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In This List

Yancoal raising US$2.5B to fund acquisition of Rio Tinto's coal assets

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020

Report Outlooks of Lithium and Cobalt

Essential Metals & Mining Insights July 2020


Yancoal raising US$2.5B to fund acquisition of Rio Tinto's coal assets

TOP NEWS

Yancoal raising US$2.5B to fund acquisition of Rio Tinto's coal assets

Yancoal Australia Ltd. will launch a US$2.5 billion equity raising to fund the acquisition of the Coal & Allied Industries Ltd. operation from Rio Tinto. The financing will comprise an entitlement offer to raise around US$2.35 billion, with Yancoal parent Yanzhou Coal Mining Co. Ltd. committing to subscribe for US$1.0 billion. Yancoal will also raise US$150 million via a share placement to strategic investors to fund the remaining amount required under the transaction.

Mosaic swings to Q2 profit on higher sales volumes

Mosaic Co. posted second-quarter net income of US$97.3 million, swinging from a year-ago loss of US$10.2 million. Net sales for the period improved to US$1.75 billion, compared to US$1.67 billion a year earlier, with higher sales volumes offsetting lower phosphate prices realized.

BHP, Mitsubishi explore sale of Gregory Crinum coal JV in Queensland

BHP Billiton Group and partner Mitsubishi Corp. are preparing to initiate a formal auction for their Gregory Crinum coal complex in Queensland, Australia, The Australian Financial Review's Street Talk reported. The site has not produced coal since November 2015.

DIVERSIFIED

* Deutsche Bank analysts see Rio Tinto announcing a dividend of US$1.345 per share for the first six months of the year when it unveils its financial results on Aug. 2, The Age reported. The bank also expects the company's net debt to drop to US$7.6 billion, which equates to a 14% gearing, well below the targeted range of 20% to 30%.

* Cox Oil Offshore LLC purchased certain interests in the Gulf of Mexico Outer Continental Shelf from Freeport-McMoRan Oil & Gas, a subsidiary of Freeport-McMoRan Inc.

* PT Antam (Persero) Tbk. posted year-on-year growth in the production of most of its metal products during the second quarter, except for gold, silver and alumina. The company produced 6,392 tonnes of ferronickel, 1.1 million wet tonnes of nickel ore, 13,214 ounces of gold, 95,970 ounces of silver, 113,785 wet tonnes of bauxite and 18,368 tonnes of alumina.

BASE METALS

* Fortescue Metals Group Ltd. has decided to buy back the 125-MW gas-fired power station that supplies its Solomon Hub operations in Western Australia. The company plans to fully repay the US$348 million cost from available cash in November.

* The Indian government will offload a 4% stake in Hindustan Copper Ltd. through an offering of 37 million shares in the copper miner, BloombergQuint reported. The floor price was set at 64.75 Indian rupees per share, at an 8% discount to Aug. 1 closing price of 70.6 rupees.

* Katanga Mining Ltd., a Glencore Plc subsidiary, said some of its past financial statements likely need to be restated as the company's independent directors conduct a review. Katanga also said the review would delay the company's second-quarter financials beyond Aug. 14 and might affect the value and classification of inventories and other assets.

PRECIOUS METALS

* Saudi Arabian Mining Co.'s second-quarter net profit jumped 146% year over year to 434 million Saudi riyals, driven by the company's cost-controlling initiatives amid rising commodity prices. Sales in the period rose 17% to about 3 billion riyals.

* Endeavour Mining Corp. remains on track to meet fiscal 2017 production guidance of between 600,000 and 640,000 ounces of gold and all-in sustaining costs of between US$860/oz and US$905/oz. This comes after second-quarter output increased year over year to 152,283 ounces of gold from 138,487 ounces of gold produced a year earlier as AISC dropped to US$897/oz from US$901/oz.

* Royal Bafokeng Platinum Ltd. posted a net loss attributable to company owners of 28.8 million South African rand for the six months that ended June 30, swinging from net income of 150 million rand a year ago. The company attributed the loss mainly to a one-off restructuring charge of 57.1 million rand and a lower realized average rand basket price.

* AngloGold Ashanti Ltd. expects to book a headline loss for the first half of between US$80 million and US$98 million, or between 19 cents and 23 cents per share. By comparison, for the first half of 2016, the Johannesburg Stock Exchange-listed miner reported headline earnings of US$93 million, or 23 cents per share. AngloGold attributed the loss to US$86 million post-tax write-down of some of its South African assets.

* Jinchuan Group International Resources Co. Ltd expects to book a consolidated profit attributable to the owners of around US$8 million for the six months that ended June 30, swinging from a net loss of US$16 million in the same period of 2016.

* A federal court in Argentina ruled that the country's Supreme Court should take up a case related to a government request to suspend operations at Barrick Gold Corp.'s Veladero gold mine, Reuters reported, citing a court filing.

* Mark Skelton and Trevor Birch of Duff & Phelps Ltd. were appointed joint administrators of Asa Resource Group Plc. This comes after the company recently halted trading of its shares on London Stock Exchange, pending the clarification of its financial position as part of a larger investigation over US$4.3 million in funds unaccounted for.

* Chinese buyers who have been active in the global gold and silver sectors may be more interested in directly purchasing the physical commodities rather than investing in the mining process, according to Ned Naylor-Leyland, fund manager at the London-based Old Mutual Global Investors.

