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An investment opportunity is unfolding that most investors are completely unaware of…

We are on the brink of a potential global shortage of a critical resource that powers the world’s most important industries…

It is essential to the U.S. military and is vital for manufacturing smartphones, tablets, high-definition TVs, semiconductors, kitchen appliances, solar panels and new cars.

The critical mineral that is so essential to multiple industries is antimony – a shiny grey metalloid with a flaky texture.

Antimony has been used for decades in military applications and is a highly critical element for the defense industry. It is necessary for armor-piercing ammunition, night vision goggles, infrared sensors, bullets, precision optics, explosive formulations, nuclear weapons semiconductors, cables, and batteries.

But with China now accounting for over 60% of global production, the U.S. and European nations are now racing to prevent a potential Chinese monopoly.

Concerns about this supply risk have already sent the price of antimony soaring more than 200% over the past year, with no end in sight.

Currently, just a handful of countries—including China and Russia—produce the majority of the world’s antimony, but there is tremendous investment potential for companies that could bring new supplies online.

Our top pick for the sector is Military Metals Corp. (CSE: MILI, OTCQB: MILIF), a British Columbia-based mineral exploration company that spotted the trend in antimony before others were aware there was even a problem. They have been on an acquisition spree of mines with large historical resources to give them the ability to move quickly in what could be an explosive space.

Potential investors should look at a number of their peers who have seen explosive share price growth over the last few months:

For example, Perpetua Resources (Nasdaq: PPTA) – a U.S.-based explorer and developer of mineral properties including antimony – has shot up 261.3% over the past eight months. The company is in the process of receiving$1.86 billion in financing from the U.S. government, including the Department of Defense to help with the company’s production of antimony at the Stibnite Gold Project located in Idaho.

Larvotto Resources Ltd. (ASX: LRV) – with mineral resource properties in Australia and New Zealand – has soared an impressive 916.95% since March of this year thanks in large part for its potential to bring new supplies of antimony online.

Military Metals is the new kid on the block with a much lower valuation, but following a recent announcement that it has purchased one of Europe’s largest antimony deposits with a historical resource in Slovakia it is now punching well above its weight.

Perpetua Resources listed above has over 90,000 tons of antimony in the ground with a valuation of close to $700 million whereas Military Metals Corp. will soon have over 60,998 tons of a historical resource of high-grade antimony and has a valuation of just $23million.

The company is now actively working to unlock the value of strategic antimony assets from multiple historical sites and potentially bring new supplies of antimony online at a time when it is desperately needed.

In North America, Military Metals Corps (CSE: MILI, OTCQB: MILIF), West Gore Property spans four exploration licenses covering 585 hectares in Hants County, Nova Scotia at a site that was once Canada’s most prominent antimony mine.

West Gore consists of an underground mine that operated between 1882 and 1939, extracting antimony from as many as seven mining levels.

During World War I, West Gore was Canada’s most prominent antimony mine, processing over 7,500 tons of ore and shipping nearly 400 tons of concentrate overseas for smelting between 1910-1911.

The combination of geology and historical mining data at this property positions West Gore as a unique and promising target for modern exploration.

Map of Military Metals’ West Gore Project Claims

Just recently – in October 2024 – the company announced the addition of key new claims surrounding its West Gore Antimony Project in Nova Scotia that adds an additional 388 hectares to the project, nearly doubling its size and potential.

This acquisition is key because it gives Military Metals complete coverage over the entire mineralized system at West Gore, enabling the company to approach the antimony-gold system in its entirety to unlock future value.

The Three Properties that are part of the recent acquisition in Slovakia offer significant upside potential as one of EU’s largest historical deposits in a publicly traded company. The country also has strong mining infrastructure and a history of being friendly towards mining operations.

Map showing the location of Military Metals Corp.’s properties in Slovakia

Digging deeper into the three properties

Trojarova Antimony Project:

The Trojarova antimony project is located near Pezinok in western Slovakia in an area that was extensively explored during the Soviet era.

The region has a rich mining history going back to the 14th century that includes antimony, gold, iron, and more.

Trojarova hosts a historical resource in category P1 in the Soviet classification system of 2.46 million metric tons at a grade of 2.48% antimony and 0.59 grams per ton gold (using a cut-off grade of 1% antimony), equivalent to 60,998 tons of contained antimony and 46,778 ounces of gold.

At today’s Antimony prices Military Metals has over $2 billion worth of In situ value of Antimony in the ground in their historical 60,998 ton resource at prices of $38,000 a ton spot price.

Tienesgrund Property:

The Tienesgrund property is located near Roznava, a historic mining town in eastern Slovakia. The site features two primary antimony-gold (Sb-Au) veins and saw limited antimony-gold production between 1840-1932.

Here is the mines timeline:1840: First recorded commercial exploitation of antimony veins.

1930s: Mines reopened, producing 1,000 tonnes of concentrate by 1932.

1950s: Underground development work including assessing the property’s tungsten potential

(found in association with antimony-gold)

Recent: Recent work includes sampling of veins on surface (grabs up to 38% antimony and

9.7gpt gold) and a LIDAR survey.

Bear Creek Property:

The Bear Creek property is located just outside the town of Hnilec in eastern Slovakia.

This property features a classic tin vein system with underground workings and historical resources. It has a calculated resource of 863,000 tonnes grading 0.19% tin using the Soviet-style classification of mineral deposits.

The location of these properties combined with the current supply-demand environment for antimony could help open the door to potential EU funding sources as the company advances these projects toward production.

What Makes Antimony so Critically Important to Many NationsThe importance of antimony in the modern world truly cannot be overstated.

Antimony’s importance dates back several decades as it was used in alloys for weapons and tools as early as the Bronze Age and through the Middle Ages.

More recently, antimony played a vital role in World War I as a strengthening component for ammunition and in supporting military communications. In World War II, antimony’s role expanded further, particularly in the production of lead-based alloys for bullets and other ammunition. Additionally in World War II, antimony was given the nickname “Hero Metal”, it was credited with saving countless American troops as an antimony compound was used to fireproof tents and vehicle covers to suppress the spread of flames.

In today’s modern military world, the availability of antimony is crucial for maintaining defense readiness and technological superiority.

The last time antimony was trading at all-time highs was back in World War II.

Modern military applications for antimony include the manufacture of infrared sensors, night vision goggles, armor-piercing bullets, explosive formulations, nuclear weapons, and more.

In short, the U.S. military would be lost without access to consistent supplies of antimony.Military Metals (CSE: MILI, OTCQB: MILIF), is rapidly emerging as a leader in the exploration and discovery of the metals that make a difference in defense technology.

By focusing on critical resources like antimony, the company helps provide the essential materials that strengthen military equipment and infrastructure.

And the company’s acquisition strategy could pay off in a huge way for investors in the months ahead.

In addition to its recent acquisition of more territory in Nova Scotia, Canada, the company also recently expanded its portfolio of mineral resource assets in Slovakia.

In October 2024, the company announced it had purchased the Trojarova Antimony Project, Tienesgrund Antimony project and the Medvedi Tin Project, which are located in Slovakia and contain historical resources. Slovakia is a member of the European Union, which has adopted the Critical Raw Materials Act to support domestic projects for critical metals.

The acquisition of these properties strategically positions them as a leading explorer and potential developer of antimony.

This commitment to becoming a leading explorer of antimony is likely to generate considerable attention as the company’s projects progress in the months ahead as the U.S. military – as well as European nations – continue to search for new supplies.

Chinese Export Restrictions put even Greater Pressure on Antimony SupplyThe recent restrictions placed on the exporting of antimony, which took effect September 15, pose a serious threat to the U.S. and other nations.

Without access to China’s supply, the U.S. and other nations could face significant challenges, which makes bringing new potential supplies online even more important.

“China to limit antimony exports in latest critical mineral curbs.”– CNN, August 15, 2024

This restriction of exports for a critical mineral is something China has done before.

In fact, in 2023 China began implementing exports restrictions for gallium, germanium and graphite in response to the U.S. establishing export controls of its own on advanced semiconductor chips to China.

This combination of declining production from China – along with new export restrictions – as well as increasing demand for antimony worldwide has already sent antimony prices to record highs.

And those prices are expected to climb even higher.

According to expert Chetan Soni at consultancy CRU, “Given we are still at record prices, it’s likely that prices will go even higher with this announcement (regarding export restrictions).”

Soni added that prices could reach as high as $30,000 – up from current levels of roughly $22,500 – as buyers would be looking to secure material for future production.

As of right now current prices of Antimony are trading at over $38,000 a tonne as of Nov 18 2024 surpassing Chetan Sonis predictions of $30,000 back in 2023.

The Bottom Line: Soaring Antimony Prices Have Triggered High Upside OpportunityThere is no question that a high-upside scenario has developed quickly for antimony, a critical mineral needed for a number of vital military and high-tech applications.

With potentially declining production – and a restriction on Chinese exports – prices for antimony have already climbed to record highs, with experts calling for even higher prices in the months ahead.

All of this creates an environment where those companies who offer the potential to bring new supplies of antimony online quickly could see significant increases in valuation.

This has already been seen with companies like U.S.-based Perpetua Resources (Nasdaq: PPTA), which has shot up 261.3% over the past eight months and Australia-based Larvotto Resources Ltd. (ASX: LRV), which is up a staggering 916.95% since March of this year.

Military Metals (CSE: MILI, OTCQB: MILIF), with its acquisition strategy and its growing portfolio of mineral assets in Canada and Slovakia, could become the next company to help investors take advantage of soaring antimony prices and collect potential windfall profits.

Other Resource Companies to Watch

Rio Tinto (NYSE: RIO) is a global mining giant with a finger in just about every pie when it comes to essential resources. From aluminum and copper to diamonds and uranium, this UK-Australian company operates in 35 countries, digging up the raw materials that make modern life possible. But it's not just their size and scope that makes them stand out; Rio Tinto is also committed to doing things the right way.

They're investing heavily in innovation and sustainable mining practices. This means they're not just focused on extracting resources; they're also working to minimize their environmental impact and rehabilitate the land they mine. Think renewable energy, cutting-edge technology, and a commitment to leaving things better than they found them. This forward-thinking approach is good for the planet and makes good business sense, ensuring the long-term viability of their operations.

Rio Tinto sees sustainability as a core part of its business strategy, not just a PR move. They're setting a high bar for the mining industry, showing that it's possible to be both profitable and responsible. By embedding sustainable practices throughout their operations, they're creating value for their shareholders while minimizing their environmental footprint. This commitment to doing good while doing well makes them a leader in the global mining industry.

BHP Group’s (NYSE:BHP) is a global mining powerhouse with a presence on several continents. From the massive iron ore mines in Australia to copper and coal operations in the Americas, BHP digs up the essential resources that fuel our modern world. This diverse portfolio and global reach make them a key player in meeting the world's growing demand for raw materials.

But BHP is not just about extracting resources; they're also committed to doing it responsibly. They've set ambitious targets to shrink their environmental footprint, investing in technologies to reduce greenhouse gas emissions and improve water efficiency. They also work closely with local communities to minimize the impact of their operations. This dedication to sustainability has earned them a spot as a leader on the Dow Jones Sustainability Index.

In a world where consumers and investors are increasingly focused on ethical and environmentally responsible practices, BHP's commitment to sustainability gives them a competitive edge. By prioritizing responsible mining, they're not just digging up resources; they're building a sustainable future. This commitment to doing good while doing well sets them apart in the global mining industry.

Albemarle Corporation (NYSE:ALB), headquartered in Charlotte, North Carolina, is a global specialty chemicals company with a rich history and a strong focus on innovation. While they might not be a household name, their products touch many aspects of our lives, from the batteries in our smartphones to the medicines we take. Albemarle operates across three main segments: Lithium, Bromine Specialties, and Catalysts.

Interestingly, Albemarle's roots go all the way back to 1887 when they started as a paper manufacturing company. Over the years, they strategically diversified, evolving into the global specialty chemicals leader they are today. A major turning point was their merger with Ethyl Corporation in 1994, which significantly expanded their product portfolio and market reach.

Today, Albemarle is perhaps best known as the world's largest lithium producer. With the rise of electric vehicles and increasing demand for lithium-ion batteries, Albemarle is at the forefront of this rapidly growing market. They've been investing heavily in expanding their lithium production capacity, including building a new lithium hydroxide plant in North Carolina. This strategic focus on lithium positions Albemarle as a key player in the transition to cleaner energy and a more sustainable future.

SQM (NYSE: SQM), a Chilean chemical company, is a major player in the lithium market. They're one of the world's leading producers of this crucial element, which is used in everything from electric vehicle batteries and smartphones to increasingly important military technologies. Think advanced communication systems, unmanned vehicles, and drones – all powered by lithium-ion batteries. SQM's vast lithium reserves in the Atacama Desert and their impressive production capacity make them a critical link in the global lithium supply chain.

Why does this matter? For countries like the United States, which rely heavily on advanced technology for their defense, having a reliable source of lithium is crucial. By sourcing lithium from SQM, nations can reduce their dependence on potentially unstable or unfriendly countries, ensuring a steady supply of this essential material for their defense industries. This helps avoid potential supply chain disruptions and ensures that militaries have the resources they need to produce the equipment and weapons systems necessary for national security.

SQM also stands out for its commitment to sustainable lithium extraction. In a world increasingly focused on responsible sourcing and minimizing environmental impact, SQM's efforts to reduce their footprint in the Atacama Desert are essential. This commitment ensures that the lithium used in defense applications is produced in a way that is both environmentally and socially responsible.

Perpetua Resources (NASDAQ:PPTA) is an American company focused on developing the Stibnite Gold Project in Idaho, a project with the potential to significantly boost domestic production of both gold and antimony. Antimony is a critical mineral used in a wide range of applications, from flame retardants and batteries to ammunition and military equipment. Currently, the US relies heavily on imports for its antimony supply, making this project strategically important for strengthening domestic production and reducing reliance on foreign sources.

The Stibnite Gold Project has garnered strong support from the US government, including significant funding from the Department of Defense. This highlights the project's importance for national security and its potential to bolster the domestic supply chain for critical minerals. The project is expected to be a major source of gold and the only domestic producer of antimony, contributing to economic growth and job creation in Idaho while also ensuring a more secure and reliable supply of these essential resources.

Beyond its economic and strategic benefits, Perpetua Resources is committed to responsible mining and environmental stewardship. The company plans to revitalize a historic mining area in Idaho, employing modern mining practices to minimize environmental impact and restore the site after mining is complete. This commitment to sustainability aligns with the growing emphasis on responsible sourcing and environmentally conscious practices in the mining industry.

Cleveland-Cliffs Inc. (NYSE:CLF) is a major force in the American steel industry and a vital partner to the US defense sector. As North America's largest producer of flat-rolled steel, they provide the essential materials used to build everything from military vehicles and ships to aircraft and critical infrastructure. This makes them a crucial link in the defense supply chain, ensuring that the US military has the resources it needs to maintain its readiness and protect national security.

One of the key reasons Cleveland-Cliffs is so important to US defense is that they provide a domestic source of steel. This reduces reliance on foreign suppliers, which can be vulnerable to disruptions during times of conflict or global instability. By sourcing steel from Cleveland-Cliffs, the US can ensure a stable and reliable supply of this critical material, strengthening the resilience of the defense industrial base.

Furthermore, Cleveland-Cliffs is committed to sustainable practices, including responsible mining and the use of renewable energy. This is increasingly important in the defense sector, as there's a growing emphasis on minimizing environmental impact and promoting responsible resource management. Cleveland-Cliffs' dedication to sustainability aligns with these goals, contributing to a more environmentally conscious and resilient defense industry.

Southern Copper Corporation (NYSE: SCCO) is a major player in the copper industry, with extensive mining operations in Mexico and Peru. Copper is essential for a wide range of industrial applications, including many within the defense sector. It's used in everything from ammunition and electrical wiring to electronic components found in various military equipment. This makes Southern Copper a crucial partner in meeting the copper needs of the US defense industry.

Having a reliable and consistent supply of copper is vital for the production of critical defense equipment and ensuring the US military's operational readiness. Southern Copper's large production capacity and focus on efficiency make them a dependable supplier, strengthening the stability and resilience of the defense supply chain.

But Southern Copper is more than just a copper producer. They are also committed to sustainable mining practices and community development. They actively work to minimize their environmental impact and engage with local communities, promoting responsible sourcing of this important resource. This commitment to ethical and sustainable practices enhances the integrity of the defense supply chain and contributes to responsible resource management.

Cameco Corp (NYSE: CCJ) isn't just a uranium mining company; they're a key player in global energy security. As a leading provider of uranium fuel, they have a hand in powering homes and businesses around the world. But their impact goes beyond keeping the lights on. Cameco's uranium also plays a vital role in national defense, fueling the nuclear reactors that power submarines and aircraft carriers. This makes them a crucial partner in ensuring the operational readiness of the US Navy and its ability to protect national interests.

What sets Cameco apart is their commitment to responsible mining. They operate in Canada and the United States, adhering to strict safety and environmental regulations. This focus on sustainability ensures that they extract uranium in a way that minimizes their environmental impact and protects the health and safety of their workers and surrounding communities. By prioritizing responsible practices, Cameco is helping to ensure the long-term viability of the nuclear industry and its role in providing clean and reliable energy.

With the growing focus on reducing carbon emissions and achieving energy independence, Cameco's role is becoming increasingly important. They are not only providing the fuel for clean energy generation but also contributing to national security by supporting the US nuclear deterrent. As the world seeks reliable and sustainable energy solutions, Cameco is well-positioned to play a crucial role in shaping the future of the nuclear industry.

Teck Resources Limited (NYSE:TECK) is a major global mining company headquartered in Vancouver, Canada. They have a diverse portfolio of mining operations across North and South America, producing a variety of essential metals and commodities, including zinc, copper, coal, lead, and silver. This makes them a significant contributor to the global supply of these important materials, which are used in everything from construction and manufacturing to technology and energy.

Teck is particularly important in the zinc market, where they hold a strong position as the world's second-largest producer. Zinc is a versatile metal used in numerous applications, including the production of galvanized steel, batteries, and chemicals. This makes Teck's zinc production vital for supporting key industries and driving economic growth.

