에 대한 최신 뉴스 Glencore (OTC:GLNCY) 주식

Glencore

GLENCORE INTERNATION

Glencore is one of the world's largest commodities traders, active in markets for metals and minerals, energy products, and agricultural goods. The firm's marketing business provides sourcing, logistics, transportation, storage, and financing services to commodity producers and consumers around the globe. Core exposures are in the production of thermal coal, coking coal, copper, zinc, nickel, cobalt, and ferroalloys. Unlike other major miners, Glencore plans to produce thermal coal until its mines exhaust, arguing that it is better for listed, western companies to own these assets and then rehabilitate them consistent with western standards. It also expanded its coking coal exposure via the purchase of 77% of Teck's metallurgical coal business in July 2024.

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호주의 다국적 광산업체인 BHP 그룹(NYSE:BHP)가 경쟁사인 앵글로 아메리칸(OTC:NGLOY)에 제출한 약 400억 달러 입찰은 이 회사를 인수하기에 충분하지 않을 수 있다. 왜냐하면 구리 자산에 대한 전 세계적 쟁탈전 속에서 다른 다각화된 광산업체들이 아마도 경쟁 입찰을 할 것이기 때문이다.

구리는 HOT한 상품: BHP의 &#39;인수 제안&#39; 후 앵글로 아메리칸에 대한 입찰 경쟁 예상

Glencore PLC

Rio Tinto Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) and Glencore Plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>), two of the largest mining companies in the world, have engaged in preliminary discussions about merging their businesses. 
What To Know: <a href="https://www.bloomberg.com/news/articles/2025-01-16/rio-tinto-glencore-are-said-to-discuss-potential-combination?srnd=homepage-americas">According to Bloomberg,</a> the talks, which remain in the early stages, have not been confirmed as ongoing. Sources, who requested anonymity due to the confidentiality of the information, noted the uncertainty surrounding whether the discussions will progress further. Representatives from Rio Tinto declined to comment, while Glencore did not immediately respond to statement requests.
Shares of both companies reacted to the news. Rio Tinto&#8217;s stock dropped 2.03% during recent trading, likely reflecting investor caution surrounding the uncertainty of the talks. Meanwhile, Glencore's stock surged 7.76%, potentially driven by market optimism about the potential synergies and scale such a merger could deliver.
This development, if it progresses, could have significant implications for the global mining industry, given the combined operational reach and resource portfolio of the two firms.
Price Action: Rio Tinto shares were down 1.70% at $59.43 and Glencore PLC shares were up 5.32% at $9.53 at the time of writing, according to <a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2">Benzinga Pro.</a>
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Rio Tinto And Glencore Weigh Historic Merger, Shaking Up Global Mining

Rio Tinto, Glencore Are Said To Discuss Potential Combination

The Mexican Ministry of Finance (SHCP) has proposed raising mining royalties in the 2025 federal budget bill. The proposal suggests increasing two key taxes on mining activities, which is at a risk to the sector and <a target="_blank" href="https://www.benzinga.com/topic/mexico" rel="noreferrer noopener">the country's economy</a>.
What Happened? The SHCP plans to raise the special tax on mining profits from 7.5% to 8.5% and the extraordinary tax on revenues from the sale of gold, silver, and platinum from 0.5% to 1%. The Ministry justifies the hike by citing rising global metal prices and the nature of those assets.
"Considering that minerals and substances from the subsoil are non-renewable public domain assets, it is proposed to increase the special and extraordinary rights on mining," the SHCP stated in the bill <a target="_blank" href="https://www.bnamericas.com/en/news/mexican-govt-proposes-raising-taxes-on-mining-companies" rel="noreferrer noopener">per</a> bnamericas. The Ministry projects that the additional revenues will be allocated to government programs and projects, though specific details were not disclosed.
In 2021, an International Monetary Fund<a target="_blank" href="https://www.imf.org/-/media/Files/Publications/WP/2021/English/wpiea2021245-print-pdf.ashx" rel="noreferrer noopener"> working paper</a> by Alpha Shah explored Mexico's mining tax regime, concluding it was less burdensome than in many comparable nations. Shah's findings pointed out that there is room to increase the overall tax burden on mining while still maintaining competitiveness. The paper suggested a balanced redesign to boost the government's share of resource rents while ensuring the sector remains an attractive investment destination.
Why It Matters? Mining is important to Mexico's economy, contributing 2.5% to GDP and supporting 400,000 direct jobs. The country is the world's leading silver producer and a major supplier of gold and copper. However, with increasing global competition, Mexico could struggle to attract new investments under a higher tax regime.
The country needs significant investment to bolster its mining sector, which has already seen declining fiscal contributions. These contributions fell 32% in 2023, further underlining the need for a balanced approach to taxation. Furthermore, bnamericas noted that industry experts warned the proposed increases could discourage nearly $7 billion in mining investments by 2025, particularly as companies face other challenges, such as reduced concession terms and stricter water-use permits.
While the proposed taxes aim to capture more value from the mining sector, they may also reduce Mexico's appeal compared to peers like Chile, Peru, and Canada. These countries offer competitive tax regimes and have become increasingly attractive destinations for mining investment.
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Mexico's Increased Mining Royalties Could Deter $7 Billion In Foreign Investments

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

Billionaire and former Glencore CEO Alex Beard charged with corruption in UK along with four others, accused of making corrupt payments in West Africa.
A British billionaire who made a fortune while working for a top commodities company was charged with corruption on Thursday. The company previously <a href="https://www.benzinga.com/government/22/05/27390214/commodity-trader-glencore-looks-to-settle-bribery-market-manipulation-charges-by-paying-penalties-up">pleaded guilty to corruption in 2022</a>.
What Happened: Alex Beard, a billionaire and former head of oil at Glencore ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>), has been charged with corruption by the UK&#8217;s Serious Fraud Office (SFO), alongside four other former Glencore employees, <a href="https://www.bloomberg.com/news/articles/2024-08-01/glencore-s-billionaire-ex-oil-head-alex-beard-charged-with-corruption-by-uk?sref=TBDibEcD">per</a> Bloomberg. Beard served as head of oil at Glencore for over a decade before leaving in 2019.
Beard is accused of conspiring to make corrupt payments to benefit Glencore's oil operations in West Africa. The SFO accused Beard of improper actions with government officials and employees of state-owned oil firms in Nigeria and Cameroon between 2007 and 2014.
Beard's former deputy, Andy Gibson also faces allegations of making corrupt payments in Nigeria, Cameroon and the Ivory Coast, and falsifying invoices. Additional charges were brought against Paul Hopkirk, Ramon Labiaga and Martin Wakefield, former Glencore employees involved in West African oil trading. All four former Glencore employees are set to appear in a British court on Sept. 10.
Glencore, founded in 1974 by the late Marc Rich, is a commodity giant with mines, oil, trading, and agriculture operations worldwide. The company — which went public in 2011 — has a market cap of 49.55 billion pounds ($63,273,863,500).
This follows Glencore&#8217;s 2022 guilty plea to corruption and market manipulation in the U.S. and U.K., resulting in $1.5 billion in fines. Beard, who founded Adaptogen Capital post-Glencore, exited his role there on July 12.
"Bribery damages financial markets and causes lasting harm to communities," SFO Director Nick Ephgrave <a href="https://www.ft.com/content/27b66a9f-b1e6-4c49-83a7-f7896539ad2e?FTCamp=engage/CAPI/desktopapp/Channel_Bloomberg//B2B">told</a> the Financial Times in a statement. "Today's action is an important step towards exposing overseas corruption and holding those who are responsible to account."&nbsp;
Beard has a net worth of $2 billion <a href="https://www.forbes.com/profile/alex-beard/">according</a> to Forbes. Beard owned 2.5% of Glencore in 2019. He was born in London and attended Oxford University.
Price Action: Glencore shares were trading at $10.69, down 3.26% at the time of writing.
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Mining Billionaire Charged With Corruption In British Court: What You Need To Know

