Coal Archives - Page 8 of 45

(Bloomberg) — Women still face a threat to their safety at remote mine sites across the globe.

It’s a challenge the industry is grappling with after BHP Group, the world’s biggest miner, lifted the lid on a male-dominated culture in which sexual harassment is rife.

The company has fired 48 workers at its sites in Western Australia since July 2019 after verifying allegations of harassment, BHP said in a submission to a state inquiry. The Melbourne-based company said it had also received two substantiated allegations of rape, with further cases still under investigation. Rio Tinto Group, in its submission, said it had received 29 confirmed reports of harassment at its Pilbara iron ore operations since Jan. 2020 and one case of sexual assault.

While harassment is a problem in workplaces around the world, isolated mines can be especially risky for women. They remain largely male-dominated, with fly-in, fly-out (FIFO) workers living in camp-style accommodation that blurs the line between work and social life. Add excessive alcohol consumption into the mix, and inappropriate behavior often follows.

“Mining was made by and for men,” Fiona Vines, BHP’s head of diversity and inclusion, said in a phone interview earlier this month. “Now we’re introducing women into that setting and we have to fundamentally change it to make it safe in the first instance, and then comfortable and appealing.”

Western Australia’s parliament in July announced an inquiry into sexual harassment in the FIFO mining industry following a spate of allegations. Miners including BHP and Rio say the increase in reports shows their efforts to make women more confident about speaking out is paying off. Still, other submissions to the inquiry suggest the problem is an endemic one.

Nearly 23% of women in the industry have experienced physical acts of sexual assault, according to a survey by union body Western Mineworkers Alliance. Just four in 10 women FIFO workers said staff are encouraged to report sexual harassment and half said workers are not supported through the reporting process, WMWA noted in its submission to the inquiry.

To be sure, toxic male attitudes are not just a problem in Australia. In Chile, where BHP has major copper operations, the company has had to work hard to overcome traditional perceptions of women’s role in society, Vines said. Hiring more women in the South American country was a challenge in itself, although gains were being made including the first female general manager of a mine.

BHP is taking a wide range of steps to combat harassment at its global operations, including tighter security, limits on alcohol consumption, and education programs for its workers. Vines stressed the importance of changing the attitudes that underpin bad behavior, in part by improving the diversity of its workforce. The company has increased the percentage of women employees to nearly 30%, from 17.6% in 2016, and is targeting gender parity by 2025.

“Male-dominated environments are not normal, they’re not natural, they’re not healthy,” said Vines. “Let’s get to gender balance, because when you’ve got 50% women and 50% men this stuff just doesn’t happen as much.”

(Adds detail from Rio Tinto in paragraph three, Chile in paragraph eight)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

(Bloomberg) — The race to supply automakers with nickel to power their batteries is pitting two of the biggest names in mining against each other.

A company owned by Australian iron ore billionaire Andrew Forrest signaled its refusal to back down after a proposal to buy Canadian nickel developer Noront Resources Ltd. was trumped by the world’s biggest miner, BHP Group. And Forrest has been busy back home too: Australian nickel producer Western Areas Ltd. — which announced this week it’s in takeover talks with a local rival — revealed Friday the tycoon has become a substantial shareholder.

Nickel, traditionally used to make stainless steel, is taking center stage in the mining industry’s push into the booming battery metal space. A key component in lithium-ion batteries, it’s a favorite talking point of Elon Musk, who appealed to producers last year to “please mine more nickel.” The metal packs more energy into batteries and allows producers to reduce use of cobalt, which is more expensive and has a less transparent supply chain.

The fight over nickel mines comes at a pivotal time for the industry. Plans by China’s Tsingshan Holding Group to make battery-grade metal from materials previously reserved only for stainless steel have sparked fears of a market flood. Yet some analysts and investors have questioned whether the process will be accepted by increasingly eco-conscious automakers.

For BHP, the focus on nickel represents a sharp turnaround from less than a decade ago. The company had planned to exit the nickel business to focus on other commodities, and put its Nickel West unit in Australia up for sale in 2014. Today, BHP has identified the metal as one of its priority “future facing” commodities as the company shifts away from fossil fuels.

Last month, it announced that it’s signed a nickel-supply deal with Tesla Inc. to sell metal from Nickel West. And a week later, it announced a $260 million offer to gain control of Noront’s rich nickel and copper deposit, with the backing of the smaller company’s board.

Forrest’s Wyloo Metals Pty Ltd., which has amassed a stake of about 25% of Noront and holds a convertible loan, said Thursday it will refuse to sell its shares to BHP, setting the businessman up as a future — and potentially difficult — partner. He also suggested he could return with an increased competing offer if Noront were prepared to open its books for due diligence. (Noront retorted Friday it’s already offered to do so if Wyloo signs a confidentiality pact.)

It’s not clear what Forrest’s plans are for the Western Areas investment. But he’s got a track record of getting under the feet of established players — he made his fortune taking on BHP in Western Australia, when his Fortescue Metal Group burst on to the scene during the height of the last commodity super cycle. Since then, he’s created an iron ore giant to challenge the traditional Australian duopoly of BHP and Rio Tinto Group.

Forrest has long signaled he’s interested in battery metals and has expressed ambitions to get into the business for at least half a decade. In fact, he got his start in mining in nickel, working at Anaconda Nickel where he was developing the Murrin Murrin mine in Australia before being ousted in 2001.

“While Fortescue Metals is an iron ore miner, the very name tells us that he always had bigger plans,” said Tom Price, head of commodities strategy at Liberum Capital.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

(Bloomberg) — A small Canadian nickel miner reiterated support for takeover by BHP Group after its largest shareholder, Australian mining magnate Andrew Forrest, tried snubbing the deal.

Noront Resources Ltd. said Friday in a statement that its board continues to recommend that shareholders accept BHP’s cash offer that values the company at C$325 million ($254 million), a day after Forrest’s Wyloo Metals Pty Ltd. said it wouldn’t sell its shares to the world’s largest miner. Wyloo Metals, which owns about 25% of Noront and holds a convertible loan that could lift its control to 37%, said it would consider making a superior offer.

The wrangle over the Toronto-based minerals explorer highlights a race among mining heavyweights to control supplies of raw materials that are key to a clean energy future. Noront has been developing one of Canada’s largest potential mineral reserves, in a largely untapped northern Ontario region dubbed the Ring of Fire. The high-grade nickel deposit also has chromite, copper and zinc. Nickel is one of the key metals used in batteries for electric vehicles.

Noront, whose main asset is the Eagle’s Nest nickel-and-copper deposit in the Ontario region, said success of BHP’s offer doesn’t require Wyloo’s support, according to the statement. Noront shares fell 4.8% to 50 Canadian cents at 10:56 a.m. trading in Toronto, below BHP’s 55-cent-a-share offer made July 27.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

MELBOURNE, Aug 20 (Reuters) – BHP Group fired 48 staff in the two years to the end of June for sexual harassment, it told a Western Australian government inquiry investigating such incidents at mining camps in the mineral-rich state.

The government probe comes as the sector struggles with a dire skills shortage and low female representation.

BHP received four rape allegations, one allegation of attempted rape and other reports of unwanted sexual touching, in addition to 73 substantiated reports of sexual harassment from June 2019 to June 2021, it said in a submission.

Two rape allegations were substantiated, investigation for one was continuing and one was not substantiated, it said in the report, which outlined sweeping measures to reduce such incidents.

That includes $300 million to increase camp security by improving its training and workforce vetting practices, making reporting of incidents easier, and ensuring its contractors abide by those rules.

