BHP Group Stock (NYSE:BHP), Trade Ideas

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 U.S. 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. BHP is growing its nickel business to supply more battery-grade nickel and is also entering the potash market through the development of its Jansen mine in Canada. It also purchased copper miner Oz Minerals in fiscal 2023.

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Gold King Secures Key Wyoming Permit; Ivanhoe and BHP Launch Mining Alliance; Compass Minerals Reports Financial Results And More: Wednesday&#39;s Top Mining Stories

Gold King Secures Key Wyoming Permit; Ivanhoe, BHP Launch Mining Alliance; Compass Minerals Reports Financial Results And More: Wednesday&#39;s Top Mining Stories

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BHP&#39;s subsidiary signed Exploration Alliance Agreement with Ivanhoe Electric to explore for copper and other minerals in the US, with a mutual goal of finding new sources for the growing demand. BHP will provide $15M initial funding, with potential for more on a 50/50 basis.

What&#39;s Going On With Mining Giant BHP Shares Today?

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Anglo American rejects BHP&#39;s $39B bid, sparking potential bidding war with Glencore. Gold Resource reports Q1 results. US imposes preliminary duties on aluminum extrusion producers. Nexa Resources reports quarterly loss amidst challenges.

Anglo American Potential Bidding War; Gold Resource Q1 Results; US Acts Against Aluminum Dumping And More: Friday&#39;s Top Mining Stories

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Top Stories for May 8, 2024:
1. U.S. Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USAU#NYSE">USAU</a>) announced that its subsidiary, Gold King, received a Surface <a href="https://www.benzinga.com/news/24/05/38697396/u-s-gold-corp-announced-that-its-wholly-owned-subsidiary-has-been-issued-its-surface-gold-mine-permi">Gold Mine Permit</a> from the Wyoming Department of Environmental Quality, moving them closer to project development. 
<ol></ol>
President George Bee highlighted the clearance of major regulatory hurdles and ongoing progress toward obtaining final development authorizations.&nbsp;
The remaining conditions for the mine operating permit include approval of a $5,010,000 reclamation bond, obtaining WYPDES and AQD permits and updating the approved mining plan accordingly.
2. Ivanhoe Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IE#NYSE">IE</a>) entered into a three-year Exploration Alliance Agreement with a subsidiary of BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) to jointly explore and potentially develop mining projects in Arizona, New Mexico and Utah.
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BHP will provide initial funding of $15 million, with subsequent investments split equally. 
Under the agreement, Ivanhoe Electric will contribute advanced geophysical survey technologies and machine learning software to identify critical mineral deposits, enhancing the exploration efficiency.&nbsp;
The alliance aims to leverage both companies' resources and expertise to capitalize on the growing demand for minerals critical to energy transition and technological advancements.
Also Read:<a href="https://www.benzinga.com/topic/mining"> </a><a href="https://www.benzinga.com/markets/commodities/24/05/38680978/uranium-executives-anticipated-russian-nuclear-fuel-ban-despite-senate-delay">Uranium Executives Anticipated Russian Nuclear Fuel Ban Despite Senate Delay</a>
3. Compass Minerals (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMP#NYSE">CMP</a>) reported fiscal second-quarter results and detailed initiatives to enhance cash flow and reduce debt, including halting dividends to save about $25 million annually. 
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These actions were prompted by a mild winter and challenges in their fire-retardant business.
The company will reduce production and inventory at the Goderich mine, cutting the corporate workforce and implementing cost-saving and governance measures aimed at increasing operational efficiency and financial performance.
4. Idaho Strategic Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDR#NYSE">IDR</a>) signed a non-binding memorandum of understanding with Radiant Industries to potentially operate its Kaleidos meltdown-proof microreactors.
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Kaleidos is designed for clean and efficient power in remote areas, capable of running for five years before needing refueling.
Now Read:<a href="https://www.benzinga.com/"> </a><a href="https://www.benzinga.com/news/24/05/38676813/future-of-deep-sea-mining-might-rest-on-international-seabed-authority-leadership-election">Future Of Deep-Sea Mining Might Rest On International Seabed Authority Leadership Election</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get connected with the Benzinga community!
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Gold King Secures Key Wyoming Permit; Ivanhoe, BHP Launch Mining Alliance; Compass Minerals Reports Financial Results And More: Wednesday's Top Mining Stories

