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A man stands outside the London Stock Exchange in London — FTSE growth was powered by mining and oil stocks. Photo: Tim Ireland/Xinhua via Getty

The FTSE 100 (^FTSE) rose on Wednesday, outperforming European peers despite data pointing to bumper economic growth in the eurozone.

The FTSE was up 0.2% just before mid-morning in London, powered by mining and oil stocks. Shell (RDSB.L) topped the index with a gain of 2% and BP (BP.L) rallied 1.6%. Anglo American (AAL.L) registered a gain of 1.6%, while BHP (BHP.L) wasn't far behind.

“The markets seem to be in consolidation mode on Wednesday after their see-saw start to the week,” said Russ Mould, investment director at AJ Bell.

Investors were focused on central banks and private-sector PMI data. In Britain, Wednesday marked the fifth anniversary of the Brexit vote, although this was more symbolic than market-moving.

IHS Markit published "flash" PMI data for Europe and the UK that showed continued strong momentum for the COVID recovery.

June marked one of the best months on record for the UK economy and the eurozone enjoyed its fastest expansion in 15 years.

"Firms reported a further rise in new orders, lifting them to their highest level since June 2006," said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics. "Moreover confidence in the outlook was at a record high, suggesting the firms now believe Europe the virus is in the past. This sentiment carried over into hiring, with the employment index rising for a fifth month in a row."

However, the German DAX (^GDAXI) and the French CAC (^FCHI) both lost ground in early trade despite opening higher. The DAX was down 0.4% by mid-morning and the CAC was a third of a percent lower.

PMI surveys in both the UK and eurozone warned businesses were facing increased supply chain issues, which are pushing up costs and threaten to slow recovery.

The Federal Reserve continues to dominate the conversation within market. The US central bank last week surprised investors by suggesting it could hike US interest rate twice in 2023. It sparked a sell-off of stocks and a rally for the dollar, as investors rejigged portfolios to reflect a sooner-than-expected end to the era of ultra-cheap money.

In testimony and speeches on Tuesday, Fed chair Jerome Powell and his colleagues sought to reassure investors that rate hikes are still a way off. The public comments helped stocks rally and cooled the dollar after a recent price surge.

The Nasdaq (^IXIC) touched a new high on Tuesday and looked set to continue to climb on Wednesday. Futures (NQ=F) were up 0.1% in early trade. Elsewhere, Dow futures (YM=F) were up 0.2% and S&P 500 futures (ES=F) were 0.1% higher.

The pound was up 0.2% against the dollar (GBPUSD=X) in early trade on Wednesday. Cable reached $1.3975, its highest level since last Thursday when the Fed-driven rally for the dollar was gathering pace.

Fed board member Michelle Bowman and Federal Reserve Bank of Boston president Eric Rosengren are both due to give speeches later this afternoon.

Asian markets were mixed overnight, with tech stocks powering the Hong Kong Hang Seng (^HSI) 1.8% higher but gains muted elsewhere. Japan's Nikkei (^N225) closed flat after minutes from the Bank of Japan showed policymakers believed the global economy recovery could be faster than previously expected. It raises the prospect of the removal of stimulus and support measures, which will likely make capital more expensive.

Watch: Will interest rates stay low forever?

The world is undergoing green energy revolution and the automobile industry is leaving no stone unturned to accelerate electric vehicle (EV) development, which is the driving force toward this clean energy revolution. As consumers get more environment conscious with each passing day, EV industry prospects are only expected to blossom in the coming years. While lithium seems to be the metal that is grabbing most eyeballs amid this e-mobility push, one should not underestimate the role of copper in sustainable energy-efficient transportation.

Copper’s Critical Role in EV Tech

The red metal is an essential component in EVs, and is used in electric motors, batteries, inverters and wiring. Also, the EV charging infrastructure is largely based on copper-based technologies. Copper is a key component of charging infrastructure and is found in cables, transformers and wiring to the electric panel.

Importantly, usage of copper in EVs is up to 4 times more than in the conventional cars. Per the Copper Development Association Inc., traditional cars have 18-49 pounds of copper, hybrid EVs contain approximately 85 pounds and plug-in hybrid EVs use 132 pounds. While battery BEVs contain 183 pounds, a hybrid electric bus and a battery electric bus contain 196 and 814 pounds of copper, respectively.

EV Industry on Fire, Copper Prospects Rosy

With rising awareness about greenhouse gases and their effect on global climate, several companies are aiming to reach carbon neutrality in the near term and the number of EV model launches is rapidly increasing. China, Europe, United Kingdom, France, Germany, the United States and other countries are laying out ambitious targets to phase out gas-powered vehicles. Per Deloitte projections, worldwide EV sales are set to see a CAGR of 29% over the next decade. Market Research Future expects the global EV market to reach $893.5 billion by 2027, representing a CAGR of 21.6% over 2021-2027 timeframe. The Boston Consulting Group projects EVs to more or less account for a third of the global auto industry by 2025, and more than 50% by 2030, indicating a massive jump from 2.6% in 2019.

Amid rising popularity of EVs, the demand for copper is likely to jump. Per the International Energy Agency, clean energy technologies will account for around 45% of copper demand in 2040, higher than 24% in 2020. Per Fastmarkets MB, adoption of EV vehicles will see global refined copper demand rise by 21% per year until 2030, reaching around 2.5 million tons in 2030. The International Copper Association estimates the EV boom to lift copper demand in green vehicles from 185,000 tons in 2017 to 1.74 million tons by 2027. Wood Mackenzie estimates that the growth in EV charging portals will result in the consumption of more than 250% more copper than the 2019 levels.

Stocks to Keep a Tab On

With copper being a key component powering EVs, here are some copper stocks that should be on your watchlist.

FreeportMcMoRan Inc. FCX: This Phoenix-based miner is expected to gain from progress in exploration activities that will boost production capacity. The company will benefit from the ongoing large-scale concentrator expansion project at Cerro Verde that will provide incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It recently completed the Lone Star copper leach project and is on track to produce around 200 million pounds of copper annually. Efforts to cut costs and debt levels appear encouraging. The company currently sports a Zacks Rank #1 (Strong Buy) and has a long-term expected EPS growth rate of 28.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southern Copper Corporation SCCO: This Mexico-based mining company has the largest copper reserves in the industry and operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. It has growth projects on track that will help achieve its target of producing 1.9 million tons of copper production by 2028.Backed by its commitment to increase low-cost production and growth investments, the company is well poised to continue delivering enhanced performance. It currently sports a Zacks Rank #1 and has a long-term expected EPS growth rate of 18.7%.

BHP Group BHP: Headquartered in Melbourne, this natural resources firm is engaged in the production of petroleum, copper, iron, and coal. The firm owns a copper mine in Chile and South Australia. In 2020, BHP produced around 1.7 million tons of copper. The company is expanding its mine at Spence in Chile, extending its life for another 50 years. It has also boosted exploration spending for more copper from all over the world. Efforts to make operations more efficient through smart technology adoption across the entire value chain will continue to aid in reducing costs, thereby bolstering the company’s margins. It currently has a Zacks Rank #1 and a long-term expected EPS growth rate of 4.1%.

Teck Resources TECK: Vancouver-based Teck is a significant copper producer in the Americas, with four operating mines in Canada, Chile and Peru, and copper development projects in North and South America. The firm’s Quebrada Blanca Phase 2 (QB2) copper project surpassed the half-way point in April. Once completed, QB2 will transform the company’s copper business, making it a major global copper producer. The company anticipates to produce 275,000-290,000 tons of copper in 2021, higher than 257,500 tons in 2020. Carrying a Zacks Rank #3 (Hold), the company has a long-term expected EPS growth rate of 20.2%.

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FreeportMcMoRan Inc. (FCX) : Free Stock Analysis Report

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Southern Copper Corporation (SCCO) : Free Stock Analysis Report

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To read this article on Zacks.com click here.

Zacks Investment Research

In this article, we discuss the 10 best nickel stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Nickel Stocks to Buy Now.

The demand for nickel has been rising in the past few years as it becomes important to the electric vehicle industry. Nickel, previously used as a corrosion resistant material by the steel industry, has exploded in value with the mass production of cheap electronic devices, most of which make use of the metal in manufacturing. According to Research and Markets, the global production of the metal is expected to cross 2.76 million tons within the next two years. This represents a compound annual growth rate of close to 3% for the nickel industry.

A few mining companies poised to use the high demand for the precious metal to their advantage in the near future include Vale S.A. (NYSE: VALE), the Brazilian mining firm, BHP Group (NYSE: BHP), the Australian global resources company, and Rio Tinto Group (NYSE: RIO), the United Kingdom-based multinational metals corporation. On April 26, Vale S.A. (NYSE: VALE) posted earnings per share of $1.09 for the first quarter of 2021, beating market predictions by $0.06. The company is also considering a spinoff of its base metals division.

Meanwhile, BHP Group (NYSE: BHP) has also been enjoying a stellar start to the new year. On May 18, CEO Mike Henry spoke at a mining conference and said that the future outlook for commodities was compelling as the COVID-19 stimulus packages of the government helped lift the demand for raw materials for an extended period of time. Henry also outlined that the industry was evolving to the advantage of BHP, which had close to 25% of its mining portfolio in futuristic commodities like nickel and copper.

Rio Tinto Group (NYSE: RIO), the second-largest mining firm in the world, has also been adapting to changes in the mining sector by engaging in projects that make the firm more environmentally stable in the long-term. As one of the largest nickel producers, the company feels it has a responsibility to the clean energy industry to develop a sustainable market ecosystem. In this regard, the firm has recently pledged to stop using hydrogen in aluminum refining in order to cut down on emissions.

The demand for nickel has been a source of disruption in the mining industry that is usually reliant on other precious metals for revenue. Larger market forces have been reshaping entire industries in the past few years. 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 February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. 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.

Image by Tshekiso Tebalo from Pixabay

With this context in mind, here is our list of the 10 best nickel stocks to buy now. These were selected keeping in mind their relevance to the nickel industry, hedge fund sentiment, and the business fundamentals driving the earnings of each company.

Best Nickel Stocks to Buy Now

10. PolyMet Mining Corp. (NYSE: PLM)

Number of Hedge Fund Holders: N/A

PolyMet Mining Corp. (NYSE: PLM) is a mining company with interests in copper, nickel, cobalt, gold, silver, and platinum, among other metals. It is placed tenth on our list of 10 best nickel stocks to buy now. The stock has offered investors returns exceeding 29% over the course of the past four weeks. One of the top projects of the firm is the NorthMet, a polymetallic project located in Minnesota and covering an area of more than 4,000 hectares. Copper-nickel mines are part of the natural resource project.

