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Sibanye flags possible US$1.3B equity issue for Stillwater takeover


Essential IR Insights Newsletter - April 2023


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According to Market Intelligence, April 2023


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Sibanye flags possible US$1.3B equity issue for Stillwater takeover


Sibanye flags possible US$1.3B equity issue for Stillwater takeover

Sibanye Gold Ltd. flagged a possible equity raising of up to US$1.3 billion to partially fund its US$2.2 billion acquisition of Stillwater Mining Co., Reuters wrote. Sibanye reconsidered its initial plan to raise about US$750 million through a rights issue after certain shareholders expressed concerns over the company's debt levels.

Gold Fields expects to swing to 2016 profit

Gold Fields Ltd. expects its 2016 EPS to come in between 18 U.S. cents and 21 cents, compared to the 31 cent loss per share posted in the preceding year, primarily due to the increase in U.S.-dollar gold price and lower operating costs in local currencies.

Kumba Iron Ore shares fall over 2.5B rand tax settlement deal

Kumba Iron Ore Ltd. agreed to pay 2.5 billion South African rand within the first quarter of the year to settle a tax dispute with the South African Revenue Service that relates to the miner's tax assessments for the period 2006 to 2010 and the tax treatment for certain issues from 2011 to 2015. Mining Weekly said the deal weighed Kumba's share price down by 6% on Feb. 3.


* Vale SA should pay shareholders dividends of at least 25% of the net income recorded in 2016, Investor Relations Director André Figueiredo said at an event in Rio de Janeiro, Brazil, Reuters reported.


* Union workers of BHP Billiton Group's Escondida copper mine in Chile threatened to strike longer than in 2006, when the halt lasted 25 days. If the strikes are similar, it would affect daily production by 3,500 tonnes of copper, equivalent to losses of US$3 million per day, daily Diario Financiero reported.

* Separately, BHP Billiton requested the mediation services of the labor authority to extend the time for negotiations with the workers union at the Escondida mine by five days, Metal Bulletin reported, citing the Union No 1.

* The Democratic Republic of the Congo's copper output fell by 5% to 986,582 tonnes in 2016 on the back of production cuts and low prices, Reuters reported, citing data from the country's central bank.

* TVI Pacific Inc. said the Agata nickel mine in the Philippines is among the projects that passed the government's mining audit and will be allowed to continue operations.


* A report from the World Gold Council showed that gold demand rose by 2% in 2016 to 4,309 tonnes, the highest level since 2013, driven by the Brexit vote and the election of Donald Trump as the new president of the U.S., The Guardian wrote.

* Pretium Resources Inc. accelerated the commissioning schedule and increased the estimated capital cost needed to complete the construction of its Brucejack gold project in British Columbia by 16% to US$811.1 million. The project's dry commissioning is now scheduled to start in March, with wet commissioning to follow in early April.

* Randgold Resources Ltd. expects its Tongon gold mine in Ivory Coast to meet its revised 2016 production guidance of 260,000 ounces and estimated that the mine will produce 285,000 ounces in 2017 and about 290,000 ounces per annum for the three years thereafter.

* AngloGold Ashanti Ltd.'s headline earnings for the year that ended Dec. 31, 2016, are expected to be between US$104 million and US$118 million, representing an increase of 242% to 262% on a yearly basis. Meanwhile, headline EPS is expected to increase 239% to 256% year over year to between 25 and 28 cents.

* Wallbridge Mining Co. Ltd.'s pre-feasibility study for its Fenelon gold mine in Quebec pegged a pretax net cash flow of C$6.62 million, a pretax net present value, discounted at 5%, of C$5.84 million, and a pretax internal rate of return of 92% for the initial mine life of about 18 months for the known reserves located above 100 meters depth and in close proximity to the existing ramp.

* Regulus Resources Inc. and Compañía Minera Coimolache SA signed a contract to perform exploration works at the AntaKori gold-copper deposit in the Cajamarca region, news mining page Portal Minero reported.

* Belo Sun Mining Corp. secured a construction license from the Brazilian state government of Para, under the environmental authority SEMAS, for the company's Volta Grande gold project.

* Metallum Resources Inc. received final approval from the TSX Venture Exchange to change its business from a mining issuer to an investment issuer. The company will now focus on strategic investments in private and public company securities.

* DRDGold Ltd.'s measured mineral resources increased 52.6%, while mineral reserves increased 66.6%, compared to the June 30, 2016, estimate. The revised estimates have resulted in a five-year extension to the operating life of the Ergo gold deposit in South Africa.

* Following a cost review, RNI NL managed to reduce overheads from A$678,000 from the six months that ended Dec. 31, 2016, to a forecast of A$340,000 for the first half of 2017. The company cut the number of directors from four to three and reduced director fees.

* Richmont Mines Inc. expects consolidated gold production to increase by up to 15% year over year in 2017, to between 110,000 and 120,000 ounces, driven by a strong performance from its Island gold mine in Ontario.