Other major miners including Rio Tinto Fortescue , unions and interest groups have also made submissions to the enquiry, which will make recommendations to West Australia's parliament in April 2022. (Reporting by Melanie Burton. Editing by Gerry Doyle)

By Carolina Mandl and Marta Nogueira

SAO PAULO/RIO DE JANEIRO (Reuters) – Brazilian prosecutors asked a bankruptcy court on Wednesday to compel miners Vale SA and BHP Group Ltd to fully pay off their Samarco joint venture's 50.7 billion reais ($9.47 billion) debt, according to a court document reviewed by Reuters.

Samarco filed for bankruptcy protection in April as it struggled to restructure its debt, which it stopped servicing after a dam burst at a mine in 2015, killing 19 people, releasing a giant torrent of sludge and halting production.

Prosecutors consider Samarco's co-owners to be responsible for the disaster and are seeking a restraining order that would oblige them to cover its debt, according to the document.

The prosecutors said both controlling shareholders used Samarco to obtain immediate gains amid an iron-ore price boom, which they say precipitated the dam's collapse.

"They chose to put at risk the lives of people who lived and worked there, as well as the environment, causing tragic consequences and incalculable damages," they wrote.

Vale said in a securities filing it was surprised by the prosecutors' request.

"The request attacks the clear letter of the agreements signed between the parties, to which the MPMG (prosecutors from Minas Gerais state) is a signatory, in addition to threatening the ongoing discussions and efforts to renegotiate the reparation measures for damage resulting from the Fundão dam collapse," the company said.

BHP said in a statement the bankruptcy protection request was the best solution it found to allow Samarco to recover financially.

($1 = 5.3543 reais)

(Reporting by Carolina Mandl in Sao Paulo and Marta Nogueira in Rio de Janeiro; Editing by Christian Plumb and Peter Cooney)

(Bloomberg) — Iron ore extended its rout as BHP Group warned it sees an increasing likelihood of “stern cuts” to China’s steel output this year.

The prospect of much lower steel production in the second-half is “testing the bullish resolve of the futures markets,” BHP wrote in a commodities outlook report on its website. Iron ore in Singapore has plunged by a third since spiking to an all-time high in May.

China’s steel industry is under pressure after pledging to reduce output this year, a goal that requires huge second-half curbs to offset booming output earlier in 2021. Production in July was more than 8% lower year-on-year, data on Monday showed.

Futures in Singapore fell 6.5% to $147.95 a ton by 6:49 p.m. local time, and were heading for a fifth weekly loss. In China, futures dropped 2.5% to close at the lowest level since November.

While investor attention is very focused on China’s output curbs in the second half, the nation’s demand trends will also be critical. Beijing is pushing a range of measures to control the property sector, which accounts for big chunk of steel usage and has traditionally helped drive surges in iron ore prices.

“Policymakers are clearly concerned about over-investment and concentrated credit risk in the property sector,” Commonwealth Bank of Australia wrote in an emailed note. And even if China swings to more pro-growth policies to battle recent weakness, “there’s a good chance that the property sector is left out”.

Shanghai steel futures also dropped, with hot-rolled coil down 3.3% and rebar down 3.8%.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

BHP Group BHP reported underlying attributable profit of $17.1 billion in the fiscal 2021 (ended Jun 30, 2021), which was up 88% year over year, reflecting higher commodity prices and strong operational performance. Earnings per American Depositary Share (ADS) was $6.75 in fiscal 2021, up from $3.58 in fiscal 2020 but missed the Zacks Consensus Estimate of $6.93. Underlying earnings per share was $3.38, compared with $1.79 in fiscal 2020. The company’s each American Depositary Shares represents two fully-paid ordinary shares. It also made a flurry of announcements — to exit its oil and gas operations as it strikes a merger deal with Woodside Petroleum Ltd, approval of $5.7 billion in capital expenditure in Jansen Potash Mine in Canada and its decision to unify its dual-listed structure.

The company’s attributable profit amounted to $11.3 billion in fiscal 2021, including an exceptional loss of $5.8 billion. The exceptional loss was related to the impairments of potash and energy coal assets as well as the current year impact of the Samarco dam failure. Attributable profit in fiscal 2020 was $7.9 billion, which included an exceptional loss of $1.1 billion.

Revenues & Margin Performance

Revenues for fiscal 2021 totaled $60.8 billion, which beat the Zacks Consensus Estimate of $60.2 billion. It marked an improvement of 42%from revenues of $42.9 billion in the prior fiscal. The Iron ore segment’s revenues surged 66% year over year to $34 billion on higher prices and record production achieved at WAIO. Revenues in the Copper segment rose 47% to $15.7 billion, reflecting higher prices. Revenues in the Petroleum fell 3% year over year to $3.9 billion. The Coal segment’s revenues slumped 17% to $5 billion.

Adjusted profit from operations in fiscal 2021 soared 91% year over year to $30.3 billion owing to higher commodity prices and strong underlying operational performance, lower deferred stripping depletion at Escondida, lessened fuel and energy costs, and savings from the company’s cost reduction initiatives. Unfavorable impacts of exchange rate movements, copper grade decline, natural field decline in Petroleum, inflation, adverse weather and planned maintenance somewhat mitigated these impacts. Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) were $37.4 billion for fiscal 2021, up 69% year over year.

Balance Sheet & Cash Flow

Net operating cash flow for fiscal 2021 was $27.2 billion compared with $15.7 billion in fiscal 2020. This marked 15th consecutive year of generating net operating cash flow above the $15 billion mark. The company reported record free cash flow of $19.4 billion, courtesy of higher iron ore and copper prices, and a strong operational performance.

Cash and cash equivalents as of Jun 30, 2021 amounted to $15.2 billion, up from $13.4 billion at the end of fiscal 2020. Capital and exploration expenditure totaled $7.1 billion, down 7% from the prior fiscal. The company provided capital and exploration guidance at $7.1 billion for fiscal 2022. As of the end of fiscal 2021, net debt was $4 billion, substantially lower than $12 billion reported as of fiscal 2020. Backed by strong fiscal 2021 results, BHP Group’s board announced a record final dividend of $2.00 per share.

Other Updates

In fiscal 2021, the company successfully achieved first production at four major development projects — on or ahead of schedule and on budget. It acquired an additional 28% working interest in Shenzi in November 2020. The Shenzi North development, a two-well subsea tie-in to the Shenzi platform, was approved in August 2021. At the end of fiscal 2021, BHP Group had two major projects under development — Mad Dog Phase 2 in petroleum and Jansen mine shafts in potash.

Significant Announcements

BHP Group approved $5.7 billion in capital expenditure for the Jansen Stage 1 potash project. First ore is expected in 2027. Once operational, Jansen S1 is expected to produce approximately 4.35 million ton of potash per year. This will provide the company exposure to a commodity with a strong demand outlook and immense growth potential.

The company has agreed to pursue a merger of its Petroleum business with Woodside Petroleum Ltd, which will create a global top 10 independent energy company by production. The combined business will have a high margin oil portfolio and long life LNG assets. Woodside would issue new shares to be distributed to BHP Group’s shareholders. Woodside shareholders will own 52% of the merged group, while BHP Group’s shareholders owning the remaining 48%. Woodside and BHP Group have estimated annual synergies in excess of $400 million per year. The Petroleum segment generated 6% of BHP Group’s fiscal 2021 revenues.

BHP Group intends to unify its corporate structure under its existing Australian parent company to realize simplification and enhanced strategic flexibility benefits.