In February, PolyMet Mining Corp. (NYSE: PLM) stock jumped to a six-month high, climbing 16% in a single day as the top court in Minnesota ruled in favor of the firm in a case involving a clean air permit issued to the firm by the pollution agency of the state.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in PolyMet Mining Corp. (NYSE: PLM) with 304,746 shares worth more than $963,000.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), PolyMet Mining Corp. (NYSE: PLM) is one of the best nickel stocks to buy now.

9. Haynes International, Inc. (NASDAQ: HAYN)

Number of Hedge Fund Holders: 11

Haynes International, Inc. (NASDAQ: HAYN) is a company that makes and sells nickel and cobalt-based alloys. These are corrosion resistant and are used in jet engines, gas turbines, and industrial heating equipment, among other places. The firm is ranked ninth on our list of 10 best nickel stocks to buy now. The company’s shares have returned 60% to investors over the course of the past year. Haynes has a market capitalization of just under $500 million and posted over $380 million in revenue last year.

Haynes International, Inc. (NASDAQ: HAYN) is one of the best options on the market when it comes to dividend payments. On April 29, the company declared a quarterly dividend of $0.22 per share, in line with previous. The forward yield was more than 3%.

At the end of the first quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $56 million in Haynes International, Inc. (NASDAQ: HAYN), down from 13 the preceding quarter worth $42 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Haynes International, Inc. (NASDAQ: HAYN) is one of the best nickel stocks to buy now.

8. Sibanye Stillwater Limited (NYSE: SBSW)

Number of Hedge Fund Holders: 16

Sibanye Stillwater Limited (NYSE: SBSW) is a South African mining company that focuses on precious metals. The company produces gold, nickel, copper, chrome, and other metals. The firm has mining interests in Africa and South America. The company has seen profits soar in recent weeks as the prices of basic materials rise and demand for nickel, used in premier electronic products, rises. It is placed eighth on our list of 10 best nickel stocks to buy now. The stock has returned 106% to investors over the past twelve months..

On June 1, Sibanye Stillwater Limited (NYSE: SBSW) stock soared by close to 7% after the company announced a share buyback program to repurchase 5% of ordinary stock till April next year, affirming that the buyback would not impact dividend payments for shareholders.

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Sibanye Stillwater Limited (NYSE: SBSW) with 5.2 million shares worth more than $93 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Sibanye Stillwater Limited (NYSE: SBSW) is one of the best nickel stocks to buy now.

In its Q1 2021 investor letter, Desert Lion Capital, an asset management firm, highlighted a few stocks and Sibanye Stillwater Limited (NYSE: SBSW) was one of them. Here is what the fund said:

“Sibanye is a South African gold and platinum group metals (“PGM”) producer with mines in South Africa and the U.S. Established in 2012, it has since become one of South Africa’s largest gold producers and the largest PGM producer in the world. Sibanye also operate a PGM recycling facility and own a majority interest in DRDGOLD, a specialist in the recovery of gold and other precious metals from open pit tailings.

The investment thesis incorporates the following logic:

If central banks globally are going to continue printing money unabated, precious metals prices should rise.

The drive for cleaner and greener is accelerating. The market for platinum, palladium and rhodium is structurally attractive.

The company is generally mischaracterized. Ask around, and one will find that most people still refer to Sibanye as “a South African gold miner” with “lots of debt from that Stillwater acquisition.”

It is not quick and easy to ramp up PGM supply in response to higher demand and prices. Favorable supply-demand characteristics will likely remain favorable for longer.

Bad capital allocation decisions, corporate excesses, and resultant tarnished reputations from the previous boom period are still fresh in the minds of most mining executives. Neal Froneman has proven himself a disciplined capital allocator. His approach to capital allocation is straightforward: deploy capital at expected returns that enhances value to shareholders or distribute it via dividends and buybacks.

The company is debt-free and generating heaps of cash.

The valuation is cheap. At current metal prices, Sibanye is trading at about 5 times after-tax cash profits.

Sibanye is effectively a call option on a potential commodity super cycle. In the meantime, the value of our “option” is unlikely to deteriorate as we are rewarded with healthy dividend flows.”

7. Materion Corporation (NYSE: MTRN)

Number of Hedge Fund Holders: 17

Materion Corporation (NYSE: MTRN) is ranked seventh on our list of 10 best nickel stocks to buy now. The company’s shares have returned 36% to investors over the past year. The firm makes and sells advanced engineering materials. These are used in making semiconductors, as well as in products used by the aerospace and defense industries. The company is famous for the production of copper and nickel in a variety of forms, including plate, bar, wire, rod, and others.

On April 29, Materion Corporation (NYSE: MTRN) posted earnings for the first quarter of 2021, reporting earnings per share of $0.82, beating market predictions by $0.22. The revenue for the first three months of 2021 was $354 million, up more than 27% year-on-year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Materion Corporation (NYSE: MTRN) with 421,511 shares worth more than $27 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Materion Corporation (NYSE: MTRN) is one of the best nickel stocks to buy now.

6. Mechel PAO (NYSE: MTL)

Number of Hedge Fund Holders: 3

Mechel PAO (NYSE: MTL) is a Russian mining company that has stakes in the power and steel businesses as well. It is placed sixth on our list of 10 best nickel stocks to buy now. The stock has returned 20% to investors over the past twelve months. The company is one of the top suppliers of nickel to the Russian government through the Southern Urals Nickel Plant. This nickel is used for defense needs when countries in the West refuse to export nickel to the Russian Federation.

In quarterly earnings results, posted on May 20, Mechel PAO (NYSE: MTL) reported a revenue of RUB76 billion for the first quarter of 2021, up close to 13% compared to the revenue for the first three months of last year.

At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $3 million in Mechel PAO (NYSE: MTL), down from 4 in the previous quarter worth $2.8 million.

Just like Vale S.A. (NYSE: VALE), BHP Group (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Mechel PAO (NYSE: MTL) is one of the best nickel stocks to buy now.

Click to continue reading and see 5 Best Nickel Stocks to Buy Now.

Price Performance

Shares of Caterpillar have surged 68.8% over the past year compared with the industry’s rally of 45.1%.

Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the industrial products sector are Tennant Company (TNC) and Encore Wire Corp. (WIRE). Both of these stocks sport a Zacks Rank #1, at present.

Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18% year to date.

Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.

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Caterpillar Inc. (CAT) : Free Stock Analysis Report

Rio Tinto PLC (RIO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Rio Tinto (RIO). RIO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.90 right now. For comparison, its industry sports an average P/E of 7.38. Over the past year, RIO's Forward P/E has been as high as 11.65 and as low as 5.78, with a median of 8.47.

Another valuation metric that we should highlight is RIO's P/B ratio of 1.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RIO's current P/B looks attractive when compared to its industry's average P/B of 3.05. RIO's P/B has been as high as 2.28 and as low as 1.52, with a median of 1.88, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Rio Tinto is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RIO feels like a great value stock at the moment.

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

Rio Tinto PLC (RIO) : Free Stock Analysis Report

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Taking the next significant step toward mining automation, Rio Tinto plc Plc RIO in partnership with Caterpillar Inc. CAT will deploy the world’s first fully autonomous water truck at its $2.6 billion Gudai-Darri iron ore mine in Western Australia’s Pilbara region. Water spraying is a vital part of mining operations and this new technology will enhance productivity by enabling digital tracking of water consumption, while cutting down water wastage. This marks a significant step in Rio Tinto’s mine automation and digitalization program, and Caterpillar’s efforts in developing autonomous solutions for customers.

The water trucks with 160,000-litre tank capacity have intelligent on-board system, which on detecting dry and dusty conditions on site will trigger the application of water. When a refill is required, the trucks are programed to self-drive to the water stand, park and top-up, and return to the field. Caterpillar’s three water trucks will join Gudai-Darri’s fleet of Caterpillar heavy mobile equipment including autonomous haul trucks and production drills. Rio Tinto intends to make Gudai-Darri one of the world’s most technologically advanced mines. Construction at Gudai-Darri continues to progress with production ramp-up on track for early 2022. Once completed, the mine will have an annual capacity of 43 million tons.

Notably, Rio Tinto’s existing Autonomous Haulage System has improved safety by reducing the risks associated with operators working around heavy machinery. Rio Tinto and other miners are increasingly relying on autonomous systems for haulage and drilling. With the help of technology and automation, miners are bringing radical changes to mining operations to increase productivity, reduce cost and improve frontline safety. The companies are investing in digital initiatives like AI, cloud computing and advanced analytics.

Brazilian miner, Vale S.A VALE has been increasingly embracing the use of robotics and automation. For instance, at its Brucutu Mine, the entire fleet is autonomous, and recently it reached a record of physical use of that fleet. The autonomous operation test for trucks at the Carajás mine in Pará has already begun and implementation is planned for the second quarter of 2021. The company has expanded the use of 25 to 40 autonomous trucks at major underground mines in Sudbury. It is also preparing the infrastructure to enable autonomous underground operation in the Voisey’s Bay and Thompson expansion. Vale recently announced that it will be able to resume operations at its Timbopeba iron ore dry processing plant in the coming months thanks to the use of an unmanned train.

BHP Group BHP has been operating a fully-autonomous truck fleet at its Western Australian Jimblebar mine since 2017. The site is now one of the safest operations in its portfolio, with significant events involving trucks at Jimblebar having dropped by more than 90% since the introduction of autonomous haulage. Following its success, BHP announced it would implement an autonomous fleet at its Goonyella Riverside coal mine in Queensland in late 2019. The transition to an autonomous fleet of up to 86 trucks over the next two years is underway and will involve more than 40,000 hours of training delivered to the Goonyella team to develop the competencies required for autonomous operations. Separately, BHP has announced that it will introduce 20 autonomous trucks at its Newman East (Eastern Ridge) mine in Western Australia by the end of this year.

Capitalizing on this increasing demand, the largest global manufacturer of construction and mining equipment, Caterpillar is enhancing its autonomous capabilities and bringing innovative products into markets that provide it with a competitive edge in mining. Recently speaking at Bernstein 37th Annual Strategic Decisions Conference, Caterpillar’s CEO Jim Umpleby pointed toward a “long healthy cycle” in mining and strong commodity prices. Umpleby also highlighted that the energy transition has immense potential for Caterpillar in the long haul. The intensifying global focus on shifting from fossil fuels to zero emissions will require huge amount of commodities. This is a win-win situation for both miners and mining equipment makers.

BHP currently sports a Zacks Rank #1 (Strong Buy), while VALE, Rio Tinto and Caterpillar carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BHP’s fiscal 2021 earnings suggests year-over-year growth of 84%. The stock has gained 43% in the past year.