* Fresnillo Plc's profit in the first half of the year surged 87.2% year over year to US$310.1 million, or 41.9 U.S. cents per share. The company announced a dividend of 10.6 cents per share for the six-month period, compared to 8.6 cents per share a year ago.

* Centerra Gold Inc. is now expecting higher gold production of between 785,000 and 845,000 ounces for the full year, after boosting output in the second quarter, from between 715,000 and 795,000 ounces previously, due to higher grades from its Kumtor mine in Kyrgyzstan.

* Kula Gold Ltd.'s major shareholder, Pacific Road, has formally accepted Geopacific Resources Ltd.'s higher takeover offer of 1 share for every 1.1 Kula share.

* Kin Mining NL secured an option to purchase a used 2.5 MW ball mill from Macca-Interquip for about A$900,000 for its wholly owned Leonora gold project in Western Australia.

BULK COMMODITIES

* Maintenance works impacted on OAO Metalloinvest's iron ore production in the second quarter of 2017, pushing output down by 2.6% year over year to 10.1 million tonnes. An ongoing overhaul at the Ural Steel facility weighed on crude steel production, which dropped year over year by 4.7% to 1.1 million tonnes.

* Ternium SA posted a 62% year-over-year increase in its attributable net income in the second quarter, driven by higher iron ore and steel shipments as well as stronger sales. Attributable net income came in at US$249.7 million, up from US$154.0 million reported in the year-ago period.

* JSW Steel Ltd.'s net profit by 43% year over year to 6.24 billion Indian rupees in the first fiscal quarter of 2018. Additionally, the company's board approved the raising of long-term funds through the issuance of nonconvertible debentures of up to 50 billion Indian rupees.

* Brazil's competition regulator Cade approved Ternium's acquisition of ThyssenKrupp AG's 5 million-tonne-per-annum slab facility, Companhia Siderúrgica do Atlântico, without restrictions, Metal Bulletin reported.

* BHP disputed a report that claimed the mining giant wanted to sell its 50% stake in the Samarco iron ore joint venture in Brazil to project partner Vale SA, Reuters reported Aug. 1, citing BHP spokesman Ben Pratt. Brazilian daily O Globo ran a column July 30 reporting that BHP had agreed to sell its project stake to partner Vale, with the transaction expected to take six months to complete.

* A Brazilian regulator cleared Vale's US$2.5 billion sale of its Vale Fertilizantes unit to Mosaic without restrictions, Reuters reported.

* Outokumpu Oyj divested its pipe plant in Wildwood, Fla., to Ta Chen Stainless Pipe Ltd. unit Ta Chen International Inc. for about €25 million.

* U.S. Steel Corp. said an investigation is underway into an incident at the hot strip mill of the company's Great Lakes Works facility in Michigan. Five employees were transported to local hospitals for treatment. Operations at the hot strip mill remain suspended, but other operations at Great Lakes have not been affected.

* Chinese pollution regulators accused units of state-owned China Minmetals Group of violating pollution laws in Hunan province. According to Reuters, an audit recently published by the Ministry of Environmental Protection revealed that companies have failed to investigate and deal with dozens of environmental violations dating back to 2013.

* IRC Ltd.'s K&S iron ore mine in Russia crossed the 1.0 million-tonne mark for the production of iron ore concentrate since its initial production. K&S is operating at about 60% of its capacity and is on track to increase production to near full capacity by the end of 2017.

* Hainan Mining Co. Ltd.'s board approved a plan to apply for a credit line of 300 million Chinese yuan to fund working capital.

SPECIALTY

* FMC Corp. saw earnings for the second quarter climb 14% to US$74.7 million, or 56 cents per share, compared to the same quarter of 2016, largely due to strong growth in lithium segment earnings. Lithium segment earnings rose to US$24.2 million from US$16.5 million a year ago, while revenue was up 17% at US$74 million.

* Anglo American Plc unit De Beers SA reported provisional sales of US$572 million of rough diamonds in its sixth sales cycle of the year, compared to US$541 million in the fifth sales cycle.

* Russian diamond miner PJSC Alrosa plans to sell a rare collection of polished diamonds produced domestically, including a giant 51.38-carat gem at an online auction in November, Reuters reported.

* Hastings Technology Metals Ltd. signed a memorandum of understanding to sell 2,500 tonnes of mixed rare earth carbonate per year to Baotou Sky Rock Rare Earth New Material Co. Ltd. The material will come from the company's Yangibana rare earths project in Western Australia.

* Wealth Minerals Ltd. executed a binding letter agreement for an option to acquire 49% of the issued shares of San Antonio Sociedad Contractual Minera and a 24.5% stake in the Seven Salars lithium project in Chile.

* A preliminary economic assessment on Karelian Diamond Resources Plc's Lahtojoki diamondiferous kimberlite pipe in southeastern Finland estimated that 2.11 million carats are recoverable, giving it a gross value of US$211 million.

INDUSTRY NEWS

* Effective immediately, several major stock market indexes operated by S&P Global Inc. will no longer bring in companies with nonvoting share classes.

* Bold Ventures Inc. and Lac des Mille Lacs First Nation entered into a strategic alliance agreement to identify business-driven, resource-related opportunities in Canada.

* Luxembourg's new law governing space mining was enforced Aug. 1, making Luxembourg the first country in Europe to offer a legal framework to ensure private companies' rights over resources they extract in space, Reuters wrote.

The Daily Dose is updated as of 7 a.m. Hong Kong time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.