Source: <a href="https://www.streetwisereports.com/article/2024/07/19/critical-minerals-co-starts-fieldwork-at-montana-flagship-project.html?utm_medium=feed">Streetwise Reports 07/22/2024</a>
Stillwater Critical Minerals Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/pgezf#OTC">PGEZF</a>) announced it has started 2024 field activities at its flagship Stillwater West project in Montana, including a property-wide airborne electromagnetic geophysical survey.
Expert Geophysics Ltd. will conduct a combined time-domain electromagnetic (EM) survey using their TargetEM26 system along with a magneto-telluric survey using their MobileMTm system at the nickel-platinum group element-copper-cobalt plus gold (Ni-PGE-Cu-Co plus Au) project.
The survey will utilize the newest technological advancements in airborne EM, building on the success of a first-generation DIGHEM airborne EM survey flown over the project in 2000. It will cover about 1,069 line-kilometers and provide higher-resolution and improved depth of investigation from the DIGHEM airborne EM survey, as well as VLF coverage.
It has been designed in collaboration with Glencore International Plc (OTC: <a class="ticker" href="https://www.benzinga.com/stock/glncy#OTC">GLNCY</a>), which holds a 15.4% position in Stillwater and has provided ongoing technical support to the company, to fine-tune priority conductive drill targets across the 12-kilometer main resource area, as well as to assist with prioritization and ranking of additional untested conductive targets across the broader 61-square-kilometer property.
This large-scale geophysical survey is part of a larger program that is expected to include an updated mineral resource estimate that will support the commencement of various studies relating to potential production scenarios&quot; Stillwater President and Chief Executive Officer Michael Rowley said. &quot;These objectives will be important milestones in preparation for continued resource expansion drilling across the 12-kilometer deposit area, as well as in developing target areas.&quot;
<h2>Airborne Surveys to Give Important Info</h2>
Rowley said Stillwater is also pursuing a number of other studies and initiatives with strategic partners such as Cornell University and various U.S. government agencies.
The technical committee that includes Glencore is focusing on the expansion potential of the lower Stillwater Igneous Complex, the company said. The addition of Glencore&#39;s vice president of business development to Stillwater&#39;s board of directors in June confirmed this focus on expansion potential.
Detailed geological and structural interpretive work during the past two years added significantly to Stillwater&#39;s understanding of the large Platreef-style mineralized system discovered within the footwall contact zone of the project complex, Vice President Exploration Dr. Danie Grobler said.
&quot;Our geological models now display strong geological control and continuity on mineralized zones&quot; Grobler said. &quot;The planned airborne surveys will provide important high-resolution data sets to refine targeting of high-grade nickel-copper-PGE sulphide-hosted mineralization within the multikilometer-scale geophysical anomalies that we see across the 32-kilometer-long mineralized system.&quot;
<h2>Parallels With Massive South Africa Complex</h2>
In June, the company reported the final drill results from resource expansion drilling at the project, including six holes totaling 2,310 meters that were focused on expanding resources at the west end of the current deposits, which span nine kilometers.
All six holes targeted and successfully intercepted magmatic nickel and copper sulfide mineralization with significant PGE mineralization, furthering known parallels with the Bushveld Igneous Complex, the largest layered igneous intrusion in the Earth&#39;s crust in South Africa.
&quot;Our drill campaigns have successfully leveraged a substantial historic database to arrive at a total of approximately 40,000 meters of drilling in 236 holes to date&quot; said Rowley at the time. &quot;That wealth of data, combined with Glencore&#39;s backing and in-house expertise from similar geology in South Africa&#39;s Bushveld Igneous Complex, has positioned us exceptionally well with the largest nickel resource in an active American mining district at a time when the U.S. is looking to onshore supply chains of nine of the commodities we have inventoried.&quot;
Stillwater noted that drilling also successfully intercepted N-series mineralization in structures that are not known in the Bushveld Igneous Complex but have now been modeled in a series of eight north-south trending structures at Stillwater West.
The company said those results demonstrated significant potential to expand the 2023 Mineral Resource Estimate (MRE) for the project. All deposits and mineralization remain open for expansion in planned follow-up drilling.
<h2>The Catalyst: Powering the Green Energy Transition</h2>
According to a report by CarbonCredits.com, a rapid expansion in Indonesia&#39;s nickel industry has led to oversupply, causing price declines from highs in 2022 and 2023. However, it noted the long-term outlook for the metal remained positive and that &quot;market analysts also share the same sentiment.&quot;
The nickel market is expected to grow by a compound annual growth rate (CAGR) of more than 4.8% from 2024 to 2029, according to Mordor Intelligence. The market was valued at more than 2.1 million tons in 2021, analysts said.
The driving force over the medium term will be the demand for nickel in stainless steel alloys, Mordor noted, as well as for automobile batteries and energy storage systems in wind turbines or solar panels needed for the energy transition.
An article from Stockhead on May 13 noted how Sprott&#39;s Steve Schoffstall spoke highly about nickel potential.
&quot;In our view, nickel miners are poised to offer investment attractive opportunities to investors&quot; Schoffstall said. &quot;Although nickel prices declined in 2023 on the back of softer Chinese EV sales and a flood of supply from Indonesia, the metal has been rebounding thus far in 2024 and benefiting the prospects of mining companies.&quot;
Schoffstall added, &quot;The rise in nickel prices seems to be a combination of investor sentiment, potential supply constraints, and the underlying long-term demand for nickel in the clean energy transition.&quot;
Geopolitics are also important to consider, especially given Chinese dominance in nickel markets via the mines and processing operations in Indonesia, Rowley told Streetwise Reports, adding that BHP&#39;s recent decision to suspend production at their giant Nickel West operations in Western Australia is evidence that China&#39;s strategy to squeeze out western miners is working.
&quot;For this reason, Stillwater highlights the importance of having the largest nickel resource in an active U.S. mining district&quot; he said.
According to Straits Research, Platinum Group Metals (PGM) are utilized in various products, including oxygen sensors, fuel cells, auto catalysts, jewelry, electronic parts, and medical equipment, among other things.
The global market for PGE was US$15.7 million in 2021 and is projected to reach US$21.8 million by 2030, growing at a compound annual growth rate (CAGR) of 4.44% from 2022 to 2030, researchers said.
Copper and cobalt are also needed for the energy transition for use in wires and batteries and other important products.
<h2>Ownership and Share Structure</h2>
Management and insiders own approximately 20% of Stillwater, according to the company.
Executive Chairman and Director Gregory Shawn Johnson owns 2.86%, President and CEO Michael Victor Rowley owns 2.56%, Independent Director Gregor John Hamilton owns 1.65%, Independent Director Gordon L. Toll owns 0.44%, and Vice President of Exploration Daniel F. Grobler owns 0.23%, according to Reuters.
Institutions own approximately 25% of the company, high net-worth investors own about 37%, and Glencore Canada Corp. owns 15.4%. About 18% of the company&#39;s shares are in retail, Stillwater said.
There are about 227 million shares outstanding with 174.5 million free float traded shares, while the company has a market cap of CA$36.33 million and trades in a 52-week range of CA$0.13 and CA$0.22.
Important Disclosures:
<ol>
<li>Stillwater Critical Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.</li>
<li>As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Stillwater Critical Minerals Corp.</li>
<li>Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.</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. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
</ol>

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Critical Minerals Co. Starts Fieldwork at Montana Flagship Project

Most of us have heard the dictum &quot;the trend is your friend.&quot; And this is undeniably the key to success when it comes to short-term investing or trading. But it isn&#39;t easy to ensure the sustainability of a trend and profit from it.
Often, the direction of a stock&#39;s price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it&#39;s important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our &quot;Recent Price Strength&quot; screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Glencore PLC (OTC: <a class="ticker" href="https://www.benzinga.com/stock/glncy#OTC">GLNCY</a>) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for &quot;trend&quot; investors.
A solid price increase over a period of 12 weeks reflects investors&#39; continued willingness to pay more for the potential upside in a stock. GLNCY is quite a good fit in this regard, gaining 4.4% over this period.
However, it&#39;s not enough to look at the price change for around three months, as it doesn&#39;t reflect any trend reversal that might have happened in a shorter time frame. It&#39;s important for a potential winner to maintain the price trend. A price increase of 2.6% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, GLNCY is currently trading at 82.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock&#39;s near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.
Another factor that confirms the company&#39;s fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock&#39;s near-term price performance.
So, the price trend in GLNCY may not reverse anytime soon.
In addition to GLNCY, there are several other stocks that currently pass through our &quot;Recent Price Strength&quot; screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past.
<a href="https://www.zacks.com/stock/news/2299074/here-s-what-could-help-glencore-glncy-maintain-its-recent-price-strength?cid=CS-BENZ-FT-tale_of_the_tape|recent_price_strength_screen-2299074">To read this article on Zacks.com click here.</a>

