Core Viewpoint - CMC Metals Ltd. has entered into an option agreement with Coeur Silvertip Holdings, allowing Coeur to undertake a significant exploration program on the Silverknife Property in British Columbia, with the potential to earn a 75% interest in the property [1][2][4]. Agreement Details - Coeur can earn a 75% interest in the Silverknife Property by committing a total of $4,050,000, which includes $500,000 in cash payments and $3,550,000 in exploration expenditures [2]. - The agreement outlines specific payment and expenditure milestones, with a cumulative total of $3,550,000 in exploration expenditures and $500,000 in option payments required to earn the 75% interest [2]. - Coeur has the option to purchase the remaining 25% interest for an additional $2,250,000 or enter into a joint venture arrangement with CMC [2]. Exploration Plans - Coeur will be the project operator and plans to compile existing data and conduct additional airborne geophysical surveys to identify polymetallic mineralization similar to that found at its Silvertip Mine [5]. - A five-year exploration permit is in place for the Silverknife Property, expiring on March 31, 2028 [5]. Historical Exploration Data - CMC has previously conducted a SkyTEM geophysical survey, two ground gravity surveys, and a drill program totaling 2,146.3 meters, identifying four primary CRD targets [6]. - Historical drilling at the Silverknife Prospect has shown significant mineralization, including intersections of high-grade silver, lead, and zinc [7]. Company Background - CMC Metals Ltd. focuses on high-grade polymetallic deposits in British Columbia, Yukon, and Newfoundland, with the Silverknife project being part of the emerging Rancheria Silver District [9].

With the market rocketing to all-time highs, it can feel like any stock you decide to invest in will go straight up. That could not be further from the case. There are copious risks still out there in the market. When the euphoria following the election wears off, the tide will come in. When the pullback arrives, you want to be ready to buy stocks with strong earnings trends on the dip. You’ll also want to avoid stocks which have seen their earnings move in the wrong direction.Today’s Bear of the Day is a s ...

MIAMI, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Longeveron Inc. (NASDAQ: LGVN), a clinical stage regenerative medicine biotechnology company developing cellular therapies for life-threatening and chronic aging-related conditions, today announced that it has appointed Devin Blass as Chief Technology Officer (CTO) and Senior Vice President of Chemistry, Manufacturing, and Controls (CMC), effective December 2, 2024. In this role, he will lead the Company’s technological and manufacturing strategies. “We are delighted ...

VANCOUVER, British Columbia, Nov. 06, 2024 (GLOBE NEWSWIRE) -- CMC Metals Ltd. (TSX-V: CMB) (Frankfurt:ZM5N) (“CMC” or the “Company”) is pleased to announce the results of its 2024 Annual and Special General Meeting (“AGM”) of shareholders held on September 25, 2024. Shareholders approved all the resolutions detailed in the management information circular of the Company (the “Circular”), namely: Electing all the nominees to the Board of Directors of the Company.Appointing Manning Elliott LLP as auditor of t ...

IRVING, Texas, Nov. 5, 2024 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today issued a statement in response to the jury verdict reached in the Pacific Steel Group v. Commercial Metals Co. (N.D. Cal.) litigation. Pacific Steel Group ("Pacific Steel") filed this lawsuit claiming, among other things, various restraints on trade by CMC.  A trial on Pacific Steel's claims began on October 21st and concluded today with a verdict in favor of Pacific Steel in the amount of $110 million, which will be tre ...

Core Viewpoint - The Zacks Steel Producers industry is facing significant challenges due to a sharp decline in steel prices and soft demand, particularly in China, amid an economic slowdown [1][4][5]. Industry Overview - The Zacks Steel Producers industry serves various end-use sectors, including automotive, construction, and industrial machinery, with steel products such as hot-rolled and cold-rolled coils, reinforcing bars, and mechanical tubing [3]. - Steel is primarily produced using Blast Furnace and Electric Arc Furnace methods, with the construction sector being the largest consumer, accounting for approximately 50% of global steel consumption [3]. Current Challenges - U.S. steel prices have dropped over 40% from $1,200 per short ton at the beginning of 2024 to around $700 per short ton, influenced by oversupply, reduced demand, and economic uncertainties [4]. - China's steel demand has weakened due to a slowdown in the economy, particularly in the real estate sector, which constitutes about 40% of China's steel consumption [5]. Positive Trends - There is improved demand in the automotive sector, driven by a recovery from semiconductor shortages, and a resilient non-residential construction market, supported by government infrastructure initiatives [6]. - The energy sector is also seeing increased demand due to rising oil and gas prices, which bodes well for steel producers [6]. Industry Performance - The Zacks Steel Producers industry ranks 210, placing it in the bottom 16% of over 250 Zacks industries, indicating bleak near-term prospects [7]. - Over the past year, the industry has underperformed, losing 8.7%, while the S&P 500 rose by 31.5% [9]. Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 8.79X, below the S&P 500's 19.16X and the sector's 12.15X, indicating potential undervaluation [10]. - Historically, the industry has traded between 2.78X and 12.72X over the past five years, with a median of 8.27X [11]. Company Highlights - **Steel Dynamics, Inc. (STLD)**: A leading steel producer benefiting from strong non-residential construction demand and ongoing capacity expansion projects [12]. The company has a Zacks Rank 3 and has outperformed earnings estimates in three of the last four quarters [13]. - **Commercial Metals Company (CMC)**: Focused on augmenting core capabilities and expanding market presence, CMC is implementing price increases across its products and has a strong liquidity position [14]. The company also holds a Zacks Rank 3 with an expected earnings growth rate of 12.6% for fiscal 2025 [14]. - **Companhia Siderurgica Nacional (SID)**: A major integrated steel producer in Brazil, benefiting from solid demand in the cement business and infrastructure investments, with an expected earnings growth rate of 416.7% for 2024 [15]. SID also carries a Zacks Rank 3 and has seen a significant upward revision in earnings estimates [15].