Looking ahead, Teck's operations are strategically significant due to the increasing demand for battery metals. Zinc plays a crucial role in various battery types, including those used in electric vehicles. As the world transitions towards cleaner energy solutions and electric vehicles become more prevalent, Teck's zinc production will be essential in meeting the growing needs of this market. This positions the company as a key contributor to a more sustainable future.

By. Tom Kool

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A little-known metal called Antimony rallied 300% this year, overtaking gold, silver, and even Bitcoin.

And there is something that the algorithm gods haven’t noticed.

You see, Western powers have embarked on a $100 billion spending spree to restock their armories.

Cruise missiles, artillery shells, javelins, bullets, and armored vehicles. They ALL contain antimony, and the worst news is that the U.S. doesn’t produce an ounce of it.

This huge price spike that followed China’s decision to cut antimony supply to the U.S. this summer was the final wake-up call, and under Trump, the U.S. will no longer stand idle.

Following the rally in gold earlier this year, gold miners are the first to pick up the slack as Western governments are backing billions of dollars in loans for the world’s most promising new sources of antimony supply.

Consider Australia’s Larvotto, which boasts the country’s largest antimony deposit and owns the Hillgrove gold-antimony project near Armidale, New South Wales. Year-to-date, the stock is up almost 600% since the start of 2024.

And it’s newcomers like Military Metals Corp. (CSE:MILI; OTCQB:MILIF) that could be the next big winners.

Reviving World-Class Antimony Properties

Military Metals has acquired two of the top ten Antimony projects in the world and is rapidly bringing onstream a new source of antimony supply.

One of their most significant acquisitions is the Trojarova project in Slovakia.

This historic antimony deposit, dating back to the Cold War, holds an estimated 60,998.4 tons of antimony – an in situ resource now valued at an astounding $2 billion.

Source: Military Metals Corp.

Discovered in the 1950s and explored further in the 80s and 90s, Trojarova's development was suddenly halted as the Cold War ended and antimony's strategic importance faded.

But the world has changed.

Geopolitical instability is the new normal, and with NATO countries spending tens of billions of dollars to re-stock their depleted arsenals, the demand for antimony is peaking.

Military Metals Corp. CEO Scott Eldridge believes the richest part of the deposit remains untouched.

For Slovakia, reviving Trojarova is a golden opportunity to become a key player in the European critical metals landscape. With tensions escalating with Russia and China, securing domestic antimony sources is crucial. Trojarova could be the solution, providing Slovakia with a strategic advantage and strengthening its position within the European Union.

Slovakia's existing mining infrastructure aligns perfectly with the EU's Critical Raw Materials Act. This opens doors for potential EU funding, including potential grants, further incentivizing Trojarova's development and positioning Military Metals Corp. as a vital partner in Europe's quest for critical mineral security.

But Military Metals (CSE:MILI; OTCQB:MILIF) isn’t concentrating all of its effects on a single continent: it’s also making huge moves back in North America, in Canada’s famous WWI antimony mine in Nova Scotia.

The redevelopment of the West Gore mine represents more than just a business venture; it’s a strategic initiative to bolster North America’s supply of antimony, a mineral deemed essential for national security.

The West Gore Antimony Project, recently acquired by Military Metals Corp., holds impressive historical resources, including drilling results of over 7 meters grading 10.6 g/t gold and 3.4% antimony. Building on this legacy, the company took another significant step on October 24, 2024, signing an LOI to acquire additional claims flanking West Gore to secure coverage over the entire mineralized system.

Is This The World’s Most Undervalued Antimony Pure-Play?

Military Metals Corp. is valued at only $12 million right now; but its new play in Slovakia is valued at $2 billion in situ of ore at today’s Antimony spot prices. And that’s only one of its new antimony acquisitions. When you add the potential of West Gore in Nova Scotia, valuations could get even more attractive.

This isn’t just speculation, the U.S. government has already started investing heavily in securing domestic sources of critical minerals, and is pushing to bring the production and refining of critical metals such as antimony back to North America. With billions of dollars being allocated to secure domestic mineral supplies, companies like Military Metals Corp. stand to gain substantial financial support.

Here are 5 reasons to keep an eye on Military Metals (CSE:MILI; OTCQB:MILIF)

Antimony prices have surged nearly 300% in 2024, rising from $11,000 per ton to over $40,000 per ton, with forecasts predicting $50,000+ per ton in 2025.

Rising Demand: The global push to replenish military stockpiles and advance green technologies is driving unprecedented demand for Antimony.

Military metals has aggressively acquired world-class antimony properties in Europe and North America, turning it into a potential key supplier to both NATO and North American defense industries.

Military Metals currently has a market cap of just $12 million, while it’s sitting on properties that could be worth more than $2 billion In situ at today’s Antimony prices.

Western governments are fast-tracking antimony mine developments and have been backing billion-dollar loans for similar mining projects.

Other resource companies to keep an eye on:

Piedmont Lithium (NASDAQ: PLL)

Piedmont Lithium is an American company working to become a major player in the electric vehicle battery industry. They're doing this by producing lithium hydroxide, a key ingredient in these batteries, right here in the US.

Why is this so important? Well, currently, the US relies heavily on imports for its lithium supply. This can be risky, as any disruptions to the global supply chain could affect the production of things like electric vehicles and even defense technologies like drones and communication systems. Piedmont Lithium wants to change that by providing a reliable, domestic source of lithium.

Their main operations are located in North Carolina, in an area known for its lithium deposits. What's really great about Piedmont Lithium is their commitment to doing things the right way. They are focused on responsible mining practices that are good for both the environment and the local community. This means they are working to minimize their impact on the environment and ensure their operations benefit the people in the area.

In short, Piedmont Lithium is working to strengthen the US battery industry, reduce reliance on foreign lithium, and do so in a way that is environmentally and socially responsible.

Lithium Americas (NYSE: LAC)

Lithium Americas is all about bringing more lithium production to the Americas. They're working on lithium projects in the United States, with a big focus on their Thacker Pass project in Nevada. This project has the potential to be a major source of lithium for North America, which is a big deal because lithium is essential for electric car batteries and renewable energy storage.

What makes Lithium Americas stand out is their commitment to doing things the right way. They're not just focused on digging up lithium; they're also focused on protecting the environment and working closely with local communities. They want to make sure their operations are sustainable and benefit everyone involved.

By producing lithium in North America, Lithium Americas is helping to create a more reliable and secure supply of this critical mineral. This is important because it reduces our dependence on lithium from other parts of the world and supports the growth of clean energy technologies.

Nucor (NYSE: NUE)

Nucor is a leading steel producer in the United States, and they're doing things differently. They're known for using a modern technology called electric arc furnaces, which allows them to create high-quality steel from recycled scrap metal. This not only makes them a leader in sustainable manufacturing but also reduces their environmental impact.

Nucor produces a wide variety of steel products used in many industries, from the cars we drive to the buildings we live and work in. This makes them a crucial player in the U.S. economy and ensures a reliable domestic supply of steel for essential infrastructure and defense needs.

One of the things that sets Nucor apart is its dedication to sustainability. By using recycled materials and innovative technology, they are minimizing their environmental footprint and contributing to a greener future. This commitment to responsible manufacturing makes them a valuable asset to both the economy and the environment.

Vale S.A. (NYSE: VALE)

Vale S.A. is a global mining giant and a major player in the production of iron ore and nickel. These materials are essential for a wide range of industries, from the cars we drive to the buildings we construct. In particular, nickel is crucial for high-performance applications, including those in the defense sector.

Vale's operations span the globe, with key sites in Brazil, Canada, and beyond. This makes them a vital part of the global supply chain for these important resources. By providing a reliable source of iron ore and nickel, Vale contributes to the manufacturing of critical equipment, infrastructure, and advanced technologies, including those used for national defense.

Beyond its size and production capacity, Vale stands out for its commitment to responsible mining. They are actively working to reduce their environmental impact, protect biodiversity, and support the communities where they operate. This dedication to sustainability ensures that the resources they provide are sourced ethically and with minimal environmental disruption, which is essential for the long-term health of our planet and industries that rely on their products.

Uranium Energy Corp (NYSE American: UEC)

Uranium Energy Corp is an American company focused on uranium mining. They operate primarily in Texas, Wyoming, and New Mexico, using a technique called in-situ recovery (ISR). This method is considered more environmentally friendly than traditional uranium mining, as it involves less disruption to the land.

Why is this company important? Well, they're playing a key role in reviving the uranium mining industry in the United States. For both energy and national security reasons, it's becoming increasingly important for the US to have its own source of uranium. Uranium Energy Corp is helping to make that happen in a way that is more sustainable and has less impact on the environment.

Another important aspect is that by producing uranium domestically, Uranium Energy Corp helps reduce reliance on foreign sources. This is crucial for national security because it ensures the US has a steady supply of uranium for its nuclear power needs and defense purposes, without having to rely on other countries.

Reliance Steel & Aluminum (NYSE: RS)

Reliance Steel & Aluminum is a major player in the metals industry. They don't just provide metal, they offer a whole range of services, from processing to distribution, making them a one-stop shop for businesses needing metal products. This is especially valuable for industries like aerospace and defense, where specialized metals are needed for things like aircraft and weapons systems.

With a vast network of service centers across North America, Reliance Steel & Aluminum ensures that its customers, including defense contractors, get the materials they need, when they need them. This reliability is crucial for keeping important defense projects on track and ensuring that the US military has the equipment it needs to operate effectively.

But Reliance Steel & Aluminum goes beyond just delivering metal. They also offer services that help their customers save time and money. They can cut, shape, and machine metal to exact specifications, which streamlines the manufacturing process for defense contractors and helps keep costs down.

By providing these essential services, Reliance Steel & Aluminum plays a critical role in supporting the US military and ensuring its readiness. They are a key partner in strengthening national security through their reliable supply chain and value-added services.

Compass Minerals International (NYSE: CMP) is a leading provider of essential minerals that touch various aspects of our daily lives. While they are well-known for their salt products, used to de-ice roads in winter and soften water in our homes, Compass Minerals plays a much broader role in various industries. Their magnesium chloride is used in dust control and agriculture, while their sulfate of potash serves as a valuable fertilizer ingredient. This diverse product portfolio highlights their commitment to providing essential resources for a variety of applications, contributing to infrastructure safety, agricultural productivity, and industrial processes.

What truly sets Compass Minerals apart is their forward-thinking approach to sustainability and innovation. Recognizing the growing importance of lithium in the transition to a cleaner energy future, they are strategically positioning themselves as a key player in the lithium market. Their focus on sustainable lithium extraction from brine resources, particularly at their Great Salt Lake facility in Utah, demonstrates their commitment to responsible sourcing and environmental stewardship. This initiative not only aligns with the increasing demand for electric vehicles and battery technology but also showcases their dedication to minimizing their environmental footprint while contributing to a more sustainable global economy.

Compass Minerals' commitment to sustainable practices extends beyond their lithium operations. They are actively engaged in reducing their environmental impact across all their operations by implementing water conservation measures, reducing greenhouse gas emissions, and promoting responsible land management.

By embracing innovation and investing in sustainable technologies, Compass Minerals is demonstrating its commitment to long-term growth and environmental responsibility. This approach ensures that they not only meet the current needs of various industries but also contribute to a more sustainable future for generations to come.

FMC Corporation (NYSE: FMC) is a global agricultural sciences company dedicated to helping farmers nourish the world. They develop and deliver innovative solutions to growers around the globe, focusing on crop protection, plant health, and professional pest and turf management. FMC's products and technologies help farmers increase yields, improve crop quality, and combat pests and diseases, ultimately contributing to a more sustainable and secure food supply.

While FMC may not be involved in traditional mining activities, they have a significant stake in the lithium market. Lithium is a critical component in rechargeable batteries, which are essential for electric vehicles, portable electronics, and renewable energy storage. FMC's lithium business, which they divested in 2018, played a crucial role in the development of the lithium industry. This history highlights their commitment to innovation and their involvement in key sectors driving technological advancements and sustainable solutions.

FMC's dedication to sustainability is evident in their agricultural practices. They are committed to developing products and technologies that minimize environmental impact while maximizing crop production. This includes a focus on integrated pest management solutions, which reduce reliance on traditional pesticides, and the development of biological products that promote plant health and soil fertility. By promoting sustainable agricultural practices, FMC is helping to address global food security challenges while minimizing the environmental footprint of agriculture.

By. Josh Owens

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. The forward-looking statements in this publication are based on current expectations and assumptions about future events, geopolitical developments, trade policies, market conditions, the company’s strategic initiatives to address the critical shortage of antimony, and current expectations, estimates, and projections about the industry and markets in which the company operates. Factors that could change or prevent these statements from coming to fruition include, but are not limited to, the potential impact of the upcoming U.S. elections on various industries and specific companies, changes in government policies, market conditions, regulatory developments, geopolitical events and the company’s ability to successfully acquire and develop new antimony resources and fluctuations in antimony prices. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

DISCLAIMERS

SHARE OWNERSHIP. The owner of Oilprice.com owns shares of the companies featured in this article and therefore has an incentive to see the featured companies’ stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of the featured companies in the market. The owner of Oilprice.com will be buying and selling shares of the featured companies for its own profit and may take this opportunity to liquidate a portion of its position. Accordingly, our views and opinions in this article are subject to bias, and why we stress that you should conduct your own extensive due diligence regarding the featured companies as well as seek the advice of your professional financial advisor or a registered broker-dealer before you consider investing in any securities of the featured companies or otherwise.

NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. You should not treat any opinion expressed herein as an inducement to make a particular investment or to follow a particular strategy, but only as an expression of opinion. The opinions expressed herein do not consider the suitability of any investment with your particular objectives or risk tolerance. Investments or strategies mentioned in this article and on our website may not be suitable for you and are not intended as recommendations.

TRX Gold Corporation (TRX) : Free Stock Analysis Report

BHP Group is a high-dividend payer that might be of interest to income investors. BHP stock currently pays a 5.5% yearly dividend and has strong support around the 50 level. One way to take ownership of a stock for less than the current price is via a cash-secured put option trade.

Amazon (AMZN)

Thousands of Amazon staff in more than 20 countries are set to protest or strike on Black Friday in a push for better workers' rights.

The international strike action is taking place on one of the busiest shopping days of the year and has been coordinated by the Make Amazon Pay campaign.

In addition to the drive to improve workers' rights at Amazon, the strikes and protests are also to highlight the US retailer's environmental impact.

More than 80 organisations are part of the Make Amazon Pay campaign and since 2020, it has organised four days of global action on Black Friday.

The general secretary of the UNI Global Union, Christy Hoffman, said: "No matter how much they spend to fight us, corporations like Amazon cannot break the power of workers standing together."

"Make Amazon Pay Day is a powerful testament to our unity and momentum," she said. "No company —no matter how wealthy — can silence the cause of workers demanding justice."

A spokesperson for Amazon had not responded to Yahoo Finance UK's request for comment at the time of writing.

Shares in the US retailer closed Wednesday's session down 1%, as US markets were closed for the Thanksgiving holiday on Thursday. Trading in New York will resume on Friday but markets are due to close earlier.

The Walt Disney Company (DIS)

Moana 2, the sequel to one of the biggest hits on the Disney+ streaming platform is debuting in cinemas this weekend.

While the first "Moana" wasn't a major hit when it was released in cinemas in 2016, it became a smash on Disney's streaming platform. Nielsen's 2023 "Streaming upwrapped" data showed that since it started measuring streaming, audiences had watched nearly 80 billion minutes of Moana, which was released on Disney+ in late 2019, which translated to watching the full film 775 million times.

Box Office Guru founder and editor Gitesh Pandya told Yahoo Finance earlier this week that the highly anticipated Moana 2 is a "guaranteed hit".

Combined with the second weekend of Gladiator II and Wicked in theatres in the US, that this looked to be "probably the biggest Thanksgiving box office in over a decade".

He said this was set to give the film industry a much-needed boost, with "hardly any big blockbuster films" having come out in recent months.

Another big focus for Disney is its cruise ships business, with its Disney Treasury ship set to take its maiden voyage on 21 December.

This is Disney's sixth ship and is part of the company's experiences segment, which also includes its theme parks business, that represents a key area of growth that's rapidly expanded in recent years.

Disney shares closed Wednesday's session up nearly 2%.

ASML (ASML.AS, ASML)

Chip stocks in Asia and Europe rose on Thursday, following reports that the US was considering toned-down restrictions on semiconductor sales to China.

Bloomberg reported on Thursday that the additional restrictions being considered by president Joe Biden's administration on the sales of semiconductor equipment and AI memory chips to China, could stop short of some stricter curbs that had previously been proposed.

A spokesperson from the US Commerce Department’s Bureau of Industry declined to comment when contacted by Yahoo Finance UK.

The Amsterdam-listed shares of ASML, which manufactures lithography machines that are key to making chips, was among those that rose on the back of these reports. However, shares have since eased back and were trading flat on Friday morning.

In a note released last week, Barclays (BARC.L) equity researchers Simon Coles and Rohan Bahl said they maintained an overweight rating on ASML.

They said that the company's recent capital markets day, which is a day for investors, was "largely reassuring".

"ASML addressed many concerns at its CMD which should provide some comfort on the scope for long-term growth," they said.

Adani Green Energy (ADANIGREEN.NS)

Shares in Indian renewable energy company Adani Green Energy continued to rally on Friday on the back of a company statement in response to recent media reports of bribery charges by US federal prosecutors.

The stock surged 21% on Friday, while Adani Energy Solutions (ADANIENSOL.NS) entity shares jumped 14.5%.

Shares of companies under Adani Group plunged last week after it was reported that US prosecutors charged its billionaire owner Gautam Adani over an alleged $250m (£197m) bribery scheme.

US federal prosecutors were said to have alleged that Adani and seven other defendants were involved in a scheme to bribe Indian officials to win contracts in relation to a solar power project.

However, in a statement released on Wednesday, Adani Green Energy company secretary Pragnesh Darji said that reports that certain directors — namely Gautam Adani, his nephew Sagar Adani and the company's CEO Vneet Jaainhad – been charged with violations of the U.S. Foreign Corrupt Practices Act were "incorrect".

