La catena delle opzioni mostra i dati chiave delle opzioni azionarie di BHP Group a vari prezzi di esercizio e date di scadenza. I trader utilizzano queste informazioni per analizzare potenziali operazioni e valutare il sentiment del mercato per BHP Group..

BHP Group (NYSE:BHP) Azioni, Catena delle Opzioni

BHP Group

BHP is a global diversified miner mainly supplying iron ore and copper. The merger of BHP Limited and Billiton PLC created the present-day BHP Group. The dual-listed structure from the 2001 BHP and Billiton merger was collapsed in 2022. Major assets include Pilbara iron ore and Escondida copper. Onshore us oil and gas assets were sold in 2018 and the remaining Petroleum assets were spun off and merged with Woodside in 2022, with BHP vesting the Woodside shares it received to BHP shareholders. It purchased copper miner Oz Minerals in fiscal 2023 and is entering the potash market through the development of its Jansen project in Canada. However, due to low nickel prices, BHP is placing its nickel business on care and maintenance in late 2024.

BHP Group Limited American Depositary Shares (Each representing two Ordinary Shares)

BHP Group Ltd

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BHPA Inc

BHP BILLITON LTD ORD by BHP Group Limited

BANCO HIPOTECRIO S/ADR D by Banco Hipotecario S.A.

Banco Hipotecario SA

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Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTC">AAUKF</a>) has agreed to sell its 33.3% stake in the Jellinbah Group to Zashvin for $1.1 billion. Per the plan laid out <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/38826363/anglo-american-expedites-plan-to-divest-de-beers-other-assets-after-rebuffing-bhp-takeover-bid" rel="noreferrer noopener">earlier this year</a>, the company is focusing on <a target="_blank" href="https://www.benzinga.com/topic/copper" rel="noreferrer noopener">copper</a>, iron ore, and crop nutrients.
The joint venture holds a 70% interest in two major metallurgical coal mines in Queensland: Jellinbah East and Lake Vermont. Anglo did not operate these mines nor market their output.
"We are making excellent progress with our simplification of Anglo American to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore, and crop nutrients assets &#8211; all future-enabling products," <a target="_blank" href="https://www.angloamerican.com/media/press-releases/2024/04-11-2024" rel="noreferrer noopener">said</a> CEO Duncan Wanblad.
Despite its unpopular status due to environmental concerns, coal remains an important commodity. A recent <a target="_blank" href="https://www.benzinga.com/news/24/11/41710410/australian-breakthrough-extends-use-for-coal-powered-plants-helps-shift-to-renewables" rel="noreferrer noopener">Australian achievement</a> in shutting down and restarting a power plant shows that its decline could be much more gradual than anticipated.
Still, Anglo American is set on divesting its remaining coal assets, aiming to net between $5b and $6b. Talks are underway with potential buyers, including Peabody (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTU#NYSE">BTU</a>), Yancoal (OTCPK: YACAF), and Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) &#8211; which has decided against <a target="_blank" href="https://www.benzinga.com/m-a/24/08/40216672/glencore-votes-against-spinning-off-coal-remains-open-to-more-acquisitions" rel="noreferrer noopener">spinning off its coal business</a>.
"This highly cash generative and much higher margin portfolio will offer greater resilience through cycles and the benefit of significant high-quality and well-sequenced growth options," Wanblad noted regarding the process.
Anglo American's broader restructuring efforts were announced earlier this year amidst an attempted takeover by BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>). Besides coal, the plan involved shedding even South African De Beers, the world's largest diamond producer.
However, challenges in the diamond market have made a sale less feasible, with Anglo preferring to wait for market recovery to optimize value from its "crown jewel." A complicated situation with South African assets is often quoted as one of the biggest hurdles in BHP's <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/39068033/time-runs-out-for-bhp-deal-49-billion-acquisition-of-anglo-american-proves-too-complex-to-solve" rel="noreferrer noopener">failed bid</a>.
Although a recent comment from BHP's chairman signaled that both parties have moved on, the miner quickly retraced that comment. The mandatory standstill on offers expires on November 29, with Anglo's market cap currently at approximately $42 billion—$47 billion below BHP's final $49b bid in May.
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Anglo American Offloads $1.1 Billion Coal Stake, Proceeds With Restructuring

<h3 class="wp-block-heading">Bankruptcy Block</h3>
TGI Fridays just rang the "last call" for a financial lifeline, filing for Chapter 11 bankruptcy in Texas. Known for its appetizers, wings, and cocktails, the restaurant chain plans to keep its 39 company-owned locations open as it attempts to restructure its finances and <a href="https://www.benzinga.com/topic/mergers-and-acquisitions">&#8220;explore strategic alternatives&#8221; for the future</a>. 
The 56 U.S. franchises and 40 international locations that are independently owned remain unaffected.
Executive Chairman Rohit Manocha attributed the chain's financial woes to the pandemic's aftermath and some dicey capital structure choices. Private equity firm TriArtisan Capital Partners owns TGI Fridays.
<h3 class="wp-block-heading">New On The Block</h3>
Inland Real Estate Income Trust Inc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/INRE#OTC">INRE</a>) hired BMO Capital Markets Corp. to advise a potential sale process. The real estate trust, which currently has a $395-million market cap, closed Friday in the red, with its shares down 1.35%, trading at $10.95.
BT (LSE: BT) tapped Citigroup to find a buyer for its financial services segment, Radianz, according <a href="https://www.ft.com/content/6fe5e337-18dc-4a32-8e6e-e759a977b490">to</a> the Financial Times.
DigitalBridge Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBRG#NYSE">DBRG</a>) is seeking to sell Brazil&#8217;s Scala Data Centers, for a price tag of $2 billion, <a href="https://www.bloomberg.com/news/articles/2024-10-24/digitalbridge-is-said-to-explore-a-sale-of-scala-data-centers">per</a> Bloomberg.
ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) is <a href="https://www.reuters.com/business/energy/conocophillips-explores-sale-permian-shale-assets-worth-over-1-billion-sources-2024-10-30/">auctioning</a> shale assets in the Permian Basin, Reuters reported. The oil giant expects more than $1 billion in proceeds. 
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<h3 class="wp-block-heading">Updates From The Block</h3>
BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) backtracks on <a href="https://www.benzinga.com/news/large-cap/24/11/41684205/bhp-backtracks-its-comments-on-abandoning-anglo-american-deal">comments about having "moved on"</a> from its failed Anglo American Plc. BHP Chairman Ken MacKenzie made the comments Wednesday at the company's shareholder meeting in Australia, Bloomberg first <a href="https://www.bloomberg.com/news/articles/2024-10-30/bhp-retreats-from-comments-about-moving-on-from-anglo-bid?sref=TBDibEcD">reported</a> this development. 
Telephone and Data Systems, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>) CFO Vicki Villacrez discussed an ongoing sale process during a recent earnings call. The company, after closing the sale of OneNeck IT Solutions in September, agreed to divest other assets. Those deals are expected to close later this year.
Blackstone is considering a $3.5-billion purchase of minority stakes in interstate natural gas pipelines owned by EQT Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>), Reuters reported.
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Deal Dispatch: TGI Fridays Goes Bankrupt, BHP Backtracks Comments And More M&A News

BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) has backtracked on remarks by its Chairman, Ken Mackenzie, about "moving on "from its <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/39068033/time-runs-out-for-bhp-deal-49-billion-acquisition-of-anglo-american-proves-too-complex-to-solve" rel="noreferrer noopener">failed $49 billion bid</a> for Anglo American (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTCQX">AAUKF</a>).
During BHP's annual shareholder meeting in Brisbane, MacKenzie had suggested that the Anglo American acquisition was a "nice to have, not a must-do" and indicated that BHP had put the deal behind them, <a target="_blank" href="https://www.theguardian.com/business/2024/oct/30/mining-firm-bhp-says-it-has-moved-on-from-failed-anglo-american-bid" rel="noreferrer noopener">reported</a> The Guardian.
"We thought there was an opportunity here to create something unique and special&#8230; But Anglo American shareholders had a different view, and so they moved on. And quite frankly, so have we," he stated.
However, BHP issued a <a target="_blank" href="https://www.bhp.com/news/media-centre/releases/2024/10/statement-regarding-anglo-american-plc" rel="noreferrer noopener">statement</a> clarifying that these comments were not intended to be a formal withdrawal from pursuing the deal under U.K. takeover regulations.
Following a discussion with the U.K. Takeover Panel, BHP confirmed that the panel would not treat MacKenzie's remarks as an official "no offer" statement, meaning the door remains open for a potential future bid.
Initially <a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38423994/worlds-largest-miner-bhp-bids-to-takeover-anglo-american-as-hunt-for-resources-intensify" rel="noreferrer noopener">proposed in April</a>, BHP's bid for Anglo American sought access to Anglo's lucrative copper assets in South America – as the price for the metal crucial in the green energy transition surged toward its <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/05/38901984/silver-rockets-to-11-year-highs-copper-hits-record-peak-gold-approaches-historic-" rel="noreferrer noopener">yearly high in May</a>.
Despite the strategic fit, the deal faced hurdles, particularly concerning Anglo's South African assets. BHP hesitated to retain those due to regulatory complexities and economic risks associated with South Africa's business environment.
Unable to secure the deal, BHP turned to its key assets, looking to expand its Olympic Dam operation in South Australia and the Escondida mine in Chile; however, their domestic operations face challenges that could drive higher costs.
Australia's mining industry has been grappling with high labor expenses as worker shortages and competition drive wages upward. New labor laws, including the "Same Job, Same Pay" initiative, have raised concerns over their potential to <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/07/39647424/bhp-cuts-employee-incentives-misses-performance-goals" rel="noreferrer noopener">increase operational costs</a>.&nbsp;
At the Brisbane meeting, labor issues were a key focus, with hundreds of workers protesting BHP's stance on the new legislation and its effect on profitability.
Still, the company managed to increase its footprint in South America. In July, it <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition" rel="noreferrer noopener">announced a bid</a> for Filo Corp (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/FLMMF#OTCQX">FLMMF</a>). Through a 50-50 joint venture with Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>), BHP will spend $2 billion to acquire a 50% stake in the promising Filo del Sol copper project on the Chilean-Argentine border and a 50% stake in Lundin's Josemaria project.
The mandatory standstill on a new bid for Anglo American expires on November 29.
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FLMMF