Fiscal 2022 Production & Cost Guidance

In fiscal 2022, the company expects to produce between 249 Mt and 259 Mt of iron ore compared with 254 Mt produced in fiscal 2021 as WAIO continues to focus on incremental volume growth through productivity improvements. The petroleum production guidance is 99-106 MMboe. BHP Group anticipates copper production between 1,590 kt and 1,760 kt. Production guidance of Metallurgical coal for fiscal 2022 is at 39-44 Mt, while the same for energy coal is at 13-15 Mt. Nickel production is expected between 85 kt and 95 kt.

Conventional Petroleum unit cost is projected at $11-$12 per barrels of oil equivalent (boe) for fiscal 2022. Escondida unit cost is anticipated at $1.20-$1.40 per pound. Queensland Coal unit cost for the fiscal is expected at $80-$90 per ton. WAIO unit cost guidance is projected to be $17.50-$18.50 per ton.

The company expects demand for energy, metals and fertilizers to remain strong in the years to come, fueled by global economic growth, population growth and rising living standards. The near-term outlook, however, remains cloudy due to the uncertainties associated with the COVID-19 pandemic.

Price Performance

Image Source: Zacks Investment Research

BHP Group’s shares have gained 22.7% over the past year compared with the industry’s growth of 21%.

Zacks Rank & Other Key Picks

BHP Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the basic materials space include Avient Corporation AVNT, Veritiv Corporation VRTV and Commercial Metals Company CMC. While Avient and Veritiv flaunt a Zacks Rank #1, Commercial Metals carries a Zacks Rank #2.

Avient has a projected earnings growth rate of 75% for 2021. The company’s shares have soared 92% in the past year.

Veritiv has an estimated earnings growth rate of 215% for the current year. Over the past year, the company’s shares have soared 340%.

Commercial Metals has an expected earnings growth rate of 32.8% for the current fiscal year. The company’s shares have gained 54% in a year’s time.

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

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

Commercial Metals Company (CMC) : Free Stock Analysis Report

Veritiv Corporation (VRTV) : Free Stock Analysis Report

Avient Corporation (AVNT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

At the beginning of the week, things were pretty hunky-dory for the stock market. After all, on Aug 16, bulls overpowered bears on Wall Street and helped the broader S&P 500 make a noteworthy comeback. At one point on Monday, the index slipped 0.7% but managed to end the trading session in the green, with a 0.3% uptick. In fact, this was the broad-market index’s biggest comeback since Mar 25, per Dow Jones Market Data, citing a MarketWatch article.

Of course, investors were convinced that the gradual reopening of the economy, progress in the health crisis, and an array of government stimulus measures are enough to help the economy going in the near future, especially after the drubbing it took last year due to the coronavirus pandemic. However, a series of disappointing developments dented investors’ sentiments lately and dragged the stock market down on Aug 17. The S&P 500 index slumped 0.7% during yesterday’s trading session, which in reality was the sharpest daily drop since Jul 19, as mentioned in another MarketWatch article.

So, what led to the halting of the S&P 500’s five-day run of record highs? Just when you thought that the impact of COVID-19 across the globe is subsiding, New Zealand announced a nationwide lockdown after a new coronavirus case showed up in one of its cities. Coronavirus-related issues have also crept up at China’s ports. In the United States, the highly-transmissible delta variant of coronavirus is already spreading at places where vaccination rates are low, while hospitalization rates have started to increase. No doubt, such new cases of coronavirus threaten economic growth worldwide, something that doesn’t bode well for the stock market.

Speaking about economic growth, in the United States particularly, retail sales numbers disappointed lately raising concerns that U.S. consumers may be starting to reduce their spending levels on concerns about further economic progress. Citing a Barron’s article, sales at U.S. retailers for the month of July dropped 1.1%, way more than economists’ expectations of a drop of 0.3%. Retail sales, by the way, largely took a hit due to a decline in car-buying. It’s widely believed that consumers’ spending on big-ticket items has been partly dampened by the spread of the delta strain of COVID-19 and its subsequent impact on the economy.

Elsewhere, in countries like China, economic growth has already slowed down. Alarmingly, online shopping, retail sales and industrial output took a beating in China, and it’s not solely because of the spread of the virus. Moreover, China’s recent crackdown on Internet majors like Alibaba and Baidu isn’t lifting investors’ spirits in any way. There is also political unrest in places like Afghanistan and that may have repercussions across the globe, leading to a volatile stock market.

However, investors shouldn’t shun equities completely. On the contrary, it is prudent to invest in low-risk assets at times of uncertainty. Thus, invest in low-beta stocks and those that provide dividends since they exhibit immense financial strength. Additionally, if the stocks are non-cyclical in nature, market vagaries won’t hurt them. These stocks are generally found among consumer staples and utility sectors. We have, thus, selected five stocks that fulfill the above criteria and boast of a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

California Water Service Group CWT is the third largest investor-owned water utility in the United States. The company has a beta of 0.14 and a Zacks Rank #2. It has a dividend yield of 1.4%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the next quarter and year is 12.9% and 4.5%, respectively.

Middlesex Water Company MSEX treats, stores and distributes water for residential, commercial, industrial and fire prevention purposes. The company has a beta of 0.31 and a Zacks Rank #2. It has a dividend yield of 1%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 4.1%.

Albertsons Companies, Inc. ACI provides retail food products. The company has a beta of 0.03 and a Zacks Rank #2. It has a dividend yield of nearly 1.4%. The Zacks Consensus Estimate for its current-year earnings has moved up 14.1% over the past 60 days. The company’s expected earnings growth rate for the next five-year period is 12%.

Inter Parfums, Inc. IPAR is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. The company has a beta of 0.92 and a Zacks Rank #1. It has a dividend yield of almost 1.4%. The Zacks Consensus Estimate for its current-year earnings has moved up 13.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 61.2%.

J & J Snack Foods Corp. JJSF is an American manufacturer, marketer, and distributor of branded niche snack foods and frozen beverages. The company has a beta of 0.58 and a Zacks Rank #2. It has a dividend yield of 1.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 23.6% over the past 60 days. The company’s expected earnings growth rate for the current year is almost 164%.

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

Albertsons Companies, Inc. (ACI) : Free Stock Analysis Report

California Water Service Group (CWT) : Free Stock Analysis Report

Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report

J & J Snack Foods Corp. (JJSF) : Free Stock Analysis Report

Middlesex Water Company (MSEX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Target (TGT) delivered solid results for the second quarter and joins a select few retailers — namely rival Walmart — in saying the COVID-19 Delta variant hasn't led to a marked sales slowdown for the all-important back-to-school shopping season even as consumer confidence has begun to wane.

"While the current environment remains volatile, our results over the last 18 months have proven conclusively that our team and operating model can seamlessly adapt to changes in the environment, and we’re well-positioned to deliver outstanding performance in the back half of the year,” said Target Chairman and CEO Brian Cornell in a press statement announcing its second quarter results.

Here is how Target performed in the second quarter compared to Wall Street profit forecasts:

Net Sales: $25.16 billion vs. $24.51 billion
Comparable Sales: +8.9% vs. +8.2% (Walmart U.S. 2Q21: +5.2%)
Gross Profit Margin: 30.4% vs. 30.5%
Operating Margin: 9.8% vs. 9.1%
Adjusted Diluted EPS: $3.64 vs. $3.48 (consensus range: $3.11 to $4.10)

Target said Wednesday that second quarter comparable sales rose 8.9%, fueled by a 12.7% increase in the number of transactions. The average transaction amount fell 3.4% after rising 18.8% last year as consumers stocked up on essentials at the height of the pandemic.

"Back-to-school and back-to-college are off to really strong starts," Cornell told Yahoo Finance on a media call to discuss second quarter earnings. The comments echo what Walmart CFO Brett Biggs told Yahoo Finance a day earlier.

