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Glencore posts massive swing to profit in H1 on higher commodity prices

TOP NEWS

Glencore posts massive swing to profit in H1 on higher commodity prices

Glencore Plc swung to a net income attributable to equity holders in the first half of US$2.45 billion, from a US$369 million loss in the comparable year-ago period, due to rising prices in key commodities. Revenues rose to US$100.29 billion, from US$69.43 billion in the year-ago half. The company raised its full-year guidance for its marketing earnings by US$100 million to between US$2.4 billion and US$2.7 billion.

Adani taps funding adviser for Australian coal project

Adani Enterprises Ltd. hired Grant Samuel to advise on financing for its giant Carmichael coal project Queensland, Australia, two sources with knowledge of the matter told Reuters. Many large banks have declined to fund the project, and it has faced legal and environmental challenges.

Nyrstar restarting operations at British Columbia copper-zinc mine

Nyrstar NV is resuming operations at its Myra Falls copper-zinc-lead mine in British Columbia after signing a new contract with Unifor, Local 3019, which represents the mine's workers, Mining.com reported. The mine has been on care and maintenance since October 2015.

DIVERSIFIED

* Africa-focused mineral explorer Altus Strategies is planning to raise up to £1 million through a listing on the London Stock Exchange's AIM, CEO Steven Poulton told Reuters. The proceeds will be used to explore in Cameroon, Ethiopia, Ivory Coast, Morocco and Liberia. The executive described the company as "a counter-cyclical mining project generator" exploring for gold, bauxite, copper, iron ore, zinc and silver.

BASE METALS

* Vale SA unit PT Vale Indonesia Tbk. said the recent policy change in Indonesia to allow ore exports is helping to keep global nickel prices low but is complicating efforts to create or maintain partnerships for smelter investments, Reuters reported. Vale Indonesia CEO Nico Kanter said partners have told the company they were pulling the plug or delaying decisions amid pricing and regulatory uncertainties.

* Chinese lead and zinc producers near Jiuzhaigou in the north of China's Sichuan province, where a magnitude 7.0 earthquake occurred the night of Aug. 8, had to evacuate employees due to safety concerns, Shanghai Nonferrous Metals reported, citing unnamed sources. The impact on production is unclear. The earthquake left nine confirmed dead and 164 injured as of Aug. 9, according to a separate Xinhua News Agency report.

* Santiago Chamber of Commerce's arbitration and mediation center ruled in favor of Codelco on a dispute with Minera Escondida Ltda. over copper concentrates valued at more than US$80 million that were stolen from 2011 to 2014 by a transport company that drove trucks from Codelco's El Salvador project to Escondida, El Mercurio reported. As a result, the BHP Billiton Group subsidiary must return 136 trucks of copper concentrate on top of other compensations.

* PT Merdeka Copper Gold Tbk., which spent the last 18 months bringing the Tujuh Bukit copper project in Indonesia into production, would be interested in a secondary listing, most likely in Australia, as it moves to fund a second phase of the project within the next few years, The Australian Financial Review wrote.

* Zeta Resources Ltd.'s Zeta Energy Pte. Ltd. unit intends to acquire up to 43.19% of New Zealand Oil & Gas Ltd.'s shares it does not own at 72 Australian cents per share in a partial takeover. The company holds approximately 17.5% of the target.

* Altair Resources Inc. struck a deal with Atlas Precious Metals Inc for the acquisition of a solvent extraction plant, which was initially offered to the miner in April when it acquired the Pan American zinc mine and Caselton mill in Nevada.

PRECIOUS METALS

* Primero Mining Corp. is selling its stake in the Black Fox mine and associated assets located near Timmins, Ontario, to McEwen Mining Inc. for US$35 million in cash, subject to certain closing adjustments. Primero expects to use the proceeds to reduce debt.

* Primero Mining produced 35,965 gold equivalent ounces in the second quarter, down from 49,499 gold equivalent ounces produced in the same period a year ago. The company's operating performance was impacted by labor disruptions due to a monthlong strike action at its Mexico-based San Dimas mine during the quarter.

* IAMGOLD Corp. swung to net earnings of US$506.5 million in the second quarter from a US$12.2 million net loss posted a year ago, driven by impairment charge reversals at its Cote project in Ontario and Rosebel mine in Suriname. Attributable gold production was up 13% year over year to 223,000 ounces.

* Torex Gold Resources Inc. expects to be at the lower end of its annual gold production guidance and at the higher end for the costs per ounce guidance. The company produced 74,487 ounces of gold in the second quarter as ramp-up continues at its El Limon-Guajes mine in Mexico.

* Pan American Silver Corp. produced 6.30 million ounces of silver and 37,700 ounces of gold in the second quarter, compared to 6.33 million ounces of silver and 48,400 ounces of gold in the year-ago quarter. Net earnings in the period rose to US$36.0 million from US$34.2 million, while revenue was up 5% at US$201.3 million.

* Royal Gold Inc.'s fourth-quarter attributable net income was nearly flat on a yearly basis at US$20 million, while revenue in the period climbed to US$108.9 million from US$94.1 million a year ago.

* B2Gold Corp. swung to a net income of US$19.3 million, from a net loss of US$11.8 million in the year-ago quarter. The miner lowered its full-year consolidated production guidance by 4% to between 530,000 and 570,000 ounces of gold.