The Zacks Consensus Estimate for Rio Tinto’s fiscal 2021 earnings indicates year-over-year improvement of 41%. The stock has surged 46% in the past year.

The Zacks Consensus Estimate for Vale’s fiscal 2021 earnings suggests year-over-year growth of 138%. The stock has soared 110% in the past year.

The Zacks Consensus Estimate for Caterpillar’s fiscal 2021 earnings indicates year-over-year growth of 46%. The stock has appreciated 69.5% in the past year.

Image Source: Zacks Investment Research

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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

Caterpillar Inc. (CAT) : Free Stock Analysis Report

Rio Tinto PLC (RIO) : Free Stock Analysis Report

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

VALE S.A. (VALE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

By Rod Nickel

WINNIPEG, Manitoba, June 22 (Reuters) – Canadian potash producer Nutrien is not focused on any potential collaboration with miner BHP Group, a senior Nutrien executive said on Tuesday in the company's first public comments about reports of possible cooperation.

BHP has for years been constructing a potash mine at Jansen, Saskatchewan, near Nutrien's six mines in the Canadian province. BHP expects to present its board with a decision in a few months on whether to complete the project.

Canada's Globe and Mail newspaper reported in May that BHP and Nutrien were negotiating a joint venture that would see Nutrien take control of the Jansen mine, while Bloomberg reported the companies discussed various partnership options. Both cited unnamed sources.

"Today it's not our focus," said Nutrien Executive Vice-President of Potash Ken Seitz, in an interview, asked about potential for cooperation with BHP.

"I'll just say that everything you've seen is speculative and inaccurate."

BHP, the world's biggest miner, has estimated Jansen would cost up to $5.7 billion in its first phase. Potash offers BHP diversification from copper and iron ore into agricultural markets. Farmers spread the crop nutrient to boost yields.

Potash prices are surging, due to rising demand and recent European Union (EU) sanctions on Belarus, a major producer. Nutrien on Monday said it would boost potash output this year to take advantage.

Seitz said sanctions could hamper seaborne exports by Belaruskali, Belarus' state-owned potash company, as it depends on the Klapeida port in EU member Lithuania.

"That would be the big one, waiting to see whether as part of the sanctions, that trade route would be closed off," he said.

Nutrien could also benefit if sales by Russian potash producer Uralkali replace Belaruskali shipments to some markets and short others, like Brazil, Seitz said. (Reporting by Rod Nickel in Winnipeg Editing by Marguerita Choy)

These are the materials stocks with the best value, fastest growth, and most momentum for July 2021.

Copper futures for July delivery fell 0.5% on Jun 18, touching $4.16 per pound — levels last seen in April. The metal has been under pressure of late and ended up losing 8% of its value in the past week following China’s announcement to sell reserves to rein in the commodity price rally. Further, copper prices were impacted by a firm dollar buoyed by the prospect of U.S. interest rate hikes. This is the worst decline seen so far since March 2020 when the COVID-19 pandemic affected demand due to the disruption of industrial activity.

Notwithstanding the current dip, copper prices are up around 18% year to date. Copper prices have been on an uptrend owing to accelerating demand on account of pick up in manufacturing activity, particularly in China. Meanwhile, inventories were low due to the pandemic induced slowdown in production. Notably, copper reached an all-time high of $4.90 per pound in May.

Last week, China announced plans to sell its reserves of copper, aluminium, and zinc in batches in the near future to boost supply, in a bid to bring commodity prices back to normal. China is the world’s top metals consumer and a major release of reserves could significantly change global supply and demand balances. Also, last week, the Fed indicated it may have to hike rates earlier than anticipated, which led to investors scurrying to the greenback. This, in turn, dealt a blow to metal prices.

However, growing demand for the metal, which has varied industrial uses amid supply constraints suggest that run-up isn’t over yet. Sustained growth in copper demand is expected to continue as the metal is essential to economic activity. Infrastructure development in major countries such as China and India, and the increasing global trend toward cleaner energy and electric cars will continue to support copper demand in the long term. Per the International Energy Agency, clean energy technologies will account for around 45% of copper demand in 2040, higher than 24% in 2020.

Meanwhile, grade decline, rising input costs, water constraints and scarcity of high-quality future development opportunities continue to weigh on the industry’s supply. Notably, miners are now committed to cost-reduction strategies and digital innovation to drive operating efficiencies, which will aid margins in the long haul.

Copper miners fall under the Zacks Mining – Non Ferrous industry, which has gained 116.9% in a year compared with the S&P 500’s rally of 35.7%. The industry falls under the broader Basic Materials sector, which surged 42.4%. The industry currently carries a Zacks Industry Rank #89, which places it at the top 35% of 256 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Image Source: Zacks Investment Research

4 Copper Stocks to Watch

We suggest investors to keep an eye on these four copper-mining stocks that have been handpicked by us. Each of these stocks have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), and a VGM Score of A or B. We believe this combination offer the best investment opportunities. These stocks have also outperformed the S&P in the past year. This is shown in the chart below. These stocks are anticipated to carry the momentum forward backed by their earnings growth projections.

Image Source: Zacks Investment Research

Southern Copper Corporation SCCO: This company based in Phoenix, AZ engages in mining, exploring, smelting, and refining copper and other minerals.

The company has the largest copper reserves in the industry and operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. Its constant focus on increasing low-cost production is commendable. It has growth projects on track that will help achieve its target of producing 1.9 million tons of copper production by 2028.

The Zacks Consensus Estimate for the company’s earnings in 2021 suggests year-over-year growth of 117%. The estimate has moved north by 47% in 90 days’ time. It has a long-term estimated earnings growth rate of 18.7%. The company’s shares have surged 58.9% in the past year. It currently has a Zacks Rank #1 and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

BHP Group BHP: Headquartered in Melbourne, Australia, BHP Group engages in exploration, development, and production of oil and gas properties; and mining of copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal.

In 2020, BHP produced around 1.7 million tons of copper in 2020. The company is expanding its mine at Spence in Chile, extending its life for another 50 years. It has also boosted exploration spending for more copper from all over the world. The company has four major projects under development in petroleum, copper, iron ore and potash with a combined budget of $8.5 billion over the life of the projects, which will drive growth in the long run. Efforts to make operations more efficient through smart technology adoption across the entire value chain will continue to aid in reducing costs, thereby bolstering the company’s margins. Its focus on lowering debt will also contribute to growth.

The company has a long-term estimated earnings growth rate of 4%. The Zacks Consensus Estimate for the company’s fiscal 2021 earnings suggests year-over-year growth of 84%. The estimate has been revised upward by 4% over the past 90 days. The stock has a Zacks Rank #3 and a VGM Score of B. Its shares have appreciated 39.6% in the past year.

Rio Tinto plc RIO: Headquartered in London, the U.K., Rio Tinto engages in mining of aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium.

The company’s world-class portfolio of high-quality assets and strong balance sheet positions it well to navigate through these turbulent times. Rio Tinto’s disciplined capital allocation supports its ability to sustain production and increase investment in development projects (in high-return iron ore and copper), while delivering superior returns to shareholders. Notably, its copper projects at Resolution (Arizona) and Winu (Western Australia) offer significant growth prospects.

The Zacks Consensus Estimate for fiscal 2021 earnings indicates year-over-year growth of 41%. The estimate has been revised upward by 11% over the past 90 days. In a year’s time, the company’s shares have gained 44.4%. The company has a Zacks Rank #3 and a VGM Score of A.

Freeport-McMoRan Inc. FCX: This Phoenix, AZ-based company is engaged in mineral exploration and development; mining and milling of copper, gold, molybdenum and silver; and smelting and refining of copper concentrates.

Freeport is conducting exploration activities near existing mines with focus on opportunities to expand reserves. The company will benefit from ongoing large-scale concentrator expansion project at Cerro Verde that will provide incremental annual production of around 600 million pounds of copper and 15 million pounds of molybdenum. It recently completed the Lone Star copper leach project and is on track to produce around 200 million pounds of copper annually. Efforts to cut costs and debt levels appear encouraging.

The Zacks Consensus Estimate for earnings for fiscal 2021 suggests year-over-year improvement of 480%. The estimate has been revised upward by 22% over the past 90 days. Shares of the company have soared 224% over the past year. It has a Zacks Rank #3 and a VGM Score of A. It has a long-term estimated earnings growth rate of 28.7%.

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In this article, we discuss the 10 best copper stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Copper Stocks to Buy Now.

Copper is on track to become the new gold as the gap between supply and demand widens. According to a prediction by Bank of America, the price of copper could climb to $20,000 per metric ton within the next three years. However, the copper industry has been hit in recent weeks as the US prepares to lift interest rates, sending the price of the dollar surging and reducing the demand for the metal. In a double blow to the industry, China has announced that it will release the metal from national reserves in a bid to control commodity prices.

These developments have hit the copper industry that was on a bull run following the rise in demand for the metal as the economy reopened following the pandemic lockdowns. Copper is used in many electrical products like wires, motors, mobile devices, and others. It is also used in consumer ware and interior components of housing. Lately, as the demand for electric vehicles rises, copper is rapidly being consumed as it offers durability, high conductivity and efficiency, and is used in EV vehicles, charging stations, and other EV-related products.

Some of the companies that are at the forefront of copper production and could cash in on the expected boom for the metal in the long-term include Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM). In February, Freeport-McMoRan Inc. (NYSE: FCX) CEO Richard Adkerson announced that the firm was seeking to approve expansions at US-based copper mines to keep up with the surging demand, especially as copper was a central product for the new climate projects of the US government.

Meanwhile, Rio Tinto Group (NYSE: RIO), the United Kingdom-based mining firm, posted its biggest annual profit since 2011 in February as rising metals prices boosted revenue. It also declared the biggest dividend in its almost 15-decade-long history, totaling over $9 billion in payments to shareholders for 2020. Although this rise in earnings is largely attributed to the soaring price of iron, which accounts for more than 90% of the total earnings, the surge in copper prices also gave a firm push as it delivered a record quarter at the end of 2020.

Newmont Corporation (NYSE: NEM), the largest gold mining firm in the world, has also benefited from the copper business over the past few months. In April, the firm was named among the highest convictions picks for the second quarter by Bank of America. The company beat market expectations on earnings per share for the fourth quarter of 2020 even as gold production fell because of rising prices. In February, the firm hiked the quarterly dividend payment by a whopping 38%.

It remains to be seen how these companies weather the bear tailwinds in the coming months. Stock volatility in the past few years has pummeled entire investment portfolios in the past few years. 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 February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. 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.