BHP Group Limited&#8216;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) subsidiary inked a definitive Exploration Alliance Agreement&nbsp;with&nbsp;Ivanhoe Electric Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IE#NYSE">IE</a>).
As per the terms, BHP and Ivanhoe Electric plan to explore mutually agreed &#8220;Areas of Interest&#8221; or AOIs in the U.S. to identify projects within those AOIs that may&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/ac38695203/ivanhoe-electric-announces-exploration-alliance-with-bhp-to-accelerate-the-search-for-copper-and-" rel="noreferrer noopener">become 50/50 owned joint ventures.&nbsp;</a>
The companies have identified six initial AOIs in Arizona, New Mexico, and Utah, which cover an area of approximately 3,655 km.
BHP (through a wholly owned subsidiary) expects to provide $15 million to fund the&nbsp;Alliance&nbsp;for its initial three-year term, which may be extendable by mutual agreement. Any funding of BHP beyond the initial $15 million would be on a 50/50 basis.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37777463/bhp-scales-back-contractor-workforce-reportedly-trimmed-at-west-musgrave-project-in-western-australi" rel="noreferrer noopener">BHP Scales Back: Contractor Workforce Reportedly Trimmed At West Musgrave Project In Western Australia</a>
On the other hand, Ivanhoe Electric will operate the&nbsp;Alliance&nbsp;during the Project Generation Phase, but operatorship of any project will&nbsp;be mutually agreed&nbsp;upon in the future.
Ivanhoe Executive Chairman Robert&nbsp;Friedland said, &#8220;Today we announce an important Alliance with BHP, one of the world&#8217;s leading mining companies, to explore the untapped mineral wealth of the United States using our Typhoon&#x2122; and CGI technologies. BHP and Ivanhoe Electric&nbsp;have a common goal&nbsp;to find new sources of the critical minerals necessary to meet&nbsp;growing&nbsp;demand associated with the energy transition and the electrification revolution. We are excited to work together.&#8221;
Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/commodities/24/04/38472159/anglo-american-rejects-bhp-offer-gatos-silvers-mineral-findings-iperionx-installs-new-furnace" rel="noreferrer noopener">Anglo American Rejects BHP Offer; Gatos Silver&#8217;s Mineral Findings; IperionX Installs New Furnace And More: Friday&#8217;s Top Mining Stories</a>
Sonia Scarselli, BHP&#8217;s Vice President&nbsp;Exploration,&nbsp;said, &#8220;BHP&#8217;s exploration alliance with Ivanhoe Electric supports our strategy to pursue growth in future-facing commodities such as copper.&nbsp;Technology&nbsp;is set&nbsp;to play an increasingly important role in discovering the resources the world will need in the decades to come. This&nbsp;alliance&nbsp;offers a great opportunity to work with Ivanhoe Electric and the innovative technologies they have built.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38621219/glencore-anglo-american-tie-up-makes-more-sense-than-bhp-offer-analyst-says" rel="noreferrer noopener">Glencore-Anglo American Tie-Up Makes More Sense Than BHP Offer, Analyst Says</a>
Investors can gain exposure to the stock via&nbsp;Exchange Traded Concepts Trust Optica Rare Earths &amp; Critical Materials ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRIT#NYSE">CRIT</a>) and&nbsp;Amplify Lithium &amp; Battery Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BATT#NYSE">BATT</a>).
Price Action: BHP shares are down 1.57% at $56.56 at the last check Wednesday.
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What's Going On With Mining Giant BHP Shares Today?

Ivanhoe Electric Disclosed Exploration Alliance with BHP to Accelerate the Search for Copper and Other Critical Minerals in the United States

1. Anglo American rejected BHP Group's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) $39B bid, triggering a <a href="https://www.benzinga.com/m-a/24/05/38612588/potential-bidding-war-emerges-for-anglo-american-as-glencore-considers-offer">potential bidding war</a> with Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLCNF#OTC">GLCNF</a>). 
Glencore&#8217;s interest arises amid BHP&#8217;s revised approach to divest South African assets.&nbsp;
Anglo holds crucial copper reserves in Chile and Peru, with Glencore's stake in Collahuasi adding intrigue.&nbsp;
However, Glencore&#8217;s $6.9 billion Teck coal acquisition and political and regulatory complexities in South Africa heighten the situation, including upcoming national elections, complicate the matter.&nbsp;
BHP faces a May 22 deadline for a new bid.
2. Gold Resource (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/GORO#AMEX">GORO</a>) reported Q1 results from its Don David Gold Mine in Oaxaca, Mexico, and provided a corporate update. 
Key achievements included the production and sale of 3,557 ounces of gold, 216,535 ounces of silver and significant amounts of zinc, copper and lead.&nbsp;
The company holds $5.7 million in cash with no debt and $13.6 million in working capital as of March 31, 2024.&nbsp;
Challenges such as reduced plant throughput and lower recoveries were managed, and base metal prices were below expectations.&nbsp;
A net loss of $4 million or 5 cents per share was recorded for the quarter, after expenses related to exploration and drilling.&nbsp;
The total cash cost per gold equivalent ounce was $1,667, and the all-in sustaining cost was $2,295.
Also Read:<a href="https://www.benzinga.com/topic/mining"> </a><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38591175/barrick-golds-golden-cross-opportunity-analyst-sees-ample-opportunity-for-catch-up-">Barrick Gold&#8217;s Golden Cross Opportunity — Analyst Sees &#8216;Ample Opportunity For Catch Up&#8217; Post Q1</a>
3. The U.S. Department of Commerce announced preliminary findings that aluminum extrusion producers from 14 countries, including China, India and Italy, sold products in the U.S. at less-than-fair value. 
The U.S. Aluminum Extruders Coalition and various unions support the imposition of duties to protect U.S. producers and workers.&nbsp;
These measures are crucial to counteract the widespread dumping practices harming U.S. industry, with ongoing efforts to ensure accurate final determinations of dumping margins.
Bonnell Aluminum, a subsidiary of Tredegar (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TG#NYSE">TG</a>), was pleased with the ruling to institute preliminary dumping duties on unfairly traded imports of aluminum extrusions.
4. Nexa Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEXA#NYSE">NEXA</a>) reported a quarterly loss of 15 cents per share, marking a 1400% increase in losses from the previous year. 
Despite this, their $580 million in quarterly sales exceeded expectations by 1.76% but showed a 13.08% decline from the prior year.&nbsp;
The company also faced two fatal incidents at its El Porvenir and Vazante mines.&nbsp;
Amid challenges like weak market conditions and fluctuating commodity prices, Nexa continued advancing key projects such as the Aripuanã ramp-up and the Cerro Pasco Integration Project, leading to a 59% increase in Mineral Reserves at the complex and a 10% year-over-year increase in overall Mineral Reserves, totaling 110 million tons.
Now Read:<a href="https://www.benzinga.com/"> </a><a href="https://www.benzinga.com/m-a/24/04/38380999/exclusive-why-this-uranium-bull-market-is-different-weve-really-got-to-start-developing-mines-says-m">EXCLUSIVE: Why This Uranium Bull Market Is Different — &#8216;We&#8217;ve Really Got To Start Developing Mines,&#8217; Says Madison Metals CEO</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get connected with the Benzinga community!
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Anglo American Potential Bidding War; Gold Resource Q1 Results; US Acts Against Aluminum Dumping And More: Friday's Top Mining Stories

