The deal is one of the biggest ever in the industry and comes as miners rush to raise their bets on copper. Anglo shares jumped 10%. ...

Merger of equals to create a leading global critical minerals champion Anglo American cautionary statement Disclaimer This document has been prepared by Anglo American plc ("Anglo American") in connection with its combination with Teck Resources Limited ("Teck") to form the Anglo Teck group (the "Merger") and comprises the written materials/slides for a presentation concerning Anglo American and Teck. By attending this presentation and/or reviewing this document you agree to be bound by the following condit ...

Teck Resources stock price is set to surge today, Sep. 9, after reports of an impending buyout by Anglo American. TECK was trading at $35.11 in New York, down by over 35% from its highest point in 202... ...

Group 1 - Anglo American is close to finalizing a deal to acquire Canadian miner Teck Resources [1]

Core Viewpoint - Deutsche Bank upgraded Teck Resources Ltd. from Hold to Buy with a price target of $42, resulting in a more than 1% increase in shares during premarket trading [1] Group 1: Company Performance - Teck Resources had underperformed in 2023 due to operational issues at its QB project, leading to low investor sentiment [2] - Shares of Teck are trading at a significant discount compared to global peers and below greenfield replacement costs, despite the high strategic value of its copper assets in a consolidating industry [2] Group 2: Future Outlook - Teck's recently announced action plan to address tailings facility challenges is viewed positively, with revised guidance expected by the third-quarter results in October [3] - Although there are risks that remediation efforts may take longer than anticipated, analysts believe the stock is already pricing in a permanent impairment, presenting an attractive entry point for investors [3]

Core Viewpoint - Aldebaran Resources Inc. plans to transfer its project portfolio in Argentina into a new Canadian subsidiary, SpinCo, which will focus on copper, gold, and silver exploration while Aldebaran continues to concentrate on the Altar copper-gold project [1][9]. Company Developments - Sam Leung has been appointed as the CEO and Director of SpinCo, bringing 20 years of experience in the mining sector, particularly in South America [2][12]. - The reorganization aims to unlock additional value for shareholders by allowing them to maintain exposure to the Altar project while also receiving shares in SpinCo [9]. Project Highlights - **Rio Grande Project**: Best intercept recorded is 257.20 m of 0.53% Cu and 1.20 g/t Au, with drill permits expected in H1 2026 [4]. - **Aguas Calientes**: Located in Salta Province, with significant resources including 71.0 million tonnes of 0.30% Cu, 0.36 g/t Au, and 3.2 g/t Ag [7]. - **Other Projects**: Include El Camino, Oscara, La Frontera, and Catua, with various mineralization potentials and historical drilling results [7]. Next Steps - SpinCo plans to complete private financing to fund a field program in 2025/2026, focusing on geochemistry and geophysics to prepare Rio Grande and Aguas Calientes for drilling [14]. - The spinout of SpinCo shares to Aldebaran shareholders is expected to be completed under the Business Corporations Act (Alberta), with plans for a public listing [14].

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Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, utilizing factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9][10] Company Spotlight: Teck Resources Ltd - Teck Resources, based in Vancouver, focuses on mining and mineral development, producing copper, zinc, lead, and specialty metals [11] - Teck holds a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Value Style Score of B, supported by a forward P/E ratio of 21.58 [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase of $0.09 to $1.53 per share indicate positive momentum, alongside an average earnings surprise of +45.6% [12][13]

