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BHP’s Quarterly Australian Iron Ore Shipments Slipped 8%

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Miner BHP (NYSE:BHP) reported FQ3 iron ore shipments fell 8% Q/Q, as production was slowed by labor shortages and COVID-related absenteeism, which it says will remain a risk for the rest of the year.

In its quarterly operations review, BHP (BHP) said iron ore sales from its Western Australia operations totaled 67.1M metric tons, meeting the analyst consensus forecast of 67.2M tons, while iron ore production of 59.7M tons was up 1% Y/Y but down 10% Q/Q.

The company kept its full-year iron ore output target unchanged at 249M-259M tons but cut guidance for copper and nickel production.

After producing 369.7K tons of copper during Q3, down 6% Y/Y but up 1% Q/Q, BHP (BHP) now expects to produce 1.57M-1.62M metric tons of copper in the year through June, down from an earlier estimate of 1.59M-1.76M tons, reflecting lower production guidance for the Escondida mine, the world’s largest copper mine, which is grappling with labor availability due to COVID-19 infections and public road blockades.

Again citing labor challenges, BHP (BHP) also cut full-year production guidance for its nickel business, to 80K-85K tons from a previous forecast of 85K-95K tons, after Q3 output fell 8% Y/Y and 13% Q/Q to 18.7K tons.

BHP (BHP) maintained its full-year estimate for metallurgical coal production unchanged at 38M-41M tons, after Q3 output increased 10% Y/Y and 20% Q/Q to 10.6M tons, citing less rainfall than in Q2 and improved truck productivity.

Australian mining peer Rio Tinto also reported lower quarterly iron ore production.

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Original Post: seekingalpha.com

Business

Lumber Futures Rise As Canada Cuts Wood Production

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CBOT lumber futures rose (LB1:COM) for the third straight session on Wednesday to $601.80 per 1,000 board feet, the highest intraday price since July 22, as supply cuts from a top Canadian producer outweigh rising interest rates that are hurting housing markets.

West Fraser Timber (WFG) announced production cuts at two British Columbia sawmills, equivalent to 2.5% of its total North American capacity, and it is cutting plywood output at another facility.

Other potentially relevant tickers include (WY), (LPX), (PCH), (RFP), (OTCPK:CFPZF), (OTCPK:IFSPF), (OTCPK:WFSTF)

ETFs: (NYSEARCA:XHB), (NASDAQ:WOOD), (CUT), (NAIL)

U.S. builders obtain more than 25% of their lumber from Canada, which is the world’s largest exporter of softwood lumber.

This year’s surge in borrowing costs caused ~60K deals for home sales in the U.S. to fall through in June.

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Original Post: seekingalpha.com

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CVS Health Tried to Acquire One Medical Before Amazon Eventually Did – Bloomberg

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Original Source: seekingalpha.com

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Business

Recipe Gone Wrong: Domino’s Calls It Quits in Italy

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Mario Elias Munoz Valencia/iStock Editorial via Getty Images

Seven years after entering the Italian market, Domino’s (NYSE:DPZ) is closing up shop in the homeland of pizza. While the company had already stopped offering delivery from its website on July 29, the last of its 29 local branches just shuttered their doors. Social media is abuzz on the news, with some likening the situation to selling ice in the North Pole, or how the chain could compare their pizza to an authentic Napoletana.

History: Domino’s (DPZ) opened its first outlet in Milan in 2015, via a franchising agreement with a local business called ePizza SpA. At the time, it said it hoped to win over Italian palates with “purely Italian” ingredients like Prosciutto di Parma, Gorgonzola, Grana Padano and Mozzarella di bufala Campana. The biggest catch was a national home delivery model that could take on local artisanal shops and provide an alternative to Italy’s dining out culture.

Cracks in the plan first emerged during the pandemic, especially as delivery became essential during coronavirus lockdowns. Many of the “mom & pop” restaurants went online, allowing buyers to order quality products and gourmet items straight to their homes. As takeout and delivery models were adopted, increased competition was also seen from a rising number of online platforms like Deliveroo, Glovo or Just Eat Takeaway.com.

Go deeper: ePizza borrowed heavily for plans to open over 800 Italian stores through 2030, attempting to land a 2% stake of the national pizza market. As recently as April, it filed for protection from creditors, and while the motion was granted for an initial 90 days, there have been no further updates on the court process. According to the latest audited reports, ePizza had EUR10.6M of debt at the end of 2020, but has since been running out of cash and faltering on its debt obligations.

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Original Source: seekingalpha.com

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