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

Anglo American (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTCQX">NGLOY</a>) could be at the center of a bidding war with commodities giant Glencore (OTCPK: GLCNF) after it rejected BHP&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) <a href="https://www.benzinga.com/news/large-cap/24/04/38459129/anglo-american-rejects-bhps-highly-unattractive-bid-sets-proposal-deadline-for-may-22">$39-billion offer</a>.
What Happened: According to sources cited <a href="https://www.reuters.com/markets/commodities/glencore-studying-an-approach-anglo-american-sources-say-2024-05-02/">by</a> Reuters, discussions within Glencore are internal and preliminary at this stage. 
With Glencore potentially entering the race and BHP contemplating an improved offer, Anglo American finds itself in a prime position to benefit from a potential bidding war.
BHP dispatched its executive team, including CEO Mike Henry, to South Africa to discuss its proposal. The company&#8217;s revised approach focuses on divesting Anglo&#8217;s South African assets in platinum and iron ore before a full takeover, which concerned local officials and shareholders.
See Also:<a href="https://www.benzinga.com/news/24/05/38568845/will-copper-enter-a-structural-deficit"> Will Copper Enter a Structural Deficit?</a>
Why It Matters: Anglo American owns extensive copper assets in Chile and Peru — key players in the global copper market. Copper is a critical metal for clean energy technologies and is experiencing heightened demand due to the green transition.
Furthermore, Glencore already co-owns the Collahuasi mine in Chile with Anglo American, which holds some of the world&#8217;s largest copper reserves. 
However, the company is finalizing a separate $6.9-billion acquisition of Teck's coal assets, adding a layer of complexity to its potential involvement.
The political and regulatory landscape in South Africa is complex, especially with upcoming national elections and heightened scrutiny on corporate restructuring.
Commenting on the matter, Hudbay Minerals (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HBM#NYSE">HBM</a>) CEO Peter Kukielski pointed at the growing valuation of copper assets as an argument for a stronger premium.
&#8220;The deal has increased the valuation of copper assets and underscores major mining companies&#8217; belief that copper prices will be significantly higher in the future,&#8221; Kukielski said for Reuters. Hudbay was among the few Canadian miners engaged in domestic acquisition last year, buying Copper Mountain in a $439 million all-share transaction.
What&#8217;s Next: BHP has a May 22 deadline to submit a new formal bid.
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!
Now Read:<a href="https://www.benzinga.com/markets/equities/24/05/38605805/peter-schiff-highlights-pandemic-darling-stocks-98-5-decline-to-make-a-point-about-mispriced-gol"> Peter Schiff Highlights Pandemic Darling Stock&#8217;s 98.5% Decline To Make A Point About Mispriced Gold Mining Stocks: &#8216;Same Situation Exists Today&#8217;</a>
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Potential Bidding War Emerges For Anglo American As Glencore Considers Offer

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Shares of metals and materials stocks are trading lower amid a drop in the price of multiple different metals.

<h3 class="wp-block-heading">BHP&#8217;s Settlement</h3>
<ul>
<li>Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>), BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) and their joint venture Samarco have offered Brazilian authorities a $24.88 billion settlement proposal for the 2015 Mariana dam disaster.</li>
<li>The settlement includes $24.88 billion in total payments; $7.29 billion was already disbursed. The plan includes $14.08 billion for governments and $3.52 billion for future obligations, aiming for a final agreement by mid-2024. </li>
<li>This follows an initial 2016 agreement that established a foundation for reparations.</li>
</ul>
Also Read:<a href="https://www.benzinga.com/topic/mining"> </a><a href="https://www.benzinga.com/m-a/24/04/38469869/elliott-managements-1b-anglo-american-stake-ups-ante-as-mining-megamerger-collapses">Elliott Management&#8217;s $1 Billion Anglo American Stake Ups Ante As Mining Megamerger Collapses</a>
<h3 class="wp-block-heading">5E Achieves Milestone, CEO Says</h3>
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<li>5E Advanced Materials (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEAM#NASDAQ">FEAM</a>) announced the first production of boric acid at its 5E <a href="https://www.benzinga.com/news/24/04/38487802/5e-advanced-materials-announces-first-boric-acid-production-and-extended-waiver-of-cash-covenant">Boron Americas Complex</a> and amended its senior secured convertible notes to extend a waiver on the cash covenant.&nbsp;</li>
<li>CEO Susan Brennan says the achievement established a U.S.-based boron supply chain. The company will now begin customer qualification for its boric acid product and anticipates scaling up deliveries upon successful validation. </li>
<li>The financial waiver on the notes is extended until Dec. 31, 2024. Afterward, the company must maintain a cash balance of at least $7.5 million.</li>
</ul>
<h3 class="wp-block-heading">GoldMining&#8217;s Burdensome Royalty</h3>
<ul>
<li>GoldMining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDG#NYSE">GLDG</a>) reduced a burdensome royalty on its Crucero gold project in Peru from a maximum 5% to 3%, with the option to reduce it further to 1% for an additional $200,000 within ten years. </li>
<li>The original royalty was established with gold prices above $800 per ounce.&nbsp;</li>
<li>This strategic move initially cost $70,000 and aims to enhance the project's value and support the company's broader strategy in the Americas.</li>
</ul>
<h3 class="wp-block-heading">U.S. Gold Shareholders Approve 5 Directors</h3>
<ul>
<li>U.S. Gold (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/USAU#NASDAQ">USAU</a>) announced the outcomes of its annual shareholder meeting where shareholders approved the election of five directors. </li>
<li>The shareholders also ratified Marcum, LLP as the independent accountant for the fiscal year ending Tuesday, April 30. </li>
<li>Chairman Luke Norman expressed gratitude to shareholders and highlighted the company&#8217;s focus on advancing its CK Gold Project in Wyoming and exploration projects in Nevada and Idaho.</li>
</ul>
Now Read:<a href="https://www.benzinga.com/"> </a><a href="https://www.benzinga.com/news/large-cap/24/04/38441405/gold-glitters-on-stagflation-tailwinds-newmont-soars-13-in-biggest-gain-post-covid-leads-mining-se">Gold Glitters On Stagflation Tailwinds: Newmont Soars 13% In Biggest Post-Covid Gain, Leads Mining Sector Surge</a>
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BHP In $25B Settlement; 5E Advanced Materials Begins Boric Acid Production; GoldMining Reduces Crucero Royalty And More: Monday's Top Mining Stories