Financial Data and Key Metrics Changes - The company achieved record earnings of $132 million or $2.1 per share for the quarter, with adjusted earnings of $119 million or $1.81 per share after accounting for discrete tax items [5][6][22] - Revenue for the quarter was a record $210 million, up 20% year-over-year, driven by a 40% increase in gold prices [19][22] - The adjusted EBITDA margin increased to 84% due to strong gold prices and stable cash G&A [6][19] - The company remains debt-free and paid a quarterly dividend of $0.45 per share [6][24] Business Line Data and Key Metrics Changes - Royalty revenue increased by about 50% year-over-year to $77 million, with strong contributions from Penasquito and Mancho [12] - Stream segment revenue was $133 million, up 8% from the previous year, with increased sales from Mount Milligan and Pueblo Viejo [12] - The overall volume was 63,900 GEOs for the quarter, contributing to the record revenue [12] Market Data and Key Metrics Changes - Gold accounted for approximately 78% of total revenue, followed by silver at 11% and copper at 7% [20] - Metal prices were a significant driver for revenue increase, with gold up 40% and silver up 17% year-over-year [19][20] Company Strategy and Development Direction - The company is positioning itself as a premier growth company through acquisitions of Sandstorm Gold and Horizon Copper, which will enhance scale, growth, and diversification [7][8] - The strategic focus remains on growth in precious metals, maintaining a strong balance sheet, and increasing dividends [9] - Recent acquisitions include a gold stream on the Kansanshi mine in Zambia, a stream and royalty interest on the Wurinza project in Ecuador, and a royalty on the Lawyers Ranch development project in British Columbia [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the Sandstorm and Horizon transactions by the fourth quarter, with constructive engagement from investors [28][29] - The company is comfortable maintaining its 2025 guidance range despite underperformance in some key assets, due to a rigorous risk-adjusted budgeting process [41] - Management acknowledged the political volatility in African jurisdictions but remains open to further investments in countries where they have had success [45][46] Other Important Information - The company expects to receive the first delivery of deferred gold consideration from the Mount Milligan cost support agreement in late third quarter or early fourth quarter [26] - The total liquidity grew to over $1.25 billion, including a fully undrawn revolving credit facility of $1 billion [24] Q&A Session Summary Question: Can you discuss the deleveraging goal post-transactions? - Management indicated that the plan is to use excess cash flow to pay down the revolver over time, balancing this with potential investment opportunities [31][32] Question: Regarding Milligan's reduced production guidance, how does this affect your 2025 guidance? - Management explained that they maintain their guidance due to a rigorous budgeting process that incorporates historical performance and risk adjustments [36][41] Question: Are you maxed out on African exposure with the Kansanshi acquisition? - Management stated they are comfortable with their current African investments and would consider additional opportunities if the countries are deemed stable [44][46] Question: Is there any consideration for a share buyback given recent share performance? - Management emphasized that the focus will be on debt repayment before considering a buyback [48] Question: Can you provide an update on the timing of the Sandstorm transaction? - Management confirmed they will file the preliminary proxy with the SEC soon, targeting a fourth-quarter closing [51][52]

