TOP NEWS
Rio Tinto paying US$3.5B in dividends as underlying H1'19 profit rises
Rio Tinto will distribute a dividend of US$3.5 billion, comprising an interim dividend of US$2.5 billion and a US$1.0 billion special dividend. Net profit in the first half slipped 6% yearly to US$4.13 billion, or US$2.51 per share, as consolidated sales revenue grew to US$20.72 billion from US$19.91 billion.
Vale swings to Q2'19 loss YOY on write-downs for Samarco, Feijao
Vale SA swung to a second-quarter loss of US$133 million, or 3 U.S. cents per share, from a profit of US$76 million, or 1 cent per share, in the same quarter of 2018. The loss was attributed to US$2.14 billion in write-downs related to the tailings dam burst at the Samarco mine in 2015 and a similar incident at the Feijao mine in January.
ArcelorMittal swings to Q2'19 loss YOY; crude steel output up
ArcelorMittal swung to a second-quarter loss of US$447 million, or 44 U.S. cents per share, from a profit of US$1.87 billion, or US$1.83 per share. Crude steel production inched up to 23.8 million tonnes from 23.2 Mt, with commodity shipments increasing to 22.8 Mt from 21.8 Mt.
BASE METALS
* Nyrstar NV resumed production at its Port Pirie lead smelter in South Australia after the operation was suspended in May due to a blast furnace outage, Reuters reported. The company also completed its capital restructuring, allowing Trafigura Group Pte. Ltd.'s takeover.
* Turquoise Hill Resources Ltd. slipped into the red in the second quarter with a net attributable loss of US$446.5 million, from a year-ago profit of US$171.3 million, due to a US$596.9 million impairment at the Oyu Tolgoi mine and adjustments in deferred tax assets.
* Annual repairs at PJSC Norilsk Nickel Co.'s Harjavalta refinery in southwestern Finland weighed on the top nickel and palladium producer's output in the second quarter. Nickel production declined 4% quarter over quarter to 53,767 tonnes, while copper declined 2% to 124,539 tonnes.
* A new economic model for Phoenix Copper Ltd.'s Empire project in Idaho outlined a posttax net present value, discounted at 7%, of US$55.5 million and a 33% internal rate of return based on a copper price of US$3.25 per pound.
* Philex Mining Corp. appointed financial and legal advisers to seek potential strategic partners for developing its Silangan copper project in the Philippines.
* Vedanta Resources Ltd. launched arbitration proceedings over Zambia's attempt to liquidate the company's Konkola Copper Mines PLC unit, Reuters reported.
* PT Vale Indonesia Tbk. reported second-quarter production of 17.6 million tonnes of nickel in matte, a 35% quarterly increase, due to the completion of planned maintenance activities. EBITDA surged 620% to US$28.8 million on higher deliveries, higher prices and lower cash costs.
* Nexa Resources SA produced 91,000 tonnes of zinc in the second quarter, 1% lower than the year-ago period, due to lower production at the Cerro Lindo mine in Peru.
* New Century Resources Ltd. intends to raise A$42.5 million through a share placement to institutional and sophisticated investors. It will put the funds toward the continued refurbishment and ramp-up of the Century zinc mine in Queensland, Australia.
PRECIOUS METALS
* Endeavour Mining Corp. reported a year-over-year fall in net earnings for the second quarter to US$1 million from US$4 million, while revenue increased to US$219 million from US$190 million. Gold production grew to 171,000 ounces from 147,000 ounces.
* AngloGold Ashanti Ltd. expects headline earnings of US$111 million to US$129 million for the six months ended June 30, increasing 21% year over year from US$99 million based on the midpoint of the guidance range.
* Toronto-listed Kinross Gold Corp.'s net earnings attributable to common shareholders for the second quarter climbed to US$71.5 million from US$2.4 million a year ago. Kinross also agreed to acquire the Chulbatkan gold project in Russia from N-Mining Inc. for US$283 million in cash and shares.
* Alamos Gold Inc. swung to a net profit of US$23.6 million in the second quarter from a year-ago loss of US$8.9 million. Consolidated gold production totaled 125,200 ounces as its Island gold mine in Ontario achieved record gold production of 39,500 ounces for the third straight quarter.
* Osisko Gold Royalties Ltd. swung to a second-quarter loss of C$6.5 million from a year-ago profit of C$511,000.
* Northern Star Resources Ltd.'s guidance for its fiscal 2020 was pegged at between 800,000 and 900,000 ounces of gold at all-in sustaining costs of A$1,200 per ounce to A$1,300/oz. The Australian miner also budgeted A$76 million for exploration.
* Tharisa PLC received board approval to build a process plant within its namesake platinum mine in South Africa, which will use a proprietary processing method. First chrome production from the plant is anticipated within 15 months.
