BHP Group (NYSE:BHP) Bolsa

BHP Group

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

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AAUKF

BHP detiene su oferta de 49000 millones por Anglo American debido a costes elevados. Descubre cómo impacta esto al mercado del cobre global.

BHP pausa su oferta por Anglo American: ¿Qué significa para el mercado del cobre?

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

BHP Group Ltd

BHPCoin

BHPA Inc

BHP BILLITON LTD ORD by BHP Group Limited

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

Banco Hipotecario SA

On Tuesday, BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) reported half-year earnings (concluding on December 31, 2024) of $5.08 billion, down 23% from the year earlier. The result is unsurprising, as the <a target="_blank" href="https://www.benzinga.com/markets/commodities" rel="noreferrer noopener">iron ore market</a> has been going through a challenging period.
Still, CEO Mike Henry acknowledged the firm's strength in this part of the market cycle.
"The strength of the result demonstrates BHP's operational resilience and its ability to perform through the cycle," he <a target="_blank" href="https://www.bhp.com/investors/financial-results-operational-reviews" rel="noreferrer noopener">said</a> in a press release. Despite the downturn in iron ore prices, Henry highlighted strong performances at Escondida, Western Australia Iron Ore (WAIO), and BMA.
Iron ore EBITDA fell notably, from $9.7 billion in the first half of 2024 to $7.2 billion, as average realized prices declined by 22% to $81.11 per wet metric ton. While production increased by 1% to 131 million metric tons on an equity basis, the price slump led to an overall revenue drop of 7.5% to $25.176 billion.
Following these results, the board declared an interim dividend of $0.50 per share, down from $0.72 per share last year. The new dividend is the lowest payout since 2017.
BHP maintained its position as the world's lowest-cost iron ore producer, with unit costs at $18.19 per ton. However, the impact of Tropical Cyclone Zelia, which caused temporary shutdowns at Port Hedland and heavy rainfall across the&nbsp;Pilbara region, means that full-year WAIO output is now expected to fall towards the lower end of its guidance range of 282-294 million tons.
China's economic situation is the primary driving force behind the iron ore market. While early signs of recovery have emerged, demand remains uncertain due to the country's real estate struggles and slower industrial output.
Still, BHP remains confident about the long-term demand for iron ore as global urbanization and infrastructure growth continue, particularly in India, where economic expansion drives higher steel consumption.
Meanwhile, BHP has continued investing in its growth, spending $3.2 on the potash and copper project. After a <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 for </a><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">Anglo-American</a>, the firm formed a <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition" rel="noreferrer noopener">$2 billion joint venture</a> with Lundin Mining to develop the Filo del Sol and Josemaria copper projects, strengthening its output for the metal, which is growing in significance for electrification and renewable energy.
Henry also reflected on future M&amp;A, clarifying the management's stance. "In the current market, it is increasingly challenging to do large global M&amp;A for shareholder value, and that's what BHP is about at the end of the day," he noted.
Despite diversifying into other minerals, BHP remains committed to running a world-class iron ore business. The company aims to maintain WAIO production levels and potentially expand output to 305 million tons per year in the medium term, with an aspirational target of 330 million tons annually if market conditions permit.
Meanwhile, a remark from the U.S. Energy Secretary Chris Wright could open doors for new collaborations. "I would love to see Australia get in the game of supplying uranium," Wright said Monday at the Alliance for Responsible Citizenship event, <a href="https://www.reuters.com/business/energy/australia-should-supply-uranium-nuclear-power-says-us-energy-secretary-2025-02-17/" target="_blank" rel="noreferrer noopener">per</a> Reuters.
BHP owns Olympic Dam, the world's largest known uranium deposit. However, Australia's uranium industry has stagnated, with production banned in Western Australia and Queensland. Only three mines remain operational on the continent, and output has declined in recent years.
Still, the center-right Liberal Party has expressed <a target="_blank" href="https://www.benzinga.com/news/global/24/12/42482377/australian-opposition-goes-nuclear-211-billion-plan-could-open-doors-for-uranium-miners" rel="noreferrer noopener">support for nuclear energy</a> as a solution to Australia's electric power struggles. If they win the upcoming May elections, uranium production could receive a policy boost, helping BHP expand into this growing market.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43769507/chinas-metal-markets-are-stirring-heres-what-it-means-for-commodity-investors" target="_blank" rel="noreferrer noopener">China's Metal Markets Are Stirring &#8211; Here's What It Means for Commodity Investors</a></li>
</ul>
Photo via Shutterstock

Earnings

Guidance

Trading Ideas

BHP Earnings Fall As Iron Ore Prices Pressure Market Leader To Slash Dividend

BHP Group H1 Adj EPADS $2.00 Down From $2.59 YoY, Sales $25.18B Down From $27.23B YoY

