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In This List

Ex-Peabody execs lob A$442M bid for Stanmore Coal; Glencore's H1 earnings slump

State of the Market: Mining Q1-2020

Mining Exploration Insights - April 2020

Mining Exploration Insights December

Mining Exploration Insights: Dip in gold drilling weighs on results


Ex-Peabody execs lob A$442M bid for Stanmore Coal; Glencore's H1 earnings slump

Due to technical difficulties, publication of this Daily Dose feature was delayed. We regret the inconvenience.

TOP NEWS

Ex-Peabody executives in up to A$442M indicative bid for Stanmore Coal

Winfield Group Investments Pty. Ltd. lodged a nonbinding, off-market takeover offer to fully acquire Stanmore Coal Ltd. at between A$1.50 and A$1.70 per share, sending the target's shares up almost 16.5% by Australian trading close Aug. 7. Winfield Group counts former Peabody Energy Corp. executives as its owners, including Executive Chairman Rob Hammond. Stanmore said the indicative offer values the company at between A$390 million and A$442 million.

Glencore's H1 earnings down 92% YOY on lower prices, African impairments

Glencore PLC booked a 92% slump in attributable net income to US$226 million, or 2 US cents per share, in the first half mainly driven by lower average year-over-year commodity prices and impairment charges at its African copper and Chad oil portfolios. Revenue for the period slipped to US$107.10 billion from US$108.55 billion a year earlier.

Tata Steel's Q1'20 profit slumps YOY, finds new buyer for Thai unit

Tata Steel Ltd.'s net profit for its fiscal first quarter plunged to 7.02 billion Indian rupees, or 5.83 rupees per share, from 19.34 billion rupees, or 16.66 per share, booked a year ago. Tata Steel executed a memorandum of understanding to divest a 70% stake in Tata Steel (Thailand) PCL to Synergy Metals and Mining Fund and form a 70/30 partnership for the business. The deal follows the termination of its earlier agreement with HBIS Group Co. Ltd.

DIVERSIFIED

* BHP Group's board approved a US$283 million investment to develop its 68.46%-owned Ruby petroleum project in Trinidad and Tobago.

BASE METALS

* Codelco's first-half production tumbled 12.1% year on year to 769,400 tonnes, Reuters reported, citing the country’s Cochilco copper commission. Copper production at BHP Group's Escondida mine dropped 12% to 569,900 tonnes, while copper output at Anglo American PLC and Glencore PLC's Collahuasi mine fell 2.8% to 254,700 tonnes, the report said.

* The Lusaka High Court in Zambia threw out Vedanta Resources Ltd.'s appeal to halt the liquidation of its Konkola Copper Mines PLC unit, Bloomberg News reported. A hearing for a winding-up petition was scheduled Aug. 27, with preliminary arguments to be heard Aug. 13, the report said.

* Glencore will try to mitigate the impact of its decision to close the Mutanda copper-cobalt mine in the Democratic Republic of the Congo by retaining the local workforce and funding social responsibility projects near the site, Bloomberg News reported.

* First Quantum Minerals Ltd. terminated its option to acquire the Orquideas copper-molybdenum property in Ecuador from Luminex Resources Corp. due to unsatisfactory drill results. Luminex said it will evaluate whether to retain or relinquish the concession.

* Searchlight Resources Inc. secured an option to acquire the Flin Flon North copper-zinc-gold prospective project located in Saskatchewan from GEM Oil Inc., which is entitled to a 2% net smelter royalty and 25% of proceeds should Searchlight sell the property.

PRECIOUS METALS

* Franco-Nevada Corp.'s net profit increased 19.4% year over year in the second quarter to US$64.0 million, or 34 cents US per share, from US$53.6 million, or 29 cents per US per share. The company declared a dividend of 25 cents US per share, up from 24 cents US per share for the prior-year period.

* For its fiscal fourth quarter, Royal Gold Inc. reported attributable net earnings of US$25.5 million, or 40 cents per share, compared to US$24.0 million, or 41 cents per share, in 2018. The result included a US$2.8 million posttax loss on changes in fair value of equity securities.

* Pan American Silver Corp. posted a 50% slump in second-quarter net earnings to C$18.5 million from C$36.7 million a year ago. Silver production stood at 6.5 million ounces while gold output totaled 154,600 ounces.

* Hecla Mining Co. swung to a net loss of US$46.5 million in the second quarter from a net profit of US$12.1 million in the year-ago period, while revenue fell to US$134.2 million from US$147.3 million. The company increased its full-year silver output guidance to 11.7 million ounces from 10 Moz.

* Coeur Mining Inc. swung to a second-quarter net loss of US$36.8 million, or 18 cents per share, from a year-ago profit of US$2.9 million, or 2 cents per share, following a non-cash write-down of US$11.9 million during the period.

* First Majestic Silver Corp. has decided to temporarily suspend mining operations at its La Parrilla silver mine in Mexico towards the end of the year to improve the mine's margins and profitability, which has suffered due to low silver and lead prices. The company lowered its annual silver equivalent production guidance to between 24.4 million ounces and 26.0 Moz from 24.7 Moz to 27.5 Moz previously forecast.

* Argonaut Gold Inc. produced 40,213 ounces of gold equivalent in the second quarter, up 5% year on year from 38,441 ounces of gold equivalent. Net profit surged 1,250% year on year to C$5.4 million from C$400,000.

