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BSG's bankruptcy may hinder Vale's US$2B award; Hydro plunges to Q1'19 loss


Essential IR Insights Newsletter - April 2023


Masters of Risk | Episode 2: A Discussion with Ilya Khaykin


According to Market Intelligence, April 2023


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BSG's bankruptcy may hinder Vale's US$2B award; Hydro plunges to Q1'19 loss


BSG's bankruptcy may derail Vale's US$2B award over Simandou iron ore project

BSG Resources Ltd. filed for bankruptcy protection in the U.S., a move that may hinder Vale SA from collecting a US$2 billion arbitration award over fraudulent misrepresentations BSG made related to Vale's purchase of a stake in the Simandou iron ore project in Guinea, Bloomberg News reported.

Norsk Hydro plunges to Q1'19 loss on lower aluminum prices, Alunorte shutdown

Lower realized aluminum prices, higher raw material costs and the production curtailment at the Alunorte alumina refinery in Brazil caused Norsk Hydro ASA to swing to a first-quarter net loss of 124 million Norwegian kroner, from a year-ago profit of 2.08 billion kroner. Revenue for the period slipped 6% to 37.58 billion kroner.

Incoming Panama President to review First Quantum's contract for Cobre Panama copper mine

The incoming government of Panamanian President-elect Laurentino Cortizo will review First Quantum Minerals Ltd.'s mining contract for its Cobre Panama copper mine amid uncertainty over its validity, Reuters reported. The government said in 2018 that the contract remained in force, although that could change when Cortizo assumes office on July 1.


* The Democratic Republic of the Congo's state-owned miner Gécamines SA reconfirmed Albert Yuma as its chairman in a potential setback for foreign investors such as Glencore PLC, which clashed with Yuma in 2018, Financial Times reported.

* A court hearing related to Zambia's decision to appoint a provisional liquidator on Vedanta Resources Ltd.'s Konkola Copper Mines PLC was adjourned without tackling Vedanta's demands to be involved, Reuters reported. The court reserved judgment until June 11, the report said.

* Nickel Mines Ltd. shareholder Shanghai Decent Investment (Group) Co. Ltd. raised its stake to approximately 18.1% after participating in the ASX-listed explorer's A$55 million share placement. Proceeds will be used to increase its stake in Ranger nickel mine in Indonesia to 60% from 17%.

* Terramin Australia Ltd. reached a deal with Freeport-McMoRan Inc. unit Freeport-McMoRan Exploration Australia Pty. Ltd., where the latter may earn up to a 75% interest in the Wild Horse copper-gold prospect in South Australia.


* St Barbara Ltd. has offered to allow retail shareholders to withdraw from a A$490 million rights offering following its recent move to slash its fiscal 2019 gold production guidance on lower volumes at the Gwalia gold mine in Western Australia. Meanwhile, a company linked to takeover target Atlantic Gold Corp. called 1193490 B.C. Ltd. optioned the GK gold-copper property in British Columbia from Strategic Metals Ltd.

* St Barbara secured an option to acquire up to a 70% interest in the Horn Island gold project in Queensland, Australia, from Alice Queen Ltd. by sole funding expenditure of A$4 million within three years.

* Barrick Gold Corp.'s challenge to an environmental law banning mining in glacial areas in Argentina was shot down by the country's Supreme Court, Reuters reported. A source from within the company said that Barrick's current operations in Argentina will not be affected.

* Dacian Gold Ltd. shares tanked about 65% in late afternoon trading on the ASX June 5 after revising downwards its June quarter guidance at its Mount Morgans gold mine in Western Australia to between 36,000 ounces and 38,000 ounces, from between 50,000 ounces and 55,000 ounces.

* A preliminary economic assessment on Sandspring Resources Ltd.'s Toroparu gold project in Guyana has reduced preproduction capital expenditure by C$123 million to C$378 million, from C$501 million estimated in a 2013 pre-feasibility study.

* Brazil Minerals Inc. obtained the final go-ahead to proceed with gold and diamond mining on one of its mineral rights in the Jequitinhonha river valley in Brazil.

* Great Southern Mining Ltd. agreed to acquire three mining leases, covering the historical Cox's Find gold mine in Western Australia.

* Trans-Siberian Gold PLC posted a record full-year output of 42,128 ounces of gold in 2018, representing a 15% increase.

* Thor Explorations Ltd. signed a US$67.5 million engineering, procurement and construction contract with Norinco International Cooperation Ltd. for the Segilola gold project in Nigeria.