<h3>Companies Reporting Before The Bell</h3>
<h3>Companies Reporting After The Bell</h3>
• Tennant (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TNC#NYSE">TNC</a>) is expected to report quarterly earnings at $1.37 per share on revenue of $323.27 million. 
• UFP Industries (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFPI#NASDAQ">UFPI</a>) is expected to report quarterly earnings at $1.24 per share on revenue of $1.43 billion. 
• Noble Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NE#NYSE">NE</a>) is estimated to report quarterly earnings at $0.65 per share on revenue of $874.53 million. 
• Otter Tail (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OTTR#NASDAQ">OTTR</a>) is projected to report quarterly earnings at $1.27 per share on revenue of $314.75 million. 
• Transocean (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIG#NYSE">RIG</a>) is likely to report quarterly earnings at $0.01 per share on revenue of $962.85 million. 
• BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) is projected to report earnings for its first quarter. 
• Huntsman (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUN#NYSE">HUN</a>) is projected to report quarterly loss at $0.07 per share on revenue of $1.46 billion. 
• JELD-WEN Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JELD#NYSE">JELD</a>) is estimated to report quarterly loss at $0.06 per share on revenue of $862.41 million. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

JELD

OTTR

UFPI

Earnings Scheduled For February 17, 2025

Oil and gold are the first things that come to mind when investors think about mining and exploration stocks, but the sector is far more diverse and expansive than just two commodities.
Coal, natural gas, construction materials like limestone, industrial metals like copper and aluminum, and even the lithium in our batteries, all come from mining companies.
However, mining operations consume immense amounts of time and capital expenditure, so mining companies tend to perform well during economic booms, and poorly during downturns.
As luck would have it, we have a strong economy, low inflation, and a new, business-friendly administration, all pointing to a very good year for mining stocks.
Here are four stocks that are well-positioned for growth through 2025.
<h2 class="wp-block-heading">Rio Tinto Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rio#NYSE">RIO</a>)</h2>
Rio Tinto Group is a diversified large-cap mining company with a $100 billion market cap and operations in numerous industrial metals and materials. Based in Melbourne, RIO trades on several global stock exchanges, including the FTSE, ASX, and the NYSE.
The company was named after the original mine it purchased from the Spanish government in 1871. Over time, RIO has become the world&#8217;s second-largest public mining company, focusing on iron ore, aluminum, copper/diamonds, and energy minerals (like uranium).
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="299" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165348/RIO-1024x299.png" alt="" class="wp-image-752215" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165348/RIO-1024x299.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165348/RIO-300x87.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165348/RIO-768x224.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165348/RIO.png 1293w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
RIO shares have a few tailwinds that could benefit investors in 2025. First, the company has been dropping unprofitable coal mining operations to improve efficiency and recently purchased Arcadium Lithium in a $6.7 billion deal to add more properties to its renewable energy portfolio (RIO is now the third largest lithium miner in the world).
Additionally, the company is said to be <a href="https://www.benzinga.com/25/01/43040137/rio-tinto-and-glencore-weigh-historic-merger-shaking-up-global-mining?adt_ei=%7B%7Bemail%7D%7D&amp;he=%7B%7Bemail%7D%7D&amp;el=ResearchDaily">pursuing a merger</a> with Glencore, which would create the largest combined mining company in the world. With demand for copper, aluminum, and lithium expected to increase as more electric infrastructure is built, RIO is set up to be a major beneficiary. The stock is a consensus Buy based on nine analysts covering the stock, and the average price target is $73, representing a 17% upside. Plus, that 7% dividend yield isn't too shabby, either.
[<a href="https://www.benzinga.com/premium/ideas/benzinga-edge/?utm_source=WebRD-0128&amp;el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}">Get a New, High-Potential Trade Every Morning</a>]
<h2 class="wp-block-heading">Constellium SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cstm#NYSE">CSTM</a>)</h2>
Constellium was part of Rio Tinto Group but was spun out in 2011 when the company sold its Alcan Engineered Products unit. Today, Constellium is a major manufacturer of aluminum and various related alloys with plants in North America, Asia, and Europe. Constellium is headquartered in Paris and employs over 12,000 full-time workers.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="298" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165355/CSTM-1024x298.png" alt="" class="wp-image-752216" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165355/CSTM-1024x298.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165355/CSTM-300x87.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165355/CSTM-768x223.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165355/CSTM.png 1300w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Compared to its former parent company, Constellium is small. The company has a mere $1.5 billion market cap and posted $1.6 billion in revenue last quarter, but it has a high-profile list of clients in the aerospace and automotive industries, including BMW, Mercedes-Benz, Audi, Boeing, and Airbus.
According to analyst reports, the stock is a consensus Buy with an average price target over $20, which would be nearly double the current market price. The company recently announced it's moving to US-based accounting principles (like filing 10K reports with the SEC), which could hint at potential expansion into new US markets. With defense spending expected to increase over the next decade, companies manufacturing lightweight and innovative aluminum products stand to reap the rewards.
<h2 class="wp-block-heading">Alcoa Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aa#NYSE">AA</a>)</h2>
Alcoa Corp. used to be a staple amongst Jim Cramer's most essential earnings calls and guidance reports. Still, the long-time aluminum producer has seen its market cap shrink from nearly $17 billion to just over $10 billion in the last three years.
Year-over-year revenue growth declined for seven consecutive quarters starting in Q3 2022, and 2023 full-year gross profit was a disappointing $738 million (down from $2.2 billion in 2022). However, the last two quarterly reports have shown that revenue is growing again, and the stock is positioned fundamentally and technically for a turnaround.&nbsp;
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="298" src="https://editorial.benzinga.com/wp-content/uploads/2025/01/AA -1024x298.png" alt="" class="wp-image-752217" /></figure>
Alcoa primarily produces aluminum and bauxite and operates in 10 countries, including the United States, Australia, Iceland, and several Caribbean nations. At its peak in the bull market in 2022, the stock traded near the $90 range.
Today, it sits around $40 and only has a Hold rating and a $43 price target based on 15 analyst reports. However, revenue growth has returned, and the stock's 200-day moving average could act as a support level for a continuing uptrend.&nbsp;
<h2 class="wp-block-heading">BHP Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>)</h2>
BHP is the world's largest mining company, with a market cap of over $125 billion and operations in materials like iron core, copper, zinc, gold, silver, uranium, and more. The company is based in Australia but has mines worldwide, including domestic operations in Queensland and Western Australia, plus international extraction sites in Canada, Brazil, and Chile.
BHP's copper operations are expected to be a main profit driver over the next few decades as the material is required for EV batteries, data center grids, and other electrification projects. The company expects copper demand to increase by 70% by 2050, and recent output from the Escondida mine in Chile has significantly boosted BHP's production.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="298" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165445/BHP-1024x298.png" alt="" class="wp-image-752219" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165445/BHP-1024x298.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165445/BHP-300x87.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165445/BHP-768x223.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/27165445/BHP.png 1300w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Additionally, the company has found another profit driver: potash! BHP has become one of the largest potash producers, a water-soluble potassium mineral commonly used in fertilizer. Based on coverage from eight different analysts, BHP shares are currently a consensus Buy, with an average price target of $67 (indicating a potential 34% upside from the current market price).
The valuation looks cheap with a 16.1 P/E ratio, and the stock also pays a hefty 5.8% dividend yield. BHP is also a serial M/A participant, and that type of business is expected to pick up under a merger-friendly Trump administration.
Simplify your strategy with a daily, carefully curated stock pick designed for profit potential, complete with expert analysis and actionable insights. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge/?utm_source=WebRD-0128&amp;el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}">Get My Trades.</a>
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Small Cap