First Quantum Minerals (OTCPK: FQVLF) is shutting down the Ravensthorpe nickel mine in Western Australia.
The closure follows months of production suspension. 
First Quantum&#8217;s original plan to process stockpiles and consider resuming mining by 2025 has been scrapped. The company blamed ongoing financial losses and the forecast of lower <a href="https://www.benzinga.com/topic/nickel">nickel</a> prices in the coming years.
The site was &#8220;incurring significant current and projected losses,&#8221; a company spokesperson <a href="https://www.abc.net.au/news/2024-04-29/ravensthorpe-nickel-mine-to-close/103781186">told</a> the Australian Broadcasting Corp.
See Also:<a href="https://www.benzinga.com/news/24/04/38479460/mining-stocks-hit-new-highs-as-copper-and-gold-exploration-show-promising-potential"> Mining Stocks Hit New Highs as Copper and Gold Exp</a><a href="https://www.benzinga.com/news/24/04/38479460/mining-stocks-hit-new-highs-as-copper-and-gold-exploration-show-promising-potential">loration Show Promising Potential</a>
Nickel prices, crucial for the profitability of such mines, have seen a significant drop due to increased production from cheaper sources in Indonesia. Nickel currently trades at $19,180 per ton, over 30% below the 2023 highs.
While Ravensthorpe Shire president Tom Major, accustomed to the cyclical nature of the mining industry, expressed cautious optimism about the community&#8217;s ability to bounce back, the short-term outlook is undeniably bleak. 
Meanwhile, mining analyst Tim Treadgold views the closure as a predictable outcome for a high-cost project.
&#8220;Ravensthorpe was always one of the more likely mines to close. It&#8217;s surprising it kept going as long as it has,&#8221; he said for ABC. 
Treadgold highlighted that other nickel operations in Western Australia are also experiencing difficulties, pointing at as BHP&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) Nickel West as the next operation under pressure.
While government subsidies provide little more than a &#8220;bandaid fix,&#8221; BHP&#8217;s 3,000-strong workforce in the Goldfields and Kwinana region will be on alert, especially given the potential <a href="https://www.benzinga.com/news/large-cap/24/04/38459129/anglo-american-rejects-bhps-highly-unattractive-bid-sets-proposal-deadline-for-may-22">Anglo American acquisition</a> that could see the management less likely to keep the loss-making businesses operating.
Ravensthorpe faced hardship in the past. BHP shuttered the mine in 2009, leaving 1,800 people jobless. The previous First Quantum&#8217;s closure cost 450 jobs in 2017, while the current shutdown will eliminate about 330 jobs.
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to licensing@benzinga.com to get started!
Also read:<a href="https://www.benzinga.com/m-a/24/04/38469869/elliott-managements-1b-anglo-american-stake-ups-ante-as-mining-megamerger-collapses"> Elliott Management&#8217;s $1B Anglo American Stake Ups Ante As Mining Megamerger Collapses</a>

FQVLF

First Quantum Minerals Closes Ravensthorpe Nickel Mine, Cuts 330 Jobs

Legal

Global

Brazil Authorities Want Vale, BHP To Bump Up Mariana Settlement Offer To 137 Bln Reais, Says Minas Gerais State Top Prosecutor; Brazil Authorities Expect To Reach Final Deal With Vale, Bhp Over Mariana Disaster In H1 2024, Says Prosecutor

<a href="https://www.usnews.com/news/world/articles/2024-04-29/vale-bhp-propose-25-billion-deal-to-settle-reparations-for-mariana-disaster#:~:text=SAO%20PAULO%20(Reuters)%20%2D%20Vale,people%20and%20left%20hundreds%20homeless.">https://www.usnews.com/news/world/articles/2024-04-29/vale-bhp-propose-25-billion-deal-to-settle-reparations-for-mariana-disaster#:~:text=SAO%20PAULO%20(Reuters)%20%2D%20Vale,people%20and%20left%20hundreds%20homeless.</a>
Vale, BHP and their joint venture Samarco have presented Brazilian authorities with a settlement proposal related to reparations for the 2015 Mariana tailings dam burst, which killed 19 people and left hundreds homeless.
The proposal, the Brazilian mining giant said in a securities filing on Monday, foresees the total payment of 127 billion reais ($24.88 billion), including 37 billion reais already disbursed.

