgoi copper-gold mine in Mongolia, although that dispute was put to bed in April.

(Reporting by Jeff Lewis; Editing by David Gregorio)

Shares of mining giant Rio Tinto (RIO) were down around 4% in pre-market trading on Thursday after the company signed a Memorandum of Understanding (MoU) with South Korea’s largest steelmaker POSCO. Both companies will work together on various technologies to achieve low-carbon emissions across the entire steel value chain.

The partnership is a step towards both Rio Tinto’s and POSCO’s long-term ambitions of achieving net-zero carbon emissions by 2050.

The alliance will integrate Rio’s iron ore processing capabilities with POSCO’s steelmaking expertise to evaluate possible ways to reduce carbon emissions throughout the steel value chain, from the mining of iron ore to the final production of steel.

In pursuit of its net-zero goal, Rio Tinto has signed similar partnership agreements with several other steel producers, including China’s Baowu Steel Group, and Japan’s Nippon Steel Corporation.

Rio Tinto has actively been working on the climate change issue for over twenty years and has reduced its emissions by more than 30% in the past ten years. (See RIO stock charts on TipRanks)

Furthermore, Rio Tinto plans to reduce carbon intensity by 30% and absolute emissions by an incremental 15% by 2030.

Notably, it has also created a $1 billion fund to finance projects related to climate change and the betterment of the environment.

Simon Farry, VP of Iron Ore Sales and Marketing at Rio Tinto, commented, “This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focuses on developing technologies that support the transition to a low-carbon economy.”

UBS analyst Myles Allsop recently downgraded Rio Tinto to Sell from Hold.

Allsop believes that iron ore has reached an inflection point and forecasts iron ore prices to fall around 50% from their current highs of around $220, based on an expected boost in the iron ore supply.

Consensus among analysts is a Moderate Buy based on 2 Buys and 1 Sell. The average Rio Tinto price target of $101.56 implies 24% upside potential to current levels.

Rio Tinto scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.

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TORONTO (Reuters) -Junior miner Star Diamond Corp on Thursday said it objected to Rio Tinto's "predatory and coercive" actions after the global miner called a meeting for a joint venture the Canadian company says does not yet exist.

Rio Tinto responded by saying it "disagrees with Star Diamond’s interpretations in all material respects."

The companies have been in a long-running dispute over development of Star Diamond's Star-Orion South Diamond Project in the Canadian province of Saskatchewan.

In 2017, Star Diamond entered an earn-in agreement with Rio Tinto Exploration Canada Inc that gave the Anglo-Australian miner an option to earn up to a 60% interest in the project.

Saskatoon-based Star Diamond later said Rio overspent on the project while exercising its earn-in options before completing and delivering results from its bulk sampling program. It said Rio Tinto was trying to boost its stake at below market value.

Rio has spent roughly C$168 million to complete a 10-hole bulk sample program that Rio told Star Diamond would originally cost about C$18.5 million, the Canadian company said on Thursday.

"Rio Tinto now seeks to call a management committee meeting that it has no legal right to call for a joint venture that Rio Tinto knows has not been duly formed," Star Diamond said in a release.

A Rio Tinto spokesman said the miner has a right to call a meeting of the management committee and that Star Diamond’s latest attempt to prevent it from exercising that right was denied by a court on June 24.

A preliminary study in 2018 estimated 66 million carats of diamonds could be recovered from the C$2 billion Star-Orion project over a 38-year mine life.

Rio faced similar acrimony with its junior partner Turquoise Hill Resources over expansion of the pair's Oyu Tolgoi copper-gold mine in Mongolia, although that dispute was put to bed in April.

(Reporting by Jeff Lewis; Editing by David Gregorio and Paul Simao)

(Adds Rio comment)

TORONTO, July 8 (Reuters) – Junior miner Star Diamond Corp on Thursday said it objected to Rio Tinto's "predatory and coercive" actions after the global miner called a meeting for a joint venture the Canadian company says does not yet exist.

Rio Tinto responded by saying it "disagrees with Star Diamond’s interpretations in all material respects."

The companies have been in a long-running dispute over development of Star Diamond's Star-Orion South Diamond Project in the Canadian province of Saskatchewan.

In 2017, Star Diamond entered an earn-in agreement with Rio Tinto Exploration Canada Inc that gave the Anglo-Australian miner an option to earn up to a 60% interest in the project.

Saskatoon-based Star Diamond later said Rio overspent on the project while exercising its earn-in options before completing and delivering results from its bulk sampling program. It said Rio Tinto was trying to boost its stake at below market value.