Added Cornell, "So, backpacks and lunch boxes are selling and school uniforms are on the top of that list. We're seeing a really strong start, and that's continued as we move into the third quarter. I think it's going to be a really robust back to school and back to college season."

The commentary may provide a bit of relief for investors who are concerned that Target's momentum for most of this year could stall as consumers spend more cautiously amid the Delta variant spread.

This content is not available due to your privacy preferences.

Update your settings here to see it.

If the retailer is to be dinged by analysts for its second quarter results it's that gross and operating margins both declined from the prior year, owing mostly to increased supply chain inflation. By comparison, Walmart U.S. saw its gross and operating profit margins increase year over year.

Target also fine tuned its full-year guidance relative to what was provided three months ago:

Second Half Comparable Sales: up high-single digit percentage (previous: mid to high-single digit)
Full Year Operating Margin: 8% or higher (previous: "well above" 7%, "potential" to hit 8%)

As a sweetener (and perhaps helpful in boosting/supporting earnings as they come off their COVID peak), Target revealed a new $15 billion stock buyback plan.

Target CFO Michael Fiddelke told Yahoo Finance on the call the company is unlikely to lever up its balance sheet to support the sizable new buyback plan.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit

BHP will move its main listing to Australia following an announcement on Tuesday, with a secondary listing on UK markets. Photo: Pavlo Gonchar/SOPA Images/LightRocket via Getty

Mining behemoth BHP (BHP.L) is leaving the FTSE 100 index (^FTSE), as it plans to scrap a dual listing of its shares in Sydney and London.

The move comes after two decades as part of the index. BHP will move its main listing to Australia following an announcement on Tuesday, with a secondary listing on UK markets.

As a result of the move, many UK investors will be forced to sell their holdings.

The industry giant is the world's biggest mining company and is a huge player in the market, regularly topping the charts in terms of market value.

The company's chairman Ken MacKenzie said the move would serve to "unify BHP's corporate structure."

The company's stock was 5.2% lower by 1pm on Wednesday in London.

BHP shares had fallen around 5% by 1pm in London. Chart: Yahoo Finance UK

"Our plans announced today will better enable BHP to pursue opportunities in new and existing markets and create value and returns over generations," said MacKenzie.

The delisting proposal comes just days after the company said it would be extracting itself from fossil fuels, merging its oil and gas assets with Australia's Woodside (WPL.AX). The company will shift towards commodities such as copper and nickel. Its thermal coal mine is also up for sale.

It is the second corporate giant to abandon a dual structure in London in the past five years — Unilever (UNA.AS) chose to simplify its own structure, opting for an Amsterdam listing, prompting speculation about Brexit flight.

BHP's move will make dealmaking easier for the company, as well as decarbonising and net-zeroing its output.

Although it will also spark worry in UK investors, at a time when politicians and officials are looking to make London a more attractive place to list.

According to the Financial Times, BHP ended Tuesday as the second biggest company on the London Stock Exchange with an equity market value of more than £129bn ($177.5bn), just behind AstraZeneca (AZN.L) at £133bn.

Watch: What are SPACs?

Kroger can be considered another value pick for Buffett and Berkshire Hathaway, but it is also a long-term play on the transformation of food shopping.

Hargreaves Services' (LON:HSP) stock is up by a considerable 47% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to Hargreaves Services' ROE today.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.

View our latest analysis for Hargreaves Services

How Do You Calculate Return On Equity?

The formula for ROE is:

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

So, based on the above formula, the ROE for Hargreaves Services is:

11% = UK£16m ÷ UK£144m (Based on the trailing twelve months to May 2021).

The 'return' is the yearly profit. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.11 in profit.

Why Is ROE Important For Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

Hargreaves Services' Earnings Growth And 11% ROE

To begin with, Hargreaves Services seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.7%. This probably laid the ground for Hargreaves Services' significant 48% net income growth seen over the past five years. We reckon that there could also be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.

We then compared Hargreaves Services' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 12% in the same period.

Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Hargreaves Services is trading on a high P/E or a low P/E, relative to its industry.

Is Hargreaves Services Making Efficient Use Of Its Profits?

Hargreaves Services' three-year median payout ratio is a pretty moderate 28%, meaning the company retains 72% of its income. So it seems that Hargreaves Services is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered.

Moreover, Hargreaves Services is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 58% over the next three years. Consequently, the higher expected payout ratio explains the decline in the company's expected ROE (to 6.5%) over the same period.

Summary

On the whole, we feel that Hargreaves Services' performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

By Nia Williams

CALGARY, Alberta (Reuters) – Canada's largest potash producer Nutrien Ltd said on Tuesday it is confident in growing global demand for the crop fertiliser, shrugging off BHP Group's decision to press on with its massive Jansen project in Saskatchewan that will add millions of tonnes a year of potash supply.

BHP announced it is going ahead with its Jansen potash project, which is expected to cost $5.7 billion in the first phase.

The mine will produce 4.35 million tonnes of potash per year from 2027, BHP said. Potash is a key element in plant nutrition that also makes crops more drought resistant.

Canada produced 21 million tonnes in 2019, accounting for more than 31% of global supply.

"It will take another decade for Jansen to have significant production," Ken Seitz, chief executive of Nutrien Potash said in a statement.

Nutrien expects global demand to grow by 2-3% per year until close to 2030. The company is also seen as an ideal partner to dilute BHP's risk and development costs. BHP says it is open to but not in need of a partner, while Nutrien has said that any tie-up with BHP is not its focus.

Global potash demand by 2030 is likely to be more than sufficient to absorb additional supply from Jansen, said Morningstar analyst Seth Goldstein, as farmers in Asia use more of the crop nutrient.

"Potash has one of the best demand outlooks of any fertiliser out there," Goldstein said.

This month Washington imposed sanctions on Belaruskali OAO, one of Belarus' largest state-owned enterprises and among the world's biggest producers of potash. Belarus Potash Company (BPC), the exporting arm Belaruskali, warned the move would lead to global potash price increases.

Jansen is expected to create 3,500 jobs annually during construction and employ 600 permanent operating staff.

Premier Scott Moe said the mine is the largest private economic investment in the province's history.

(Reporting by Nia Williams; Editing by Marguerita Choy)

(Bloomberg) — BHP Group said it plans to unify its dual-listing structure and would have its primary listing in Sydney.

The world’s biggest miner announced the change to its structure as part of its annual earnings results Tuesday, confirming an earlier Bloomberg News report. The proposal would see BHP have its primary listing on the Australian Securities Exchange, with additional listings in London, Johannesburg and New York, according to the exchange filing.

“Now is the right time to unify BHP’s corporate structure,” said BHP Chairman Ken MacKenzie in the filing. “BHP will be simpler and more efficient, with greater flexibility to shape our portfolio for the future.”

Read More: BHP Agrees to Exit Oil Business, Approves Giant New Potash Mine

The resource company’s current primary listings are in Sydney and London, an arrangement that dates back to 2001 following its merger with U.K.-listed Billiton. Shareholders of the London-listed vehicle will get shares of the Sydney-listed entity on a one-for-one basis, the filing said.

Elliott Management Corp. previously had pushed BHP to reorganize as a single company listed in Australia, and argued in 2018 the changes could add more than $22 billion in value to the miner’s shareholders.

The removal of BHP’s dual U.K. listing would increase the firm’s value by reducing costs, bolstering transparency and could eliminate a discount between its shares in London and Sydney, Elliott argued at the time.

The decision caps a series of major shifts this quarter by the company, which is exiting its petroleum business and has also been divesting a number of coal mines.

The proposal on listing changes is subject to approvals including by the company’s board. If approved, the unification could occur in the first half of next year, with the proposed petroleum business merger with Woodside Petroleum Ltd.

