U.S. Markets close in 49 mins

BHP to Bump Up Stake in SolGold to 14.7% for $22 Million

Zacks Equity Research

BHP Group BHP has agreed to subscribe for 77 million shares in Ecuador-focused mining company, SolGold Plc for GBP 17.06 million ($22 million). This investment will increase BHP Group’s stake in SolGold from the current 11.1% to 14.7%.

Following this deal, BHP Group will hold approximately 282.7 million of SolGold’s shares. Newcrest Mining currently holds approximately 14.8% of SolGold.

Subject to permitted exclusions, BHP has agreed not to acquire further shares or make an offer for SolGold for a period of two years up to Oct 15, 2020.  The permitted exclusions to this provision include a right for BHP to buy up to 246,634,271 shares in SolGold. It also comprises a right to make an offer to acquire SolGold provided such an offer has been approved and recommended to shareholders by the SolGold’s board

BHP also agreed for a period of two years (up to 15 Oct, 2020) to provide SolGold with a right of first offer in the event that BHP wishes to dispose of its acquired shares in SolGold to certain parties.
 
SolGold is primarily focused on finding copper and gold deposits and is the largest and most active concession holder in Ecuador. Notably, the country is considered a highly prospective yet under-explored section of the Andean Copper Belt, which is home to multiple Tier 1 copper and gold projects. It is considered to be the base for nearly half of the world’s copper production.

Its flagship project, Alpala, is located on the northern section of the extremely rich Andean Copper Belt.  SolGold holds 85% of the Alpala project, which is among the world’s best undeveloped deposits and has a potential 55-year life, per the company estimates. The company is also perusing 13 other priority targets in the nation.
 

BHP’s shares have fallen 2.0% over the past year compared with the industry’s decline of 6.4%

Trade volatility and slowdown in global growth have made investors jittery and affected commodity markets. However, even though metal prices remain subdued in the near term, the long term prospects remain solid.

Growth in world steel production spurred by urbanization will fuel demand for iron ore and sustain prices. The long-term outlook for copper is positive as copper demand is anticipated to improve, driven by electric vehicles and renewable energy and infrastructure investments, However, grade decline, rising input costs, water constraints and scarcity of high-quality future development opportunities continue to limit the industry’s supply. This demand supply imbalance will push copper prices north. BHP and other miners are thus focusing on increasing their copper exposure to cash in on its prospects.
 
Demand for nickel in electric vehicle batteries will continue to grow. Potash prices will also gain as demand exceeds supply. As of fiscal 2019 end, BHP Group had six major projects under development in petroleum, copper, iron ore and potash. All of them are on schedule and budget. BHP Group is making operations more efficient on the back of smarter technology adoption across the entire value chain.

Zacks Rank & Key Picks

BHP currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space include Agnico Eagle Mines Limited AEM, Franco-Nevada Corporation FNV and Kirkland Lake Gold Ltd. KL. While Agnico Eagle Mines and Franco-Nevada Corporation sport a Zacks Rank #1 (Strong Buy), Kirkland Lake Gold carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has a projected earnings growth rate of 168.6% for the current year. The company’s shares have rallied roughly 41% in the past year.

Franco-Nevada has estimated earnings growth rate of 46.2% for the current year. Over the past year, the company’s shares have surged roughly 32%.

Kirkland Lake Gold has projected earnings growth rate of 96.3% for the current year. The company’s shares have surged around 19% in the past year.

5 Stocks Set to Double

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

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

Today, See These 5 Potential Home Runs >>

  • Business
    Thomson Reuters StreetEvents

    Edited Transcript of MIK earnings conference call or presentation 5-Dec-19 2:00pm GMT

    Q3 2019 Michaels Companies Inc Earnings Call

  • China Sets Up National Pipeline Firm in Major Energy Revamp
    Business
    Bloomberg

    China Sets Up National Pipeline Firm in Major Energy Revamp

    The move marks a “key step” in China's efforts to deepen reforms of its oil and gas sector, the official Xinhua News Agency said Monday. A main development to watch is the valuation of assets, said Neil Beveridge, an analyst at Sanford C. Bernstein & Co. It may take six to nine months for that detail to emerge, based on a similar reform of telecom carriers in 2015 that created China Tower Corp., Beveridge said. The pipeline company's creation has been considered since at least 2014 and is part of President Xi Jinping's drive to streamline industrial capacity among state-owned enterprises.

