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In This List

Vale books Q2'19 loss on US$2.14B write-downs; Rio Tinto torn on share buyback

Mining Exploration Insights December

Mining Exploration Insights: Dip in gold drilling weighs on results

Mining Exploration Insights: Is the exploration sector back on recovery?

State of the Market: Mining Q2-2019


Vale books Q2'19 loss on US$2.14B write-downs; Rio Tinto torn on share buyback

TOP NEWS

Vale sinks to Q2'19 loss on US$2.14B in write-downs

Vale SA swung to a second-quarter loss of US$133 million, or 3 cents per share, from last year's profit of US$76 million, or 1 cent per share, driven by US$2.14 billion in write-downs related to the Samarco and Feijao dam disasters.

Rio Tinto torn on share buyback as top shareholder Chinalco nears ownership cap

Rio Tinto is expected to return up to US$4 billion to investors upon the release of its first-half earnings, but the mining major is torn on whether to launch a share buyback as it may force top shareholder Aluminum Corporation of China to sell stock, The Wall Street Journal reported. Chinalco's 14.5% stake in Rio Tinto is on the brink of a 15% Chinese ownership cap set by Australian regulators in 2008, the report said.

Glencore's Q2'19 own-sourced copper output down 2% YOY

Glencore PLC's second-quarter own-sourced copper production inched down 2% from a year earlier to 342,300 tonnes as cobalt output grew 7% to 10,400 tonnes. Copper production was hit by a 50% drop from the Mutanda operations in the Democratic Republic of the Congo and a 31% decline from Mopani in Zambia.

BASE METALS

* Turquoise Hill Resources Ltd. slipped into the red in the second quarter with a net attributable loss of US$446.5 million, or 22 cents per share, from a year-ago profit of US$171.3 million, or 9 cents per share, due to a US$596.9 million impairment of the Oyu Tolgoi mine's cash-generating unit and adjustments in deferred tax assets during the period.

* Annual repairs at PJSC Norilsk Nickel Co.'s Harjavalta refinery in southwestern Finland weighed on the top nickel and palladium producer's output in the second quarter. Nickel production declined by 4% quarter over quarter to 53,767 tonnes, while copper declined 2% to 124,539 tonnes.

* Vedanta Resources Ltd. launched arbitration proceedings over Zambia's attempt to liquidate the company's Konkola Copper Mines PLC unit, Reuters reported.

* PT Vale Indonesia Tbk. reported second-quarter production of 17.6 million tonnes of nickel in matte, a 35% quarterly increase, due to the completion of planned maintenance activities. EBITDA surged 620% to US$28.8 million on higher deliveries, higher prices and lower cash costs.

* Independence Group NL's fiscal fourth-quarter profit slumped to A$30.1 million from A$40.3 million in the year-ago quarter as revenue fell to A$204.1 million from A$243.1 million.

* Nexa Resources SA produced 91,000 tonnes of zinc in the second quarter, 1% lower compared to 92,000 tonnes of zinc in the year-ago period, due to lower production at the Cerro Lindo mine in Peru.

* Nyrstar NV resumed production at its Port Pirie lead smelter in South Australia after the operation was suspended in May due to a blast furnace outage, Reuters reported. The company also completed its capital restructuring, allowing Trafigura Group Pte. Ltd.'s takeover.

* General Moly Inc. confirmed that 20% shareholder AMER International Group Co. Ltd. is in default of their investment agreement and that it is seeking urgent financing to stave off bankruptcy.

* Afritin Mining Ltd. expects to produce first tin concentrate from its Uis mine in Namibia in early August.

PRECIOUS METALS

* AngloGold Ashanti Ltd. expects headline earnings in the range of US$111 million to US$129 million for the six months ended June 30, increasing by 21% year over year from US$99 million based on the midpoint of the guidance range.

* Toronto-listed Kinross Gold Corp.'s net earnings attributable to common shareholders for the second quarter climbed to US$71.5 million from US$2.4 million a year ago. Kinross has also agreed to acquire the Chulbatkan gold project in Russia from N-Mining Inc. for US$283 million in cash and shares.

* Alamos Gold Inc.'s consolidated gold production in the second quarter totaled 125,200 ounces, in line with guidance and the year-ago quarter, as its Island gold mine in Ontario achieved record gold production of 39,500 ounces for the third straight quarter.

* Osisko Gold Royalties Ltd. swung to a second-quarter loss of C$6.5 million, or 4 cents per share, from a year-ago profit of C$511,000, or nil per share.

* Golden Star Resources Ltd. cut its full-year gold production guidance to the range of 190,000 ounces to 205,000 ounces, from 220,000 ounces to 240,000 ounces, after an underwhelming second-quarter performance at its Wassa and Prestea mines in Ghana.

* Resolute Mining Ltd. announced the agreed takeover of Toro Gold Ltd., a private British company that owns several gold projects in West Africa, including the producing Mako gold mine in Senegal.

