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Sibanye swings to H1'19 loss; Peabody, Glencore secure approval for coal JV

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Sibanye swings to H1'19 loss; Peabody, Glencore secure approval for coal JV

TOP NEWS

Sibanye swings to H1'19 loss; interest in AngloGold's Mponeng confirmed

Confirming its forecast earnings for the first half, Sibanye Gold Ltd. swung to a loss of 265.2 million South African rand, from a 76.7 million rand profit in the comparable year-ago period. The company swung to a 1.26 billion rand headline loss from a profit of 101.0 million rand. Earnings were negatively impacted by a five-month strike at its South African gold operations, which led to an estimated 1.6 billion rand in revenue loss. CEO Neal Froneman said the company may unveil restructuring plans for unit Lonmin PLC in about a month as it has certain older shafts that "weren't contributing to the bottom line", Miningmx wrote. Separately, the miner confirmed its interest in acquiring AngloGold Ashanti Ltd.'s Mponeng gold mine in South Africa, which the latter is trying to sell as part of a portfolio review, Reuters reported.

Peabody, Glencore secure approval for United Wambo coal project

The New South Wales Independent Planning Commission in Australia conditionally approved the A$381 million United Wambo coal project, owned by Glencore PLC and Peabody Energy Corp. The joint venture was looking for approval to expand open cut mining operations at the existing United Wambo mine and the United colliery to extract an additional 150 million tonnes of run-of-mine coal over 23 years.

Ferrexpo says Ukrainian charity funds may have been misappropriated

Ferrexpo PLC's independent review committee to probe the use of funds donated to the Blooming Land Charity was unable to explain a number of discrepancies outlined in the 2018 annual report. The company said it is possible that some of the funds could have been misappropriated, but added that none of its directors, management or employees were involved in any possible misappropriation.

DIVERSIFIED

* African Rainbow Minerals Ltd. decided to put its unprofitable Nkomati nickel mine in South Africa on care and maintenance from September 2020 ahead of closing the operation. The company increased total dividend for the year ended June 30 to 13 South African rand per share, from 10 rand per share a year ago, as headline earnings rose 9% to 5.23 billion rand, or 27.18 rand per share, thanks to higher earnings from its iron ore and Two Rivers platinum group metals operations.

BASE METAL

* In the first half, Jiangxi Copper Co. Ltd.'s attributable profit increased about 1.8% to 1.30 billion Chinese yuan, as operating revenue inched up 0.5% to 105.04 billion yuan.

* Tongling Nonferrous Metals Group Co. Ltd.'s net profit attributable to shareholders remained flat year over year in the first six months of the year at 413.9 million Chinese yuan, with EPS at 3.9 fen.

* Analysts at Fitch Solutions revised upward its nickel price forecast this year, to US$13,550 per tonne from US$13,250 per tonne, on the back of a strong speculative rally in July and August, Mining.com reported. Analysts said tight fundamentals for the commodity will keep prices for the base metal at a high level in the remaining months of the year, according to the report.

* URU Metals Ltd.'s application for a mining right over three prospecting rights that form the Zebediela project was accepted by the South African Department of Mineral Resources. The application covers the right to mine nickel and platinum group minerals, chromite, cobalt, copper, gold, iron ore and vanadium for 30 years.

PRECIOUS METALS

* Zijin Mining Group Co. Ltd.'s first-half attributable net profit slumped 26.6% year over year to 1.85 billion Chinese yuan from 2.53 billion yuan. Operating profit in the half slipped to 3.22 billion yuan from 3.78 billion yuan a year ago. Gold production climbed 44.6% year over year to 151,735 kilograms, while silver production fell 18.6% to 250,609 kilograms.

* Kin Mining NL's pre-feasibility study for the Cardinia gold project, part of the Leonora property in Western Australia, outlined a pretax net present value of A$66.8 million, discounted at 8%, assuming a gold price of A$2,000 per ounce, along with an internal rate of return of 17% and a 44-month payback.