LUNMF

BHP Backtracks Its Comments On Abandoning Anglo American Deal

<a href="https://www.bloomberg.com/news/articles/2024-10-25/bhp-vale-reach-30-billion-brazil-settlement-over-dam-disaster">https://www.bloomberg.com/news/articles/2024-10-25/bhp-vale-reach-30-billion-brazil-settlement-over-dam-disaster</a>
Brazil has agreed to accept a 170 billion-real ($29.9 billion) settlement for a 2015 mining disaster at Vale SA and BHP Group's iron-ore joint venture.

VALE

'BHP, Vale Reach $30B Brazil Settlement Over Dam Disaster' - Bloomberg News

Brazillian mining company Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) has estimated the fines and compensation costs related to the 2015 Samarco dam collapse at $30 billion. 
After years of negotiations between the Brazilian federal and state governments and Vale, BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), and Samarco Mineração joint venture, the resolution for one of the worst environmental disasters in <a target="_blank" href="https://www.benzinga.com/topic/brazil" rel="noreferrer noopener">Brazil's history</a> is approaching.
The <a target="_blank" href="https://vale.com/w/vale-updates-on-settlement-negotiation-for-the-full-reparation-of-samarcos-fundao-dam-collapse/-/categories/1968803" rel="noreferrer noopener">settlement under discussion</a> would cover past and future obligations. Of the total $30 billion, $7.2 billion has already been invested in remediation and compensation efforts over the past years.
Another $19 billion will be paid over 20 years to fund compensatory programs aimed at the Brazilian government and the states of Minas Gerais and Espírito Santo, where the disaster caused significant damage. An additional $6.1 billion will be allocated to performance obligations, such as environmental recovery, resettlement, and individual indemnifications for affected communities.
The Samarco disaster occurred in November 2015 when the Fundão tailings dam, holding mining waste, collapsed in Mariana, Minas Gerais. The collapse unleashed millions of cubic meters of toxic sludge, killing 19 people, destroying entire communities, and severely polluting 500 kilometers of the Doce River, which holds sacred importance to the Krenak indigenous tribe.
The disaster left thousands homeless and caused irreversible damage to local ecosystems and livelihoods. In the years since, Vale, BHP, and Samarco have faced multiple legal challenges to ensure full reparation for the damage caused.
Although companies initially clashed over the settlement costs, they reached a consensus in July, agreeing to share the financial responsibilities. Still, besides the Brazilian settlement, BHP faces a separate class action lawsuit in the United Kingdom.
The lawsuit began this week at the London High Court and involved over 620,000 claimants, including Brazilians, local governments, and businesses affected by the disaster.
The claimants seek up to 36 billion pounds ($47 billion) in damages, alleging that BHP bears liability for the dam collapse.
BHP contests the lawsuit, arguing that its compensation efforts in Brazil, including the $8 billion paid through the Renova Foundation, are sufficient.
The trial could last up to 12 weeks, and if successful, it would become one of the largest compensation awards in British legal history, setting a precedent for global environmental liability.
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Image by Okan Caliskan via Pixabay

Vale Sets Samarco Dam Bill Estimate At $30B, BHP Faces UK's High Court

<a href="https://www.ft.com/content/88b88ac1-4ebc-41d5-9df8-a683ed19df4e" title="https://www.ft.com/content/88b88ac1-4ebc-41d5-9df8-a683ed19df4e">https://www.ft.com/content/88b88ac1-4ebc-41d5-9df8-a683ed19df4e</a>

'BHP chief sparks fresh Anglo bid speculation after South Africa trip' - Financial Times

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Shares of copper companies are trading lower possibly after China's September exports data missed estimates. Betting markets project Donald Trump's victory in the U.S. presidential election, which may result in a decline in demand for commodities related to renewable energy.

Shares of copper and iron ore companies are trading lower amid China stimulus uncertainty.

Everyone is now focused on mainstream Chinese stocks and their rallies resulting from the recent 50 basis point interest rate cut that the government just implemented there. However, these trades in names like Alibaba Group&nbsp;or Baidu Inc.&nbsp;might be getting a bit too crowded now. So, the next logical step is to look at the falling dominoes.
In this case, investors need to lean on the fundamentals of Chinese growth and its effects on other economies that support it, such as oil and steel exporters, or any commodity-based economy for that matter. Because China draws over a third of the world&#39;s oil demand, and its infrastructure demands are one of the biggest in the world as it is still a nation in its building, investors might want to focus on Brazil and even Australia to find potentially bullish trends.
It is stocks like Vale (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vale#NYSE">VALE</a>) acting as a steel and iron ore maker, which exports a large amount of its inventory to China, or companies like BHP Group Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) in the basic materials sector from Australia exporting more metal needs to China, and even the unlikely Exxon Mobil Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) in the United States acting as a support pillar in China&#39;s energy sector.
<h2>Key Tailwinds Position Vale Stock to Outperform the Market</h2>
Understanding that Brazil is now under new presidential leadership is vital. The ties between Brazil and China are stronger under this new administration, and therefore, exports from Vale may be one of the most bullish tailwinds that could hit the company in the coming quarters.
Now that the stock trades at 73% of its 52-week high, investors have a wider gap to run higher in a potential recovery or nearing previous highs. Here&#39;s what Wall Street has to say about this potential run-up. Analysts now see a consensus price target of up to $16.2 a share for Vale stock, a good start on a potentially bullish thesis.
Vale would need to rally by as much as 38.5% from where it trades today to prove these valuations right, essentially bringing it back to its yearly high. More than that, short interest declined by 3.7% in the past month to show bearish capitulation in the face of this potential demand.
Management&nbsp;cited a few benefits in its&nbsp;latest quarterly earnings release. The freight costs in the China-Brazil trade route are now lower, opening the stock to better profit potential. Management is confident in the company&#39;s future earning potential during these trends and&nbsp;has kept its $1.16 a share dividend payout.
This translates into a 9.9% dividend yield on an annual basis, which beats inflation and adds up to nearly 50% upside potential in this stock. This may be one of the reasons that VanEck Associates decided to boost their Vale stock holdings by 110.9% as of July 2024, bringing their net investment to $60.9 million today.
<h2>BHP Stock: A Strong Play for Momentum, Income, and Upside Potential</h2>
Better price action has landed on BHP stock, which now trades at 93% of its 52-week high. The bulls have already started to get behind this name because Australia is closer to China than Brazil. BHP&#39;s copper, coal, and iron are the perfect mix to satisfy China&#39;s energy demands in the near term.
Wall Street analysts noticed that the tailwinds created by China&#39;s recovery are set for BHP. Citigroup and Argus placed a respective Outperform and Strong Buy rating on this stock, signaling better sentiment from the sell side.
New ratings on the stock weren&#39;t the only piece of evidence investors needed to justify a potential buy. The Bank of Montreal decided to boost its BHP stock position by 532.2% as of August 2024. After this massive boost, the bank&#39;s holdings are now valued at $134.4 million.
Aside from this upside potential and price momentum, management is leaning on these China tailwinds to keep a payout of $2.93 a share for investors, translated to a 4.7% annual dividend yield today.
<h2>Exxon Mobil: The Top Stock for Investors to Ride the Oil Cycle</h2>
Bulls also came to call Exxon Mobil stock their home, as it now trades within 5% of its 52-week high. The key to this bullish price action is that Exxon lists China as one of its largest export clients.
Now that both the United States and China have cut interest rates, oil demand coming from both nations (which Exxon serves) is set to spike in the coming quarters. Analysts at the UBS Group landed on a $149 a share valuation for Exxon Mobil stock, calling for up to 27.2% upside from where the stock trades today.
These analysts aren&#39;t the only ones expecting a new high in the stock, as bears started to retreat over the past quarter, as seen in the company&#39;s short interest. After these bears left, those at Legal &amp; General Group decided to take their place by boosting their holdings by 19.3%, ending at a total investment of $3.7 billion today.
As a last check, Wall Street analysts now forecast Exxon Mobil&#39;s earnings per share (EPS) of $2.42 in the next 12 months, up 13% from today&#39;s $2.14 net earnings, outpacing most large-cap names in the S&amp;P 500.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/top-3-stocks-set-to-benefit-from-chinas-interest-rate-cuts/">Top 3 Stocks Set to Benefit from China&#39;s Interest Rate Cuts</a>&quot; first appeared on MarketBeat.

