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Goldcorp CEO may exit with US$6.9M; Glencore forwarded US$1B in loans to Gertler

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020


Goldcorp CEO may exit with US$6.9M; Glencore forwarded US$1B in loans to Gertler

TOP NEWS

Goldcorp CEO may exit with US$6.9M

David Garofalo will be able to collect about US$6.9 million as severance, pension and benefits if he is released as CEO of Goldcorp Inc. due to Newmont Mining Corp.'s planned takeover, according to Bloomberg. Newmont is acquiring Goldcorp in a US$10 billion all-share deal to create Newmont Goldcorp; deal completion is expected in the fourth quarter.

Glencore facilitated nearly US$1B in loans to US-sanctioned Gertler

Glencore PLC forwarded nearly US$1 billion in loans and advances to help fund U.S.-sanctioned businessman Dan Gertler's investments in the Democratic Republic of the Congo, where he is accused of corruption, The Wall Street Journal reported, citing the Paradise Papers. According to documents obtained by the news outlet, the loans were made over about 10 years. The amount, which was more than previously reported and later confirmed by the Swiss trader, showed the financial ties between Glencore and Gertler during their decade-long partnership in the DRC.

South African Union to expand strike to Sibanye Gold's platinum operations

The Association of Mineworkers and Construction Union will move forward with the plan to expand its gold strike to Sibanye Gold Ltd.'s Rustenburg platinum group metals mines in South Africa, Fin24.com reported. Sibanye expects the planned action to cripple operations at Rustenburg, where the union has a large membership, company spokesperson James Wellsted said.

BASE METALS

* Jinduicheng Molybdenum Co. Ltd. expects to record a net profit attributable to shareholders of between 345 million Chinese yuan and 395 million yuan for 2018, a year-over-year growth of between 222% and 268%. It pegged EBITDA to increase from 50.7 million yuan in 2017 to between 313 million yuan and 363 million yuan.

* Orion Minerals Ltd. increased the indicated and inferred resource estimate for its Prieska project in South Africa to 30.5 million tonnes at 3.7% zinc and 1.2% copper, including an updated resource for the open pit.

PRECIOUS METALS

* Bankers and analysts cited by Reuters said Newcrest Mining Ltd., Kinross Gold Corp. and B2Gold Corp. may be next in line to merge with rivals following the announcement of the US$10 billion Newmont-Goldcorp merger.

* Hecla Mining Co. reported a 9% year-over-year fall in fourth-quarter 2018 silver production to 2.7 million ounces, while gold output rose 16% to 70,988 ounces. Silver output for full-year 2018 was down 17% relative to 2017 at 10.4 Moz, while gold output rose 13% to a record high of 262,103 ounces.

* Anglo Asian Mining PLC produced 83,736 gold equivalent ounces for the year ended Dec. 31, 2018, near the upper end of guidance. Gold output was up 17% on a yearly basis.

* Excellon Resources Inc. produced 1.9 million ounces of silver equivalent for full year 2018, a 27% increase from 2017. The company produced 509,043 ounces of silver equivalent for the fourth quarter of 2018, a 7% increase on a yearly basis.

* McEwen Mining Inc.'s fourth-quarter 2018 gold production reached 29,291 ounces, down from 48,609 ounces in 2017. Full-year 2018 gold production came in at 135,124 ounces, up from 109,947 ounces in 2017. Silver production came in at 819,473 ounces for the fourth quarter of 2018 and about 3.0 million ounces for the full year.

* Alamos Gold Inc. produced 125,600 ounces of gold in the fourth quarter of 2018, up from 120,300 ounces in the same quarter of 2017. Full-year 2018 gold production reached a record 505,000 ounces, compared to 429,400 ounces a year ago. The higher production was driven by strong performance at the Mulatos mine in Mexico and record output at the Island gold mine in Ontario.

* Coeur Mining Inc.'s fourth-quarter 2018 silver equivalent production reached 9.8 million ounces, down from the year-ago output of 10.8 million ounces. Full-year 2018 production came in at 35.6 million ounces of silver equivalent, down from 39.4 million ounces in 2017 and failing to meet the lower end of its revised guidance.

* First Majestic Silver Corp. reported a 37% increase in production to a record high 22.2 million silver equivalent ounces for 2018, falling within the company's annual guidance. The company anticipates 2019 total production at 24.7 million to 27.5 million silver equivalent ounces.

* Golden Rim Resources Ltd. hit 10 meters at 4.1 g/t gold at the Red Hill prospect at its Kouri project in Burkina Faso, which Managing Director Craig Mackay said could lead to a second, satellite resource bigger than the first, though broker Hartleys said it is very early days yet. Mackay said in an interview that the continuity of the mineralization and grades particularly impressed the junior, given it is the only second area into which Golden Rim has put a concentration of holes.