Earnings

Here's What Could Help Glencore Maintain Its Recent Price Strength

Labour Party member Keir Starmer is set to become the new prime minister of the United Kingdom with <a href="https://www.benzinga.com/news/24/07/39640147/keir-starmer-to-become-uk-prime-minister-as-labour-wins-big-over-rishi-sunaks-conservatives-mohamed">a win over the Rishi Sunak-led Conservative Party.</a>
The win marks an end to 14 years of Conservative Party control in the United Kingdom. The Labour Party will also have one of the largest majority government leads in the country in 25 years, as reported by CNN.
"A mandate like this comes with a great responsibility," Starmer said Friday. 
Starmer promised to put "country first, party second" in his victory speech.
UK Stocks &amp; ETFS: Gains for United Kingdom stocks and ETFs were minimal on Friday with the results of the election potentially priced in and others dissecting what the Labour Party in control means for certain sectors.
The iShares MSCI United Kingdom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWU#NYSE">EWU</a>) is up 0.5% on Friday. The largest U.K. ETF has $2.8 billion in assets under management and holds 80 stocks representing <a href="https://www.benzinga.com/quote/EWU/news">the largest companies in the country</a>.
The top holdings are:
AstraZeneca PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>)
Shell PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>)
HSBC Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSBC#NYSE">HSBC</a>)
Unilever PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UL#NYSE">UL</a>)
BP PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>)
RELX PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RELX#NYSE">RELX</a>)
GlaxoSmithKline PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSK#NYSE">GSK</a>)
Rio Tinto PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>)
Diageo PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>)
Glencore PLC (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>)
Eight of the 10 largest holdings are up Friday at the time of writing, with HSBC and Rio Tinto trading lower.
The top weightings in the iShares ETF are the categories of financials (19.3%), consumer staples (16.4%) and energy (13.4%).
The Franklin FTSE United Kingdom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLGB#NYSE">FLGB</a>) also offers exposure to the country with 107 holdings. The fund has all the same top 10 holdings as the iShares MSCI United Kingdom ETF, in a slightly different order and at smaller weightings. The ETF's largest categories are financials (19.5%), consumer staples (15.5%) and energy (14.4%).
Another ETF option is the iShares MSCI United Kingdom Small Cap ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/EWUS#BATS">EWUS</a>). The ETF holds 231 stocks and has smaller weightings for the small-cap components it holds. The top categories for the ETF are industrials (21.5%), financials (19.8%) and consumer discretionary (14.8%).
What Experts Are Saying: British private bank and wealth management company Coutts sees policy changes from the Labour Party leadership taking time to materialize.
"In terms of what this means for the U.K. population and our clients, we will closely monitor the developments of a Keir Starmer government and its potential impact on markets," Coutts Chief Investment Officer Fahad Kamal said.
Kamal said history shows U.K. elections don't tend to have a "long-term impact on markets."
The CIO said it could be "business as usual" for the United Kingdom. One item to closely monitor is falling inflation in the country and the potential for rate cuts soon, which could improve economic growth in the country, he said. 
RBC Capital analysts see the homebuilding sector in the United Kingdom benefitting with a Labour Party win, as reported by CNBC. The analysts said the new leadership and policy pledges could lead to a "new age" for homebuilding in the country.
"Over the last few years housebuilders' potential has been hamstrung, but over the next few this potential is likely to be unleashed," the RBC analysts said.
It is worth noting the iShares MSCI United Kingdom Small Cap ETF counts the real estate sector as its fourth-largest weighting at 12.3%, which could make the ETF stand out based on policy. The EWU and FLGB ETFs have 0.8% and 1.1% exposure to the real estate sector, respectively.
Allianz also sees opportunity in U.K. homebuilders with the Labour Party win and likely cuts to interest rates ahead. 
"We expect rules and regulations around planning permissions to be quickly relaxed by the incoming government," Allianz said.
Allianz also sees opportunity in U.K.-listed mining companies thanks to the electrification of the energy supply.
Citi has a preference for the FTSE 250 over the FTSE 100, preferring small to mid-cap sized companies over large caps, as reported by Investing.com.
"We see an improving balance of risks for UK SMID caps, which have underperformed, but are expected to have superior growth vs. large caps. SMID caps are also better positioned to benefit from rate cuts and a pick-up in dealmaking," Citi said.
Sectors like real estate and utilities were mentioned positively by Citi in the post-election comments.
Related Link:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39636949/british-pound-european-stocks-surge-ahead-of-uk-election-results-bitcoin-plummets-w">British Pound, European Stocks Surge Ahead Of UK Election Results; Bitcoin Plummets: What&#8217;s Driving Markets Thursday?</a></li>
</ul>
Photo via Shutterstock.

Specialty ETFs

Politics

EWUS

FLGB

HSBC

RELX

SHEL

United Kingdom Stocks, ETFs To Watch After Keir Starmer, Labour Party Win

WASHINGTON — An executive from Glencore ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) and other experts at a mining conference this month pointed to a sluggish permitting system for holding back the U.S. <a href="https://www.benzinga.com/topic/mining">battery materials supply chain</a>.
While there has been some success downstream with gigafactories and cathode business, "the U.S. is extremely lacking" upstream in mining,&nbsp;Ash Lazenby, a senior cobalt trader with mining giant Glencore, said at a recent&nbsp;Benchmark Mineral Intelligence&nbsp;battery metals conference in Washington, D.C.&nbsp;
The U.S. needs to firm up its permitting timelines as "predictability" for viable projects is the main barrier to addressing a disconnect between America's energy transition aims and building up domestic capacity for supplying the raw materials for that transition, he said.
Having a rigorous permitting system doesn't preclude having a good line of sight for companies who want to develop resources, he said.
For projects with this type of visibility, "a company like Glencore would be there," he said.
Also Read: <a href="https://www.benzinga.com/government/24/04/38315652/biden-plan-to-reportedly-block-alaska-mine-access-draws-industry-ire-frankly-i-am-disgusted">Biden Plan To Reportedly Block Alaska Mine Access Draws Industry Ire: &#8216;Frankly, I Am Disgusted&#8217;</a>
<h1 class="wp-block-heading">Considering the Environment, Project Costs</h1>
The U.S. has a host of laws designed to protect the environment while projects are being constructed, said Frank Macchiarola, chief policy officer with the American Clean Power Association.
But those laws have been used to keep projects from getting constructed at all, he said.&nbsp;
"We need to build things faster in the U.S.," he said. "We view it as a question of business certainty."
Project timelines can be sped up with permitting reform, not by making things worse for the environment, he added.
"It's better for the environment if we source things from the U.S.," said&nbsp;Richard Russell, senior vice president of government and political affairs with the&nbsp;National Mining Association.
The process for drafting an environmental impact statement for a project shouldn't take more than a year, even for the most complicated situations, he said. But the average timeline is now 4.5 years, and some take as long as seven years, he added.
He noted that permitting timelines spanning more than one presidential term increases uncertainty for the industry.
Data from 2015 showed that permitting delays reduced the net value of a mining project by a third, Russell said.
"It makes it more expensive to do business here," he said.&nbsp;
Even if a timeline is five years long, certainty helps projects attract capital, said&nbsp;Joshua Lanning, executive director with&nbsp;CIBC Capital Markets. Riskier projects make capital more expensive, he said.
<h1 class="wp-block-heading">Litigation Reform Urged</h1>
Russell said that mining companies worry about going through a lengthy permitting process only to have the rug yanked out from under them because of a new round of litigation.
"There needs to be enforceable timelines," he said.
Macchiarola agreed.
"We should limit both the scope and the time with litigation," he said.
Now Read: 
 • <a href="https://www.benzinga.com/government/24/02/37203466/energy-transition-metals-at-stake-potential-us-mining-law-update-pits-industry-against-environmental">Energy Transition Metals At Stake: Potential US Mining Law Update Pits Industry Against Environmentalists</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!
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Regulations

Management

Interview

Glencore, Other Experts Say US Permitting System Holding Back Domestic Battery Metals Industry

The investment landscape for copper has been ignited by recent bullish predictions, particularly from prominent hedge fund <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">manager Pierre Andurand</a>. 
Andurand's <a href="https://www.ft.com/content/725234a6-9e6f-4a4a-9406-2bda667ca511">forecast</a> of copper prices reaching $40,000 per tonne underscored a compelling investment opportunity in copper miner stocks and the Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>).
Here are the drivers behind his optimistic outlook for copper. Benzinga will also touch upon the performance and holdings of the Global X Copper Miners ETF and examine technical indicators to present a comprehensive case for investors.
<h1 class="wp-block-heading">Copper Demand-Supply Dynamics</h1>
Copper, a critical metal in the energy transition, is poised for significant demand growth. Andurand&#8217;s prediction is based on the increasing electrification of the world, including:
<ul>
<li>electric vehicles</li>
<li>renewable energy infrastructure</li>
<li>military applications</li>
<li>data centers</li>
</ul>
As these sectors expand, the demand for copper is expected to double, outpacing supply, which traditionally takes about 15 years to develop new mines.
<h1 class="wp-block-heading">Pierre Andurand's Bullish Outlook For Copper</h1>
Andurand, known for his success in commodities trading, shifted his focus to copper after experiencing setbacks in the oil market.
His Commodities Discretionary Enhanced fund rebounded from a 55% loss last year and is now up 83% year-to-date, largely due to diversified commodity investments.
He believes current supply constraints and robust demand will propel copper prices to unprecedented heights.
<h1 class="wp-block-heading">COPX ETF Overview</h1>
The Global X Copper Miners ETF (COPX) offers a targeted investment in copper mining companies. With an expense ratio of 0.65%, the ETF has shown impressive returns:
<ul>
<li>3 Month Return: 32.70%</li>
<li>YTD Return: 27.36%</li>
<li>1 Year Return: 39.32%</li>
</ul>
<h1 class="wp-block-heading">Key Holdings</h1>
Global X Copper Miners ETF's portfolio includes leading copper miners, reflecting a diversified exposure to the industry (Company name, U.S.-listed ticker, allocation%):
<ol>
<li>First Quantum Minerals Ltd. (OTCPK:FQVLF) &#8211; 5.31%</li>
<li>KGHM Polska Miedz S.A. (OTCPK: KGHPF) &#8211; 5.30%</li>
<li>Boliden AB (OTCPK:BDNNY) (OTCPK: BLIDF) &#8211; 4.82%</li>
<li>Lundin Mining Corp. (OTCPK: LUNMF) &#8211; 4.72%</li>
<li>Teck Resources Limited Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) &#8211; 4.69%</li>
<li>BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) &#8211; 4.64%</li>
<li>Glencore plc (OTCPK: GLCNF) (OTCPK: GLNCY) &#8211; 4.60%</li>
<li>Zijin Mining Group Co., Ltd. Class H (OTCPK: ZIJMF) (OTCPK: ZIJMY) &#8211; 4.58%</li>
<li>Antofagasta plc (OTCPK: ANFGF) &#8211; 4.54%</li>
<li>Freeport-McMoRan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) &#8211; 4.51%</li>
</ol>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38292100/freeport-mcmoran-vs-teck-resources-which-copper-stock-has-more-upside">Freeport-McMoRan Vs. Teck Resources — Which Copper Stock Has More Upside?</a>
<h1 class="wp-block-heading">Charts Indicate Bullish Outlook For Global X Copper Miners ETF</h1>
The technical indicators for Global X Copper Miners ETF reveal a moderately bullish trend, with buying pressure suggesting a positive outlook.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png" alt="" class="wp-image-357042" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
The Global X Copper Miners ETF share price is $48.66 while the 8-day simple moving average (SMA) is $49.98, which signals short-term bearishness.
However, the 20-day SMA at $48.35 and the 50-day SMA at $45.74 both indicate a bullish momentum. The 200-day SMA stands at $38.34, further reinforcing the bullish signal as the stock price remains well above it.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png" alt="" class="wp-image-357043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
The Moving Average Convergence Divergence (MACD) indicator is 1.21, suggesting bullishness, while the Relative Strength Index (RSI) at 53.65 indicates that the ETF is neither oversold nor overbought. 
Additionally, the Bollinger Bands support bullish signals as the ETF is trading within the upper range.
Given the bullish forecast for copper prices, driven by robust demand and constrained supply, copper miner stocks and the COPX ETF represent a compelling investment opportunity. 
Andurand's expertise and confidence in the market, coupled with strong ETF performance and supportive technical indicators, suggest that investors could consider taking exposure to this sector. 
As the world continues to electrify and transition towards renewable energy, the demand for copper is set to soar, making now an opportune time to invest in copper miners through Global X Copper Miners ETF.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">Not Just Nvidia, AI Is Also Fueling Global Copper Demand: Analyst Reveals 3 Top Stock Picks</a>
Photo: Shutterstock

