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ITOCHU, Mitsui bid for Anglo manganese assets; Buenaventura Q1 earnings jump; New World Resources may file for bankruptcy soon

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


ITOCHU, Mitsui bid for Anglo manganese assets; Buenaventura Q1 earnings jump; New World Resources may file for bankruptcy soon

TOP NEWS

ITOCHU,Mitsui competing for Anglo American manganese assets

People with knowledge of the matter told Bloomberg News thatITOCHU Corp. and are separatelybidding for Anglo American Plc'smanganese assets in Australia and South Africa, as Anglo American is said to beconsidering offers for its 40% stake in a manganese joint venture with

Buenaventura Q1 net income jumps despite lower sales

Compañía de MinasBuenaventura SAA posted a 198%jump year over year in net income to US$51.6 million for the first quarterof the year, despite a 4% drop in net sales to US$220.6 million. The company achievedthe net income on the back of lower total operating costs, and gains from foreignexchange and deferred income tax.

NewWorld Resources chairman warns of bankruptcy amid depleting cash

New World ResourcesPlc Chairman Gareth Penny said the company's OKD a.s. unit may run out of cash within two weeks and willnot be able to pay salaries. According to Bloomberg News, Penny warned that thecompany mayfile for bankruptcy as soon as April 29 while the Czech government has so farrefused to help with the restructuring of the coal miner's debt of some €300 million.

BASE METALS

* PJSC MMC NorilskNickel's consolidatednickel output fell by 6% year on year in the first quarter to 63,631 tonnes,while its copper production decreased by 3% to 87,255 tonnes; palladium and platinumoutput, however, both increased to 642,000 ounces and 171,000 ounces, respectively.

* French Prime Minister Manuel Valls confirmed that the governmentwilllend up to €200 million to Eramet'sSociete Le Nickel unit to support the company amid falling metal prices. Accordingto Reuters, Valls said the financing will be in place until 2018 but the final termsare still under negotiation.

* First QuantumMinerals Ltd. shifted back into positive territory in the first quarter,booking net earnings fromcontinuing operations attributable to shareholders of US$49 million from a net lossof US$78 million in the same quarter of 2015. During the quarter, First Quantumachieved its highest quarterly copper production and sales for continuing operationsof 119,287 tonnes and 131,267 tonnes, respectively.

* Separately, the construction of First Quantum's copper-gold projectin Argentina will beginin 2018, once the environmental impact study is approved and other procedures arecompleted by 2017, El Tribuno reported.The Canadian miner expects to initially invest about US$3 billion in the productionof 244,000 tonnes of copper concentrate and 110,000 ounces of gold per year.

* Jilin Jien NickelIndustry Co. Ltd.'s net loss attributable to shareholders for the firstquarter widened to 195.9million Chinese yuan, or 12 fen per share, from 149.1 million yuan, or 9.3 fen pershare, posted in the same quarter of 2015.

* Boliden ABsaid the competition authorities in Sweden, Finland and Germany have its US$712 million acquisitionof the Kevitsa nickel-coppermine from First Quantum Minerals. The transaction is scheduled to close around June1.

* HudBay MineralsInc. more than doubledits copper production during the first quarter to 38,879 tonnes from 15,008 tonnesa year earlier, representing a 159% increase. Meanwhile, first-quarter gold productionclimbed to 27,245 ounces from 23,676 ounces in the same quarter of 2015 and silveroutput grew to 722,916 ounces from 310,867 ounces. Zinc production rose year overyear to 23,376 tonnes from 22,906 tonnes.

* Jiangxi CopperCo. Ltd.'s first quarter net profit attributable to shareholders year over year to 201.4million yuan. Total operating revenue climbed 19.66% to 38.85 billion yuan, whiletotal operating costs also rose to 38.57 billion yuan from 32.51 billion yuan.

* Mines and metals processor Industrias Peñoles SAB de CV's net income , on a yearly basis, in thefirst quarter to 404.3 million Mexican pesos. Net sales increased 24.7% year overyear to 19.43 billion pesos, but were partially offset by higher cost of sales,from cost of metals purchased to third parties and higher production costs.

* China MolybdenumCo. Ltd.'s first quarter net profit attributable to its shareholdersplunged 53.67% year overyear to 141.1 million Chinese yuan, while operating income also declined 2.28% yearover year to 1.16 billion yuan.

* Sumitomo MetalMining Co. Ltd. will establishoperations for the recovery of scandium at its nickel plant with aninvestment of about ¥4 billion and has concluded a long-term sales agreement ofscandium oxide with a major U.S.-based fuel cell manufacturer.