* The withdrawal of a security company assigned at a Mintails SA (Pty) Ltd.-owned gold treatment plant in South Africa opened the doors for artisanal miners and looters to steal from the facility, African News Agency reported.

* Ximen Mining Corp. agreed to acquire the historical Cariboo-Armelia gold mine in British Columbia from Huakan International Mining Inc. for 212,888 shares.

* Paramount Gold Nevada Corp. secured a conditional use permit for its proposed Grassy Mountain underground gold-silver mine in Oregon.

* Indian gold imports in May rose 49% year on year to 116 tonnes from 78 tonnes in the year-ago period on higher demand driven by the correction of local prices during an annual festival, Reuters reported.


* A federal judge dismissed an investor's claims that Rio Tinto and two of its executives violated securities law by convincing investors to purchase stock in the company without disclosing severe adverse developments at its Mozambique coal mine that significantly dropped the value of the asset.

* Anglo American PLC will broaden the scope of its studies into an expansion of a coal preparation plant, servicing the Moranbah North and Grosvenor coking coal mines in Queensland, Australia, to increase production by up to 40%, the Australian Financial Review reported, citing metallurgical coal division CEO Tyler Mitchelson.

* Nippon Steel Corp. flagged a possible earnings hit from the planned U.S. tariffs on Japanese cars and auto parts, although it expects less impact from proposed tariffs on U.S. imports from Mexico, Reuters reported, citing Katsuhiro Miyamoto, the company's executive vice president.

* British Steel Corp. Ltd. owner Greybull Capital LLP is readying a bid for the collapsed group's operations in France and the Netherlands to forge a new continental steel business, London's Financial Times reported, citing people briefed on the plan.

* Alexandra Heath, head of the Reserve Bank of Australia's Economic Analysis Department, told the Association of Mining and Exploration Companies Convention in Perth, Western Australia, that while China's steel intensity is already plateauing, India's population growth and related urbanization will drive steel demand for decades.

* Oracle Power PLC said the coal mine and minemouth power plant joint venture project Block VI in Pakistan's Thar desert will be developed in a single phase of 8 million tonnes per year, from the previous plan of 4 Mt per year over two phases.

* Ironveld PLC said a previously announced potential off-take with a specialist subsidiary of an international steel group may not materialize, following the completion of a bulk sampling and testing program for product from its high-purity iron, vanadium and titanium project in South Africa.

* TerraCom Ltd. raised approximately A$35.3 million after completing a previously announced fully underwritten nonrenounceable pro rata rights issue.

* A coalition of advocacy groups intends to sue the parent companies of 15 coal facilities and a chloride plant in West Virginia over alleged violations of federal clean water and surface mining regulations. Operators being sued include Southeastern Land LLC, Lexington Coal Co. LLC, Bluestone Coal Corp. and Consol Energy Inc.

* Arianne Phosphate Inc. signed a non-binding memorandum of understanding with Chinese state-owned enterprise SINOCONST to develop and provide financing for the Lac a Paul phosphate project in Quebec.

* Forty-five European steel firms urged the region's policymakers to strengthen import safeguard measures for the steel industry by July 1, Fastmarkets MB wrote.

* China's Iron and Steel Association expects steel demand in the second half to be weak, and said mills need to be rational when increasing production, Reuters reported.


* Bacanora Lithium PLC's feasibility study for the Zinnwald lithium project in Germany generated a posttax net present value, at an 8% discount, of €270 million, a 21.5% internal rate of return, with a 6.1-year payback period.

* Searchlight Minerals Corp. staked a 592.8-hectare claim called the Kulyk Lake rare earth project in Saskatchewan as part of a plan to focus on the province.

* Lithium Royalty Corp. invested A$8.1 million in Core Lithium Ltd., in exchange for a 2.5% royalty over production at the Finniss lithium project in Australia's Northern Territory.

* Northern Minerals Ltd. reached an agreement with the Australian Taxation Office over the repayment of A$13.4 million in R&D claims covering the period of between 2016-2017 and 2017-2018.

* Allegheny Technologies Inc. reached a definitive agreement to sell its cast products unit, which produces titanium investment castings for the aerospace industry, to Cleveland-based Consolidated Precision Products Corp.

* Argex Titanium Inc. signed a long-term strategic cooperation agreement with East China Engineering Science and Technology Co. Ltd. to develop an eco-friendly and cheaper titanium oxide production process in China and abroad.


* The U.S. Commerce Department outlined 61 recommendations to help the country secure a more reliable domestic supply of critical minerals and help reduce its reliance on foreign producers.

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