* While Kirkland Lake Gold Ltd. posted a weaker second quarter, the company's especially strong first-quarter results helped achieve a record half-year performance.

* Crystallex International Corp. must apply for an exemption from U.S. sanctions on Petróleos de Venezuela SA before seizing shares in the latter's U.S. unit CITGO Petroleum Corp. as part of a US$1.4 billion award, Reuters reported, citing Alejandro Grisanti, an adviser to Venezuelan opposition leader Juan Guaido.

* Sylvania Platinum Ltd. achieved record production of 21,789 ounces of 4E platinum group metals in the fourth quarter of its fiscal 2019 to reach a full-year record of 72,090 ounces.

* Centamin PLC's second-quarter pretax profit increased 17% to US$25.7 million from US$22.0 million in the same quarter of 2018. Revenue totaled US$147.3 million, a 16% increase.

BULK COMMODITIES

* Former China Zhongwang Holdings Ltd. President and Chairman Liu Zhongtian was indicted by U.S. federal prosecutors for allegedly smuggling large amounts of extruded aluminum to evade US$1.8 billion in tariffs imposed in 2011, Reuters reported.

* Higher demand buoyed Evraz PLC's second-quarter steel sales by 7.7% to 3.38 million tonnes quarter over quarter, while its output of crude steel ticked up 0.5%. The Russian steelmaker produced 3.5 Mt of crude steel during the period, bringing its output for the first half to just shy of 7 Mt, a 2.7% increase year over year.

* Israel Chemicals Ltd.'s net income attributable to shareholders in the second quarter rose to US$158 million from US$101 million in the year-ago quarter. Adjusted net income in the quarter climbed to US$151 million, from US$113 million a year ago. Sales jumped to US$1.43 billion from US$1.37 billion in the prior-year quarter.

* Champion Iron Ltd. achieved record quarterly production of about 2.0 million wet tonnes of high-grade 66.2% iron ore concentrate for the second quarter, up from 1.5 Mt produced a year ago. Attributable EPS rose to 9 Canadian cents, from 3 cents in the year-ago period, while revenue jumped to C$277.9 million from C$150.7 million.

* Warrior Met Coal Inc. reported second-quarter net income of $125.5 million, or $2.43 per diluted share, compared to net income of $91.3 million, or $1.72 per diluted share in the second quarter of 2018. The company reported cash flows of $231.4 million in the recent quarter compared to $132.5 million in the year-ago period.

* NACCO Industries Inc.'s consolidated net income totaled $8.0 million, or $1.14 per diluted share, during the second quarter, an increase from $6.4 million, or 92 cents per diluted share, in the year-ago period.

* Alcoa Corp. expects to book third-quarter charges of about US$135 million, or 73 cents per share, after PARTER Capital Group AG closed its acquisition of the Aviles and La Coruña aluminum plants in Spain.

* Kalium Lakes Ltd. secured the 10 Mile Lake West exploration license, part of its Beyondie sulfate of potash project in Western Australia.

* Ternium SA CEO Máximo Vedoya expects the company's Mexican operations to benefit from an anticipated hike in steel product prices in North America due to an increase in milling prices in the U.S., Fastmarkets MB reported.

* Chinese steel companies are at a risk of facing a surge in costs once environmental regulations are tightened as they are falling behind international counterparts in terms of curbing carbon intensity, Reuters reported, citing a research report by the Climate Disclosure Project.

* India denied conducting a probe that may result in safeguard duties on imported steel products, Fastmarkets MB reported, citing the country's Directorate General of Trade Remedies.

SPECIALTY

* New Mali Lithium Ltd. Managing Director Chris Evans laid out his vision for the embattled company to restore confidence after multiple board and name changes and move toward finally delivering its Malian Goulamina project by late 2021. Evans appointed new key personnel, including chairman Alistair Cowden, to address weaknesses in the company's structure.

* Another shareholder in Energy Resources of Australia Ltd., Zentree Investments, accused Rio Tinto of plotting a takeover after the mining major urged the company to launch an equity raising to fund cleanup costs at the Ranger uranium mine in Australia's Northern Territory, The Australian Financial Review reported.

* In the second quarter, Bushveld Minerals Ltd.'s vanadium production rose 18.0% yearly to 742 million tonnes. Vanadium sold totaled 607 Mt, a 14.8% decrease, at a 43.1% lower average price of US$39.40 per kilogram.

* A Western Australia court dismissed an appeal by aboriginal traditional owners and the state's conservation council that opposed Cameco Corp.'s Yeelirrie uranium project, on the grounds of the potential extinction of 12 species of endemic subterranean crustaceans, The Australian reported.

* Altura Mining Ltd. signed a binding off-take agreement with Guangdong Weihua Corp. for a five-year annual supply of 50,000 tonnes of lithium concentrate from the Altura lithium mine in Western Australia.

INDUSTRY NEWS

* The government of Azuay province in Ecuador is seeking to make mining development subject to a popular referendum amid concerns over environmental impact, Reuters reported.

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