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Severstal's Q3 net profit up 53.2% YOY

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Essential Metals Mining Insights November 2021

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[Infographic]: 2021 World Exploration Trends

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Copper project pipeline — Project shortage to see supply lag demand post-2025

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Green energy revolution — Boost for industrial metals demand


Severstal's Q3 net profit up 53.2% YOY

TOP NEWS

Severstal's Q3 net profit up 53.2% YOY

PAO Severstal's third-quarter net profit rose 53.2% year over year, to US$455 million, or 56 cents per diluted share, from US$297 million, or 37 cents per diluted share, in the year-ago quarter. The steelmaker's revenue for the three months ended Sept. 30 likewise improved, to US$2.06 billion from US$1.97 billion.

Major car makers loom as key in graphite market, not Tesla

Project developers and analysts believe more established major car manufacturers will drive graphite's demand story in the future over recently scandal-prone Tesla, the market darling which initially ignited investors' interest in battery metals. Patersons Securities' resource analyst Cam Hardie told S&P Global Market Intelligence that established manufacturers will be able to mitigate the build quality issues Tesla has encountered in its electric vehicles.

Numetal declines debt settlement, drops out of Essar Steel bid

Numetal declined to proceed with the settlement of at least 490 billion Indian rupees in debt by associated companies, a requirement to be eligible to bid for Essar Steel India Ltd., narrowing the race to between ArcelorMittal and Vedanta Resources PLC, Mint reported, citing sources familiar with the matter.

BASE METALS

* Metals X Ltd. believes its experience bringing the Tasmanian Renison tin operation up to scratch and now performing well gives it confidence in doing the same with the troublesome Nifty copper project in Western Australia, whose ramp-up task has been "grossly underestimated" according to financial services firm Hartleys, albeit with rising grades. Nifty's September quarter production of 4,678 tonnes of copper in concentrate was again short of Metals X's 7,000-tonne objective at the start of the quarter and compared to Hartleys' more conservative 6,000-tonne target, though it was still better than the previous two months.

* Lead, zinc, tin and nickel futures made their trading debut on the Shanghai Futures Exchange, Reuters reported.

* Indonesia Commodity & Derivatives Exchange halted trading of tin ingots and tin ore with origin verified by PT. Surveyor Indonesia, based on "alleged criminal acts" referred to in a police report regarding the "accommodating, utilizing, processing and refining, transporting [and] selling" minerals from sources without permits, Reuters wrote.

* Minera Freeport-McMoRan South America Ltda. agreed to acquire up to an 80% stake in the Ricardo copper-gold property in Chile from Solaris Copper Inc.'s Minera Ricardo Resources Inc. S.A. unit.

* Roman Abramovich opted not to sell his holdings in PJSC Norilsk Nickel Co. on the London Stock Exchange as he is seeking a higher price, RBC wrote. Abramovich was unable to off-load his 4% interest in the company to Vladimir Potanin and Oleg Deripaska due to a ruling by a London court.

PRECIOUS METALS

* Acacia Mining PLC's net earnings in the third quarter fell 26.1% yearly to US$11.9 million, as revenue slipped 2.9% to US$165.6 million. Gold production dropped to 136,640 ounces, from 191,203 ounces, while all-in sustaining costs also decreased to US$880 per ounce from US$939 per ounce.

* Zijin Mining Group Co. Ltd. will produce about 37 tonnes of gold in 2018, at par or slightly lower than in 2017, Reuters reported, citing company Chairman Chen Jinghe. When asked about setting up a joint venture with Acacia Mining PLC, the chairman said Zijin is "paying attention" to Tanzania but "not yet negotiating."

* Imperial Metals Corp.'s third-quarter output from its British Columbia operations dropped to 16.1 million pounds of copper and 16,488 ounces of gold, as its Red Chris mine produced 31% less copper yearly and the Mount Polley mine's copper and gold production declined 34% and 22% from the prior year, respectively.

* Ausdrill Ltd. acquisition target Barminco Holdings Pty Ltd. secured two four-year contracts at Gold Fields Ltd.'s Agnew gold mine in Western Australia, extending each of its existing underground mining services and diamond drilling contracts through to 2022, collectively worth around A$335 million.

* Seven people were reportedly killed near a remote gold mine in Venezuela, in an incident that was believed to be the result of a struggle for control of informal gold mining operations between armed groups, Reuters reported, citing the families of the victims.

* Ramelius Resources Ltd. extended its all-share takeover offer to acquire Explaurum Ltd. to Nov. 23.

* Arc Exploration Ltd. agreed to sell its joint venture interest in the Trenggalek gold project in East Java, Indonesia, through the sale of its PT Indonusa Mining Services unit, for A$100,000. The deal allows the Australian explorer to focus on the Manitou gold project in Ontario.

* Scotgold Resources Ltd. decided to liquidate its French subsidiary SGZ France SAS after its planned sale to Ikigai Ltd. failed. The unit does not hold any assets except the Vendrennes exploration license in France. Scotgold's shares in London fell nearly 6% following the news.

