Core Insights - Hermes reported a 9.6% increase in third-quarter sales, indicating a slight improvement in the key market of China, outperforming its peers as affluent consumers spent on luxury items priced at $10,000 and above [1] Company Performance - The sales growth of 9.6% in the third quarter highlights Hermes' strong positioning in the luxury market, particularly in China, where wealthy shoppers are increasingly purchasing high-end products [1] Market Trends - The performance of Hermes suggests a positive trend in luxury spending among affluent consumers, especially in the Chinese market, which is crucial for luxury brands [1]

Core Insights - The merger of equals between Teck Resources and Anglo American aims to create a global leader in critical minerals and a top five copper producer, unlocking substantial value for shareholders through synergies and operational integration [2][6][11] Financial Performance - Teck reported Q3 2025 revenue of CAD$3,385 million, up from CAD$2,858 million in Q3 2024, representing an increase of 18.4% [5] - Gross profit for Q3 2025 was CAD$660 million, compared to CAD$478 million in Q3 2024, marking a 38% increase [5] - Adjusted EBITDA for Q3 2025 was CAD$1,171 million, up from CAD$986 million in the same period last year, reflecting a 19% increase [7][39] - Profit from continuing operations before taxes was CAD$289 million in Q3 2025, a significant recovery from a loss of CAD$759 million in Q3 2024 [5][34] Merger Details - The merger is expected to generate annual pre-tax synergies of approximately US$800 million, with 80% of these synergies anticipated to be realized by the end of the second year post-merger [6][11] - The combined entity, Anglo Teck, is projected to achieve an annual average underlying EBITDA uplift of US$1.4 billion from the integration of Collahuasi and Quebrada Blanca assets [6][11] Production and Operational Updates - Copper production at Quebrada Blanca (QB) for Q3 2025 was 39,600 tonnes, down 12,900 tonnes from the previous year due to tailings management facility (TMF) development constraints [12][17] - Zinc segment gross profit before depreciation and amortization was CAD$454 million in Q3 2025, compared to CAD$358 million in Q3 2024, driven by strong sales volumes [5][41] - The company expects annual 2025 copper production for QB to be between 170,000 to 190,000 tonnes [17] Guidance and Outlook - Teck's 2025 production guidance includes copper production of 415,000 to 465,000 tonnes and zinc production of 525,000 to 575,000 tonnes [20] - The company anticipates net cash unit costs for copper to be between US$2.05 and US$2.30 per pound for 2025 [20]

Market Overview - US stock index futures showed mixed movements with Dow futures up 0.08% and S&P 500 futures up 0.03%, while Nasdaq futures fell 0.05% [1] - European indices also experienced gains, with Germany's DAX up 0.17%, UK's FTSE 100 up 0.30%, France's CAC40 up 0.55%, and the Euro Stoxx 50 up 0.26% [2][3] - WTI crude oil rose by 0.79% to $57.47 per barrel, and Brent crude oil increased by 0.67% to $61.42 per barrel [3][4] Market Sentiment - The recent rebound in US stocks is attributed to short covering rather than genuine investor confidence, indicating a potential "false prosperity" [5] - Concerns about the US credit market tightening could lead to forced selling by pension funds, which may trigger a significant market downturn [5] - Allianz's chief economist noted that the current AI investment boom is a "rational bubble" that could help the US outperform global markets [5] Federal Reserve Insights - Wall Street analysts predict that the Federal Reserve may announce the end of its balance sheet reduction plan in the upcoming meeting, which could stabilize monetary policy [6] - Recent market fluctuations have led to increased use of the Fed's repurchase agreement tool, indicating liquidity concerns [6] Individual Company Performance - General Motors (GM) reported Q3 revenue of $48.59 billion, exceeding expectations of $45.26 billion, and raised its full-year EPS guidance to $9.75-$10.50 [7][8] - Coca-Cola (KO) posted Q3 revenue of $12.46 billion, surpassing the expected $12.41 billion, and reaffirmed its 2025 guidance [8] - GE Aerospace's Q3 revenue increased by 24% to $12.18 billion, driven by strong performance in its commercial engine business [8] - Zion Bank's Q3 profit exceeded expectations, with revenue of $872 million, indicating that credit pressure in regional banks may be isolated incidents [8] - DocGo's stock surged nearly 27% following its acquisition of virtual healthcare platform SteadyMD [8] Upcoming Earnings Reports - Notable earnings reports expected include Netflix, Texas Instruments, and Alliance West Bank on Wednesday morning, and Barclays, Teck Resources, and AT&T before market open [10]