Report Industry Investment Rating No relevant content provided. Core Views of the Report - The global lead market shows a large visible inventory pressure, and the expected increase in supply from new capacity will suppress lead prices. However, the cost support is relatively stable, and the potential production cut expectation caused by refinery losses also provides a bottom - support for lead prices. It is expected that the lead price will fluctuate widely in August, and its upside space depends on the actual improvement in the consumption end [2][72][73]. Summary According to the Directory 1. Lead Market Review - In July, the main contract price of Shanghai lead showed a volatile decline. Affected by factors such as the passing of the US bill, good domestic PMI data, and the approaching consumption peak season at the beginning of the month, the lead price was firm. In the middle of the month, due to factors like inventory increase and less - than - expected downstream consumption improvement, the lead price adjusted. After the news of some Middle - Eastern countries imposing additional tariffs on lead - battery exports, the lead price decline was magnified. Finally, it closed at 16,735 yuan/ton, with a monthly decline of 2.7%. The London lead price first declined and then rose, closing at 1,969.5 US dollars/ton at the end of the month, with a monthly decline of 3.93% [7]. 2. Lead Fundamental Analysis 2.1 Lead Ore Supply Situation - **Global lead concentrate supply is slowly recovering**: From January to May 2025, the global cumulative lead concentrate production was 1.8111 million tons, with a cumulative year - on - year increase of 2.5%. Overseas mine production showed different year - on - year changes, indicating a slow recovery rhythm. In China, from January to June, the cumulative lead concentrate production was 787,000 tons, with a cumulative year - on - year increase of 13%. It is expected that the global lead concentrate supply will continue to recover in the second half of the year, with an expected overseas increase of 100,000 tons and a domestic increase of about 70,000 tons, and the global lead mine production growth rate will be 2.3% to 4620,000 tons [10][11]. - **Lead concentrate processing fees remain low, and the demand for silver concentrate imports is increasing**: In August, the average domestic lead concentrate processing fee was 500 yuan/metal ton, a month - on - month decrease of 100 yuan/metal ton; the import processing fee was - 60 US dollars/dry ton, a month - on - month decrease of 15 US dollars/dry ton. The import of lead concentrate maintained a loss, but the monthly import volume remained at a relatively high level. In June, the silver concentrate import volume was 126,000 tons, and the cumulative import volume from January to June was 847,000 tons. With the continuous high price of by - product silver, the import demand remained high [18][20]. 2.2 Refined Lead Supply Situation - **Global refined lead supply growth is slow**: From January to May 2025, the global cumulative refined lead production was 5.5066 million tons, with a cumulative year - on - year decrease of 1.8%. It is predicted that the global refined lead production in 2025 will be 13.272 million tons, with a year - on - year increase of 0.6% [22]. - **Refineries are resuming production, and the electrolytic lead production in August is expected to increase month - on - month**: In July, the electrolytic lead production was 321,700 tons, a month - on - month decrease of 2.1%. It is expected that the production in August will be 338,200 tons, a month - on - month increase of 5.13% [26]. - **The price of waste batteries remains high, and new projects contribute to the increase in production**: In July, the price of waste batteries fluctuated slightly. It is expected that the price will remain firm in August. In July, the production of recycled refined lead was 258,000 tons, a month - on - month increase of 13.96%. It is expected that the production in August will be 273,900 tons, a month - on - month increase of 6.16% [32][33]. 2.3 Refined Lead Demand Situation - **Global refined lead demand situation**: From January to May 2025, the global cumulative refined lead consumption was 5.4887 million tons, with a cumulative year - on - year increase of 2.69%. It is expected that the global refined lead demand in 2025 will increase by 1.5% to 13.19 million tons, and the global refined lead supply will exceed demand by 82,000 tons [44]. - **Lead - battery enters the traditional consumption peak season, and the sector shows differentiation**: In July, the consumption of electric bicycle batteries was good, while the consumption of automobile starting batteries was mixed. In August, it is expected that the battery consumption will continue to be differentiated [48]. - **The Shanghai - London ratio is not conducive to lead ingot and battery exports, and imports supplement raw material ratios**: In June, the refined lead export volume decreased month - on - month, and the import volume increased year - on - year. The high Shanghai - London ratio is not conducive to lead ingot exports, and the battery export is also affected by factors such as tariff increases [49][50]. - **Policy guidance improves the marginal consumption prospects of lead - batteries**: In the automobile sector, the battery replacement demand is stable, and the new - car demand is expected to continue to be good. In the electric bicycle sector, the replacement demand is large, and policies such as trade - in and new national standards will stimulate consumption. In the energy - storage sector, the demand for lead - batteries is expected to grow [58][60][62]. 2.4 Global Visible Inventory is Rising - In July, the global visible lead inventory was under pressure. The LME inventory remained high, and the domestic lead ingot inventory increased. If the consumption in August does not improve significantly, the inventory may continue to rise [67]. 3. Summary and Future Outlook - The supply of primary lead is expected to increase in August, but the refinery profit is compressed. The supply of recycled lead is expected to be stable with a slight increase, but there is a possibility of unexpected production cuts. The demand is differentiated, and the traditional consumption peak season is slightly lower than expected. The lead price is expected to fluctuate widely in August, and its upside depends on the consumption improvement [72][73].