Anglo American (AAL.L)

Miner Anglo American was the biggest riser on the FTSE 100 (^FTSE) on Friday morning, up nearly 3%.

Shares have been on the rise this week after Anglo American said it had agreed to sell its remaining steelmaking coal business to Peabody Energy for up to $3.8bn.

The company said it would generate a total of $4.9bn from the sale of its steelmaking coal business. This included the already announced sale of its interest in Queensland-based coal company Jellinbah Group for around $1.1bn, in addition to its deal with Peabody.

On Friday, the Financial Times reported that challenges at rival BHP's (BHP.L) Escondida mine, which is the world's largest copper mine, prompted speculation as to whether it would make a fresh bid for Anglo American.

BHP's initial £39bn takeover for Anglo American fell through earlier this year but a six-month restriction on making a new offer after the withdrawal of its previous bid ends on Friday.

Other companies in the news on Friday 29 November:

Shopify (SHOP)

Peel Hunt (PEEL.L)

Frontline (FRO)

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

TRX Gold (TRX) came out with quarterly earnings of $0.01 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this mineral resource company would post earnings of $0.01 per share when it actually produced a loss of $0.01, delivering a surprise of -200%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

TRX Gold , which belongs to the Zacks Mining – Gold industry, posted revenues of $13.62 million for the quarter ended August 2024, missing the Zacks Consensus Estimate by 17.44%. This compares to year-ago revenues of $9.19 million. The company has topped consensus revenue estimates just once over the last four quarters.

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

TRX Gold shares have lost about 7.3% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for TRX Gold?

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

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

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $19.5 million in revenues for the coming quarter and $0.07 on $70.65 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining – Gold is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Compass Minerals (CMP), another stock in the broader Zacks Basic Materials sector, has yet to report results for the quarter ended September 2024.

This minerals producer is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of -666.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Compass Minerals' revenues are expected to be $208.88 million, down 10.6% from the year-ago quarter.

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

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

As U.S. President Biden nears the end of his term, there’s one little-known metal whose scarcity is keeping him up at night even today. And analysts warn that President-elect Donald Trump is likely to inherit this headache too.

The metal is not gold, silver, or uranium. It’s not the lithium used for EV batteries. It’s not the copper that is essential for electrification. It’s not even the rare earth elements that are crucial for everything from smartphones to wind turbines.

This metal has a global annual production of less than 100,000 tons – a small fraction of the lead, copper, and iron produced every year. But it is a vital component in everything from armor-piercing bullets, nuclear weapons, explosive missiles to fire retardants in electronics and military uniforms. Most importantly, there are no viable alternatives at the moment.

But one forward-looking company, Military Metals Corp. (CSE:MILI; OTCQB:MILIF), has recently purchased historically-proven deposits that could swiftly address America's most pressing resource vulnerability in recent times.

The metal we’re talking about is antimony, and its scarcity has Western governments rattled.

Military Metals CEO Scott Eldridge sees a major antimony supply crunch coming. And antimony prices this year, along with new Chinese restrictions add extra support to that prediction with prices tripling since earlier this year from $12,000 per ton to $38,000. That’s why the company acquired past-producing antimony mines on two continents at breakneck speed.

But first, let’s zoom in on antimony demand, and prices, and why they are going through the roof right now.

The Global Antimony Supply Squeeze

The current crisis stems from China’s dominance in both global antimony production and refining. China, Russia, and Tajikistan control 85% of the world’s antimony supply.

Antimony is not easy to extract and it’s often a by-product in the extraction of other metals like gold, silver, or copper. And China, which also currently controls 65% of global antimony refining capacity, has just imposed troubling new restrictions on its export.

Because China controls most of the world’s antimony, when they cut supply Western military supply chains are directly impacted.

According to a recent article published by the Center for Strategic and International Studies (CSIS) in Washington, D.C., the U.S. only has 20 days’ worth of antimony inventory. Germany has just 2 days’ worth of munitions supply. And geopolitical tensions in Ukraine, the Middle East, Afghanistan, and other places continue to aggravate the demand for antimony.

So, antimony demand from defense is at record highs right now, and it’s only going to increase exponentially in the years to come.

Washington's $1.8 Billion Antimony Push

All these factors have together pushed antimony prices past $38,000 per ton – a 300% price increase in just the last 24 months. And this might just be the start!

Understandably, political support for securing critical mineral supply chains across the globe is intensifying.

Major economies like the U.S., Canada, the U.K., Japan, Australia, the European Union, and South Korea have all classified antimony as a “critical mineral.” And the U.S. government is keen on backing domestic antimony projects to reduce dependence on Chinese imports.

As a part of that initiative, Perpetua Resources Corp., a mining company focused on developing gold-antimony deposits in the Stibnite district of Idaho, is securing a $1.8B loan from U.S. Export-Import Bank, along with an additional $60M from the Department of Defense.

As a result, Perpetua’s stock has shot up over 400% since March this year.

But this rapid surge is just one example of the antimony sector's explosive potential.

Now, Military Metals Corp (CSE:MILI; OTCQB:MILIF), an under-the-radar company with premium assets in friendly NATO territory is positioning itself for even bigger success…

The company recently announced that it has purchased one of Europe’s largest antimony deposits in Slovakia. The flagship Trojarova property here features a historical Soviet-era resource of 61,998.4 tonnes of antimony which has a in-situ value of over $2 billion of antimony in the ground at today’s spot prices. Located just 30 minutes from Bratislava with excellent infrastructure, the company thinks they can fast-track this project with a resource estimate within 6 months.

Then there’s the Tienesgrund property, also in Slovakia, which covers 13.38 km² and encompasses 40-50 historical mining tunnels dating back to 1840. Historical Soviet-era work estimated 162t with an average grade of 7.7% antimony here, and the company expects to establish a resource within 12 months.

Their West Gore property in Nova Scotia, which was one of Canada's largest antimony producers during World War I still holds significant unmined material. Historical ore extracts showed as high as 46% antimony content.

Lastly, their Bear Creek property in Slovakia is a historical high-grade tin resource. The company got this project as a part of their Slovakia deal, but they’re thinking of divesting this to get money for their antimony projects.

Key Factors Driving Military Metals Corp.’s Story

At this critical point in the antimony market, Military Metals Corp. stands out for five key reasons…

Significant Growth Potential: Even though the Military Metals Corp. stock has seen a substantial run in recent times, with the current market cap of just $23M vs real asset potential, there’s a lot more upside yet to be unlocked.

Rising Market Awareness: Growing media coverage in the Financial Times, Forbes, etc., gives early investors a massive advantage in capitalizing on the coming antimony surge.

Pure Antimony Play: Unlike gold or oil, there are no ETFs or futures contracts to trade antimony. Equity investments into junior mining companies, like Military Metals Corp., is the only real way to get exposure to antimony.

Premium Asset Portfolio: The company has assets located at three prime locations in Slovakia and one location in Canada. Plus, the project qualifies under the European Critical Raw Materials Act, potentially helping to accelerate its development.

To sum up, as global demand for antimony continues to rise and geopolitical tensions persist, securing stable supplies outside of China’s control remains a key challenge for Western nations.

8 bonus stocks to keep an eye on:

Freeport-McMoRan Inc. (NYSE: FCX) Freeport-McMoRan Inc. based in Phoenix, Arizona, is one of the world's leading mining companies, with significant reserves of copper, gold, and molybdenum. The company's sizeable asset base includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, and significant mining operations in the Americas. With copper being a critical material in renewable energy and electric vehicle technologies, Freeport-McMoRan stands to benefit from the global push towards greener economies.

Freeport-McMoRan is also actively involved in community engagement and environmental stewardship. The company has implemented various initiatives aimed at reducing its environmental footprint and promoting sustainable mining practices. These efforts include water management, biodiversity conservation, and emission reduction strategies. By focusing on responsible mining, Freeport-McMoRan is not only ensuring compliance with environmental standards but is also contributing to the broader goal of sustainable development in the regions it operates.

Cleveland-Cliffs Inc. (NYSE:CLF) is a critical player in the U.S. defense industry, serving as North America's largest flat-rolled steel producer and a key supplier of iron ore pellets. The company provides essential materials used in the construction of military vehicles, ships, aircraft, and infrastructure, as well as in the manufacturing of critical components for weapons systems. This domestic production capability is vital for ensuring the stability and self-reliance of the U.S. defense industrial base.

By sourcing steel domestically from companies like Cleveland-Cliffs, the U.S. reduces its dependence on foreign suppliers and mitigates potential supply chain vulnerabilities that could arise during times of conflict or geopolitical instability. Reliable access to high-quality steel from Cleveland-Cliffs ensures the uninterrupted production of essential defense equipment and strengthens the readiness of the U.S. military.

Cleveland-Cliffs demonstrates a commitment to sustainable practices, including responsible mining and the utilization of renewable energy sources. This aligns with the increasing emphasis on environmental stewardship within the defense sector. By minimizing its environmental impact and promoting responsible resource management, Cleveland-Cliffs contributes to a more sustainable and resilient defense industrial base for the future.

Southern Copper Corporation (NYSE: SCCO) is a leading integrated copper producer with extensive operations in Mexico and Peru. The company plays a significant role in supplying copper, a critical metal for the defense industry, utilized in the production of ammunition, electrical wiring, and electronic components for a wide array of military applications. Southern Copper's substantial production capacity and commitment to operational efficiency position it as a reliable partner in meeting the copper needs of the U.S. defense industry.

A consistent and dependable supply of copper is essential for maintaining the production of critical defense equipment and ensuring the operational readiness of the U.S. military. Southern Copper's ability to meet this demand reinforces the stability and resilience of the defense supply chain.

Beyond its operational capabilities, Southern Copper is dedicated to sustainable mining practices and community development. The company actively works to minimize its environmental footprint and engage with local communities, fostering responsible sourcing of this vital material. This commitment to ethical and sustainable practices enhances the integrity of the defense supply chain and contributes to responsible resource management.

Cameco Corp (NYSE: CCJ) is a leading global provider of uranium fuel, a critical component for nuclear power generation and defense applications. With major operations in Canada and the United States, Cameco plays a vital role in ensuring a secure and reliable supply of uranium to support both civilian and defense needs.

Cameco's uranium mining and processing activities are essential for maintaining the U.S. nuclear deterrent. The company's production contributes to the reliable operation of nuclear-powered aircraft carriers and submarines, vital components of U.S. national security and its ability to project power globally. A stable supply of uranium fuel is crucial for sustaining these capabilities and ensuring strategic readiness.

Cameco adheres to stringent safety and environmental standards in its operations. This commitment to responsible mining practices minimizes environmental impact and contributes to the sustainable management of nuclear materials. By prioritizing safety and environmental stewardship, Cameco supports the long-term viability of the nuclear industry and its role in providing clean energy and national security.

Teck Resources Limited (NYSE:TECK) is a prominent player in the global mining industry, headquartered in Vancouver, Canada. With a diversified portfolio of operations across Canada, the United States, Chile, and Peru, Teck is a leading producer of essential metals, including zinc and copper, as well as commodities such as coal, lead, and silver. The company's extensive mining and processing facilities contribute significantly to the global supply of

these critical materials.

Teck holds a strong position in the zinc market, ranking as the world's second-largest producer with an annual production capacity exceeding 800,000 tonnes. The company's zinc finds widespread application in various industries, including the production of galvanized steel, batteries, and chemicals. This production plays a vital role in supporting key sectors and driving economic growth.

Moreover, Teck's operations are strategically significant in the context of the burgeoning demand for battery metals. Zinc is a crucial component in various battery types, including those used in electric vehicles.

As such, Teck's zinc production is integral to meeting the growing needs of the electric vehicle market and other sectors reliant on battery technologies. This positions the company as a key contributor to the transition towards cleaner energy solutions and a more sustainable future.

Rio Tinto (NYSE: RIO) is a leading global mining and metals company with a strong reputation for operational excellence and sustainable development. The UK-Australian multinational operates in approximately 35 countries, boasting a diverse portfolio of world-class assets across key commodities, including aluminum, copper, diamonds, coal, iron ore, and uranium. This diversified portfolio, coupled with strong market fundamentals, particularly in copper and iron ore, positions Rio Tinto as an attractive prospect for investors.

Beyond its extensive mining operations, Rio Tinto is at the forefront of implementing innovative technologies and sustainable mining practices. The company actively invests in renewable energy and prioritizes the rehabilitation of mining sites, demonstrating a clear commitment to reducing its environmental impact. These efforts align with a growing global emphasis on responsible resource management and underscore Rio Tinto's dedication to environmental stewardship.

Rio Tinto's proactive approach to corporate responsibility and sustainability is not merely an add-on, but an integral element of its business strategy. By embedding sustainable practices throughout its operations, the company aims to create long-term value for its stakeholders while minimizing its environmental footprint. This commitment sets a benchmark for the mining industry, demonstrating that operational efficiency and environmental responsibility can go hand-in-hand.

BHP Group’s (NYSE:BHP) is a leading global resources company with a diverse portfolio of mining assets. The company's operations span several continents, including substantial iron ore mines in Australia's Pilbara region, which contribute significantly to global iron ore production. BHP also maintains copper, coal, and nickel operations in Australia, along with significant energy assets. In the Americas, BHP operates copper and iron ore mines in Chile, Peru, and Colombia, and coal operations in the United States. This global presence and diversified commodity portfolio enable BHP to meet the needs of a wide range of customers worldwide and contribute to the global supply of essential resources.

BHP Group is deeply committed to responsible and sustainable operations. The company recognizes the crucial role it plays in environmental protection and has implemented numerous initiatives to minimize its environmental footprint. This includes ambitious targets to reduce greenhouse gas emissions and investments in technologies to improve water usage efficiency. BHP also prioritizes engagement with local communities to mitigate the social and environmental impacts of its operations. Its commitment to sustainability has earned recognition from various organizations, including the Dow Jones Sustainability Index, where BHP has consistently ranked as a global leader.

BHP Group's focus on sustainability aligns with the increasing demand for ethically sourced and environmentally responsible products. By prioritizing sustainability, BHP positions itself as a leader in the mining industry, demonstrating its commitment to generating long-term value for its stakeholders. This dedication to sustainability serves as a key differentiator and provides a competitive advantage in an industry increasingly focused on environmental and social responsibility.

Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with headquarters in Charlotte, North Carolina. The company operates across three main segments: Lithium, Bromine Specialties, and Catalysts. Albemarle holds the distinction of being the world's largest lithium producer, supplying a critical component for electric vehicle batteries. In addition to lithium, the company produces a range of specialty chemicals, including bromine, catalysts, and pharmaceuticals.

Founded in 1887 as the Albemarle Paper Manufacturing Company, Albemarle originally focused on paper and pulp production. However, the company strategically diversified into other chemical sectors in the 1960s. A significant milestone occurred in 1994 when Albemarle merged with Ethyl Corporation, a specialty chemicals producer, leading to the formation of the present-day Albemarle Corporation.

In recent years, Albemarle has capitalized on the growing demand for lithium-ion batteries, driven by the rise of electric vehicles and other battery-dependent technologies. The company has made substantial investments to expand its lithium production capacity. This includes a planned $500 million investment in a new lithium hydroxide plant in North Carolina, expected to be operational in 2025. Albemarle continues to explore opportunities to further expand its lithium business, including potential acquisitions, solidifying its position in this strategically important market.

By. Michael Kern

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. The forward-looking statements in this publication are based on current expectations and assumptions about future events, geopolitical developments, trade policies, market conditions, the company’s strategic initiatives to address the critical shortage of antimony, and current expectations, estimates, and projections about the industry and markets in which the company operates. Factors that could change or prevent these statements from coming to fruition include, but are not limited to, the potential impact of the upcoming U.S. elections on various industries and specific companies, changes in government policies, market conditions, regulatory developments, geopolitical events and the company’s ability to successfully acquire and develop new antimony resources and fluctuations in antimony prices. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

DISCLAIMERS

Arcadia Biosciences, Inc. (RKDA) : Free Stock Analysis Report

Arcadia Biosciences (RKDA) came out with a quarterly loss of $0.87 per share versus the Zacks Consensus Estimate of a loss of $0.77. This compares to loss of $1.83 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -12.99%. A quarter ago, it was expected that this agricultural biotechnology trait company would post earnings of $1.27 per share when it actually produced earnings of $0.78, delivering a surprise of -38.58%.

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

Arcadia Biosciences , which belongs to the Zacks Agriculture – Products industry, posted revenues of $1.54 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 9.94%. This compares to year-ago revenues of $1.6 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

Arcadia Biosciences shares have added about 35.5% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for Arcadia Biosciences?

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.50 on $1.45 million in revenues for the coming quarter and -$1.70 on $5.41 million in revenues for the current fiscal year.

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

Compass Minerals (CMP), another stock in the broader Zacks Basic Materials sector, has yet to report results for the quarter ended September 2024.

This minerals producer is expected to post quarterly loss of $0.47 per share in its upcoming report, which represents a year-over-year change of -683.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Compass Minerals' revenues are expected to be $209.38 million, down 10.4% from the year-ago quarter.

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

Methanex Corporation (MEOH) : Free Stock Analysis Report

(Bloomberg) — Rio Tinto Group Chief Commercial Officer Bold Baatar has called on US President-elect Donald Trump to overhaul approvals processing for its Resolution copper mine in Arizona.

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Permitting should be faster for the mine, which is a key part of Rio’s growth agenda into metals crucial for the energy transition, Baatar said at the Financial Times Commodity Summit in Singapore.

“Get on with permitting,” Baatar said when asked about what the incoming Trump administration could do to help progress the mine.

The site, being developed by Rio and joint venture partner BHP Group, has the potential to supply 25% of forecast US domestic copper demand for decades. However, approvals have long been hampered by local community opposition and litigation from indigenous titleholders.

He said it had been 12 years since Rio and BHP began work to permit and develop Resolution.

“Permitting in the US is the second-longest in the world,” Baatar added. “The US needs to provide its own security of supply for this industrial base.”

Most Read from Bloomberg Businessweek

Methanex (MEOH) came out with quarterly earnings of $1.21 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 175%. A quarter ago, it was expected that this methanol supplier would post earnings of $0.49 per share when it actually produced earnings of $0.62, delivering a surprise of 26.53%.

