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Glencore posts massive swing to profit in H1 on higher commodity prices

TOP NEWS

Glencore posts massive swing to profit in H1 on higher commodity prices

Glencore Plc swung to a net income attributable to equity holders in the first half of US$2.45 billion, from a US$369 million loss in the comparable year-ago period, as prices of key commodities improved. Revenues surged to US$100.29 billion, from US$69.43 billion despite lower overall production in the half. The company lifted the full-year marketing earnings guidance range by US$100 million, to between US$2.4 billion and US$2.7 billion.

Queensland warns Glencore, Anglo over possible environmental breaches at 4 coal mines

Queensland Mines Minister Anthony Lynham warned Glencore and Anglo American Plc that they could face prosecution or suspension of operations for failing to properly monitor dust levels at four underground coal mines, the Australian Associated Press reported. Monitoring failures at Glencore's Oaky North and Oaky No. 1 mines and Anglo's Moranbah North and Grosvenor mines occurred in the second quarter of the year, Lynham noted.

Wheaton Precious Q2 revenue down 6% YOY on lower silver sales

Wheaton Precious Metals Corp.'s second-quarter attributable silver output fell 5% to 7.2 million ounces, while gold output rose 10% to 78,100 ounces of gold. Revenue in the period fell 6% to US$200 million due to an 11% decrease in the number of silver ounces sold, partially offset by a 2% increase in gold ounce sales.

DIVERSIFIED

* Melbourne, Australia-based BHP Billiton Group had the third-largest reserves replacement growth from 2007 to 2016 at 23 million tonnes, leveraging its long-life, "tier 1" operations to maintain overall reserves in a cost-effective manner.

* Glencore CEO Ivan Glasenberg said the company is always looking for potential acquisition opportunities, The Australian wrote. "If opportunities come, like the Hunter Valley assets came and they were available, then we look to buy them," he added.

* Altus Strategies plc raised about £1.1 million before expenses through the placement of 11.1 million new ordinary shares of 1 pence each with existing and new institutional and sophisticated investors, at 10 pence per ordinary share. The company's backers included JOGMEC and Sprott Global Resource Investments, which will hold about 16% of the Altus following the IPO, Reuters wrote.

BASE METALS

* Trevali Mining Corp.'s second-quarter consolidated zinc production totaled 29.9 million pounds, lead output reached 9.9 million pounds, while silver output totaled 385,505 ounces, up from zinc output of 15.16 million pounds, 5.58 million pounds of lead and 222,121 ounces of silver in the year ago period. Revenue in the period rose 110% year over year to US$47 million.

* Zeta Resources Ltd.'s Zeta Energy Pte Ltd unit plans to make a partial takeover offer to acquire at least 41.955% of all the shares of New Zealand Oil & Gas Ltd., or NZO, for 72 Australian cents per common share. The company is the largest shareholder of NZO, with a 17.5% stake.

PRECIOUS METALS

* Cia. de Minas Buenaventura SAA CEO Victor Gobitz said the company does not have any plans to restart its US$5 billion Conga gold project in Peru anytime soon, Reuters wrote. Operations at Conga were halted following local protests over land rights and environmental concerns in 2011, while the dip in the gold prices led the miner to decide that the site was not viable.

* Economic shifts and larger mines have led to lower capital intensities for new primary gold mines in recent years — a trend that is expected to continue through 2017-2018, based on mines currently in development.

* Hinterland Metals Inc. staked 102 mineral claim units, covering 5,750 hectares in two blocks, dubbed Skyfall, within the Urban-Barry Greenstone Belt in Quebec.

* Primero Mining Corp. plans to sell its interest in the Black Fox mine and associated assets located near Timmins, Ontario, to McEwen Mining Inc. The companies expect to sign a definitive agreement before the end of this month, with the transaction set to close in the third quarter.

* Primero Mining produced 35,965 gold equivalent ounces in the second quarter, down from 49,499 gold equivalent ounces produced in the same period a year ago. The company's operating performance was impacted by labor disruptions due to a monthlong strike action at its Mexico-based San Dimas mine during the quarter.

* Torex Gold Resources Inc. expects to be at the lower end of its annual gold production guidance and at the higher end for the costs per ounce guidance. The company produced 74,487 ounces of gold in the second quarter as ramp-up continues at its El Limon-Guajes mine in Mexico.

