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Glencore's H1 earnings plummet; Stanmore Coal gets A$442M indicative offer

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Glencore's H1 earnings plummet; Stanmore Coal gets A$442M indicative offer


Glencore's H1'19 earnings down 92% YOY on lower commodity prices, African impairments

Glencore PLC's attributable net income for the first half plummeted 92% year over year to US$226 million, or 2 U.S. cents per share, mainly due to lower average commodity prices and impairment charges at its African copper and Chad oil portfolios. Total revenue slipped to US$107.1 billion, from US$108.55 billion a year ago. The company will shut down the Mutanda copper-cobalt mine in the Democratic Republic of the Congo at the end of the year due to slumping cobalt prices and rising costs, the Financial Times reported, citing a company letter to employees.

Stanmore Coal valued at up to A$442M in indicative takeover bid

Winfield Group Investments Pty. Ltd. lodged a nonbinding, off-market takeover bid to fully acquire Stanmore Coal Ltd. at between A$1.50 and A$1.70 per share, valuing the company between A$390 million and A$442 million. Winfield is a privately owned Australian coal company led by Executive Chairman Rob Hammond, the former managing director and COO of Peabody Energy Corp. unit Peabody Energy Australia.

Semafo cuts FY'19 gold production guidance; Q2 output, sales grow YOY

Semafo Inc. lowered its full-year gold production guidance following a pit-wall failure at its Mana gold operation in Burkina Faso. The company now expects to produce 350,000 to 380,000 ounces of gold in the year, compared to the previous guidance of 390,000 to 430,000 ounces. Gold production in the second quarter surged 118% year over year to 99,800 ounces.


* Codelco agreed to divest its 37% stake in the GNL Mejillones natural gas plant in Chile for US$193.5 million to the Ameris Capital AGF fund, Reuters reported.

* Hudbay Minerals Inc. terminated an agreement to earn a 70% interest in the Llahuin copper project in Chile from Southern Hemisphere Mining Ltd.

* Katanga Mining Ltd. lowered its full-year production guidance to 235,000 tonnes of copper and 14,400 tonnes of cobalt from the previous guidance of 285,000 tonnes of copper and 26,000 tonnes of cobalt following an operational review aimed at improving the company's prospects.

* Revelo Resources Corp. is optioning its 14,000-hectare Arrieros copper project in Chile after it was separated from the original 30,000-hectare Montezuma project, the remainder of which is optioned by BMR Group PLC.


* Hecla Mining Co. swung to a net loss of US$46.5 million in the second quarter from a net profit of US$12.1 million in the year-ago period, while revenue fell to US$134.2 million from US$147.3 million. The company increased its full-year silver output guidance to 11.7 million ounces from 10 Moz.

* First Majestic Silver Corp. narrowed its net loss for the June quarter to US$12 million from US$40 million a year ago, with total revenue rising to US$83.7 million from US$79.7 million.

* In response to protests by thousands against its Kirazli gold project in Turkey, Alamos Gold Inc. CEO John McCluskey said in an interview with Reuters that the company has prepaid for reforestation in the area and the feared leak of cyanide into the environment is impossible due to preventive measures taken by the miner.

* B2Gold Corp. achieved record quarterly gold production in the second quarter of 246,020 ounces, a 2% increase year over year and 8% over budget.

* Premier Gold Mines Ltd. produced 16,450 gold ounces and 51,792 silver ounces in the second quarter, compared to 16,007 gold ounces and 51,746 silver ounces a year ago.

* Pure Gold Mining Inc. approved a decision to build the Madsen Red Lake mine after closing a US$90 million project financing package with Sprott Resource Lending Corp. that will fully fund the development costs for an underground mine at Pure Gold's Madsen gold project in Ontario.

* Northam Platinum Ltd. bought over 5.7 million preference shares worth 403.5 million South African rand held by its partner, Zambezi Platinum (RF) Ltd.

* Shanta Gold Ltd. entered into a nonbinding term sheet with an East African conglomerate for an unsecured loan facility of US$10 million. The facility is conditional on the company raising at least US$15 million in its planned IPO on the Dar es Salaam stock exchange in Tanzania.

* Kirkland Lake Gold Ltd. is looking for "cash-hungry development assets" to add to its portfolio of high-grade mines in Australia and Canada, The Australian reported, citing Ian Holland, the company's vice president of Australian operations.

* Blue Lagoon Resources Inc. signed a letter of intent to acquire ASIC Mining Inc., holder of an option to purchase the Pellaire gold property in British Columbia.

* Erdene Resource Development Corp. secured the mining license for its Bayan Khundii gold project in Mongolia and will now focus on completing a pre-feasibility study and obtaining environmental approvals.

* Dozens were injured after local residents and workers clashed at Zhong Ji Mining's Solton-Sary gold mine in Kyrgyzstan, Radio Free Europe/Radio Liberty reported.