Rio has spent roughly C$168 million to complete a 10-hole bulk sample program that Rio told Star Diamond would originally cost about C$18.5 million, the Canadian company said on Thursday.

"Rio Tinto now seeks to call a management committee meeting that it has no legal right to call for a joint venture that Rio Tinto knows has not been duly formed," Star Diamond said in a release.

A Rio Tinto spokesman said the miner has a right to call a meeting of the management committee and that Star Diamond’s latest attempt to prevent it from exercising that right was denied by a court on June 24.

A preliminary study in 2018 estimated 66 million carats of diamonds could be recovered from the C$2 billion Star-Orion project over a 38-year mine life.

Rio faced similar acrimony with its junior partner Turquoise Hill Resources over expansion of the pair's Oyu Tolgoi copper-gold mine in Mongolia, although that dispute was put to bed in April. (Reporting by Jeff Lewis; Editing by David Gregorio and Paul Simao)

(Bloomberg) — Farmers may have to get used to paying high prices for fertilizer.

Prices of critical crop nutrients such as phosphate and potash have surged since late last year amid tight supplies, strong demand and geopolitical uncertainties in key producing nations. The extent of that rise has exceeded expectations, and prices will probably remain at elevated levels for longer than previously thought “because we don’t see inventories building up anywhere,” said Corrine Ricard, senior vice president at Mosaic Co., one of the world’s largest suppliers of the nutrients. Even in Brazil, where high crop prices and a weak currency have sent farm profits to record highs, pricey fertilizers may erode the coming season’s windfall.

“Farmers will start to see the affordability changing,” said Ricard, who heads Mosaic Fertilizantes, which operates in Brazil and Paraguay. “It will still be quite favorable for growers, although below 2020.”

Brazil, a major exporter of everything from soybeans to corn and coffee, accounts for a third of Mosaic’s sales. The company expects industry-wide demand in Brazil to total 43 million metric tons this year, up from 40.5 million in 2020. Soy and corn farmers have already locked in an estimated 85% of their nutrient needs.

“Brazil is the growth engine for the company,” she said. “The pace of demand in Brazil has been higher than expected — it has been phenomenal.”

More stories like this are available on bloomberg.com

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©2021 Bloomberg L.P.

MELBOURNE, July 07, 2021–(BUSINESS WIRE)–Rio Tinto has appointed Isabelle Deschamps to succeed Barbara Levi as Chief Legal Officer & External Affairs. Isabelle, who is currently General Counsel of AkzoNobel and a member of the Executive Committee, will join Rio Tinto on 25 October 2021.

Isabelle, a dual Canadian and UK citizen, has over 20 years’ experience in various senior legal roles across Europe and Canada. She joined AkzoNobel in 2018 as Group General Counsel, where she is responsible for all legal, integrity & compliance and intellectual property management, as well as company secretary. She was a driving force behind the Diversity & Inclusion programme.

Before joining AkzoNobel, Isabelle spent six years at Unilever in the UK and in The Netherlands where she had accountability for legal and compliance for its European businesses and its Food & Refreshment division worldwide. Prior to that she led the legal and compliance activities for the Personal Care business whilst also managing the global Intellectual Property group and spearheading legal support to e-commerce, digital and privacy.

Isabelle joined Unilever from Nestlé, where she held various positions in Switzerland and globally. She started her career at a Canadian law firm in Montreal and is admitted to the England and Wales Law Society and to the Quebec (Canada) Bar.

Rio Tinto chief executive Jakob Stausholm said "Isabelle brings a wealth and diversity of legal experience having worked in various senior legal roles for a number of large multinational companies. I am delighted to welcome her to Rio Tinto and look forward to having her join the executive team and lead our legal, compliance and external affairs teams."

This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210706005875/en/

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

Media Relations, UK

Illtud Harri
M +44 7920 503 600

David Outhwaite
M +44 7787 597 493

Media Relations, Americas

Matthew Klar
T +1 514 608 4429

Media Relations, Australia

Jonathan Rose
M +61 447 028 913

Matt Chambers
M +61 433 525 739

Jesse Riseborough
M +61 436 653 412

Investor Relations, UK

Menno Sanderse
M: +44 7825 195 178

David Ovington
M +44 7920 010 978

Clare Peever
M +44 7788 967 877

Investor Relations, Australia

Natalie Worley
M +61 409 210 462

Amar Jambaa
M +61 472 865 948

Rio Tinto plc

6 St James’s Square
London SW1Y 4AD
United Kingdom

T +44 20 7781 2000
Registered in England
No. 719885

Rio Tinto Limited

Level 7, 360 Collins Street
Melbourne 3000
Australia

T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404

riotinto.com

Category: General

The FTSE 100 (^FTSE) jumped higher on Wednesday, boosted by rallying oil and mining stocks.

