TOP NEWS
Wesfarmers drops A$1.5B takeover bid for rare earths producer Lynas
Wesfarmers Ltd. no longer intends to pursue a takeover of Lynas Corp. Ltd. In late March, the coal mining-to-retail giant introduced a nonbinding indicative proposal to acquire Lynas for A$1.5 billion in cash.
Higher costs, weak auto demand drag down Baosteel's H1'19 earnings
Baoshan Iron & Steel Co. Ltd.'s first-half net profit dropped 38.2% year over year to 6.19 billion Chinese yuan because of rising raw material prices and weaker demand from the automobile and construction sectors amid the slowing economy in China and its trade war with the U.S.
Antofagasta hikes interim dividend as H1'19 net profit surges YOY
Antofagasta PLC's net profit attributable to shareholders in the first half jumped to US$302.4 million from US$194.3 million a year ago. The company declared an interim dividend of 10.7 U.S. cents, a 57.4% increase year over year. Revenue in the half climbed 19.1% year over year to US$2.53 billion on the back of higher copper sales volumes, partially offset by lower realized prices.
DIVERSIFIED
* Fortescue Metals Group Ltd. and Woodside Petroleum Ltd. warned that those promoting anti-China sentiment may cost Australia more than A$200 billion in investment and jobs, The West Australian reported.
* Anglo American PLC tapped Goldman Sachs to assist the company with its previously announced US$1 billion share buyback, Mining Weekly reported.
BASE METALS
* Antofagasta is positive that its Twin Metals Minnesota LLC unit will secure permits to develop a US$1 billion underground copper mine near the Boundary Waters Wilderness area in Minnesota, which the U.S. government recently opened to mining, Financial Times wrote, citing CEO Ivan Arriagada.
* The Zambian government is determined to urgently secure an investor for Vedanta Resources Ltd.'s Konkola Copper Mines PLC unit once the court proceedings over its disputed liquidation are concluded, Reuters reported, citing Richard Musukwa, the country's mining minister.
* Chilean environmental regulator SMA slapped a US$1.2 million fine on Teck Resources Ltd.'s Quebrada Blanca copper mine for improper handling of mining waste and internal environmental controls, Reuters reported.
* MMG Ltd. agreed to supply Minmetals North-Europe AB with about 10,000 dry tonnes of zinc concentrate from the Dugald River mine in Queensland, Australia.
* Axiom Mining Ltd. scaled back operations at its San Jorge nickel deposit, part of its Isabel project in the Solomon Islands, after a prospecting license for Kolosori was rejected. The company said it has no date for the first shipment of ore.
PRECIOUS METALS
* While the recent rise in the price of gold has fired up the share prices of industry miners, many earlier-stage Canadian explorers have failed to benefit from the market surge, experts said, noting that they face broader investor disinterest for higher-risk equities, according to an exclusive S&P Global Market Intelligence report.
* Lydian International Ltd. is disappointed after Armenian Prime Minister Nikol Pashinyan asked the country's environmental ministry to evaluate whether it still needs another environmental impact assessment for the Amulsar gold project despite a recent audit that cleared the company of any wrongdoing.
* Torex Gold Resources Inc. hedged a total of 96,000 ounces of gold sales evenly over the next 12 months with a floor price of US$1,400 per ounce and a ceiling price ranging from US$1,666/oz in September 2019 to US$1,768/oz in August 2020.
* Gold Fields Ltd. mandated Macquarie Group's equities desk to seek bids for a 10% stake in Gold Road Resources Ltd., equivalent to some 87.1 million shares, with pricing for the bookbuild starting at A$1.45 per share, The Australian Financial Review's Street Talk reported.
* Kirkland Lake Gold Ltd. increased its stake in Bonterra Resources Inc. to 11.32% from 10.17% on a nondiluted basis through a C$5 million private placement.
* De Grey Mining Ltd. completed its A$15 million acquisition of Indee Gold Pty Ltd.
* Altus Strategies PLC signed a nonbinding term sheet with Glomin Services Ltd. for a joint venture on the former's Lakanfla and Tabakarole gold projects in western and southern Mali.
* Anglo Asian Mining PLC confirmed media speculation that it is in preliminary discussions with the government of Azerbaijan and other parties for a possible transaction with its unit R.V. Investment Group Services LLC.
* China relaxed restrictions on gold imports, with the central bank now issuing lower quotas after not granting them for several months, Reuters reported, citing bullion industry sources.
* Explor Resources Inc. agreed to merge with Pure Nickel Inc. to jointly advance the Timmins Porcupine and Neal gold projects.
* Zimbabwean crocodile and alligator skin exporter, Padenga Holdings Ltd., acquired a 50.1% stake in Dallaglio Investments, which has interests in Vast Resources PLC's Pickstone Peerless and Eureka gold mines, Independent Media reported.