(Updates throughout with confirmation.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

By Sonali Paul

MELBOURNE (Reuters) – BHP Group has agreed to sell its petroleum business to Woodside Petroleum in a merger to create a top 10 independent oil and gas company worth A$38.5 billion ($28 billion) with growth assets in Australia and the Americas.

BHP's exit from petroleum, which made up just 5% of its annual earnings, speeds up its exit from fossil fuels amid pressure from environmentally conscious investors. BHP CEO Mike Henry, however, said the company remained committed to metallurgical coal used in steel making.

BHP shareholders will be paid in Woodside stock, giving BHP investors a 48% stake in the merged group.

That effectively values BHP's petroleum arm at about A$18.5 billion ($13 billion) on Tuesday's close, roughly in the middle of analysts' valuations between $10 billion and $17 billion.

For Woodside, the deal is transformational, doubling its output, expanding its footprint in liquefied natural gas, removing the main obstacle to its $12 billion Scarborough gas project and giving it near-term growth options in the Gulf of Mexico.

"Merging Woodside with BHP's oil and gas business delivers a stronger balance sheet, increased cash flow and enduring financial strength to fund planned developments in the near term an new energy sources into the future," Woodside Chief Executive Meg O'Neill said in a statement.

She told investors the merger involved no premium for BHP's assets.

The deal was announced at the same time as Woodside appointed O'Neill as chief executive, following a stint as acting CEO. Some analysts had speculated BHP's petroleum chief Geraldine Slattery, would get the job.

"The proposed transaction de-risks and supports Scarborough FID (final investment decision) later this year and enables more flexible capital allocation," O'Neill said.

The companies said the merger would generate annual savings of $400 million.

($1 = 1.3732 Australian dollars)

(Reporting by Sonali Paul; editing by David Evans)

(Bloomberg) — BHP Group unveiled the most sweeping change to its business since the world’s biggest miner was created two decades ago, as it plans an escape away from fossil fuels to shift toward what it calls “future facing” commodities and clears up some longstanding questions facing investors.

BHP will sell its oil and gas operations to Woodside Petroleum Ltd. in exchange for shares that it will distribute to its own investors, it announced Tuesday. The company also approved $5.7 billion of spending to build a massive new fertilizer mine in Canada and said it will unify its dual-listed structure and shift to a single primary listing in Australia. The shares in London jumped as much as 9.8% after the flurry of announcements.

The decisions — which come alongside record free-cash flow for the year through June and a $10.1 billion final dividend — represent a pivotal moment for Chief Executive Officer Mike Henry, who took the helm in January last year. Investors have been waiting years for a decision on Jansen, while the company has said previously its dual listing was up for discussion after coming under pressure from activist investor Elliott Management Corp., which also pushed for an exit from oil and gas.

Since his appointment, Henry has been seeking to focus the company toward metals and minerals that will benefit from global efforts to reduce emissions, electrify cities and feed a growing global population. A Canadian-born executive who joined BHP in 2003 from Mitsubishi Corp., he inherited a business that had been stripped down and simplified under his predecessor, who sold out of shale and spun off unwanted assets, but still faced huge decisions on potash, the listing and the future of fossil fuels.

“These are sweeping changes,” said Ben Davis, an analyst at Liberum Capital. “The new, improved, not so-boring BHP.” The change to the listing structure means “they can be more nimble in the future,” he said. “It’s not just change today, but it means there’s more change coming tomorrow.”

The dual listing dates back to 2001, following Australia-listed BHP’s merger with U.K.-listed Billiton, and had seen the companies managed and run as a single entity with shareholders having equal economic and voting rights. Elliott argued in 2018 that a reorganization into a single company in Australia would add more than $22 billion in value to shareholders.

BHP generates the bulk of its profits from iron ore and copper — a metal that’s central to the green-energy transition — and benefited from soaring prices for both commodities over the past year. The company is also trying to sell its thermal coal operations and is expanding in nickel, a vital material in rechargeable batteries.

The commodities giant is getting out of oil and gas as the fossil-fuels industry grapples with global pressure from investors and governments over climate action, prompting some larger oil rivals to shrink their core production and add renewable energy assets. While BHP has said it expects demand to remain strong for at least another decade, the company wants to avoid getting stuck with assets that will become more difficult to sell.

BHP has also finally approved the first stage of construction of the Jansen potash mine in Saskatchewan, Canada, after years of wavering over the huge price tag. The operation, expected to start production in 2027, will make it one of the world’s top producers of the crop nutrient.

Read More: BHP’s $20 Billion Canadian Potash Dilemma: To Build or Not?

“Potash provides BHP with increased leverage to key global mega-trends, including rising population, changing diets, decarbonisation and improving environmental stewardship,” the company said.

It’s also the latest sign that the biggest miners are ready to open their wallets to invest in new mines after years of austerity. The industry has been focused on shareholder returns and debt reduction after being penalized by investors.

BHP has already spent about $4.5 billion on Jansen and dug two 1,000-meter (3,300-feet) deep shafts but held off on a final development decision as it weighed the risks of the large investment. Potash prices have jumped this year amid strong demand, as well as worries about supply after Belarus, one of a handful of producing nations, was hit by sanctions.

Like its biggest rivals, BHP reported bumper profits and dividends. Commodity prices surged in the past year as governments around the world unleash trillions of dollars in stimulus packages to help the global economy emerge from the pandemic, boosting demand for raw materials.

(Updates with share move in second paragraph)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

BBL earnings call for the period ending June 30, 2021.

Have you been paying attention to shares of Albertsons Companies (ACI)? Shares have been on the move with the stock up 50.1% over the past month. The stock hit a new 52-week high of $30.42 in the previous session. Albertsons Companies has gained 69.8% since the start of the year compared to the 6.9% move for the Zacks Consumer Staples sector and the 8.2% return for the Zacks Consumer Products – Staples industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 29, 2021, Albertsons Companies, Inc. reported EPS of $0.89 versus consensus estimate of $0.68 while it beat the consensus revenue estimate by 2.78%.

For the current fiscal year, Albertsons Companies, Inc. is expected to post earnings of $2.27 per share on $68.13 billion in revenues. This represents a -29.94% change in EPS on a -2.24% change in revenues. For the next fiscal year, the company is expected to earn $2.2 per share on $68.9 billion in revenues. This represents a year-over-year change of -2.94% and 1.13%, respectively.

Valuation Metrics

Albertsons Companies, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Albertsons Companies, Inc. has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 13.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 4.1X versus its peer group's average of 13.1X. Additionally, the stock has a PEG ratio of 1.1. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Albertsons Companies, Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Albertsons Companies, Inc. meets the list of requirements. Thus, it seems as though Albertsons Companies, Inc. shares could still be poised for more gains ahead.

(Adds details on talks, background, Woodside statement)

Aug 16 (Reuters) – BHP Group Ltd is in talks to sell its petroleum business to Australia's top independent gas producer Woodside Petroleum Ltd in exchange for shares, the companies confirmed on Monday.

The world's biggest miner BHP also said it had begun a strategic review of the business — made up of assets in Australia, the Gulf of Mexico, Trinidad and Tobago, and Algeria — that analysts value at between $10 billion and $17 billion.

BHP has been facing calls to detail how and when it will exit fossil fuels, with activist investor Market Forces filing a resolution on the topic this week for annual meetings in October and November.

The miner was widely expected to deliver a verdict on the future of the petroleum business ahead of its results this week.

"While discussions between the parties are currently progressing, no agreement has been reached on any such transaction," BHP said, adding that it was evaluating a number of options.