* SSR Mining Inc.'s second-quarter net income jumped 202% year over year to US$37.7 million due to the life-of-mine extension of the Pirquitas plant that resulted in the reversal of an impairment of US$24.4 million.

* Newmont Mining Corp. is considering raising its dividend to attract a broader shareholder base, which will also make the miner stand out as the gold sector is still recovering and pursuing mine expansions to replace depleting reserves, Reuters reported.

* Utah is requesting the U.S. Environmental Protection Agency to pay US$1.9 billion in damages to account for the cleanup costs and long-term maintenance of the San Juan River, which was contaminated by the 2015 Gold King mine spill, and Lake Powell, where most of the sludge was deposited, among other areas affected by the accident, Mining.com reported

* KEFI Minerals Plc reduced the funding requirement for the Tulu Kapi gold project to US$24 million, based on refinements to planned capital expenditure and contingency provisions.

* Colibri Resource Corp. completed the acquisition of Canadian Gold Resources Ltd., which indirectly owns the Pilar and Sun gold projects in Mexico through Minera Bestep SA de CV, in an all-stock deal valuing the target at C$4 million. In a same-day statement, Colibri said John Schiavi acquired 29.19% of the company at 16.5 Canadian cents per share.

* Endeavour Mining Corp. agreed to sell its 90% stake in the Nzema gold mine in Ghana to BCM International Ltd. for total cash consideration of up to US$65 million, calling the operation a noncore property.

* Jubilee Platinum Plc shares rose by over 11% in early morning trade Aug. 9, after the company announced that it executed a US$50 million project funding agreement to support its metals recovery business.

* Galane Gold Ltd. terminated a letter of intent to acquire all the outstanding shares of Vantage Goldfields Ltd.

* American Creek Resources Ltd.'s joint venture partner, Tudor Gold Corp., discovered a new gold zone at the Treaty Creek gold project in British Columbia.

BULK COMMODITIES

* Nippon Steel & Sumitomo Metal Corp. expects Chinese steel prices to remain higher through the rest of 2017 on the back of increased demand from the local construction sector, Reuters wrote, citing Toshiharu Sakae, executive vice president at the company.

* Evraz Plc's net profit in the first half of 2017 rose to US$86 million, or 4 U.S. cents per share, from US$7 million in the year-ago period, due to strong coal and steel prices, as well as cost cutting. Profit from operations increased 149.5% year over year to US$831 million, while consolidated revenue went up 44.1% to US$5.11 billion.

* Agrium Inc.'s second-quarter net income dropped to US$558 million from US$565 million in the year-ago period due to weaker nitrogen and phosphate benchmark prices, which were partially offset by stronger retail earnings, strong potash results and lower fixed costs across its wholesale business.

* Brazilian steelmaker Gerdau SA's second-quarter net income fell 5.1% year over year to 75 million Brazilian reais. The company's crude steel production was down 5% on a yearly basis to 4.09 million tonnes, while shipments fell by 12.6% to approximately 3.71 million tonnes.

* China Coal Energy Co. Ltd. secured approval from Chinese authorities to raise up to 10 billion Chinese yuan by issuing medium-term notes in the domestic market within two years.

* OAO Metalloinvest partially repaid a US$100 million debt ahead of the scheduled maturity date.

* Meanwhile, Metalloinvest signed a long-term agreement to supply about 1.6 million tonnes of iron ore and pellets to Mechel PAO's Chelyabinsk Metallurgical Plant by June 30, 2018. The pricing will be determined by a formula based on market indicators for iron ore prices in both global and domestic markets.

* Vale concluded the sale of two very large ore carriers of 400,000 tonnes to Bank of Communications Finance Leasing Co. Ltd. for approximately US$178 million. The mining major is also negotiating the sale of its remaining two vessels.

* Verdant Minerals Ltd. entered an agreement with Australian water technology company Aqua Guardian Group Ltd. to earn up to a 40% interest in the Karinga Lakes sulfate of potash project in Australia's Northern Territory, valued at A$3 million.

SPECIALTY

* The Washington Cos. hired Patrick Evans to lead Dominion Diamond Corp. as CEO after closing the US$1.2 billion acquisition of the diamond miner, Bloomberg News reported, citing an emailed statement.

* Platina Resources Ltd. said the higher-grade scandium resource at its Owendale scandium-cobalt project in New South Wales, Australia, increased by 127% in an updated estimate, while the lower-grade resource increased 21%.

* Mountain Province Diamonds Inc. sold 215,000 carats for a total of C$27.6 million in the second quarter. The company swung to net income of C$7.6 million in the second quarter from a net loss of C$352,000 a year ago.

* Northern Minerals Ltd. said the rise in dysprosium oxide prices, from 1,250 Chinese yuan per kilogram to 1,500 yuan per kilogram, is attributable to the Chinese government's crackdown on illegal mining, which is hampering supply of the commodity.

INDUSTRY NEWS

* Fitch Ratings expects that Chinese bankruptcies will continue to rise sharply over the next few years amid tightening credit conditions and local authorities becoming more willing to tolerate zombie state-owned enterprises going under. However, market forces have only a limited impact on the state-owned sector, which is "responsible for the most significant corporate inefficiencies and account for the bulk of overcapacity."

* Argentine statistics institute Indec is conducting a nationwide mining census for the next 90 days, beginning Aug. 7, to record data on all mining projects present in the country, Cronista reported.

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.