  • Here's Why We Think Tomra Systems (OB:TOM) Is Well Worth Watching
    Business
    Simply Wall St.

    Here's Why We Think Tomra Systems (OB:TOM) Is Well Worth Watching

    In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Tomra Systems (OB:TOM). It's good to see that Tomra Systems's EPS have grown from kr4.50 to kr5.34 over twelve months. Tomra Systems maintained stable EBIT margins over the last year, all while growing revenue 13% to kr9.2b.

  • Is Air Transport Services Group, Inc.'s (NASDAQ:ATSG) ROE Of 20% Impressive?
    Business
    Simply Wall St.

    Is Air Transport Services Group, Inc.'s (NASDAQ:ATSG) ROE Of 20% Impressive?

    Our data shows Air Transport Services Group has a return on equity of 20% for the last year. That means that for every $1 worth of shareholders' equity, it generated $0.20 in profit. How Do I Calculate ROE?

  • Court rejects Minnesota's renewal of US Steel mine permit
    Finance
    Associated Press

    Court rejects Minnesota's renewal of US Steel mine permit

    The Minnesota Court of Appeals on Monday reversed a decision by state regulators to renew a wastewater discharge permit for U.S. Steel's giant Minntac iron ore mine in the northeast of the state. The court sent the dispute back to the Minnesota Pollution Control Agency for further proceedings. The agency first issued the permit in 1987 and renewed it last year amid a protracted dispute over whether Minntac had to comply with a state law meant to protect wild rice beds by limiting discharges of sulfates.

  • Has MRC Global Inc. (NYSE:MRC) Been Employing Capital Shrewdly?
    Business
    Simply Wall St.

    Has MRC Global Inc. (NYSE:MRC) Been Employing Capital Shrewdly?

    Today we are going to look at MRC Global Inc. (NYSE:MRC) to see whether it might be an attractive investment prospect. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. First up, we'll look at what ROCE is and how we calculate it.

  • Craig Kauffman Is The Executive VP of Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) And They Just Spent US$223k On Shares
    Business
    Simply Wall St.

    Craig Kauffman Is The Executive VP of Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) And They Just Spent US$223k On Shares

    Investors who take an interest in Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) should definitely note that the Executive VP, Craig Kauffman, recently paid US$22.32 per share to buy US$223k worth of the stock. Notably, that recent purchase by Craig Kauffman is the biggest insider purchase of Codorus Valley Bancorp shares that we've seen in the last year. In the last twelve months there was more buying than selling by Codorus Valley Bancorp insiders.

  • Exclusive: Malaysia's Mahathir hopeful of 1MDB settlement with Goldman soon
    Business
    Reuters

    Exclusive: Malaysia's Mahathir hopeful of 1MDB settlement with Goldman soon

    Malaysian Prime Minister Mahathir Mohamad is hopeful of reaching an out-of-court settlement with Goldman Sachs over the 1MDB scandal soon, but that compensation of "one point something billion" dollars offered by the bank was too small. The Southeast Asian nation has charged Goldman and 17 current and former directors of its units for allegedly misleading investors over bond sales totaling $6.5 billion that the U.S. bank helped raise for sovereign wealth fund 1Malaysia Development Bhd (1MDB). Mahathir said they have demanded $7.5 billion from Goldman and negotiations were ongoing.

  • Teresa Elder Is The CEO & Director of WideOpenWest, Inc. (NYSE:WOW) And They Just Spent US$75k On Shares
    Business
    Simply Wall St.