I last wrote about CMC (NYSE: CMC ), previously known as the Commercial Metals Company, on August 8 of this year. In that piece I argued the firm benefitted from structural supply-side issues in the steel industry, and had An economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously. Analyst's Disclosure: I/we have no stock, option or similar derivative position ...

Summary of Key Points Core Viewpoint - Commercial Metals Company (NYSE: CMC) has seen a decline of over 5% in its share price since a bearish recommendation was made in May of this year, suggesting a cautious outlook on the stock [1]. Company Analysis - The investment strategy focuses on acquiring undervalued, profitable stocks with strong balance sheets and minimal debt, indicating a preference for financial stability in investment choices [1]. - The company employs risk management techniques such as position sizing and trailing stop losses to mitigate potential losses over time [1]. Market Position - The current market sentiment towards CMC appears to be bearish, as indicated by the recommendation to take profits and the subsequent decline in share price [1].

Commercial Metals Company (CMC) reported adjusted earnings per share (EPS) of 90 cents for fourthquarter fiscal 2024 (ended Aug. 31, 2024), missing the Zacks Consensus Estimate of 91 cents. The bottom line fell from the prior-year quarter's $1.58. During the fourth quarter of fiscal 2023 , CMC had previously made an adjustment of $16 million for mill operational commissioning costs related to its third micro mill, which was placed into service in the quarter. During its fourth quarter 2024 earnings release, ...

Financial Data and Key Metrics Changes - Fiscal 2024 core EBITDA was $1 billion, down from $1.4 billion in fiscal 2023, but still 40% above pre-pandemic levels [7][8] - Fourth quarter net earnings were $103.9 million or $0.90 per diluted share on sales of $2 billion, with consolidated EBITDA of $227.1 million and a core EBITDA margin of 11.4% [12][21] - Cash flow from operating activities was $900 million, with $261.8 million returned to shareholders, marking a 48% increase from fiscal 2023 [8][28] Business Line Data and Key Metrics Changes - North American Steel Group generated adjusted EBITDA of $210.9 million, down 14% sequentially due to lower margins over scrap costs [22] - Europe Steel Group reported an adjusted EBITDA loss of $3.6 million, an improvement from a loss of $4.2 million in the previous quarter, driven by cost reductions [23][24] - Emerging Businesses Group's adjusted EBITDA margin improved, with a 11.2% increase in adjusted EBITDA to $42.5 million, driven by strong activity in the Tensar unit [25] Market Data and Key Metrics Changes - Demand for steel products in North America remained healthy, with shipping volumes unchanged year-over-year, supported by solid backlogs of ongoing construction projects [14] - The Europe Steel Group faced challenges from increased imports, with rebar imports up 85% year-to-date, impacting margins [17] - The Dodge Momentum Index indicates a strong pipeline of construction projects, suggesting a rebound in construction activity is anticipated [16] Company Strategy and Development Direction - The company is focused on achieving sustainably higher margins through operational and commercial excellence initiatives, including the TAG program [18][19] - Strategic growth plans include organic projects and disciplined pursuit of inorganic growth opportunities in adjacent markets [20][21] - The company aims to enhance its growth trajectory and improve margin profiles through a comprehensive strategic plan [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that current market conditions are transient, with expectations for a rebound in the second half of fiscal 2025 as construction fundamentals return [31] - The company anticipates a decline in consolidated financial results for the first fiscal quarter of 2025 due to temporary softness in the construction industry [29][30] - Management expressed confidence in the long-term growth potential driven by structural trends in North America, including infrastructure investment and reshoring [32] Other Important Information - The company expects capital expenditures for fiscal 2025 to be between $630 million and $680 million, with significant investment in the Steel West Virginia project [27][50] - The effective tax rate for the fourth quarter was 22.3%, with an anticipated rate of 24% to 25% for fiscal 2025 [27] Q&A Session Summary Question: Guidance for the Emerging Business Group - Management expects results to be roughly similar year-on-year, with seasonal trends impacting performance [33] Question: Long-term strategic plan and quantifying benefits - The TAG initiative is expected to contribute to earnings in 2025, with over 150 initiatives identified for execution [34] Question: Current margins and future targets - Management aims for higher through-the-cycle margins, with TAG expected to supplement current margins [37] Question: Backlog value compared to last quarter - Volume levels remain comparable, but the value of the backlog has decreased due to lower prices for rebar material [39] Question: Arizona 2 volume contribution and market conditions - Management acknowledged challenges with Arizona 2 but remains confident in achieving full run rate production [41] Question: Sustainability of the Europe Steel Group business - Management is committed to the Europe Steel Group and expects a recovery in Germany to positively impact profitability [43] Question: Demand environment and infrastructure impact on rebar - Management adjusted expectations for rebar demand due to inflationary impacts on infrastructure spending [45] Question: Merchant bar market dynamics - Demand for merchant bars is consistent but affected by broader market uncertainties, with recent price adjustments noted [47] Question: Fiscal 2025 CapEx budget and growth projects - The CapEx budget is set between $630 million and $680 million, primarily for the Steel West Virginia project [50] Question: Inorganic growth opportunities - Management prioritizes disciplined investment in inorganic growth, focusing on high-margin product categories [51]