Long Ideas

Hedge Funds

Technicals

BDNNY

BLIDF

FQVLF

GLCNF

KGHPF

TECK

ZIJMF

ZIJMY

Copper To $40,000 A Tonne, Says Hedge Fund Titan Pierre Andurand: What ETF Investors Should Watch

Shell plc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>) said its subsidiary, Shell Singapore Pte Ltd, has&nbsp;reached an agreement&nbsp;to&nbsp;<a target="_blank" href="https://www.shell.com/news-and-insights/newsroom/news-and-media-releases/2024/shell-to-sell-interest-in-singapore-energy-and-chemical-park.html" rel="noreferrer noopener">sell&nbsp;</a>its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd.
CAPGC is a joint venture&nbsp;company&nbsp;between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.&nbsp;
Chandra Asri is an Indonesian chemical and infrastructure solutions company&nbsp;and&nbsp;Glencore&nbsp;Plc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) is one of the world&#8217;s largest global diversified natural resource companies and a producer and marketer of more than 60 commodities that advance everyday life.
The transition&nbsp;is expected&nbsp;to transfer&nbsp;all of&nbsp;Shell&#8217;s interest in Shell Energy and Chemicals Park Singapore, including the physical assets and commercial contracts, to CAPGC.
The decision comes after Shell initiated a strategic review of its Energy and Chemicals Park assets&nbsp;on&nbsp;Bukom and Jurong Island&nbsp;in June 2023.
The Pulau Bukom assets include a 237,000 barrels-per-day refinery and a 1.1 million tonnes-a-year ethylene cracker.&nbsp;Shell Jurong Island occupies more than 60 hectares&nbsp;on Jurong Island&nbsp;and manufactures petrochemicals, including ethylene oxide, ethoxylates, styrene monomer, and propylene oxide.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38650512/shell-shifts-gears-in-south-africa-reportedly-exits-downstream-unit" rel="noreferrer noopener">Shell Shifts Gears in South Africa, Reportedly Exits Downstream Unit</a>
Shell and CAPGC have also signed crude supply and products offtake agreements that will come into effect following completion.
After the completion, all employees providing dedicated support to&nbsp;the Shell&nbsp;Energy and Chemicals Park Singapore will retain their employment with CAPGC.
The transaction&nbsp;is expected&nbsp;to&nbsp;be completed&nbsp;by the end of 2024.
&#8220;This agreement marks a significant step in Shell&#8217;s ongoing efforts to high-grade our Chemicals and Products&nbsp;business,&nbsp;and is a testament to our commitment to deliver more value with&nbsp;less&nbsp;emissions, as outlined at our Capital Markets Day last year,&#8221; said Shell&#8217;s Downstream, Renewable and Energy Solutions Director, Huibert&nbsp;Vigeveno.
At the end of the first quarter, Shell had a net debt of&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38584564/shell-q1-earnings-power-shines-despite-revenue-headwinds" rel="noreferrer noopener">$40.5 billion, with a gearing ratio of 17.7%</a>.&nbsp;
Shell stock has gained more than 19% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HJEN#NYSE">HJEN</a>) and VanEck Natural Resources ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAP#NYSE">HAP</a>).
Price Action: SHEL shares are trading lower by 0.47% at $72.63 in premarket at the last check Wednesday.
Image by siam.pukkato via Shutterstock

General

Market Vectors RVE Hard Assets Producers ETF

HJEN

Energy Shift: Shell Offloads Singapore Energy And Chemicals Park To Glencore-Chandra Asri Capital Joint Venture

Diversified miners Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) and Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) offer <a href="https://www.benzinga.com/m-a/24/05/38612588/potential-bidding-war-emerges-for-anglo-american-as-glencore-considers-offer">a better match than</a> that proposed in BHP Group&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) offer for Anglo, RBC Capital Markets analyst Marina Calero said in a note to clients on Friday.
Last week, Australia-headquartered BHP said it had made a $39 billion offer for London-based Anglo, which swiftly rejected the proposal as too low. This week, Reuters reported that Glencore, which is based in Switzerland, is considering a bid for the UK miner.
"We see the potential for a GLEN/AAL combination to have higher synergies vs. BHP/AAL given the closer proximity of the assets and the potential synergies for GLEN&#8217;s marketing division," Calero said.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38447657/copper-is-a-hot-commodity-bidding-war-for-anglo-american-may-emerge-after-bhps-low-">Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP&#8217;s &#8216;Low Ball&#8217; Offer — &#8216;Let The Games Begin&#8217;</a>
Copper assets are at the heart of both companies' interest in Anglo as the red metal is a key component of electric vehicles and renewable energy installations, demand for which is accelerating as nations around the world transition away from fossil fuels. All three diversified miners are also involved in coal.
"Mining synergies would largely come from the South American copper division and the Australian coal assets," Calero said.
In Chile:
<ul>
<li>Anglo and Glencore each hold a 44% stake in the Collahuasi mine, which has some of the largest copper reserves in the world.&nbsp;</li>
<li>Glencore owns the Lomas Bayas mine.&nbsp;</li>
<li>Anglo has a 50.1% stake in the Los Bronces mine and the same stake in the El Soldado mine.</li>
<li>BHP owns 57.5% of Escondida, the world's biggest copper mine. It owns the Pampa Norte mine.</li>
</ul>
In Peru:
<ul>
<li>Anglo owns 60% of the Quellaveco mine.</li>
<li>Glencore owns the Antapaccay mine.&nbsp;</li>
<li>BHP owns 33.75% of the Antamina mine, with Glencore holding the same percentage.</li>
</ul>
In Australia, all three companies have coal assets in Queensland.
RBC estimates that a combined Glencore-Anglo American would get 28% of its earnings before interest, taxes, depreciation and amortization (EBITDA) from copper, 19% from coal for electricity generation and 9% from the kind of coal used in steelmaking.
A combined BHP-Anglo would get 41% of its EBITDA from copper and 9% from coal, according to RBC figures.&nbsp;
Anglo has said the structure of the BHP offer is "highly unattractive."
It is contingent on the UK company spinning off its shareholdings in Anglo American Platinum Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANGPY#OTC">ANGPY</a>) and Kumba Iron Ore Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIROY#OTC">KIROY</a>), which are both listed in South Africa. 
In a merger with Glencore, the combined company might be able to keep the platinum and iron ore assets, Calero said.&nbsp;
"We view a combination of AAL with GLEN as potentially easier since the miner already has some assets in South Africa—coal, chrome and vanadium—and could be open to take on Amplats and Kumba into its portfolio," Calero said.
Jefferies analysts said in a note that Amplats and Kumba divestitures make sense in a deal with BHP. The miner already exited South Africa by spinning off South32 (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SOUHY#OTC">SOUHY</a>), which has manganese and aluminum holdings in the African nation, and selling its stake in mineral sands company Richards Bay Minerals.
BHP also does not want platinum-group metals mining, especially in South Africa with its headaches related to labor issues, geological challenges and power constraints, the Jefferies note said. Also, antitrust concerns would be an issue with Kumba in a BHP-Anglo deal, it said.
The Jefferies note also said copper antitrust concerns would likely be a problem in a BHP-Anglo tie up.
"It is not clear that the merged company would have non-core copper assets to divest as a proposed remedy," the Jefferies analysts wrote. "Los Bronces has operational upside, and BHP is clearly unlikely to sell its recently formed Copper South Australia business. Collahuasi, Quellaveco, Escondida, Pampa Norte, and Antamina would almost certainly be core as well.&#8221;
Now Read: <a href="EXCLUSIVE: Key Indicator May Flip Global Economic Forecasts — 'Copper Is Beginning To Define Its Own Narrative'">EXCLUSIVE:</a><a href="https://www.benzinga.com/markets/commodities/24/04/38111351/exclusive-key-indicator-may-flip-global-economic-forecasts-copper-is-beginning-to-define-its-"> Key Indicator May Flip Global Economic Forecasts — &#8216;Copper Is Beginning To Define Its Own Narrative&#8217;</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!
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SOUHY