In a separate statement, Woodside confirmed talks with BHP over the deal and said discussions were ongoing. (Reporting by Shashwat Awasthi in Bengaluru; editing by Uttaresh.V)

Investors looking for stocks in the Mining – Miscellaneous sector might want to consider either BHP (BHP) or Wheaton Precious Metals Corp. (WPM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, BHP is sporting a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BHP is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BHP currently has a forward P/E ratio of 8.04, while WPM has a forward P/E of 29.27. We also note that BHP has a PEG ratio of 1.94. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WPM currently has a PEG ratio of 5.85.

Another notable valuation metric for BHP is its P/B ratio of 2.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WPM has a P/B of 3.43.

These metrics, and several others, help BHP earn a Value grade of B, while WPM has been given a Value grade of D.

BHP sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that BHP is the better option right now.

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

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Oatly CEO Toni Petersson said there is light at the end of the tunnel with respect to the oat milk shortage that has existed during the pandemic due to significantly more at-home consumption of packaged foods.

"No," Petersson responded when asked by Yahoo Finance if the shortage would continue into 2022. "It's going to improve. It has improved since March. It's going to continue to increase [product availability] every single month here."

To help improve demand, Oatly said it will increase production capacity at its Ogden, Utah, facility and in facilities in Asia and Europe. The company expects to increase production by 200% by the end of 2022, compared to 2020.

Persistent supply constraints weighed on Oatly's second quarter performance. Sales rose 53.3% year-over-year. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss came in at $31.9 million compared to a loss of $1.2 million a year ago.

Here is how Oatly performed compared to Wall Street analyst estimates for the second quarter:

Net Sales: $146.2 million vs. $147 million
Loss per Share: $0.11 vs. $0.10

The company reiterated its long-term targets for a gross margin of 40% and EBITDA margin approaching 20%.

Oatly containers are displayed at a grocery store, Tuesday, May 18, 2021, in North Miami, Fla. Oatly, the world’s largest oat milk company, will raise $1.4 billion in an initial public offering Thursday, May 20 on the Nasdaq stock exchange. (AP Photo/Marta Lavandier)

Oatly shares rose 1% to $17 in Monday trading, putting the stock price in line with the IPO's pricing in mid-May. The stock had reached a high of $28 in mid-June amid optimism on the outlook for oat milk demand and Oatly's leading market share position in the market. But shares came under pressure in mid-July following an attack on the company's financial reporting by short-seller Spruce Point.

Oatly was quick to rebuff Spruce Point's claims.

Jefferies analyst Rob Dickerson said he came away with a positive take on the situation after a meeting with management post-earnings.

"In our follow-up call with mgmt. today, we were told that nothing in the recent short report could be substantiated by an internal and external analysis conducted by Oatly and that’s where the OTLY is going to leave it. While we understand points made in the report around competitive dynamics, we still find it too early to call long-term share pressure issues given the lack of real-time data across geographies and channels and given the company is supply constrained. We will continue to monitor the situation, but the expectation now is that we should start to see share positioning improvements into YE in the Americas as incremental capacity comes online and Oatly is able to better expand distribution, even with pre-existing customers, Dickerson said in a note to clients.

When asked by Yahoo Finance if he has a message for investors following the short-seller report, Petersson said Oatly remains a growth company.

"There are a lot of things we want to say. But we are positioned to take a global leading role in driving the plant-based revolution forward. We haven't even started to scratch the surface yet and the runway is massive," Petersson said.

To that point, Oatly has recently begun selling soft-serve ice cream. The surface is being scratch, so it seems.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit

By Dhirendra Tripathi

Investing.com – BHP Billiton (NYSE:BBL) ADR traded 1.8% lower in Monday’s premarket on concerns that the company may not make the clean break with fossil fuels that many investors had hoped for.

BHP said overnight it's in talks with Woodside Petroleum (OTC:WOPEY) over a potential sale. One of the possibilities under consideration would include an all-share transaction in which BHP would distribute Woodside shares to its investors – an alternative that few BHP investors would prefer.

Reports peg the value of the deal at $15 billion. Under the likely terms, Woodside will issue its own equity to BHP shareholders as consideration for buying the mining giant’s petroleum business.

Such a deal would leave BHP shareholders with shares of a pure fossil fuel player, shares that they would be forced to sell immediately due to their investment mandates. Shareholders are usually happier with a cash-deal that would help the company pay them dividends or fund a buyback program.

BHP has got rid of many of its polluting assets and the sale of the petroleum business would bring it close to an exit from all such sectors.

A report last week by a UN panel warned of dire consequences as it said the climate is getting warmer at a pace faster than estimated earlier.

For Woodside, an acquisition of BHP's oil and gas assets would roughly double its annual underlying earnings to around $8 billion. For BHP, a petroleum exit would strip out just 5% of underlying earnings, according to Reuters

Woodside share closed 4.5% lower in today’s trading.

BHP Falls on Worry Woodside Deal Isn’t a Clean Break From Fossil Fuels

U.S banks walk tightrope of encouraging, but not mandating vaccines

Sydney Airport rejects improved $16.8 billion buyout bid, open to higher offer

One company is seeking to turn grocery shopping from an errand to an activity.

Food and drug retailer Albertsons Cos. (NYSE: ACI) announced on Monday an overhaul of its digital segment, unveiling three new offerings to its suite of digital services, including FreshPass, a subscription service that's essentially Amazon Prime, exclusively for groceries. For a little under $100 a year or $12.99 a month, Albertsons customers can take advantage of free delivery on orders of $30 or more, free two-hour grocery delivery, and other rewards.

Alongside FreshPass, Albertsons rolled out its free Deals & Delivery app, which will allow customers to shop, save and redeem rewards online or in-store, complete with a digital wallet and app coupon integration. The company is also premiering its Albertsons for U loyalty program, which offers perks from personalized deals to special birthday items.

"We have been working hard to revolutionize Albertsons Companies' digital offerings and enhance all aspects of the food experience and journey," said Chris Rupp, EVP and chief customer and digital officer. "We have been in lock-step with our customers, and today's launch of our new Deals & Delivery app, our ‘Albertsons for U' loyalty program, and FreshPass subscription service exemplifies our commitment to innovation and customer service, meeting shoppers where they want to shop whether that be in-store, curbside, or at home."

While all three offerings should improve Albertsons customers' experiences, it's the new subscription service, FreshPass, that's particularly eye-catching. Albertsons seems to be taking a page from Amazon's (NASDAQ: AMZN) playbook, bringing delivery-as-a-subscription to its more specialized corner of the market, and that model could help it and other specialty retailers go direct-to-consumer to keep pace with the delivery titans.

FreshPass offers a variety of subscriber-exclusive perks, including $5 monthly promotional credit through December, savings on O Organics and Open Nature products, monthly Starbucks perks, and a VIP phone line. Rewards never expire, and the company's website touts potential user savings of nearly $400 per year.

Albertsons has been an innovative player in the grocery delivery space for a while, having inked deals with Instacart, DoorDash (NYSE: DASH), and Uber (NYSE: UBER) over the past few years. Those companies have been partnering with Albertsons' banner stores — including Safeway, Jewel-Osco, and ACME — to provide third-party grocery delivery services from participating stores. The company also ran a pilot project this year that used robots to deliver out of one of its Safeway stores.

Other companies have also started grocery subscription services to try to emulate Amazon's success. Walmart Grocery (NYSE: WMT) launched its Delivery Unlimited program in 2019, offering free delivery and shipping for $12.95 a month or $98 a year. Target (NYSE: TGT) employs a similar model, offering a membership for same-day delivery in collaboration with Shipt.

