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Franco Nevada posts record Q1 output; Yamana swings to Q1 profit; Glencore Q1 copper, zinc output down

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


Franco Nevada posts record Q1 output; Yamana swings to Q1 profit; Glencore Q1 copper, zinc output down

TOP NEWS

Franco-Nevada Corp.posted first-quarter net income of US$30.0 million, up from net income of US$19.2million reported a year ago. Revenue, meanwhile, jumped 21% year over year to a record US$132.0 million, duein part to the company's investments at the Antamina and Antapaccaymines. The company's mineral assets also yielded a record 106,621 gold equivalentounces during the period, representing a 25% increase on a yearly basis.

Yamana Gold swings to profit in Q1

Yamana Gold Inc.posted first-quarter net earnings from continuing operations of US$38.4 million,swinging from a net lossof US$135.2 million booked a year ago. Revenue, however, was down at US$430.3 millionfrom US$458.1 million booked a year ago. Gold production totaled 308,061 ouncesduring the period, up 3% year over year.

Glencore's Q1 copper, zinc, coal output falls on cutbacks

Glencore Plcposted lower year-over-yearproduction in the first quarter for copper, zinc, lead, coal as well as oil, asit followed through on previously announced production cuts. Production from ownsources in the three months dropped 4% for copper to 335,000 tonnes, 28% for zincto 257,100 tonnes and 6% for lead to 71,000 tonnes, on a yearly basis. Coal productionof 29.7 million tonnes was down 17% year over year. Production of nickel, gold,silver and cobalt improved on a yearly basis.

DIVERSIFIED

* Glencore Plcposted lower year-over-yearproduction in the first quarter for copper, zinc, lead, coal as well as oil, asit followed through on previously announced production cuts. Production from ownsources in the three months dropped 4% for copper to 335,000 tonnes, 28% for zincto 257,100 tonnes and 6% for lead to 71,000 tonnes, on a yearly basis. Coal productionof 29.7 million tonnes was down 17% year over year. Production of nickel, gold,silver and cobalt improved on a yearly basis.

* Responding to 155 billion Brazilian reais , BHP Billiton Group said it has not received formal noticeof the claim from the federal public prosecution service, adding that it believesthe March agreement entered with the federal attorney general of Brazil, the statesof Espirito Santo and Minas Gerais and certain other public authorities will providethe "appropriate platform" to address the impact of the dam failure.

BASE METALS

* Amerigo ResourcesLtd.'s net loss widenedto US$4.4 million in the first quarter, from US$4.1 million a year ago, while revenueincreased to US$19.3 million from US$17.7 million as lower copper prices offsethigher production.

* Atalaya Miningplc said the temporary tailings disposal suspension at its Riotinto copper project in Spain has now been lifted. InApril, the government of Spain's Andalucia region ordered the company to halt thedeposition of tailings but following a satisfying inspection has allowed the companyto use the facilities with immediate effect.

* Indonesian miner PTBumi Resources Minerals Tbk is working to finalize thesale of its stake in Newmont MiningCorp.'s local operations, Reuters wrote, citing a spokesman for thecompany.

* Chinalco YunnanCopper Resources Ltd. and ElementosLtd. terminatedtheir Millennium joint venture as part of the sale of Element Minerals Australia Pty. Ltd. to

PRECIOUS METALS

* Franco-NevadaCorp. posted first-quarter net income of US$30.0 million, up from netincome of US$19.2 million reported a year ago. Revenue, meanwhile, year over year to a record US$132.0million, due in part to the company's investments at the Antamina and Antapaccay mines. The company's mineral assets also yieldeda record 106,621 gold equivalent ounces during the period, representing a 25% increaseon a yearly basis.

* Yamana Gold Inc.posted first-quarter net earnings from continuing operations of US$38.4 million,swinging from a net lossof US$135.2 million booked a year ago. Revenue, however, was down at US$430.3 millionfrom US$458.1 million booked a year ago. Gold production totaled 308,061 ouncesduring the period, up 3% year over year.

* China is planning to changeprocedures for cross-border trade of gold and gold products by allowingcompanies to apply for a single permit that can be used for up to 12 shipments,according to a joint statement from the People's Bank of China and the General Administrationof Customs. The new rules will be effective June 1 and will be applicable for testingin Beijing, Shanghai, Guangzhou, Qingdao, Nanjing and Shenzhen.