Glencore-Anglo American Tie-Up Makes More Sense Than BHP Offer, Analyst Says

Australian multinational miner&nbsp;<a href="https://www.benzinga.com/quote/BHP">BHP Group</a>'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) nearly $40 billion bid for rival Anglo American (OTC:&nbsp;NGLOY) may not be enough to acquire the company as other diversified miners will probably make rival bids amid the global scramble for copper assets.
After completing a $6.4 billion takeover of Australian copper producer&nbsp;OZ Minerals&nbsp;last year, BHP is doubling down on the red metal amid widespread expectations that demand will greatly increase in coming years as the global economy transitions from fossil fuels. 
Solar and wind farms and electric vehicles require more copper than traditional utilities and internal combustion engine automobiles.
"This is the latest move to consolidate in industrial metals driven by a scramble for copper and other metals central to the world&#8217;s clean energy movement,"&nbsp;Sean Casterline, founder of the investment consulting firm&nbsp;Delta Capital Management, told Benzinga.
BHP, already the world's biggest mining company, is currently the third-largest copper producer behind Chile's state-run&nbsp;Codelco&nbsp;and U.S.-based heavyweight&nbsp;Freeport-McMoRan Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>). A combination with Anglo American would push BHP to the pole position.&nbsp;&nbsp;
"In our view, the copper assets are the primary driver of a proposed transaction,"&nbsp;RBC Capital Markets analysts said.&nbsp;
<h1 class="wp-block-heading">Rival Bids Seem Likely</h1>
BHP said it offered 25.08 pounds ($32.27) a share for London-based Anglo American, which said it is reviewing the proposal. The all-share deal values Anglo American at GBP 31.1 billion ($38.9 billion) and is contingent on the U.K. company spinning off its shareholdings in Anglo American Platinum Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANGPY#OTC">ANGPY</a>) and Kumba Iron Ore Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIROY#OTC">KIROY</a>), which are both listed in South Africa.
The proposal represents a nearly 14% premium for Anglo American's London-listed shares and a 31% premium without the platinum and iron ore units.
Analysts said that probably isn't enough.
Also Read: <a href="https://www.benzinga.com/markets/asia/24/04/38090219/will-copper-reach-10-000-an-essential-metal-that-faces-an-uncertain-future">Will Copper Reach $10,000? &#8216;An Essential Metal That Faces An Uncertain Future&#8217;</a>
Anglo American's shares have been so beaten down recently that its board and shareholders probably see BHP's bid as undervaluing the company, including copper assets in Chile and Peru, where BHP also has copper operations. Anglo American's shares have been suffering because of operational problems, a disappointing production outlook and a slump in diamond and platinum-group markets.
BHP's offer is "a timid and somewhat convoluted bid" that "won't be enough to draw either Anglo's board or its key shareholders," Liberum analyst Ben Davis said. After BHP's offer, he raised Anglo's price target to 27.50 pounds ($34.41), a near 25% bump from the stock&#8217;s closing price before the offer was officially made public.
Jefferies analysts went higher, saying a price of at least 28 pounds ($35.04) per share would be required for serious discussions between the companies, and a takeout price north of 30 pounds ($37.54) per share would be the outcome of a bidding war.
"If BHP does indeed continue to pursue this deal, we would be surprised if other bidders do not emerge," the company said. "Let the games begin."
The RBC Capital Markets analysts pegged diversified miner Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) as one logical bidder because of the potential advantages in combining the companies' copper assets. The company also listed Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) as a possibility because of the attractiveness of combining iron ore assets in Brazil. 
Davis pointed to diversified multinational miner&nbsp;Rio Tinto&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) as his top pick for an interloper, although he noted the company has a reputation for preferring to build mines rather than buy them.
<h1 class="wp-block-heading">Gold Miners Expand Copper Holdings</h1>
One reason why copper acquisitions are attractive is that building new copper mines from scratch is expensive and time-consuming.
That's especially true in the U.S., where getting a permit is difficult, or in other jurisdictions such as Panama, where a court ruling recently forced the closure of a huge copper mine after local protests, said&nbsp;Jason Crawshaw, portfolio manager at&nbsp;Polaris Capital, which invests in copper miners&nbsp;Lundin Mining Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) and Antofagasta (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANFGF#OTC">ANFGF</a>).
"There is a scramble for assets," he told Benzinga. "Everybody is always looking to get more exposure to copper."
Even gold miners have been interested in bulking up on copper assets.&nbsp;
Last year, U.S.-based gold mining major&nbsp;Newmont Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) bought Australian gold miner Newcrest Mining Ltd. for nearly $17 billion, adding nearly 50 billion pounds of copper reserves and resources in one fell swoop.
Meanwhile, Canada-headquartered rival&nbsp;Barrick Gold Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) is spending nearly $2 billion to expand a copper mine in Zambia, targeting expanded plant production in 2028.&nbsp;
Investors looking for diverse exposure to copper producers can consider the&nbsp;Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>),&nbsp;Sprott Copper Miners ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPP#NASDAQ">COPP</a>),&nbsp;Sprott Junior Copper Miners ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPJ#NASDAQ">COPJ</a>)&nbsp;and&nbsp;iShares Copper and Metals Mining ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICOP#NASDAQ">ICOP</a>).
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924793/rising-copper-prices-portfolio-review-make-underperforming-anglo-american-stock-a-p">Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Report (CORRECTED)</a>
Photo: Anglo American copper mine in Chile courtesy of Anglo American Flickr

Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP's 'Low Ball' Offer — 'Let The Games Begin'

When Indonesia's new president, Prabowo Subianto, assumes office in October he'll preside over the world's biggest nickel reserves and is widely expected to continue policies that have led to a global price slump for the battery metal and stainless steel ingredient.&nbsp;
The Southeast Asian nation accounted for more than half of global nickel production last year, but volume is only part of the story. 
Plentiful ore, cheap labor and low-cost electricity from power plants burning price-capped coal have helped Indonesia flood the world market with nickel at prices that sharply undercut competitors mining the metal elsewhere. 
Even with somewhat of a recovery since February, nickel prices are down around 19% over the past year.
This month, London-based Horizonte Minerals Plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HZMMF#OTC">HZMMF</a>) said it couldn't raise adequate financing for a nickel project in Brazil as potential investors declined to back the project because of "the unfavorable nickel market environment." 
That's on the heels of other nickel miners including multinational heavyweights BHP Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) and Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) saying they would&nbsp;mothball nickel operations.
"Indonesia produces some of the cheapest nickel in the world, so I think that the nickel operations in the rest of the world are going to really suffer," John Berman, chief investment officer of natural resources investment management company Berman Capital Group, told Benzinga. "Low nickel prices just give Indonesia the opportunity to gain more market share."
Also Read: <a href="https://www.benzinga.com/m-a/24/02/37318267/nickel-industry-cutbacks-to-support-prices-as-miners-brace-for-long-slump-2030s-will-likely-be-more">Nickel Industry Cutbacks To Support Prices As Miners Brace For Long Slump: &#8216;2030s Will Likely Be More Attractive&#8217;</a>
Berman thinks the president-elect will have policies similar to those of his predecessor, Joko Widodo, widely known as Jokowi.
Jokowi transformed Indonesia's nickel industry by banning the export of raw ore, requiring that value be added domestically through processing before being shipped out of the country. 
Amid the support for the domestic industry, Chinese companies began investing heavily in smelting and refining capacity that built up a steel supply chain in Indonesia. 
Indonesia now appears to be using a similar playbook to create a domestic electric vehicle battery supply chain. This time around, it appears Chinese firms may have to take a smaller slice of the pie given the interest Indonesia is seeing from companies from other nations.
"The critical challenge lies in advancing nickel processing for electric vehicle production, which will be a pivotal task for the new administration," Ahmad Syarif, a doctoral candidate in international affairs at Johns Hopkins University and an expert in Indonesian energy and natural resources issues, told Benzinga.
Even though Subianto is seen as continuing his predecessor's nickel policies, his election leaves market participants and observers wondering how he might put his own stamp on the industry, Nikhil Parikh, CEO of Indonesia-focused advisory Anise Partners, told Benzinga.
Subianto comes to the presidency from the position of defense minister. That may make him more focused on foreign relations, particularly regarding strategic partnerships and investment for natural resources such as minerals that are critical to the energy transition, Parikh said.
He will want to attract investment from the West and Middle East without alienating China, Parikh said. 
Over the next few years, Indonesia will continue to increase nickel refining capacity and leverage that to attract more of the electric vehicle supply chain, he added. 
That will mean more nickel ultimately stays in Indonesia, but for the foreseeable future it looks like the global market will continue to be awash in cheap Indonesian exports of the metal.
"I suspect it'll be full steam ahead for a while," Gregory Beischer, CEO of&nbsp;nickel miner Alaska Energy Metals Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AKEMF#OTC">AKEMF</a>), told Benzinga.
Now Read: <a href="https://www.benzinga.com/markets/commodities/24/03/37857275/exclusive-battery-companies-back-small-miners-for-long-term-provide-bright-spot-as-funding-ma">EXCLUSIVE: Battery Companies Back Small Miners For Long Term, Provide Bright Spot As Funding Market Crashes</a>
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Asia

AKEMF

HZMMF

Will Indonesia's New President Continue Nickel Policy, Which Undercuts Competitors?

Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>), the world&#8217;s second-largest metals and mining corporation, is facing a possible divestment from the Norwegian sovereign wealth fund. 
The Council On Ethics, charged with ensuring adherence to strict ethical guidelines, is deliberating whether to recommend exiting the $2.15 billion stake due to alleged <a href="https://www.benzinga.com/markets/equities/24/04/38073216/why-rio-tinto-shares-are-falling-today">deforestation links in the Brazilian Amazon</a>.
According <a href="https://www.wsj.com/articles/rio-tinto-faces-possible-norway-fund-divestment-over-alleged-deforestation-links-de34bec2">to</a> The Wall Street Journal, in January, the council asked Rio Tinto for comment on its draft recommendation to exclude the company from Norway's $1.6 trillion fund. Since then, Rio Tinto and the council have been in discussions, but a final decision hasn't been made.
The council, which is independent, plays an important role in the world's largest sovereign wealth fund. Its job is to scrutinize investments made by Norges Bank Investment Management, the fund's operator. It can then recommend excluding companies from the fund or placing them on an observation list.
Now Read: <a href="https://www.benzinga.com/news/24/04/38059585/a-watershed-moment-for-gold">A Watershed Moment for Gold</a>
Norway&#8217;s stringent approach to ethical investing has also led to divestments from other major players in the industry, such as Glencore ADR (OTCPK: GLNCY), as the fund dropped the stake in the Swiss miner in 2020 due to thermal coal production concerns. 
With Norges closely adhering to recommendations related to environmental, social and corporate governance factors since 2015, Rio Tinto&#8217;s potential exclusion from the fund carries significant weight, as the fund is its fifth largest shareholder.
Yet, this isn&#8217;t the first time Rio Tinto has faced such a predicament. Back in 2008, Norway made headlines by divesting from Rio Tinto over concerns regarding the Grasberg mine&#8217;s operations in Indonesia, citing environmental damage. This divestment lasted for 11 years until June 2019, when Rio Tinto sold its stake in the mine for $3.5 billion, paving the way for its re-entry into the fund.
Today, the controversy lies in Rio Tinto&#8217;s 22% ownership of a bauxite producer, Mineração Rio do Norte (MRN), in northern Brazil. Another MRN shareholder, Australian miner South32 ADR (OTCPK: SOUHY), which has a 33% stake, is also under assessment, as Norges owns 2.18% worth some $223 million. The third major shareholder is the aforementioned Glencore, with 45%.
As the largest sovereign wealth fund with $1.6 trillion under management, Norges holds an average of 1.5% stake in the world's listed companies. Owing to its size, the fund holds significant global sway. Its actions attract interest from other sovereign-wealth funds and large pools of capital, potentially shifting the sentiment around the companies in focus.
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924793/rising-copper-prices-portfolio-review-make-underperforming-anglo-american-stock-a-p">Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Repor</a>
Photo: Shutterstock

Norway's Sovereign Wealth Fund Contemplates Rio Tinto Divestment

Rio Tinto Plc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) shares are&nbsp;<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading lower on Wednesday.</a>
Norway&#8217;s sovereign wealth fund&#8217;s ethics adviser is evaluating the possibility of suggesting a sell-off of its substantial investment in Rio Tinto, citing environmental apprehensions, The Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/articles/rio-tinto-faces-possible-norway-fund-divestment-over-alleged-deforestation-links-de34bec2" rel="noreferrer noopener">reported</a>.
In recent months, the Council on Ethics, acting as the adviser, has informed Rio Tinto of its scrutiny regarding potential environmental harm stemming from the mining company&#8217;s activities in the Brazilian Amazon, the report read, citing a letter viewed by The Wall Street Journal.
The council&#8217;s apprehensions regarding Rio Tinto have centered on deforestation, particularly its stake in Mineração Rio do Norte (MRN) in northern Brazil, the report stated.&nbsp;
MRN claims to be Brazil&#8217;s largest bauxite producer, supplying around 12 million tons annually for aluminum production, as per the report.
Rio Tinto holds 22% ownership in MRN, alongside&nbsp;Glencore Plc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) (45%) and Australian miner&nbsp;South32 Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SHTLF#OTC">SHTLF</a>) (33%).
In January, the council requested Rio Tinto&#8217;s feedback on its preliminary proposal to bar the company from Norway&#8217;s $1.6 trillion fund. Subsequently, Rio Tinto and the council have engaged in talks, but a definitive verdict is pending, the report noted, citing sources familiar with the matter.
As an independent entity, the council holds significance for the world&#8217;s largest sovereign-wealth fund, examining investments made by Norges Bank Investment Management to ensure adherence to rigorous ethical standards. Subsequently, it may advise on excluding companies from the fund or listing them for observation.
Since 2015, Norges has adhered to every environmental recommendation, maintaining an average 1.5% stake in global listed companies.
For Rio Tinto, the world&#8217;s second-largest miner by market value, exclusion from the fund would be detrimental, the report read.
As of December 31, Norges held a substantial 2.24% stake valued at approximately $2.7 billion, making it one of the company&#8217;s top shareholders, The Wall Street Journal added.
Price Action:&nbsp;RIO shares are trading lower by 1.21% to $64.30 on Wednesday.

Media

SHTLF

Why Rio Tinto Shares Are Falling Today

Editor&#8217;s note: This story has been updated to correct the spelling of the investment banking firm Jefferies.
Diversified miner Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) could be a promising buy <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37852494/copper-stocks-rally-as-market-tightness-reaches-historic-levels-analysts-see-major-">as copper prices rise </a>and the company looks to transform itself, financial magazine Barron's said in an article.
The company has been underperforming competitors BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) and Glencore ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) because of operational problems, a disappointing production outlook and a slump in diamond and platinum-group markets, <a href="https://www.barrons.com/articles/buy-anglo-american-stock-pick-price-ecab17ba">according</a> to the article, which ran on Friday.
Anglo said it is reviewing its assets, with CEO Duncan Wanblad saying in a conference call that "nothing is off the table" in the asset review.&nbsp;
Anglo's exposure to South Africa, via stakes in platinum and iron ore operations, helped depress its stock price because of the nation's problems with the economy, crime and power outages, Barron's said. Meanwhile, analysts aren't thrilled about the company's expensive fertilizer project in England.
The company&#8217;s platinum and iron ore stakes could be spun off while it would be bullish for the stock if Anglo can bring in a partner on the fertilizer project. The article also speculated that the entire company could be sold to a competitor.
"Because of its recent troubles, Anglo American's stock looks inexpensive," the article said. "Ultimately, Anglo American offers shareholders two ways to win. It either cleans up its business this year, or it could find itself in the hands of a larger mining company that will develop its attractive resource base."
Also read: <a href="https://www.benzinga.com/markets/esg/24/03/37914506/bidens-475m-for-mining-aims-to-power-communities-hit-hardest-by-our-evolving-energy-landscape">Biden&#8217;s $475M For Mining Aims To Power Communities &#8216;Hit Hardest By Our Evolving Energy Landscape&#8217;</a>
The Barron&#8217;s article cited Jefferies mining analyst Christopher LaFemina as saying that if Anglo's situation doesn't improve, the company could attract a buyer or activist investor. He also said recoveries in the diamond and platinum-group metals markets could help the company's shares.
Meanwhile, Anglo's best business is copper, but LaFemina said the company isn't getting credit for that metal because of the other issues.
Morgan Stanley analyst Alain Gabriel recently upgraded Anglo to Overweight, noting the portfolio review, potential operational improvements and the company's exposure to copper, which has a strong long-term outlook because of limited new supply and rising demand from the green energy industry.&nbsp;
Others are bullish on copper too.
An RBC Capital Markets analyst note on Monday said copper fundamentals are supportive as inventories in Shanghai posted their first weekly decline since December, an indicator that destocking may have begun. That would create more supply tightness in the copper market, as Chinese smelters said they would cut production amid falling concentrate supply.
Meanwhile, demand from China, the world's largest copper consumer, could see improvement.
"We are also seeing constructive commentary surrounding China stimulus and property market support with China&#8217;s central bank stating on Thursday that there is significant monetary policy flexibility to implement additional cuts to the reserve requirement ratio for banks while state media cited cabinet meetings on Friday which were focused on further optimizing property policy to support the struggling property sector," the RBC note said.
An ING commodities strategist also sees potential in improving Chinese demand from rising housing completions, as well as support for copper from a weaker U.S. dollar resulting from potential rate cuts from the Federal Reserve.
ING, along with other experts, also saw support for copper from the energy transition away from fossil fuels.&nbsp;
"The demand side is expected to slowly improve this year, especially from the green energy sector," the ING note said. "Copper is used in everything from electric vehicles to wind turbines and power grids."
Now Read: <a href="https://www.benzinga.com/markets/equities/24/03/37906958/exclusive-new-era-for-mining-as-nouveau-monde-takes-on-china-in-graphite-supply-chain">EXCLUSIVE: &#8216;New Era For Mining&#8217; As Nouveau Monde Takes On China In Graphite Supply Chain</a>
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Upgrades

Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Report (CORRECTED)

Wildsight, a non-profit environmental organization, estimates that the selenium cleanup costs associated with Teck Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) coal mining activities in the Elk Valley region are much higher than anticipated. 
Despite<a href="https://www.benzinga.com/news/earnings/24/02/37285467/teck-resources-achieves-record-copper-production-targets-to-close-glencore-deal-by-q3"> excellent earnings results</a>, this news could slow the $8.9 billion coal asset sale to Glencore (OTCPK: GLNCY), which is pending regulatory approval.
According to the Wildsight<a href="https://wildsight.ca/2024/03/19/the-elk-valleys-6-4-billion-pollution-problem/"> report</a> and study, conducted by consulting firm Burgess Environmental, the cleanup cost could soar to at least $4.7 billion. That&#8217;s significantly higher than the $1.9 billion provisioned by the province for emergency shutdowns and mine reclamation.
&#8220;Their provisions with respect to capital spend do not align with B.C. government policy and their use of simplified assumptions overstate ongoing water treatment operating costs alone by 50-60%,&#8221; Dale Steeves, director of stakeholder relations at Teck Resources, <a href="https://www.reuters.com/world/americas/canadian-miner-tecks-elk-valley-clean-up-could-cost-least-c64-bln-environment-2024-03-19/">told</a> Reuters.
The report calculated the cleanup cost by assessing the expenses associated with implementing Teck&#8217;s current plan, which involves constructing water treatment plants until 2027 and operating them for 60 years.
See Also: <a href="https://www.benzinga.com/markets/commodities/24/03/37513662/the-answer-cannot-be-china-canadas-wilkinson-says-mining-scrutiny-intensifies-as-srg-scraps-d">&#8216;The Answer Cannot Be China,&#8217; Canada&#8217;s Wilkinson Says &#8211; Mining Scrutiny Intensifies As SRG Scraps Deal</a>
Selenium, a naturally occurring element toxic to fish in high concentrations, has been seeping into the surrounding environment for decades from waste rock piles around Teck&#8217;s coal mines. Although an important element in tiny amounts, in high doses, it becomes toxic, posing serious risks to aquatic life and causing deformities and reproductive issues in fish.
Teck has invested over $1 billion since 2014 to mitigate selenium concentrations, with plans to allocate an additional $150 million to $250 million by the end of 2024. Teck's investments include water treatment facilities, with the current treatment capacity reaching 77.5 million liters daily. 
However, selenium concentrations downstream of the mines still exceed regulatory guidelines, highlighting the persistent challenges in remediation efforts. Thus, the company plans to build six more facilities by 2027, increasing the capacity to 150 million liters per day.
In an interview for The Narwhal, Simon Wiebe, a mining policy and impacts researcher at Wildsight, expressed concerns about the sale&#8217;s potential implications.
&#8220;We hope that both Glencore and the Canadian government will give careful consideration to this report as they assess the sale, ensuring accountability for the selenium crisis is upheld throughout the ownership transfer,&#8221; he stated.
While the asset acquisition by a much larger company such as Glencore provides more capital to deal with the problem, the company has a history of<a href="https://www.benzinga.com/government/22/05/27390214/commodity-trader-glencore-looks-to-settle-bribery-market-manipulation-charges-by-paying-penalties-up"> bribery and market manipulation</a> allegations. Thus, Canadian environmentalists have a genuine reason to stay alert. 
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!
Also read: <a href="https://www.benzinga.com/markets/commodities/24/03/37822526/copper-prices-surge-to-11-month-high-amid-supply-concerns-freeport-ceo-to-politicos-stop-givi">Copper Prices Surge To 11-Month High Amid Supply Concerns, Freeport CEO To Politicos: &#8216;Stop Giving Lip Service&#8217;</a>
Image: Shutterstock

Cleanup Costs For Teck's Elk Valley Mining, May Slow $9B Asset Sale To Glencore, Wildsight Reports

Li-Cycle Holdings Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LICY#NYSE">LICY</a>) has entered into an agreement to issue a <a href="https://www.benzinga.com/partner/24/03/37532637/ride-the-changing-tide-in-the-markets-with-direxions-leveraged-etfs-as-growth-and-inflation-alter-ra">senior secured convertible note in an aggregate principal amount of $75 million</a> to an affiliate of Glencore plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>).
Glencore is a Switzerland-based producer, recycler, and marketer of nickel and cobalt for the production of lithium-ion batteries.
&#8220;We are pleased to secure an additional $75 million investment from Glencore, following Glencore&#8217;s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process,&#8221; said co-founder and CEO Ajay Kochhar.
Tim Johnston, co-founder and Executive Chairman, added that the company is reviewing its go-forward strategy for the paused Rochester Hub, including analyzing potential end-product mix options and construction strategy.&nbsp;
After the announcement in October 2023, in respect of the Rochester Hub, the company formed a Special Committee (SC) and deployed&nbsp;Moelis &amp; Company LLC, a global investment bank, as its financial advisor and placement agent.
After a careful review and assessment of the alternatives identified by the committee through the process, Li-Cycle has entered into the agreement with Glencore.
The company has agreed to seat two additional nominees of Glencore on its Board for a total of three nominees, with the first additional nominee to be identified by Glencore and proposed for election at the annual general meeting of shareholders to be held in 2024 and the second additional nominee to be proposed for election in 2025 or, if earlier, upon the occurrence of a vacancy.
Li-Cycle plans to provide its full-year 2023 financial and operating results on or before March 15, 2024, as part of the filing of its Annual Report on&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">Form 10-K for the year ended December 31, 2023.</a>
Price Action: LICY shares are trading higher by 29.46% at $0.5193 on the last check Tuesday.

Financing

LICY

Why Is Li-Cycle Stock Jumping Today?

Lower production among the world's largest nickel miners in response to a price slump for the metal end up <a href="https://www.benzinga.com/government/24/02/37203466/energy-transition-metals-at-stake-potential-us-mining-law-update-pits-industry-against-environmental">supporting the market</a>.
That&#8217;s according to Russian metals giant Nornickel. London Metal Exchange nickel prices are down around 30% in the year through Friday, primarily driven by burgeoning supply from Indonesia — the world's largest producer of the metal.
Nickel — used in steel making and electric vehicle (EV) batteries — is in oversupply. That coincides with weak demand from the European, Chinese and U.S. stainless steel industries plus a tempered outlook for EV sales growth. 
Inflationary pressures also raised miners' cost of extracting nickel, helping to prompt a production cutback to save money.
"The price has not yet reacted to the potential supply risks, but any further supply curtailments could impact the primary nickel supply materially, which would likely support the LME (London Metal Exchange) quotes in the near term," Nornickel said in an outlook this month. The company, which is the world's biggest producer of refined nickel, seemed slightly more positive than other major nickel producers.
Nickel producer BHP Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) expects supply and demand in the nickel industry not to rebalance until the late 2020s. 
The company recorded a $2.5 billion impairment charge at nickel operations in Western Australia and said it is considering putting one of the assets on care and maintenance and is assessing spending on development of another asset there. 
"We expect this oversupply is going to persist for some time, which we've called end of this decade, whereas the 2030s are likely to be more attractive," BHP CEO Mike Henry said in a conference call Tuesday.
Another major nickel producer, Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>), doesn't expect the market rebalancing "for quite some time," the company said Wednesday.
The Swiss miner and commodities trading giant is looking to sell its stake in a joint nickel venture in the South Pacific and will put the unprofitable mine on care and maintenance in the meantime. It cited high operating costs and a very weak nickel market.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37295857/warrior-met-coals-ballooning-development-costs-prompt-analysts-to-rethink-projectio">Warrior Met Coal&#8217;s Ballooning Development Costs Prompt Analysts To Rethink Projections</a>
"Battery demand, which has been growing exponentially in recent years, is expected to grow at a slower rate in the short term, as some EV manufacturers scale back sales forecasts," Glencore said. "Demand from the stainless steel and alloy sectors has continued to increase, but total demand is unable to absorb the large supply additions to the market."
Mining giant Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) is assessing how to lower costs at its Thompson operations in Manitoba, Canada, and its Onça Puma operations in Brazil, Mark Cutifani, chair of the company's base metals business, said in a conference call Friday. 
Productivity improvements over the next two to three years could translate into 15% operating cost reductions, he said. Separately, the company is prioritizing a decision about merging its nickel operations in Ontario, Canada, with those of Glencore to save on costs, Reuters <a href="https://www.reuters.com/markets/commodities/vale-bm-says-decision-merge-canada-nickel-ops-with-glencore-priority-2024-01-10/">reported</a>.
<a href=""></a>"The asset review is taking us in the right direction," Cutifani said. "We've just got to get there as quick as we can."
Other recent nickel mining developments related to the falling price include:
<ul>
<li>Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) took more than $800 million in impairment charges for its Barro Alto and Codemin mines in Brazil. "This takes the carrying value of assets excluding inventory to zero, and we are in the process of assessing the appropriate operating strategy for the near term," finance director John Heasley said in a conference call on Thursday.&nbsp;</li>
<li>First Quantum Minerals Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FQLV#OTC">FQLV</a>) said it would start only processing stockpiles at its Ravensthorpe mine in Australia.</li>
<li>Panoramic Resources Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PANRF#OTC">PANRF</a>) said it would suspend operations at its Savanna project in Australia.</li>
<li>Also in Australia, IGO Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/IPGDF#OTC">IPGDF</a>) recorded impairment charges on its Forrestania and Cosmos assets and put Cosmos on care and maintenance.</li>
<li>Sherritt International Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SHERF#OTC">SHERF</a>) reduced spending during the third quarter and in January announced layoffs amounting to 10% of its Canadian workforce.</li>
</ul>
Now Read: <a href="https://www.benzinga.com/markets/commodities/24/02/37074505/african-rail-projects-become-battleground-for-us-china-competition-in-strategic-mineral-suppl">African Rail Projects Become Battleground For US-China Competition In Strategic Mineral Supply Chains</a>
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Nickel Industry Cutbacks To Support Prices As Miners Brace For Long Slump: '2030s Will Likely Be More Attractive'

