14 Nov, 2021
Kazatomprom, Chinese firms in uranium deals; Hindalco's Q2'22 sets record profit
TOP NEWS IN METALS & MINING
* JSC National Atomic Co. Kazatomprom signed two contracts to supply natural uranium concentrates to China National Uranium Co. Ltd. and State Nuclear Uranium Resources Development Co. Ltd., Dow Jones Newswires reported. Quantities and terms were not disclosed.
* Hindalco Industries Ltd. posted a record net profit of 34.17 billion Indian rupees for the second quarter of its fiscal 2022, jumping 783% from 3.87 billion rupees booked last year, due to the strong performance of its Novelis Inc. unit and its Indian segment, supported by favorable macros, strategic product mix, higher volumes and operational stability.
➤ China's energy shortage fuels inflationary pressure on battery supply chain
Sustained power cuts in the country could place more pressure on prices for the rapidly expanding battery industry, which disproportionately relies on China for critical battery components and raw materials, according to companies and analysts.
➤ Greenland uranium ban endangers miners' ability to feed green energy transition
The ban on uranium exploration and exploitation has stopped development of one of the world's biggest rare earths deposits, casting further doubt on the mining industry's ability to help the switch to green energy.
➤ Median market cap of metals, mining sector up 5.3% after 4 months of contracting
Of the 25 largest metals and mining companies by market value analyzed by S&P Global Market Intelligence, 16 experienced an increase in market value from the end of September to the end of October.
EARNINGS SPOTLIGHT
* Incitec Pivot Ltd.'s fiscal 2021 net profit after tax improved 21% yearly to A$149.1 million from A$123.4 million, as group revenue rose 10% to A$4.35 billion from A$3.94 billion.
* PT Aneka Tambang Tbk's attributable profit in the first nine months of the year soared to 1.707 trillion Indonesian rupiah from 863.59 billion rupiah, as sales increased to 26.476 trillion rupiah from 18.037 trillion rupiah.
* New Gold Inc. sank to a third-quarter net loss of US$11 million, or a loss of 2 cents per share, from prior-year earnings of US$16 million, or 2 cents per share, due to an unrealized loss on the revaluation of investments. Revenue, however, increased to US$179.8 million from US$173.7 million.
* Malaysia Smelting Corp. Bhd. booked a third-quarter net profit of 28.9 million Malaysian ringgit, increasing year over year from 12.5 million ringgit, on the back of higher tin prices. Revenue, however, fell to 218.5 million ringgit from 230.8 million ringgit.
* The zinc price rallied on the back of European smelter production cuts, but the slowing Chinese economy and the U.S. Federal Reserve announcing the tapering of its asset purchasing program have dampened the zinc price in early November, according to S&P Global Market Intelligence's Metals and Mining Research team.
* Nickel exploration budgets are up 27% year over year to US$422.9 million, driven by record prices, data gathered by S&P Global Market Intelligence's Metals and Mining Research team showed. The 2022 budget will likely increase above the forecast 5% to 15% global budget increase for the year on strong market fundamentals.
* A maiden indicated and inferred resource estimate for the Golden Swan deposit at Poseidon Nickel Ltd.'s Black Swan nickel project in Western Australia defined 6,250 tonnes of nickel contained in 160,000 tonnes grading 3.9% nickel, at a 1.0% nickel cutoff.
BULK COMMODITIES
* China's commitment to meet climate goals will cause demand for raw ingredients for steelmaking, such as iron ore and metallurgical coal, to fall, but quality is expected to improve, Reuters reported, citing a presentation by Li Xinchuang, chairman of the China Metallurgical Industry Planning and Research Institute.
* China's daily coal production hit a new high of about 12.1 million tonnes on Nov. 10, surpassing its previous record by 120,000 tonnes, on the back of orders to raise production to control surging prices, Reuters reported, citing the National Development and Reform Commission.
* Hancock Prospecting Pty. Ltd.'s Hancock Magnetite Holdings Pty. Ltd. agreed to earn up to a 51% stake in the Mount Bevan iron ore project in Western Australia, a 60/40 joint venture between Legacy Iron Ore Ltd. and Hawthorn Resources Ltd.
SPECIALTY
* Eastern Iron Ltd. and Sichuan Yahua Industrial Group Co. Ltd.'s Ya Hua International Investment and Development Co. Ltd. signed an agreement for the potential acquisition and development of lithium projects in Australia and other countries, excluding China and African nations.
INDUSTRY NEWS
* China will increase exploration programs over a five-year period to 2025 for strategic mineral resources, including copper, chrome, tungsten and rare earths, Reuters reported, citing the National Development and Reform Commission.