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Top 3 Stocks Set to Benefit from China's Interest Rate Cuts

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>HSBC analyst Sean McLoughlin downgraded the rating for GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) from Buy to Hold but raised the price target from $240 to $255. GE Vernova shares gained 1% to close at $254.68 on Thursday. <a href="https://www.benzinga.com/quote/GEV/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Macquarie analyst Eugene Hsiao downgraded Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) from Outperform to Neutral but increased the price target from $25 to $33. Li Auto shares fell 3.6% to close at $28.82 on Thursday. <a href="https://www.benzinga.com/quote/LI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>B of A Securities analyst Joshua Shanker downgraded the rating for Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>) from Neutral to Underperform but raised the price target from $264 to $275. Chubb shares fell 1% to close at $288.54 on Thursday. <a href="https://www.benzinga.com/quote/CB/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities analyst Jake Bartlett downgraded Dine Brands Global, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIN#NYSE">DIN</a>) from Buy to Hold and lowered the price target from $66 to $37. Dine Brands Global shares fell 2.9% to close at $33.55 on Thursday. <a href="https://www.benzinga.com/quote/DIN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Jefferies analyst Christopher LeFemina downgraded the rating for BHP Group Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) from Buy to Hold and slashed the price target from $72 to $68. BHP Group shares fell 2.5% to close at $60.89 on Thursday. <a href="https://www.benzinga.com/quote/BHP/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying LI stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="520" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04090804/image-21-1024x520.png" alt="" class="wp-image-580717" style="width:571px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04090804/image-21-1024x520.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04090804/image-21-300x152.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04090804/image-21-768x390.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04090804/image-21.png 1345w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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Downgrades

This Li Auto Analyst Is No Longer Bullish; Here Are Top 5 Downgrades For Friday

Jefferies analyst Christopher LeFemina downgrades BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) from Buy to Hold and lowers the price target from $72 to $68.

Jefferies Downgrades BHP Group to Hold, Lowers Price Target to $68

BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) expects global copper demand to grow by around 70% to over 50 million tons annually by 2050. The mining heavyweight released a new study pointing out the issues of the current cycle, including aging deposits and a less healthy pipeline of potential <a target="_blank" href="https://www.benzinga.com/topic/mining" rel="noreferrer noopener">mining projects</a>.
The detailed <a target="_blank" href="https://www.bhp.com/news/bhp-insights/2024/09/how-copper-will-shape-our-future" rel="noreferrer noopener">report</a> shows that copper's average annual demand growth was 3.1% over the last 75 years, but it significantly slowed down to 1.9% in the 15 years leading up to 2021.
The firm now expects a resurgence and growth of 2.6% through 2035, driven by three categories: traditional economic growth, green energy transition (renewable energy), and digital developments (data centers).
Three Pillars Of Demand
Emerging markets are also expected to play a role, as improving living standards drives copper demand. China and India, two of the world's most populous nations, provide a strong case for this scenario.
For example, despite China's massive copper consumption in the past two decades, its per capita stock of copper is still only half that of developed economies.
India's situation is similar, with electricity consumption significantly lower than that of China or Japan, suggesting the potential for a five-fold growth in copper demand in the coming decades.
Furthermore, the energy transition will provide additional momentum. Renewable energy sources like wind, solar, and hydro heavily rely on copper, as do electric vehicles (EVs) and their batteries, which need about three times more copper than internal combustion engine vehicles.
BHP expects the ongoing energy transition to account for more than 20% of total copper demand by 2040. Copper is also necessary for energy-efficient technologies like smart grids, heat pumps, and LED lighting.
As artificial intelligence (AI) technologies and data processing expand, the need for digital infrastructure will be another major contributor to future copper demand.
Data centers, which currently consume about 2% of global electricity, are expected to increase their copper demand sixfold by 2050. Digital growth is self-reinforcing, as it also drives energy demands—and if that energy comes from renewable sources, it requires more copper.
Supply Side's Persisting Issues
On the supply side, BHP is warning about significant challenges. Existing copper mines are aging, and large-scale greenfield copper prospects like Oak Dam in Australia are few and far between. Meanwhile, new projects—whether current mine expansions or entirely new developments—are <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40959939/copper-m-a-frenzy-masks-greenfield-exploration-weakness-is-ai-to-blame" rel="noreferrer noopener">increasingly complex and expansive</a>.
Additional drawbacks include declining ore grades and the need for substantial investment to modernize aging infrastructure. In the next decade, supply will be strained as copper production from existing mines could drop by 15%.
BHP expects the market to try to mitigate these challenges through recycling and secondary supply. By their estimates, scrap could account for up to 40% of copper supply by 2035. However, even with increased recycling efforts, the market will still need new mines—by their estimation, around 10 million tons of new mined supply for the next decade alone.
Owing to <a target="_blank" href="https://www.benzinga.com/news/24/09/40983325/mining-industry-needs-5-4-trillion-in-investments-to-meet-2035-demand-mckinsey-says" rel="noreferrer noopener">increasing costs</a>, regulatory hurdles, and technical challenges of working with lower-grade deposits, BHP believes the long-run marginal cost of new projects will likely determine future copper prices. Thus, the industry must develop high-quality brownfield expansions and new greenfield projects to solve these issues.
Read next:
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<li><a href="https://www.benzinga.com/news/large-cap/24/09/41098074/freeport-mcmoran-sticks-with-organic-growth-takes-advantage-of-geodiversity" target="_blank" rel="noreferrer noopener">Freeport-McMoRan Deviates From BHP, Rio Tinto Playbook: CEO Opts To Forgo M&amp;A</a></li>
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Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Photo via Shutterstock

BHP Sees Trend Reversal In Copper Growth, Warns Recycling Won't Be Enough

In August, the Federal Reserve's preferred inflation gauge, the <a href="https://www.benzinga.com/news/econ-s/24/09/41066122/feds-preferred-inflation-gauge-comes-in-below-expectations-for-august-easing-concerns-about-rising-p">Personal Consumption Expenditures </a>(PCE) Price Index, rose 2.2% year-over-year, coming in below analyst expectations of 2.3%. That&#8217;s down from July's 2.5%.
The core PCE, which excludes volatile food and energy prices, increased by 2.7% year-over-year, matching forecasts and slightly higher than July's 2.6%.
This decline in overall inflation, despite steady core inflation, suggests a potential easing of price pressures, even as costs for services like housing and financial services continue to rise.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/09/41063577/peter-thiel-offloads-over-1b-in-palantir-stock-in-2024-as-stock-more-than-doubles">Peter Thiel Offloads Over $1B In Palantir Stock In 2024 As Stock More Than Doubles</a>
Following Friday&#8217;s PCE report, these 14 stocks showed strong momentum in premarket trading, according <a href="https://pro.benzinga.com/">to Benzinga Pro:</a>
<ul>
<li>Bristol-Myers Squibb Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) rises 3.6% to $51.94.</li>
<li>PPD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) climbs 3.8% to $134.14.</li>
<li>JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) is up 3.3% to $39.38.</li>
<li>Equinor ASA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQNR#NYSE">EQNR</a>) gains 2.8% to $24.89.</li>
<li>Anheuser-Busch InBev SA/NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>) advances 1.5% to $66.52.</li>
<li>NetEase Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) lifts 1.7% to $92.69.</li>
<li>Nu Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NU#NYSE">NU</a>) jumps 1.3% to $14.00.</li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rockets 1.1% to $257.16.</li>
<li>Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) moves 0.9% higher to $105.80.</li>
<li>BP p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>) ticks up 0.9% to $31.07.</li>
<li>PayPal Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) soars 1.1% to $81.03.</li>
<li>General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) inches up 0.9% to $46.24.</li>
<li>Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) posts a rise of 1.07% to $185.01.</li>
<li>Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) registers a boost of 0.7% to $110.69.</li>
</ul>
Rising costs in services, particularly in housing, financial services, and insurance, were the key drivers of inflation, pushing the overall PCE index higher. While service prices surged, goods prices saw a slight decline, helping to offset some of the inflationary pressure. Meanwhile, falling energy prices, especially gasoline, provided additional relief compared to previous periods of stronger inflationary impact from energy.
Food prices increased modestly, primarily in off-premises consumption like groceries, but their effect on inflation was smaller compared to services. 
Core inflation, which excludes food and energy, remained steady due to ongoing price increases in durable goods and essential services. Despite minor declines in goods prices, rising service costs <a href="https://www.benzinga.com/topic/inflation">kept core inflation elevated</a>.
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Photo: Shutterstock.