* Genesis Metals Corp. entered into a binding agreement to acquire a 100% undivided interest in the Hygrade property in Quebec from Les Ressources Tectonic Inc. The property comprises nine contiguous claims covering 254 hectares and is within the boundaries of Genesis' Chevrier gold project.

* A South African court ruled in favor of Ivanhoe Mines Ltd. subsidiary Ivanplats Pty. Ltd., paving the way for the company to proceed with the relocation of informal graves near its Platreef platinum project in the Limpopo province.


* A fire broke out at Potash Corp. of Saskatchewan Inc.'s Rocanville mine in Saskatchewan on Feb. 1, forcing 87 workers to take shelter in stations located throughout the mine, The Canadian Press reported. A company spokesman said no one was injured and normal mining operations have resumed.

* The U.S. Commerce Department issued a final determination that Chinese stainless steel sheet and strip products were being subsidized and dumped in the U.S. market at below fair value, and affirmed antidumping duties ranging from 63.86% to 76.64% on the imports, Reuters reported. The U.S. International Trade Commission is scheduled to make its final determination on the matter on or around March 20.

* TerraCom Resources Ltd. moved a step closer to reopening the Blair Athol coal mine in Queensland, Australia, after the state government indicated that it would support the transfer of the mine's ownership, The Courier-Mail reported. A TerraCom unit signed the deal to buy the mine, which was managed by Rio Tinto, for only A$1 in July 2016, but the deal still awaits final regulatory approval.

* Altius Minerals Corp. will record a noncash impairment charge of C$70 million to C$75 million on the carrying value of its 53% interest in the Genesee Royalty Ltd. Partnership for the fiscal quarter that ended Jan. 31. The adjustment will bring the Genesee royalty book value closer to the valuation estimates already in use by the financial analysts that cover Altius, the company said.

* United Co. RUSAL Plc completed the debut offering of US$600 million of eurobonds with a five-year term and a coupon rate of 5.125% per annum. The proceeds will be used to refinance some of RUSAL's existing pre-export finance facility and improve its debt maturity profile, the company said.

* JSW Steel Ltd. swung to a consolidated net profit of 7.30 billion Indian rupees for the third quarter of its fiscal 2017, from a net loss of 7.09 billion rupees posted in the year-ago period.

* Kommersant reported that Alexey Mordashov's PAO Severstal faces possible tax claims of about US$400 million associated with the tax on dividends, paid through the Cypriot company to the British Virgin Islands (BVI) companies in the 2009-2015 period.

* Danish company DONG Energy has decided to phase out the use of coal as fuel at its power stations by 2023 in a move toward changing to a sustainable energy system and creating a green energy company. "The future belongs to renewable energy sources, and therefore we're now converting the last of our coal-fired power stations to sustainable biomass," CEO Henrik Poulsen said.

* For the first time in more than 40 years, India will allow private mining companies to mine and sell coal, with 23 mines to be auctioned during the year, Bloomberg News reported, citing Susheel Kumar, the country's coal secretary. India's Ministry of Coal will auction four mines to both state-run and private companies beginning April 1, with an additional 19 mines to be offered later in the year.

* Chile commenced an anti-dumping probe into imports of steel grinding rods from China, Metal Bulletin wrote, citing Chile's anti-distortions commission. The probe was launched Jan. 31.


* Chilean business conglomerate Grupo Errázuriz formed a joint venture with Taiwan-based Simbalik Group to develop a US$250 million lithium project, which is expected to produce 20,000 tonnes of lithium carbonate per year in the Maricunga salt flat, daily Pulso reported.

* Toyota Tsusho Corp.'s net profit attributable to owners of the parent for the nine months that ended Dec. 31, 2016, jumped 81.2% year over year to ¥63.52 billion, or ¥180.52 per share. Consolidated net sales for the period dipped 7.2% year over year to ¥5.810 trillion, mainly due to yen appreciation.


* Artemio Disini, chairman of the Chamber of Mines of the Philippines, said the government's planned closure of 23 mines in the country and the suspension of five others will affect 1.2 million people, including mine workers' family members, Reuters reported.

* The December quarter saw another surge in global drilling activity, following a jump in the September quarter, with the number of distinct projects reporting drill results rising to its highest level since the June 2013 quarter. Overall, 450 distinct projects reported drilling assays, up from 367 in the September quarter and from 350 in the year-ago period.

* The U.S. Senate, by a vote of 54-45, approved a resolution to overturn a rule intended to cut water pollution from coal mining waste, Reuters reported. In a 52-to-47 vote, the Senate also approved a resolution that scraps the U.S. securities regulation requiring big oil, gas and mining companies to publicly disclose taxes and other fees paid to governments, Reuters reported. U.S. President Donald Trump is expected to sign the resolution shortly.

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.