Group 1 - The majority of mining CEOs agree that the world is accelerating towards a copper shortage, with the real challenge being how to respond to this issue [2] - The merger between Anglo American and Teck Resources, valued at $54 billion, appears to address supply concerns, particularly as copper is crucial for the green energy transition [2] - The International Energy Agency (IEA) reported that global copper production was approximately 23 million tons last year, with projections to increase to 24 million tons by the end of the decade, but could fall below 20 million tons by 2035 without new supply sources [2] Group 2 - The IEA predicts that copper demand could approach 33 million tons by 2035, highlighting a significant supply-demand gap that may not be filled by increased recycling of scrap metal [2] - Supply disruptions are a pressing concern, as Freeport-McMoRan announced a production halt at its Grasberg mine in Indonesia, causing a stock price drop of over 15% [2] - Citigroup analysts believe that global copper production growth will be minimal this year, with an expected growth rate of only 1.3% by 2026, significantly lower than the 2.5% average growth rate over the past 25 years [2] Group 3 - Economic theory suggests that price increases typically lead to expanded mining operations, and recent trends indicate that copper prices are nearing last year's 20-year high [3] - However, inflation during the pandemic has accelerated production costs, with capital expenditures required to initiate new supplies in Latin America increasing by 65% since 2020 [3] - Major mining companies have differing views on the actual costs of new projects, with estimates ranging from $23,000 to $30,000 per ton for new copper mines, necessitating significant upfront investments [3] Group 4 - To achieve reasonable returns, large mining companies need copper prices to exceed $12,000 per ton, complicating their willingness to invest in new underground projects due to lengthy approval processes [4] - The merger between Anglo American and Teck Resources is attractive as it allows for the acquisition of additional mining capacity without the risks associated with new mine development [4] - The combined entity expects to add 175,000 tons of copper production by 2030, leveraging synergies from nearby mines [4] Group 5 - There are concerns that post-merger, the combined mining company may not increase production levels compared to their independent operations, as they may prioritize higher-return mines [5] - The exploration budget for mining companies has dropped below 3% of EBITDA for copper operations, down from over 6% in the early 2010s, indicating a decline in new discoveries [5] - Bank of America has raised its copper price forecast for next year to $11,313 per ton, with expectations of reaching $13,500 per ton by 2027, which could incentivize mining companies to resume exploration [5]

Core Viewpoint - Teck Resources Ltd (TECK) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Earnings Performance - Teck Resources has a solid track record of surpassing earnings estimates, with an average surprise of 55.00% over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $0.27 per share against an expectation of $0.20, resulting in a surprise of 35.00% [2]. - For the previous quarter, Teck reported $0.42 per share compared to a consensus estimate of $0.24, achieving a surprise of 75.00% [2]. Earnings Estimates and Predictions - There has been a favorable adjustment in earnings estimates for Teck Resources, indicated by a positive Zacks Earnings ESP (Expected Surprise Prediction) [5]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of an earnings beat, with historical data showing nearly 70% success in such cases [6][8]. - Currently, Teck Resources has an Earnings ESP of +3.38%, indicating increased analyst optimism regarding its near-term earnings potential [8]. Upcoming Earnings Report - The next earnings report for Teck Resources is anticipated to be released on October 22, 2025 [8].