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With this context in mind, here is our list of the 10 best copper stocks to buy now. These were selected keeping in mind annual copper production, hedge fund sentiment, and the business fundamentals underlying each company.

Best Copper Stocks to Buy Now

10. Barrick Gold Corporation (NYSE: GOLD)

Number of Hedge Fund Holders: 49

Barrick Gold Corporation (NYSE: GOLD) is a mining firm that focuses on the extraction and development of gold and copper. It has operations in more than 10 countries around the world. It is placed tenth on our list of 10 best copper stocks to buy now. The stock has offered investors returns exceeding 2.8% over the past three months. In the first quarter of 2021, a surge in prices helped the firm with a 31% quarter-to-quarter increase in revenue from copper mines in Chile, Saudi Arabia and Zambia.

On June 4, Barrick Gold Corporation (NYSE: GOLD) Mark Bristow told the media that the company hoped to restart a mining operation in Papua New Guinea (PNG) under a new deal that would exploit the resources in the operation under a joint venture with PNG stakeholders.

At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Barrick Gold Corporation (NYSE: GOLD), down from 53 the preceding quarter worth $1.7 billion.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD) is one of the best copper stocks to buy now.

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE: GOLD) was one of them. Here is what the fund said:

“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”

9. Teck Resources Limited (NYSE: TECK)

Number of Hedge Fund Holders: 30

Teck Resources Limited (NYSE:TECK) is a natural resources firm that engages in the mining of copper, zinc, and other metals. It is ranked ninth on our list of 10 best copper stocks to buy now. The stock has returned more than 102% to investors in the past twelve months. The firm has mining interests in many countries, including Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States, among others. The firm is one of the biggest copper producers in the world with copper mines in Canada and South America.

On May 26, investment advisory Deutsche Bank upgraded Teck Resources Limited (NYSE:TECK) stock to Buy from Hold with a price target of $30 on the back of growth potential with regards to the QB2 copper project and the returns it promised in the medium term.

Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Teck Resources Limited (NYSE:TECK) with 9.3 million shares worth more than $179 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Teck Resources Limited (NYSE:TECK) is one of the best copper stocks to buy now.

8. Vale S.A. (NYSE: VALE)

Number of Hedge Fund Holders: 31

Vale S.A. (NYSE: VALE) is a metals mining company that concentrates on the production of iron ore, nickel, and other metals. The firm is one of the largest ones in Brazil and markets logistical services related to these metals in addition to mining and development. It is placed eighth on our list of 10 best copper stocks to buy now. The company’s shares have returned more than 109% to investors over the past twelve months. Last year, the firm produced almost 360,000 metric tons of copper.

On June 4, Vale S.A. (NYSE: VALE) halted production at two mines in the Minas Gerais region of Brazil after local officials evacuated people from nearby the site of Xingu dam. Brazilian officials have said that the dam is close to collapsing but Vale disputes this.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Vale S.A. (NYSE: VALE) with 38 million shares worth more than $661 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Vale S.A. (NYSE: VALE) is one of the best copper stocks to buy now.

7. BHP Group (NYSE: BHP)

Number of Hedge Fund Holders: 18

BHP Group (NYSE: BHP) is an Australian natural resources firm with interests in petroleum, copper, iron, and coal. The firm owns a copper mine in Chile, as well as other copper-related assets elsewhere. It produced more than 1.3 million tons of copper in 2020. The firm owns a copper mine in South Australia. It is ranked seventh on our list of 10 best copper stocks to buy now. The stock has returned more than 43% to investors over the past year.

On June 11, BHP Group (NYSE: BHP) shares jumped close to 1% as the firm announced that workers at a copper mine in Chile had accepted work contracts, putting an end to rumors about a strike that could have hit the mine and global copper production.

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.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), BHP Group (NYSE: BHP) is one of the best copper stocks to buy now.

6. Turquoise Hill Resources Ltd. (NYSE: TRQ)

Number of Hedge Fund Holders: 13

Turquoise Hill Resources Ltd. (NYSE: TRQ) is a mineral exploration and development company. It is placed sixth on our list of 10 best copper stocks to buy now. The stock has returned more than 142% to investors in the past twelve months. The company concentrates on operations related to copper, gold, and silver. In 2020, the firm produced 149,631 tons of copper, beating guidance of 140,000 tons.

On May 12, Turquoise Hill Resources Ltd. (NYSE: TRQ) posted earnings results for the first quarter of 2021, reporting earnings per share of $1.18, beating market expectations by $0.63. The revenue over the period was more than $520 million, up 302% year-on-year.

At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $575 million in Turquoise Hill Resources Ltd. (NYSE: TRQ), up from 12 in the previous quarter worth $374 million.

Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), Turquoise Hill Resources Ltd. (NYSE: TRQ) is one of the best copper stocks to buy now.

Click to continue reading and see 5 Best Copper Stocks to Buy Now.

Crunching the numbers

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. To begin with, we have to get estimates of the next ten years of cash flows. 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.

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:

10-year free cash flow (FCF) estimate

	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
Levered FCF ($, Millions)	US$16.7b	US$15.8b	US$14.1b	US$15.5b	US$10.7b	US$10.0b	US$9.66b	US$9.45b	US$9.37b	US$9.36b
Growth Rate Estimate Source	Analyst x16	Analyst x17	Analyst x15	Analyst x3	Analyst x1	Est @ -6.33%	Est @ -3.85%	Est @ -2.12%	Est @ -0.91%	Est @ -0.06%
Present Value ($, Millions) Discounted @ 7.2%	US$15.6k	US$13.8k	US$11.4k	US$11.7k	US$7.6k	US$6.6k	US$6.0k	US$5.4k	US$5.0k	US$4.7k

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$88b

The second stage is also known as Terminal Value, this is the business's cash flow after 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 1.9%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%.

Terminal Value (TV)= FCF₂₀₃₀ × (1 + g) ÷ (r – g) = US$9.4b× (1 + 1.9%) ÷ (7.2%– 1.9%) = US$182b

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$182b÷ ( 1 + 7.2%)¹⁰= US$91b

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$179b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of AU$46.5, the company appears about fair value at a 1.7% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula – garbage in, garbage out.

The 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 BHP Group 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 7.2%, which is based on a levered beta of 1.109. 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:

Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For BHP Group, we've compiled three fundamental factors you should consider:

Risks: Be aware that BHP Group is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored…
Future Earnings: How does BHP'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.
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 ASX 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.

Investors might want to bet on Intrepid Potash (IPI), as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates — one of the most powerful forces impacting stock prices — has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate — the consensus measure of EPS estimates from the sell-side analysts covering the stock — for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Intrepid Potash is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Intrepid Potash, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.

Earnings Estimate Revisions for Intrepid Potash

For the fiscal year ending December 2021, this potash and fertilizer producer is expected to earn $0.85 per share, which is a change of 155.9% from the year-ago reported number.

Analysts have been steadily raising their estimates for Intrepid Potash. Over the past three months, the Zacks Consensus Estimate for the company has increased 182.2%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Intrepid Potash to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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Intrepid Potash, Inc (IPI) : Free Stock Analysis Report

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As the U.S. economy grows at its fastest rate since the 1980s, mining companies are benefiting from a price surge in metals like copper, nickel and aluminum. Behind that price surge is the anticipation of renewed investment in infrastructure and manufacturing, two sectors where mined resources are key components of building and developing new technology.

American Pacific Mining (OTCQB: USGDF), the Canadian-based company focused on copper, gold and silver exploration in the western United States, is one of the rising companies in the space that’s been attracting new investors interested in adding mining stocks to their portfolio. Key acquisitions and a joint venture agreement with the major mining company, Rio Tinto (OTCMKTS: RTNTF) are among the main factors driving investor interest in the high-growth potential stock.

Rio Tinto Began Drilling at the Madison Copper Gold Project

Kennecott Exploration, a division of Rio Tinto, is funding the exploration of the past-producing Madison Copper Gold Project in Montana this year after results from previous drilling campaigns demonstrated high-grade copper and gold potential at the project. The Madison project has a rich history of high grade production, churning out 2.7B pounds of copper with grades ranging from 20% to over 35% and 7,570 ounces of gold at 16.1 grams per tonne between 2008 and 2012. Industry insiders know that high grades like these are phenomenal. American Pacific inherited the earn-in agreement and option to joint venture with Rio Tinto on Madison when it acquired the Madison project last year.

This partnership with a major mining company like Rio Tinto is one of the key signals investors look for in evaluating smaller cap mining stocks. Founded in 1873, Rio Tinto is one of the world’s largest mining companies and owns and operates mines, mills and other facilities around the world. A company as established as Rio Tinto is known for doing significant due diligence before agreeing to be involved in a project. That it’s chosen to invest so much time and capital into the Madison project is a strong testament to the potential at American Pacific Mining’s flagship asset.

Not only does it signal the project’s potential, but it also mitigates much of the risks typically associated with exploration projects. As the operator, Rio Tinto is not only covering the cost of drilling, but it is drilling the project as well, lending its extensive operational expertise, both of which free the junior exploration company from the burden of the financing risk and operation risk for this project.

Investors who buy shares of American Pacific Mining see this as an opportunity to benefit from the added reassurance of a major mining company partnership while paying junior mining stock prices.

Michael Gentile Becomes Strategic Investor in American Pacific Mining

One investor of note is Michael Gentile, CFA. The former portfolio manager for the $2 billion Montreal-based Formula Growth Fund bought a near 20% stake in the company earlier this year, becoming a strategic investor.

During his 15-year tenure at the Formula Growth Fund, Gentile focused on finding promising junior mining and natural resource companies to add to the fund. Since retiring, Gentile has become an active strategic investor, owning a top 5 stake in more than 15 small cap mining companies.

The latest small cap mining company to be added to his portfolio is American Pacific Mining, but the strategic investor with his decades of mining investing expertise is also a strategic advisor to Arizona Metals (OTCMKTS: AZMCF). Headquartered in Toronto, Arizona Metals is a mineral exploration company whose stock has skyrocketed in the past 6 months from $0.76 at the close of 2020 to over $4 in June amid news of new gold-zinc discoveries and the close of a $21,000,000 bought deal offering.

With the combined track record of due diligence in identifying small cap mining stocks for the Formula Growth Fund and the success of the exploration companies currently in his portfolio, Michael Gentile’s investment in American Pacific Mining is seen by many investors as another strong signal of the junior exploration company’s growth potential.

For investors who are new to mining stocks, finding the right ones for your portfolio can be a daunting task as mining company business models are drastically different from other businesses and the mining industry can be hard to evaluate without extensive expertise in the industry. Tracking the investing activities of major mining companies like Rio Tinto that do extensive due diligence before investing in a project and aligning with strategic investors possessing insider knowledge of the industry are two of the best ways to work around those challenges.