* Southern Gold Ltd. completed the sale of its Australian assets for A$2.5 million in cash to Aurenne Group Holdings Pty. Ltd., allowing the company to focus on its South Korean assets.

* Resolute Mining Ltd. upgraded its full year gold production guidance to 400,000 ounces at all-in sustaining costs of US$960 per ounce, following the acquisition of Toro Gold Ltd., from the previous guidance of 330,000 ounces at AISC of US$990 per ounce.

* Moreton Resources Ltd. decided to cease the advancement of production at its Granite Belt silver mine in Queensland, Australia, amid legal issues regarding financial assurance matters. The company is still aiming to start mining operations in the January 2020.

* TriMetals Mining Inc. will receive US$25.8 million from Bolivia as settlement over the expropriation of its Malku Khota silver project in 2012.

* First Quantum Minerals Ltd. is terminating its earn-in option over Luminex Resources Corp.'s Cascas gold property in Ecuador.

* Eric Sprott, through 2176423 Ontario Ltd., took up an about 13.1% stake in Amarillo Gold Corp. after participating in the junior explorer's C$10 million share placement.

* Seabridge Gold Inc. closed its acquisition of the Goldstorm project in Nevada from Mountain View Gold Corp. for 25,000 shares.

BULK COMMODITIES

* Hindalco Industries Ltd. unit Novelis Inc. is close to gaining approval from EU competition authorities for its US$2.6 billion takeover of Aleris Corp., Reuters reported, citing sources familiar with the matter.

* A global aluminum producer offered Japanese buyers a premium of US$110 per tonne of primary metal shipments for the December quarter, up from US$108/t in the September quarter, which is expected to set the benchmark for the region, Reuters reported, citing five sources involved in the pricing talks.

* A report by the Institute of Energy Economics and Financial Analysis, or IEEFA, found that Adani Enterprises Ltd. would require US$4.4 billion in Australian government subsidies over the 30-year life of the Carmichael coal mine in Queensland, Australia. The project would otherwise be unbankable and unviable, The Guardian reported. Adani called the report "inaccurate," saying the institute is "known for publishing alarmist papers that attempt to discredit the fossil fuel industry." The company noted that details of the royalties agreement are confidential and IEEFA's claims to know the details are untrue.

* The Australian Competition & Consumer Commission kicked off civil proceedings in the Federal Court against BlueScope Steel Ltd. and its former general manager sales and marketing Jason Ellis for alleged cartel conduct in the supply of flat steel products. The competition regulator said BlueScope and Ellis, between September 2013 and June 2014, tried to get various steel distributors in Australia and overseas manufacturers to enter agreements containing a price fixing provision. BlueScope Chairman John Bevan said the board is treating the allegations "very seriously" and the company will review the allegations.

* Nippon Steel Corp. intends to slash its planned capital expenditures for the three-year period to March 2021 by 10% to 20%, amounting to ¥170 billion to ¥340 billion, due to slower steel demand amid the U.S.-China trade war, Reuters wrote citing the company's head of investor relations Yuichiro Kaneko.

* After starting talks in May, South Korean steel giant POSCO reached a tentative wage and collective bargaining agreement with its labor union, with union members to vote on the matter Sept. 9, Yonhap News Agency reported.

* British Steel Corp. Ltd.'s real estate and infrastructure design unit TSP Projects Ltd. has been sold to a U.K. subsidiary of French engineering group Systra, which is expected to save more than 400 jobs, Reuters reported, citing the official receiver. The deal will not impact a proposed sale of the insolvent group to an affiliate of the Turkish military's pension fund.

* The farm-in and joint venture contract between Fortescue Metals Group Ltd. unit FMG Resources Pty Ltd. and Tasman Resources Ltd. over the latter's Vulcan iron oxide-copper-gold-uranium prospect in South Australia received South Australian ministerial approval.