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

Methanex , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $935 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.62%. This compares to year-ago revenues of $823 million. The company has topped consensus revenue estimates three times over the last four quarters.

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

Methanex shares have lost about 16.9% since the beginning of the year versus the S&P 500's gain of 21.2%.

What's Next for Methanex?

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.89 on $1.07 billion in revenues for the coming quarter and $2.60 on $3.92 billion in revenues for the current fiscal year.

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

Compass Minerals (CMP), another stock in the same industry, has yet to report results for the quarter ended September 2024.

Compass Minerals' revenues are expected to be $209.38 million, down 10.4% from the year-ago quarter.

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

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

DuPont de Nemours (DD) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 13.46%. A quarter ago, it was expected that this specialty chemicals maker would post earnings of $0.85 per share when it actually produced earnings of $0.97, delivering a surprise of 14.12%.

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

DuPont de Nemours , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $3.19 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $3.06 billion. The company has topped consensus revenue estimates two times over the last four quarters.

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

DuPont de Nemours shares have added about 6.4% since the beginning of the year versus the S&P 500's gain of 19.8%.

What's Next for DuPont de Nemours?

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

Ahead of this earnings release, the estimate revisions trend for DuPont de Nemours: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1 on $3.14 billion in revenues for the coming quarter and $3.76 on $12.44 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical – Diversified is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Compass Minerals (CMP), another stock in the same industry, has yet to report results for the quarter ended September 2024.

Compass Minerals' revenues are expected to be $210.07 million, down 10.1% from the year-ago quarter.

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

Huntsman Corporation (HUN) : Free Stock Analysis Report

Huntsman (HUN) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this chemical company would post earnings of $0.12 per share when it actually produced earnings of $0.14, delivering a surprise of 16.67%.

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

Huntsman , which belongs to the Zacks Chemical – Diversified industry, posted revenues of $1.54 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates just once over the last four quarters.

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

Huntsman shares have lost about 13.2% since the beginning of the year versus the S&P 500's gain of 20.1%.

What's Next for Huntsman?

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

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

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $1.51 billion in revenues for the coming quarter and $0.19 on $6.08 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical – Diversified is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Compass Minerals (CMP), another stock in the same industry, has yet to report results for the quarter ended September 2024.

Compass Minerals' revenues are expected to be $210.07 million, down 10.1% from the year-ago quarter.

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

See our latest analysis for BHP Group

With its stock down 4.5% over the past month, it is easy to disregard BHP Group (ASX:BHP). However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to BHP Group's ROE today.

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

How To Calculate Return On Equity?

Return on equity can be calculated by using the formula:

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

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

20% = US$9.6b ÷ US$49b (Based on the trailing twelve months to June 2024).

The 'return' refers to a company's earnings over the last year. That means that for every A$1 worth of shareholders' equity, the company generated A$0.20 in profit.

Why Is ROE Important For Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

BHP Group's Earnings Growth And 20% ROE

To start with, BHP Group's ROE looks acceptable. On comparing with the average industry ROE of 12% the company's ROE looks pretty remarkable. Probably as a result of this, BHP Group was able to see a decent growth of 6.2% over the last five years.

As a next step, we compared BHP Group's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 21% in the same period.

past-earnings-growth

Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for BHP? You can find out in our latest intrinsic value infographic research report.

Is BHP Group Using Its Retained Earnings Effectively?

While BHP Group has a three-year median payout ratio of 94% (which means it retains 6.3% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow.

Moreover, BHP Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 57% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio.

Conclusion

In total, it does look like BHP Group has some positive aspects to its business. Its earnings have grown respectably as we saw earlier, probably due to its high returns. However, it does reinvest little to almost none of its profits, so we wonder what effect this could have on its future growth prospects. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

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

(Bloomberg) — BHP Group has been forced to walk back from comments about having “moved on” from its failed Anglo American Plc bid to prevent its hands being tied by the UK takeover panel from launching another buyout attempt.

Most Read from Bloomberg

Chairman Ken MacKenzie made the comments Wednesday at a shareholder meeting of the world’s biggest miner in Australia. Anglo shares fell as much as 4.5%, underperforming the wider sector.

BHP later issued a statement to clarify that MacKenzie’s comments weren’t intended as an official statement under UK takeover rules, and said the panel has agreed not to treat them as a statement of intention not to make an offer. As a result, the world’s biggest miner is still allowed to make a fresh approach for Anglo after its current standstill ends late next month.

BHP abandoned a $49 billion takeover proposal for Anglo in May after repeatedly being rejected, with the two sides unable to agree on the complicated deal structure. Under the UK Takeover Panel rules, once a company that has made a “no intention to offer statement,” it must walk away for the next six months.

The bid by BHP, which was focused on getting access to Anglo’s copper mines, has forced the smaller company to accelerate an overhaul of its business that is now underway, including plans to offload its platinum business and to exit coal, diamonds and nickel. Meanwhile, BHP in July swooped to buy Filo Corp., teaming up with Lundin Mining Corp. in a $3 billion deal to gain South American copper assets.

“We thought there was an opportunity here to create something unique and special — sort of a one-plus-one-equals-three opportunity, with a lot of synergies,” MacKenzie said at the meeting in Brisbane regarding its Anglo bid, before the company issued its clarification statement.

Anglo’s shareholders thought “there was more value in the plan that their management wanted to execute, and so they moved on,” he said. “And, quite frankly, so have we.” “It was never a transaction that we had to do. It was a nice-to-have, not a must-do. So we’ve moved on as well,” he added.

(Updates with more details of MacKenzie’s comments.)

Most Read from Bloomberg Businessweek

The global mining company BHP has “moved on” from its three unsuccessful attempts to take over the rival Anglo American earlier this year and will focus on other growth opportunities instead, its chair has said.

Speaking at BHP’s annual general meeting in Brisbane on Wednesday, Ken MacKenzie suggested the Australian miner would not be resurrecting its bid for its London-based competitor after a six-month block on trying again lifts at the end of November.

BHP had its third offer of £39bn turned down by Anglo board members in May after last-ditch talks over restructuring the 107-year-old company collapsed.

The five-week pursuit of the company met a block over BHP’s plans to sell off some of Anglo’s South African business interests as part of the takeover. This included the sale of Kumba Iron Ore and Anglo American Platinum, major employers in South Africa.

The proposals were described as “highly complex and unattractive” by Anglo, which is a household name in South Africa and counts the government as one of its largest shareholders.

MacKenzie told Wednesday’s AGM: “We made an approach to Anglo American earlier this year … we thought there was an opportunity here to create something unique and special, a bit of a sort of a ‘one plus one equals three’ opportunity.

“Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we.”

Shares in Anglo dropped 3.5% in early trading on Wednesday after the comments, making it the biggest faller on the FTSE 100.

MacKenzie’s comments came amid mounting speculation that BHP could resurrect a bid after a Financial Times report that its chief executive, Mike Henry, and its chief development officer, Catherine Raw, had travelled to South Africa to meet government officials.

MacKenzie pointed to BHP’s recent £3.46bn ($4.5bn) joint venture with the Canadian outfit Lundin Mining to buy the South American-focused company Filo Corp as evidence that it was pursuing new opportunities. Filo Corp has several large copper mines in Chile and Argentina.

At the meeting, more than 91% of shareholders voted to back BHP’s climate action transition plan, which aims to reduce operational emissions by 30% from 2020 by 2030 and achieve net zero by 2050.

MacKenzie confirmed at the meeting that the company was slightly ahead of its 2030 target.

Anglo declined to comment.

OVERLAND PARK, Kan., October 30, 2024–(BUSINESS WIRE)–Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported final fiscal 2024 third-quarter results.

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

REPORTING UPDATE

On Oct. 29, 2024, Compass Minerals filed a Form 10-K/A and a Form 10-Q/A correcting financial statements covering (i) unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, (ii) audited financial statements included in its Annual Report on Form 10-K for the period ended Sept. 30, 2023, (iii) unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended Dec. 31, 2023, and (iv) unaudited financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024. With the completion of those restatements, the company has filed its Form 10-Q for the quarterly period ended June 30, 2024.

The final results for the third quarter of 2024 are consistent in all material respects with the preliminary results disclosed on Sept. 17, 2024. A complete set of press release financial highlights follows for the quarter ended June 30, 2024, including comparative quarterly and year-to-date amounts.

The company is currently in the process of finalizing financial results for 2024 and completing its budget for 2025. As a result of this timing, management believes that it would be unable to comment on most items of current interest to the investment community and therefore the company will forego its conference call to discuss the results for the third quarter of 2024. The company expects to resume the regular cadence of quarterly earnings calls beginning with the reporting of results for the fourth quarter of 2024.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops, while supporting sustainable agriculture. Additionally, it is working to develop a long-term fire-retardant business. Compass Minerals operates 12 production and packaging facilities with nearly 2,000 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

Forward-Looking Statements and Other Disclaimers

This press release may contain forward-looking statements, including, without limitation, statements about timing of future earnings calls. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. The company uses words such as "may," "would," "could," "should," "will," "likely," "expect," "anticipate," "believe," "intend," "plan," "forecast," "outlook," "project," "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements or forward-looking information. These statements are based on the company’s current expectations and involve risks and uncertainties that could cause the company’s actual results to differ materially. The differences could be caused by a number of factors, including without limitation (i) weather conditions, (ii) inflation, the cost and availability of transportation for the distribution of the company’s products and foreign exchange rates, (iii) pressure on prices and impact from competitive products, (iv) any inability by the company to successfully implement its strategic priorities or its cost-saving or enterprise optimization initiatives, and (v) the risk that the company may not realize the expected financial or other benefits from its ownership of Fortress North America. For further information on these and other risks and uncertainties that may affect the company’s business, see the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of the company’s Amended Annual Report on Form 10-K/A for the period ended Sept. 30, 2023, its Amended Quarterly Reports on Form 10-Q/A for the quarters ended Dec. 31, 2023 and Mar. 31, 2024, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 filed with the SEC, as well as the company's other SEC filings. The company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law. Because it is not possible to predict or identify all such factors, this list cannot be considered a complete set of all potential risks or uncertainties.

Non-GAAP Measures

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

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

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

Special Items Impacting the Three Months Ended June 30, 2024 (unaudited, in millions, except per share data)
Item Description	Segment	Line Item	Amount		TaxEffect(1)		After Tax		EPS Impact
Restructuring charges(2)	Corporate and Other	Other operatingexpense	$	1.5	$	—	$	1.5	$	0.04
Total			$	1.5	$	—	$	1.5	$	0.04

Special Items Impacting the Nine Months Ended June 30, 2024 (unaudited, in millions, except per share data)
Item Description	Segment	Line Item	Amount		TaxEffect(1)		After Tax		EPS Impact
Restructuring charges(2)	Corporate and Other	Other operatingexpense	$	16.2	$	—	$	16.2	$	0.39
Restructuring charges(2)	Salt	COGS and Otheroperating expense		0.4		—		0.4		0.01
Restructuring charges(2)	Plant Nutrition	COGS and Otheroperating expense		0.6		—		0.6		0.01
Impairments	Corporate and Other	COGS and Loss onimpairments		124.8		—		124.8		3.02
Goodwill impairment	Plant Nutrition	Loss on impairments		51.0		—		51.0		1.23
Total			$	193.0	$	—	$	193.0	$	4.66

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

Reconciliation for Adjusted Operating Earnings (unaudited, in millions)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Operating earnings (loss)	$	5.9		$	(0.6	)	$	(87.0	)	$	75.2
Restructuring charges(1)		1.5			2.2			17.2			5.5
Loss on impairments(2)		—			—			175.8			—
Accrued loss and legal costs related to SEC investigation(3)		—			—			—			(0.1	)
Adjusted operating earnings	$	7.4		$	1.6		$	106.0		$	80.6
Sales		202.9			207.6			908.6			971.1
Operating margin		2.9	%		(0.3	)%		(9.6	)%		7.7	%
Adjusted operating margin		3.6	%		0.8	%		11.7	%		8.3	%

(1)		The company incurred severance and related charges for reductions in workforce and changes to executive leadership and additional restructuring costs related to the termination of the Company’s lithium development project.
(2)		The company recognized impairments of goodwill, long-lived assets and inventory related to Fortress; and goodwill related to Plant Nutrition for the nine months ended June 30, 2024. The company also recognized the impairment of long-lived assets related to the termination of the lithium development project for the nine months ended June 30, 2024. Impairments of long-lived assets and goodwill are included in loss on impairments, while the impairment of inventory is included in product cost, both on the Consolidated Statements of Operations.
(3)		The company recognized reimbursements related to the settled SEC investigation.

Reconciliation for Adjusted Net (Loss) Earnings (unaudited, in millions)
	Three Months EndedJune 30,					Nine Months EndedJune 30,
		2024			2023		2024			2023
Net (loss) earnings	$	(43.6	)	$	36.4	$	(157.8	)	$	14.5
Restructuring charges(1)		1.5			2.1		17.2			5.4
Loss on impairments(2)		—			—		175.8			—
Accrued loss and legal costs related to SEC investigation(3)		—			—		—			(0.1	)
Adjusted net (loss) earnings	$	(42.1	)	$	38.5	$	35.2		$	19.8

Net (loss) earnings per diluted share	$	(1.05	)	$	0.88	$	(3.83	)	$	0.35
Adjusted net (loss) earnings per diluted share	$	(1.01	)	$	0.93	$	0.83		$	0.48
Weighted-average common shares outstanding (in thousands):
Diluted		41,342			41,142		41,284			40,663

(1)		The company incurred severance and related charges for reductions in workforce and changes to executive leadership and additional restructuring costs related to the termination of the Company’s lithium development project. Charges for the three and nine months ended June 30, 2024 were $1.5 million and $17.2 million, respectively. Charges for the three and nine months ended June 30, 2023 were $2.2 million and $5.5 million ($2.1 million and $5.4 million net of tax), respectively.
(2)		The company recognized impairments of goodwill, long-lived assets and inventory related to Fortress; and goodwill related to Plant Nutrition for the three and nine months ended June 30, 2024. The company also recognized the impairment of long-lived assets related to the termination of the lithium development project for the nine months ended June 30, 2024.
(3)		The company recognized reimbursements related to the settled SEC investigation.

Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Net (loss) earnings	$	(43.6	)	$	36.4		$	(157.8	)	$	14.5
Interest expense		17.2			14.3			50.4			42.4
Income tax expense (benefit)		32.7			(42.8	)		20.4			24.2
Depreciation, depletion and amortization		26.1			24.3			78.4			72.7
EBITDA		32.4			32.2			(8.6	)		153.8
Adjustments to EBITDA:
Stock-based compensation – non-cash		(0.7	)		3.5			6.3			17.2
Interest income		(0.2	)		(1.7	)		(0.8	)		(4.7	)
(Gain) loss on foreign exchange		(0.5	)		2.3			(1.1	)		4.6
Gain from remeasurement of equity method investment		—			(12.6	)		—			(12.6	)
Restructuring charges(1)		1.5			2.2			17.2			5.9
Loss on impairments(2)		—			—			175.8			—
Accrued loss and legal costs related to SEC investigation(3)		—	…		—			—			(0.1	)
Other expense, net		0.3			2.7			1.9			3.7
Adjusted EBITDA	$	32.8		$	28.6		$	190.7		$	167.8

(1)		The company incurred severance and related charges for reductions in workforce and changes to executive leadership and additional restructuring costs related to the termination of the Company’s lithium development project.
(2)		The company recognized impairments of goodwill, long-lived assets and inventory related to Fortress; and goodwill related to Plant Nutrition for the three and nine months ended June 30, 2024. The company also recognized the impairment of long-lived assets related to the termination of the lithium development project for the nine months ended June 30, 2024.
(3)		The company recognized reimbursements related to the settled SEC investigation.

Salt Segment Performance (unaudited, in millions, except for sales volumes and prices per short ton)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Sales	$	160.6		$	155.5		$	745.3		$	824.1
Operating earnings	$	25.9		$	21.7		$	142.6		$	141.9
Operating margin		16.1	%		14.0	%		19.1	%		17.2	%
Adjusted operating earnings(1)	$	25.9		$	22.2		$	143.0		$	143.4
Adjusted operating margin(1)		16.1	%		14.3	%		19.2	%		17.4	%
EBITDA(1)	$	41.6		$	35.9		$	189.7		$	184.8
EBITDA(1) margin		25.9	%		23.1	%		25.5	%		22.4	%
Adjusted EBITDA(1)	$	41.6		$	36.4		$	190.1		$	186.3
Adjusted EBITDA(1) margin		25.9	%		23.4	%		25.5	%		22.6	%
Sales volumes (in thousands of tons):
Highway deicing		1,090			1,070			6,401			7,886
Consumer and industrial		393			421			1,403			1,529
Total Salt..		1,483			1,491			7,804			9,415
Average prices (per ton):
Highway deicing	$	77.20		$	73.86		$	73.60		$	68.86
Consumer and industrial	$	194.35		$	181.66		$	195.37		$	183.81
Total Salt	$	108.27		$	104.28		$	95.50		$	87.53

(1)		Non-GAAP financial measure. Reconciliations follow in these tables.

Reconciliation for Salt Segment Adjusted Operating Earnings (unaudited, in millions)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Reported GAAP segment operating earnings	$	25.9		$	21.7		$	142.6		$	141.9
Restructuring charges(1)		—			0.5			0.4			1.5
Segment adjusted operating earnings	$	25.9		$	22.2		$	143.0		$	143.4
Segment sales		160.6			155.5			745.3			824.1
Segment operating margin		16.1	%		14.0	%		19.1	%		17.2	%
Segment adjusted operating margin		16.1	%		14.3	%		19.2	%		17.4	%

(1)		The company incurred severance and related charges related to a reduction of its workforce.

Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Reported GAAP segment operating earnings	$	25.9		$	21.7		$	142.6		$	141.9
Depreciation, depletion and amortization		15.7			14.2			47.1			42.9
Segment EBITDA	$	41.6		$	35.9		$	189.7		$	184.8
Restructuring charges(1)		—			0.5			0.4			1.5
Segment adjusted EBITDA	$	41.6		$	36.4		$	190.1		$	186.3
Segment sales		160.6			155.5			745.3			824.1
Segment EBITDA margin		25.9	%		23.1	%		25.5	%		22.4	%
Segment adjusted EBITDA margin		25.9	%		23.4	%		25.5	%		22.6	%

(1)		The company incurred severance and related charges related to a reduction of its workforce.

