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In This List

Vale's Q3'19 profit, revenue climb; Glencore's Q3'19 copper output down 4%

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

Essential Metals & Mining Insights - September 2020

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020


Vale's Q3'19 profit, revenue climb; Glencore's Q3'19 copper output down 4%

TOP NEWS

Vale's Q3'19 net income improves YOY; 3 tailings dams de-characterized by 2022

Vale SA's third-quarter net profit climbed to US$1.65 billion, from year-ago earnings of US$1.41 billion. Net operating revenue for the Brazilian company rose to US$10.22 billion from US$9.54 billion, while cost of goods sold slid to US$5.68 billion, from US$5.76 billion. Meanwhile, Vale will de-characterize nine upstream dams, at a budget of US$25 million for 2019, in a bid to improve its safety standards in dam management.

Glencore's Q3'19 output for copper down 4%, cobalt up 11%

Glencore PLC's own-sourced copper production in the third quarter slipped 4% to 352,800 tonnes, while cobalt production was up 11% to 13,100 tonnes. The figures include the Swiss trader's Katanga Mining Ltd.'s unit output of 59,424 tonnes of copper cathode and 4,763 tonnes of cobalt in hydroxide in the third quarter, rising from the year-ago output of 39,296 tonnes of copper cathode and 3,512 tonnes of cobalt hydroxide. Meanwhile, Glencore's third-quarter nickel output grew 18% to 34,000 tonnes, while zinc and lead production declined by 5% and 11%, respectively, to 273,300 tonnes and 72,300 tonnes.

Ma'aden sinks to Q3'19 loss

Saudi Arabian Mining Co., or Ma'aden, plummeted to a third-quarter loss of 254.1 million Saudi Arabian riyals, from a profit of 518.8 million riyals a year earlier. Sales in the period, however, grew to 4.30 billion riyals from 3.40 billion riyals.

DIVERSIFIED

* Facing uncertainty in global markets and falling commodities prices in some sectors such as coking coal, Teck Resources Ltd. outlined plans to slash about C$500 million from previously planned spending in 2019 and 2020 without reducing production volumes. On its third-quarter earnings call, Teck CFO Ronald Millos said about C$170 million in cuts would come this year and C$330 million in 2020, with plans to trim about 500 full-time jobs through attrition and freezing some job hires and contract renewals. About 30% of the C$500 million savings target would come from deferred capital projects, Millos said. The planned cuts come as lower commodity prices put pressure on miners to defend margins.

* Korab Resources Ltd. and its subsidiaries Australian Copper Pty. Ltd. and Australian Copper Holdings Pty. Ltd. have extended the option for Great Fingall Mining Co. NL to acquire the Mount Elephant copper-gold property in Western Australia for a further eight months to June 21, 2020, for a fee of A$10,000. The option was previously extended for six months to Oct. 21.

BASE METALS

* In the third quarter, Grupo México SAB de CV's third-quarter consolidated profit amounted to US$249.7 million, in line with year-ago earnings of US$249.6 million. Meanwhile, the conglomerate's Southern Copper Corp. unit's net income rose 5.5% yearly to US$389.6 million, as net sales hiked 7.9% to US$1.86 billion and copper output for the quarter totaled 252,380 tonnes, a 12.7% increase.

* Jinduicheng Molybdenum Co. Ltd.'s net profit attributable to shareholders for the third quarter jumped 121.9% year over year to 174 million Chinese yuan, or 5.4 fen per share, attributed to higher molybdenum prices.

* Trafigura Group Pte. Ltd. raised its offer to Nyrstar NV shareholders to €22.5 million from €22 million for their remaining 2% stake.

* Pala Investments Ltd.'s acquisition of Cobalt 27 Capital Corp. is expected to be completed during the morning of Oct. 25. The deal involves the creation of a new company, Nickel 28 Capital Corp., which has been renamed as Conic Metals Corp.

* Karmin Exploration Inc. received final orders from the Court of Queen's Bench of Alberta, which approved a previously announced sale to Nexa Resources SA, its joint venture partner in the Aripuana zinc project in Brazil.

* Felizardo Gacad Jr., the newly installed chief of the Philippines' Mines and Geosciences Bureau in Region 12, said in a Mindanews report that the US$5.9 billion Tampakan copper and gold project in South Cotabato is not yet due for commercial production, clarifying a prior report by the Philippine News Agency that quoted Gacad as saying that the Office of the President will lift the order suspending the Environmental Compliance Certificate given to operator Sagittarius Mines Inc. Reuters, meanwhile, reported that the Department of Environment and Natural Resources has recommended lifting the three-year suspension of the environmental permit for Tampakan.

PRECIOUS METALS

* Agnico Eagle Mines Ltd.'s record quarterly gold production during the third quarter of nearly 477,000 ounces falls in line with where the company expected to be, CEO Sean Boyd said in an earnings call. As a result of more output and decreased capital spending, the company also expected to generate free cash flow, Boyd said.

* Yamana Gold Inc. swung to an attributable net income of US$201.3 million, or 21 cents per share, in the third quarter, from a year-ago net loss of US$81.3 million, or 9 U.S. cents per share. The results include a US$273.1 million gain on the sale of the Chapada copper-gold mine in Brazil in early July to Lundin Mining Corp. Revenue in the quarter, however, dropped to US$357.8 million from US$424.7 million, and total cost of sales fell to US$276.0 million from US$350.8 million.