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호주의 다국적 광산업체인 <a href="https://www.benzinga.com/quote/BHP" target="_blank" rel="noopener">BHP</a> 그룹(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>)가 경쟁사인 앵글로 아메리칸(OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>)에 제출한 약 400억 달러 입찰은 이 회사를 인수하기에 충분하지 않을 수 있다. 왜냐하면 구리 자산에 대한 전 세계적 쟁탈전 속에서 다른 다각화된 광산업체들이 아마도 경쟁 입찰을 할 것이기 때문이다.
작년에 호주 구리 생산업체인 OZ 미네랄(OZ Minerals)의 64억 달러 인수를 완료한 후, BHP는 세계 경제가 화석 연료에서 전환함에 따라 앞으로 수요가 크게 증가할 것이라는 광범위한 기대 속에서 구리에 대한 투자를 두 배로 늘리고 있다.
태양광, 풍력 발전소, 전기 자동차에는 기존 유틸리티 및 내연 기관 자동차보다 더 많은 구리가 필요하다.
투자 컨설팅 회사인 델타 캐피털 매니지먼트(Delta Capital Management)의 설립자인 숀 캐스터라인(Sean Casterline)은 Benzinga에 &#8220;이것은 세계 청정 에너지 운동의 핵심인 구리 및 기타 금속에 ​​대한 쟁탈전으로 인해 추진된 산업용 금속을 통합하려는 최신 움직임&#8221;이라고 말했다.
이미 세계 최대의 광산 회사인 BHP는 현재 칠레의 국영 코델코(Codelco)와 미국의 대형 기업인 프리포트 맥모란(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>)에 이어 세 번째로 큰 구리 생산업체이다. 앵글로 아메리칸과의 합병으로 BHP는 선두 위치로 올라설 것이다.
RBC 캐피털 마켓의 분석가는 &#8220;우리의 견해로는 구리 자산이 제안된 거래의 주요 동인이라고 생각한다&#8221;라고 말했다.
<h1 class="wp-block-heading">경쟁 입찰 가능성 높다</h1>
BHP는 런던에 본사를 둔 앵글로 아메리칸에 주당 25.08파운드(32.27달러)를 제안했으며 앵글로 아메리칸은 이 제안을 검토 중이라고 밝혔다. 이번 전체 주식 거래는 앵글로 아메리칸의 가치를 311억 파운드(389억 달러)로 평가하며 이 영국 회사가 남아프리카에 상장된 앵글로 아메리칸 플래티넘(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANGPY#OTC">ANGPY</a>) 및 쿰바 철광석(Kumba Iron Ore Ltd.)(OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIROY#OTC">KIROY</a>)의 지분을 분할하는 데 달려 있다.
이번 제안은 앵글로 아메리칸의 런던 상장 주식에 대해서는 14% 가량의 프리미엄을, 그리고 동사의 백금 및 철광석 부문을 제외한다면 31% 가량의 프리미엄을 나타낸다.
그러나 이에 대해 여러 분석가들은 이게 충분하지 않을 수도 있다고 말했다.
또한 읽어볼 것: <a href="https://www.benzinga.com/markets/asia/24/04/38090219/will-copper-reach-10-000-an-essential-metal-that-faces-an-uncertain-future">구리는 1만 달러에 달할까? ‘불확실한 미래를 맞닥뜨리는 귀중한 금속&#8217;</a>
앵글로 아메리칸의 주가는 최근 너무 하락했기 때문에 이사회와 주주들은 아마도 BHP가 구리 사업을 운영하고 있는 칠레와 페루에서의 이 회사 구리 자산을 포함한 회사의 가치를 BHP의 제안이 과소평가한 것으로 생각할 것이다. 앵글로 아메리칸의 주가는 운영 문제, 실망스러운 생산 전망, 다이아몬드 및 플래티넘 그룹 시장의 부진으로 인해 어려움을 겪고 있다.
BHP의 제안은 &#8220;앵글로 이사회나 주요 주주를 끌어들이기에 충분하지 않은 소심하고 다소 복잡한 입찰&#8221;이라고 리버룸(Liberum)의 분석가 벤 데이비스(Ben Davis)가 말했다. BHP의 제안 이후 그는 앵글로의 목표 가격을 27.50파운드(34.41달러)로 높였다. 이는 제안이 공식적으로 공개되기 전 주식 종가에서 거의 25% 상승한 수치입니다.
제프리스(Jefferies)의 분석가들은 회사 간의 진지한 논의를 위해서는 주당 최소 28파운드(35.04달러)의 가격이 필요할 것이며 주당 30파운드(37.54달러)를 넘는 테이크아웃 가격은 입찰 전쟁의 결과가 될 것이라고 말하면서 더 높이 올렸다.
&#8220;만약 BHP가 실제로 이 거래를 계속 추진한다면 다른 입찰자가 나오지 않는다면 우리는 놀랄 것이다&#8221;라고 이 회사가 말했다. &#8220;이 게임이 시작되는 것을 보자.&#8221;
RBC 캐피털 마켓의 분석가들은 이 회사의 구리 자산을 결합할 때 얻을 수 있는 잠재적 이점 때문에 다각화된 채굴업체 글렌코어(OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>)를 하나의 논리적 입찰자로 선정했다. 이 회사는 브라질 철광석 자산 결합의 매력 때문에 발리(NYSE:<a class="items-end ticker-link-wrapper inline-flex" href="https://www.benzinga.com/quote/vale" target="_blank" rel="dofollow noopener" aria-label="Go to Quote Page for VALE">VALE</a>)도 가능성으로 내세웠다.
데이비스는 다국적 광산 기업인 리오 틴토(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>)를 중요한 후보로 꼽았다. 하지만 그는 이 회사가 광산을 구매하는 것보다 광산을 건설하는 것을 선호하는 것으로 유명하다고 지적했다.
<h1 class="wp-block-heading">금광 회사들의 구리 자산 확장</h1>
구리 인수가 매력적인 이유 중 하나는 처음부터 새로운 구리 광산을 건설하는 데 비용이 많이 들고 시간이 많이 걸린다는 것이다.
허가를 받기 어려운 미국이나 현지 시위 이후 최근 법원 판결로 대규모 구리 광산을 폐쇄해야 하는 파나마와 같은 다른 관할권에서는 특히 그렇다고 폴라리스 캐피털(Polaris Capital)의 포트폴리오 매니저인 제이슨 크로쇼(Jason Crawshaw)가 말했다. 폴라리스 캐피털은 구리 광산업체인 런딘 마이닝 코퍼레이션(OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>)와 안토파가스타(Antofagasta) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANFGF#OTC">ANFGF</a>)에 투자하고 있다.
그는 벤징가(Benzinga)에게 &#8220;자산 쟁탈전이 벌어지고 있다&#8221;고 말했다. &#8220;모두는 항상 구리에 더 많이 노출되기를 원한다.&#8221;
금광 회사들조차 구리 자산을 더 확대하는 데 관심을 갖고 있다.
작년에 미국에 본사를 둔 금광 메이저인 뉴몬트(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>)는 호주의 금광업체인 뉴크레스트 마이닝(Newcrest Mining Ltd.)을 거의 170억 달러에 인수하여 거의 500억 파운드에 달하는 구리 매장량과 자원을 단번에 추가했다.
한편, 캐나다에 본사를 둔 경쟁사인 배릭 골드(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>)는 2028년 공장 생산 확대를 목표로 잠비아 구리 광산을 확장하기 위해 약 20억 달러를 지출하고 있다.
구리 생산업체에 대한 다양한 노출을 원하는 투자자는 Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>), Sprott Copper Miners ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPP#NASDAQ">COPP</a>), Sprott Junior Copper Miners ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPJ#NASDAQ">COPJ</a>) 및 iShares Copper and Metals Mining ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICOP#NASDAQ">ICOP</a>)를 고려할 수 있다.
이제 읽어보세요: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924793/rising-copper-prices-portfolio-review-make-underperforming-anglo-american-stock-a-p">구리 가격 상승, 포트폴리오 검토로 결과가 나오지 않는 앵글로 아메리칸 주식</a>
사진: 앵글로 아메리칸의 칠레 구리 광산 사진 (출처: 앵글로 아메리카의 플리커)

구리는 HOT한 상품: BHP의 '인수 제안' 후 앵글로 아메리칸에 대한 입찰 경쟁 예상

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