Prime subscriptions have been a cash cow for Amazon, acting as a primary source of the delivery giant's revenues in North America for years. By harnessing the Prime model, Albertsons and other retailers hope to meet consumers where they are and keep them coming back.

Eyes on earnings guidance

Whisper numbers on the Street expect Walmart's key U.S. business to post a same-store sales increase of 4% to 6% for the quarter. Walmart's guidance communicated a few months back call for a second quarter U.S. same-store sales gain of low-single digits (percentage).

Staying on those Street whisper numbers, second quarter earnings are seen hitting $1.65 a share (consensus $1.55). Walmart guided to an earnings decline of low-single digits from $1.56 a year ago.

Given those heightened expectations on the quarter and strong potential for Walmart to say the third quarter has started well, the Street is likely banking on a strong full-year earnings guidance lift from Walmart to sustain the stock's recent gains. Currently, Walmart's full-year profit outlook calls for a low-double digit increase year-over-year excluding exited businesses.

But considering the economic uncertainty around the COVID-19 Delta variant and how it may impact consumer spending during the important back-to-school and holiday shopping seasons, Walmart could take a more muted tone on guidance much to the letdown of the bulls.

Horvers says he understands the appeal of Walmart's stock right now, but suggests sitting out on the name into earnings.

"Net-net, while the stock underperformance and defensiveness given the Delta variant is appealing, at 24x our estimate, we think the stock is relatively full with the market unlikely to roll forward 2Q stacks (though we are positive Walmart could at least hold earnings flat in 2022)," Horvers adds.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit

(Bloomberg) — BHP Group is in talks over a potential merger of its oil and gas unit with Woodside Petroleum Ltd. to accelerate a retreat from fossil fuels amid increasing pressure to curb emissions.

Options being discussed include a distribution of Woodside shares to BHP holders to allow the Australian energy firm to add operations spanning Australia to the Gulf of Mexico, the companies said in separate statements. BHP’s unit could be valued at more than $15 billion, a person familiar with the details said last month.

The petroleum division “simply no longer fits within BHP’s portfolio or future-facing strategy,” said Saul Kavonic, an analyst at Credit Suisse Group AG. Having missed opportunities to sell thermal coal assets at higher prices, “BHP should know it’s better to exit petroleum sooner rather than later,” he said.

BHP, which generates the bulk of profits from iron ore and copper, is reviewing its portfolio as energy supermajors grapple with global pressure from investors and governments over climate action, in some cases by shrinking core production and adding renewable energy assets. Chief Executive Officer Mike Henry has already signaled plans to focus the world’s biggest miner on materials tied to renewable energy and electrification.

Woodside declined as much as 4.5% in Sydney trading Monday and was 4.4% lower as of 3:39 p.m. local time. BHP fell 0.9%.

“BHP confirms that we have initiated a strategic review of our petroleum business to re-assess its position and long-term strategic fit,” the company said. While talks with Woodside “are currently progressing, no agreement has been reached on any such transaction,” it said.

Though BHP has said it expects oil and gas demand to remain strong for at least another decade, and recently announced $800 million of investments in growth options, the company is wary of becoming stuck with assets that’ll become more difficult to exit as the world attempts to curb consumption of fossil fuels.

The talks with Woodside come a week after environmental campaign group Market Forces tabled a proposal on behalf of about 100 small investors that calls on BHP to wind down oil, gas and coal production in line with international targets to cut greenhouse gas emissions. A deal that would see investors take on Woodside shares risks undercutting BHP’s climate pledge, according to campaigner Will van de Pol.

“We know that investors have clearly signed up to the goal of net zero by 2050,” he said. “They’re increasingly understanding what that means, and it means no expansion of the oil & gas sector. So for investors to be lumped with shares in a company that is trying to expand its oil and gas production, I don’t think it’s going to sit that well.”

Asset Sales

Output in BHP’s oil and gas unit, which includes operations in Australia’s Bass Strait and North West Shelf, the U.S. Gulf of Mexico and in Trinidad and Tobago, declined 6% in the year to June 30. BHP is a partner in the projects with firms including BP Plc, Exxon Mobil Corp. and Woodside.

BHP sold the majority of its shale unit to BP in 2018 for about $10.5 billion, and is advancing plans to exit its final thermal coal mine and some metallurgical coal operations. Those divestments would leave the company with only a handful of fossil fuels assets, a collection of mines in Queensland that supply coal to steelmakers.

Last month, Bloomberg News reported BHP was considering plans to quit oil and gas. Woodside and BHP are in advanced talks over a deal worth about A$20 billion ($14.7 billion), the Australian Financial Review reported on Sunday, citing people familiar with the matter.

Melbourne-based BHP is scheduled to report annual results Tuesday.

(Updates with analyst comment in third paragraph.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

(Bloomberg) — Woodside Petroleum is in advanced talks to buy BHP Group’s petroleum division for about A$20 billion ($14.7 billion), the Australian Financial Review reported on Sunday, citing people familiar with the matter.

Under Woodside’s proposal, the company would offer shares to BHP for the entire petroleum business, which would then be passed on to BHP’s shareholders, to ensure no change of control, the newspaper reported. The acquisition would make Woodside the clear No.1 player in Australia’s oil and gas sector, according to the report.

The talks are ongoing and nothing has been agreed, AFR reported. The companies declined to comment to AFR. Last month, Bloomberg News reported that BHP Group was considering getting out of oil and gas in a multibillion-dollar exit that would accelerate its retreat from fossil fuels. A BHP spokesman declined to comment on the report.

While BHP has long said the oil business was one of its strategic pillars and argued that it will make money for at least another decade, the company wants to avoid getting stuck with assets that would become more difficult to sell as the world tries to shift away from fossil fuels, people familiar with the matter told Bloomberg News last month.

Getting out of both thermal coal and petroleum would help BHP make its case to investors as a company geared toward commodities of the future. The miner is also expected to shortly approve a giant potash mine in Canada which could make it a key supplier of the crop nutrient once production begins.

BHP is scheduled to report annual results on Aug. 17.

(Updates with background from third paragraph onwards.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

By Melanie Burton and Kate Lamb

MELBOURNE (Reuters) – Australia's mining industry is bracing for a government inquiry that is expected to shed light on sexual harassment in the country's mineral-rich west, as the sector struggles with a dire skills shortage and low female representation.

Conditions at Western Australia's mining camps have worsened sexual harassment, critics say, and the issue has prompted the industry to take a stand against a culture they say has to change.

Major miners including BHP Group, Rio Tinto and Fortescue are among those expected to make submissions to the state government inquiry, which will make recommendations to West Australia's parliament in April 2022. Submissions close on Friday and become public next week.

Workers typically live at isolated "fly-in, fly-out" (FIFO) camps for a fortnight at a time in Western Australia's mining belt, the source of much of the country's economic prosperity.

Women make up roughly one in five FIFO workers and critics say recreation facilities have become hubs for drinking alcohol and created poor camp cultures that miners need to address.

"There are certain geographic and other issues that make FIFO camps a particular high risk area – part of that is the demographics that are on site," said Owen Whittle, a spokesperson for UnionsWA, which represents 30 workers groups and will make a submission to the inquiry.

Whittle says miners and contractors need to invest in site facilities and health and safety practices, particularly at smaller camps. He said sexual harassment needs to be seen as a systemic issue, rather than a series of unrelated incidents for the police to deal with.

"Often these (smaller) camps are poorly managed, the facilities are very poor. You might have little more than a wet mess and a rundown gym in terms of recreation facilities on site," he said, referring to mess facilities that serve alcohol.

"We need to put a duty on the camp operators and the miners and all the resource companies to…prevent harm in these workplaces."