BULK COMMODITIES
* Alumina Ltd. reported a drop in first-half net profit to US$210.9 million, or 7.3 cents per share, from US$286.4 million, or 9.9 cents per share, recorded a year ago due to lower prices, partially offset by lower production costs.
* Chinese government inspectors labeled China Minmetals Corp.'s steelmaking unit Minmetals Yingkou Medium Plate Co. Ltd. a "repeat offender" over environmental violations, Reuters reported. This comes shortly after the company suspended production at rare earths unit Ganxian Hongjin Rare Earth Co. Ltd. over environmental breaches.
* The Mines Tribunal in India issued a stay order on the Karnataka government's cancelation of the mining lease extension granted to National Mineral Development Corp. Ltd. for the Donimalai iron ore mine. The stay order would prohibit the state government from taking any further action regarding the mining lease or initiating an auction process for the Donimalai mine.
* Thyssenkrupp AG is filing a complaint with the General Court of the European Union to dispute the antitrust decision that blocked its planned joint venture with Tata Steel Ltd., Reuters reported.
* Separately, thyssenkrupp is in talks to acquire steel trader Kloeckner & Co. to boost its materials trading business, Reuters reported, citing local newspaper Handelsblatt. Three sources told the newswire that the two groups were regularly discussing a wide range of issues, including consolidation, but a takeover was not in the works.
* BHP Group is avoiding private equity for its planned thermal coal exit due to the issues it had to deal with during last year's shale divestment, The Australian Financial Review's Street Talk wrote, adding that Macquarie Capital is involved in exploring the company's coal divestment options.
* Exxaro Resources Ltd. reported a 104% year-over-year surge in attributable EPS to 25.89 South African rand for the first half. As a result, the company is paying an interim dividend of 8.64 rand per share, up by 3.34 rand from a year-ago, as well as a special dividend of 8.97 rand per share.
* Usinas Siderúrgicas de Minas Gerais SA is currently operating at only 42% of its flat steel rolling capacity at its Cubatao and Ipatinga facilities due to weak market conditions and global trade protectionism, Fastmarkets MB reported.
* Mechel PAO invested about 400 million Russian ruble in a new longwall at its V.I. Lenina underground coal mine in Russia. The new longwall is estimated to have industrial coking coal reserves of 560,000 tonnes.
* Australian Resources Minister Matt Canavan wants more coal mines with the same size as Adani Enterprises Ltd.'s Carmichael coal project in Queensland to meet India's growing demand for coal, The Australian reported.
* ArcelorMittal Brasil SA will continue the shutdown of blast furnace No. 2 at its Tubarão plant in Brazil until the end of the year due to tough market conditions, Fastmarkets MB reported, citing CEO Benjamin Baptista.
* Venture Minerals Ltd. decided to restart mining at its Riley iron ore mine in Tasmania, Australia, following a pre-feasibility study and after securing an off-take deal for the mine's entire output over two years.
* Aiming to further enhance its hedging tools, China's Dalian Commodity Exchange will speed up the process of launching coking coal, coke and iron ore options, Reuters wrote, citing state-backed Securities Times.
* The Qingdao Intermediate People’s Court in China is auctioning 87,100 tonnes of aluminum ingots, 63,585 tonnes of alumina and 12,368 tonnes of copper cathodes that were impounded during a government crackdown on the misuse of collateral for financing metals, Fastmarkets MB reported.
SPECIALTY
* China's Tianqi Lithium Corp. posted a first half net profit of 193.4 million Chinese yuan, slumping 85.2% from a year ago due to lower lithium prices and higher financial costs, Reuters reported, citing an exchange filing.
* Malaysian International Trade and Industry Minister Darell Leiking said Lynas will have to face "repercussions" if it does not follow the agreement for the recently granted six-month extension to operate the Gebeng rare earths processing plant, The Australian Financial Review reported. Leiking said Lynas CEO Amanda Lacaze will have to convince the government that the company will comply.
* Tibet Mineral Development Co. Ltd.'s net loss attributable to shareholders in the first half narrowed to 2.9 million Chinese yuan from 37.2 million yuan a year ago.
* Prospect Resources Ltd. signed a memorandum of understanding for the supply of power to the Arcadia lithium project in Zimbabwe from African Continental Minerals (Private) Ltd.'s Coalbed methane gas to power project.
* Botswana Diamonds PLC extended two diamond prospecting licences located in the Kalahari desert in Botswana and reported it was in extended discussions with a major diamond producer to partner on the next phase of the licences.
INDUSTRY NEWS
* Real estate prices in Australian mining towns are surging again after years of slumping prices following the end of the mining boom, ABC News wrote.
* The Guardian reported that mining and energy companies hired lobbyists to access Australia's Queensland government 214 times between 2013 and 2018, more than any other sector.
* The London Metal Exchange fined ADM Investor Services International Ltd. £210,000 for its inadequate risk management systems, Reuters reported.
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