"Vale, BHP Propose $25B Deal To Settle Reparations For Mariana Disaster" - U.S. News

<h1 class="wp-block-heading">Top Stories for April 26, 2024:</h1>
<ol>
<li>Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTC">AAUKF</a>) rejected the <a href="https://www.benzinga.com/news/large-cap/24/04/38459129/anglo-american-rejects-bhps-highly-unattractive-bid-sets-proposal-deadline-for-may-22">$39-billion all-share takeover</a> bid from BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), calling it &#8220;highly unattractive&#8221; and undervalued.&nbsp;</li>
</ol>
The offer included conditions like demerging Anglo American's stakes in Amplats and Kumba Iron Ore and Anglo&#8217;s board cited the bid as opportunistic, dilutive to shareholder value and risky.
Despite BHP claiming a 31% premium, Anglo emphasized the proposal underestimated the value of its significant copper holdings.
See Also: <a href="https://www.benzinga.com/m-a/24/04/38469869/elliott-managements-1b-anglo-american-stake-ups-ante-as-mining-megamerger-collapses">Elliott Management&#8217;s $1B Anglo American Stake Ups Ante As Mining Megamerger Collapses</a>
<ol start="2">
<li>Gatos Silver Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GATO#NYSE">GATO</a>) updated on its exploration at the Los Gatos district in Mexico, highlighting new mineral intercepts at the Cerro Los Gatos mine and appointing Chad Yuhasz as vice president. </li>
</ol>
CEO Dale Andres noted these findings will enhance the next resource estimate due in the third quarter of 2024.&nbsp;
Key intercepts included significant silver, zinc, lead, gold and copper grades.&nbsp;
The company is also preparing for expanded drilling in the second quarter of 2024 and has made progress in Greenfields exploration, with initial results showing potential deeper mineralization.
Also Read:<a href="https://www.benzinga.com/topic/mining"> </a><a href="https://www.benzinga.com/news/24/04/38435800/standard-lithium-activates-cutting-edge-plant-paves-way-for-cleaner-mining">Standard Lithium Activates Cutting-Edge Plant, Paves Way For Cleaner Mining</a>
<ol start="3">
<li>IperionX ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IPX#NASDAQ">IPX</a>) successfully installed its commercial-scale HAMR titanium furnace at its new Titanium Manufacturing Campus in Virginia.&nbsp;</li>
</ol>
The furnace offers advantages like lower temperatures, higher efficiencies, shorter cycles and better product quality.&nbsp;
With the campus construction on schedule, the furnace commissioning is set for the second quarter of 2024, and production of titanium powder will start by mid-2024.&nbsp;
IperionX aims to develop a U.S. titanium supply chain using scrap and locally sourced minerals to produce high-performance titanium products more efficiently and with reduced environmental impact.
<ol start="4">
<li>Hycroft Mining Holding Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HYMC#NASDAQ">HYMC</a>) will be added to the Solactive Global Silver Miners Total Returns Index starting May 1, 2024.&nbsp;</li>
</ol>
Companies eligible for the Silver Index must have significant operations in silver mining, with substantial current or anticipated future revenues from silver mining or closely related activities.
This inclusion recognizes Hycroft&#8217;s significant operations in silver mining and its recent high-grade silver discovery at Hycroft Mine, providing its investors with greater liquidity and trading flexibility.
Now Read:<a href="https://www.benzinga.com/"> </a><a href="https://www.benzinga.com/news/24/04/38434933/nigeria-cracks-down-on-dormant-mining-titles-to-stop-license-racketeering">Nigeria Cracks Down On Dormant Mining Titles To Stop &#8216;License Racketeering&#8217;</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get connected with the Benzinga community! 
Photo: Shutterstock

AAUKF

GATO

Hycroft Mining Holding Corporation - Class A Common Stock

HYMC

Anglo American Rejects BHP Offer; Gatos Silver's Mineral Findings; IperionX Installs New Furnace And More: Friday's Top Mining Stories

Activist investor Elliott Management has quietly built a $1 billion stake in Anglo American (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTCQX">NGLOY</a>), adding pressure to the UK-listed mining giant after it became the target of a $39 billion takeover bid from BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>). This development emerged after Anglo American's board <a href="https://www.benzinga.com/news/large-cap/24/04/38459129/anglo-american-rejects-bhps-highly-unattractive-bid-sets-proposal-deadline-for-may-22">rejected BHP&#8217;s offer</a>, deeming it &#8220;highly unattractive&#8221; due to its undervaluation of the company&#8217;s prospects and its complex structure.
According <a href="https://www.bloomberg.com/news/articles/2024-04-26/activist-elliott-said-to-build-1-billion-anglo-american-stake">to</a> Bloomberg, Elliott Management, led by billionaire Paul Singer, has amassed this holding over the last months. Persons with knowledge of the matter requested anonymity due to the confidential nature of the information. The UK takeover rules require shareholders involved in potential deals to disclose their holdings if they hold more than 1% in either the target or bidding firm.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38447657/copper-is-a-hot-commodity-bidding-war-for-anglo-american-may-emerge-after-bhps-low-">Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP&#8217;s &#8216;Low Ball&#8217; Offer — &#8216;Let The Games Begin&#8217;</a>
Elliott has a history of taking sizable positions and advocating for strategic changes. In 2017, they started pressuring BHP to divest its oil assets and prioritize shareholder returns, resulting in a merger of their petroleum business with Woodside Energy Group. With this size of the stake, the firm would be among the top 10 shareholders of Anglo American, which has seen its stock surge as high as 6.7% on Friday.
This situation isn&#8217;t Elliott&#8217;s first venture into the mining sector. In 2022, the activist hedge fund was involved with Kinross Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KGC#NYSE">KGC</a>), prompting it to ramp up its share repurchase program significantly. It also holds a 66.6% stake in Triple Flag Precious Metals (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFPM#NYSE">TFPM</a>), a financial solutions provider in the sector.
The current involvement comes as copper prices hit $10,000 per ton, marking the first time in two years that the metal has reached this level. This spike is fueled by investor anticipation of a significant deficit in copper supplies due to increasing demand driven by green energy initiatives.
BHP&#8217;s proposed takeover, coupled with the rising price of copper, strengthens Anglo American&#8217;s bargaining position. Whether Elliott Management intends to push for similar strategic changes within Anglo-American or simply capitalize on the future value of copper remains to be determined.
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!
Also read:<a href="https://www.benzinga.com/news/24/04/38435800/standard-lithium-activates-cutting-edge-plant-paves-way-for-cleaner-mining"> Standard Lithium Activates Cutting-Edge Plant, Paves Way For Cleaner Mining</a>
Photo: Shutterstock