See more from Benzinga

Friday, June 18, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Abbott Laboratories (ABT), Bank of America (BAC), and PayPal Holdings (PYPL). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

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

Shares of Abbott have underperformed the Zacks Medical Products industry in the year-to-date period (+1.8% vs. +3.8%). The Zacks analyst believes that the branded generics and international diabetes businesses should drive growth in the coming quarters. Further, new product launches and acquisitions are likely to boost Abbott’s sales further.

The company posted robust year-over-year improvements in the first quarter. It registered organic sales growth across most operating segments. Further, Diabetes Care sales were strong on the back of solid worldwide adoption of FreeStyle Libre. However, the company’s disappointing performance in the Pediatric Nutrition unit remains a major concern.

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

Bank of America shares have gained +31.4% over the last six months against the Zacks Major Regional Banks industry’s gain of +27.9%. The Zacks analyst believes that opening of new branches, enhanced digital offerings, strategic acquisitions and efforts to manage expenses will continue to support the company’s profitability in the near term.

Moreover, a strong balance sheet and liquidity position are expected to continue aiding financials. However, lower interest rates and the Federal Reserve signaling no near-term chance of change in the same are expected to keep hurting the bank’s margins and interest income.

(You can read the full research report on Bank of America here >>>)

Shares of PayPal have gained +14.7% in the past three months against the Zacks Internet Software industry’s gain of +1%. The Zacks analyst believes that PayPal is benefiting from robust growth in total payments volume on the back of increasing net new active accounts. Moreover, strengthening customer engagement on the company’s platform is another positive.

Solid momentum of core peer to peer and PayPal Checkout experiences is a tailwind. Also, accelerating transaction revenues of PayPal are likely to continue driving revenues. However, increasing credit loss reserves due to macroeconomic projections on account of the ongoing pandemic remains a matter of concern.

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

Other noteworthy reports we are featuring today include The Procter & Gamble (PG), BHP Group (BHP) and Boeing (BA).

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Abbott (ABT) Base Business Rebounds, Drop in FY View Ails

Expense Saving Supports Bank of America (BAC) Amid Low Rates

PayPal (PYPL) Benefits From Increasing Total Payment Volume

Featured Reports

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

Per the Zacks analyst, P&G has been witnessing cost-savings and efficiency gains across all its business driven by the productivity program.

Liquidity, High Iron Prices Aid BHP Group (BHP), Costs Hurt

The Zacks analyst believes BHP's strong cash flow, focus on lowering debt, higher iron prices, and efforts to make operations more efficient will drive growth despite higher costs.

Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt

Per the Zacks Analyst, strategic mergers made by Boeing, such as overtaking KLX, boost growth. However, low 737 deliveries as a result of the worldwide grounding of 737 Max jets raises concerns.

ConocoPhillips (COP) Banks on Oil-Rich Permian Footprint

The Zacks analyst expects ConocoPhillips to boost production from lucrative oil resources in the prolific Permian Basin.

New Product Development, Wide Market Reach Aid Eaton (ETN)

Per the Zacks analyst, Eaton's operations in 175 countries across the world and the development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

Strategic Initiatives Benefit Aon (AON), Rising Debts Hurt

Per the Zacks analyst, buyouts and collaborations have enhanced the company's capabilities, which in turn, has led to bottom-line growth.

T. Rowe (TROW) Rides on Organic Growth Moves Amid High Costs

As per Zacks analyst, organic growth-focused initiatives and a debt-free position along with substantial liquidity might continue to support T. Rowe Price.

New Upgrades

International Paper (IP) Rides on Favorable Demand, Buyouts

The Zacks analyst expects International Paper to gain from elevated packaging demand as well as focus on strategic acquisitions to strengthen its packaging business.

Western Digital (WDC) Rides on High-Capacity HDD Adoption

Per the Zacks analyst, Western Digital is benefiting from demand for high-capacity energy-assisted drives (16 and 18 terabytes) and its second-generation NVMe enterprise solid-state drives (SSDs).

Strength in E-Commerce Drives PVH Corp's (PVH) Top Line

Per the Zacks analyst, PVH Corp is gaining from solid online sales in all regions and brands, even after stores reopened. Notably, revenues in digital commerce unit surged 66% year over year in Q1.

New Downgrades

Debt Maturity Profile to Weigh on Canadian Natural (CNQ)

The Zacks analyst is worried that the company is set to face debt maturities each year out till 2027, thereby exposing it to refinancing risk at a time of extremely volatile commodity prices.

Stiff Competitive Landscape, Forex Woes Ail Abiomed (ABMD)

The Zacks analyst is worried about Abiomed facing fierce competition in the field of treatments for heart-related diseases. Unfavorable currency movements are an added issue.

Cat Loss Exposure, Rising Expenses Hurt CNA Financial (CNA)

Per the Zacks analyst, CNA Financial's exposure to catastrophe loss induces underwriting volatility thus profitability while rising expenses affecting net operating income concerns.

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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

Procter & Gamble Company The (PG) : Free Stock Analysis Report

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To read this article on Zacks.com click here.

Zacks Investment Research

MELBOURNE, Jun 17, 2021–(BUSINESS WIRE)–Rio Tinto has appointed Peter Cunningham as Chief Financial Officer with immediate effect. Peter, who has been Interim Chief Financial Officer since 1 January 2021, will also join the Rio Tinto Board as an executive director at the same time.

Peter was previously Group Controller and has held a number of senior financial and non-financial leadership positions across Rio Tinto in Australia and the UK. In a career spanning 28 years with Rio Tinto, he has held roles including Global Head of Health, Safety, Environment & Communities; Head of Energy and Climate Strategy; and Head of Investor Relations. Prior to joining Rio Tinto, Peter qualified as a chartered accountant.

Rio Tinto chief executive Jakob Stausholm said "I am delighted to confirm Peter in the role and, having worked closely with him for a number of years, I know he is the ideal person to be our Chief Financial Officer. His detailed knowledge of the company and of the financial and non-financial drivers of our industry will be invaluable as we continue to strengthen Rio Tinto."

Rio Tinto chairman Simon Thompson said "I look forward to Peter joining the Rio Tinto Board and know from experience that his deep understanding of Rio Tinto and commitment to disciplined capital allocation will serve shareholders well and enrich our Board discussions."

Rio Tinto confirms that there are no matters to be disclosed pursuant to Rule 9.6.13(1)-(6) of the Listing Rules of the UK Listing Authority.

Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State.

Notes to editors

Peter Cunningham will be issued a standard Rio Tinto executive contract, which includes a 12-month notice period. The remuneration package is in line with our Remuneration Policy approved by shareholders in 2021, and is comprised of the following elements:

A base salary of £700,000.
Target annual bonus opportunity at 100 per cent of base salary (with a maximum opportunity of 200 per cent of base salary).
A long-term incentive plan award of up to 400 per cent of base salary with the first grant to be made in 2022.
A company pension contribution or a cash allowance in lieu of pension equal to 14 per cent of base salary.
Other benefits will include company provided health care coverage and eligibility to participate in the all-employee share plans.
A minimum shareholding requirement of 300 per cent of base salary applies.

Further detail will be disclosed in the 2021 Directors’ Remuneration Report.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210616006071/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, Australia

Jonathan Rose
M +61 447 028 913

Matt Chambers
M +61 433 525 739

Jesse Riseborough
M +61 436 653 412

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

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

MELBOURNE, June 17 (Reuters) – Alcoa Corp detailed plans on Thursday for a "step change" in alumina production that would allow it to cut 70% of emissions from the carbon intensive process by tapping renewable energy.

Among Australia's emissions intensive exports, alumina and aluminium would be the most at risk from carbon border tariffs that the European Union is set to announce in July, says think tank the Australia Institute.

"It's going to take to around 2030 or so before you get the technology ready to roll out…lots of planning will be needed to make this come together," company official Ray Chatfield told a conference in the city of Perth.

The Australian government has issued grants to help decarbonise the alumina refining process by which aluminium is made and which contributes about 24% of the country's direct manufacturing emissions, or more than 14 million tonnes of carbon dioxide in 2019, government agency data show.

But Australia could leverage its abundant renewable power, providing a strategic advantage for building out more green alumina production, Chatfield, Alcoa's global technical manager for refining energy, said.

The process would replace the natural gas used to generate high-pressure steam with compressors that would capture waste vapour to generate heat. Such compressors would be powered by renewable energy supplied from a power grid.

The process would also cut water use by about 25 gigalitres per year, he said.

About 1,200 MW of new renewable power is required to fully implement the mechanical vapour recompression (MVR) process at Australia’s six alumina refineries, three run by Alcoa, two by Rio Tinto and one by South32, Chatfield said.

Last month, Alcoa received a government grant to test the technology at scale at its Wagerup refinery in Western Australia by the end of 2023.

But adapting existing refineries for the new process would call for significant investment of $2 billion to $5 billion each, and the technology needs to be proved before it can be adopted, Chatfield added.

This week, Rio Tinto said it would look to cut carbon from the calcination process, which contributes a further 24% of process emissions, by replacing natural gas with hydrogen. The remaining 6% of emissions comes from power imports. (Reporting by Melanie Burton; Editing by Clarence Fernandez)

VANCOUVER, British Columbia, June 17, 2021 (GLOBE NEWSWIRE) — American Lithium Corp. (“American Lithium” or the “Company”) (TSX-V:LI | OTCQB:LIACF | Frankfurt:5LA1) is pleased to provide an update on recent developments at its Tonopah Lithium Claims Project located close to Tonopah, Nevada (“TLC”).

Highlights:

The U.S. Bureau of Land Management (BLM) has confirmed that American Lithium’s Plan of Operations, submitted in January 2021, (the “PO”) has been accepted for review and is deemed complete
Biological and Cultural Baseline Surveys prepared by American Lithium, in conjunction with EM Strategies Inc. of Reno, conducted in 2020 confirmed that “no species or habitat protected under the Endangered Species Act are present within the Project Area”.
BLM has confirmed that a standard Environmental Assessment (“EA”) is sufficient for approval of this PO. Approval of PO anticipated within 3 months, enabling next phase of development.
Next phase at TLC to include a drill program of up to 95 drill holes to extend, expand and upgrade existing resource and complete up to 5 test pits for metallurgical bulk sampling.
Company remains focused on becoming a secure, sustainable, environmentally responsible supplier of battery-grade lithium products for the North American Battery / EV markets.
Strong alignment with 100-Day Review focused on strengthening Critical Supply Chains, including domestic lithium supply, recently announced by The White House.