* A federal bankruptcy court approved Blackhawk Mining LLC's modified Chapter 11 reorganization plan and disclosure statement shortly after the coal producer wrote in court filings that it is on schedule to emerge without impairing its general unsecured claims.

* TerraCom Ltd.'s salable coal production in fiscal 2019 swelled 35% year over year to 3.0 million tonnes, and coal sales surged 59% to 3.0 Mt. Run-of-mine coal production also climbed 35% to 3.4 Mt. Operating EBITDA in the year climbed A$66.7 million to A$93.9 million.

* IRC Ltd.'s attributable loss in the first half climbed to US$25.2 million, from US$15.6 million a year ago. Revenue jumped to US$89.2 million, from US$70.2 million, but was offset by an increase in operating expenses and financial costs. Production from the company's K&S iron ore mine in Russia climbed 16% to 1.3 million tonnes and sales rose 18% to 1.2 Mt.

* Contura Energy Inc. can acquire up to US$100 million in its own stock after its board of directors approved a plan to purchase shares at set prices over a specified period.

* Cazaly Resources Ltd. finalized the sale of the Parker Range iron ore project to Mineral Resources Ltd. and received the A$20 million cash portion of the payment.

* U.S. coal companies are often scrutinized for the climate impacts of burning the fuel, but the sector has also proven vulnerable to the sort of severe weather that scientists predict will be increasingly more likely due to rising global temperatures, according to an exclusive S&P Global Market Intelligence report.

* Cadence Minerals PLC's judicial restructuring plan to recover and restart operations at the Amapá iron ore project was approved by over 90% of the credit value and was approved by the courts.

SPECIALTY

* Portugal is finalizing plans to put up an international lithium exploration licensing tender, part of the country's thrust to become Europe's leading supplier to electric vehicle battery producers, Reuters reported.

* Natural graphite exports from Africa to China surged over 170% in the first half, as African suppliers ramped up production to meet China's increasing demand for the battery material, Mining.com wrote citing data compiled by Roskill, which added that demand for natural graphite from the battery sector is set to grow 19% annually from 2018 to 2028.

* Orion Metals Ltd. unit Rich Resources Investments will sell its 65% stake in seven exploration tenements making up the Tanami West lanthanides-gold project in Western Australia to PVW Resources NL for A$250,000.

* The residents living next to BSG Resources Ltd.'s Octea diamond mine in Sierra Leone filed a complaint against their government at the Economic Community of West African States court of justice for failing to protect the people in response to complaints about water contamination and damage to their houses from blasting at the mine, Reuters reported.

* Battery Minerals Ltd. tapped ThirdWay Africa to aid in securing funding for the Montepuez graphite project in Mozambique.

INDUSTRY NEWS

* Mining services provide Macmahon Holdings Ltd. expects revenue in fiscal 2020 of US$1.2 billion to US$1.3 billion, and EBIT of US$80 million to US$90 million. Revenue in fiscal 2019 jumped 55% to US$$1.10 billion, as the company increased activity across its contract mining projects in Australia and Indonesia. The company did not recognize a previously expected provision on the Telfer gold project contract with Newcrest Mining Ltd., saying it now expects the net present value of incremental cash flows from the contract to be positive over the project's remaining term.

* Driven lower by base metal pricing, the S&P/TSX Global Mining Index total return fell throughout April and May yet rose in June to end the month 6.6% higher, due to its heavy weighting to gold, and leaving the index up strongly since the end of 2018, S&P Global Market Intelligence Metals & Mining industry research found.

* Canada's C$21.5 million in funding for a proposed all-weather arctic road project in Nunavut that would ease access to remote mining sites and Arctic communities could pave the way for a near "shovel ready" project in two or three years, said Scott Northey, COO of Nunavut Resources Corp. in an exclusive interview with S&P Global Market Intelligence.

* U.S. economic growth slowed slightly more than initially estimated in the second quarter, but consumer spending was revised up to its fastest pace in four years and partially offset the impact of the country's trade tensions with China.

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