Barrick's Q2'22 gold output flat YOY; Umicore to build C$1.5B plant in Ontario

TOP NEWS IN METALS & MINING

* Barrick Gold Corp.'s attributable production for gold in the second quarter remained flat year over year at 1.0 million ounces, while attributable copper output rose to 120 million pounds from 96 million pounds in the same comparative period.

* Umicore SA will build a facility near Kingston, Ontario, via a C$1.5 billion investment, that could start producing battery cathode precursor materials and cathode active battery materials by the end of 2025, a move that will further the Canadian province's goal of establishing a local electric vehicle supply chain, S&P Global Commodity Insights reported.

➤ IM July 2022 — Financings rebound after 2 months of decline

After hitting a 25-month low in May, funds raised rebounded 53% to US$1.10 billion in June, fueled by higher financing for gold, copper and lithium, data gathered by S&P Global Commodity Insights' Metals and Mining Research team showed.

➤ Inflation surges to 9.1%, boosting likelihood of large Fed hike

Inflation is rising by levels not seen in more than 40 years, with food and energy prices surging, boosting the likelihood of an outsized rate hike from the Federal Reserve later in July.

EARNINGS SPOTLIGHT

* China Shenhua Energy Co. Ltd. estimated its first-half attributable profit to range from 42.0 billion Chinese yuan to 43.0 billion yuan, increasing from 26.5 billion in the first half of 2021 due to better profit from its coal and power segments and a lower average group income tax rate.

* Tianqi Lithium Corp. said its attributable net profit during its six months ended June 30 would range from 9.6 billion yuan to 11.6 billion yuan, marking a surge from 85.8 million yuan in the same period of 2021. The expected increase was mainly attributed to a boost in sales volume and average selling prices of the company's major lithium products compared to the previous year.

* Ganfeng Lithium Co. Ltd. expects its second-quarter attributable profit to range from 3.67 billion yuan to 5.47 billion yuan, surging from 940.6 million yuan in the same period of 2021. The company attributed the positive forecast to high prices and growing market demand for lithium salt products.

PRECIOUS METALS

* B2Gold Corp.'s consolidated gold production in the second quarter rose to 208,858 ounces from 197,380 ounces in the same period of 2021. First-half consolidated output increased to 405,331 ounces, compared to 403,023 ounces in the prior-year half.

* Pan African Resources PLC produced 205,459 ounces of gold during its fiscal year ended June 30, increasing 2% year over year from 201,777 ounces.

BULK COMMODITIES

* Rio Tinto Group will spend US$188 million to boost the production capacity for aluminum billets at its Alma smelter in Quebec's Lac-Saint-Jean region by 202,000 tonnes, with commissioning expected in the first quarter of 2025.

* The U.K.'s Trade Remedies Authority proposed to lift antidumping measures on high fatigue performance steel concrete reinforcement bars sourced from China due to a lower supply outlook.

* Construction began on Vale SA's Zhongzhai pre-blending project, a partnership with Jiangsu Shagang Co. Ltd. and Ningbo Zhoushan Port Company Ltd. that involves developing silo-blending facilities with a capacity of 15 million tonnes per year at the Zhongzhai Ore Terminal in China's Zhejiang province. Operations are targeted to start by the second half of 2023.

* Indonesia is set to increase its coal production to serve countries facing risks of a power supply shortage due to Russia's invasion of Ukraine, Reuters reported, quoting Arifin Tasrif, the Southeast Asian nation's energy and mineral resources minister.

SPECIALTY

* Kenmare Resources PLC produced 353,600 tonnes of heavy mineral concentrate in the second quarter and expects 2022 production at the bottom of the guidance range for all products following a weak performance during the quarter, Dow Jones Newswires reported.

INDUSTRY NEWS

* Lithuania will permit the transport of EU-sanctioned Russian goods through its territory and into Russia's Kaliningrad exclave, Reuters reported. Sanctioned military and dual-use goods and technology are still prohibited.

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

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