Opinion

CSTM

4 Mining Stocks to Buy for a Booming 2025

Global mining leader BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) has temporarily abandoned its pursuit of Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTC">AAUKF</a>), one of the <a target="_blank" href="https://www.benzinga.com/topic/mergers-and-acquisitions" rel="noreferrer noopener">largest M&amp;A attempts</a> in 2024.
The Financial Times <a target="_blank" href="https://www.ft.com/content/3268df66-7ad7-4d54-aca0-c470b111ef9a" rel="noreferrer noopener">reported</a> that the Australian miner now views a deal as "too expensive," given Anglo's share price surge in recent months – as London-listed company shares rose 26% in the last 12 months, owing to restructuring efforts and favorable investor sentiment.
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">$49 billion bid</a> targeted Anglo's copper assets, particularly its stakes in the Collahuasi mine in Chile and the Quellaveco mine in Peru. These sites rank among the world's most significant copper reserves, with Collahuasi containing 3.93 billion tons of ore at 0.66% copper and Quellaveco holding 1.1 billion tons at 0.55% copper.
Anglo American responded with a swift restructuring, <a target="_blank" href="https://www.benzinga.com/24/11/42166102/anglo-american-sells-coal-portfolio-for-38-billion-continues-restructuring" rel="noreferrer noopener">selling its Australian coal assets</a> for $3.8 billion, spinning off its South African platinum operations, and working on Brazilian nickel asset divestments.
"If BHP were bidding what they thought was fair value, it is difficult to see why they would bid more now," remarked George Cheveley, fund manager at Ninety One.
BHP's interest in Anglo American stems from the rising demand for copper, a critical metal in the energy transition and digital infrastructure. The miner has projected that copper demand will increase sixfold by 2050, driven by electrification trends and the explosive growth of data centers. Data centers, in particular, are emerging as significant copper consumers, requiring the metal for power networks, cooling systems, and circuit boards.
An <a target="_blank" href="https://www.bhp.com/news/bhp-insights/2025/01/why-ai-tools-and-data-centres-are-driving-copper-demand" rel="noreferrer noopener">internal analysis</a> estimated that the copper used for data centers will grow from 500,000 tons annually to 3 million tons by 2050.
"Digital demand," as BHP describes it, includes copper use in data center construction, electricity generation, and power delivery infrastructure. The miner also anticipates global electricity consumption by data centers will rise from 2% of total electricity demand today to 9% by mid-century.
Despite not acquiring Anglo's copper assets, BHP still expanded its copper operation. Earlier this month, the company completed a <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition" rel="noreferrer noopener">$3 billion joint acquisition</a> of the Filo del Sol project in Argentina with Lundin Mining. The project in the Vicuña district holds a probable estimate of 2,22 million pounds of copper, 2,86 million ounces of gold, and 133,33 million ounces of silver.
Still, regardless of the firm's optimism about the metal, CEO Mike Henry has set tight criteria for further deals, clarifying that they have to create value and align with the company's long-term goals.
"There is no transaction that is a ‘must do' for BHP," he noted.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43013685/research-firms-and-industry-insiders-clash-copper-agree-on-trumps-risk" target="_blank" rel="noreferrer noopener">Research Firms And Industry Insiders Clash On Copper, Agree On Trump's Risk</a></li>
</ul>
Photo via Shutterstock