* Agnico Eagle Mines Ltd.'s gold output is expected to grow to approximately 2 million ounces per year by 2020 as the company remains focused on growing its production base and investing in its exploration and development projects, the Metals and Mining Research team at S&P Global Market Intelligence reported.

* MX Gold Corp. reached two agreements to sell its remaining assets in an arm's-length transaction to Cameo Cobalt Corp. in a cash-and-shares deal plus a 50% net profit interest in the properties.

* Canoe Mining Ventures Corp. canceled its proposed reverse takeover of OpenPort Ltd., a Hong Kong-based blockchain logistics solutions company.

* Australian billionaire Kerry Stokes cut his stake in Saracen Mineral Holdings Ltd. to just below 5% after selling almost 10 million shares for A$30 million, The Australian reported.

* White Gold Corp. signed a binding letter agreement to acquire the QV gold project in Canada's Yukon Territory from Comstock Metals Ltd. for C$2.6 million in cash, shares and share purchase warrants.

BULK COMMODITIES

* Fortescue Metals Group Ltd. could benefit from Rio Tinto's inability to meet certain shipment commitments through a potential price tailwind for lower-grade iron ore, The Australian reported, citing Shaw and Partners analyst Peter O'Connor.

* An independent expert report by Grant Thornton, commissioned by Golden Investments (Australia) Pte. Ltd., found that Stanmore Coal Ltd. was valued at between 84 Australian cents and A$1.10 per share, a far cry from the assessment of A$1.48 to A$1.90 per share from Stanmore's independent expert, BDO Corporate Finance, The Australian Financial Review's Street Talk reported. The Australia-listed coal miner had rejected a 95-cent-per-share takeover offer by Golden Investments, which it said significantly undervalues the company.

* China's steel industry will shift its focus in 2019 to improving capacity structure from cutting overall capacity, Reuters reported, citing Yu Yong, chairman of China Iron and Steel Association. The plan includes optimizing production structure, adjusting the layout of steel mills and pushing mergers and acquisitions.

* Dissident Altona Energy PLC shareholders failed in their bid to oust Qinfu Zhang and Chi Ma as directors, after resolutions calling for their removal were not passed in a general meeting.

SPECIALTY

* Blackstone Resources AG committed to spend €200 million on a new battery-production project in Germany. The project's first phase is targeted to have an initial capacity of 100 million battery cells per annum, or the equivalent of 25,000 to 100,000 electric vehicle batteries.

* Angola will unveil the results of its first-ever diamond auction Jan. 31 as part of the African country's efforts to open its economy to foreign investors and improve transparency, Bloomberg News reported, citing state-owned diamond trader Sodiam.

* PJSC Alrosa opened a new subsidiary in Zimbabwe called Alrosa (Zimbabwe) Ltd. as Alrosa plans to develop new mining operations in the country. Alrosa experts, including geologists and mining engineers, are set to arrive in Zimbabwe in February.

* Vast Resources PLC plans to start production from the Heritage diamond concession area in Zimbabwe's Marange diamond fields in the second half.

* Newfield Resources Ltd. subsidiary Sierra Diamonds Ltd. received a large-scale mining license, valid for 25 years, for its Tongo diamond project in Sierra Leone.

* Tertiary Minerals PLC plans to lodge an appeal with the Swedish government against the Swedish Mining Inspectorate's decision to reject the company's exploitation permit for its Storuman fluorspar project.

* Montero Mining & Exploration Ltd. posted an initial resource estimate for the Uis lithium-tin tailings project in Namibia for an inferred resource of 14.4 million tonnes at 0.37% lithium as lithium oxide and 17.1 million tonnes at 0.05% tin as tin oxide.

* Image Resources NL completed loading the first bulk shipment of nominally 10,000 wet tonnes of heavy mineral concentrate from its Boonanarring mine in Western Australia.

INDUSTRY NEWS

* Veteran resources executive Norm Seckold, who co-founded one of the ASX's biggest 2018 metals and mining IPOs, Nickel Mines Ltd., joined a chorus of analysts saying resource stocks will continue to suffer throughout this year, even amid robust commodities demand, unless the U.S.-China trade war ends. However, Alto Capital Investment Manager Tony Locantro said in an interview that "there's no just no appetite for resource stocks at the moment" with China's weak manufacturing numbers and concern over its credit bubble weighing on stocks, along with the trade war.

* Argentina could become more attractive to investors as it is set to join the Extractive Industries Transparency Initiative, an international transparency standard for managing oil, gas and mineral resources, Reuters reported. The global initiative requires member countries to disclose their dealings with companies, including earnings from taxes and royalties.

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