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14 Stocks Gain Momentum As August Inflation Comes In Below Expectations

Shares of copper companies are trading higher following a report suggesting China will issue up to $284 billion of sovereign debt as part of a stimulus.

BHP Group Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) shares are trading higher on premarket Thursday. The company reported that it is the first customer to test Caterpillar, Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) technology, which is aimed at improving the energy efficiency <a target="_blank" href="https://www.bhp.com/news/media-centre/releases/2024/09/bhp-first-customer-to-announce-plans-to-trial-innovative-energy-transfer-technology-from-caterpillar" rel="noreferrer noopener">and </a>sustainability of large mining trucks.
The trial will take place at BHP sites, supporting the company&#8217;s efforts to enhance operational efficiency in its mining operations.
Earlier this week, Caterpillar launched its Cat Dynamic Energy Transfer (DET) solution at MINExpo, showcasing technology capable of transferring energy to both diesel-electric and battery-electric mining trucks while in operation.
The DET system can charge electric haul truck batteries as the trucks move, offering flexibility by being easier to relocate than traditional fixed overhead trolleys used for similar purposes.
In 2021, BHP announced a collaboration with Caterpillar to deploy zero-exhaust emissions mining trucks at BHP&#8217;s sites as part of its commitment to reducing operational greenhouse gas (GHG) emissions.
This partnership has provided valuable hands-on learning opportunities to ensure the successful deployment of these technologies at BHP locations.
Through the collaboration, both companies have worked together to shape the necessary processes, technology, and infrastructure to support the integration of diesel-electric and battery-electric mining trucks, paving the way for more sustainable mine sites in the future.
BHP&#8217;s Chief Commercial Officer, Ragnar Udd, said, &#8220;Innovation and technology will play a crucial role as we work towards BHP&#8217;s goal of net zero operational emissions by 2050, and we are determined to keep building Partnerships like this to achieve this objective.&#8221;
Denise Johnson, Caterpillar Group President, stated, &#8220;BHP has been part of our Early Learner program from the beginning, providing valuable feedback. We look forward to continuing that collaboration as we work together to trial the Cat DET system on both diesel electric and battery electric trucks at BHP&#8217;s sites.&#8221;
&#8220;This is an important next step to validate the crucial energy management solutions needed to support not only BHP and Caterpillar, but also the broader mining industry.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40649361/south-australia-begins-review-of-bhps-major-copper-expansion" rel="noreferrer noopener">South Australia Begins Review Of BHP&#8217;s Major Copper Expansion</a>
Investors can gain exposure to the stock through the&nbsp;Exchange Traded Concepts Trust Optica Rare Earths &amp; Critical Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRIT#NYSE">CRIT</a>) and Exchange Traded Concepts Trust Range Global Coal Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COAL#NYSE">COAL</a>).
Price Action: BHP shares are up 4.30% at $60.21 premarket at the last check Thursday.
Read Next:
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<li><a href="https://www.benzinga.com/news/large-cap/24/09/40959939/copper-m-a-frenzy-masks-greenfield-exploration-weakness-is-ai-to-blame" target="_blank" rel="noreferrer noopener">Copper M&amp;A Frenzy Masks Greenfield Exploration Weakness: Is AI To Blame?</a></li>
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BHP Tests Caterpillar's New Energy-Saving Technology: Details

Source: <a href="https://www.streetwisereports.com/article/2024/09/20/new-data-point-to-two-types-of-mineralization-at-property.html?utm_medium=feed">Streetwise Reports 09/20/2024</a>
Sampling results showed that this Chilean project could host high-grade copper and precious metal deposits, which would bode well for its economic viability. Find out why one newsletter writer believes this company is a Buy.
Preliminary results of Vortex Metals Inc.&#39;s (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vmssf#OTC">VMSSF</a>) recent surface sampling program at the brownfield Illapel copper project in Chile, indicate the presence of copper, silver, and gold mineralization, as announced in a news release.
&quot;[The company] put out some fairly impressive soil sample results yesterday morning&quot; Michael Ballanger of GGM Advisory Inc. wrote in a Sept. 18 article. &quot;They were recovered from a brand new area of the Illapel property.&quot;
Vortex Metals Director Dr. John Larson and his team collected 13 surface samples from several key areas in the project concessions and sent them to ALS Global, a laboratory in Santiago, for multielement analysis. The team also collected bulk samples from which to produce standards for quality control in future drill core analysis.
Eight of the surface samples showed copper, gold, and silver mineralization. Some samples demonstrated elevated levels of associated elements, including iron, molybdenum, and cobalt. Some of the standout results showing high grades are:
<ul>
<li>0.62 grams per ton (0.62 g/t) gold and 1.33% copper in sample 1021</li>
<li>75.2 g/t silver and 4.31% copper in sample 1019</li>
<li>32.6 g/t silver, 0.21 g/t gold, and 5.85% copper in sample 1029</li>
</ul>
The findings overall confirm that the Illapel concessions may host at least two distinct styles of mineralization: mantos (predominantly copper-silver mineralization) and epithermal vein systems (copper-gold mineralization), the release pointed out. Illapel&#39;s potential to host high-grade copper and precious metals deposits suggests the economic viability of future projects, according to the company.
<h2>Diversified Exploration Portfolio</h2>
Vortex Metals is a copper-focused explorer-developer with a diversified portfolio of exploration projects in Chile and Mexico. The discovery-driven company believes there has never been a better time to invest in copper-gold exploration, it noted in its presentation.
The Illapel project comprises three mineral leases over about 6,000 hectares in Chile&#39;s Choapa province, not far from the community of Illapel. The area boasts sufficient infrastructure and is conducive to year-round drilling, noted Technical Analyst Clive Maund in a Sept. 9 report.* The fully permitted project is in &quot;a most promising copper-rich area&quot; and &quot;can be said to have &#39;blue sky&#39; potential.&quot;
Specifically, Illapel is near the fully operational Rio 27 copper-silver mine, from which favorable geology runs north and south. Rio-27 has been in production for more than 10 years and has processed 400,000 tons of high-grade copper (averaging 1.39%) and silver (about 7 g/t) ore, Ballanger wrote.
&quot;This property is a favorite of ex-BHP Billiton Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) Chilean country manager John Larson, whose 16 years with the multinational giant afforded him many &#39;looks&#39; at properties of merit in the Andean copper belt&quot; he added.
Vortex holds an option to acquire up to an 80% interest in Illapel including right of first refusal on the Rio 27 mine and processing facility, Maund explained.
Illapel is also near Sociedad Punta del Cobre&#39;s US$380 million (US$380M) El Espino copper-gold mine, where annual production is estimated to be 26,000,000 tons of copper and 13,000 ounces of gold.
Vortex also owns 100% of Riqueza Marina and Zaachila in an emerging copper belt in Oaxaca, Mexico, through its subsidiary, Empresa Minera Acagold SA de CV. Both of these, drill ready, copper-gold volcanogenic massive sulphide projects, hold potential for significant copper discovery.
The team advancing these assets has successfully developed and exited several exploration projects, including Underworld Resources, sold to Kinross Gold Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>) for CA$139M.
<h2>Copper Price To Remain Strong</h2>
The global copper market is expected increase in value by more than 50%, reaching US$259 billion (US$259B), up from US$170B in 2022, according to Statista.
Bank of America analysts predict the copper price will climb past US$10,000 per ton by 2025, Mining.com reported in a Sept. 17 article. (It is now about US$9,266 per ton.) The price will remain strong, they assert, given high demand, constrained supply, and rising investment in energy transition projects.
Marin Katusa of Katusa Research wrote in a recent article, &quot;Copper has become indispensable.&quot; From electric vehicles to renewable energy systems, its role in the global economy is critical. The ongoing electrification of the world depends heavily on copper, and this dependence is only set to grow.&quot;
This is good news for copper exploration companies, particularly those with a copper-gold porphyry deposit. These deposits, according to Investing News Network, are &quot;among the world&#39;s most valuable deposits&quot; because they contain the largest known exploitable concentrations of copper.
Maund pointed out that junior exploration companies with worthwhile assets likely will become takeover targets.
INN explained in another article, &quot;Due to their size and scope, copper porphyry deposits have the potential to become large-tonnage, low-cost operations based on mineralization.&quot;
According to Katusa, demand for &quot;the engine of the green economy&quot; is &quot;unstoppable&quot; and a supply crunch is inevitable, as indicated by three metrics. They are the rapid decline in days of forward consumption of copper, the long-term global market balance for copper moving toward a deficit and a slowing of global mine production of copper. From 2015 to 2023, only 18,000,000 (18 Mt) of copper were discovered versus 28 Mt in 2014 alone.
While demand for the red metal is increasing, supply remains constrained. Joe Austin, senior analyst at Chaikin Analytics, reported that the copper supply is expected to start declining after peaking at some point in the next two years, according to the International Energy Agency. The agency estimates a copper shortfall of about 7 Mt by 2035, about a third of the output forecasted for that year.
&quot;By 2040, the available supply of copper will be roughly two-thirds of what we produce today. But by then, the demand for copper will have soared far higher than where it is today&quot; Austin wrote.
This anticipated tightening of the copper market is likely to cause a price surge, Katusa purported.
<h2>The Catalyst: Drill Results</h2>
Phase 1 drilling, comprising 3,000 meters, at Illapel is underway to systematically evaluate and advance several high-priority targets within the project area, noted a previous news release.
&quot;It probably won&#39;t be long until results from it start coming in, which could clearly act as a catalyst for the stock&quot; Maund wrote.
<h2>&quot;Stock in Buying Territory&quot;</h2>
Both Ballanger and Maund are bullish on Vortex Metals. In his recent report, Ballanger highlighted that the company&#39;s stock is &quot;dirt cheap&quot; and thus, now was a good time to buy.
&quot;I think it will be a solid performer by the end of the year&quot; he added.
Similarly, Maund wrote recently that the stock is in buying territory, based on its charts. In addition, Vortex is well poised to benefit from the current, major bull markets in copper and gold and the momentum in each that is expected soon.
&quot;This being so, [Vortex&#39;s] stock is regarded as most attractive here following its dip back to a foundation of strong support that is expected to propel an advance to much higher levels&quot; wrote Maund.
<h2>Ownership and Share Structure</h2>
According to Reuters, four strategic entities own 7.84%, or 6.28 million (6.28M) shares, of Vortex. They are Director Michael Williams with 3.6% or 2.88M shares, Cofounder, Chief Executive Officer, and Director Vikas Ranjan with 2.5% or 2M shares, Roger Zelong with 1.07% or 0.86M shares and Director John Larson with 0.67% or 0.54M shares.
One institution, AIPM Azur International Portfolio Management AG, holds 0.94% or 0.75M shares.
Retail investors own the remaining 91.22% of Vortex.
The company has 80.05M outstanding shares and 77.37M free float traded shares.
Its market cap is CA$5.88M, and its 52-week trading range is CA$0.07&ndash;CA$0.15 per share.
Important Disclosures:
<ol>
<li>As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Vortex Metals Inc.</li>
<li>Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research.</li>
<li>Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
<li>* Disclosure for the quote from the Clive Maund article published on September 9, 2024</li>
<li>For the quoted article (published on September 9, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,575.</li>
<li>Author Certification and Compensation: [Clive Maund of clivemaund. com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts&#39; Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed</li>
</ol>
Clivemaund. com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund&#39;s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund&#39;s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