Simon Clarke, Chief Executive Officer & Director of American Lithium stated, “We are very pleased that the BLM has accepted the Company’s Plan of Operations as complete. This is a key step towards the approval of the PO and the launch of the next phase of development and operations at TLC. The proactive and early steps taken by the Company to ensure that no major environmental issues exist at TLC are helping us move the project ahead as quickly as possible and differentiate us positively from several other claystone projects in Nevada.

At the same time, securing water rights for TLC early in the process, while recognizing the need to be as water efficient as possible and to minimize impacts to the land and water surrounding TLC, has also shown our commitment to be as environmentally responsible as possible and the retaining of Minviro further underlines this commitment. Our focus is not only on implementing a flowsheet to produce battery-grade lithium products at TLC which is as cost-effective as possible but also one that minimizes any potential environmental impacts. Our flow-sheet design work and process engineering continue at a fast pace while we await approval of the PO and the launch of the next phase of drilling.

TLC’s unique characteristics provide it with the potential to be amongst the best lithium projects globally from a cost and environmental perspective.”

TLC Project Update

Plan of Operations
As reported on January 13^th, 2021, the Company filed an Application for a Plan of Operations (“PO”) for its next phase of development and operations at TLC. This PO increases the surface disturbance allowance to 168 acres in two phases, 84.5 acres in Phase 1, and 78.5 acres in Phase 2, and includes all necessary descriptions of environmental and reclamation planning for the next phase of operations, which includes:

Up to 95 new drill holes to further understand, characterize and high-grade the extensive TLC resource and to enable resource expansion to the north, south and west of the current resource and to upgrade existing resource classifications. Click here for latest TLC Plan of Operations Map.
Up to 5 large test pits planned to provide bulk sample material for metallurgical testing as the Company moves to finalize and optimize its flow-sheet design to produce battery-grade lithium products and to maximize project economics while minimizing environmental footprint.
One 5-acre laydown area intended for future pilot plant work for feasibility phase.
Biological and cultural surveys that can be used for future permitting work for feasibility phase and future mine plan, without additional cost.

The American Lithium team prioritized all environmental and cultural work early on to fast-track the project towards this next phase of drilling and testing. The biological surveys conducted for the PO Application found no species or habitat protected under the ESA (Endangered Species Act) within the project area, expediting the Company’s ability to move towards this next phase of development. Information gained under the proposed new drilling / testing program will lead to finalization of a preliminary economic assessment (“PEA”) and a mine plan.

The BLM has accepted and deemed the PO complete with no significant issues. At this stage of development, and based on the environmental work conducted to date, the BLM has commenced an Environmental Assessment (EA) for the TLC Project as opposed to the more arduous Environmental Impact Study (EIS). With the PO application now being deemed complete and the EA commenced, the Company can now focus on the National Environmental Policy Act (NEPA) requirements for the permitting of future phases of the TLC project.

Life Cycle Assessment – Minviro Sustainability Consultants
In addition to the fact that the TLC Project has no endangered species or plants, the characteristics of the clays-hosted lithium mineralization also provide several environmental advantages for the recovery of lithium products. The mineralization is near surface, easy to mine and highly leachable.

American Lithium has retained Minviro Ltd (“Minviro”) to complete a Life Cycle Assessment for the production of battery-grade lithium products at TLC, integrating environmental impact data into the decision-making process as the Company looks to finalize and optimize its flow-sheet design. The sustainability expertise provided by the Minviro life cycle assessment will be a huge step in ensuring that the flow-sheet design selected leverages the unique characteristics of TLC claystone mineralization into the best lithium recovery process from an environmental perspective.

Minviro, a Registered Sustainability Consultancy headquartered in London, England, is a team composed of industry experts on environmental impacts in the mining industry. Robert Pell, PhD., Founder and CEO at Minviro, holds a degree on life cycle assessment of critical metal projects, positioning him as a global expert in determining the impacts of various mining operations and processing methods. The Minviro team is rounded out by a team of experienced engineers and scientists who are passionate about improving the environmental performance of critical global resource projects.

Qualified Person
Mr. Ted O’Connor, P.Geo., a Director of American Lithium, and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical geological information contained in this news release.

About American Lithium
American Lithium is actively engaged in the acquisition, exploration and development of lithium projects within mining-friendly jurisdictions throughout the Americas. The company is currently focused on enabling the shift to the new energy paradigm through the continued exploration and development of its strategically located TLC lithium claystone project in the richly mineralized Esmeralda lithium district in Nevada as well as continuing to advance its Falchani lithium and Macusani uranium development projects in southeastern Peru. Both Falchani and Macusani have been through preliminary economic assessments, exhibit strong additional exploration potential and are situated near significant infrastructure.

Please watch our informative project update videos and related background information at https://www.americanlithiumcorp.com

For more information, please contact the Company at info@americanlithiumcorp.com or visit our website at www.americanlithiumcorp.com. Follow us on Facebook, Twitter and LinkedIn.

On behalf of the Board of Directors of American Lithium Corp.

“Simon Clarke”

CEO & Director

Tel: 604 428 6128

For further information, please contact:

American Lithium Corp.
Email: info@americanlithiumcorp.com
Website: www.americanlithiumcorp.com

Neither 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 press release.

Cautionary Statement Regarding Forward Looking Information
This news release contains certain forward-looking information and forward-looking statements (collectively “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding the plans, objectives and advancement of the TLC, Falchani and Macusani Projects (the “Projects”), exploration drilling plans, in-fill and expansion drilling plans, results of exploration and development plans, expansion of resources and testing of new deposits, environmental and social community permitting, and any other statements regarding the business plans, expectations and objectives of American Lithium. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend", “indicate”, “scheduled”, “target”, “goal”, “potential”, “subject”, “efforts”, “option” and similar words, or the negative connotations thereof, referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management are not, and cannot be, a guarantee of future results or events. Although American Lithium believes that the current opinions and expectations reflected in such forward-looking statements are reasonable based on information available at the time, undue reliance should not be placed on forward-looking statements since American Lithium can provide no assurance that such opinions and expectations will prove to be correct. All forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including risks, uncertainties and assumptions related to: American Lithium’s ability to achieve its stated goals, including the anticipated benefits of the acquisition of Plateau Energy Metals Inc. (“Plateau”); the estimated costs associated with the advancement of the Projects; risks and uncertainties relating to the COVID-19 pandemic and the extent and manner to which measures taken by governments and their agencies, American Lithium or others to attempt to reduce the spread of COVID-19 could affect American Lithium, which could have a material adverse impact on many aspects of American Lithium’s businesses including but not limited to: the ability to access mineral properties for indeterminate amounts of time, the health of the employees or consultants resulting in delays or diminished capacity, social or political instability in Peru which in turn could impact American Lithium’s ability to maintain the continuity of its business operating requirements, may result in the reduced availability or failures of various local administration and critical infrastructure, reduced demand for the American Lithium’s potential products, availability of materials, global travel restrictions, and the availability of insurance and the associated costs; risks related to the certainty of title to the properties of American Lithium, including the status of the “Precautionary Measures” filed by American Lithium’s subsidiary Macusani Yellowcake S.A.C. (“Macusani”), the outcome of the administrative process, the judicial process, and any and all future remedies pursued by American Lithium and its subsidiary Macusani to resolve the title for 32 of its concessions; risks regarding the ongoing Ontario Securities Commission regulatory proceedings; the ongoing ability to work cooperatively with stakeholders, including but not limited to local communities and all levels of government; the potential for delays in exploration or development activities due to the COVID-19 pandemic; the interpretation of drill results, the geology, grade and continuity of mineral deposits; the possibility that any future exploration, development or mining results will not be consistent with our expectations; risks that permits will not be obtained as planned or delays in obtaining permits; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages, strikes and loss of personnel) or other unanticipated difficulties with or interruptions in exploration and development; risks related to commodity price and foreign exchange rate fluctuations; risks related to foreign operations; the cyclical nature of the industry in which American Lithium operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment and the effects upon the global market generally, and due to the COVID-19 pandemic measures taken to reduce the spread of COVID-19, any of which could continue to negatively affect global financial markets, including the trading price of American Lithium’s shares and could negatively affect American Lithium’s ability to raise capital and may also result in additional and unknown risks or liabilities to American Lithium. Other risks and uncertainties related to prospects, properties and business strategy of American Lithium are identified in the “Risks and Uncertainties” section of Plateau’s Management’s Discussion and Analysis filed on January 19, 2021, in the “Risk Factors” section of American Lithium’s Management’s Discussion and Analysis filed on January 29, 2021, and in recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements. American Lithium undertakes no obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Cautionary Note Regarding Macusani Concessions Thirty-two of the 151 concessions held by American Lithium’s subsidiary Macusani, are currently subject to Administrative and Judicial processes (together, the “Processes”) in Peru to overturn resolutions issued by INGEMMET and the Mining Council of MINEM in February 2019 and July 2019, respectively, which declared Macusani’s title to 32 of the concessions invalid due to late receipt of the annual validity payments. In November 2019, Macusani applied for injunctive relief on 32 concessions in a Court in Lima, Peru and was successful in obtaining such an injunction on 17 of the concessions including three of the four concessions included in the Macusani Uranium Project PEA. The grant of the Precautionary Measure (Medida Cautelar) has restored the title, rights and validity of those 17 concessions to Macusani until a final decision is obtained at the last stage of the judicial process. A Precautionary Measure application was made at the same time for the remaining 15 concessions and was ultimately granted by a Court in Lima, Peru on March 2, 2021 which has also restored the title, rights and validity of those 15 remaining concessions to Macusani, with the result being that all 32 concessions are now protected by Precautionary Measure (Medida Cautelar) until a final decision on this matter is obtained at the last stage of the judicial process. A final date for the last stage of the judicial process has not yet been set. If American Lithium’s subsidiary Macusani does not obtain a successful resolution of the Processes, its title to the concessions could be revoked.

VANCOUVER, British Columbia, June 17, 2021 (GLOBE NEWSWIRE) — Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), is pleased to announce that it has signed an Option Agreement (the “Agreement”) with United Gold Inc, Aubrey Budgell, and Donna Lewis, (collectively, the “Vendors”) for an option (the “Option”) to acquire an undivided 100% interest in and to certain claims owned by the Vendors known as the Two Tom Property (the “Property”).

In order to maintain and exercise the Option, Search is required to make cash payments to the Vendors totalling $200,000 and issue 1,600,000 common shares (the “Shares”) in accordance with the following schedule:

Cash Payments

$40,000 on the date the TSX Venture Exchange accepts the Agreement for filing (the “Acceptance Date”);
$50,000 before the first anniversary of the Acceptance Date;
$50,000 before the second anniversary of the Acceptance Date; and
$60,000 on the third anniversary of the Acceptance Date.