Plant Nutrition Segment Performance (unaudited, dollars in millions, except for sales volumes and prices per short ton)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Sales	$	38.8		$	47.5		$	138.6		$	136.8
Operating (loss) earnings	$	(1.4	)	$	2.5		$	(56.7	)	$	12.8
Operating margin		(3.6	)%		5.3	%		(40.9	)%		9.4	%
Adjusted operating (loss) earnings(1)	$	(1.4	)	$	3.5		$	(5.1	)	$	14.2
Adjusted operating margin(1)		(3.6	)%		7.4	%		(3.7	)%		10.4	%
EBITDA(1)	$	7.2		$	10.7		$	(31.0	)	$	37.4
EBITDA(1) margin		18.6	%		22.5	%		(22.4	)%		27.3	%
Adjusted EBITDA(1)	$	7.2		$	11.7		$	20.6		$	38.8
Adjusted EBITDA(1) margin		18.6	%		24.6	%		14.9	%		28.4	%
Sales volumes (in thousands of tons)		56			63			205			168
Average price (per ton)	$	691.27		$	751.58		$	676.11		$	813.56

(1)		Non-GAAP financial measure. Reconciliations follow in these tables.

Reconciliation for Plant Nutrition Segment Adjusted Operating (Loss) Earnings (unaudited, in millions)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Reported GAAP segment operating (loss) earnings	$	(1.4	)	$	2.5		$	(56.7	)	$	12.8
Restructuring charges(1)		—			1.0			0.6			1.4
Loss on goodwill impairment(2)		—			—			51.0			—
Segment adjusted operating (loss) earnings	$	(1.4	)	$	3.5		$	(5.1	)	$	14.2
Segment sales		38.8			47.5			138.6			136.8
Segment operating margin		(3.6	)%		5.3	%		(40.9	)%		9.4	%
Segment adjusted operating margin		(3.6	)%		7.4	%		(3.7	)%		10.4	%

(1)		The company incurred severance and related charges related to a reduction of its workforce.
(2)		The company recognized a goodwill impairment during the nine months ended June 30, 2024.

Reconciliation for Plant Nutrition Segment EBITDA and Adjusted EBITDA (unaudited, in millions)
	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Reported GAAP segment operating (loss) earnings	$	(1.4	)	$	2.5		$	(56.7	)	$	12.8
Depreciation, depletion and amortization		8.6			8.2			25.7			24.6
Segment EBITDA	$	7.2		$	10.7		$	(31.0	)	$	37.4
Restructuring charges(1)		—			1.0			0.6			1.4
Loss on goodwill impairment(2)		—			—			51.0			—
Segment adjusted EBITDA	$	7.2		$	11.7		$	20.6		$	38.8
Segment sales		38.8			47.5			138.6			136.8
Segment EBITDA margin		18.6	%		22.5	%		(22.4	)%		27.3	%
Segment adjusted EBITDA margin		18.6	%		24.6	%		14.9	%		28.4	%

(1)		The company incurred severance and related charges related to a reduction of its workforce.
(2)		The company recognized a goodwill impairment during the nine months ended June 30, 2024.


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

	Three Months EndedJune 30,						Nine Months EndedJune 30,
		2024			2023			2024			2023
Sales.	$	202.9		$	207.6		$	908.6		$	971.1
Shipping and handling cost		53.2			53.8			255.1			291.3
Product cost		117.1			119.2			478.0			490.0
Gross profit		32.6			34.6			175.5			189.8
Selling, general and administrative expenses		27.5			33.0			106.5			109.2
Loss on impairments		—			—			173.4			—
Other operating (income) expense		(0.8	)		2.2			(17.4	)		5.4
Operating earnings (loss)		5.9			(0.6	)		(87.0	)		75.2
Other (income) expense:
Interest income		(0.2	)		(1.7	)		(0.8	)		(4.7	)
Interest expense		17.2			14.3			50.4			42.4
(Gain) loss on foreign exchange		(0.5	)		2.3			(1.1	)		4.6
Net loss in equity investee		—			0.8			—			3.1
Gain from remeasurement of equity method investment		—			(12.6	)		—			(12.6	)
Other expense, net		0.3			2.7			1.9			3.7
(Loss) earnings before income taxes		(10.9	)		(6.4	)		(137.4	)		38.7
Income tax expense (benefit)		32.7			(42.8	)		20.4			24.2
Net (loss) earnings	$	(43.6	)	$	36.4		$	(157.8	)	$	14.5

Basic net (loss) earnings per common share	$	(1.05	)	$	0.88		$	(3.83	)	$	0.35
Diluted net (loss) earnings per common share	$	(1.05	)	$	0.88		$	(3.83	)	$	0.35
Weighted-average common shares outstanding (in thousands):(1)
Basic		41,342			41,142			41,284			40,663
Diluted		41,342			41,142			41,284			40,663

(1)

Weighted participating securities include RSUs and PSUs that receive non-forfeitable dividends and consist of 632,000 and 698,000 weighted participating securities for the three and nine months ended June 30, 2024, respectively, and 453,000 and 469,000 weighted participating securities for the three and nine months ended June 30, 2023, respectively.


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

	June 30,		Sept. 30,
	2024		2023
ASSETS
Cash and cash equivalents	$	12.8	$	38.7
Receivables, net		92.3		129.3
Inventories		407.5		399.5
Other current assets		34.4		33.4
Property, plant and equipment, net		787.9		852.5
Intangible and other noncurrent assets		260.3		363.5
Total assets	$	1,595.2	$	1,816.9

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	$	6.3	$	5.0
Other current liabilities		182.1		269.6
Long-term debt, net of current portion		868.8		800.3
Deferred income taxes and other noncurrent liabilities		185.9		221.0
Total stockholders' equity		352.1		521.0
Total liabilities and stockholders' equity	$	1,595.2	$	1,816.9

COMPASS MINERALS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
	Nine Months Ended June 30,
		2024			2023
Net cash provided by operating activities	$	27.1		$	126.9

Cash flows from investing activities:
Capital expenditures		(93.3	)		(84.5	)
Acquisition of business, net of cash acquired		—			(18.9	)
Other, net		(1.7	)		(2.5	)

Net cash used in investing activities		(95.0	)		(105.9	)

Cash flows from financing activities:
Proceeds from revolving credit facility borrowings		359.6			66.7
Principal payments on revolving credit facility borrowings		(289.2	)		(218.2	)
Proceeds from issuance of long-term debt		69.4			237.5
Principal payments on long-term debt		(70.3	)		(311.7	)
Payments for contingent consideration		(9.1	)		—
Net proceeds from private placement of common stock		—			240.7
Dividends paid		(12.7	)		(18.7	)
Deferred financing costs		(2.1	)		(3.9	)
Shares withheld to satisfy employee tax obligations		(2.0	)		(1.6	)
Other, net		(1.4	)		(0.9	)

Net cash provided by (used in) financing activities		42.2			(10.1	)
Effect of exchange rate changes on cash and cash equivalents		(0.2	)		1.0
Net change in cash and cash equivalents		(25.9	)		11.9
Cash and cash equivalents, beginning of the year		38.7			46.1

Cash and cash equivalents, end of period	$	12.8		$	58.0

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

Three Months Ended June 30, 2024	Salt		PlantNutrition			Corporate& Other(1)			Total
Sales to external customers	$	160.6	$	38.8		$	3.5		$	202.9
Intersegment sales		—		2.8			(2.8	)		—
Shipping and handling cost		48.2		5.0			—			53.2
Operating earnings (loss)(2)(3)		25.9		(1.4	)		(18.6	)		5.9
Depreciation, depletion and amortization		15.7		8.6			1.8			26.1
Total assets (as of end of period)		1,013.3		408.1			173.8			1,595.2

Three Months Ended June 30, 2023	Salt		PlantNutrition		Corporate& Other(1)			Total
Sales to external customers	$	155.5	$	47.5	$	4.6		$	207.6
Intersegment sales		—		2.8		(2.8	)		—
Shipping and handling cost		48.2		5.6		—			53.8
Operating earnings (loss)(3)		21.7		2.5		(24.8	)		(0.6	)
Depreciation, depletion and amortization		14.2		8.2		1.9			24.3
Total assets (as of end of period)		970.1		477.1		286.3			1,733.5

Nine Months Ended June 30, 2024	Salt		PlantNutrition			Corporate& Other(1)			Total
Sales to external customers	$	745.3	$	138.6		$	24.7		$	908.6
Intersegment sales		—		6.6			(6.6	)		—
Shipping and handling cost		235.9		18.6			0.6			255.1
Operating earnings (loss)(2)(3)(4)		142.6		(56.7	)		(172.9	)		(87.0	)
Depreciation, depletion and amortization		47.1		25.7			5.6			78.4

Nine Months Ended June 30, 2023	Salt		PlantNutrition		Corporate& Other(1)			Total
Sales to external customers	$	824.1	$	136.8	$	10.2		$	971.1
Intersegment sales		—		7.1		(7.1	)		—
Shipping and handling cost		274.9		16.4		—			291.3
Operating earnings (loss)(2)(3)		141.9		12.8		(79.5	)		75.2
Depreciation, depletion and amortization		42.9		24.6		5.2			72.7

(1)		Corporate and other includes corporate entities, records management operations, the Fortress fire retardant business, equity method investments, lithium costs and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead, including costs for general corporate governance and oversight, lithium-related expenditures, as well as costs for the human resources, information technology, legal and finance functions.
(2)		Corporate operating results were impacted by net gains of $0.9 million and $23.1 million related to the decline in the valuation of the Fortress contingent consideration for the three and nine months ended June 30, 2024, respectively. Corporate operating results also include net reimbursements related to the settled SEC investigation of $0.1 million for the nine months ended June 30, 2023.
(3)		The company continued to take steps to align its cost structure to its current business needs. These initiatives impacted Corporate operating results and resulted in net severance and related charges for reductions in workforce and changes to executive leadership and additional restructuring costs related to the termination of the Company’s lithium development project of $1.5 million and $17.2 million for the three and nine months ended June 30, 2024, respectively, and $2.2 million and $5.5 million for the three and nine months ended June 30, 2023, respectively.
(4)		The company recognized impairments of goodwill, long-lived assets and inventory related to Fortress; and goodwill related to Plant Nutrition of $175.8 million during the nine months ended June 30, 2024, which impacted operating results. The company also recognized the impairment of long-lived assets related to the termination of the lithium development project for the nine months ended June 30, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030134038/en/

Contacts

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

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

BHP Group BHP announced that its iron ore production rose 2% year over year to 64.6 Mt in the first quarter of fiscal 2025 (ended Sept. 30, 2024). This was attributed to an increase in production at Western Australia Iron Ore (WAIO) following the commissioning of the Port Debottlenecking Project and completion of the South Flank ramp-up.

Iron ore production at Samarco increased 4% in the quarter due to the early resumption of Pelletizing Plant No. 4. BHP’s iron ore production guidance for fiscal 2025 remains unchanged at 255-265.5 Mt. WAIO's production is expected to be between 250 Mt and 260 Mt (282 Mt and 294 Mt on a 100% basis).

BHP Reports a 4% Rise in Copper Production

BHP’s copper output improved 4% year over year to 476 kt in the first quarter of fiscal 2025.

Copper production at Escondida increased 11% year over year as mining progressed into areas of higher-grade ore as well as increased concentrator feed grade. This was partially offset by planned lower cathode production.

Copper output at Pampa Norte slumped 23%. Production at Spence was down 13% due to lower cathode production as a result of planned quarterly maintenance at the concentrator and a decline in stacked feed grade.

Production was down on a year-over-year basis reflecting the impact of Cerro Colorado entering temporary care and maintenance in December 2023. It had contributed 9.5 kt of copper output in the first quarter of fiscal 2024.

Production from Copper South Australia was reported at 73 kt, 2% higher than the prior fiscal quarter aided by upbeat underlying operational performance. Production was lower at Prominent Hill due to minor pit geotechnical instability and ventilation constraints, which impacted trucking capacity and production. BHP assured that these issues have been rectified.

Antamina’s copper production rose 12% to 36 kt on higher ore grade and recoveries, partially offset by planned lower concentrator throughput.

The company expects copper production within the range of 1,845-2,045 kt in fiscal 2024.

BHP Temporarily Suspends Nickel West Operations

Nickel production was down 3% year over year to 19.6 kt in the fiscal first quarter. This reflected BHP’s decision to temporarily suspend the Nickel West operation starting in October 2024, citing lower nickel prices.

Starting January 2025, BHP plans to invest around $300 million annually to keep the operation in readiness for a potential restart in case the market rebounds.

BHP’s Energy & Steelmaking Coal Output Up Y/Y

Energy coal production rose 2% year over year to 3.7 Mt in the quarter. Steelmaking coal production was 4.5 Mt, which declined 19% from the year-ago quarter. Production in the first quarter of fiscal 2024 included 1.8 Mt (3.7 Mt on a 100% basis) from the Blackwater and Daunia mines that were divested on April 2, 2024. Excluding these volumes, production of steelmaking coal was up 20% year over year.

Production guidance for steelmaking coal is in the band of 16.5-19 Mt while energy coal guidance in the range of 13 Mt to 15 Mt in fiscal 2025.

BHP Sees Lower Average Iron Ore Prices, Rising Copper Prices

In the fiscal first quarter, average realized prices for iron ore were down 18% year over year to $80.10 per ton. Copper prices were up 17% to $4.24 per pound. Average nickel prices were $16,359 per ton, down 20% from the year-ago quarter. Prices for thermal coal dipped 1% year over year to $124.32 per ton and steelmaking coal prices were down 9% to $214.86 per ton.

BHP’s Other Updates on Projects & Acquisitions

In July 2024, BHP and Lundin Mining Corporation LUNMF agreed to jointly acquire Filo Corp, which owns 100% of the Filo del Sol (FDS) copper project. BHP and Lundin Mining have also agreed to form a 50/50 joint venture to advance the FDS and Josemaria projects.

BHP commenced construction of Jansen Stage 2 for potash in fiscal 2024. It had been 4% completed in the fiscal first quarter. Meanwhile, the Jansen Stage 1 has been 58% completed. The operating expenditure related to potash is expected to be around $300 million in the current fiscal 2025.

BHP’s Peer Performances

Vale S.A. VALE reported iron ore production of around 91 Mt for the third quarter of 2024, reflecting a 5.5% increase from the year-ago quarter. This marks VALE’s highest output since the fourth quarter of 2018, driven by improved operating performances at Itabira and Brucutu. The company’s iron ore production guidance for 2024 is in the range of 323-330 Mt.

Vale produced 85.9 kt of copper, which was 5.3% higher than the year-ago quarter. The company expects to produce copper in the range of 320 – 355 kt.

Rio Tinto RIO reported a 1% year-over-year improvement in its third-quarter (ended Sept. 30, 2024) iron ore production to 84.1 Mt (on a 100% basis) as productivity gains offset ore depletion. This brings RIO’s total iron ore output for the nine-month period to 242.9 Mt, a decline of 1% year over year.

Iron-ore shipments for the quarter (on a 100% basis) were reported at 84.5 Mt, up 1% year over year. Rio Tinto expects Pilbara iron ore shipments (100% basis) to be between 323 Mt and 338 Mt in 2024. The midpoint of the guidance indicates a year-over-year dip of 0.4%.

Copper production was 168 thousand tons in the third quarter, 1% lower than the year-ago quarter. RIO expects copper production to be between 660 thousand tons and 720 thousand tons in 2024, indicating 11.3% growth at the midpoint.

BHP’s Price Performance & Zacks Rank

BHP’s shares have dipped 0.7% in a year compared with the industry’s 3% growth.

Zacks Investment Research

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BHP currently carries a Zacks Rank #5 (Strong Sell).

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

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See our latest analysis for BHP Group

Overview of the Recent Transaction

On September 30, 2024, State Street Corp executed a significant transaction involving the sale of 1,437,667 shares of Compass Minerals International Inc (NYSE:CMP), a notable player in the metals and mining sector. This move reduced their holding to 794,645 shares, reflecting a strategic adjustment in their investment portfolio. The shares were traded at a price of $12.02 each, marking a pivotal shift in State Street Corp's investment strategy.

Profile of State Street Corp

Warning! GuruFocus has detected 5 Warning Signs with CMP.

State Street Corp, headquartered at One Lincoln Street, Boston, MA, is a prominent investment firm known for its robust portfolio management and strategic investment decisions. With a vast equity holding of $2,285.63 trillion, the firm has a significant influence in the financial markets, particularly in the technology and financial services sectors. Their top holdings include major corporations like Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN).

State Street Corp’s Strategic Reduction in Compass Minerals International IncIntroduction to Compass Minerals International Inc

Compass Minerals International Inc, trading under the symbol CMP, is primarily involved in the production of salt and specialty potash fertilizers. With key assets across North America and the United Kingdom, the company serves a diverse range of sectors from deicing to agriculture. The firm's strategic operations in potash and salt extraction have positioned it as a key player in the industry.

State Street Corp’s Strategic Reduction in Compass Minerals International IncFinancial and Market Analysis of Compass Minerals International Inc

As of the latest data, Compass Minerals holds a market capitalization of $565.031 million with a current stock price of $13.67. Despite a challenging market environment indicated by a year-to-date price decline of 45.12%, the stock has seen a recent upturn with a 13.73% gain since the transaction date. The company's valuation metrics suggest caution, with a GF Value of $30.47 and a price to GF Value ratio of 0.45, signaling a potential value trap scenario.

Impact of the Trade on State Street Corp's Portfolio

The recent transaction has notably decreased Compass Minerals' position in State Street Corp's extensive portfolio, now constituting only 1.90% of their holdings. This reduction aligns with the firm's strategic realignment, possibly due to the stock's underwhelming financial performance and market valuation concerns.