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New Data Point to Two Types of Mineralization at Property

Shares of copper stocks are trading higher after China Central Bank announced a new stimulus package.

Lifezone Metals Limited's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LZM#NYSE">LZM</a>) Chief Executive Officer, Chris Showalter, is pleased to announce that Lifezone, in partnership with BHP, has formally commenced the project financing process for the Kabanga Nickel Project in Tanzania. In conjunction, Lifezone has received a Letter of Interest from the U.S. International Development Finance Corporation (DFC) that expressed DFC's interest in considering the Project for loans as part of the Project's financing package.
Tanzanian Minister of Minerals, Hon. Anthony Mavunde, welcomed the news, saying: "The Kabanga Nickel Project is a model example of the Government of Tanzania's commitment to fostering sustainable development and economic growth for the benefit of Tanzania and Tanzanians. We are delighted with the announcement that DFC has signed a Letter of Interest for project finance of Kabanga. Building on the 2023 visit to Tanzania by Vice President Harris, DFC's action shows that Tanzania and the United States continue to develop a strong economic partnership founded on a shared vision for sustainable development and we are looking forward to further developing our relationship to pursue our common goals. This project will not only boost our economy regionally and nationally, but also position Tanzania as a leading international player in the global nickel market, contributing significantly to the global energy transition."
Mr. Showalter also commented: "The initiation of the project financing process with Societe Generale is a crucial next step in securing the funding required for Kabanga, and is yet another indicator of the strategic importance of the Project to our global partners. With DFC's interest in supporting Kabanga, the U.S. government clearly recognizes the critical role that sustainable mineral development in Africa plays in the global energy transition. Today's announcement reinforces this vision and again highlights the strong relationship between the United States and Tanzania."
Scott Nathan, Chief Executive Officer of DFC added: "DFC is helping to advance the global energy transition through projects that drive sustainable development and economic growth. The Kabanga Nickel Project represents a significant opportunity to advance responsible mineral development in Tanzania, diversifying critical supply chains and fostering economic resilience in the region."
The DFC loan application would initiate a comprehensive review process; this follows <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fir.lifezonemetals.com%2Fnews%2Fpress-releases%2Fnews-details%2F2024%2FLifezone-Metals-Initiates-Process-for-Risk-Insurance-with-U.S.-International-Development-Finance-Corporation-for-the-Kabanga-Nickel-Project-in-Tanzania%2Fdefault.aspx&amp;esheet=54125613&amp;newsitemid=20240923733638&amp;lan=en-US&amp;anchor=Lifezone%26%238217%3Bs+August+27%2C+2024+announcement&amp;index=1&amp;md5=f757042432b47c95de66350df5fb940b">Lifezone's August 27, 2024 announcement</a> that DFC would be evaluating political risk insurance coverage for future investments in Kabanga.
Kabanga is one of the world's largest and highest-grade undeveloped nickel sulfide deposits. By utilizing Lifezone's Hydromet technology, the project is expected to significantly reduce emissions compared to traditional smelting methods.
Kabanga is supported by the Partnership of Global Infrastructure and Investment (PGI), which is a values-driven, high-impact, and transparent infrastructure partnership that was created to meet the enormous infrastructure needs of low- and middle-income countries and to support the United States' and its allies' economic and national security interests. Kabanga is also recognized as a project within the Minerals Security Partnership, a collaboration of 14 countries and the EU to catalyze public and private investment in responsible critical minerals supply chains globally.
DFC is America's development finance institution. It partners with the private sector to finance solutions to the most critical challenges facing the developing world today across sectors including energy, infrastructure, healthcare, agriculture, and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
Societe Generale appointed as lead financial advisor to Kabanga Nickel Limited
Societe Generale has been appointed as the lead financial advisor to Kabanga Nickel Limited, a subsidiary of Lifezone that is managed by Lifezone and in which BHP has a 17% interest.
Lenaig Trenaux, Global Head of Batteries, Mining and Industries, Societe Generale, commented: "Societe Generale supports its clients in the energy transition, through dedicated solutions, and a commitment to contribute to sustainable finance. We are very pleased to be working jointly with Lifezone Metals and BHP to deliver the Kabanga Nickel Project, aiming to foster development in Tanzania and feed the energy transition with a large volume of low carbon critical mineral."
Societe Generale brings world-leading expertise in large-scale debt financing for mining projects globally. In cooperation with BHP, Lifezone and Societe Generale will look to optimize Kabanga's capital structure through a combination of multi-source project-level debt and equity.

Lifezone Metals and BHP Begin Project Financing for Tanzania's Kabanga Nickel, Supported by US DFC

