The next copper giant has a built in kicker you may not expect 📝

Hey hey – another week is upon us, so let’s dig in. Metals, stocks, and above all, opportunities.

Today, we wanted to revisit the Teck-Anglo merger. As copper remains strong, both companies have been busy:

• divesting assets to clean up their portfolios
• building up their copper war chest, and
• reducing costs

For instance, Anglo is set to deliver $1.5 billion in savings this year. They are going through deep changes after turning the business around and fending off $BHP, last year. They already divested PGMs, and are progressing sales of coal, nickel and diamond units.

On the same tack, Teck completed the sale of its coal business to Glencore in 2024.

3 key outcomes will emerge from this transaction:

• A stronger leader, with more production coming from South America
• ~70% copper exposure
• $800M in pre-tax recurring annual synergies

Substantial.

But there’s one aspect I am particularly interested in.

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Let’s put a pin on it for a sec and talk about what we’re paying attention to this week:

Macro

• Gold, some rare earths stocks pulling back: While long-term fundamentals remain bullish for REE, the China-US trade truce, which will see relaxed restrictions on rare earths and other minerals provides a strong opportunity for the west to catch up… 1 year sounds like a long time but in mining years, blink and you’ll miss it. Gold eases as tensions soften. Overall, time to see what looks appealing at these prices, across watchlists…
• Economic calendar: Industrial, auto production from Brazil, US*, UK, Australia PMI. RBA expected to hold rates after higher-than-expected inflation. Copper output from Chile fell 4.5%, after dropping 9.9% the previous month.
• Regulatory: Argentina’s Milei win in the recent midterms strengthens their ability to foster mining production, which should, in turn, lift investment. Expect more supportive measures from December onwards, like RIGI, essential for copper projects in the country. Cautiously optimistic.

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Meanwhile…

These companies are making bold moves.

Deals, capital raising and IPOs

• Fresnillo (LON: FRES) is acquiring Canada’s Probe Gold (TSX: PRB) for $556M cash

Fresnillo enters Canada with $556M Probe Gold acquisition https://t.co/Dh8Hw3w7TZ

— MINING.COM (@mining) October 31, 2025

*If you’re viewing this via email, click on the date to view the full tweet and any available sources.

• Temas Resources $TMAS is now listed on ASX (CDI) via an A$11M raise; their focus is on titanium in Canada. PAC Partners, Sandton Capital Advisory Pty Ltd were Joint Lead Managers, and the price on listing was A$0.20/share.
• Essex Resources Corp $ESXR is now listed on TSX.

Typically, we expect a lift in targets and weakness in acquirers, and often, peers to targets get extra love. For IPOs, we keep an eye on listing day/week, as big swings may point to opportunities.

News, rating updates and research reports

• ST GEORGE MINING LIMITED $SGQ Macquarie started coverage with $0.20/share target price >> read
• Sierra Madre Gold and Silver Ltd. $SM Sierra Madre Starts US$3.5 Million Exploration Program at the East District of Guitarra Project >> read (plus we hosted an investor lunch in Sydney for them, more on that soon)
• Agnico Eagle Mines Limited $AEM price target raised to C$300.00/share from C$195, beats estimates >> read

Commentary on X

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• OceanaGold $OGC could shock everyone in 2026 >> watch our review

Commentary on video

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Now, back to Teck-Anglo…

The piece de resistance is this, in my opinion:

Joining forces to combine and unlock synergies (see what I did there? haha) between Quebrada Blanca and Collahuasi in Chile. The plan is to use a 15km conveyor to send ore from Collahuasi to the Quebrada Blanca plant, allowing for additional production, EBITDA uplift and capital efficiency.

Ergo, costs would be significantly lower for the combined operation (and also for Los Bronces), massive for the country that produces more copper than any other and huge for the new giant.

A strong position in Chile is highly desirable plus if things continue progressing across the Andes (see macro section above), we may catch them upping exposure to Argentinean copper assets, following BHP and other majors. This is an educated guess since both Teck and Anglo are no strangers to the country and were actually clients there, years ago.

Where do you stand on this one? Would love to hear.

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What I’m reading

• The War Below: Lithium, copper, and the global battle to power our lives by Ernest Scheyder

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If you enjoyed this…

• Invest more confidently with Mining Investing 101

Sources: Canaccord research, Bloomberg, Reuters, Mining.com, TradingView, ASX, TMX, NASDAQ, LSE and SRC research. Figures shown in US dollars unless clarified.

*shutdown-dependent