Sector and Market Considerations

State Street Corp primarily invests in technology and financial services, sectors that generally promise high growth and stability. The decision to reduce exposure to the metals and mining sector, represented by Compass Minerals, may reflect a strategic shift towards more lucrative and stable investments, considering the volatile nature of commodity-based industries.

Future Outlook and Analyst Insights

Compass Minerals, with a GF Score of 55, indicates a potential for poor future performance. Analysts are cautious, given the company's financial struggles, including a significant debt load and negative profitability metrics. The future performance of CMP will likely hinge on its ability to improve operational efficiency and market conditions in the metals and mining sector.

Conclusion

State Street Corp's recent reduction in Compass Minerals International Inc reflects a strategic pivot within its investment portfolio, possibly due to the challenging financial metrics and uncertain future of the metals and mining sector. For value investors, this move highlights the importance of continuous portfolio assessment and realignment in response to changing market conditions and company fundamentals.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

(Bloomberg) — BHP Group Ltd. said iron ore output in its first quarter rose 2% from the year-before, as moves by major miners to ramp up production raise the specter of over-supply.

Most Read from Bloomberg

The world’s largest miner produced 64.6 million tons of iron ore over the three months to the end of September, it said in a statement Thursday. Full-year guidance for its iron ore operations was kept at 255 to 265.5 million tons.

It comes as China — the biggest consumer of iron ore — attempts to prop up its struggling property sector amid a slump in its economy. While domestic steel demand is muted, it has been somewhat offset by the local manufacturing industry and exports to other Asian markets.

“China has announced a series of monetary easing policies in an effort to support economic growth, and has indicated more significant fiscal stimulus is on the horizon,” BHP Chief Executive Officer Mike Henry said in company filings. “Upcoming stimulus is likely to focus on relieving local debt, stabilizing the property market and bolstering business confidence.”

Over the past year, BHP has focused on streamlining its port operations and ramping-up its South Flank mine, in the Pilbara region of Western Australia, to full production capacity. It aims to reach 305 million tons per annum in the medium term, compared with 260 million tons of output last fiscal year.

The expansion comes as fellow iron ore majors Rio Tinto Plc and Vale SA boost their own supplies. Rio, which handed down its production report Wednesday, will bring its Simandou mine online next year. Meanwhile, Vale churned out 5.5% more ore compared to a year ago and has plans to further raise output.

BHP said production was up across all major commodities in its portfolio, including its copper business, which accounts for about 30% of its annual earnings. Output of the red metal in the period rose 4% from the year-before.

Its biggest copper mine, Escondida, produced 11% more as mining began in higher-grade areas. Those gains were offset by a 23% fall from the Pampa Norte project. Output from its South Australian assets, which it acquired last year through the acquisition of OZ Minerals Ltd., edged higher.

Copper is seen by Henry as a core growth area that will increase the company’s exposure to the energy transition, as China’s appetite for steel fades.

Earlier in the year, BHP lobbed a $49 billion takeover offer for copper giant Anglo American Plc, which ultimately failed. The bid meant BHP had to walk away from Anglo for a six-month period. Late next month that requirement will expire, potentially opening the door for another tussle between the two companies’ boards.

Henry traveled to South Africa last week to meet with government officials, sparking speculation BHP may be considering a second takeover attempt of Johannesburg-based Anglo, according to a Financial Times report.

Shortly after BHP failed to acquire Anglo, it quickly swooped to buy Filo Corp., teaming up with Lundin Mining Corp. in a $3 billion deal to gain two copper assets straddling the Argentina-Chile border.

The company is also diversifying into potash, with its $10.5 billion Jansen mine set to reach first production in about two years. BHP said Thursday that development of the mine was 58% complete.

(Updates with M&A ambitions from 10th paragraph)

Most Read from Bloomberg Businessweek

By Rishav Chatterjee

(Reuters) -Global miner BHP beat first-quarter iron ore output estimates on Thursday, spurred by easing of bottlenecks at its Western Australia operations amid efforts by China to revive its grappling property market and faltering economic growth.

The world's largest listed miner over the last year has ramped up the South Flank mine to full production capacity and streamlined its port operations for its Western Australian iron ore business.

The ramp-up comes at a time when mining rivals including Vale and Rio Tinto are moving to expand their supplies. Vale plans to further lift its production, while Rio's Simandou mine will begin production next year.

BHP, which is diversifying into potash, said the $10.5 billion Jansen Stage 1 project was 58% complete.

The miner's upbeat iron ore production update comes as China, the commodity's largest purchaser, has been announcing a slew of stimulus measures to support its downbeat economic recovery.

BHP said iron ore output from Western Australia on a 100% basis was 71.6 million metric tons in the three months to Sept. 30, beating a Visible Alpha consensus estimate of 70.7 Mt, according to a Macquarie note.

"Upcoming stimulus (from China) is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence," said CEO Mike Henry.

BHP, which has been aiming to expand its copper operations, recorded a 4% rise in the metal's output for the quarter, reflecting improved performance at its Escondida mine in Chile.

Analysts at Citi said Escondida output rose on higher grades and throughput at the Chilean mine.

Earlier this year, BHP made a $49 billion bid for British copper major Anglo American, which did not materialise. But BHP joined hands with Lundin Mining to take over Filo Corp, gaining access to more copper assets.

Copper, used widely across the globe, is an ideal conductor of electricity and easily malleable, qualities that have made it widely popular for use in wiring, engines, construction equipment, electronics and other devices.

BHP's shares were up 0.3% at A$43.67 in early trade.

(Reporting by Rishav Chatterjee and Echha Jain in Bengaluru; Editing by Sriraj Kalluvila and Rashmi Aich)

Key Insights

Using the 2 Stage Free Cash Flow to Equity, BHP Group fair value estimate is AU$57.07
BHP Group's AU$43.43 share price signals that it might be 24% undervalued
Our fair value estimate is 23% higher than BHP Group's analyst price target of US$46.31

Does the October share price for BHP Group Limited (ASX:BHP) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.

Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.

The Method

We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. 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) forecast

	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034
Levered FCF ($, Millions)	US$10.1b	US$9.46b	US$8.45b	US$11.8b	US$11.4b	US$11.2b	US$11.1b	US$11.2b	US$11.3b	US$11.5b
Growth Rate Estimate Source	Analyst x8	Analyst x8	Analyst x7	Analyst x1	Analyst x1	Est @ -1.65%	Est @ -0.43%	Est @ 0.42%	Est @ 1.02%	Est @ 1.43%
Present Value ($, Millions) Discounted @ 7.2%	US$9.4k	US$8.2k	US$6.9k	US$8.9k	US$8.0k	US$7.4k	US$6.8k	US$6.4k	US$6.0k	US$5.7k

("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$74b

We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.4%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.2%.

Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$11b× (1 + 2.4%) ÷ (7.2%– 2.4%) = US$244b

Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$244b÷ ( 1 + 7.2%)10= US$121b

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$195b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of AU$43.4, the company appears a touch undervalued at a 24% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.

dcfThe Assumptions

The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at 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 1.170. 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.

SWOT Analysis for BHP Group

Strength

Debt is not viewed as a risk.

Weakness

Earnings declined over the past year.

Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market.

Opportunity

Annual earnings are forecast to grow for the next 3 years.

Good value based on P/E ratio and estimated fair value.

Threat

Dividends are not covered by earnings.

Annual earnings are forecast to grow slower than the Australian market.

Next Steps:

Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For BHP Group, there are three essential factors you should further examine:

Risks: Take risks, for example – BHP Group has 2 warning signs we think you should be aware of.

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.

The third-quarter earnings season is underway, with companies across a range of sectors due to report in the coming week.

Investors will be looking to see if Netflix, which is behind hit shows such as Bridgerton and Emily in Paris, will be able to deliver results strong enough to keep its stock driving to new highs.

In the world of luxury, markets will be searching for indicators as to whether the recently announced Chinese stimulus measures has improved the outlook for LVMH, when the French company shares its latest results.

The drivers behind the AI boom will continue to be in focus in the coming week, with chip-making machine manufacturer ASML due to share its latest quarterly update.

Major mining companies are also set to report, with Rio Tinto among those slated to release third-quarter figures.

Following earnings releases from several investment banks on Friday, Goldman Sachs is also set to post it latest results.

Here's more on what to look out for:

Netflix (NFLX) — Reports third-quarter results on Thursday 17 October

Shares in Netflix have recovered from sharp falls seen in 2022 to reach all-time highs, with the stock up 50% year-to-date.

AJ Bell's investment experts Russ Mould, Danni Hewson, and Dan Coatsworth said Netflix has reaffirmed "investors’ view that the company is indeed the winner in the streaming wars".

However, they pointed out that the shares now trade on more than 35 times earnings for 2024 and 30 times for 2025.

"Those lofty multiples mean that expectations are high both for the third and fourth quarters of 2024 as well as Netflix’s long-term earnings growth potential," they said.

Netflix said it added more than 39 million subscribers over the 12-month period ending in June, gains stemmed from the continued rollout of Netflix's password-sharing crackdown, along with the introduction of its cheaper ad-supported tier.

Bridgerton (Netflix) (LIAM DANIEL/NETFLIX)

Looking to the release of the latest results on Thursday, Netflix said in its second-quarter update that it expected to deliver 14% revenue growth year-on-year in Q3.

AJ Bell's investment experts said analysts were expected 14% growth in sales to $9.8bn (£7.5bn). It is anticipated that net income will come in at $2.2bn, just below the first quarter's all-time high of $2.3bn.

Analysts are expecting earnings per share of $5.07 in the third quarter and then $3.82 in the fourth quarter, up from $3.80 and $2.15 respectively in the equivalent periods a year ago.

"Despite what the share price is telling us, Netflix’s biggest challenge may now be staying ahead of its rivals having got there, although management is clearly not going to rest on its laurels, as it continues develop gaming as another source of revenue to complement its powerful catalogue of prime film and series content.

LVMH (MC.PA) — Reports third-quarter results on Tuesday 15 October

French conglomerate LVMH may be known for its focus on luxury, owning brands such as Louis Vuitton and Dior, but the company and its owners have been making headlines more recently for their reported moves in the sporting world.

LVMH recently announced a 10-year partnership with Formula 1, while the Financial Times reported that the company's CEO Bernard Arnault and his children have teamed up with energy drink maker Red Bull to buy Paris FC.

Despite these developments, shares have continued to ebb lower, with LVMH stock down 11% year-to-date.

Shares fell this week, after China decided to impose tariffs of as much as 39% on imports of European brandy, taking effect from Friday 11 October. This impacted the shares of French companies, including LVMH, which owns the brand of cognac Hennessy.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said that the company's growth had "come off the boil in recent quarters, as tough economic conditions have even seen some luxury shoppers controlling their budgets a bit more".

However, he highlighted that LVMH's organic revenue positive territory, up 2% to €41.7bn (£34.9bn) in the first half. Chiekrie pointed out that sales in Asia made up almost a third of that total, of which Chinese consumers account for a significant proportion.

The recent announcement of stimulus measures by China's central bank had brought a "fresh jolt of optimism around the outlook for LVMH," said Chiekrie.

"While it’s too early to tell if the Chinese stimulus package will help lead to a sustained economic recovery, investors will be keen to see if it’s enough to shift full-year sales guidance higher when LVMH releases its third-quarter update," he said.

ASML (ASML.AS) — Reports third-quarter results on Wednesday 16 October

For those looking at plays in the AI space, Dutch company ASML is set to report its latest quarterly results on 16 October.

The company makes photolithography machines, which are essential to producing semiconductor chips, making it a major driver of the AI boom.

Shares are up 11% year-to-date but have been falling more recently.

Derren Nathan, head of equity research at Hargreaves Lansdown, said that the company's revenues so far this year have been lagging levels seen in 2023.

ASML posted second-quarter total net sales of €6.24bn in July, down from €6.9bn for the same period in 2023. The company also reported that its net income had declined to €1.58bn from €1.94bn last year.

"The company’s banking on a step change in sales of micro-chip manufacturing systems in the last two quarters of the year to keep 2024 revenue flat overall," said Nathan.

The consensus forecast from analysts are for revenue growth of 7% year-on-year to €7.1bn. For the fourth quarter, Nathan said analysts have earmarked quarter-on-quarter growth of over 24% to €8.8bn.

"ASML’s technology leadership leaves it well placed to benefit from long-term megatrends such as artificial intelligence," he said. "However, some of its key customers are facing their own challenges, so investors will also be looking for any pointers on next year’s outlook where growth is currently expected to accelerate further.”

Taiwan Semiconductor Manufacturing Company (2330.TW), the world's largest contract chipmaker, is also due to report third-quarter results next week on Thursday 17 October. The company already shared its revenues for the third quarter on Wednesday, which beat forecasts.

Rio Tinto (RIO.L) — Reports third-quarter results on Wednesday 16 October

In the mining sector, Rio Tinto is set to release quarterly results on Wednesday, while Antofagasta (ANTO.L) will also share an update, followed by a statement from BHP (BHP.L) on the Thursday.

Rio Tinto was in focus this week after announcing it had agreed to buy Arcadium Lithium (ALTM), in a $6.7bn deal.

Shares in Rio Tinto saw little movement on the news, with it still down 12.5% year-to-date. However, shares in Arcadium Lithium soared following the announcement, up 80% over the past five days alone.

For the company as a whole, AJ Bell's investment experts said that iron ore, copper and aluminium are currently Rio Tinto's biggest earners.

"Management currently expects unchanged output in 2024 for iron ore, bauxite and aluminium, with an increase in copper and a small drop in alumina," said Mould, Hewson and Coatsworth.

"Copper production is forecast to rise 2% this year and Rio Tinto has a plan to increase output by 3% on a compound basis between 2024 and 2028. Meanwhile, overall group capex (capital expenditure) is budgeted to run at $10 billion a year in 2024, 2025 and 2026."

Meanwhile, Antofagasta is a pure play on copper, they said, with output of the metal is still forecast to come in at the low end of between 670,000 to 710,000 tonnes for 2024.

In the case of BHP, its biggest earners are iron ore, copper, and coal. In the company's latest quarterly update, AJ Bell's team said investors would also be looking for any further thoughts on the company's aborted bid for Anglo-American (AAL.L).

Goldman Sachs (GS) — Reports third-quarter results on Tuesday 15 October

A number of banks reported on Friday to get the earnings season into swing, with JPMorgan posting a 2% fall in profits despite strong performance.

Wells Fargo (WFC), BlackRock (BLK) and BNY Mellon (BK) also reported on Friday, with stocks rising as investors cheered this first wave of bank earnings.

Next up is Goldman Sachs, Bank of America (BAC) and Citigroup (C) on Tuesday.

In the second quarter, Goldman Sachs reported profits had soared 150% from a year ago as investment banking surged.

Net income was $3.04 billion, which beat analyst expectations. Its total revenue of $12.73 billion also rose 17% from a year ago.

Goldman Sachs CEO David Solomon said in a conference call with analysts: "We are in the early innings of a capital markets and M&A recovery, and while certain transaction volumes are still well below their tenure averages, we remain very well positioned to benefit from a continued resurgence of activity,"

Shares are trading at all-time highs, with the stock up 33% year-to-date.

Other companies reporting this week include:

Monday 14 October

Ashmore (ASHM.L)

PageGroup (PAGE.L)

Volkswagen (VOW3.DE)

Tuesday 15 October

Bellway (BWY.L)

Robert Walters (RWA.L)

Reach (RCH.L)

LM Ericsson (ERIC-B.ST)

Sulzer (SUN.SW)

UnitedHealth (UNH)

Johnson & Johnson (JNJ)

Bank of America (BAC)

Citigroup (C)

Omnicom (OMC)

United Airlines (UAL)

Walgreens Boots Alliance (WBA)

Wednesday 16 October

Antofagasta (ANTO.L)

Whitbread (WTB.L)

Vertu Motors (VTU.L)

Just Eat Takeaway (JET.L, TKWY.AS)

Abbott Labs (ABT)

Morgan Stanley (MS)

Prologis (PLD)

US Bancorp (USB)

CSX (CSX)

Kinder Morgan (KMI)

Las Vegas Sands (LVS)

Citizens Financial (CZFS)

Alcoa Corporation (AA)

Thursday 17 October

BHP (BHP.L)

Rentokil Initial (RTO.L)

Mondi (MNDI.L)

Schroders (SDR.L)

Deliveroo (ROO.L)

Dunelm (DNLM.L)

Travis Perkins (TPK.L)

Sabre Insurance (SBRE.L)

Centamin (CEY.L)

GB Group (GBG.L)

Ibstock (IBST.L)

TSMC (2330.TW)

Sands China (1928.HK)

Nestlé (NESN.SW)

ABB (ABBN.SW)

EssilorLuxottica (EL.PA)

Pernod Ricard (RI.PA)

Schneider (SU.PA)

Nokia (NOK)

Travelers TRV (TRV)

American Airlines (AAL)

Bank OZK (OZK)

Friday 18 October

Volvo (VOLV-B.ST)

American Express (AXP)

Schlumberger (SLB)

Fifth Third Bancorp (FITBP)

Autoliv (ALV)

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

The long-suffering lithium sector is enjoying a rare boom after mining giant Rio Tinto Group (NYSE:RIO) announced an all-cash $6.7 billion deal for Arcadium Lithium Plc (NYSE:ALTM), good for a hefty 90% premium to the Oct. 4 closing price. Both company boards unanimously approved the merger, with the deal expected to close mid-2025. Arcadium Lithium was formed in January 2024 following the US$10.6 billion merger of equals between U.S.-based Livent and Australia’s Alkem.

Arcadium Lithium’s shares have nearly doubled since the merger was announced; Albemarle Corp. (NYSE:ALB), the world’s largest lithium producer, gained 9.4%, SQM (NYSE: SQM) went up 7.9%%, Standard Lithium (TSXV: SLI, NYSE: SLI) gained 39.2% while Lithium Americas Corp. (TSX: LAC, NYSE:LAC) was up 6.7%.

The acquisition is seen as a major win for Rio Tinto, with the company having struggled to get traction in the lithium market after its Jadar project in Serbia ran into local opposition. This means that Rio Tinto now owns the world’s third-largest lithium reserves, behind only Corporacion Minera de Bolivia, also known as COMIBOL, and SQM.

