trending Market Intelligence /marketintelligence/en/news-insights/trending/cOCtYUAmJnR1tA1enzOe_Q2 content esgSubNav
In This List

Analysts forecast increased Rio Tinto dividends, interim earnings

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Video

COVID-19 Impact & Recovery: Metals and Mining Outlook for H2 2021

Blog

Q&A: Data That Delivers - Automating the Credit Risk Workflow

Blog

Mining M&A in 2020 — Deal activity bounces back in H2 after disrupted H1


Analysts forecast increased Rio Tinto dividends, interim earnings

TOP NEWS

Deutsche Bank forecasts higher Rio Tinto dividend, interim earnings

Deutsche Bank sees Rio Tinto unveiling a dividend of 134.5 U.S. cents per share for the first six months of the year when it unveils its financial results Aug. 2, The Age wrote. UBS said in a recent report that it expects Rio Tinto to post profits for all its business units and book underlying earnings of US$4.2 billion.

Fortescue Metals to take back control of Solomon power station

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.

Mosaic swings to Q2 profit on higher sales, prices

Mosaic Co. booked attributable net earnings of US$97.3 million in the second quarter, swinging from the US$10.2 million loss posted a year ago thanks to higher sales volumes.

DIVERSIFIED

* 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

* Turquoise Hill Resources Ltd. saw its second-quarter attributable net income slide US$6.0 million year over year to US$23.8 million, or 1 cent per share, on lower copper prices and gold sales. Second-quarter revenue from the Oyu Tolgoi copper-gold mine in Mongolia declined 38.2% to US$203.7 million compared to the same quarter of 2016, largely due to lower concentrate sales and copper prices.

* The number of contract workers at Codelco fell 19.6% to 21,352 between December 2014 and June 2017 as a result of the company's intensive cost-cutting plan implemented by CEO Nelson Pizarro, daily El Mercurio reported.

PRECIOUS METALS

* Barrick Gold Corp. officially initiated talks with Tanzania to resolve an ongoing dispute between the government and the miner's 63.9%-owned Acacia Mining plc, Reuters reported.

* 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.

* Trek Mining Inc.'s feasibility study for its wholly owned Aurizona gold mine in northeastern Brazil pegged a posttax net present value, discounted at 5%, of US$197.1 million and a 34% internal rate of return at a gold price of US$1,250 per ounce. The study estimated life-of-mine gold production of about 886,000 ounces at an average gold recovery of 91%.

* Osisko Gold Royalties Ltd. completed the acquisition of a high-quality precious metals portfolio of assets from Orion Mine Finance Group in exchange for C$675 million cash and 30,906,594 shares. The company also completed a private placement totaling C$275 million.

* Ascot Resources Ltd. entered a definitive agreement with Boliden AB to acquire the Premier gold mine in British Columbia, including all related mineral rights, land, permits, licenses and other assets.

* Gran Colombia Gold Corp. said it is continuing to negotiate in good faith with the Mesa Minera mining collective of Segovia and Remedios toward formalizing activities of illegal mines operating within its mining title, despite certain illegal miners disrupting the company's operations.

* Renaissance Gold Inc. subsidiary Kinetic Gold (US) Inc. granted S2 Resources Ltd. an option to acquire a 70% interest in the company's South Roberts, Pluto and Ecru gold projects in Nevada.

* NSX Silver Inc. entered a letter of intent with Village View Ltd. Partnership No.1 to acquire property in New Brunswick for C$4.9 million. The company will exit mining and become the owner of a multiunit residential real estate.

* Skeena Resources Ltd. exercised an option to fully acquire the past-producing Snip gold property in British Columbia from Barrick Gold Corp.

* 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.

* Gold output from China in the first half fell 9.85% year over year to 206.54 tons, China Daily reported.

* Strategic Metals Ltd. agreed to sell six precious metals projects in the Tombstone Gold Belt of central Yukon Territory, Canada, to privately held Territory Metals Corp. The projects, comprising Mount Hinton, Plata, Lance/Lois, News, Naws and Nels, are collectively referred to as the Tombstone projects.

BULK COMMODITIES

* Outokumpu Oyj divested its pipe plant in Wildwood, Fla., to Ta Chen Stainless Pipe Ltd. unit Ta Chen International Inc. for about €25 million and will now focus on its stainless steel production in Calvert, Ala. and Richburg, S.C.