* Celsius CoalLtd. will sellits wholly owned unit View NickelPty. Ltd. to Bearcat ResourcesPty. Ltd. for A$1.00 but the agreement is conditional on Celsius' successfulacquisition of the issued shares in the Australia-based sports betting platformFavourit Global Pty. Ltd.

* Union workers at Freeport-McMoRanInc.'s 51%-owned Chile-based copper mine El Abra acceptedthe company's wage deal offer, Reuters reported, citing union President Juana Mejias.

PRECIOUS METALS

* Compañía de MinasBuenaventura SAA posted a 198%jump year over year in net income to US$51.6 million for the first quarterof the year, despite a 4% drop in net sales to US$220.6 million. The company achievedthe net income on the back of lower total operating costs, and gains from foreignexchange and deferred income tax.

* Zhaojin MiningIndustry Co. Ltd. posted a first quarter 2016 net profit attributableto owners of the parent of 14.3 million Chinese yuan, down from 96.7 million yuan a profit booked a year earlier.

* Zhongjin GoldCorp. Ltd.'s net profit attributable to shareholders for the first quarterrose by 215.68% to 60.3million yuan, or 2 fen per share, from 19.1 million yuan or 1 fen per share, posteda year ago, while operating revenue dropped 30.01% year over year to 5.60 billionyuan.

* Nord Gold NVsaid its refined gold production decreasedto 209,500 ounces in the first quarter from the very high comparative quarter in2015, at 266,700 ounces, which included 28,500 ounces of gold doré produced butnot refined at the end of 2014. Lower production was also due to decreased outputat the Bissa mine in Burkina Faso and Berezitovoyemine in Russia. Gold sold also fell 28% year over year to 210,600 ounces.

* Agnico EagleMines Ltd. booked increasedgold production of 411,336 ounces in the first quarter of the year, compared to404,210 ounces in the same quarter of 2015. The Toronto-based gold producer attributedthe gain to higher grades and better recoveries at the LaRonde gold-silver mine in Canada, increased throughputat the Goldex goldmine in Canada and the Kittilagold mine in Finland, as well as higher grades from the Canadian Malartic operation.

* Brixton MetalsCorp. fully acquiredthe past-producing Hudson Bay silver mine in the Cobalt mining camp in Ontario.The company acquired the remaining stake in the property by issuing 27,300 commonshares as well as making a cash payment of C$1,000.

* Silver Bear ResourcesInc. entered into a nonbinding term sheet with its major shareholders,Inflection Management Corp. Ltd. and A.B. Aterra Resources Ltd. regarding an approximatelyUS$48.4 million funding packageconsisting of a US$42.9 million secured loan, a working capital facility of US$3.5million and a contingency facility of US$2 million. Funds will be used to proceedwith the final development, construction and commissioning of its Mangazeisky silverproject in Russia.

* Torex Gold ResourcesInc. unit Media Luna SA de CV officially inauguratedthe El Limon-Guajesgold mine in Mexico's Guerrero state, El Financieroreported. With an initial investment of US$800 million, the mine has a projectedlife of 15 years and is expected to become one of the most important gold operationsin the country.

* Goldcorp Inc.became the latest victim of a hackattack confirming a data breach of 14.8 gigabytes of uncompressed employeedata, Bloomberg News reported, citing Christine Marks, a spokeswoman for the company.The stolen data included worker login IDs and passwords, salary and budget documents,and other sensitive information.

* The Kyrgyz Republic General Prosecutor's Office and other statelaw enforcement agencies conducted a search at Centerra Gold Inc. unit Kumtor Gold Co.'s Bishkek-based offices to gather documentsrelating to a criminal case regarding allegedfinancial violations by the unit. Mine operations, however, remain unaffected,the company added.

* First MiningFinance Corp. completedthe acquisition of the Pittgold property in Quebec from BrionorResources Inc.

* Atlantic GoldCorp.'s DDV Gold Ltd. unit has securedan option to purchase partner MooseRiver Resources Inc.'s stake in the Touquoy gold deposit in Nova Scotia.

BULK COMMODITIES

* People with knowledge of the matter told Bloomberg News thatITOCHU Corp. and are separatelybidding for Anglo American Plc'smanganese assets in Australia and South Africa, as Anglo American is said to beconsidering offers for its 40% stake in a manganese joint venture with

* New World ResourcesPlc Chairman Gareth Penny said the company's OKD a.s. unit may run out of cash within two weeks and willnot be able to pay salaries. According to Bloomberg News, Penny warned that thecompany mayfile for bankruptcy as soon as April 29 while the Czech government has so farrefused to help with the restructuring of the coal miner's debt of some €300 million.