BHP's CEO Sees No 'Must Do' Transactions, Abandons Anglo American For Now

President Donald Trump&#8216;s revoking <a href="https://www.benzinga.com/markets/equities/25/01/43122855/trumps-plan-to-revoke-7500-ev-tax-credit-is-a-huge-negative-for-tesla-says-gary-black-downplays-impact-on-rivals">the $7,500 electric vehicle tax credit</a> hasn&#8217;t discouraged mining companies from continuing to source critical materials needed for EV manufacturing.
Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) CEO Jakob Stausholm, for example, remains optimistic about the global demand for lithium. Speaking at the World Economic Forum in Davos on Tuesday, Stausholm noted, &#8220;Lithium demand will probably go up another five times over the next 15 years.&#8221;
Stausholm also praised Trump&#8217;s greenlighting of the Resolution mine in Arizona. Resolution is a massive joint venture project with BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) that could become the biggest copper mine on the continent, the companies claim. 
&#8220;I do think that we have really good chances now to progress that project," he <a href="https://www.ft.com/content/a022764b-59a6-4292-bdee-6379d0200564">told</a> the Financial Times. The $64 billion project has an estimated life span of a 60-years. It&#8217;s expected to produce over 1 billion pounds of copper per year or around 25% of the U.S. needs.
Trump&#8217;s interest in Greenland is also said to go deeper than simply <a href="https://www.benzinga.com/markets/emerging-markets/25/01/43133508/trump-wants-to-buy-greenland-for-us-security">projecting power</a> on the global stage. The Denmark-owned island is home to 25 of the 34 critical metals (per the EU&#8217;s classification). Companies like Australia-based Energy Transition Minerals have already mapped over <a href="https://www.benzinga.com/news/global/25/01/42884764/how-trump-could-impact-chinas-role-in-emerging-greenland-mining-frontier">one billion tons of mineral resources</a>. This includes heavy rare earth metals like terbium, neodymium, dysprosium, and uranium.
As of January, Greenland <a href="https://www.economist.com/finance-and-economics/2024/10/31/greenland-faces-one-of-historys-great-resource-rushes-and-curses?utm_source=chatgpt.com">has</a> one active mine. In 2023, there were <a href="https://www.energymonitor.ai/sectors/industry/why-the-world-finds-itself-in-a-greenland-mining-rush/?utm_source=chatgpt.com">two</a>.
Another key focus of Trump's critical minerals strategy may be deep-sea mining. The Metals Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMC#NASDAQ">TMC</a>), a prospective deep-sea miner, plans to submit its first application to the International Seabed Authority (ISA) in June. 
The Vancouver, British Columbia-based company seeks approval to extract polymetallic nodules from the ocean floor. These nodules contain cobalt, nickel, and rare earth elements crucial for battery and electronics production.
TMC's application, with support from the Republic of Nauru, could face hurdles as ISA&#8217;s new Secretary-General, Leticia Carvalho, has touted sustainability and equity in deep-sea mining governance.
"Our mandate is both a privilege and a responsibility—to act in the interest of all humankind," Carvalho <a href="https://www.isa.org.jm/news/leticia-carvalho-assumes-role-as-secretary-general-of-the-international-seabed-authority/">said</a> after assuming the leadership role earlier this month.
Despite this, TMC remains undeterred. CFO Craig Shesky <a href="https://www.benzinga.com/government/24/08/40119611/exclusive-seabed-mining-company-execs-see-industry-developing-regardless-of-un-authority-vote">told</a> Benzinga last summer, &#8220;There&#8217;s nothing to stop [deep-sea mining] at this point. This is now inevitable.&#8221;
With Trump's administration favoring deregulation and resource independence, TMC may find a more conducive environment for advancing its ambitions.
Read Next: 
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<li><a href="https://www.benzinga.com/25/01/43124968/paladin-energy-soars-on-corporate-achievements-trumps-appetite-for-ai">Paladin Energy Soars On Corporate Achievements, Trump&#8217;s Appetite For AI</a></li>
</ul>
Image: Shutterstock

Government

Regulations

Legal

No EV Credits, No Problem: Mining Giants Still See Green In Trump Deregulation Push

WIIM

CRML

GOLD

MTRN

PAAS

RGLD

SBSW

SCCO

TECK

Shares of stocks in the broader metals and mining sector are trading higher in possible sympathy with Rio Tinto and Glencore who announced discussions regarding a potential merger, the largest in mining industry history.

BHP Group's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) short percent of float has fallen 16.67% since its last report. The company recently reported that it has 8.97 million shares sold short, which is 0.35% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.38 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>BHP Group Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1736541016_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for BHP Group has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing BHP Group's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, BHP Group's peer group average for short interest as a percentage of float is 5.86%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into BHP Group's Recent Short Interest

Jefferies analyst Christopher LeFemina maintains BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) with a Hold and lowers the price target from $57 to $53.

Price Target

Analyst Ratings

Jefferies Maintains Hold on BHP Group, Lowers Price Target to $53

BHP Group's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) short percent of float has fallen 4.55% since its last report. The company recently reported that it has 10.60 million shares sold short, which is 0.42% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.78 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>BHP Group Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1734961511_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for BHP Group has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing BHP Group's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, BHP Group's peer group average for short interest as a percentage of float is 4.64%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About BHP Group?

Shares of stocks in the broader metals and mining sector are trading lower amid overall market weakness following the Fed's rate decision to cut rates by 25 basis points.