* In response to protests by thousands against its Kirazli gold project in Turkey, Alamos Gold Inc. CEO John McCluskey said in an interview with Reuters that the company has prepaid for reforestation in the area and the feared leak of cyanide into the environment is impossible due to preventive measures taken by the miner.

* Pure Gold Mining Inc. approved the decision to build the Madsen Red Lake mine and secured funding to fully develop an underground mine at the company's Madsen gold project in Ontario. To fund the development, Pure Gold closed a US$90 million project financing package with Sprott Resource Lending Corp.

* The Association of Mineworkers and Construction Union said it has been frustrated by the attitude of large platinum producers who are resisting wage increases despite reporting a rise in profits.

* The government of Kyrgyzstan suspended operations at Chinese miner Zhong Ji Mining's Solton-Sary gold mine in Naryn region for one month after 20 people were hurt at violent protests over the site's alleged toxic spillage, Reuters reported, citing the Kyrgyz interior ministry.

* Centerra Gold Inc. and the government of Kyrgyzstan completed all conditions of a settlement agreement over their dispute on the Kumtor gold project. The two parties will now move to cancel the remaining lawsuits affecting the project.

* Moneta Porcupine Mines Inc. signed an exploration and cooperation agreement with the Wahgoshig First Nation over the Golden Highway gold project in Ontario.

* Deeprock Minerals Inc. secured an option to acquire the Golden Gate gold project in eastern Canada for C$170,000 cash, 200,000 shares and C$220,000 in development work over four years.

BULK COMMODITIES

* Brazilian steelmaker Gerdau SA reported a 46.5% drop in second-quarter net profit to 372.8 million Brazilian reais from 698.3 million reais in the year-ago period as sales volumes were impacted by asset disposals in 2018.

* Voestalpine AG blamed a slumping auto industry, rising iron ore prices and weaker demand for its steel products for a drop in fiscal first-quarter profit to €90 million from €226 million in the prior year. Revenue fell 3.8% year over year to €3.3 billion, EBIT declined 51.6% to €157 million, and EBITDA sank 27.7% to €371 million.

* The Italian government will offer ArcelorMittal a temporary and limited legal immunity to prevent the closure of its Ilva International SpA plant, Reuters reported, citing a government source.

* An investment group owned by Turkey’s military pension fund joined the race to acquire British Steel Corp. Ltd., Financial Times reported, citing two sources familiar with the matter. Ataer Holding is a unit of state military retirement scheme Oyak, which is the largest shareholder in steelmaker Erdemir.

* Gerald Holdings LLC subsidiary SL Mining will hold off a plan to raise iron ore production to 6 million tonnes per year following an export ban imposed by the government of Sierra Leone in July, Fastmarkets MB reported.

* Peabody Energy unveiled a second-quarter cash dividend of 14.5 cents per share, an increase from the prior quarter's dividend of 14 cents per share. Separately, miners at Peabody Energy's Kayenta coal mine in Arizona are preparing for staff reductions as the operation's sole customer winds down its units.

* Minergy Ltd. produced first salable coal at its Masama mine in Botswana, which has been exported to South Africa and Namibia. CEO Morné du Plessis said the company has extracted about 39,000 tonnes from the mine since July and plans to ramp up production to 100,000 tonnes per month by 2020.

* An electrician working at the Kanawha Eagle Mining LLC's South Hollow Preparation Plant in West Virginia died from injuries sustained after an electric shock, according to a release from the West Virginia Office of Miners' Health, Safety and Training.

* The Commonwealth Bank of Australia withdrew its support of thermal coal mining and consumption, although its coal exposure has been minimal, The Australian Financial Review wrote.

SPECIALTY

* Albemarle Corp. reported net sales rose to US$853.9 million in the 2018 second quarter to US$885.1 million in the recent quarter, an increase of 4%. The rise was attributed to favorable pricing in all of the company's reportable segments and increased volume in sales from its lithium and bromine segments.

* Ioneer Ltd.Ltd.'s sales and marketing consultant, Michael Le Page, said on the sidelines of the Diggers & Dealers conference in Kalgoorlie, Australia, that ioneer's concerted efforts at educating institutional funds on the boron market are starting to bear fruit.

* Lynas Corp. Ltd. said the Malaysian government indicated that a decision about renewing the operating license for the Gebeng rare earths plant is expected by the middle of this month.

* An updated scoping study for Piedmont Lithium Ltd.'s namesake lithium project in North Carolina bumped up the posttax net present value, discounted at 8%, to US$1.45 billion, with the internal rate of return lower at 34%, but with a longer 25-year mine life.

* Lucapa Diamond Co. Ltd. raked in A$8.8 million from the latest sale of diamonds from its Lulo alluvial mine in Angola and the Mothae kimberlite mine in Lesotho.

* The Association of China Rare Earth Industry expressed support on the country's potential export restriction on rare earth minerals as part of escalating trade tensions with the U.S., Reuters reported.

INDUSTRY NEWS

* Sierra Leone's Minister of Trade and Industry Edward Hinga Sandy explained that the government's recent crackdown on miners was about improving transparency, as the previous administration allowed mining permits to be resold to third parties without intervening, Bloomberg News reported.

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