* Vale SA's press office denied claims made July 30 by daily O Globo columnist Lauro Jardim, who wrote that BHP Billiton Group will sell its joint venture stake in Samarco Mineração SA to the Brazilian steelmaker. According to Jardim, the sale would be made official in the next six months, daily Gazeta Online reported. Reuters wrote that BHP Billiton also denied agreeing to sell its stakes in the Samarco iron ore mine to Vale.

* Kommersant reported that Evraz Plc may return to paying regular dividends for the first time since 2012 on the back of strong operating results, debt reduction and the sale of Evraz NMTP, according to analysts of BCS and Sberbank. The analysts expect that the payments will range from US$300 million to US$400 million.

* 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.

* For the second consecutive week, Glencore Plc locked out about 190 miners who had been supporting the industrial action at its Queensland, Australia-based Oaky Creek coal operation, The Australian Financial Review reported. The mine is being operated by contractors as the company and the Construction, Forestry, Mining and Energy Union try to resolve the workplace dispute.

* PJSC Acron's net profit fell 61% year over year to 4.08 billion Russian rubles in the first half, while revenue rose 4% to 26.20 billion rubles.

* U.S. Steel Corp. plans to offer US$750 million aggregate principal amount of senior notes due 2025.

* China's Shandong Xinfa Group removed 530,500 tonnes per annum of aluminum capacity, Metal Bulletin reported, citing the local Chiping county government.

* Ukraine's Centrenergo signed an agreement with U.S.-based Xcoal Energy & Resources for the shipment of 700,000 tonnes of energy coal by the end of 2017, Vedomosti reported.

* The Indonesian government is struggling to cap the country's coal production at 400 million tonnes in 2019 as envisaged in its medium-term plan, Bisnis Indonesia reported. In 2016, coal production reached 434 million tonnes, and this year it is expected to rise to 477 million tonnes.

SPECIALTY

* S&P Global Ratings placed its B+ long-term corporate credit rating on Areva SA on CreditWatch with negative implications, reflecting heightened risk of significant litigation payments after the International Chamber of Commerce Tribunal's recent unfavorable ruling over AREVA's ongoing legal dispute with Finnish electricity utility Teollisuuden Voima Oyj. Meanwhile, the rating agency raised its long-term corporate credit rating on New Co., a former AREVA subsidiary, to BB from B+, with a positive outlook. The upgrade is mainly due to the recent €2.5 billion capital increase from the French state, significantly improving the company's liquidity position and capital structure.

* 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.

* Karelian Diamond Resources Plc's preliminary economic assessment at its Lahtojoki diamondiferous kimberlite pipe in Finland estimated that 2.11 million carats are recoverable, giving a gross value of US$211 million. The study pegged a net present value, discounted at 8%, of US$39.1 million, a 55% internal rate of return and a nine-year mine life.

* Alba Mineral Resources Plc was granted an exclusive mineral exploration license over a significant portion of the coastline, prospective for heavy mineral sands, in the Thule black sand province in northwestern Greenland.

* The Bolivian government will invest at least US$1.5 billion in strengthening the operations of state miners Colquiri, Huanuni, Vinto and Karachipampa and in developing lithium deposits in the Uyuni salt flat in the Potosí region, daily La Razón reported, citing Mining Minister César Navarro.

* 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. produced from the former's Yangibana project in Western Australia.

* An independent preliminary economic assessment for the Arrow uranium deposit of NexGen Energy Ltd.'s Rook 1 project in Saskatchewan outlined an after-tax net present value of C$3.49 billion, an internal rate of return of 56.7% and a mine life of 14.4 years.

INDUSTRY NEWS

* South Africa's Chamber of Commerce said deteriorating regulatory and operating conditions, including decreased productivity and inappropriate work stoppages, are threatening up to 100,000 direct jobs and 200,000 indirect jobs in the country's mining industry, Miningmx reported. Meanwhile, Reuters reported that the National Union of Mineworkers called on the South African government to remove Mineral Resources Minister Mosebenzi Zwane from office as the minister's plan to freeze new mining rights puts employment in the sector at risk.

* Meanwhile, the National Union of Mineworkers is preparing for a fight against mining companies and the South African government and plans to oppose all future retrenchments amid increasing job cuts and growing rifts between management and workers at the country's mines, fin24 reported.

* 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. ET and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.