* B2Gold Corp. swung to a net income of US$19.3 million, from a net loss of US$11.8 million in the year-ago quarter. The miner lowered its full-year consolidated production guidance by 4% to between 530,000 ounces and 570,000 ounces of gold.

* Wheaton Precious Metals Corp. entered into a nonbinding agreement with Desert Star Resources Ltd. to acquire up to 100% of the payable silver production and up to 100% of the payable gold production from the latter's Kutcho project in British Columbia for US$65 million.

* KEFI Minerals Plc reduced the remaining funding requirement for the Tulu Kapi gold project to US$24 million, based on refinements to planned capital expenditure and contingency provisions.

BULK COMMODITIES

* Troubled commodities trader Noble Group Ltd. posted a net loss of US$1.88 billion for the first half, widening from a US$14.5 million loss posted a year ago.

* Indian state-owned company National Aluminium Co. Ltd. produced 1.9 million tonnes of bauxite, 526,000 tonnes of alumina hydrate and 100,695 tonnes of aluminum during the period, representing year-over-year increases of 10.4%, 0.4% and 6.6%, respectively.

* Moody's placed Yanzhou Coal Mining Co. Ltd.'s B2 corporate family rating and senior unsecured rating under review for potential upgrade as a result of Yanzhou Coal's 78%-owned subsidiary Yancoal Australia Ltd.'s plans to raise US$2.5 billion in equity to fund the acquisition of Coal & Allied Industries Ltd. from Rio Tinto.

* ThyssenKrupp AG CFO Guido Kerkhoff said the German steelmaker will not be rushed into any deal with Tata Steel Ltd. for a merger of their European steel businesses, Reuters reported. Kerkhoff declined to comment on whether the group is targeting a deal before its fiscal year ends next month. Thyssenkrupp, meanwhile, would not oppose an IPO of a steel joint venture that could emerge from ongoing talks with Tata, Kerkhoff added.

* Adani Enterprises Ltd. hired Grant Samuel to advise on financing for its developing Carmichael coal operation in Queensland, Australia, Reuters reported, citing two unnamed sources.

* PT Bukit Asam (Persero) Tbk. is looking to purchase new mines to raise its coal production, which currently stands at 3.33 billion tonnes per annum, The Jakarta Post reported.

* China Vanadium Titano-Magnetite Mining Co. Ltd. expects to narrow its first-half net loss to not more than 120 million Chinese yuan, compared to a year-ago net loss of around 217.5 million yuan.

* Pacific American Coal Ltd. will focus on the exploration and development of its 100%-owned assets, particularly its Elko coking coal project in British Columbia, following a strategic review of its portfolio.

* Verdant Minerals Ltd entered an agreement enabling Australian water technology company Aqua Guardian Group Ltd. to earn up to a 40% interest in the Karinga Lakes sulfate of potash project in Australia's Northern Territory by spending A$3 million on the project.

* Nippon Steel & Sumitomo Metal Corp. expects Chinese steel prices to remain higher through the rest of 2017 on the back of increased demand from the local construction sector, Reuters wrote, citing Toshiharu Sakae, executive vice president at the company.

* Evraz Plc's net profit in the first half of 2017 rose to US$86 million, from US$7 million in the year-ago period, due to strong coal and steel prices, as well as cost cutting. Profit from operations increased 149.5% year over year to US$831 million, while consolidated revenue went up 44.1% to US$5.11 billion.

* China Coal Energy Co. Ltd. secured approval from Chinese authorities to raise up to 10 billion Chinese yuan by issuing medium-term notes in the domestic market within two years.

* OAO Metalloinvest signed a long-term agreement to supply about 1.6 million tonnes of iron ore and pellets to Mechel PAO's Chelyabinsk Metallurgical Plant by June 30, 2018. The pricing will be determined by a formula based on market indicators for iron ore prices in both global and domestic markets.

SPECIALTY

* The Washington Companies tapped Patrick Evans to take up CEO role at Dominion Diamond Corp., Bloomberg News reported, citing an email from The Washington Companies President Lawrence Simkins.

* Northern Minerals Ltd. said the rise in dysprosium oxide prices, from 1,250 Chinese yuan per kilogram to 1,500 yuan per kilogram, is attributable to the Chinese government's crackdown on illegal mining, which is hampering supply of the commodity.

* China's vanadium output is expected to fall 35% in August as producers in Sichuan province have been ordered to curb production over the summer, Metal Bulletin 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.