But it’s Albemarle that the markets will be looking at much more closely now. Its strong Q2 performance was impressive, given the extremely fragile nature of the lithium market. Despite these conditions, ALB managed to increase lithium sales volumes and the outlook has been highly optimistic, with ALB forecasting $15-per-kilogram prices. Under pressure from falling lithium prices, a weakening EV market and Chinese oversupply, ALB has taken a beating, shedding 45% year-to-date. That makes this stock a potential buy-on-the-dip opportunity, particularly in the wake of the Rio Tinto developments.

We could be in the middle of a lithium turning point here, and if that is the case, Albemarle has its ducks lined up in a neat row.

Turning Point

That said, the broad-based lithium rally kicked in well before the Rio Tinto merger. The Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) has jumped nearly 30% after sinking to a 3-year low exactly 30 days ago.

The rebound coincides with growing predictions that lithium prices could have bottomed out. A month ago, Citi analysts raised their near-term price target for lithium carbonate to $14K/metric ton and for lithium hydroxide to $14.2K/ton, from a prior forecast of $10K/ton for both products, predicting a near-term rally in lithium prices as investors cover their short positions. However, Citi added that over the next 6-12 months "does not expect the rally to have 'follow through' as higher prices could very well trigger a supply response, potentially leading to loosening of lithium balances."

Lithium carbonate edged higher to CNY 75,500 ($10.663) per tonne after steadying at the three-year low of CNY 71,500 ($10,098) through September, as economic stimulus from the Chinese government momentarily countered persistent oversupply concerns. Lithium carbonate prices have declined 21% in the year-to-date, adding to an 80% plunge in 2023 driven by the flood of new supply relative to dwindling demand for new electric vehicles, the main use for lithium. Still, market players expect global supply to soar by nearly 50% this year, as hopes of eventual balance in the market drove the race to secure battery metals drove China to expand projects in Africa while Chile signaled it would aim to double output over the next decade.

Adding to the bearish pressure are growing tariffs on China’s renewable energy products. Recently, the Office of the U.S. Trade Representative (USTR) finalized its plan to raise tariffs on a slew of Chinese goods, largely adopting hikes it first proposed in May. The expanded tariffs mainly target strategic product categories, including electric vehicles, batteries, solar cells, semiconductors and critical minerals.

The final tariff structure covers thousands of items under 14 product categories, with the first tariff hikes set to go into effect on Sept. 27 and the rest over the next two years. And, they are just as punitive as those of the Trump era: Chinese EVs have been slapped with a hefty 100% tariff; a 25% tariff on lithium-ion EV batteries, and a 50% tariff on photovoltaic solar cells. Meanwhile, a 50% tariff on China-made semiconductors will go into effect in 2025.

However, other lithium bulls are hanging on. BMI, a Fitch Solutions research unit, has predicted a lithium shortage could hit as early as 2025 largely due to China’s lithium demand exceeding supply.

“We expect an average of 20.4% year-on-year annual growth for China’s lithium demand for EVs alone over 2023-2032,” the report stated. In contrast, BMI sees China’s lithium supply growing at a much slower 6% annual clip over the same period, pointing out that that rate is not enough to meet even one-third of forecast demand.

BMI is not the only lithium bull here. “We do fundamentally believe in a shortage for the lithium industry. We forecast supply growth of course, but demand is set to grow at a much faster pace,” Corinne Blanchard, Deutsche Bank’s director of lithium and clean tech equity research, has told CNBC. Blanchard sees a “modest deficit” of around 40,000 to 60,000 tonnes of lithium carbonate equivalent by the end of 2025, but has forecast a much wider deficit to the tune of 768,000 tonnes by the end of 2030.

By Alex Kimani for Oilprice.com

And here are a number of other miners to keep an eye on this autumn:

BHP Group (NYSE:BHP), a global resources giant, showcases a diversified portfolio encompassing iron ore, copper, coal, nickel, and energy operations. With a substantial presence in Australia and the Americas, BHP’s operational scale is impressive. The company’s commitment to sustainable practices, including environmental impact reduction and community engagement, further solidifies its position as a responsible and forward-thinking leader in the global resources sector.

FMC Corporation (NYSE: FMC) Based in Philadelphia, FMC Corporation is a global agricultural sciences company delivering innovative technology to growers worldwide and has a significant stake in lithium for rechargeable batteries and other high-tech applications. The company’s agricultural products contribute to increased crop yield and quality, addressing global food security issues. FMC’s commitment to innovation and sustainability has driven robust demand for its crop protection products, supported by higher commodity prices and strong agricultural market fundamentals.

Lithium Americas (NYSE:LAC) has emerged as a significant player in the lithium market, driven by the growing demand for lithium-ion batteries in electric vehicles and renewable energy. The company’s Thacker Pass project in Nevada holds the potential to be one of the world’s largest lithium sources, positioning Lithium Americas as a major contributor to the global lithium supply chain. Strategic investments and partnerships with established industry players further enhance the company’s prospects for growth and expansion.

Albemarle Corporation (NYSE:ALB) stands as a global specialty chemicals leader, distinguished by its position as the world’s largest lithium producer. This prominence in the lithium market aligns with the surging demand for electric vehicle batteries, a key growth driver for the company. Albemarle’s diversified portfolio, encompassing bromine, catalysts, and pharmaceuticals, showcases its adaptability and commitment to innovation across various sectors.

Piedmont Lithium Limited (NASDAQ:PLL) is an Australian mining company focused on developing lithium resources in the United States. Its flagship Piedmont Lithium Project in North Carolina is projected to produce a substantial amount of lithium hydroxide annually, catering to the increasing demand for lithium-based products. Piedmont Lithium’s strategic partnerships with industry leaders like LG Chem highlight its commitment to building a robust supply chain for the burgeoning electric vehicle market.

MP Materials Corp. (NYSE:MP) holds a unique position as the sole operator of a fully integrated rare earth mining and processing facility in the United States. The company’s focus on producing rare earth oxides and metals, critical components in various technologies, is particularly significant given the growing demand for these materials in emerging sectors like renewable energy and electronics. MP Materials’ vertical integration model ensures quality and consistency in its products, further strengthening its market position.

Rare Element Resources Ltd. (TSX:RES) is dedicated to the exploration and development of rare earth elements (REEs), crucial components in clean energy technologies. The company’s flagship Bear Lodge project in Wyoming, recognized as one of the world’s largest undeveloped REE deposits, holds immense potential to contribute to the global supply of REEs. REE’s commitment to sustainable and responsible mining practices underscores its dedication to ethical resource extraction and environmental stewardship.

Avalon Advanced Materials Inc. (TSX:AVL) is a Canadian company specializing in developing and manufacturing specialty materials for diverse industries. With expertise in high-purity metals and alloys used in electronics, aerospace, and biomedical applications, Avalon plays a vital role in advancing various technological fields. The company’s focus on developing materials for energy storage solutions, particularly lithium-ion and solid-state batteries, demonstrates its commitment to innovation and addressing the evolving needs of the market.

First Quantum Minerals Ltd. (TSX:FM) is a Canadian mining and metals company with a diverse global portfolio. The company’s operations span multiple countries and encompass the production of copper, nickel, gold, and zinc. First Quantum’s commitment to responsible mining practices and community engagement is evident in its efforts to create economic opportunities and minimize environmental impact in the regions where it operates.

Allkem Limited (TSX:AKE), an Australian mining company, is a significant player in the lithium market. Its diverse portfolio of lithium projects in Australia, Argentina, and Canada, including a substantial presence in the lithium-rich Salar de Atacama, positions it as a major contributor to the global lithium supply chain. Allkem’s integrated approach to lithium production, spanning exploration, production, and refining, solidifies its role in meeting the growing demand for lithium in the electric vehicle and renewable energy sectors.

Teck Resources Limited (TSX:TECK), a Canadian mining powerhouse, is a leading producer of zinc and copper. Its extensive operations in Canada, the United States, Chile, and Peru contribute significantly to the global supply of these essential metals. Teck’s zinc production is particularly noteworthy due to its critical role in various battery technologies, aligning with the increasing demand for energy storage solutions across multiple industries.

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(Bloomberg) — Whitehaven Coal Ltd., one of Australia’s largest coal producers, shelved a planned special purpose vehicle originally intended to provide in-house insurance after finding external insurers willing to take on the risk.

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The development follows Sydney-based Whitehaven’s $3.2 billion purchase of coking-coal operations from BHP Group Ltd., which has added production of raw materials needed for steelmaking to its portfolio of mines largely supplying fuel for power stations.

Acquisitions have created the necessary level of diversification to improve Whitehaven’s access to insurers, according to a spokesperson for the company. That means the SPV project, first announced two years ago, has effectively been put on ice.

Access to insurance is emerging as a key indicator for judging the level of corporate anxiety tied to climate change. Zurich Insurance Group AG walked away from a number of commodities exposures earlier this year, including new metallurgical coal mines after deeming them to be too risky.

As some insurers retreat, the fossil-fuel industry has turned to in-house so-called captive insurance SPVs, with BHP, the world’s biggest mining company by market value, as well as Glencore Plc and Shell Plc, among those to create such vehicles. The global market for captive insurance rose to a record last year, surpassing $200 billion in premiums, according to broker WTW. Companies using captive insurance transfer premiums to an SPV and reinvest any surplus cash. If a coverage need arises, they then tap the SPV.

Whitehaven, which declined to identify the external insurance firms it’s using, says the original need for an SPV is no longer as urgent because metallurgical coal now accounts for a far larger chunk of its total business. Most banks and asset managers treat that commodity as a more acceptable risk than thermal coal, which is used to generate heat and electricity.

That’s largely because of the role that metallurgical coal plays in the production of steel, which is an essential component in the clean-energy transition. Of 60 global banks analyzed by French nonprofit Reclaim Finance, just nine have adopted metallurgical coal policies, compared with 47 for thermal coal. Some of the banks have even begun to backtrack on their metallurgical coal commitments, according to Reclaim Finance.

Whitehaven previously generated almost all of its revenue from thermal coal, though the share fell to 41% in the second quarter, following the addition of BHP’s Blackwater and Daunia mines in Australia. Metallurgical sales are likely to continue to account for a rising share of the total, Whitehaven said in a July filing.

Advocates for climate action insist it’s wrong to treat metallurgical coal as a less environmentally harmful material. Met coal — also called coking coal — can be up to three times more polluting than thermal coal, according to Wood Mackenzie, an energy consultancy. However, global exports of thermal coal are far higher, at about 1.1 billion tons in 2023, compared with 348 million tons for metallurgical coal, according to data compiled by Australia’s government.

“Coal is coal, and it is a major source of carbon emissions, whatever the end use,” said Cynthia Rocamora, an industry campaigner at French climate nonprofit Reclaim Finance.

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In the insurance sector, 46 firms have committed to end or restrict services for coal, according to Insure our Future, a coalition of nonprofits. Zurich is the first to have added restrictions on metallurgical coal mining.

But even Zurich qualifies its restrictions. The company said in an email that steel remains essential for the net zero transition. An immediate phaseout of metallurgical coal isn’t feasible due to technological and economic constraints.

Zurich’s current position restricts underwriting for new metallurgical coal projects because existing mines are expected to meet demand until scalable alternatives are available, the company said.

Whitehaven will continue to explore alternative sources of insurance to make sure it isn’t paying more than it needs to, the company’s spokesperson said. It hasn’t ruled out creating an in-house SPV at a future date, the person said.

(Adds line from Reclaim Finance in seventh paragraph.)

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Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm concluded an unsatisfactory fiscal year of operations. It owns a few not-so-good holdings and some delayed-gratification positions since the market generally dislikes small-cap value stocks. In the third quarter, the fund returned 3.70% (net of fees) compared to 9.27% for the Russell 2000 Index and 10.15% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Cove Street Capital Small Cap Value Fund highlighted stocks like Compass Minerals International, Inc. (NYSE:CMP), in the third quarter 2024 investor letter. Compass Minerals International, Inc. (NYSE:CMP) is an essential minerals provider that operates through Salt and Plant Nutrition segments. The one-month return of Compass Minerals International, Inc. (NYSE:CMP) was 56.76%, and its shares lost 55.43% of their value over the last 52 weeks. On October 7, 2024, Compass Minerals International, Inc. (NYSE:CMP) stock closed at $12.18 per share with a market capitalization of $503.446 million.

Cove Street Capital Small Cap Value Fund stated the following regarding Compass Minerals International, Inc. (NYSE:CMP) in its Q3 2024 investor letter:

"Viasat (ticker: VSAT), E.W. Scripps (ticker: SSP), and Compass Minerals International, Inc. (NYSE:CMP) were our biggest detractors this year. Each has specific fundamental problems, but they share perceptions of balance sheet issues that we would suggest are producing grossly negative viewpoints on their respective stock prices. Viasat just refinanced most of its debt stack which puts that to rest; Scripps has stated they will sell its Bounce TV network by the November earnings call; and Compass booted its CEO, and we believe we are days or quarters from a “for sale” sign. Not our finest moments, but all are stupid cheap in our opinion with real asset support. Recent Fed decisions should help here."

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

Compass Minerals International, Inc. (NYSE:CMP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Compass Minerals International, Inc. (NYSE:CMP) at the end of the second quarter which was 25 in the previous quarter. While we acknowledge the potential of Compass Minerals International, Inc. (NYSE:CMP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Compass Minerals International, Inc. (NYSE:CMP) and shared the list of worst falling stocks to buy. In the previous quarter Cove Street Capital Small Cap Value Fund reset its position in Compass Minerals International, Inc. (NYSE:CMP) from 5% to 2.5%. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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

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

Ally Financial ALLY is a diversified financial services company providing several financial products and services to automotive dealers and their customers. The Zacks Consesnsus Estimate for its current year earnings has been revised 15.4% downward over the last 60 days.

BHP Group Limited BHP is one of the world's largest diversified resource companies with operations across several continents. The Zacks Consensus Estimate for its current year earnings has been revised 6.5% downward over the last 60 days.

Dine Brands Global DIN is a full-service dining company which operates and franchises restaurants under both the Applebee's Neighborhood Grill & Bar and IHOP brands. The Zacks Consensus Estimate for its current year earnings has been revised almost 4.9% downward over the last 60 days.

View the entire Zacks Rank #5 List.

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For Immediate Releases

Chicago, IL – September 20 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Exxon Mobil Corp. XOM, Salesforce, Inc. CRM and BHP Group Ltd. BHP and Oil-Dri Corp. of America ODC.

Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for ExxonMobil, Salesforce and BHP

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 Exxon Mobil Corp., Salesforce, Inc. and BHP Group Ltd. , as well as a micro-cap stock Oil-Dri Corp. of America . The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.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 >>>Exxon Mobil shares have outperformed the Zacks Oil and Gas – Integrated – International industry over the past year (+2.2% vs. -1.4%). The company being a reliable player in the energy sector, boasts a resilient capital structure, a robust balance sheet and track record of prudent capex management.Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity. ExxonMobil prioritizes shareholder returns, evidenced by substantial share buybacks. ExxonMobil’s entry into the lithium market positions it for long-term gains as the demand for lithium is poised to increase with the growing adoption of electric vehicles.However, challenges loom, notably in the upstream operations, which are susceptible to volatile oil prices and regulatory hurdles. Increasing societal focus on environmental risks and climate change pose a threat to its traditional oil & gas business. Further, exposure to OPEC production cuts adds to uncertainties.(You can read the full research report on Exxon Mobil here >>>)Shares of Salesforce have gained +17.7% over the past year against the Zacks Computer – Software industry’s gain of +30.2%. The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver.The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space.According to the Zacks analyst estimates Salesforce revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2027. However, stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties might hurt its growth prospects.(You can read the full research report on Salesforce here >>>)BHP’s shares have declined -3.5% over the past year against the Zacks Mining – Miscellaneous industry’s decline of -5.0%. The company expects iron ore production for fiscal 2025 at 255-265.5 Mt. The midpoint of the range indicates in-line results with fiscal 2024. Its copper guidance of 1,845-2,045 kt indicates 4% growth at the midpoint. Iron ore prices have declined 33% year to date due to weak demand in China.Copper prices will also likely be impacted by contraction in the manufacturing sector. While the increase in production might boost BHP’s results, it will be offset by lower prices and higher costs. The Zacks analyst expects a recovery in iron ore prices aided by infrastructure demand in the United States.The long-term outlook for copper prices remains positive, supported by demand for electric vehicles. BHP’s investment in projects focused on future-facing commodities and its efforts to improve operational efficiency through technology will also drive growth.(You can read the full research report on BHP here >>>)Shares of Oil-Dri have outperformed the Zacks Chemical – Diversified industry over the past year (+6.9% vs. -0.5%). This microcap company with market capitalization of $494.38 million has acquired Ultra Pet Company, which strengthens its position in the high-growth crystal cat litter segment and is expected to boost earnings. ODC’s third-quarter fiscal 2024 sales reached $106.8 million, marking 12 consecutive quarters of year-over-year growth.The company increased its dividend 7% for the 21st consecutive year. Product launches like Cat’s Pride Antibacterial Clumping Litter enhance its competitive edge. Yet, SG&A expenses grew 51% year over year in third-quarter fiscal 2024, reducing operating income 28%.Agricultural and animal health product sales fell 24% and 17% year over year, respectively. ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. High advertising costs impacted the company's profitability.(You can read the full research report on Oil-Dri here >>>)

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

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We recently published a list of 7 Best ASX Stocks To Invest In Right Now. In this article, we are going to take a look at where BHP Group (NYSE:BHP) stands against other ASX stocks to invest in right now.

Overview of the Australian Economy

According to a report by the Australian Bureau of Statistics, Australia’s economy is growing at a sluggish pace as GDP for the June quarter increased by just 0.2%, bringing the annual growth rate to 1% for the year to June however, Australia continues to narrowly avoid a recession. According to Katherine Keenan, head of national accounts at the Australian Bureau of Statistics, the annual financial year economic growth was the lowest since 1991-92 excluding the Covid-19 pandemic period.