BHP Group Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) faced a class action filed in Australia&#8217;s Federal <a target="_blank" href="https://www.sec.gov/Archives/edgar/data/811809/000119312524280788/d839550d6k.htm" rel="noreferrer noopener">Court </a>alleging sexual harassment and sex discrimination.
The claim represents all women who worked at BHP&#8217;s Australian workplaces between November 12, 2003, and March 11, 2024, and were affected by the alleged conduct.
The case is in its early stages, with no specified damages sought. BHP emphasizes its zero-tolerance policy for harassment and prioritizes the safety and well-being of its people.
This claim against BHP follows a recent report from rival Rio Tinto, which revealed an increase in employee reports of attempted sexual assault or rape at its operations over the past two years, despite measures to address such behavior, <a target="_blank" href="https://www.ft.com/content/b09156c9-6e9e-4a9c-ad9a-8a0d7d6ad220" rel="noreferrer noopener">reported </a>Financial Times.
A 2022 Rio Tinto report revealed that 21 women had reported experiencing actual or attempted rape or sexual assault over five years.
According to the report, BHP disclosed in 2021 during a parliamentary inquiry in Western Australia that it had terminated 48 employees for sexual harassment at its &#8220;fly-in, fly-out&#8221; mines since 2019, including six confirmed cases of sexual assault.
Investors can gain exposure to the stock via Exchange Traded Concepts Trust Optica Rare Earths &amp; Critical Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRIT#NYSE">CRIT</a>) and VanEck Natural Resources ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAP#NYSE">HAP</a>).
Price Action: BHP shares are down 0.47% at $50.76 at the last check Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com/news/global/24/12/42482377/australian-opposition-goes-nuclear-211-billion-plan-could-open-doors-for-uranium-miners" target="_blank" rel="noreferrer noopener">Australian Opposition Goes Nuclear, $211 Billion Plan Could Open Doors For Uranium Miners</a></li>
</ul>
Photo by Vitalii Vodolazskyi on Shutterstock.

Equities

Media

Exchange Traded Concepts Trust Optica Rare Earths & Critical Materials ETF

CRIT

Market Vectors RVE Hard Assets Producers ETF

BHP Accused of Workplace Harassment and Discrimination in Australia In Class Action Lawsuit

The claim is brought on behalf of all women who worked at BHP's Australian workplaces at any time during the period 12&nbsp;November 2003 to 11&nbsp;March 2024 who were impacted by the alleged conduct.
The proceeding is at a preliminary stage and the amount of damages sought is unspecified.

BHP Says Served With A Representative Class Action Proceeding Filed In Federal Court Of Australia Regarding Allegations Of Sexual Harassment And Sex Discrimination - Filing

Australia's main opposition has proposed a $211 billion taxpayer-funded nuclear power plan. If successful, the turn to nuclear power would be a historic event for one of the largest <a target="_blank" href="https://www.benzinga.com/markets/commodities" rel="noreferrer noopener">global commodity producers</a>.
"Nuclear power will underpin the economic success of our country for the next century. This will make electricity reliable. It will make it more consistent. It will make it cheaper for Australians, and it will help us decarbonize," Peter Dutton, leader of the center-right Liberal Party, said <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-13/australia-s-opposition-reveals-211-billion-nuclear-power-plan" rel="noreferrer noopener">per</a> Bloomberg's report.
The country's approach to climate change has been politically charged, contributing to the downfall of former Prime Minister Scott Morrison in 2022. Australia remains one of the largest per-capita polluters globally, and Dutton's proposal directly challenges the ruling Labor Party's renewables-only strategy.
He called Labor's plan costly, citing claims that a balanced energy mix, including nuclear, would save taxpayers and businesses $167 billion. Australia has no operational nuclear power plants, as the industry was banned in 1998 under the Environment Protection and Biodiversity Conservation Act.&nbsp;
Despite Australia's position as the world's fourth-largest producer and holder of <a target="_blank" href="https://minerals.org.au/about/mining-facts/mineral-uranium/" rel="noreferrer noopener">one-third of global reserves</a>, uranium mining remains banned in Western Australia and Queensland. These restrictions persist even as the Minerals Council of Australia <a target="_blank" href="https://www.benzinga.com/government/24/08/40182376/uranium-explorers-call-for-lifting-mining-ban-in-western-australia-target-1b-in-exports" rel="noreferrer noopener">advocates for lifting bans</a> to help meet global clean energy demand.
Currently, the active uranium mining operations exist at just 3 locations:
<ul>
<li>Olympic Dam – the largest known deposit in the world, owned by BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>)</li>
<li>Four Mile &#8211; a high-grade mine owned by Quasar Resources.</li>
<li>Ranger (Northern Territory) &#8211; controlled by Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>), but at the end of its lifespan.</li>
</ul>
Dutton's plan includes constructing seven nuclear power plants by 2050, with the first operational by 2036. If it goes through, it would be reasonable to expect the removal of mining restrictions, presenting opportunities for domestic and foreign uranium explorers. If Western Australia lifts the mining ban, operators like Toro Energy and Paladin Energy could pursue <a target="_blank" href="https://www.dmp.wa.gov.au/Uranium-1459.aspx" rel="noreferrer noopener">multiple regional projects</a>.
The largest publicly traded uranium producer, Cameco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCJ#NYSE">CCJ</a>), owns the Yeelirrie project in the region, which it acquired from BHP in 2012.
Volatile energy costs in Australia have been an issue exaggerated by significant regional disparities. In October, The Guardian <a target="_blank" href="https://www.theguardian.com/australia-news/2024/oct/18/energy-prices-soar-after-volatile-wind-saw-heavier-gas-hydro-and-battery-use-australian-regulator-says" rel="noreferrer noopener">reported</a> a price of $114/MWh in Queensland compared to $201/MWh in South Australia, as high transmission costs can constitute 40% of an energy bill.
A network of strategically placed nuclear power plants would help solve this problem, reducing the cost of commodity production and further strengthening the Australian industry. As the 2025 general elections draw closer, nuclear power and uranium mining will likely become important topics down under.
Read Next:
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<li><a href="https://www.benzinga.com/24/12/42433867/lithium-producers-brace-for-prolonged-oversupply-stalled-prices" target="_blank" rel="noreferrer noopener">Lithium Producers Brace For Prolonged Oversupply, Stalled Prices</a></li>
</ul>
Photo by metamorworks via Shutterstock