Rio Tinto (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rio#NYSE">RIO</a>) announced that it would invest in Pongamia seed farms in Australia to explore the possibility of using its seed oil as a feedstock for renewable diesel. RIO sees biofuels as an avenue to reduce the dependence on fossil diesel, which accounts for around 10% of its emissions footprint in Australia.
To achieve net-zero Scope 1 and 2 carbon emissions by 2050, Rio Tinto has chosen electrification as the long-term solution for replacing the use of diesel in its fleet. While electrification is in progress, the company is looking at other quicker options to lower diesel-sourced emissions, such as biofuels.
Australia does not yet have a biofuel feedstock industry capable of meeting domestic demand. Rio Tinto expects that the pilot will play an important role in addressing this gap while supporting its journey to achieve decarbonization goals.
<h2>Rio Tinto Joins Forces With Midway for Pongamia Farm Trial</h2>
Pongamia is a fast-growing tree that is native to northern Australia. It produces large numbers of seeds, which are rich in oil and protein. The seeds can be processed into renewable diesel, which offers a significant reduction in carbon emissions compared with fossil fuel diesel.
After the extraction of oil, the seed pod and meal can be processed for other uses such as cattle feed. Pongamia has other benefits, it is drought tolerant, salinity and flood resistant, with low water, fertilization and pest control requirements making it easy to grow.
Rio Tinto is in the final stages of acquiring approximately 3,000 hectares of cleared land near Townsville in north Queensland to establish farms to study growth conditions and measure seed oil yields.
RIO has partnered with Midway Limited to oversee the planting and management of the seed farms. The companies will plant approximately 750,000 Pongamia saplings.
<h2>Rio Tinto&#39;s Decarbonization Efforts</h2>
In 2023, Rio Tinto&#39;s Scope 1 and 2 emissions were 32.6Mt CO2e, which marked a reduction of 5.5% from its 2018 baseline. It plans to invest capital in the range of $5- $6 billion by 2030 to deliver on its decarbonization strategy.
In July, RIO announced that it is set to install carbon-free aluminum smelting cells at its Arvida smelter in Qu&eacute;bec, Canada, utilizing the first technology license issued by the ELYSIS joint venture. The groundbreaking ELYSIS technology aims to eliminate all direct greenhouse gases from the conventional aluminum smelting process by producing oxygen as a byproduct while improving efficiency by producing more aluminum at lower costs.
In May 2024, Rio Tinto and BHP Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) teamed up to trial large battery-powered haul trucks manufactured by Caterpillar (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cat#NYSE">CAT</a>) and Komatsu (OTC: <a class="ticker" href="https://www.benzinga.com/stock/kmtuy#OTC">KMTUY</a>) in the Pilbara region of Western Australia. The trials will kick off with two Cat 793 haul trucks in 2024, followed by two Komatsu 930 haul trucks in 2026.
BHP will trial the Caterpillar trucks while Rio Tinto will test the Komatsu trucks. This collaboration between two leading global miners with two of the world&#39;s largest haul truck manufacturers seeks to address the critical challenge of achieving zero-emissions haulage in the mining sector.
Even though electrification is the most efficient and cost-effective solution to reduce the use of fossil diesel in mining fleet and equipment, Rio Tinto does not expect mass deployment of battery electric haul trucks at its operations to be technically or commercially feasible before 2030.
In the meantime, Rio Tinto intends to explore other avenues like biofuels to reduce diesel-sourced emissions. In June 2023, its Boron operation in California fully transitioned its heavy machinery from fossil diesel to renewable diesel. It is the first open pit mine in the world to achieve this feat.&nbsp; The company expects to replicate this at its Kennecott copper operation in Utah this year. It is also investigating the usage of biofuels in scenarios where electrification may be challenging to implement.
<h2>RIO&#39;s Price Performance &amp; Zacks Rank</h2>
In a year, shares of Rio Tinto have gained 2.2% against the industry&#39;s 2.8% decline.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b0/78685.jpg?v=1692237515" />
Image Source: Zacks Investment Research
Rio Tinto currently has a Zacks Rank #3 (Hold).
<a href="https://www.zacks.com/stock/news/2339414/rio-to-test-biofuel-crop-for-renewable-diesel-production-in-australia?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2339414">To read this article on Zacks.com click here.</a>

KMTUY

RIO to Test Biofuel Crop for Renewable Diesel Production in Australia

The recent uptick in mining mergers and acquisitions (M&amp;A) is masking the slowdown in greenfield exploration projects. Companies are increasingly relying on acquisitions rather than the expensive and risky process of discovering new deposits.
After making a new all-time high in May, copper has declined and stepped down from the headlines, leaving gold in the top spot. Despite copper's price decline, its looming shortages continue to trouble analysts, who project significant <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40831930/copper-deficit-to-reach-4-million-tons-by-2030-analyst-predicts-mining-electrificat">discrepancies between supply and demand</a> in coming years.
BHP Group Ltd.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) Oak Dam project in Australia, discovered in 2018, presents one of the few large-scale greenfield copper prospects in development today. The exploration target is an estimated 500 million to 1.7 billion tons of ore with a copper grade of 0.8-1.1%, an exceptionally promising find.
Globally, there would be few companies conducting drilling campaigns of this scale, to this depth," BHP's leading geologist Michael Fonti said <a href="https://www.bnnbloomberg.ca/business/international/2024/09/19/a-copper-ma-frenzy-masks-big-miners-hesitation-to-build/">for</a> Bloomberg.
<h1 class="wp-block-heading">Buy, Don't Build</h1>
Yet, despite Oak Dam's promise, even BHP, the world&#8217;s largest mining company, focuses more on acquisitions than new developments. 
The company bought OZ Minerals for $6.4 billion while failing to complete a $49 billion acquisition of Anglo American, which owns significant copper assets in South America.
Still, BHP expanded its foothold on that continent by <a href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition">recently acquiring</a> the Filo copper project on the Argentina-Chile border in partnership with Lundin Mining.
The acquisition trend is evident across the industry, as rising costs, long permitting timelines and geopolitical uncertainties make greenfield exploration unattractive. Less than a quarter of mining projects approved between 2019 and 2023 were greenfield developments.
<h1 class="wp-block-heading">Digging Through the Past</h1>
The economics of new mining developments showcase the slowdown. The initial capital expenditures (capex) to build a mine have skyrocketed. 
For instance, the Dundee Precious Metals project in Serbia has an estimated capex of $381 million, a hefty price tag for a mine expected to produce just over 129,000 ounces of gold annually.
The cost per ton of copper production has exceeded $44,000 <a href="https://aheadoftheherd.com/copper-mines-becoming-more-capital-intensive-and-costly-to-run/">already in 2022</a> AOTH estimated, with projects such as Cobre Panama exemplifying this trend. Built at a capex of $6.7 billion, its production capacity started at 175,000 tons, yielding a capital intensity of $38,000 per ton — significantly higher than historical averages.
Moreover, many current copper deposits were discovered in the 20th century. Escondida, the world's largest copper mine, was found in the late 1970s, and most of the copper being mined today comes from that era.
"Everything being produced now is from that era of discoveries," BHP's Fonti pointed out.
<h1 class="wp-block-heading">AI-Powered Capex</h1>
Despite the problematic state of greenfield exploration, the latest technological advancements offer hope. Artificial intelligence (AI) can help comb through historical geological data, identifying opportunities a human eye might have missed. Even Oak Dam was nearly missed, as cutting-edge geophysical methods uncovered it.
Startups like KoBold Metals have gone AI from their inception, using advanced data analytics to target new deposits. Its high-profile investors include Bill Gates, Jeff Bezos and Jack Ma. The company might go public in the near future, with speculations about a <a href="https://www.benzinga.com/startups/24/08/40303146/the-next-big-thing-in-mining-bill-gates-kobold-metals-and-its-2-billion-valuation-goal">valuation of $2 billion</a>.
<h1 class="wp-block-heading">The External Factors</h1>
Growing geopolitical instability, driven by conflicts in Eastern Europe, Asia and Africa, can disrupt even the most promising projects.
Recent unrest in Pakistan is threatening to throw the country into deep political turmoil, with the newly minted government losing control over the disgruntled population grappling with an economic crisis, the New York Times <a href="https://www.nytimes.com/2024/08/01/world/asia/pakistan-protests-politics.html">wrote</a> last month. Large-scale protests were particularly notable in Balochistan, a province that houses one of the most notable copper projects, Barrick's Reko Diq $7 billion mine.
Meanwhile, a regulatory shift prompted the Panamanian government to close the Cobre Panama mine, a project that accounted for around 1.5% of the global copper supply. This action left a historical reminder that external factors can nullify years of exploration and billions in investments.
Read Next: • <a href="https://www.benzinga.com/news/24/09/40915786/barrick-forecasts-strong-organic-growth-by-2030-ceo-bristow-touts-undervaluation">Barrick Forecasts Strong Organic Growth By 2030, CEO Bristow Touts Undervaluation</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Photo: Shutterstock

Global

Copper M&A Frenzy Masks Greenfield Exploration Weakness: Is AI To Blame?

Vale (VALE) said that Samarco, BHP Billiton Brasil (BHP) and Vale, together with the Brazilian Federal Government, the State Governments of Minas G...

Vale reaches settlement with Brazil for full reparation of Fundao dam collapse

BHP, Vale sign $32B final settlement in Brazil dam disaster

In a report released today, Adrian Prendergast from Morgans maintained a Buy rating on BHP Group Ltd (BHPLF – Research Report), with a price target...