    Teresa Elder Is The CEO & Director of WideOpenWest, Inc. (NYSE:WOW) And They Just Spent US$75k On Shares

    Whilst it may not be a huge deal, we thought it was good to see that the WideOpenWest, Inc. (NYSE:WOW) CEO & Director, Teresa Elder, recently bought US$75k worth of stock, for US$5.92 per share. Notably, that recent purchase by Teresa Elder is the biggest insider purchase of WideOpenWest shares that we've seen in the last year. In the last twelve months WideOpenWest insiders were buying shares, but not selling.

  • Peloton tumbles on Citron issuing 2020 price target of $5
    Business
    Yahoo Finance Video

    Peloton tumbles on Citron issuing 2020 price target of $5

    Peloton's stock tumbled after Citron Research issued a 2020 price target of $5. Yahoo Finance's Zack Guzman and Heidi Chung discuss with Payne Capital Management President Ryan Payne on YFi PM.

  • Business
    Reuters

    Deutsche Telekom CEO denies T-Mobile/Sprint deal will reduce competition

    T-Mobile US Inc and Sprint Corp did not pursue a merger in order to reduce price competition in the U.S. wireless market, the chief executive of Deutsche Telekom, T-Mobile's majority shareholder, testified on Tuesday in federal court in Manhattan. A group of state attorneys general, led by New York and California, are suing to stop the $26.5 billion merger between the wireless carriers, arguing it would lead to higher prices. Timotheus Höttges, who is chairman of T-Mobile's board, testified that T-Mobile sought to merge with its smaller rival to increase scale and gain wireless spectrum, or airwaves that carry data, but denied the goal was to reduce competition.

  • Investors Who Bought Nabriva Therapeutics (NASDAQ:NBRV) Shares A Year Ago Are Now Down 11%
    Business
    Simply Wall St.

    Investors Who Bought Nabriva Therapeutics (NASDAQ:NBRV) Shares A Year Ago Are Now Down 11%

    It's easy to match the overall market return by buying an index fund. For example, the Nabriva Therapeutics plc (NASDAQ:NBRV) share price is down 11% in the last year. Nabriva Therapeutics may have better days ahead, of course; we've only looked at a one year period.

  • The Owens & Minor (NYSE:OMI) Share Price Is Down 79% So Some Shareholders Are Rather Upset
    Business
    Simply Wall St.

    The Owens & Minor (NYSE:OMI) Share Price Is Down 79% So Some Shareholders Are Rather Upset

    It's nice to see the Owens & Minor, Inc. (NYSE:OMI) share price up 14% in a week. The share price has sunk like a leaky ship, down 79% in that time. Owens & Minor isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS).

  • How Does Pason Systems Inc. (TSE:PSI) Fare As A Dividend Stock?
    Business
    Simply Wall St.

    How Does Pason Systems Inc. (TSE:PSI) Fare As A Dividend Stock?

    Pason Systems paid out 76% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. While the dividend was not well covered by profits, at least they were covered by free cash flow.

  • Macy’s pops despite Goldman lowering rating to sell
    Business
    Yahoo Finance Video

    Macy’s pops despite Goldman lowering rating to sell

    Macy's shares are popping, despite Goldman Sachs lowering their rating on the retailer. Goldman's analyst also slashed her price target on Macy's to $12 a share. Yahoo Finance's Seana Smith and Brian Sozzi discuss on The Ticker.

  • Here's What Trio-Tech International's (NYSEMKT:TRT) P/E Ratio Is Telling Us
    Business
    Simply Wall St.

    Here's What Trio-Tech International's (NYSEMKT:TRT) P/E Ratio Is Telling Us

    Of late the Trio-Tech International (NYSEMKT:TRT) share price has softened like an ice cream in the sun, melting a full . Assuming no other changes, a sharply higher share price makes a stock less attractive to potential buyers. While the market sentiment towards a stock is very changeable, in the long run, the share price will tend to move in the same direction as earnings per share.