Global

iShares MSCI New Zealand Investable Market Index Fund

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FLAU

Australian Opposition Goes Nuclear, $211 Billion Plan Could Open Doors For Uranium Miners

Shares of copper companies are trading higher in possible reaction to China signaling looser monetary policy, which could support demand.

The U.S. division of Stoli Group hopes to get a deal under <a href="https://www.benzinga.com/topic/bankruptcy">Chapter 11 bankruptcy protection</a>. 
The company applied on Nov. 27 to the U.S. Bankruptcy Court in the Northern District of Texas. 
Stoli Group USA, based in New York, and Kentucky Owl American whiskey business plan to restructure all assets, valued up to $500 million. See below. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Stoli Group USA Files Chapter 11 with Up to $500M in Assets, Affiliate Kentucky Owl Joins Restructuring BANKRUPTCY FILING ALERT &#x1f6a8; Stoli Group (USA), LLC Chapter 11 &#8211; Northern District of Texas Filed: 11/27/2024 Case No. 24-80146 &#x1f4ca; Assets: $100M-$500M &#x7C; Liabilities:… <a href="https://t.co/TSZG8Hcd3e">pic.twitter.com/TSZG8Hcd3e</a>
&mdash; RK &#x7C; Consultants (@_RKConsultants) <a href="https://twitter.com/_RKConsultants/status/1861924768653390088?ref_src=twsrc%5Etfw">November 28, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h3 class="wp-block-heading">New On The Block</h3>
<ul>
<li>Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) is auctioning off its credit card unit after just three years of ownership, per <a href="https://www.bloomberg.com/news/articles/2024-11-22/ally-financial-is-said-to-weigh-sale-of-credit-card-business?srnd=phx-deals">Bloomberg</a>. The Detroit-based auto lender acquired the segment in 2021 for $750 million. </li>
<li>D.W. Shaw hired Alantra Partners to run the sale process for its Spanish non-performing loans and real estate assets, <a href="https://www.bloomberg.com/news/articles/2024-11-22/d-e-shaw-is-seeking-to-sell-400-million-in-spanish-assets?srnd=phx-deals">Bloomberg</a> reports. The value of the portfolio is roughly €380 million (US$402 million). </li>
<li>Mumbai-based Edelweiss Financial Services of India hired Nomura to find a buyer for a minority stake in its mutual fund business, which could have a total valuation of $700 million to $800 million, according to <a href="https://economictimes.indiatimes.com/mf/mf-news/edelweiss-hires-nomura-for-mutual-fund-unit-stake-sale/articleshow/115646343.cms?from=mdr">the Economic Times</a>.</li>
</ul>
See Also: <a href="https://www.benzinga.com/news/large-cap/24/11/42249801/fridays-top-5-trending-stocks-whats-going-on-with-smci-nvidia-microstrategy">Friday&#8217;s Top 5 Trending Stocks: What&#8217;s Going On With SMCI, Nvidia, MicroStrategy?</a>
<h3 class="wp-block-heading">Updates From The Block</h3>
<ul>
<li>The Container Store has been unable to ink a deal or find financing. According to <a href="https://www.cnn.com/2024/11/29/business/the-container-store-black-friday-shopping/index.html">CNN</a>, the Coppell, Texas-based company — known for selling bins — hoped for a $40 million financial lifeline from Beyond, the owner of Bed Bath &amp; Beyond and Overstock.com. But, the agreement hasn&#8217;t worked out and now the franchise is on the verge of bankruptcy, although it hasn&#8217;t filed yet. </li>
</ul>
<ul>
<li>Anglo American&nbsp;(LSE: AAL) agreed to sell its Australian steelmaking coal mines to Peabody Energy&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTU#NYSE">BTU</a>) <a href="https://www.benzinga.com/24/11/42166102/anglo-american-sells-coal-portfolio-for-38-billion-continues-restructuring">for about $3.8 billion</a>. This comes just days before mining giant BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) is allowed to renew its takeover efforts for Anglo American.</li>
</ul>
<ul>
<li>Acquisition-hungry UniCredit (Milan: UCG) offered to acquire Italian lender Banco BPM (Milan: BAMI). The €10 billion offer was rejected, according to <a href="https://www.axios.com/2024/11/25/unicredit-italian-bank?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=newsletter_axiosprorata&amp;stream=top">Axios</a>. UniCredit also wants to buy Germany-based Commerzbank.</li>
</ul>
<ul>
<li>Gold miner Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) sold its Éléonore mine in Quebec Tuesday to London-based Dhilmar <a href="https://www.benzinga.com/news/asset-sales/24/11/42202141/newmont-sells-mine-for-795-million-barrick-expands-reserves-top-miners-unfazed-by-underperformance">for $795 million in cash</a>. The sale follows Newmont's strategy to divest non-core assets following its milestone acquisition of Newcrest Mining in 2023. </li>
</ul>
<ul>
<li>Schneider National, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNDR#NYSE">SNDR</a>) disclosed that it has agreed to acquire Cowan Systems, LLC and its affiliates for approximately <a href="https://www.benzinga.com/news/mid-cap/24/11/42170700/schneider-expands-its-fleet-390-million-cowan-systems-deal-supercharges-dedicated-services">$390 million in cash</a>, subject to adjustments. The deal also includes a separate purchase of related real estate assets for $31 million. </li>
</ul>
For last week&#8217;s Deal Dispatch, <a href="https://www.benzinga.com/markets/commodities/24/11/42147945/deal-dispatch-starbucks-considers-china-sale-private-equity-bankrupts-snack-company-darwin-financial-talks-mining">click here</a>.
Now Read: 
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<li>Trump&#8217;s Proposed Tariffs Target Mexico, Canada, US Automakers; Wall Street Shrugs Off Concerns, Soars To Record Highs: This Week In The Markets</li>
</ul>
Image: Benzinga