* Voestalpine AG blamed a slumping auto industry and weaker demand for its steel products for a drop in fiscal first-quarter profit to €90 million, from €226 million in the prior year, while revenue for the period fell 3.8% year over year to €3.3 billion.

* The U.S. Energy Information Administration expects the coal industry to produce 687.9 million tonnes this year, up from the 684 million tonnes it forecast in July. Output in 2020 is expected to total 651 million tonnes, a 1.8% increase from the previous forecast of 639.4 million tonnes.

* Vedomosti reported that PJSC Uralkali shares climbed 17% since the start of trading Aug. 6. Investors complained to the Central Bank of Russia about the low price of a forced repurchase of Uralkali shares, Kommersant and Vedomosti reported.

* Kommersant reported that in the first half, EuroChem Group AG increased revenue by 14% to US$3 billion and EBITDA by 21% to US$819 million. The company had free cash flow of US$136 million as fertilizer sales rose in almost all segments.

* S&P Global Ratings assigned a BB+ issue-level rating and 1 recovery rating to SunCoke Energy Inc.'s new US$400 million revolving credit facility due in 2024.

* Glencore may be forced to sell coal from its Wambo open-cut mine in New South Wales, Australia, only to signatories of the Paris Agreement on climate change under a proposal by the state's independent planning commission, The Guardian reported. Glencore and joint venture partner Peabody Energy opposed the plan, the report said.

* Tata Steel Ltd. said a US$327 million sale of two units to China's HBIS Group Co. Ltd. fell through after the deal was not approved by the Hebei provincial government.

* Fortescue Metals Group Ltd. increased its exploration budget for its fiscal 2020 to A$140 million from A$96 million a year ago as it focuses on product diversification to bring growth, Mining Weekly wrote, citing CEO Elizabeth Gaines.

* The Guinean government extended the deadline to Aug. 19 for companies to request tender documents for blocks one and two of the Simandou iron ore deposit, a move the country hopes will boost competition, Reuters reported, citing Sadou Nimaga, the mine ministry's secretary-general.

* Minergy Ltd. produced first salable coal at its Masama mine in Botswana, which has been exported to South Africa and Namibia, Reuters reported, citing CEO Morné du Plessiss, who added that the mine has extracted about 39,000 tonnes since July and plans to ramp up production to 100,000 tonnes per month by 2020. Masama is Botswana's first privately owned mine and one of only two operating coal mines in the country.

* Cumberland Resources Ltd. founder Richard Gilliam said he will donate US$1 million to workers of bankrupt Blackjewel LLC who are protesting over unpaid wages, Bloomberg Law wrote.


* Lynas Corp. Ltd. said the Malaysian government indicated that a decision about renewing the operating license for the Gebeng rare earths plant is expected by the middle of this month.

* An updated scoping study for Piedmont Lithium Ltd.'s namesake lithium project in North Carolina bumped up the posttax net present value, discounted at 8%, to US$1.45 billion, with the internal rate of return lower at 34%, but with a longer 25-year mine life.

* Peru's mining council dismissed Plateau Energy Metals Inc.'s appeal to suspend a resolution of the Institute of Geology, Mining and Metallurgy, which recommended canceling the validity of 32 of the company's concessions due to late receipt of annual concession payments.

* Tronox Holdings PLC slipped into the red to a second-quarter attributable net loss of US$62 million, or 41 U.S. cents per share, from a year-ago profit of US$36 million, or 29 cents per share, on US$100 million in charges primarily related to the company's acquisition of the titanium dioxide business of The National Titanium Dioxide Co. Ltd.

* For the half ended June 30, Galaxy Resources Ltd. flagged a noncash impairment of between US$150 million and US$185 million related to an inventory review and mine development costs at the Mount Cattlin lithium project as well as deferred tax losses.

* Livent Corp. reported a 59% yearly fall in second-quarter net income to US$15.5 million, or 11 U.S. cents per share, from US$38 million, or 31 cents per share. Revenue rose 6% to US$114.0 million from US$107.9 million.

* A Sierra Leone High Court judge deferred until the end of September the hearing of a lawsuit seeking US$288 million in damages against OCTÉA Mining Ltd. and related companies for allegedly polluting water resources near the Koidu diamond mine. OCTÉA denied the accusations, the report said.


* Peru is preparing to revise its mining laws but it is unlikely to make drastic changes to mining taxes, Reuters reported, citing Finance Minister Carlos Oliva.

* The London Metal Exchange plans to double the duration of its closing open-outcry trading sessions for all metals to 10 minutes after volumes increased during a three-month trial, Reuters reported, citing a source with direct knowledge of the matter.

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The item referencing Suncoke Energy published on Aug. 7, 2019, contained erroneous information and was updated following publication.