The FTSE had gained half a per cent by lunchtime in London. The index was initially boosted by Royal Dutch Shell (RDSB.L) before surging mining stocks took over the lead.

Oil major rose over 2% in early trade after announcing plans to hike payouts to shareholders later this month. Shell said it would increase distributions to between 20% and 30% of cashflow from its operations thanks to a rebound in its core business and an improving outlook. The stock pulled back to trade up 1.5% by lunchtime.

Rival BP (BP.L) rallied 0.7% on the back of Shell's announcement. Both stocks also benefited from rising oil prices. Brent futures (BZ=F) were up 1.5% in early trade to reach $75.66 a barrel.

Mining and resources stocks were in demand in London. Anglo American (AAL.L) led the FTSE leaderboard by lunchtime with a gain of 3%. BHP (BHP.L) rose 2.4%, Rio Tinto (RIO.L) was 2% higher, and steel business Evraz (EVR.L) rose 1.9%.

Stocks were catching bids on the continent too. France's CAC 40 (^FCHI) was up 0.1% in early trade and the German DAX (^GDAXI) rose 0.9%. Demand for resources helped the German index too, with Heidelberg Cement (HEI.DE) shooting up 4.4%.

Markets were mostly lower in Asia overnight. Japan's Nikkei (^N225) fell 1% as the country's leading economic index came in lower than expected. South Korea's KOSPI (^KS11) slipped 0.6%. On the Chinese mainland, the Shanghai Composite (000001.SS) rallied 0.7% and the Shenzen Component (399001.SZ) gained 1.8%.

The Hong Kong Hang Seng (^HSI) dropped 1% amid mounting fears about Chinese action against tech giants such as Alibaba (9988.HK) and Didi (DIDI). 

Shares in ride-hailing giant Didi crashed 20% in its New York IPO after Chinese regulators opened a data probe of the company and called for its removal from the country's app store. The stock was down another 3.9% in the pre-market.

Wall Street looks set for a higher open. S&P 500 futures (ES=F) were up 0.2%, Dow futures (YM=F) were up 0.1%, and Nasdaq futures (NQ=F) ticked 0.5% higher.

Watch: What are SPACs?

VANCOUVER, British Columbia, July 07, 2021 (GLOBE NEWSWIRE) — Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY) (OTCQB: SHCMF), is pleased to announce that its common shares commenced trading today on the OTCQB^® Venture Market (the “OTCQB”) in the United States operated by the OTC Markets Group Inc. under the stock symbol “SHCMF”. The Company’s common shares will also continue to trade on the TSX Venture Exchange under the symbol “SMY”.

The OTCQB offers investors transparent trading in entrepreneurial and development stage U.S. and international companies that may not yet quality for OTCQX. To be eligible, companies must be current in their reporting and must undergo an annual verification and management certification process. Investors can find real-time quote and market information at: https://www.otcmarkets.com/stock/SHCMF/overview

“We are pleased to have the Company’s common shares posted for trading on the OTCQB to help introduce the Company to a broader audience. Trading on the OTCQB will assist in increasing Search’s visibility in the U.S. and offering U.S. prospective investors exposure to our Critical Rare Earth Element District in South-East Labrador,” stated Greg Andrews, President and CEO of the Company.

For further information, please contact:

Greg Andrews
President and CEO
Tel: 604-998-3432
E-mail: info@searchminerals.ca

About Search Minerals Inc.

Led by a proven management team and board of directors, Search is focused on finding and developing resources within the emerging Critical Rare Earth Element (“CREE”) District of South East Labrador. The Company controls a belt 63 km long and 2 km wide including its 100% interest in the FOXTROT and DEEP FOX Projects, which are road accessible and at tidewater. Exploration efforts have advanced FOX MEADOW, AWESOME FOX and SILVER FOX as new CREE prospects very similar to and in close proximity to FOXTROT and DEEP FOX.

Search has continued to optimize our patented Direct Extraction Process technology with the generous support from the Department of Industry, Energy and Technology, Government of Newfoundland and Labrador, and from ACOA.

Search has been selected to participate in the Government of Canada Accelerated Growth Service (“AGS”) initiative, which supports high growth companies. AGS, as a ‘one-stop shop’ model, provides Search with coordinated access to Government of Canada resources as Search continues to move quickly to production and contribute to the establishment of a stable and secure rare earth element North American and European supply chain.

We have completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.