Hedge Funds

TFPM

Elliott Management's $1B Anglo American Stake Ups Ante As Mining Megamerger Collapses

Top Stories for April 25, 2024:
1. Reliance (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RS#NYSE">RS</a>) <a href="https://www.benzinga.com/wiim/24/04/38432505/reliance-steel-aluminum-shares-are-trading-lower-after-the-company-reported-worse-than-expected-q1-f">reported Q1 results</a> with net sales of $3.64 billion and a 10.3% increase in tons sold. 
The company recorded a gross profit margin of 31% and earnings per share (EPS) of $5.23, with a non-GAAP EPS of $5.30.&nbsp;
Reliance also completed the acquisitions of Cooksey Iron &amp; Metal, American Alloy Steel and Mid-West Materials in early 2024. 
Despite macroeconomic uncertainties, the company projects continued demand growth in its key markets for Q2 2024, expecting a 2.5% to 4.5% increase in tons sold and a slight decrease in average selling price per ton.&nbsp;
Reliance increased its dividend by 10%, marking 65 consecutive years of payouts.
2. Newmont (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) reported strong Q1 2024 results, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in operational cash. 
The company declared a 25 cents per share dividend and remains on track to meet its annual production and cost guidance.&nbsp;
Newmont also reported $776 million in operational cash flow, net income of $179 million and adjusted EBITDA of $1.7 billion.&nbsp;
Newmont sold its non-core Lundin Gold financing facilities for $330 million and delivered $105 million in synergies from the Newcrest acquisition, aiming for $500 million annually.&nbsp;
The company also advanced its ESG reporting with its latest sustainability updates.
Also Read:<a href="https://www.benzinga.com/topic/mining"> </a><a href="https://www.benzinga.com/markets/asia/24/04/38412172/will-indonesias-new-president-continue-nickel-policy-which-undercuts-competitors">Will Indonesia&#8217;s New President Continue Nickel Policy, Which Undercuts Competitors?</a>
3. BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), the world&#8217;s largest mining company, proposed an acquisition of Anglo American valued at £27 billion ($39 billion). 
The offer involves a stock exchange and depends on Anglo divesting its South African platinum and iron ore businesses.&nbsp;
This merger could mark BHP&#8217;s return to major deals under CEO Mike Henry, potentially creating the world&#8217;s top copper producer.&nbsp;
However, regulatory challenges may arise, as copper is considered a strategic resource. Anglo American is reviewing the proposal without guaranteeing acceptance.
4. Kaiser Aluminum (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAU#NASDAQ">KLAU</a>) reported Q1 results, including net sales of $738 million, conversion revenue of $367 million, net income of $25 million ($1.51 per diluted share), adjusted net income of $17 million ($1.02 per diluted share) and adjusted EBITDA of $62 million with a 17% margin. 
The company noted improved cost controls and efficiencies, and maintained its full-year 2024 outlook.&nbsp;
CEO Keith A. Harvey highlighted strong performance in general engineering and automotive sectors, with aerospace slightly below expectations, reinforcing ongoing strategic investments for growth in 2025.
Now Read:<a href="https://www.benzinga.com/"> </a><a href="https://www.benzinga.com/m-a/24/04/38404166/energy-fuels-secures-critical-mineral-supply-chain-via-240m-base-resources-deal">Energy Fuels Secures Critical Mineral Supply Chain Via $240M Base Resources Deal</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get connected with the Benzinga community!
Image generated using artificial intelligence via Midjourney.

Earnings

KLAU

Reliance, Newmont Report Q1 Financial Results; BHP Proposes Acquisition Of Anglo American And More: Thursday's Top Mining Stories