Core Insights - Copper prices have surged past $11,000 per ton for the first time since May 2024, driven by a combination of regulatory pressure, political instability, and a narrow supply base, resulting in a year-to-date increase of approximately 21% [1][2] Supply Constraints - Major copper producers are facing challenges, with environmental disputes halting some of the best mines and projects, leading to millions of tons of untapped supply being locked up due to ESG regulations [2][3] - Approximately 6.4 million tons of copper capacity, about 25% of global output, is currently stalled or suspended due to political and social issues rather than geological ones [3][4] - Key blocked projects include La Granja in Peru, Resolution Copper in the U.S., and El Pachón in Argentina, which have faced local opposition and regulatory hurdles [4][5] Operational Risks - The copper sector is experiencing operational risks due to a narrow resource base, with production setbacks reported at Codelco in Chile, Freeport-McMoRan's Grasberg mine in Indonesia, and Teck Resources' Quebrada Blanca project [7] - A recent mudslide at Grasberg resulted in a significant drop of over 15% in Freeport's share price in a single day, highlighting the fragility of the supply chain [7] Political Influence - Political factors are adding volatility to mining investments, particularly in Argentina, where midterm elections have caused a pause in projects like McEwen Copper's Los Azules [8][9] - Los Azules has proven and probable reserves of 10.2 billion pounds and a projected production of 204,800 tons in the first five years, but investor confidence is contingent on political stability [9] Emerging Opportunities - Zambia is positioned to potentially benefit from the supply vacuum left by risks in other copper-rich nations, with a record output of one million tons expected this year and a goal of reaching 3 million tons annually by 2030 [10] - The country has attracted around $10 billion in new investments from major companies like Barrick, First Quantum, and Sinomine Resource Group, indicating a strong investment climate [11]

Core Viewpoint - Teck Resources Limited will release its third quarter 2025 earnings results on October 22, 2025, before market opening [1] Group 1: Earnings Release Details - The earnings results will be available before market open on October 22, 2025 [1] - A webcast to review the results is scheduled for 8:00 a.m. PT / 11:00 a.m. ET on the same day [1] - An archive of the webcast will be accessible on Teck's website within 24 hours after the event [2] Group 2: Company Overview - Teck is a leading Canadian resource company focused on providing essential metals for economic development and energy transition [3] - The company has a portfolio of world-class copper and zinc operations across North and South America [3] - Teck is committed to responsible growth and building resilience based on stakeholder trust [3]

Core Viewpoint - Anglo American's CEO Duncan Wanblad remains confident in the $50 billion merger with Teck Resources despite recent cuts in copper production forecasts from Teck [1][2]. Merger Insights - Wanblad stated that the merger's value is not affected by Teck's revised production forecasts, emphasizing the extensive due diligence conducted prior to the merger [2]. - The merger will result in Anglo American holding a 50% stake in the new Anglo Teck company [2]. Production Forecasts - Teck Resources has lowered its 2025 output projection for the Quebrada Blanca copper mine in Chile from 210,000–230,000 tonnes to 170,000–190,000 tonnes, marking a decrease of 17% to 19% [2]. - This revision is the second in three months, with the first reduction occurring in July [3]. Strategic Direction - Wanblad highlighted the need for a new approach to mining, indicating that the merger aligns with a future-facing strategy [4]. - The company is restructuring by divesting from nickel, diamonds, platinum, and coal to focus on a more streamlined portfolio [4]. Coal Business Developments - Anglo American is currently in arbitration with Peabody Energy after Peabody withdrew its $3.78 billion bid for Anglo American's Australian coking coal assets, citing a Material Adverse Change (MAC) event [5]. - Wanblad expressed confidence that the situation does not constitute a MAC event, asserting that there is no damage to the asset [5]. - The company plans to remarket its coal business, aiming for a market entry by late this year or early next year [6].