About OTC Markets Group Inc.
OTC Markets Group Inc. operates the OTCQX Best Market, the OTCQB Venture Market, and the Pink Open Market for 10,000 U.S. and global securities. Through OTC Link ATS and OTC Link ECN, the OTC Markets Group connects a diverse network of broker-dealers that provide liquidity and execution services. OTC Markets Group enables investors to easily trade through the broker of their choice and empowers companies to improve the quality of information available for investors.

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 REGARDING FORWARD-LOOKING INFORMATION

Certain statements contained in this news release may constitute forward‐looking information. Forward‐looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. Forward‐looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking information. The Company’s actual results could differ materially from those anticipated in this forward‐looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, changes to the Company’s strategic growth plans, and other factors, many of which are beyond the control of the Company. The Company believes that the expectations reflected in the forward‐looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. Any forward‐looking information contained in this news release represents the Company’s expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward‐looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

(Bloomberg) — Farmers may have to get used to high fertilizer prices as global stockpiles remain flat despite a sharp rally, according to one of the worlds largest suppliers.

Prices of crop nutrients such as phosphate and potash have surged since late last year amid tight supplies, strong demand and geopolitical uncertainties in key producing nations.

The extent of that recovery has exceeded expectations, said Mosaic Co. Senior Vice President Corrine Ricard. Prices probably will stay at elevated levels for longer than previously thought “because we don’t see inventories building up anywhere,” she said in an interview. Even in Brazil, where high crop prices and a weak currency have sent farm profits to record highs, pricey fertilizers may erode the coming season’s windfall.

“Farmers will start to see the affordability changing,” said Ricard, who heads Mosaic Fertilizantes, which operates in Brazil and Paraguay. “It will still be quite favorable for growers, although below 2020.”

Brazil, a major exporter of everything from soybeans to corn and coffee, accounts for a third of Mosaic’s sales. The company expects industry-wide demand in Brazil to total 43 million metric tons this year, up from 40.5 million in 2020. Soy and corn farmers have already locked in an estimated 85% of their nutrient needs.

“Brazil is the growth engine for the company,” she said. “The pace of demand in Brazil has been higher than expected — it has been phenomenal.”

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TAMPA, FL / ACCESSWIRE / July 7, 2021 / The Mosaic Company (NYSE:MOS) plans to release 2021 second quarter earnings results on Monday, August 2, 2021, after the market close of the New York Stock Exchange. The company will issue a news wire alert when the earnings materials are publicly available on the company's website.

The company's disclosure process will be consistent with the prior quarter and conducted as follows:

• Earnings materials posted to the website after close on August 2 will include earnings commentary, performance data and the full earnings release at https://investors.mosaicco.com/financials/quarterly-results .

• Market update slides will be posted to https://investors.mosaicco.com/market-education .

• The company will accept emailed questions until 7:30 p.m. Eastern, August 2, following the release. Questions to be addressed by the leadership team can be submitted to investor@mosaicco.com .

• On Tuesday, August 3, beginning at 11:00 a.m. Eastern Time, the company will provide brief prepared remarks and address the questions submitted via email. For the remainder of the hour, phone lines will be opened to allow for additional questions. A webcast of the conference call can be accessed by visiting Mosaic's website. An audio replay of the call will be available on the website for up to one year from the time of the earnings call.

• The conference call details are as follows:

Dial-In #: 678.825.8336
Conference ID: 5744899

Replay:
Dial In #: 404.537.3406
Conference ID: 57448899

About The Mosaic Company

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphates and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com .

Contacts:

The Mosaic Company
Media:
Ben Pratt, 813-775-4206
benjamin.pratt@mosaicco.com
or
Investors:
Laura Gagnon, 813-775-4214
Paul Massoud, 813-244-0669
investor@mosaicco.com

SOURCE: The Mosaic Company

View source version on accesswire.com:
https://www.accesswire.com/654599/Mosaic-Announces-2021-Second-Quarter-Earnings-Release

HEIDELBERG, Germany, July 06, 2021 (GLOBE NEWSWIRE) — DELPHI Unternehmensberatung Aktiengesellschaft (“DELPHI”) has acquired of 55,500 Common Shares of Rokmaster Resources Corp. (“Company”) (TSX-V: RKR) at C$ 0.50 per Common Share in the public market (“Transaction”) for a total consideration of C$27,750.

DELPHI now has ownership and control of 14,720,500 Common Shares representing approximately 14.0% of the issued and outstanding Common Shares of the Company (calculated on a non-diluted basis immediately after the Transaction) and assuming the exercise of 7,839,427 Warrants of the Company entitling DELPHI to purchase up to an additional 7,839,427 Common Shares, DELPHI has ownership and control of 22,559,927 Common Shares, representing approximately 19.9% of the issued and outstanding Common Shares of the Company (calculated on a partially diluted basis immediately after the Transaction).