* Primero MiningCorp. posted a net lossof US$13.2 million for the first quarter of 2016, swinging from a year-ago profitof US$3.6 million. The loss included the impact of foreign exchange rate changeson deferred tax balances and an adjustment to remove the normalization of inventorycosts at the San Dimasmine, after taxes. Revenue fell to US$50.5 million, compared to US$73.3 milliona year earlier.

* Osisko Gold RoyaltiesLtd. swung to a net loss attributable to shareholders of C$60,000 inthe three months ended March from earnings of C$10.3 million reported a year earlier.Revenue, meanwhile, roseto C$15.6 million from C$10.6 million in 2015 as a result of higher in-kind royaltiesearned.

* Zijin MiningGroup Co. Ltd.'s board proposed that no profit distribution will becarried out for 2015 and there will be no conversion of the capital reserve intoshare capital in a bid to accelerate the progress of the nonpublic issuance of Ashares, Infocast reported.In addition, an interim profit distribution will be proposed for 2016.

* Gold Road ResourcesLtd. signed a native titleagreement with the Yilka People and the Cosmo Newberry Aboriginal Corp.over its Gruyere and Central Bore gold projects, part of the Yamarna project in Western Australia. With theagreement in place, the company will be able to submit the state deed to acquirea mining lease for the Gruyere and Central Bore projects.

* The U.S. District Court for the Eastern District of Pennsylvaniaordered A1 Specialised Services and Supplies Ltd. to pay a total of US$201 million to Impala Platinum Holdings Ltd., confirming the award issuedby the London Court of International Arbitration. The court ruling follows a disputebetween the companies, whereby Implats claimed that A1 defaulted on certain amountsdue.

* Mariana ResourcesLtd. closed its previously flagged private placement of 330 millionshares at 1.82 pence each, raising the maximum £6 million amount, and revealed SandstormGold Ltd. as a new significant shareholderwith a 7.56% interest in the company.

* MiddleIsland Resources Ltd. is looking to acquire BlackOak Minerals Ltd.'s Sandstonegold project in Western Australia for A$2.5 million. The project includes a 600,000-tonne-per-annumcarbon-in-pulp processing plant, associated infrastructure and a considerable inventoryof spares.

* Chile's gold project portfolio totals US$1.28 billion thisyear, down 93% compared with 2011, mainly consisting of Exeter Resource Corp.'s Caspiche, KingsgateConsolidated Ltd.'s NuevaEsperanza, Atacama PacificGold Corp.'s CerroMaricunga and KinrossGold Corp.'s LaCoipa, according to data from Chilean copper commission Cochilco. Thelower amount of investment in gold is mostly due to the absence of large projects,given the suspension of Barrick GoldCorp.'s Pascua Lamaand the restructuring of Barrick's CerroCasale and Teck ResourcesLtd.'s El Morroprojects, daily Pulso reported.

* Arian SilverCorp. secured an exclusiveright to evaluate Tierra Nuevo Mining Ltd.'s Noche Buena gold-silvertailings project in Mexico for a further 120 days for consideration of US$25,000.

* Arizona MiningInc. completed the acquisitionof Arizona Minerals Inc.and now owns 100% of the Hermosasilver project in Arizona, which includes the Taylor deposit.

BULK COMMODITIES

* Mosaic Co.reported first-quarter net earnings of US$256.8 million, falling from US$294.8 million booked a year earlier. Netsales also fell to US$1.67 billion, from US$2.14 billion last year, reflecting lowerprices, as well as lower potash sales volumes. Company CEO Joc O'Rourke expectsprofitability to improve in the second half of the year.

* Brazilian steelmaker GerdauSA's first-quarter net profit plunged94.8% year over year to 14 million Brazilian reais due to lower operatingincome. Likewise, net sales fell 3.5% year over year to 10.09 billion reais mainlydue to lower shipments by the Brazilian steel division in the domestic market, whichwere partially offset by higher net sales by the North American division when translatedinto Brazilian currency.

* Shandong Iron& Steel Co. Ltd.'s net loss attributable to shareholders to 332.9 million Chineseyuan in the first quarter, from a net loss of 190.0 million yuan posted a year ago.The company produced 490,300 tonnes of steel bars, 347,900 tonnes of plates andstrips and 1.0 million tonnes of other steel products in the first quarter.

