26 Apr, 2022
Norilsk's Q1'22 nickel output up 10% YOY; South32 raises FY'22 cost guidance
TOP NEWS IN METALS & MINING
* PJSC MMC Norilsk Nickel's nickel output increased 10% year over year to 51,534 tonnes from 46,639 tonnes. The company also entered into an agreement with The State Atomic Energy Corporation Rosatom to deliver strategic projects in the Russian Arctic.
* South32 Ltd. raised cost guidance for all of its Australian operations for the fiscal year ending June 30, citing a stronger Australian dollar as well as higher prices for caustic soda, freight and fuel, among other factors, Dow Jones Newswires reported. The company produced 1.6 million tonnes of metallurgical coal production in its fiscal third quarter, flat year over year, while alumina production increased to 1.3 Mt from 1.2 Mt.
After nearing bankruptcy in early March, Hycroft Mining Holding Corp. has been riding a wave of retail investor interest and a major influx of cash from AMC Entertainment Holdings Inc. and mining investor Eric Sprott to turn its fortunes around.
➤ China's plan to cut output might bail out steelmakers facing COVID-19 impact
China pledged to cut crude steel output in 2022, the country's state planner said April 19. The move is likely a lifeline for steelmakers suffering losses due to surging raw material prices and the COVID-19 demand shock.
➤ Biden actions to unlock US battery feedstocks expected to have limited effects
Some battery and mining experts say President Joe Biden's recent moves to stimulate production of lithium and other raw materials do not go far enough.
DIVERSIFIED
* Mineral Resources Ltd. plans to offer up to US$1 billion of senior unsecured notes due 2027 and senior unsecured notes due 2030, with proceeds earmarked for general corporate purposes. The Australia-based mining services provider focuses on iron ore and lithium.
BASE METALS
* The Zambian government is "very close" to selecting a private investor for Mopani Copper Mines Plc, which it bought from Glencore PLC in January 2021, Reuters reported, quoting the country's President Hakainde Hichilema.
* Kuniko Ltd. signed a letter of intent with Beyonder AS for a three-year collaboration that includes the potential off-take of copper from Kuniko's projects to supply Beyonder's batteries as well as cooperation on areas to reach zero-emission value chain solutions.
* Copper Mountain Mining Corp. recorded a net loss of C$4.2 million for the first quarter, swinging year over year from a net income of C$33.4 million. The company attributed the result to decreased copper sales, final sales adjustments and higher sales costs.
* Chilean President Gabriel Boric and Codelco's new chairperson of the board, Máximo Pacheco, met to discuss financial, operational and environmental improvements to the state miner.
PRECIOUS METALS
* Hochschild Mining PLC's attributable gold production dropped to 47,230 ounces in the first quarter from 52,840 ounces year on year, while silver output fell to 2.4 million ounces from 2.8 Moz.
* PJSC Polyus will not release its operating and financial results for the first quarter as the company decided to switch to semi-annual reporting.
* Perseus Mining Ltd. produced 130,523 ounces of gold in the March quarter, up from 88,458 ounces in the same period last year, while gold sales increased to 131,044 ounces from 87,215 ounces.
* Shanta Gold Ltd. produced 11,408 ounces of gold and sold 10,527 ounces of the precious metal in the first quarter, Dow Jones Newswires reported. Production and sales decreased quarter over quarter from 12,244 ounces and 13,538 ounces, respectively.
BULK COMMODITIES
* China's Jiangxi province agreed to transfer a 51% stake in Xinyu Iron & Steel Group Co. Ltd. to China Baowu Steel Group Corporation Ltd., S&P Global Platts reported, citing a company statement. The move will take Baowu one step closer to its annual crude steel output target of 200 million tonnes by 2025.
* Vale SA concluded the sale of the Moatize coal mine and the Nacala Logistics Corridor in Mozambique to Jindal Group subsidiary Vulcan Minerals for US$270 million.
* POSCO Holdings Inc.'s first-quarter net profit jumped 68% to 1.907 trillion South Korean won from 1.137 trillion won in the same quarter of the previous year, Dow Jones Newswires reported. Revenue during the quarter rose 33% to 21.338 trillion won, while operating profit gained 46% to 2.258 trillion won.
SPECIALTY
* Bushveld Minerals Ltd. produced 972 tonnes of vanadium in the first quarter, increasing from 962 tonnes in the prior quarter, on the back of continued operational stability and improved safety, Dow Jones Newswires reported.
INDUSTRY NEWS
* S&P Global Commodity Insights' Metals and Mining Research team's annual analysis of major gold discoveries identified 341 deposits discovered between 1990 and 2021, containing 2.70 billion ounces of gold in reserves, resources and past production, up from its 2021 analysis of 329 deposits containing 2.58 billion ounces in the 1990 to 2020 period.
* The China Iron and Steel Association asked trading companies not to increase their exports to take advantage of surging global prices but rather to prioritize satisfying domestic demand, Reuters reported, quoting the association's vice chairperson, Qu Xiuli.
* A deal targeting Beijing-based base metals miner GuoCheng Mining Co. Ltd. led the top five metals and mining transactions during the week ended April 22.
* Metal prices softened in the week ended April 22 on fears that China's extended COVID-19 lockdown will dent demand, but analysts said ongoing supply disruptions would support elevated prices.
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