Share Issuances

400,000 Shares on the Acceptance Date;
400,000 Shares before the first anniversary of the Acceptance Date;
400,000 Shares before the second anniversary of the Acceptance Date; and
400,000 Shares before the third anniversary of the Acceptance Date.

If Search exercises the Option and acquires an undivided 100% legal and beneficial right, title and interest in and to the Property, the Vendors will thereafter be entitled to a 3% Net Smelter Returns royalty with respect to the Property (the “NSR Royalty”), payable upon the commencement of commercial production, provided that Search will have the right to purchase from the Vendors two-thirds of the NSR Royalty upon payment of the sum of $2,000,000 to the Vendors at any time.

The Property consists of two licenses (027378M and 016522M) totalling 20 claims (4 square kilometres or 400 ha). These two licenses collectively encompass the Two Tom Lake Be-Nb-REE resource. This acquisition further enhances the Company’s strong position in the Red Wine REE (Rare Metal) District in west-central Labrador.

No finder’s fee was payable in connection with the Agreement, and the Agreement is subject to TSX Venture Exchange acceptance.

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 Tourism, Culture, Industry and Innovation, Government of Newfoundland and Labrador, and from the Atlantic Canada Opportunity Agency. We have completed two pilot plant operations and produced highly purified mixed rare earth carbonate concentrate and mixed REO concentrate for separation and refining.

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.

VANCOUVER, British Columbia, June 17, 2021 (GLOBE NEWSWIRE) — Search Minerals Inc. (“Search” or the “Company”) (TSXV: SMY), is pleased to announce that it has signed a binding letter agreement (the “Letter Agreement” ) with Roland Quinlan and Eddie Quinlan (collectively, the “Vendors”) for an option (the “Option”) to acquire an undivided 100% interest in and to certain claims owned by the Vendors known as the Mann#1, and another claim proximal to Two Tom Lake, (the “Property”).

Cash Payments

$20,000 on the date the TSX Venture Exchange accepts the Letter Agreement for filing (the “Acceptance Date”);
$30,000 before the first anniversary of the Acceptance Date;
$60,000 before the second anniversary of the Acceptance Date;
$60,000 before the third anniversary of the Acceptance Date; and
$30,000 before the fourth anniversary of the Acceptance Date.

Share Issuances

400,000 Shares on the Acceptance Date;
400,000 Shares before the first anniversary of the Acceptance Date;
400,000 Shares before the second anniversary of the Acceptance Date;
300,000 Shares before the third anniversary of the Acceptance Date; and
100,000 Shares before the fourth anniversary of the Acceptance Date.

Search will grant the Vendors a 3.0% Net Smelter Return Royalty (“NSR”) on the Property. Search will have the right to purchase 2.5% of the NSR at any time for $2,000,000

The Property consists of two licenses, 027380M (4 claims) and 027384M (20 claims), totalling 24 claims, that equal 6 square kilometres (600 ha.). License 027380M encompasses the Mann #1 Be-Nb-REE mineralized zone. License 027384M is proximal to the Two Tom Lake Be-Nb-REE resource. The acquisition of these two properties further enhances the Company’s strong position in the Red Wine REE (Rare Metal) District in west-central Labrador.

No finder’s fee was payable in connection with the Letter Agreement, and the Letter Agreement is subject to TSX Venture Exchange acceptance.

For further information, please contact:

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

About Search Minerals Inc.

Southern Copper Corporation SCCO has various organic growth projects up its sleeve that will help the company in achieving its target of producing 1.9 million tons (Mt) by 2028. The will aid the company capitalize on the surge in demand for the metal triggered by the global focus on lower-carbon emissions. Backed by world class assets and its incessant focus on cost efficiency, the company is poised well for growth in the long haul.

Through the years, the company’s strong financial discipline has enabled it to make investments in its asset portfolio. It currently has the largest copper reserves in the industry at 67.7 Mt outscoring peers like FreeportMcMoRan Inc. FCX, Codelco and BHP Group BHP with copper reserves of 52.6Mt, 46.6 Mt and 44.4 Mt, respectively.

Roadmap to Copper Production of 1.9 Mt

The road from now to achieving production of 1.9 million tons will be a bit bumpy at the beginning, as the company anticipates lower grades to impact production in 2021 and 2022. However, 2023 is expected to be an inflation year with copper production expected to reach 1,031,000 tons. This will be made possible by the Peruvian production coming back on track and new production on projects of Pilares, El Pilar and Buenavista zinc concentrators.

Southern Copper operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. Including the Michiquillay ($2.5 billion) and Los Chancas ($2.6 billion) projects, its total investment program in Peru runs to $7.9 billion. Peru is currently the second largest producer of copper globally and holds 13% of the world’s copper reserves. Peru’s national output is expected grow to 225000 tons in 2022 and 245000 tons in 2023, per Trading Economics.

In Mexico, the company has a planned investment of $413 million in the Buenavista Zinc — Sonora project. It is expected to be completed in 2023 and will double the company’s zinc production capacity. An investment of $159 million is estimated for Pilares – Sonora project in Mexico, which comprises an open pit mine operation with an annual production capacity of 35,000 tons of copper in concentrates. It is expected to begin production in first-quarter 2022. This project will significantly improve the overall mineral ore grade. The low capital intensity copper greenfield project, El Pilar project, with an investment of $310 million is expected to be completed in 2023. It will add 36,000 tons of copper annually. The El Arco – Baja California project with an estimated capital budget of $2.9 billion is anticipated to have annual production of 190,000 tons of copper and 105,000 ounces of gold. These projects will help the company attain production target of 1.9 million tons by 2028.

High Copper Prices & Low Cost to Boost Margins

Copper prices have gained this year on pickup in global industrial activity and recovery in automobile industry. Further, the $2 trillion infrastructure package announced by President Biden will significantly increase the demand for copper, which is a fundamental element at green energy facilities. Thus, the long-term outlook for copper is positive as copper demand is expected to grow, driven by electric vehicles and renewable energy and infrastructure investments.

However, grade decline, rising input costs, water constraints and scarcity of high-quality future development opportunities continue to constrain the industry’s supply. This demand supply imbalance will push copper prices north. Backed by its endeavors to increase low-cost production, the company’s copper production cash cost is lower than other miners like Vale S.A VALE, BHP Group, Codelco and FreeportMcMoRan, which is commendable. Higher copper prices and low costs will translate to improved margins for the company.

Price Performance

Shares of Southern Copper have appreciated 70% over the past year compared with the industry’s rally of 138.9%.

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Zacks Rank

Southern Copper currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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(Bloomberg) — Global demand for potash could grow by as much as 3% a year over the next decade, BHP Group said as the world’s biggest miner prepares to decide on a major investment in the crop nutrient in Canada.

BHP remained on track to take a final investment decision on the Jansen potash project around the middle of 2021, the company said Thursday in a presentation, pending finalization of port and rail arrangements and a final risk assessment. The first phase of development is seen costing between $5.3 billion and $5.7 billion, with initial production expected within five to six years.

Potash prices have rallied this year, boosted by the economic recovery from the Covid-19 pandemic. Nutrien Ltd., the world’s biggest fertilizer company, said earlier this month that it plans to boost its potash production by about half a million metric tons more than it previously expected this year amid strong global demand.

“Potash is a future-facing commodity that is positively leveraged to global mega-trends, including decarbonization,” Huw McKay, BHP’s chief economist, said on a conference call. “While the industry is currently subject to excess capacity, the demand trajectory is expected to absorb this overhang over the course of this decade.”

Demand could rise to as much as 97 million tons by 2035, from around 70 million tons currently, BHP said, with consumption expected to catch up with supply by the late 2020s or early 2030s. Canada was well placed to meet that demand growth, having more than half of the global reserve base. It already accounts for almost a third of global potash exports.

Read: BHP Runs Rule Over Troubled Potash Project as Decision Looms

Nutrien has been touted as a potential partner for BHP in Jansen, with the miner seen benefiting from Nutrien’s industry knowledge and marketing expertise. BHP has struggled with the project for years, having down-sized earlier plans for a bigger concept and already ploughed at least $4.5 billion into its development.

“Our decision on Jansen depends on more than just the fundamentals of potash,” said Ragnar Udd, president of BHP’s minerals Americas business. “We’re still finalizing a port, and that remains one of the key steps for us to work for,” he said. The group was considering either a commercial option at the port of Vancouver, or a purpose-built greenfield facility at the port.

BHP shares were down 1.5% at A$47.64 at 10:58 a.m. Sydney time on Thursday, compared to a 0.5% decline in the benchmark S&P/ASX 200 index.

(Adds executive comment in paragraph seven)

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SOREL-TRACY, Quebec, Jun 17, 2021–(BUSINESS WIRE)–Rio Tinto has started operations at a new commercial scale demonstration plant to produce high-quality scandium oxide at its Rio Tinto Fer et Titane (RTFT) metallurgical complex in Sorel-Tracy, Quebec.

The $6 million project, in which the Government of Quebec contributed approximately $650,000 through the Quebec Plan for the Development of Critical and Strategic Minerals, was completed on time and on budget, less than six months after the start of construction.

Six employees have been hired to operate the plant, which uses an innovative process developed by RTFT to extract high purity scandium oxide from the waste streams of titanium dioxide production, without the need for any additional mining.

Commissioning work is now being undertaken as production ramps up to a capacity of three tonnes of scandium oxide per year. RTFT is already considering the potential for further investments to add additional modules in line with market demand.

Rio Tinto Iron and Titanium managing director Stéphane Leblanc said: "For the first time, customers will benefit from a North American supply of scandium oxide for applications in solid oxide fuel cells, lasers, lighting products or as an additive to produce high-performance alloys. In less than two years, we have gone from testing a process to extract this critical material in a lab to being able to supply approximately 20% of the global market. This is a testament to our team’s capacity to think outside the box and deliver on our commitments."

Quebec Minister of Energy and Natural Resources Jonatan Julien said: "I am very pleased to see this major critical and strategic minerals project come to fruition in Quebec. It will help strengthen the security of our supply and add value to our industrial waste from the mining sector. It is also consistent with the government's vision of creating wealth in a greener economy. I wish Rio Tinto Iron and Titanium and the team at this new plant every success!"

This project is part of a series of innovations supported by Rio Tinto’s Critical Minerals and Technology Centre in the field of critical minerals and materials, including the recent launch of a water atomized steel powder for 3-D printing applications.

With its world-class aluminium business, Rio Tinto is also well positioned to produce aluminium-scandium alloys to meet customer’s needs. In March, the company announced an agreement to provide a first batch of high-performance aluminium-scandium alloy from its North American operations to Amaero, a leader in metal additive manufacturing.