* Jindal Steel& Power Ltd.'s board has approved the saleof a 1,000-MW power unit of Jindal Power Ltd. in Chhattisgarh to JSW Energy Ltd.for 65 billion Indian rupees, subject to customary regulatory approvals and otherconditions precedent.

* Kibo Mining Plccompleted a power definitivefeasibility study for its Mbeyacoal-to-power project in Tanzania and is looking forward to financial close. Thenew study allows the expansion of the power station to at least 600 MW, based onthe recently updated coal resource at Mbeya.

* A day after NewWorld Resources Plc's main coal-mining unit, OKD as, filed a bankruptcy petition, the company that saidas OKD is its only trading subsidiary, the likelyimpact is that the remainder of the group would be "wound up orbroken up in an orderly manner." Shares of the London-listed company have beensuspended from trading on the London Stock Exchange, effective immediately, whileNew World Resources' requests to suspend shares on the Prague Stock Exchange andWarsaw Stock Exchange are currently being processed.

* Fortescue MetalsGroup Ltd. issueda US$650 million repayment notice for the company's 2019 senior secured term loan,which will be made at par from Fortescue's accumulated cash and will generate interestsavings of US$28 million per year. According to Fortescue CFO Stephen Pearce, thedebt repayment of US$650 million, in addition to the US$577 million that the companyrecently paid for 2019 senior unsecured notes, brings total debt repayments forfiscal year 2016 to US$2.3 billion, generating annual interest savings of US$164million.

* Coal of AfricaLtd. reached an agreementwith Rio Tinto Minerals DevelopmentLtd. and Kwezi MiningPty. Ltd. over the deferred consideration payable by Coal of Africaunit MbeuYashu Pty. Ltd.to the sellers for the acquisition of the Chapudi coal assets in South Africa.

* The U.S. Commerce Department plansto impose preliminary duties on welded stainless pressure pipe imports from Indiaafter determining that the products were being dumped at below market prices, Reutersreported.

* British Prime Minister David Cameronsaid Britain's exit from the EU poses severechallenges for the country's steel industry, Reuters wrote. British-made steel,which is commonly sold within the EU's single market, may be subject to tariffsif the country falls outside that market, Cameron noted.

* The European Commission in May will introduce a permissivemechanism whereby importers of steel will have to ask Brussels for licenses to importrolled products and pipes, in a move which is expected to impact most metallurgicalcompanies in Russia, Kommersant reported.

SPECIALTY

* The world's largest 1,190-carat diamond discovered inover a century is expected to fetchabout US$70 million in an auction scheduled to take place next month in  London, Reuters reported, citing internationalauction house Sotheby's. The diamond was discovered by Lucara Diamond Corp. in Botswana in November 2015.

* The strategic review for Rio Tinto unit EnergyResources of Australia Ltd. determined three near-term for the company, includingcontinuation of the progressive rehabilitation of the Ranger project area, maximizing the generationof cash flow from the processing of stockpiled ore, which can potentially be sustaineduntil late 2020, and preserving the option for the future development of Ranger3 Deeps via ongoing care and maintenance.

* Gemfields Plc's75%-owned Kagem Mining Ltd. in Zambia achievedproduction of 7.1 million carats of emerald and beryl, compared to 9.9 millioncarats in the year-ago quarter. Production from the 75%-owned Montepuez Ruby MiningLtda. operations in Mozambique increased to 2.0 million carats of ruby and corundum,from 1.4 million carats a year ago.

* Nevada SunriseGold Corp. and ResolveVentures Inc. have entered into a definitive joint venture and option agreement after signing an interimdeal in March. The agreement provides for Resolve to earn up to a 50% working interestin the Neptune lithiumproperty in Nevada.

* Cypress DevelopmentCorp. acquiredan additional 12 placer claims through staking in Nevada's Clayton Valley. The claimscompliment the company's existing 1,520-acre Clayton Valley lithium brine project.

INDUSTRY NEWS

* Saudi Arabia and Sudan will kick off exploringfor resources in the Red Sea by 2020. The program, which will include gold, copperand silver, is expected to fetch about US$20 billion in revenues, Reuters reported.

* Graham Short, national policy manager for Australia's Associationof Mining and Exploration Companies Inc., said a A$100 million allocation to GeoscienceAustralia to further innovation in mining is "excellentnews" and the reduction in corporate tax for Australian resident companiesto 25% by 2026/27 is "a significant step in the right direction."

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