BHP Group Ltd (BHPLF): New Buy Recommendation for This Basic Materials Giant

Green mining practices are revolutionizing the mining industry, driven by an urgent call for sustainable resource extraction amid climate change. As this eco-friendly shift gains momentum, Vale S.A. (VALE), BHP Group (BHP), and Rio Tinto Group (RIO) are seizing the moment, turning sustainability into a powerful growth opportunity. Read on… With carbon emissions rising daily, the green mining industry now faces an urgent need to ensure ethical resource extraction. Companies are gradually adopting sustainable practices like green mining to reduce environmental impact and conserve resources for future generations, reflecting a shift toward eco-friendly operations in mining.
So, let us explore fundamentally sound stocks, Vale S.A. (<a href="https://stocknews.com/stock/VALE/">VALE</a>), BHP Group Limited (<a href="https://stocknews.com/stock/BHP/">BHP</a>), and Rio Tinto Group (<a href="https://stocknews.com/stock/RIO/">RIO</a>), which have successfully integrated green mining practices into their core operations, demonstrating a commitment to ethical resource extraction and sustainable environmental stewardship.
The mining industry is undergoing a major transformation this year as green mining practices gain traction. In response to growing environmental concerns and sustainability mandates, companies are adopting innovative strategies and technologies to minimize their ecological footprint and promote responsible, efficient resource extraction.
Emerging technologies are revolutionizing green mining by <a href="https://miningworld.com/the-rise-of-green-mining-practices-in-2024/">employing advanced machinery</a> and techniques to minimize environmental impact. Automated drones, sensor-based sorting, and renewable energy sources are driving sustainability. These innovations pave the way for mining operations to reduce their ecological footprint and operate more efficiently.
Real-time monitoring systems enable mining operators to optimize resource extraction and reduce waste. Additionally, AI and machine learning facilitate smarter decision-making, improving operational efficiency while significantly cutting down the carbon emissions linked to traditional mining methods.
Looking forward, according to bccResearch, the global green mining market is expected to grow from $11.4 billion in 2023 to $16.9 billion by 2029, at <a href="https://www.bccresearch.com/market-research/environment/green-mining-market.html">a 7.4% CAGR</a>.
Given this positive outlook, let us delve into the fundamentals of three leading green mining stocks, starting with #3.
Stock #3: Vale S.A. (<a href="https://stocknews.com/stock/VALE/">VALE</a>)
VALE, headquartered in Rio de Janeiro, Brazil, excels in the metal and mining sector, focusing on iron ore and nickel production. It also manufactures iron ore pellets, copper, platinum group metals (PGMs), gold, silver, and cobalt. The company functions through its Iron Solutions and Energy Transition Materials segments.
On October 18, VALE <a href="https://vale.com/w/vale-and-petrobras-sign-agreement-to-supply-products-focused-on-decarbonization/-/categories/985604">announced a strategic alliance</a> with Petróleo Brasileiro S.A. – Petrobras (<a href="https://stocknews.com/stock/PBR/">PBR</a>) to supply competitive products and advance the decarbonization agenda. This agreement enables testing and marketing of three products: co-processed diesel with renewable content, natural gas, and bunker fuel containing 24% renewable content.
The partnership underscores VALE's dedication to decarbonizing operations and assisting customers in reducing emissions. By leveraging Brazil's advantages in renewable fuels, VALE is positioning itself strategically within the market.
In the fiscal third quarter, VALE reported <a href="https://api.mziq.com/mzfilemanager/v2/d/53207d1c-63b4-48f1-96b7-19869fae19fe/19db5e6f-5388-25f1-f25b-32751a0950bf?origin=1">record iron ore production</a> of 91.0 million tonnes, marking a 5% increase year-on-year. The company also raised its 2024 production guidance to 323-330 million tonnes, up from the previous estimate of 310-320 million tonnes. Such figures reflect VALE's commitment to operational excellence and growth in critical commodities.
Copper ore processed at Salobo 1 and 2 surged by 30% year-on-year, driven by improved mill performance. Additionally, the Sudbury mines contributed to a 20% increase in nickel mill throughput. VALE's focus on operational stability and asset reliability continues to ensure sustainable growth and profitability.
VALE's net operating revenue for the fiscal second quarter ended June 30, 2024, grew 2.6% year-over-year to $9.92 billion. Its operating income rose 34.7% from the prior year's quarter to $3.88 billion. Additionally, net income and earnings per share attributable to VALE's shareholders were $2.77 billion and $0.65, up 210.4% and 225% year-over-year, respectively.
Analysts expect VALE's revenue for the fiscal year ending December 2025 to increase 3.2% year-over-year to $40.33 billion. Its EPS for the same period is expected to rise 7% from the prior year to $2.13.
Over the past month, shares of VALE have gained 2.8%, closing the last trading session at $10.57.
VALE's promising outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
VALE has an A grade for Value and a B for Quality. Within the <a href="https://stocknews.com/category/industrial-metals/">Industrial – Metals</a> industry, it is ranked #9 out of 29 stocks.
To see VALE's ratings for Growth, Momentum, Stability, and Sentiment, <a href="https://stocknews.com/stock/VALE/">click here</a>.
Stock #2: BHP Group Limited (<a href="https://stocknews.com/stock/BHP/">BHP</a>)
BHP, based in Melbourne, Australia, specializes in producing various commodities, such as iron ore, copper, nickel, potash, and metallurgical coal. It actively engages in mining, smelting, and refining nickel and developing potash. The company operates through its Copper; Iron Ore; and Coal segments.
On October 7, BHP <a href="https://www.bhp.com/news/media-centre/releases/2024/10/bhp-and-sail-sign-mou-to-accelerate-potential-pathways-to-steel-decarbonisation">signed a memorandum of understanding</a> with Steel Authority of India Limited (SAIL), the largest government-owned steel producer in India, to support steelmaking decarbonization.
The collaboration focuses on promoting lower-carbon steelmaking technologies, highlighting BHP's commitment to sustainability. By advancing these practices, BHP can strengthen its global market presence and align with the increasing demand for greener steel products.
BHP has begun the 2025 financial year with impressive momentum, <a href="https://www.bhp.com/-/media/documents/media/reports-and-presentations/2024/241017_bhpoperationalreviewforthequarterended30september2024.pdf">recording increased production</a> across all major commodities for the quarter. Copper production rose by 4%, driven by higher grades and improved recoveries at Escondida.
Additionally, Western Australia Iron Ore (WAIO) production increased by 3% as the company unlocked capacity following the completion of debottlenecking work at the port. The company also observed signs of stabilization in its steelmaking coal sector, with production surging by 20% in the quarter, excluding the recently divested Blackwater and Daunia mines.
This overall growth reflects BHP's commitment to enhancing operational efficiency and adapting to market conditions, positioning the company for continued success in the mining industry.
For the fiscal year which ended June 30, 2024, BHP's revenues increased 3.4% year-over-year to $55.66 billion. Its underlying EBITDA came in at $29.02 billion, up 3.8% from the previous year's quarter. Moreover, underlying attributable profit and underlying earnings per ordinary share rose 1.8% and 1.7% from the previous year's period to $13.66 billion and $2.70, respectively.
Street expects BHP's revenue for the fiscal year ending June 2026 to grow 1.9% from the previous year to $50.32 billion. Meanwhile, its EPS for the same period is expected to increase 5.2% year-over-year to $4.43.
The stock has gained 4.7% over the past month to close the last trading session at $56.32.
BHP's strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B for Value and Stability. Within the same industry, BHP is ranked #3.
<a href="https://stocknews.com/stock/BHP/">Click here</a> to see BHP ratings for Growth, Momentum, and Sentiment.
Stock #1: Rio Tinto Group (<a href="https://stocknews.com/stock/RIO/">RIO</a>)
RIO, headquartered in London, United Kingdom, operates as a mining and metals company in 35 countries, producing iron ore, copper, aluminum, critical minerals, and materials essential for global energy transition. Its operations are categorized into segments including Iron Ore; Aluminum; Copper; and Minerals.
On October 9, RIO <a href="https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-acquire-arcadium-lithium">announced its acquisition</a> of Arcadium Lithium, a global, fast-growing producer with long-life, low-cost operations and growth projects. This move is expected to enhance RIO's lithium portfolio, aligning it with its aluminum and copper operations to support the energy transition and expand into essential materials.
By acquiring Arcadium, RIO would leverage its scale and financial strength to fully unlock the potential of Arcadium's Tier 1 portfolio. With this strategic step, RIO is positioned to better meet the growing demand for lithium, securing long-term growth in the green energy sector.
On August 15, RIO <a href="https://www.riotinto.com/en/news/releases/2024/queensland-government-and-rio-tinto-partnership-to-support-gladstones-boyne-smelters">announced a partnership</a> with the Queensland Government to support Gladstone's industrial base by investing in renewable energy. The collaboration secures the future of Boyne Smelters Limited (BSL), Australia's second-largest aluminium smelter.
The agreement would enhance RIO's reputation in the industry, help reduce operational costs, and align with global trends toward decarbonization, benefiting the company's long-term growth.
For six months that ended on June 30, 2024, RIO's consolidated sales revenue marginally increased year-over-year to $26.80 billion. Operating profit climbed to $8.26 billion, reflecting a 14% rise from the previous year's quarter.
Furthermore, profit after tax reached $5.89 billion, and EPS hit $3.56, marking increases of 19.1% and 13.3% year-over-year, respectively.
Analysts expect RIO's revenue and EPS for the fiscal year ending December 2024 to be $52.80 billion and $7, respectively.
RIO's stock has gained 2.2% over the past month and 7.3% over the past year to close the last trading session at $64.95.
It's no surprise that RIO has an overall rating of A, which equates to a Strong Buy in our POWR Ratings system.
RIO has a B grade for Value, Stability, and Quality. Out of 29 stocks in the Industrial – Metals industry, RIO is ranked #2.
Beyond what is stated above, we've also rated RIO for Growth, Momentum, and Sentiment. Get all RIO ratings <a href="https://stocknews.com/stock/RIO/">here</a>.
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<hr />
BHP shares were unchanged in premarket trading Tuesday. Year-to-date, BHP has declined -13.13%, versus a 23.95% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/bhp-rio-vale-pbr-3-green-mining-stocks-focused-on-ethical-resource-extraction/>3 Green Mining Stocks Focused on Ethical Resource Extraction</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Green Mining Stocks Focused on Ethical Resource Extraction