  • Should You Buy TiVo Corporation (TIVO)?
    Business
    Insider Monkey

    Should You Buy TiVo Corporation (TIVO)?

    Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. Recent hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let's take a look at the hedge fund sentiment towards TiVo Corporation (NASDAQ:TIVO) to find out whether it was one of their high conviction long-term ideas.

  • AVGO Stock: Is It A Buy Right Now? Here's What Earnings, Broadcom Stock Chart Show
    Business
    Investor's Business Daily

    AVGO Stock: Is It A Buy Right Now? Here's What Earnings, Broadcom Stock Chart Show

    Broadcom recently closed on a nearly $11 billion acquisition of Symantec's Enterprise Security business to help drive the company's long-term earnings growth. The chip giant will report its latest quarterly results after the stock market close Thursday. Will this acquisition propel AVGO stock back above a new buy point in the current stock market uptrend?

  • Is The Michaels Companies Inc (MIK) Going To Burn These Hedge Funds ?
    Business
    Insider Monkey

    Is The Michaels Companies Inc (MIK) Going To Burn These Hedge Funds ?

    We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. This article will lay out and discuss the hedge fund and institutional investor sentiment towards The Michaels Companies Inc (NASDAQ:MIK). The Michaels Companies Inc (NASDAQ:MIK) has seen a decrease in activity from the world's largest hedge funds in recent months.

  • Do Hedge Funds Love Aimmune Therapeutics Inc (AIMT) ?
    Business
    Insider Monkey

    Do Hedge Funds Love Aimmune Therapeutics Inc (AIMT) ?

    That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Aimmune Therapeutics Inc (NASDAQ:AIMT). Aimmune Therapeutics Inc (NASDAQ:AIMT) was in 20 hedge funds' portfolios at the end of September. AIMT has experienced an increase in activity from the world's largest hedge funds lately.

  • Seth Klarman Pares Paratek Pharmaceuticals Stake
    Business
    GuruFocus.com

    Seth Klarman Pares Paratek Pharmaceuticals Stake

    Baupost Group leader Seth Klarman (Trades, Portfolio) revealed on Monday he trimmed his stake in Paratek Pharmaceuticals Inc. NASDAQ:PRTK) by 35.17%. The guru's Boston-based hedge fund manages about $24.7 billion in assets.

  • Did Hedge Funds Drop The Ball On Immunomedics, Inc. (IMMU) ?
    Business
    Insider Monkey

    Did Hedge Funds Drop The Ball On Immunomedics, Inc. (IMMU) ?

    IMMU was in 20 hedge funds' portfolios at the end of September. There were 21 hedge funds in our database with IMMU positions at the end of the previous quarter. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

  • Is Williams-Sonoma, Inc. (WSM) A Good Stock To Buy?
    Business
    Insider Monkey

    Is Williams-Sonoma, Inc. (WSM) A Good Stock To Buy?

    The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds' 2018 losses in Facebook and Apple. Let's take a closer look at what the funds we track think about Williams-Sonoma, Inc. (NYSE:WSM) in this article. Williams-Sonoma, Inc. (NYSE:WSM) was in 24 hedge funds' portfolios at the end of the third quarter of 2019.

  • Should You Buy Public Service Enterprise Group Incorporated (NYSE:PEG) For Its Dividend?
    Business
    Simply Wall St.

    Should You Buy Public Service Enterprise Group Incorporated (NYSE:PEG) For Its Dividend?

    Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 64% of Public Service Enterprise Group's profits were paid out as dividends in the last 12 months. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time.

  • Hedge Funds Are Crazy About TG Therapeutics Inc (TGTX)
    Business
    Insider Monkey

    Hedge Funds Are Crazy About TG Therapeutics Inc (TGTX)

    TG Therapeutics Inc (NASDAQ:TGTX) investors should pay attention to an increase in hedge fund sentiment in recent months. Our calculations also showed that TGTX isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.