* Dragon Mining Ltd. received approval in-principle to list its shares on the Hong Kong Stock Exchange. The explorer added that its shares will be delisted from the ASX at the close of Oct. 19 trading.

* Hunt Mining Corp. reported shipping the first gold-silver concentrate from the Ailin vein at its La Josefina property in Santa Cruz, Argentina.

BULK COMMODITIES

* A base metal acquisition is still on the table for Labrador Iron Ore Royalty Corp. as it seeks to shift strategy and diversify revenues away from being solely sourced from the IOC iron ore operations in eastern Canada, Labrador Iron Ore President and CEO William McNeil said in an interview. "We're not looking to become M&A specialists and start making big waves," he said. McNeil added that the plan was to focus on the base metal asset for the time being and remain a lean company with a staff of four.

* Coronado Global Resources Inc.'s IPO price range was narrowed to between A$4 and A$4.20 per share, The Australian Financial Review's Street Talk reported. The company was looking to raise between A$1.16 billion and A$1.39 billion at the per share price ranging between A$4 and A$4.80.

* Maanshan Iron & Steel Co. Ltd. net profit attributable to shareholders for the third quarter rose to 2.15 billion Chinese yuan, or 27.98 fen per share, nearly doubling from 1.10 billion yuan, or 14.24 fen per share, in the year-ago period.

* Charlotte, N.C.-based Nucor Corp. reported a surge in third-quarter earnings to US$676.7 million from US$254.9 million the year before. Results fell short of a September forecast from the company that had indicated an EPS range of US$2.35 to US$2.40 as the guidance did not include a US$110 million charge related to Nucor's natural gas well assets, which the company booked in its latest financial update.

* The EU, Norway and several other countries asked the World Trade Organization to form a dispute resolution panel to address import tariffs on steel and aluminum imposed by the U.S., Reuters reported.

* Tigers Realm Coal Ltd. secured the exploration and mining license for the Zvonkoye coal deposit, which is an eastern extension of the Fandyushinksoye mining license in Russia.

* Canada Coal Inc. said that Medcolcanna (BVI) Inc. terminated discussions for a proposed merger.

* Poland's Polish Mining Group will retain the Sośnica mine in Gliwice, which was part of a list of mines handed over for liquidation in a restructuring about two years ago, Puls Biznesu reported, citing Poland's Deputy Minister of Energy Grzegorz Tobiszowski.

SPECIALTY

* Galaxy Resources Ltd. produced 31,156 dry tonnes of spodumene concentrate in the third quarter, down 35% from the second quarter, primarily due to lower feed grade and weathered ore being treated from the 2SW pit at the company's Mount Cattlin lithium operation in Western Australia. Separately, Managing Director and CEO Anthony Tse said the producer is accelerating plans to develop its US$376 million Sal de Vida lithium project in Argentina, The West Australian reported.

* Wolf Minerals Ltd. was ordered to be wound up by a court, after the company's board decided to appoint administrators as it failed to secure funding for short-term working capital needs.

* Element Six, De Beers SA's synthetic diamond arm, is building a US$94 million factory in Portland, Ore., as it looks to expand its lab-grown diamond business beyond drilling and cutting, Reuters reported.

* AVZ Minerals Ltd. started working on scoping studies for scenarios of 5 million tonnes per annum and 10 mtpa at the Manono lithium project in the Democratic Republic of the Congo.

* Bacanora Lithium PLC plans to return to the London market once lithium prices stabilize, following the cancellation of a US$100 million share sale in July due to volatile market conditions, the Financial Times reported. The company is targeting a cornerstone investor to fund the development of its Sonora project in Mexico.

* Six Sigma Metals Ltd. will not exercise an option to acquire an interest in Mirrorplex Pty Ltd., which holds the Chuatsa vanadium-titanium and Shamva lithium projects in Zimbabwe.

* Sheffield Resources Ltd. said its Thunderbird mineral sands project is now construction ready after it secured all key development permits for the operation. Construction is expected to start in the first quarter of 2019.

* Mountain Province Diamonds Inc. fetched US$24.2 million by selling 366,505 carats at an average realized price of US$66 per carat in its eighth diamond sale of the year.

* Tango Mining Ltd. said Metswedi Mining (Pty) Ltd. received the first renewal for the prospecting licenses forming the Middlepits diamond project in Botswana.

INDUSTRY NEWS

* Newly released 2018 global exploration budget data from S&P Global Market Intelligence's Corporate Exploration Strategies series confirms that the industry recovery that began in late 2016 is continuing at an accelerated pace. Preliminary analysis shows that the annual aggregate global nonferrous exploration budget has increased for the second time since 2012, by almost 20% year over year to US$9.62 billion, from US$8.05 billion in 2017.

* Activist group Ecologists in Action and other organizations visited the European Parliament in Brussels to seek the closure of all active mines in Spain, saying their communities are affected by lithium, tin, lead, tungsten, uranium and copper operations, and citing alleged endangerment to nature, cities and jobs, Mining.com reported.

* Major Russian companies are exploring non-dollar deals abroad to bypass the U.S. sanctions that have obstructed access of some Russian firms to the international banking system, Reuters reported.

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