To learn more, visit www.elementnorth21.ca

Notes to editors

RTFT operates an open cast ilmenite mine at Lac Tio near Havre-Saint-Pierre, on Quebec’s North Shore. The ore is used to produce high-quality titanium dioxide feedstock, pig iron, steel and metal at RTFT’s metallurgical complex in Sorel-Tracy, Quebec. Together, the sites employ over 1,600 people.

RTFT has operated in Quebec for 70 years and pioneered the process of removing iron from ilmenite. In the last decade, RTFT has focused on developing, marketing and fine-tuning the UGS process, which produces slag with a very high titanium dioxide content sold to pigment producers.

Founded in 1967, RTFT’s Critical Minerals and Technology Centre conducts research on process improvement and develops new products. The Centre features state-of-the-art equipment and highly specialised instruments, such as inductively coupled plasma spectrometers, X-ray diffractometers, atomic absorption units, image analysers, scanning electron microscopes and powder metallurgy testing laboratory.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210617005667/en/

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

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Rio Tinto plc

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Category: RTFT

Excavator. Earth-Moving Heavy Equipment Construction side. Excavator on the construction side with a pile of land on the background. An Excavators are heavy construction equipment consisting of a boom, dipper, bucket and cab on a rotating platform known as the house. — China’s National Food and Strategic Reserves Administration said the move would ensure the supply and price stability of bulk commodities. Photo: Getty

Mining stocks fell on Wednesday after China's announcement to release metal reserves to curb commodity prices put miners under pressure.

Major mining stocks weighed heavy on the FTSE 100 (^FTSE) after falling on the news. Rio Tinto (RIO.L) declined as much as 0.9% and is currently trading 0.7% lower.

Anglo American (AAL.L) dropped 2% and Antofagasta (ANTO.L) was down 1.5%, Glencore (GLEN.L) crashed 2.8% and Evraz (EVR.L) declined 1.5%. BHP Group (BHP.L) also lost ground, dropping 1.1%.

"With China having driven much of the upside seen in global commodity prices over the past year, their recent efforts aimed at easing the price pressures have clearly caused major ripples throughout the sector," said Joshua Mahony, senior market analyst at IG.

China said it would release the country's reserves of major industrial metals, including copper, aluminium and zinc in batches "in the near future".

The country's stockpiling body – China’s National Food and Strategic Reserves Administration – said the move would ensure the supply and price stability of bulk commodities.

Rio Tinto shares fell as much as 0.9% on the news and are currently down 0.7%. Chart: Yahoo Finance

The reserves will be released to non-ferrous metal processing and manufacturing firms via a public bidding process. It did not specify on quantities of metal to be sold, the auction process or which manufacturers will be allowed to bid.

It came as Chinese industrial data released on Wednesday showed production grew at a less than expected rates in May as chip shortages dragged down car production.

Industrial output grew at 8.8% year-on-year in May 2021, against expectations of 9.2% growth, according to data from the National Bureau of Statistics (NBS). Production was hit by a rise in COVID infections in Guandong province and fresh restrictions have impacted a number of electronic manufacturing plants located in the region, especially chips and semiconductors.

"The declines in Chinese industrial production seen today highlight the pressure put on economic growth by rising input prices," said IG analyst Joshua Mahony. "With the Chinese announcing that they will start to periodically release reserves of aluminium, copper, and zinc, we are seeing that the country clearly has intentions to do all it can to quell the rise in commodity prices."

The State Council said in May that it would take measures to ensure supply and stable prices for commodities, and regulators had previously warned it would adopt a zero-tolerance policy to market manipulation or hoarding of metals.

The world's largest metals consumer has been struggling to tame a surge in metal prices this year fuelled by a post-COVID economic recovery, ample global liquidity and speculative buying that has dented manufacturers’ margins.

Watch: Could mining make a comeback in Cornwall?

MELBOURNE (Reuters) -BHP Group expects to present its board with a decision on whether to proceed with its Jansen potash project in Canada in a few months' time – rather than mid-year – after choosing between two port options, an executive said on Thursday.

The world's biggest miner has estimated the project in Saskatchewan province would cost up to $5.7 billion in its first phase. The project offers diversification into agriculture markets given that potash is a key element in plant nutrition that also makes crops more drought resistant.

"We are considering two options in terms of the port. One is a commercial option at the port of Vancouver, one is a greenfield option," said Ragnar Udd, president of BHP's Minerals America.

"We would like to have those locked in before we take them to the board," he said.

"We continue to expect that this (decision) will occur in the next, coming few months."

The miner expects the project will take five years to develop and have an annual production capacity of around 4.4 million tonnes of potash in its first phase. It will have capacity for an additional 12 million tonnes in stages thereafter for a life of 100 years.

Udd was speaking to investors about the outlook for the potash market, for which BHP expects demand to catch up with supply by late this decade or early next.

BHP estimated global production of potash was 76 million tonnes (Mt) in 2020, which could rise to 86 Mt when factoring in latent capacity.

It expects demand to grow by 15 Mt to around 105 Mt by 2040 or 1.5% to 3% a year, along with the global population and pressure to improve farming yields given limited land supply.

BHP sees operational expenditure at the Jansen potash mine at $100 per tonne and sustaining capital expenditure at $15 per tonne. It sees incentive pricing for new projects at $300 to $500 a tonne, with Canada the main supplier.

(Reporting by Melanie Burton; Editing by Richard Pullin and Christopher Cushing)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider Caterpillar Inc. (NYSE:CAT) for your portfolio? We'll look to this invaluable collective wisdom for the answer.

Caterpillar Inc. (NYSE:CAT) shares haven't seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 53 hedge funds' portfolios at the end of the first quarter of 2021. Our calculations also showed that CAT isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Anheuser-Busch InBev SA/NV (NYSE:BUD), Rio Tinto Group (NYSE:RIO), and Sanofi (NYSE:SNY) to gather more data points.

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.

Ric Dillon of Diamond Hill Capital

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, advertising technology one of the fastest growing industries right now, so we are checking out stock pitches like this under-the-radar adtech stock that can deliver 10x gains. We go through lists like the 10 best hydrogen fuel cell 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 view the latest hedge fund action encompassing Caterpillar Inc. (NYSE:CAT).

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

At first quarter's end, a total of 53 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CAT over the last 23 quarters. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).

More specifically, Bill & Melinda Gates Foundation Trust was the largest shareholder of Caterpillar Inc. (NYSE:CAT), with a stake worth $2355 million reported as of the end of March. Trailing Bill & Melinda Gates Foundation Trust was Fisher Asset Management, which amassed a stake valued at $1487.4 million. Citadel Investment Group, Diamond Hill Capital, and Adage Capital 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 Bill & Melinda Gates Foundation Trust allocated the biggest weight to Caterpillar Inc. (NYSE:CAT), around 11.24% of its 13F portfolio. NWI Management is also relatively very bullish on the stock, dishing out 4.83 percent of its 13F equity portfolio to CAT.

Because Caterpillar Inc. (NYSE:CAT) has experienced bearish sentiment from the aggregate hedge fund industry, it's safe to say that there lies a certain "tier" of fund managers that decided to sell off their positions entirely by the end of the first quarter. At the top of the heap, Dmitry Balyasny's Balyasny Asset Management sold off the biggest investment of the 750 funds watched by Insider Monkey, worth an estimated $19.1 million in stock, and Till Bechtolsheimer's Arosa Capital Management was right behind this move, as the fund dumped about $10.9 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let's check out hedge fund activity in other stocks – not necessarily in the same industry as Caterpillar Inc. (NYSE:CAT) but similarly valued. These stocks are Anheuser-Busch InBev SA/NV (NYSE:BUD), Rio Tinto Group (NYSE:RIO), Sanofi (NYSE:SNY), The Charles Schwab Corporation (NYSE:SCHW), Applied Materials, Inc. (NASDAQ:AMAT), TOTAL S.A. (NYSE:TOT), and International Business Machines Corp. (NYSE:IBM). This group of stocks' market values resemble CAT's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BUD,18,979916,0 RIO,25,1596509,-1 SNY,15,1142178,0 SCHW,76,4905041,15 AMAT,78,5711193,17 TOT,17,1163601,3 IBM,41,1355701,-10 Average,38.6,2407734,3.4 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 38.6 hedge funds with bullish positions and the average amount invested in these stocks was $2408 million. That figure was $4956 million in CAT's case. Applied Materials, Inc. (NASDAQ:AMAT) is the most popular stock in this table. On the other hand Sanofi (NYSE:SNY) is the least popular one with only 15 bullish hedge fund positions. Caterpillar Inc. (NYSE:CAT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CAT is 60.4. 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. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. 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 17.2% in 2021 through June 11th and beat the market again by 3.3 percentage points. Unfortunately CAT wasn't nearly as popular as these 5 stocks and hedge funds that were betting on CAT were disappointed as the stock returned -4.4% since the end of March (through 6/11) 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 many of these stocks already outperformed the market since 2019.

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

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MELBOURNE (Reuters) -BHP expects to present its board with a decision in a few months on whether to go ahead with its Jansen potash project in Canada after choosing between two port options, a company executive said on Thursday.

The world's biggest miner has estimated the project in Saskatchewan province would cost up to $5.7 billion in its first phase. The project offers BHP diversification into agricultural markets given that potash is a key element in plant nutrition that also makes crops more drought resistant.

"We are considering two options in terms of the port. One is a commercial option at the port of Vancouver, one is a greenfield option," Ragnar Udd, president of BHP's Minerals America, told investors on Thursday.

"We would like to have those locked in before we take them to the board. We continue to expect that this (decision) will occur in the next, coming few months," he added.

Chief Executive Mike Henry said at its half year results investor call that although BHP has said a decision would be made mid-2021 it was now maybe "a slightly wider range".

The miner expects the potash project will take five years to develop and have an annual production capacity of around 4.4 million tonnes in its first phase. It will have capacity for an additional 12 million tonnes thereafter for a life of 100 years.

Udd was speaking to investors about the outlook for the potash market, for which BHP expects demand to catch up with supply by late this decade or early next.

BHP estimated global production of potash was 76 million tonnes (Mt) in 2020, which could rise to 86 Mt when factoring in latent capacity.

It expects demand to grow by 15 Mt to around 105 Mt by 2040 or 1.5% to 3% a year, along with the global population and pressure to improve farming yields given limited land supply.

(Reporting by Melanie Burton; Editing by Richard Pullin, Christopher Cushing and Alexander Smith)

Rio Tinto shows improving price performance, earning an upgrade to its IBD Relative Strength Rating.

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