Summary of Key Points from Conference Call Records Industry Overview - The records discuss the gold, copper, and cobalt markets, highlighting their current trends and future outlooks. Gold Market Insights - The expectation of interest rate cuts by the Federal Reserve has positively impacted gold prices, which recently surpassed $4,000 per ounce, marking a 50% increase year-to-date [2][10][11] - Factors driving this increase include the Federal Reserve's 25 basis point rate cut, the U.S. government shutdown delaying economic data releases, and the potential for further rate cuts due to the Dodge 2.0 plan, which may lead to layoffs [2][10] - Long-term support for gold prices comes from global tensions, increased central bank gold purchases, and the declining status of the U.S. dollar, particularly with China's push for transactions in yuan for Australian iron ore [1][2] - Companies like Shandong Gold and Chifeng Jilong Gold are highlighted as undervalued with good performance expectations [1][3] Copper Market Insights - Copper prices have stabilized above $10,000, nearing historical highs, driven by its financial attributes in a low-interest-rate environment [1][4] - The copper industry faces supply constraints due to insufficient capital expenditure in recent years, frequent mining accidents, and significant production guidance downgrades from companies like Teck Resources [1][4][14] - Strong demand for copper is noted in traditional infrastructure and renewable energy sectors, suggesting a robust long-term outlook for copper prices [4][16] - Key companies to watch include Zijin Mining and Jiangxi Copper, which are expected to benefit from the supply-demand dynamics [1][4][17] Cobalt Market Insights - The cobalt market has seen price increases due to supply disruptions from the Democratic Republic of Congo (DRC) and quota systems that maintain high prices [5] - Companies less affected by DRC supply issues, such as Liyang New Energy and Huayou Cobalt, are recommended for investment [5] Lithium Market Insights - The lithium market is influenced by the submission of resource evaluation reports in Jiangxi Province, which will determine domestic supply dynamics [6] Solid-State Battery Developments - Recent breakthroughs in solid-state battery cathode materials, particularly in metallic lithium, are expected to significantly increase usage, benefiting companies like Ganfeng Lithium [8] Silver Market Insights - Silver is expected to show higher elasticity compared to gold in the current economic environment, with recommendations to focus on silver-related stocks [12] Investment Recommendations - Investors are advised to focus on leading companies with strong growth potential and profit release capabilities, such as Zijin Mining and Teck Resources, as well as undervalued second-tier stocks like Jiangxi Copper [17]

Core Insights - Teck Resources Limited (TECK) conducted a comprehensive review of its operating plans in Q3 2025, involving third-party technical experts and independent advisors to assess production and cost ranges [1][11] Production and Performance - The Quebrada Blanca (QB) Action Plan is part of a broader initiative to enhance operational performance, with ongoing Tailings Management Facility (TMF) development affecting production [2][3] - QB's copper production in Q3 2025 was 39,600 tons, with sales volumes at 43,900 tons, significantly impacted by TMF development and 20 days of downtime in September [5] - Highland Valley Copper (HVC) produced 28,100 tons in Q3 2025, affected by lower grades, contributing to a total copper production of approximately 104,100 tons and total sales of around 110,300 tons [6] - Red Dog's performance remained strong, producing 122,000 tons of zinc in concentrate in Q3 2025, with sales volumes of 272,800 tons, exceeding guidance [6] Production Outlook - The production outlook for QB has been revised down to 170,000 to 190,000 tons for 2025, from a previous estimate of 210,000 to 230,000 tons, with expectations of continued constraints into 2026 [7] - HVC's 2025 guidance has been reduced to 120,000 to 130,000 tons, while the 2027 outlook has been raised to 135,000 to 155,000 tons [8] - Red Dog's zinc production is projected to decline, with estimates of 375,000 to 415,000 tons in 2026, 330,000 to 370,000 tons in 2027, and 230,000 to 270,000 tons in 2028 [10] Financial Performance - TECK's shares have decreased by 12% over the past year, contrasting with the industry's growth of 17.6% [13]