In a 2020 report, the Australian Human Rights Commission inquiry into sexual harassment found that 74% of women in the mining industry had experienced some form of sexual harassment in the past five years, partly due to the gender imbalance.

CULTURAL ISSUES

A young woman formerly employed at one of Australia’s largest mining companies told Reuters that while her team was "welcoming, sensitive and conscious," that attitude was not always replicated underground.

"If you are a new employee and there are already about 8-10 male miners down there, you tend to sort of accept a few things here or there that you usually wouldn't," said the woman, who declined to be named. "Like swearing, or throwing the c-word around like it's nothing."

In her experience her male colleagues were largely respectful to her but she said when there is a group of them that "culture perpetuates."

Australia's three biggest miners, BHP, Rio Tinto and Fortescue, did not have an immediate response to requests for further comment but have previously spoken about measures they are taking to address the issues, including efforts to increase women in their workforces.

BHP has been targeting a 50-50 gender split by 2025. The percentage of women has risen to 26.5% up from 17.6% since mid-2016.

Rio is striving to increase the representation of women by 2 percentage points each year. It rose by 0.9% to 21.0% in the first half, hiring 1,270 women, 32% of all hires. It has also launched an initiative to address sexual harassment and help it retain women.

"As an industry, we must and can do more to ensure we have a diverse workforce that is reflective of our community and foster a workplace culture that truly embraces diversity and inclusiveness," Elizabeth Gaines, Fortescue Chief Executive, said last week.

At the mining industry's biggest annual conference in the outback town of Kalgoorlie last week, Gaines noted she had improved the event's gender diversity: women made up four out of 56 speakers, up from the three last year.

"It is clear that the industry still has some work to do in this regard," she said at the conference.

(Reporting by Melanie Burton; Editing by Sam Holmes)

By Sonali Paul and Melanie Burton

MELBOURNE (Reuters) – Expectations are growing that BHP Group Ltd will deliver a verdict on the future of its petroleum business at its results next week, as it comes under increasing pressure to cut its fossil fuel footprint.

The world's biggest miner has been facing calls to detail how and when it will exit fossil fuels, with activist investor Market Forces filing a resolution on the topic this week for annual meetings in October and November.

BHP's decision this month to approve $802 million in development spending on oil projects in the U.S. Gulf of Mexico – just days before a new report that issued dire warnings about human contribution to climate change – has only ratcheted up pressure from some investors.

"It's clear something is brewing," said Simon Mawhinney, Chief Investment Officer at Allan Gray Australia.

BHP declined to comment on market speculation.

Analysts value BHP's petroleum business, made up of assets in Australia, the Gulf of Mexico, Trinidad and Tobago and Algeria, at $10 billion to $17 billion. The division contributed 5% of BHP's underlying earnings of $14.7 billion in the first half to end-December, compared with 70% for iron ore.

Investors are split on their fit within BHP's portfolio, especially as the company focuses on new economy materials such as copper, nickel and potash.

An exit from petroleum would constitute "a major shift" in BHP's environmental, social and governance (ESG) credentials and overall strategy towards fossil fuels, Morgan Stanley analyst Rahul Anand said in a recent note.

AUSTRALIA AND THE REST

BHP's late-life, mainly low-return energy assets in Australia are seen as particularly ripe for a sale amid high oil and gas prices.

"For BHP, if you look at its Australian (energy) assets, if they could exit those in a meaningful way for something approximating value, that would be a good outcome," said Brenton Saunders, a portfolio manager with shareholder Pendal Group.

Credit Suisse and Citi value the Australian energy assets – including the Bass Strait, Northwest Shelf LNG and the Scarborough gas field – at $3 billion to $5 billion.

Woodside Petroleum Ltd is seen as the most logical buyer as they would boost its free cash flow and increase its stakes in key projects, although not all investors favour such a tie-up given the asset mix and likely need for an equity raising.

Woodside declined to comment.

BHP would also have to take a discount on any sale given some heavy decommissioning liabilities, said Credit Suisse analyst Saul Kavonic, although a sale could boost its ESG rating and attract new shareholders.

"BHP could sell these for discounts but still increase share value though a re-rating on the rest of their business," he said.

Elsewhere, investors say BHP's petroleum assets are more attractive.

The most valuable are its stakes in oil fields in the Gulf of Mexico, valued at $10.4 billion by Wood Mackenzie, which made up about 25% of the company's 103 million barrels of oil equivalent output the year to June 2021.

"The rest of the portfolio, there are parts that are high growth, high returning. They've done a lot of work on them and shareholders have had to wear some of the bad times. They are good assets," said Pendal Group's Saunders.

BHP is due to deliver its annual results on Tuesday at 0700 GMT.

(Reporting by Melanie Burton and Sonali Paul; editing by Richard Pullin)

VANCOUVER, BC, Aug. 13, 2021 /CNW/ – Trading resumes in:

Company: Graphene Manufacturing Group Ltd.

TSX-Venture Symbol: GMG

All Issues: Yes

Resumption (ET): 1:15 PM

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions

Cision

View original content: http://www.newswire.ca/en/releases/archive/August2021/13/c0598.html

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has BHP Group Limited Sponsored (BHP) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

BHP Group Limited Sponsored is a member of the Basic Materials sector. This group includes 251 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. BHP is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for BHP's full-year earnings has moved 12.52% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, BHP has moved about 19.18% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 16.73%. This means that BHP Group Limited Sponsored is performing better than its sector in terms of year-to-date returns.

Looking more specifically, BHP belongs to the Mining – Miscellaneous industry, a group that includes 47 individual stocks and currently sits at #207 in the Zacks Industry Rank. This group has gained an average of 17.48% so far this year, so BHP is performing better in this area.

BHP will likely be looking to continue its solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to the company.

CONNECT WITH US

Tweets

Tweet with hash tag #miningfeeds or @miningfeeds and your tweets will be displayed across this site.

Tweets by MiningFeeds

MOST ACTIVE MINING STOCKS

Daily Gainers


Ratel Group Ltd.	RTG.TO	+60.00%
Granite Creek Gold Ltd.	GCX.V	+33.33%
Rugby Mining Limited	RUG.V	+33.33%
African Metals Corp.	AFR.V	+33.33%
Casa Minerals Inc.	CASA.V	+30.00%
Sipa Resources Ltd.	SRI.AX	+28.57%
Blue Sky Uranium Corp.	BSK.V	+25.00%
Grizzly Discoveries Inc	GZD.V	+25.00%
Plato Gold Corp.	PGC.V	+25.00%
Great Quest Metals Ltd.	GQ.V	+25.00%

Revenues & Margin Performance

Balance Sheet & Cash Flow

Other Updates

Significant Announcements

Fiscal 2022 Production & Cost Guidance

Price Performance

Zacks Rank & Other Key Picks

How Do You Calculate Return On Equity?

Why Is ROE Important For Earnings Growth?

Hargreaves Services' Earnings Growth And 11% ROE

Is Hargreaves Services Making Efficient Use Of Its Profits?

Summary

Eyes on earnings guidance

CONNECT WITH US

Tweets

MOST ACTIVE MINING STOCKS

Daily Gainers

Articles

FOUND POSTS

Arizona Gold & Silver (TSXV:AZS)(OTCQB:AZASF) Provides Exploration Update for Philadelphia Project in Arizona

Arras Minerals (TSXV:ARK) Updates on Elemes Drill Program in Kazakhstan

Barksdale Resources (TSXV:BRO) Intercepts Copper-Rich CRD Sulfide Mineralization

Potential Trump Tariffs Could Reshape Copper Market Dynamics in 2025

Solaris Resources (TSX:SLS) in 2024: A Look Back at a Year of Transformation and Strategic Realignment