* The European Union has started the use of a system that willmonitorsteel imports and encourage trade partners to restrain or impose tariffs morequickly once the imports threaten European steel producers. According to BloombergNews, the system applies to products the account for about 40% of the EU's steelimports and is set to last until May 15, 2020.

* Thousands of German steel and electrical industry workers stagedwalkouts across the country on April 29 as after labor union IG Metall rejecteda 2.1% wage increase offer, saying the offered pay hike is far less than the 5%that it demanded, Reuters reported.IG Metall warned that the union would embark on 24-hour strikes if no deal was reachedby the Pentecost holiday in mid-May.

* OAO Holding Co.METALLOINVEST produced10 million tonnes of iron ore in the first quarter, relatively flat quarter on quarter,while pellet production fell 2.7% to 6 million tonnes. The company's hot briquettediron/direct-reduced iron output during the period increased by 3.1% to 1.5 milliontonnes, compared to that of the preceding quarter, and hot metal production jumpedby 20.7% to 800,000 tonnes. Meanwhile, crude steel production decreased by 4.3%to 1.1 million tonnes.

* AK Steel HoldingCorp. pricedits public offering of 52 million common shares at US$4.40 each, to raise up toUS$228.8 million, which can be pushed to US$263.1 million should the underwritersexercise their overallotment option in full. Proceeds will be usedto repay debt.

* United Co. RUSALPlc's aluminum production in the first quarter dropped 0.5% over the last quarter to 916,000 tonnes withits Russia Siberian smelters accounting for 94% of total aluminum output. Aluminumproduction in the quarter increased 1.7% year over year and aluminum sales grewby 9.2% over the previous quarter to 957,000 tonnes.

* Strong demand from investors has prompted to the size of its previously announcedoffering of senior unsecured notes to US$500 million from US$300 million. The cashraised will be used to repay outstanding amounts under its US$300 million unsecuredbridge facility and partly redeem its 7.125% senior unsecured notes due 2018.

* DaTong Coal IndustryCo. Ltd. swungto a net profit attributable to shareholders of 438.5 million Chinese yuan, or 26fen per share, in the first quarter, from a net loss of 298.2 million yuan, or 18fen per share, posted a year ago.

* Hebei Iron &Steel Co. Ltd. posted a net profit attributable to shareholders of 116.8million yuan, or 1.1 fen per share, for the first quarter, down 38.41% from the 189.7 million yuan, or 1.8 fen per share,posted a year ago. The company also said its full-year 2015 net profit fell by 17.75%year over year to 573.5 million yuan but still resumed its dividend payments, declaringa final dividend of 20 fen per 10 shares for 2015.

* Mongolian MiningCorp. continues to holdtalks with its bondholders to restructure the bonds on which the company misseda coupon payment last month, Reuters said in a news brief. The 30-day grace periodfor the US$26.6 million coupon on the miner's US$600 million 8.875% bonds due 2017expired April 29.

* China's Baosteel Group refutedU.S. Steel Corp.'s accusations,which include that Baosteel had stolen commercial secrets, and added that the stealingallegation is a "rootless speculation and subjective assumption," Reuterswrote.

* Baoshan Iron& Steel Co. Ltd. board secretary Zhu Kebing warnedthat the Chinese government's efforts to curtail overcapacity may be hampered bythe recent increase in steel prices, which is pushing previously closed steel millsto accelerate reopening.

* China's YanzhouCoal Mining Co. Ltd. improvedby 39.2% its net profit attributable to shareholders to 247.5 millionyuan in the first three months of the year compared to the same period of 2015.The group's operating income rose 36.1% year over year to 11.77 billion yuan, largelydue to a 5.38 billion yuan increase in revenue generated by Yanzhou's other businessesbesides coal, offsetting a 2.20 billion yuan decrease in sales revenue from thecoal business.

* Aluminum Corp.of China Ltd.'s first quarter profit attributable to owners of the parentfell by 60% to 19.2 millionChinese yuan from a restated 48.0 million yuan in the same period of 2015. The company'sbottom line was hurt by a 140% rise in income tax expenses to 148.0 million yuan,mainly due to the write off of deferred income tax assets, and the recognition ofdeferred income tax expenses.

* Vale SACFO Luciano Siani Pires said it didnot seek permission to buy up to 15% of FortescueMetals Group Ltd., BusinessDayreported. "We obviously do not have the resources nor the balance sheet todo it right now, so it is more of a long-term optionality," Pires said. "Itis welcome as an option, but nothing that we want to pursue in the short, nor evenperhaps in the medium term."

* Meanwhile, Vale CEO Murilo Ferreira said the global iron-oremarket is in a "bettercondition than expected," helped by improving Chinese demand, Reuters reported.