Prior to the Transaction, DELPHI had ownership and control of 14,665,000 Common Shares, representing approximately 14.0% of the issued and outstanding Common Shares of the Company (calculated on a non-diluted basis immediately before the Transaction), and assuming the exercise of 7,908,802 Warrants of the Company entitling DELPHI to purchase up to an additional 7,908,802 Common Shares, DELPHI had ownership and control of 22,573,802 Common Shares, representing approximately 19.9% of the issued and outstanding Common Shares of the Company (calculated on a partially diluted basis immediately before the Transaction).

The acquisition was made solely for investment purposes. In accordance with applicable securities laws, DELPHI may, from time to time and at any time, acquire additional Common Shares and/or other equity, debt or other securities or instruments (collectively, “Securities”) of the Company in the open market or otherwise, and DELPHI reserves the right to dispose of any or all of its Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of the Company and other relevant factors.

DELPHI was incorporated in Germany. DELPHI’s principal business is to invest its own funds.

For further details relating to the acquisition please see the amended Report, which was filed in accordance with applicable securities laws, a copy of which is available under the Company’s profile on the SEDAR website at www.sedar.com, or may be obtained from DELPHI Unternehmensberatung Aktiengesellschaft, Wilhelm K. T. Zours (CEO / Member of the Board), +49 6221 649240, info@deutsche-balaton.de.

By Melanie Burton

MELBOURNE, July 6 (Reuters) – Buoyed by a rebound in the price of coal, Australian miners of the resource are dusting off expansion plans and raising capital for new projects and acquisitions.

New Hope Corporation, a major thermal coal producer, raised about A$200 million ($152 million) late last month whose use it said "may include further growth expansion and opportunistic M&A activity."

And Stanmore Resources said last week its majority owner, Singapore-listed Golden Energy and Resources (GEAR), will increase a loan facility to $70 million, partly to help the Australian coal miner advance its Isaac Plains project.

New Hope and Golden Energy are seen by analysts and bankers as potential suitors for some of BHP Group's Australian coal assets, including the Mt. Arthur thermal coal mine and its stake in a steelmaking coal project with Japan's Mitsui . Final bids are due for the assets in coming weeks, which BHP could sell separately or together.

BHP's divestment process is expected to be a good barometer of demand for so-called polluting assets such as coal amid rising pressure from financiers and environmental activists to switch to cleaner energy sources.

But with thermal coal prices rising to record highs and steelmaking coal increasing to two-year peaks, the financing pressure on Australian miners for projects has relaxed a little.

The price rally will allow New Hope to pay down its $440 million debt and restore its balance sheet faster than expected to a net cash position, possibly as soon as this year, analysts said. New Hope made a loss of A$111.6 million in 2020.

"We expect NHC would likely be looking at BHP's assets which the latter is looking to exit including the nearby Mt. Arthur thermal coal mine in the Hunter (Valley)," Citi said in a research note last month.

New Hope's organic growth options have been constrained by fierce local opposition on environmental grounds to its New Acland coal mine expansion, which is awaiting a November court hearing.

Its strong operational skills, low ash Bengalla coal that could improve economics for Mt. Arthur through blending, and improved financial standing would make it a good fit for the BHP asset, bankers and analysts told Reuters.

New Hope and BHP declined to comment.

New Hope has, however, said that any new M&A opportunities must be at the lower end of the cost curve, value-creating from day one and have long term approvals in place. Mt. Arthur's operating licence is set to expire in 2026 although BHP has applied to extend it.

Analysts and bankers value Mt. Arthur anywhere from a negative level to as much as $400 million, due to its $1 billion cost to restore the mine's environment. RBC values the assets jointly at $2.5 billion.

Another prospective bidder for the asset is a coalition of activist investor Elliott and coal miner Peabody, a source familiar with the matter told Reuters.

Elliott did not respond to a Reuters request for comment. Peabody declined to comment.

Golden Energy is a likely bidder for the steelmaking coal asset, a source familiar with the matter said, as it opts to diversify away from its thermal coal mines in Indonesia into metallurgical coal. Golden Energy did not respond to a request for comment.

The Australian newspaper previously reported that Indonesia's BUMA was also in the running. BUMA did not respond to a request for comment. ($1 = 1.3177 Australian dollars) (Reporting by Melanie Burton; Editing by Muralikumar Anantharaman)