Asset Sales

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BERY

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Deal Dispatch: Stoli On The Rocks As US Business Goes Bankrupt, Ally Financial To Sell Credit Card Unit

As the world hurtles toward an electrified future, the copper market <a href="https://www.benzinga.com/topic/copper">stands at a crossroads</a>. 
Insights from JPMorgan analysts Patrick Jones, Greg Shearer and Bill Peterson paint a complex picture: short-term hurdles for copper prices, but a glittering long-term outlook driven by electric vehicles and evolving supply dynamics.
This could seem as good news for those invested in United States Copper Index Fund ETV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPER#NYSE">CPER</a>), Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>), iShares Copper and Metals Mining ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICOP#NASDAQ">ICOP</a>) for the long-term.
<h2 class="wp-block-heading">EV Boom: Supercharging Copper Demand</h2>
The electric vehicle revolution is set to electrify copper demand. JPMorgan predicts copper usage in EVs will more than double from 1.4 million metric tons in 2023 to 3 million by 2030. While some worry that technological advances like thinner copper anode foils could dampen demand, the analysts argue otherwise. 
Larger EV sizes and a pivot toward lithium-iron-phosphate (LFP) batteries — which are more copper-intensive — are expected to drive long-term growth.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41337566/trump-2-0-trade-policies-could-hit-copper-stocks-harder-warns-jpmorgan-analyst">Trump 2.0 Trade Policies Could Hit Copper Stocks Harder, Warns JPMorgan Analyst</a>
<h2 class="wp-block-heading">New Technologies: Leaching A Lifeline?</h2>
Leaching technologies are generating buzz, but can they revolutionize copper supply? Not yet, say the analysts. While projects from major miners like Freeport-McMoRan Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) and BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) are on the horizon, these advancements are unlikely to offset supply declines before 2030.
At best, leaching could add 550,000 metric tons annually, just 2% of global supply.
<h2 class="wp-block-heading">Scrap &amp; Recycling: The Unsung Hero?</h2>
Recycling is a crucial cog in the copper machine, accounting for about 17% of refined supply in 2024, up from 14% in 2020. JPMorgan forecasts scrap supply will grow by 5-6% annually, faster than historical rates, yet insufficient to bridge the long-term deficit. Recycling alone won't solve copper's supply crunch.
<h2 class="wp-block-heading">Near-Term Risks, Long-Term Rewards</h2>
JPMorgan warns of near-term risks from macroeconomic pressures, particularly a potential devaluation of the Chinese yuan to 7.8 to 8.0 per U.S. dollar. This could lead to a 12-15% dip in copper prices, presenting headwinds for equities. However, the analysts remain bullish on the long-term trajectory, underpinned by a looming supply-demand gap.
Their picks? 
Lundin Mining Corp (OTCPK: LUNMF) leads in EMEA, while Teck Resources Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) tops the Americas. Asia-Pacific favorites include Zijin Mining and Merdeka Copper, with caution advised on Jiangxi Copper and Sandfire Resources.
Read Next: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41877899/trump-re-election-jolts-metals-market-as-gold-sees-a-stumble-not-a-sea-change">Trump Re-Election Jolts Metals Market As Gold Sees A &#8216;Stumble, Not A Sea Change&#8217;</a></li>
</ul>
Image: Shutterstock

Long Ideas

Specialty ETFs

ETFs

COPX

CPER

ICOP

LUNMF

Copper's High-Wire Act: Can EVs, New Tech Power The Metal's Next Big Surge?