* Techint Groupsubsidiary Ternium S.A.,one of the largest shareholders of UsinasSiderúrgicas de Minas Gerais SA, will appealBrazil's Administrative Council for Economic Defense's decision that allowed toelect members of the Usiminas board, Istoe Dinheiro reported. Meanwhile, Reuters wrote the Elias Brito was namedas chairman of Usiminas in a "rare unified vote" between the steelmaker'stwo biggest shareholders.

* The BHP BillitonGroup-Vale joint venture SamarcoMineração SA posted a netloss of 5.8 billion Brazilian reais in 2015, versus a 2.8-billion-reais netprofit the year previous, due to the November 2015 tailings spill, Valor Econômico reported. The suspended ironmine has spent so far 144.4 million reais of the 9.83 billion reais provisionedto cover for potential liabilities and losses. In addition, Samarco ended 2015 witha net debt of 3.44 billion reais.

* Cliffs NaturalResources Inc. posted first-quarter net income attributable to shareholdersof US$108 million swingingfrom a loss of US$772.6 million in 2015. Consolidated revenues, meanwhile fell 32%year over year to US$306 million as cost of goods sold decreased by 25% to US$275million. Total U.S. iron ore production volume was 3.0 million long tons, down from5.4 million long tons recorded a year ago.

* The U.K.'s Business Secretary Sajid Javid highlighted the difficultsituation that the government faces with regard to securing a bidder for 's troubled U.K. operations,saying that pension liabilities are repulsing buyers, Reuters reported. "Ifthis pension fund liability is not taken care of, there is no buyer sitting outthere to buy this business," Javid added.

SPECIALTY

?* AREVA S.A.reported a 0.8% year-over-year drop in its first-quarter consolidated revenue to €826 million, which the company saidwas largely due to the schedule of uranium deliveries. Foreign exchange had a positiveimpact of €12 million over the period. The company produced 2,672 tonnes of naturaluranium in the quarter ended March 31, up from 1,772 tonnes in the first quarterof 2015.

* Cameco Corp.swung to a first quarter profitof C$78 million from a year-ago loss of C$9 million, while revenue fell to C$408million from C$566 million. The company booked mark-to-market gains on foreign exchangederivatives in the first quarter this year, compared to losses in the correspondingperiod of 2015, as well as higher gross profit in its fuel services segment. Itexpects to produce 25.7 million pounds of U3O8 this year, compared to 30.0 millionpounds previously expected, with CapEx forecast cut to C$275 million from C$320million.

* Energy Resourcesof Australia Ltd. entered into a A$100 million credit facility agreement with . The loan will be used to fulfilladditional funding requirements relating to the rehabilitation of the uranium project areain Australia's Northern Territory, should additional funding ultimately be required.The rehabilitation of the Ranger project area is required to be completed by 2026.

* Two uranium prospecting licenses in Namibia held by subsidiary were renewed for anothertwo years, allowing Deep Yellow to continue work programs on the Omahola project,as well as the Tumas/Tubas palaeochannel calcrete project. The Ripnes license, however,was relinquished.

* Critical ElementsCorp. granted Lomiko MetalsInc. an exclusive right and option to acquire up to a 70% interest in the Bourier lithium-copper project in Quebec. "Thisoption agreement with Lomiko will allow the Bourier property to be explored in detailfor a Lithium pegmatite discovery," President and CEO of Critical ElementsJean-Sebastien Lavallee commented.

* Western Australia's Department of Mines and Petroleum plansto auctionequipment from the Ellendale diamond site as part of the agency's clean-up of thesite.

* Russia's Ministry of Economy continues to insist on the possibilityof privatizing 18.9% of 's shares, valued at morethan 100 billion Russian rubles, Kommersantreported. This is the maximum packet size that the government may sell without losingcontrol. The Finance Ministry, however, refuses to consider the proposal to sellmore than 10.9% of the diamond company.

INDUSTRY NEWS

* According to Reuters, the London Metal Exchange has launchedan electronictracking system for warehouses — dubbed LMEshield — which will provide electronicreceipts to owners of the stored metal and secure tens of millions of tonnes ofmaterial outside the LME's own network of registered warehouses, in a bid to preventthe type of fraud that happened at the Qingdao Port in China during 2014.

* According to an exclusive report by SNL Metals & Mining,gold acquisitions were up in 2015, while base metals transactions . Overall transaction value was downslightly; however, gold and base metals proportions switched places from 2014: golddeals jumped by half in value and base deals dropped by half. Gold acquisitionsaccounted for 65% of the total price paid last year, compared with 39% in 2014.

The Daily Dose is updatedas of 7 a.m. New York time, and scans news sources published in Chinese, English,Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some externallinks may require a subscription.