Prices for precious and industrial metals are increasing thanks to shifting global demand and central bank policies. In light of this, I have evaluated quality metals and mining stocks, BHP Group Ltd. (BHP), Rio Tinto (RIO), and Southern Copper Corp. (SCCO), that could help protect your portfolios from inflation. The mining industry is one of the most promising sectors for investors looking to capture high returns. Recently, prices for both precious and industrial metals have <a href="https://www.euronews.com/business/2024/09/27/metal-prices-soar-as-fed-and-chinas-stimulus-ignites-market-activity#:~:text=Demand%20outpaces%20supply%20in%20industrial%20metals&amp;text=The%20global%20industrial%20shift%20towards,due%20to%20concerns%20over%20undersupply.">surged</a> thanks to favorable policies from major central banks like the Federal Reserve and the People's Bank of China.
In this article, we'll explore three of the fundamentally sound metals and mining stocks, namely BHP Group Limited (<a href="https://stocknews.com/stock/BHP/">BHP</a>), Rio Tinto Group (<a href="https://stocknews.com/stock/RIO/">RIO</a>), and Southern Copper Corporation (<a href="https://stocknews.com/stock/SCCO/">SCCO</a>), that you might consider to hedge against inflation.
When the Fed cuts interest rates, gold and silver become more attractive assets. Lower rates reduce the opportunity cost of holding these precious metals, prompting investors to flock toward them as safe havens.
Meanwhile, a significant shift toward renewable energy, electric vehicles, and the burgeoning AI sector is boosting the demand for industrial metals like copper and silver. Both recently hit all-time highs due to supply concerns and China's commitment to infrastructure investment.
According to BHP, global copper consumption is expected to increase by an average of <a href="https://www.reuters.com/markets/commodities/bhp-expects-copper-demand-grow-by-1-mln-metric-tons-year-until-2035-2024-09-30/">1 million metric tons</a> annually until 2035, thanks to the rise of copper-intensive technologies. Looking ahead to 2050, global copper demand could soar by 70% to reach 50 million tonnes per year, primarily driven by its essential role in decarbonization and emerging technologies.
The mining market grew from $2.14 trillion in 2023 to $2.28 trillion in 2024, exhibiting a CAGR of 6.5%. Further, the market is expected to <a href="https://www.thebusinessresearchcompany.com/report/mining-global-market-report">reach $2.83 trillion by 2028</a>, growing at a CAGR of 5.5%.
Given this backdrop, let's evaluate the three <a href="https://stocknews.com/category/industrial-metals/">Industrial - Metals</a> picks, beginning with the third choice.
Stock #3: Southern Copper Corporation (<a href="https://stocknews.com/stock/SCCO/">SCCO</a>)
SCCO is an integrated producer of copper and valuable by-products. It operates the mining, exploring, smelting, and refining facilities in Peru, Mexico, Argentina, Chile, and Ecuador. Its operating segments include Peruvian operations; Mexican open-pit operations; and Mexican underground mining operations.
On August 26, backed by its strong financials, the company paid its shareholders a quarterly dividend of $0.60 per share and a stock dividend of 0.0056 shares per share of common stock. SCCO pays an annual dividend of $2.37, which translates to a yield of 2.13% at the prevailing price levels. Its four-year average dividend yield is 4.52%. The company's dividend payments have grown at a CAGR of 8.5% over the past five years.
The stock's trailing-12-month gross profit margin of 55.83% is 95.9% higher than the industry average of 28.49%. In addition, its trailing-12-month net income margin and ROTA of 26.15% and 15.47% are considerably above the industry averages of 5.02% and 2.34%, respectively.
SCCO's sales for the second quarter (ended June 30, 2024) increased 35.5% year-over-year to $3.12 billion. The company reported an operating income of $1.61 billion, indicating a 78.5% growth from the prior year quarter. SCCO's <a href="https://www.investopedia.com/terms/a/adjusted-ebitda.asp">adjusted EBITDA</a> came in at $1.80 billion, up 61.1% year-over-year, while its net income per share grew 73.2% from the prior-year quarter to $1.23.
The consensus revenue estimate of $2.94 billion for the fiscal third quarter (ended September 2024) represents a 17.4% increase year-over-year. The consensus EPS estimate of $1.11 for the to-be-reported quarter indicates a 40.5% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus EPS and revenue estimates in three of the trailing four quarters.
SCCO shares have surged 55.6% over the past year and 33.4% year-to-date to close the last trading session at $111.99.
SCCO's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has an A grade for Quality and a B for Stability and Sentiment. Among 29 stocks in the <a href="https://stocknews.com/category/industrial-metals/">Industrial - Metals</a> industry, it is ranked #5. <a href="https://stocknews.com/stock/SCCO/">Click here</a> to see SCCO's ratings for Growth, Value, and Momentum.
Stock #2: BHP Group Limited (<a href="https://stocknews.com/stock/BHP/">BHP</a>)
Headquartered in Melbourne, Australia, BHP operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. It operates through Petroleum; Copper; Iron Ore; and Coal segments.
On July 30, BHP and Lundin Mining Corporation agreed to jointly acquire Filo Corp. and its Filo del Sol copper project through a Canadian plan of arrangement. As part of the deal, both companies will form a 50/50 joint venture to manage the FDS and Josemaria projects in Argentina and Chile. BHP will contribute $2.1 billion to the transaction, which aligns with its strategy of acquiring early-stage copper assets and forming strategic partnerships for long-term growth.
BHP had a strong start to FY 2025, with production rising across all major commodities. In its recent <a href="https://www.bhp.com/-/media/documents/media/reports-and-presentations/2024/241017_bhpoperationalreviewforthequarterended30september2024.pdf">operational report</a> for the quarter that ended on September 30, 2024, the company posted a 4% year-over-year increase in copper production to 476.3 kt, driven by improved feed grades at Escondida. Iron ore production at WAIO grew 2%, aided by the completion of the Port Debottlenecking Project and South Flank ramp-up, while energy coal production rose 2% to 3.7 Mt.
For the fiscal year ended June 30, 2024, BHP's revenues increased 3.5% year-over-year to $55.70 billion. Its underlying attributable profit grew 2.2% from the year-ago value to $13.70 billion, while its underlying EBITDA came in at $29 billion, up 3.6% year-over-year, with a margin of 54%. Also, the company's free cash flow increased to $11.90 billion from $5.60 billion recorded last year.
Analysts expect BHP's EPS for the current year (ending June 2025) to be $4.81 and grow by 7.9% year-over-year to $5.20 next year. Meanwhile, its revenue for the fiscal years 2024 and 2025 is forecasted to reach $52.02 billion and $51.13 billion, respectively.
The stock has gained 6.9% over the past month to close the last trading session at $56.89.
BHP's strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B for Value and Stability. Within the same industry, it is ranked #3. <a href="https://stocknews.com/stock/BHP/">Click here</a> to see the other BHP ratings for Growth, Momentum, and Sentiment.
Stock #1: Rio Tinto Group (<a href="https://stocknews.com/stock/RIO/">RIO</a>)
London-based mining and metals company RIO is involved in the global exploration and production of materials through four segments: Iron Ore; Aluminum; Copper; and Minerals. Its business also includes diamond mining, sorting and marketing, and lithium exploration.
On October 9, the company agreed to acquire Arcadium Lithium for $6.7 billion, a deal that will catapult it to become the world's third-largest miner of the metal used in electric vehicle batteries. Already a leader in iron ore, RIO is expanding its focus on processing high-end, low-carbon materials essential for the energy transition.
The company would gain access to lithium mines and processing facilities across Argentina, Australia, Canada, and the U.S. through the acquisition, fueling future growth.
On August 15, RIO partnered with the Queensland Government to strengthen the heavy industrial manufacturing base around Gladstone and boost renewable energy investments. The partnership secures the future of Boyne Smelters Limited, Australia's second-largest aluminum smelter, ensuring sustainability and long-term growth for RIO's operations.
For six months of fiscal 2024 that ended on June 30, 2024, RIO reported consolidated sales revenue of $26.80 billion, indicating a marginal year-over-year increase. The company's operating profit for the same period rose 14% from the year-ago value to $8.26 billion. In addition, profit after tax for the period and EPS came in at $5.89 billion and $3.56, up 19.1% and 13.3% year-over-year, respectively.
Street expects RIO's EPS and revenue for the fiscal year ending in December 2024 to be $7.04 and $52.82 billion, respectively. Over the past month, the stock has gained 4.1%, closing the last trading session at $65.09.
It's no surprise that RIO has an overall rating of A, equating to a Strong Buy in our POWR Ratings system. It has a B grade for Value, Stability, and Quality. Out of 29 stocks in the Industrial – Metals industry, RIO is ranked first.
Beyond what is stated above, we've also rated RIO for Growth, Momentum, and Sentiment. Get all RIO ratings <a href="https://stocknews.com/stock/RIO/">here</a>.
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BHP shares were trading at $57.14 per share on Friday afternoon, up $0.25 (+0.44%). Year-to-date, BHP has declined -11.86%, versus a 24.17% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/bhp-rio-scco-3-metals-mining-stocks-to-buy-for-inflation-protection/>3 Metals & Mining Stocks to Buy for Inflation Protection</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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