On CNBC's &#8220;Mad Money Lightning Round,&#8221; Jim Cramer recommended buying BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), adding that it's a &#8220;very <a href="https://www.benzinga.com/24/11/42084529/bhp-unveils-14-billion-capex-for-chilean-copper-operations">well-run&#8221; company.</a>
On Nov. 20, BHP announced plans to invest up to $14 billion to enhance its copper production in Chile, as revealed during a three-day site tour of its operations. This substantial capital expenditure aims to secure the long-term future of its assets in the region and support the growing global demand for copper.
Cramer said Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) is a buy.
On Nov. 4, Diamondback Energy reported quarterly earnings of $3.38 per share, which missed the analyst consensus estimate of $3.99 per share. The company reported quarterly sales of $2.65 billion which beat the analyst consensus estimate of $2.44 billion.
When asked about AMC Entertainment (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>), he said, &#8220;If it gets to six, I want you to sell it. Period. End of story.&#8221;
On Nov. 12, the company disclosed a debt retirement move in a SEC filing. The company said it entered into a series of privately negotiated agreements to retire $24.22 million in unsecured debt through 5.75% subordinated notes due 2025 <a href="https://www.benzinga.com/trading-ideas/movers/24/11/41952040/amc-entertainment-shares-are-on-the-rise-today-whats-going-on">between Nov. 8 and Nov. 12</a>.
Copart, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>) is a &#8220;remarkable&#8221; company, Cramer said. &#8220;I need to see a pullback in Copart.&#8221;
On Nov. 21, Copart reported better-than-expected sales results for the first quarter.
Price Action:
<ul>
<li>BHP Group shares gained 0.7% to settle at $52.36 on Friday.</li>
<li>Diamondback Energy shares gained 1.4% to close at $185.29.</li>
<li>AMC Entertainment shares gained 1.3% to close at $4.55.</li>
<li>Copart shares jumped 10.2% to settle at $62.70 during the session.</li>
</ul>
Read Next: 
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<li><a href="https://www.benzinga.com/24/11/42137942/jim-cramer-says-this-stock-is-a-bitcoin-play-and-he-prefers-to-own-bitcoin">Jim Cramer Says This Stock Is A Bitcoin Play And He Prefers To Own Bitcoin</a></li>
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CPRT

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Jim Cramer: Copart Is 'Remarkable,' BHP Is 'Well-Run,' Buy This Energy Stock

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.
Read Next:
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<li><a href="https://www.benzinga.com/24/11/42084529/bhp-unveils-14-billion-capex-for-chilean-copper-operations" target="_blank" rel="noreferrer noopener">BHP Unveils $14 Billion Capex For Chilean Copper Operations</a></li>
</ul>
Photo via Shutterstock

Emerging Markets

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Mexico's Increased Mining Royalties Could Deter $7 Billion In Foreign Investments

BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) has announced plans to invest up to $14 billion to enhance its copper production in Chile, as revealed during a three-day site tour of its operations. This substantial capital expenditure aims to secure the long-term future of its assets in the region and support the growing global demand for <a target="_blank" href="https://www.benzinga.com/topic/copper" rel="noreferrer noopener">copper</a>.
Brandon Craig, President of BHP's Minerals Americas business, <a target="_blank" href="https://www.bhp.com/investors/presentations-events/presentations-and-briefings" rel="noreferrer noopener">noted</a> the significance of the company's Chilean operations.
"BHP has the largest contained copper resource globally, and almost half of that is in Chile. Our 30 billion tons of total copper resources in Chile could support almost seven years of global demand. And this excludes our share of Filo del Sol, Josemaria, Antamina, and Resolution," he said.
This capex cycle will focus on the Escondida mine, the world's largest copper operation. BHP plans to allocate $7.3 billion to $9.8 billion to offset ore grade declines and prepare for the closure of the Los Colorados plant in 2029.
The construction of a new concentrator at Escondida, set to produce between 220,000 and 260,000 tons annually starting in 2031/32, will require $4.4 billion to $5.9 billion. Additional projects include expanding the Laguna Seca plant and introducing new leaching facilities, which should add up to 125,000 tons annually, starting in 2030.
Beyond Escondida, an investment of $2.8 billion to $3.9 billion should boost Pampa Norte, which includes the Spence and Cerro Colorado mines. Utilizing supergene leaching techniques, the restart of Cerro Colorado alone could contribute up to 100,000 tons annually.
These efforts are part of a broader strategy to stabilize BHP's total copper output at around 1.4 million tons per year by 2031, particularly after the company failed to realize a $49 billion Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTC">AAUKF</a>) acquisition <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">earlier this year</a>.
BMO's analyst Alexander Pearce said that the total planned copper addition exceeded market expectations, and the associated costs were less than feared. In a note, he described much of the expenditure as "sustaining capital to offset grade decline."
BHP's increased focus on copper reflects the metal's critical role in the global energy transition and the rise of electric vehicles, both of which are driving copper demand for wiring and components. The company estimates an additional one million tons of copper will be required annually until 2035, with demand expected to surge by 70% by 2050.
Despite its ambitious plans, BHP's Chilean operations face challenges. Alexis Barrera, union president at Minera Escondida, criticized the company for alleged labor law violations, citing a recent case involving a dismissed worker on medical leave.
"We are asking BHP to stop violating Chilean labor laws and abusing the company's dismissal system," Barrera<a target="_blank" href="https://www.bnamericas.com/en/features/bhp-plans-to-boost-chile-copper-production-amid-labor-unrest" rel="noreferrer noopener"> stated</a> for bnamericas, noting concerns about women on maternity leave being unfairly affected.
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