Anglo American (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTCQX">NGLOY</a>) rebuffed a $39-billion takeover proposal from BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), dismissing the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38447657/copper-is-a-hot-commodity-bidding-war-for-anglo-american-may-emerge-after-bhps-low-">offer as "highly unattractive."</a> 
What Happened: BHP&#8217;s bid, announced Thursday, April 25, involved an all-share offer. One of the conditions requires Anglo American to complete two separate demergers of its shareholdings in Anglo American Platinum (Amplats) and Kumba Iron Ore (Kumba).
The Anglo American board of directors unanimously rejected BHP&#8217;s bid, arguing it undervalues the company&#8217;s prospects.
"The BHP proposal is opportunistic and fails to value Anglo American's prospects while significantly diluting the relative value upside participation of Anglo American's shareholders relative to BHP's shareholders,&#8221; <a href="https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group-v5/PLC/microsite/rejection-of-bhp-proposal.pdf"> stated</a> Anglo board chairman Stuart Chambers.
&#8220;The proposed structure is also highly unattractive,&#8221; he added, citing &#8220;substantial uncertainty and execution risk&#8221; among shareholders and stakeholders.
See Also:<a href="https://www.benzinga.com/news/24/04/38390383/copper-prices-approach-2-year-highs-whats-behind-analysts-12-000-price-prediction-for-2026"> Copper Prices Approach 2-Year Highs &#8211; What&#8217;s Behind Analyst&#8217;s $12,000 Price Prediction For 2026?</a>
BHP framed the offer as a 31% premium to Anglo American&#8217;s latest market price. However, Anglo American contends that the proposal fails to capture the value of its portfolio, particularly significant holdings in copper.
"Anglo American is well positioned to create significant value from its portfolio of high-quality assets that are well aligned with the energy transition and other major demand trends," Chambers said, noting the copper's presence in 30% of the company's production.
Copper is a critical metal driving the global energy transition. Anglo American possesses ownership interests in four of the world&#8217;s largest copper mines: 
<ul>
<li>Collahuasi (44%)</li>
<li>Los Bronces (50.1%)</li>
<li>El Soldado (50.1%)</li>
<li>Quellaveco (60%).</li>
</ul>
See Also: <a href="https://www.benzinga.com/news/large-cap/24/04/38441405/gold-glitters-on-stagflation-tailwinds-newmont-soars-13-in-biggest-gain-post-covid-leads-mining-se">Gold Glitters On Stagflation Tailwinds &#8211; Newmont Soars 13% In Biggest Post-Covid Gain, Leads Mining Sector Surge</a>
Why It Matters: The proposed merger has the potential to be the biggest shakeup in the global mining industry in over a decade. 
However, as reported<a href="https://www.ft.com/content/ca336820-c0d3-400b-8ed3-666f4caec2b7"> by</a> The Financial Times, Berenberg&#8217;s Richard Hatch was unconvinced that Anglo American presents significant turnaround opportunities for BHP, quoting limited operational synergies.
Legal &amp; General Investment Management, one of Anglo&#8217;s largest shareholders, also weighed in.
BHP&#8217;s approach &#8220;highly opportunistic&#8221; and &#8220;unattractive,&#8221; the asset manager said. The proposed exchange ratio undervalues Anglo American and further industry consolidation will not accelerate investment as needed, the firm argued.
What&#8217;s Next: Under the UK Takeover Code, BHP has until 5 p.m. on May 22 to respond by announcing a firm intention to make an offer for Anglo or to withdraw its bid entirely.
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to licensing@benzinga.com to get started!
Also read:<a href="https://www.benzinga.com/news/24/04/38435800/standard-lithium-activates-cutting-edge-plant-paves-way-for-cleaner-mining"> Standard Lithium Activates Cutting-Edge Plant, Paves Way For Cleaner Mining</a>
Image: Shutterstock

Anglo American Rejects BHP's 'Highly Unattractive' Bid, Sets Proposal Deadline For May 22

<a href="https://www.bloomberg.com/news/articles/2024-04-26/activist-elliott-said-to-build-1-billion-anglo-american-stake">https://www.bloomberg.com/news/articles/2024-04-26/activist-elliott-said-to-build-1-billion-anglo-american-stake</a>
&nbsp;
<a href="https://www.bloomberg.com/quote/1802835D:US">Elliott Investment Management</a> has built a roughly $1 billion stake in <a href="https://www.bloomberg.com/quote/AAL:LN">Anglo American Plc</a>, the UK-listed miner that's received a takeover approach from Australia's <a href="https://www.bloomberg.com/quote/BHP:AU">BHP Group Ltd.</a>, people with knowledge of the matter said.
The activist hedge fund led by Paul Singer amassed the holding over recent months, the people said, asking not to be identified discussing confidential information. The size of the stake puts Elliott among Anglo American's 10 biggest shareholders, data compiled by Bloomberg show.

'Activist Elliott Builds $1B Anglo American Stake; Anglo American Has Received Takeover Approach From BHP; Hedge Fund Has Been Amassing Stake Over Recent Months' - Bloomberg News

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

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

<a href="https://www.reuters.com/markets/deals/anglo-american-does-not-find-bhp-39-bln-offer-attractive-sources-say-2024-04-25/#:~:text=LONDON%2C%20April%2025%20(Reuters),investors%20dismissed%20it%20as%20opportunistic.">https://www.reuters.com/markets/deals/anglo-american-does-not-find-bhp-39-bln-offer-attractive-sources-say-2024-04-25/#:~:text=LONDON%2C%20April%2025%20(Reuters),investors%20dismissed%20it%20as%20opportunistic.</a>
&nbsp;
Anglo American does not consider a proposed $39 billion takeover offer from BHP Group as attractive, two sources told Reuters, as some large investors dismissed it as opportunistic.
BHP on Thursday offered <a href="https://www.reuters.com/markets/deals/bhp-considering-potential-buyout-offer-anglo-american-bloomberg-reports-2024-04-24/">Anglo's shareholders</a> 25.08 pounds ($31.39) per share, or $38.8 billion, a premium of 31% to the market close on Wednesday. It would take over Anglo after a spin-off of two assets.
Speaking on condition of anonymity because the matter is private, one of the sources said the offer did not address the complexities of demerging the Anglo American Platinum and Kumba Iron Ore businesses in South Africa.
BHP has until May 22 to come back with a binding bid, but Anglo's board will give a formal response in the coming days.
For now, Anglo, which has a market value of $36.7 billion, said it would be reviewing the offer, without elaborating.
The proposed tie-up would create a group with around one tenth of the global output of copper, which is in demand for its use in electric vehicles and new technologies, such as automation and artificial intelligence.
BHP has made the offer as the company continues a strategic <a href="https://www.reuters.com/markets/commodities/anglo-american-full-year-profit-plunges-by-94-2024-02-22/">review</a> of its assets started in February in response to a 94% fall in annual profit and a series of writedowns caused by to lower commodity demand.
One of the source said Anglo American's management was continuing "full steam ahead" with the review.

