Vale's Q1'22 net income down YOY; China Shenhua's Q1'22 net profit rises YOY

TOP NEWS IN METALS & MINING

* Vale SA booked an attributable net income of US$4.46 billion, or 93 cents per share, in the first quarter, down 19.6% from US$5.55 billion, or US$1.08 per share, in the same period a year ago, as net operating revenue declined 13.9% to US$10.81 billion from US$12.55 billion. The profit decline was caused by higher costs and lower production, Dow Jones Newswires reported.

* China Shenhua Energy Co. Ltd.'s first-quarter net profit rose 63.3% year over year to 18.96 billion Chinese yuan, as revenue increased by 24.1% to 83.90 billion yuan, thanks to rising coal prices, higher power output dispatch and an increase in average power output dispatch prices. Coal sales for the quarter, however, dropped 8.4% to 105.7 million tonnes.

➤ High metal prices set to drive up 2022 exploration amid green metals boom

The exploration sector is looking strong this year after a surge in budgets in 2021, and analysts and industry players expect battery metals such as lithium and nickel to get extra attention in exploration efforts.

➤ Coronado's met coal orders from Europe increase amid Russia-Ukraine crisis

Australia's Coronado Global Resources Inc. said it expects metallurgical coal demand to stay positive in 2022 due to trade constraints with Russia and China, despite demand from China falling amid new COVID-19 lockdowns.

➤ China's Q1 gold consumption down 9.7% on COVID disruptions, high bullion prices

China's COVID-19 lockdowns measures may continue to dampen consumption in the world's biggest gold market in the second quarter, a World Gold Council analyst said.

EARNINGS SPOTLIGHT

* Teck Resources Ltd. booked an attributable profit of C$1.58 billion, or C$2.87 per diluted share, in the first quarter, surging from C$305 million, or 57 cents per share, in the prior-year period. The company plans to repurchase up to US$500 million of class B subordinate voting shares, which will add to the company's plan to repurchase about US$635 million in dividends and shares in 2022.

* China Coal Energy Co. Ltd. posted a net profit of 6.79 billion Chinese yuan for the first quarter, up 93.1% from a year ago, benefiting from high prices and output of coal, as well as investment gains. The company's revenue rose 33.5% to 61.73 billion yuan.

* Yunnan Tin Co. Ltd.'s net profit jumped 268.1% to 1.21 billion Chinese yuan for the first quarter, as revenue increased 8.1% to 15.05 billion yuan.

* Tronox Holdings PLC booked an attributable net income of US$16 million in the first quarter, down 16% year over year from US$19 million, despite revenue increasing 8% to US$965 million from US$891 million.

* Lundin Mining Corp.'s first-quarter net earnings surged year over year to US$378.1 million, or 47 cents per share, from US$154.2 million, or 18 cents per share. The company's board of directors declared a regular quarterly dividend of 9 Canadian cents per share, up from 6 Canadian cents per share in the year-ago period.

BASE METALS

* Police have entered MMG Ltd.'s Las Bambas copper mine in Peru to try to evict a protesting indigenous community that has camped near the open pit, forcing the suspension of operations, Reuters reported, citing a community leader and government official.

* Sandfire Resources Ltd. produced 28,774 tonnes of copper in the March quarter, surging from 16,803 tonnes in the same period a year ago, attributed to the acquisition of the MATSA copper mine in Spain.

* Australia's Foreign Investment Review Board issued a "no objection notification" to Shanghai Decent Investment (Group) Co. Ltd.'s application to increase its ownership in Nickel Mines Ltd. to up to 22%.

PRECIOUS METALS

* Newcrest Mining Ltd. expects to produce between 1.9 million ounces and 2.0 Moz of gold for fiscal year 2022, up from an earlier forecast of 1.8 Moz to 2.0 Moz, following its takeover of Pretium Resources Inc., and lower-than-anticipated costs because of a strong copper price and weakening Australian dollar, Dow Jones Newswires reported.

* St Barbara Ltd. produced 61,819 ounces of gold in the third quarter of fiscal 2022, declining from about 82,000 ounces in the same period of the prior fiscal year. Gold sales also declined to 56,000 ounces from 71,000 ounces.

* Regis Resources Ltd. produced 103,129 ounces of gold in the third quarter of its fiscal year 2022, increasing from 85,748 ounces in the same period a year ago. Gold sales increased to 76,045 ounces at an average realized price of A$2,260 per ounce, from 67,383 ounces at A$2,014 per ounce.

* Silver Lake Resources Ltd. is withdrawing full-year guidance, reflecting uncertainty in meeting targets amid COVID-19-related labor disruptions and supply chain interruptions, Dow Jones Newswires reported.

BULK COMMODITIES

* Fortescue Metals Group Ltd. shipped 46.5 million tonnes of iron ore in the three months through March, up 10% from 42.3 Mt in the same period a year ago, Dow Jones Newswires reported. The miner raised its fiscal year 2022 forecast for annual iron ore exports to between 185 Mt and 188 Mt, from its previous forecast of 180 Mt to 185 Mt.

* Even though the comprehensive free trade agreement — signed by India and Australia on April 2 to remove the 2.5% import duty on Australian coal — will give an advantage to Australian coal in the Indian market, it remains to be seen whether the Indian buyers find it enticing enough given the elevated prices, S&P Global Platts reported.

* Russian President Vladimir Putin tentatively agreed to arrange evacuations for about 1,000 civilians taking refuge at Metinvest Holding LLC's Azovstal steel plant in the city of Mariupol in Ukraine, the CBC reported, citing United Nations spokesperson Stephane Dujarric.

* ArcelorMittal SA unit PJSC ArcelorMittal Kryvyi Rih is slowly resuming operations in Ukraine despite Russian troops nearby, Reuters reported, quoting CEO Mauro Longobardo. The plant shut down all four of its blast furnaces in February and restarted one of them April 9.

SPECIALTY

* Pilbara Minerals Ltd. produced 81,431 dry tonnes of spodumene concentrate in the March quarter, up from 77,820 tonnes in the same period a year ago. Shipments, however, decreased to 58,383 dry tonnes from 71,229 dry tonnes.

* Arafura Resources Ltd. appointed Societe Generale and National Australia Bank Ltd. as the initial mandated lead arrangers and bookrunners to arrange the debt facility for the development of the Nolans rare earths project in Australia's Northern Territory.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

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