* Silver Lake Resources Ltd.'s board has approved the development of the Santa Underground mine at the Mount Belches mining center in Western Australia. Meanwhile, Silver Lake extended its offer to acquire Egan Street Resources Ltd. in a A$52 million deal to Dec. 13.

* Resolute Mining Ltd. said that the sulfide roaster at the Syama gold mine in Mali is expected to be repaired and to return to full operation in about six weeks. Operation of the roaster was temporarily halted earlier this month after a crack was detected in the main external shell. Resolute, however, is not making any changes to its full-year 2019 gold production guidance of 400,000 ounces.

* G2 Goldfields Inc. has completed its acquisition of all of the issued and outstanding shares of Bartica Investments Ltd.

* An independent reoptimization of Middle Island Resources Ltd.'s Sandstone gold project in Western Australia demonstrated that the Sandstone plant can be profitably refurbished, in which it would utilize feed from the miner's existing mineral resources.

* Eagle Plains Resources Ltd. granted Canex Energy Corp. an option to earn up to a 75% interest in the Olson gold property in Saskatchewan.

* Vladislav Sviblov, majority shareholder of Fortiana Holdings Ltd., acquired a 4.6% stake in gold mining company Petropavlovsk PLC. He considers the asset undervalued and the gold market attractive.

* TMAC Resources Inc. said that construction has started on the Madrid North underground portal. The portal and underground development is targeting the Naartok West zone, enabling access to first production stopes in late 2020. The Madrid North development is expected to provide both near-term operational flexibility and enable medium-term potential growth alternatives at the Hope Bay gold project in Canada.

* Focus Minerals Ltd. outlined a maiden resource estimate for the Beasley Creek deposit, part of the Laverton gold project in Western Australia. The initial indicated and inferred resource estimate, at a 0.8 g/t gold cut-off, totaled 191,900 ounces of gold contained in 2.66 million tonnes grading 2.24 g/t gold.

* Maple Gold Mines Ltd. outlined an indicated resource estimate for the Douay gold project in Quebec of 422,000 ounces of gold within 8.6 million tonnes grading 1.52 g/t gold. Inferred resource, meanwhile, totaled 2.4 million ounces of gold within 71.2 million tonnes grading 1.03 g/t gold.

BULK COMMODITIES

* United Co. Rusal PLC's aluminum production in the third quarter slightly improved by 0.4% over the second quarter to 942,000 tonnes. Aluminum sales in the three months also slightly rose by 0.8% to 1.1 million tonnes. However, the average aluminum realized price declined 3.8% to US$1,896 per tonne, compared to the second quarter. The Russian company said that trade tensions between China and the U.S., as well as a general global slowdown, has further deteriorated aluminum demand in the third quarter compared to the second quarter.

* PJSC PhosAgro signed a memorandum of understanding with Kropz PLC, agreeing to evaluate opportunities to exchange information and technical expertise in order to increase their projects' capacities. The projects include those in South Africa, such as Kropz' Elandsfontein that is the country's second-largest phosphate deposit, and in the Republic of the Congo and Ghana.

* Tao Commodities Ltd. secured an exclusive option to buy a portfolio of iron ore assets in Western Australia, covering an area of 874 square kilometers, through the acquisition of the issued share capital of DSO Mining Pty Ltd.

* Total U.S. coal production for the week ended Oct. 19 tightened 11.5% year over year to 13.0 million tons from 14.7 million tons, according to data from the U.S. Energy Information Administration. For the 52 weeks ended Oct. 19, production totaled 723.0 million tons, representing a year-over-year decrease of 4.2%, while year-to-date coal output declined 5.2% year over year to 573.0 million tons.

* Magnetite Mines Ltd. entered into an exclusive agreement with NextOre Pty. Ltd. for exclusive use of the latter’s magnetic resonance technology for preconcentration of magnetite and iron ore projects.

SPECIALTY

* Albemarle Corp.'s full-year 2019 guidance for adjusted EBITDA was cut to between US$1.02 billion and US$1.06 billion, from the previous forecast of US$1.07 billion to US$1.14 billion, amid price pressure in a weak lithium market. Adjusted EPS guidance was also trimmed to between US$6.00 and US$6.20, compared to the prior guidance of between US$6.25 and US$6.65.

* Lithium Australia NL is eyeing a public float of Envirostream Australia Pty. Ltd. — the Melbourne, Australia-based battery recycling business in which the Australia-listed lithium producer increased its stake to 23.9% — and potentially its battery division. Managing Director Adrian Griffin told S&P Global Market Intelligence that increasing that stake was in preparation for merging Envirostream with the intellectual property his company has been developing for the refining of battery materials.

* TNG Ltd. said that it has been granted a European patent for its proprietary Tivan hydrometallurgical process for the extraction and recovery of high-purity vanadium.

INDUSTRY NEWS

* Central to mining executives' message at the Future of Mining Americas conference in Denver was the notion that technology and innovation, if handled properly, could serve as a catalyst for improvements in the industry, including safety. Bertrand Odinet, chief information officer and chief innovation officer of Freeport-McMoRan Inc., told S&P Global Market Intelligence that technology has helped the company to better understand its systems and make more targeted investments to optimize assets. It subsequently has received a better return on capital for those investments.

* Ore mining companies operating in Indonesia will need to optimize their use of land given to them under planned new rules, according to energy and mineral resources ministry director Yunus Saefulhak, Reuters reported. The report cited that miners of Indonesia's resources such as nickel, copper and bauxite, often use only a small portion of their concession and sit on massive unexplored area. The government plans to create parameters to measure exploration activities.

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