"Anglo American Does Not Find BHP $39B Offer Attractive, Sources Say" - Reuters News

On Wednesday, April 24, the U.S. stock markets closed mixed&nbsp;as&nbsp;the S&amp;P 500&nbsp;closed&nbsp;higher, influenced by rising Treasury yields following a $70 billion auction and positive tech earnings.&nbsp;
The Dow fell, but the Nasdaq rose, with consumer staples and real estate sectors leading gains.
According to economic data, U.S. mortgage applications dropped 2.7% in the week ending April 19. Meanwhile, orders for durable goods increased by 2.6% in March, and crude oil inventories unexpectedly fell by 6.368 million barrels, defying expectations of a gain.
Seven of the eleven S&amp;P 500 sectors saw advances, with the leading performances in consumer staples, utilities, consumer discretionary, and real estate stocks.
The Dow Jones Industrial Average declined 0.11% to close at 38,460.92. The S&amp;P 500 rose 0.02%, ending the day at 5,071.63, and the Nasdaq Composite climbed 0.10%, finishing the session at 15,712.75.
Asian Markets Today
<ul>
<li>On Thursday, Japan&#8217;s Nikkei 225 index closed down 2.16% at 37,628.48. Investors eyed the critical Bank of Japan monetary policy decision on Friday amidst a weakening yen and surging oil prices.</li>
<li>Australia markets closed for ANZAC Day.</li>
<li>India&#8217;s Nifty 50 closed higher by 0.75% at 22,570.35, and the Nifty 500 rose 0.66%, closing at 20,867.90.</li>
<li>China&#8217;s Shanghai Composite gained 0.27% to end the session at 3,052.90, and the Shenzhen CSI 300 rose 0.25%, closing at 3,530.28.</li>
<li>Hong Kong&#8217;s Hang Seng Index gained 0.48%, concluding the day at 17,284.54.</li>
</ul>
Eurozone at 06:00 AM ET
<ul>
<li>The European STOXX 50 index was down 0.51%.</li>
<li>Germany&#8217;s DAX declined 0.53%.</li>
<li>France&#8217;s CAC slipped 0.61%.</li>
<li>U.K.&#8217;s FTSE 100 traded higher by 0.64%.</li>
<li>European stocks dipped as traders reacted to mixed earnings from major companies, while the UK&#8217;s FTSE 100 gained, boosted by&nbsp;Anglo American&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38423994/worlds-largest-miner-bhp-bids-to-takeover-anglo-american-as-hunt-for-resources-intensify" rel="noreferrer noopener">surging after a buyout offer from BHP Group</a>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>).</li>
</ul>
Commodities at 06:00 AM ET
<ul>
<li>Crude Oil WTI was trading lower by 0.04 % at $82.78/bbl, and Brent was up 0.01% at $88.03 bbl.</li>
<li>Natural Gas declined 0.40% to $1.197.</li>
<li>Gold was trading lower by 0.01% at $2,338.05, Silver gained 0.20% to $27.398, while Copper was up 1.44% at $4.5215.</li>
</ul>
US Futures at 06:00 AM ET&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dow futures were down 0.37%, S&amp;P 500 futures slid 0.53%, and Nasdaq 100 Futures fell 0.82%.
Forex at 06:00 AM ET
The U.S. Dollar Index declined 0.24% to 105.60, USD/JPY was up 0.19% to 155.62, and USD/AUD slipped 0.46% to 1.5319.
Photo via Shutterstock

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Asia Markets Mixed, Europe Dips; Copper Prices Rise On BHP's Buyout Offer To Anglo American - Global Markets Today While US Slept

BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), the world&#8217;s largest mining company, has initiated a bid to acquire rival Anglo American Plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTC">AAUKF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>), potentially triggering significant upheaval in the industry after years of dormancy.
Anglo American, valued at £27 billion ($34 billion),&nbsp;<a target="_blank" href="https://www.angloamerican.com/media/press-releases/2024/25-04-2024" rel="noreferrer noopener">disclosed</a>&nbsp;that it had received an unsolicited merger proposal&nbsp;in the form of&nbsp;a stock exchange offer.
The proposed merger is contingent on Anglo divesting its South African platinum and iron ore units.
If successful, this deal would signify a resurgence in large-scale transactions for BHP, which, under CEO Mike Henry, has rekindled its appetite for transformative acquisitions in recent years, according to a report from&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-24/bhp-group-is-said-to-weigh-potential-takeover-of-anglo-american?srnd=homepage-asia&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
The report further noted that a merger with Anglo would establish the world&#8217;s leading copper producer, positioning itself to meet the surging demand from emerging energy&nbsp;sectors,&nbsp;while potentially attracting other competitors seeking to bolster their output.
Anglo American, long identified as an attractive target among&nbsp;major&nbsp;mining firms, possesses substantial copper operations in South America, a coveted asset in an industry focused on augmenting reserves and production.
Nevertheless, its intricate corporate structure and diverse commodity portfolio,&nbsp;coupled with&nbsp;significant exposure to South Africa,&nbsp;have deterred suitors, as per the report.
BHP produced approximately 1.2 million tons of copper in 2023, while Anglo yielded 826,000 tons, positioning the combined entity to command around 10% of&nbsp;global&nbsp;mine supply.
However, regulatory hurdles loom as governments view copper as a strategic resource, the report mentioned.
Anglo American&nbsp;stated that its board is evaluating the proposal, with no assurance of a forthcoming offer.
BHP&nbsp;stock gained over 3% in the last 12 months. Investors can gain exposure to the stock via Pacer&nbsp;Trendpilot International ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PTIN#NYSE">PTIN</a>) and&nbsp;Avantis International Equity ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVDE#NYSE">AVDE</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/commodities/24/03/37789877/bhp-to-slash-australian-workforce-as-nickel-market-downturn-continues" rel="noreferrer noopener">BHP To Slash Australian Workforce As Nickel Market Downturn Continues</a>
Price Action: BHP shares are trading lower by 3.12% at $57.39 in premarket at&nbsp;the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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