For the year to July, the Consumer Price Index (CPI) fell to 3.5%, from 3.8% in June which signals that inflation may be starting to ease. This reduction was largely attributed to energy rebates introduced by state and federal governments. In response, three of Australia’s big four banks have slashed interest rates on term deposits by as much as 80 basis points, signaling expectations of a significant rate cut in 2025. However, experts warn that inflation for the year to June remains “stubbornly high.” The Reserve Bank of Australia (RBA) has an inflation target of 2%-3%, and economists predict that rate cuts will likely not occur before 2025 due to inflationary pressures. Jim Chalmers, Treasurer of Australia acknowledged the economic stagnation and attributed the slow growth to a combination of global economic uncertainty, and the burden of higher interest rates.

Despite the economic challenges, wages in Australia continue to rise steadily, with a 4.1% increase for the year to June, slightly lower than the 4.2% growth recorded at the end of 2023. Private sector wages grew by 0.7% during the June quarter, down from 0.9% in the March quarter, while public sector wages saw a 0.9% increase, up from 0.6%.

Australian Equities Amid Inflation and Rising Rates

According to Schroders’ head of Australian equity, Martin Conlon, Investor sentiment toward investing in Australia reflects a cautious yet strategically optimistic approach, over the past decade, Australian equities, particularly in technology, growth, and green energy sectors, have enjoyed significant growth driven by speculative investment and aggressive financial leverage due to low borrowing costs. However, with the recent return of inflation and the necessity of higher interest rates, this sentiment has tempered.

However, real economy sectors such as resources, energy, and materials have gained traction due to more favorable investment opportunities. The mining sector, which represents a significant portion of Australia’s economic output, remains particularly attractive. Australia’s iron ore exports have long been a cornerstone of the economy, and global demand remains robust. Some of the largest mining companies in Australia maintain competitive advantages due to their low-cost operations, especially in iron ore production, which continues to generate strong cash flows even as global commodity demand fluctuates. Furthermore, Australia’s reserves of critical minerals like lithium and rare earths, essential for renewable energy technologies, position the country at the forefront of this transformation.

Investors are now prioritizing sectors with reasonable valuation levels and sound fundamentals, particularly those with exposure to the real economy. Resource stocks stand to benefit from global deglobalization trends as Western economies reduce their reliance on Chinese manufacturing. This shift is expected to result in higher costs for goods, further supporting the case for investing in resource-heavy sectors.

Despite the economic slowdown and inflationary pressures, the country continues to narrowly avoid recession. However, Australia’s unique position as a major commodities exporter and its exposure to the energy transition present compelling opportunities.

Our Methodology

For this article, we used the Finviz and Yahoo Finance stock screeners plus online rankings to compile an initial list of the 20 largest companies in Australia by market cap. From that list, we narrowed our choices to the 7 stocks with the most hedge fund holders, as of Q2 of 2024. The list is sorted in ascending order of the number of hedge funds.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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

BHP Group (NYSE:BHP)

Number of Hedge Fund Investors in Q2 2024: 22

BHP Group (NYSE:BHP) is a leader in mining, metals, and petroleum. Its operations span multiple sectors, including iron ore, copper, coal, and oil.

For the year ending June 30, BHP Group (NYSE:BHP) hit several production records, including record copper output at the Spence mine and robust iron ore production. Copper production rose by 9% year-over-year, with an EBITDA margin of 51%, while iron ore production reached 259.7 Mt. Additionally, BHP Group’s (NYSE:BHP) potash projects are also progressing well, with Jansen Stage 1 ahead of schedule at 52% completion, and Jansen Stage 2 in its early phase at 2% completion. For 2025, BHP expects a further 4% increase in copper production.

On August 30, BHP Group (NYSE:BHP) announced plans to expand its smelter and refinery operations at Olympic Dam in South Australia. BHP Group (NYSE:BHP) aims to boost copper production in South Australia from 322,000 tonnes last year to 500,000 tonnes of refined copper cathode by the early 2030s, with potential growth to 650,000 tonnes by the mid-2030s. Furthermore, BHP Group (NYSE:BHP) has declared an Inferred Mineral Resource at Oak Dam, estimated at 1.34 billion tonnes with a copper grade of 0.66% and a gold grade of 0.33 grams per tonne. This includes a section with 220 million tonnes at 1.96% copper and 0.68 grams per tonne of gold.

The World Bank projects copper prices to rise by 4% next year, and Forbes estimates copper demand will increase by 75% by 2050. The company’s valuation is also appealing, as the stock is currently trading at 10.33 times earnings, a 34.87% discount compared to the sector median of 15.86. Analysts have a consensus Buy rating on the stock, with an average price target of $61.38 which indicates a potential a 13% upside from current levels. As of the second quarter, BHP Group’s (NYSE:BHP) stock is held by 22 hedge funds, with a total stake valued at $1.25 billion. Fisher Asset Management is the largest shareholder in the company and owns shares worth $1.21 billion as of June 30.

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

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

(Bloomberg) — In the dusty, treeless outback of Southern Australia, a brand new mining camp is home to a hundred workers, putting in 12-hour days, two weeks at a time. Dozens of trucks are scattered across the vast acreage, mounted with towering rigs drilling more than 2 kilometers (1.3 miles) underground. All are focused on the hunt for one of the world’s most coveted minerals: copper.

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Oak Dam, discovered by BHP Group geologists in 2018, is a glimmer of hope for Chief Executive Mike Henry, who sees global copper demand doubling over the coming decades as the energy transition takes hold, and wants his company to produce more of it. The deposit is also a rarity — if all goes to plan, a new operation will be built here by the world’s largest miner, from scratch.

“Globally, there would be few companies conducting drilling campaigns of this scale, to this depth,” said Michael Fonti, BHP’s main exploration geologist at the site, pointing out a diagram of the cone-shaped deposit.

Fonti has spent more than two decades on sites much like this one, working most recently at the miner’s nearby Olympic Dam, a vast, challenging copper and uranium operation. But even for BHP — a $140 billion company which generated almost $12 billion in free cash flow in the last financial year — large, greenfield projects are scarce, and becoming more so. Deals, not discoveries, are grabbing the headlines.

Copper’s bull narrative, which helped prices hit an all-time high in May, is well understood. Electrification, wealthier populations and an expanding, energy-hungry technology sector are vast new sources of demand. An electric vehicle requires roughly three times the copper that goes into a conventional car, and the energy transition won’t happen without enough red metal for grids, batteries and chips.

This should all be prompting a surge in prospecting and digging, to ensure supply keeps up, especially as large, established mines age. It isn’t — and that risks making this much-needed metal punitively expensive.

Miners have been in spending purgatory for over a decade, atoning for the excesses of the last boom. For years, investors demanded generous returns, not production growth and certainly not risk. But now that diggers can open the purse strings again, high costs, slow permits and other hurdles are pushing the largest metal producers to buy — not build.

BHP, even with its effort to build out the copper belt of South Australia, is no exception.

Asked at its earnings briefing last month, Henry said the company was opportunistic about deals and not pursuing them at the expense of exploration, nor was BHP making a blanket decision on cost. There was no rule of thumb on buying or building, he said.

Still, in less than two years, BHP has bought copper and gold producer OZ Minerals for $6.4 billion, betting on South Australia’s copper province; tried and failed to buy peer Anglo American Plc for $49 billion, in large part for its South American copper mines; then in July agreed to buy copper miner Filo Corp. jointly with Lundin Mining Corp, a bet on a project in development on the Argentina/Chile border.

“Mining is cyclical, and a key factor driving the trend of buying over building is the point in the cycle,” said Campbell Cooper, a Melbourne-based advisor at Greenhill & Co., an investment bank. “Recent years have also seen an acceleration in the cost of building new mine capacity. Arguably that cost may not be fully reflected in equity valuations, making buying more attractive.”

Building from zero, in short, is both worryingly risky and unappealingly pricey.

No wonder, then, that only roughly a quarter of the sector’s sanctioned — or approved — projects between 2019 and 2023 were of the greenfield variety, according to analysts at Jefferies LLC. That’s down from more than half in the 2009 to 2013 period. The size of new projects is also shrinking.

“There was a raft of copper discoveries in the 1950s, 60s, 70s, and 80s,” said BHP’s Fonti. “Everything being produced now is from that era of discoveries.” Escondida, the world’s largest copper mine, dates back to the late 1970s and early 1980s.

Of course, BHP has invested in development — it approved nearly $5 billion for its potash operation last year — but its exploration budget remains modest, even for copper. While it has nearly tripled its annual greenfield spending from the start of the decade to $124 million in the year to June, that compares to $324 million spent on greenfield exploration alone back in its 2012 financial year.

Peers follow similar patterns. Rio Tinto Group, which has not done large-scale deals of late, spent $300 million on greenfield exploration in 2023. Anglo American Plc and Freeport-McMoRan Inc have spent less. Glencore Plc does not detail exploration spending, but its focus has been on existing deposits in its portfolio.

“Ultimately the industry needs continual investment in exploration and new discoveries. M&A is important to put assets into the hands of the optimal owners, but will not materially increase overall industry supply,” said Sam Brodovcky, head of metals and mining M&A at Standard Chartered Plc. “And for key commodities such as copper, we need to increase supply not only to replenish depleting mines but also to keep up with growing demand as the world industrializes and transitions to clean energy.”

Henry says large players like BHP are well placed when it comes to adding supply. As greenfield risks increase, the industry’s behemoths can unlock more metal with the expansion of existing projects, thanks to large balance sheets and technical capability.

They are also betting on less risky exploration by supporting junior miners — as with BHP’s Xplor program, which provides modest funding with the potential for much more if prospecting is successful.

What is less clear is whether this will be enough to provide the metal the world needs.

Juniors, lower down the mining food chain, have long taken on much of the sector’s exploration risk. But that proportion is now increasing just as investment in smaller outfits falls.

“We've got to a point where we're quite reliant on juniors to explore. It's very difficult seeing that continuing if they're not getting the equity that they need,” said Sandra Occhipinti, a geologist and researcher at Australia’s national science agency, Commonwealth Scientific and Industrial Research Organisation.

Richard Schodde, a veteran geologist and expert on South Australia’s copper belt, puts the number of discoveries made each year at only a handful. He describes BHP’s lucky strike at Oak Dam in 2018 “was probably the most spectacular” of recent years.

Price is clearly one reason holding back the splurge that could change that. Copper has enjoyed a bull run on fears of supply disruption and hopes of soaring green demand. Prices topped US$11,000 a ton earlier this year. But the global economy is faltering and copper needs to reach $12,000 a ton — a near-30% jump on current prices — to incentivize large-scale investments in new mines, according to Olivia Markham, who co-manages the BlackRock World Mining Fund.

Copper’s improvement since the price trough of 2020 has not been enough. Costs are rising too fast as exploration teams need go deeper, into more technically challenging deposits or into less desirable regions.

Take Oak Dam, where the bottom of the deposit is some four kilometers underground — depths where heat from the earth’s core starts to become a problem. Or even Olympic Dam’s next phase of exploration, Olympic Dam Deeps. BHP’s recently acquired Filo asset in South America, meanwhile, sits some 5,000 meters above sea level, where the air is so thin helicopters struggle to hover.

“Once upon a time you could just kick rocks. It’s not for the faint-hearted — and only one exploration campaign out of a thousand results in a discovery,” says Karol Czarnota, a director at Geoscience Australia, a government agency set up to encourage mining. Oak Dam was found using some of its data.

One area of good news is technology. New gadgets and better geological information are allowing even the reassessment of existing repositories of data. Core libraries around Australia, for example, hold over 100 million meters of rocks from drilling campaigns of past booms, free for geologists looking for mineralization missed by others.

But even at Oak Dam, a deposit that was almost missed until new geophysics techniques could unlock it, that cheer is tempered. The slow pace of mine development means a final investment decision will not come until 2027 at the earliest. Copper production will still be years away.

–With assistance from James Attwood.

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Thursday, September 19, 2024The 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 Exxon Mobil Corp. (XOM), Salesforce, Inc. (CRM) and BHP Group Ltd. (BHP), as well as a micro-cap stock Oil-Dri Corp. of America (ODC). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.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 >>>Exxon Mobil shares have outperformed the Zacks Oil and Gas – Integrated – International industry over the past year (+2.2% vs. -1.4%). The company being a reliable player in the energy sector, boasts a resilient capital structure, a robust balance sheet and track record of prudent capex management. Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity. ExxonMobil prioritizes shareholder returns, evidenced by substantial share buybacks. ExxonMobil’s entry into the lithium market positions it for long-term gains as the demand for lithium is poised to increase with the growing adoption of electric vehicles. However, challenges loom, notably in the upstream operations, which are susceptible to volatile oil prices and regulatory hurdles. Increasing societal focus on environmental risks and climate change pose a threat to its traditional oil & gas business. Further, exposure to OPEC production cuts adds to uncertainties.(You can read the full research report on Exxon Mobil here >>>)Shares of Salesforce have gained +17.7% over the past year against the Zacks Computer – Software industry’s gain of +30.2%. The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. According to the Zacks analyst estimates Salesforce revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2027. However, stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties might hurt its growth prospects.(You can read the full research report on Salesforce here >>>)BHP’s shares have declined -3.5% over the past year against the Zacks Mining – Miscellaneous industry’s decline of -5.0%. The company expects iron ore production for fiscal 2025 at 255-265.5 Mt. The midpoint of the range indicates in-line results with fiscal 2024. Its copper guidance of 1,845-2,045 kt indicates 4% growth at the midpoint. Iron ore prices have declined 33% year to date due to weak demand in China. Copper prices will also likely be impacted by contraction in the manufacturing sector. While the increase in production might boost BHP’s results, it will be offset by lower prices and higher costs. The Zacks analyst expects a recovery in iron ore prices aided by infrastructure demand in the United States. The long-term outlook for copper prices remains positive, supported by demand for electric vehicles. BHP’s investment in projects focused on future-facing commodities and its efforts to improve operational efficiency through technology will also drive growth.(You can read the full research report on BHP here >>>)Shares of Oil-Dri have outperformed the Zacks Chemical – Diversified industry over the past year (+6.9% vs. -0.5%). This microcap company with market capitalization of $494.38 million has acquired Ultra Pet Company, which strengthens its position in the high-growth crystal cat litter segment and is expected to boost earnings. ODC’s third-quarter fiscal 2024 sales reached $106.8 million, marking 12 consecutive quarters of year-over-year growth.The company increased its dividend 7% for the 21st consecutive year. Product launches like Cat’s Pride Antibacterial Clumping Litter enhance its competitive edge. Yet, SG&A expenses grew 51% year over year in third-quarter fiscal 2024, reducing operating income 28%. Agricultural and animal health product sales fell 24% and 17% year over year, respectively. ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. High advertising costs impacted the company's profitability.(You can read the full research report on Oil-Dri here >>>)Other noteworthy reports we are featuring today include SAP SE (SAP), Cintas Corp. (CTAS) and The PNC Financial Services Group, Inc. (PNC).Mark VickerySenior EditorNote: 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

ExxonMobil's (XOM) Starbroek & Permian Oil Discoveries Aid

Digital Transformation and Acquisitions Aid Salesforce (CRM)

Investments to Drive BHP Group (BHP) Amid Price Volatility

Featured Reports

Uniform Rental Unit Aids Cintas (CTAS) amid Rising Costs Per the Zacks analyst, Cintas' Uniform Rental and Facility Services unit is driven by the penetration of additional products and services into existing customers. High costs remain a concern.

Strategic Alliances Aid PNC Financial (PNC), High Costs AilPer the Zacks Analyst, PNC Financial's partnership with TCW Group is set to help it gain a significant share of the expanding private credit market. Yet, the rising expense base is a concern.

Robust Surgical Business Aid Alcon (ALC), Margin Issues StayThe Zacks analyst is impressed with Alcon's diverse portfolio and incremental innovation that is driving the Surgical business' growth. Yet, mounting expenses are putting pressure on margins.

Sysco (SYY) Gains on Growing Food-Away-From-Home ChannelPer the Zacks analyst, Sysco is benefiting from upswing in its Food-Away-From-Home channel. In the fourth quarter of fiscal 2024, the company saw a 3.5% increase in U.S. Foodservice volume.

United Therapeutics' (UTHR) PAH Portfolio Drives GrowthThe Zacks Analyst believes that demand for United Therapeutics' PAH medicines is strong. Potential approvals for expanded use of Orenitram and Tyvaso and its pipeline can drive long-term growth

Ryder (R) Benefits From Dividends & Buyback Amid High DebtThe Zacks analyst likes the shareholder-friendly measures adopted by Ryder. However, high debt does not bode well for its bottom line.

Premier Office Spaces Demand to Aid Cousins Properties (CUZ)Per the Zacks analyst, Cousins Properties' strengths arise out of its Class A office asset portfolio in the high-growth Sun Belt markets. However, competition and high supply are concerns.

New Upgrades

Solid Momentum in Cloud Business Driving SAP's PerformancePer the Zacks Analyst, SAP's performance is benefitting from its strengthening cloud business, mainly Rise with SAP solution. Its Business AI offerings also gaining steady traction.

Marathon's (MPC) Buyback Focus Improves Shareholder ReturnThe Zacks analyst likes Marathon Petroleum's commitment to shareholder value through aggressive buybacks. Since May 2021, it has reduced its share count by nearly 50%.

Universal Health (UHS) Rides on Solid Acute Care PlatformPer the Zacks Analyst, growing patient admissions and expansion initiatives in the Acute Care Hospital Services unit drives revenue growth. An adequate cash balance ensures business investments.

New Downgrades

Competition From Clean Fuel Sources Ail Arch Resources (ARCH)Per the Zacks analyst, Arch Resources' results are adversely impacted as emissions concerns push coal back in comparison with other clean fuel sources. Strict regulations also act as a headwind.

Soft Housing Market & Increased Expenses Hurt RH's ProspectsPer the Zacks analyst, RH's prospects are hurt due to an unaddressed backlog, long special orders lead times and increased costs and expenses. Also, soft housing market trends add to the concerns.

Dillard's (DDS) Sales Hurt By a Tough Operating LandscapePer the Zacks analyst, Dillard's is struggling with a tough retail environment due to the cautious buying behavior of consumers. This is hurting sales, which fell 4.9% in second-quarter fiscal 2024.

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Oil-Dri Corporation Of America (ODC): Free Stock Analysis Report