* Red 5 Ltd.'s maiden open pit probable ore reserve for the King of the Hills gold project in Western Australia stood at 36.0 million tonnes grading 1.25 g/t gold for 1.45 million ounces of contained gold.
* Metals Exploration PLC said senior lenders HSBC and BNP Paribas agreed to extend a standstill agreement over the repayment of its mezzanine debt facility after businesses in Hong Kong were shut down by the arrival of Typhoon Wipha.
* Crystallex International Corp. must apply for an exemption from U.S. sanctions on Petróleos de Venezuela SA before seizing shares in the latter's U.S. unit, CITGO Petroleum Corp., as part of a US$1.4 billion award, Reuters reported, citing Alejandro Grisanti, an adviser to Venezuelan opposition leader Juan Guaido.
* Sylvania Platinum Ltd. achieved record production of 21,789 ounces of 4E platinum group metals in the fourth quarter of its fiscal 2019 to reach a full-year record of 72,090 ounces.
* Spectrum Metals Ltd. received confirmations for a share placement to raise about A$7.3 million to fund an expanded exploration program at its Penny West gold project in Western Australia.
* Group ore reserves for Saracen Mineral Holdings Ltd. stood at a record 3.3 million ounces as of June 30, a 32% yearly increase.
* An updated probable ore reserve for Egan Street Resources Ltd.'s Rothsay gold project in Western Australia grew 18% to 235,000 ounces contained in 1.61 million tonnes grading 4.5 g/t gold.
BULK COMMODITIES
* Vale SA and BHP Group joint venture Samarco Mineração SA is likely to be granted a mining license for the Samarco iron ore mine in Brazil during the second half, after mining was halted due to a deadly dam collapse in 2015, Bloomberg reported, citing the Minas Gerais state environmental agency. Negotiations with creditors of US$3.5 billion in defaulted debt will resume in October, and the mine may be formally allowed to start operations as early as mid-September, people with knowledge of the situation told Bloomberg.
* China Zhongwang Holdings Ltd. and former President and Chairman Liu Zhongtian were indicted by federal U.S. prosecutors for allegedly smuggling large amounts of extruded aluminum to evade US$1.8 billion in tariffs imposed in 2011, Reuters reported.
* German steel distributor Kloeckner & Co. is willing to help thyssenkrupp AG with its restructuring and consolidation of its materials trading division while eyeing a minority stake in the company, Reuters wrote, citing Kloeckner CEO Gisbert Ruehl.
* Nippon Steel Corp. reported a 61% year-over-year fall in net profit attributable to owners of the parent to ¥33.33 billion for the first quarter of its fiscal 2019. Revenue for the June quarter rose 4.3% on a yearly basis to ¥1.522 trillion, with operating profit falling 33.1% to ¥60.60 billion.
* Outokumpu Oyj's stainless steel deliveries in the second quarter totaled 584,000 tonnes, down from 668,000 tonnes in the year-ago quarter. Net earnings plummeted to €6 million from €25 million.
* Warrior Met Coal Inc. reported a rise in second-quarter net income to US$125.5 million from US$91.3 million a year ago.
* Peabody Energy Corp.'s net income attributable to shareholders for the second quarter was US$37.1 million, or 34 U.S. cents per share, down from US$113.7 million, or 90 cents per share, in the same quarter of 2018.
* Alcoa Corp. expects to book third-quarter charges of about US$135 million, or 73 U.S. cents per share, after PARTER Capital Group AG closed its acquisition of the Aviles and La Coruña aluminum plants in Spain.
* Kalium Lakes Ltd. secured the 10 Mile Lake West exploration license, part of its Beyondie sulfate of potash project in Western Australia.
* Mastermyne Group Ltd. secured the development and outbye services contract for Anglo American PLC's Aquila project, part of the Capcoal operation in Queensland, Australia.
* Ternium SA CEO Máximo Vedoya expects the company's Mexican operations to benefit from an anticipated hike in steel product prices in North America due to an increase in milling prices in the U.S., Fastmarkets MB reported.
* India denied conducting a probe that may result in safeguard duties on imported steel products, Fastmarkets MB reported, citing the country's Directorate General of Trade Remedies.
SPECIALTY
* In the second quarter, JSC National Atomic Co. Kazatomprom's uranium production, on an attributable basis, increased 11% yearly to 3,163 tonnes. Average realized price grew 14% yearly to US$27.69 per pound.
* Malaysian Prime Minister Mahathir Mohamad confirmed that Lynas Corp. Ltd. will no longer have to export low-level radioactive waste stored near its Gebeng rare earths plant in the country ahead of a license renewal, The Australian Financial Review reported. "We are giving this condition to Lynas that they should have a plan for dealing with the waste. ... We are waiting for them to tell us how they will do that, whether they find a place where they can deposit the waste or not," Reuters quoted the prime minister as saying.
* Albemarle Corp. revised a joint venture deal with Mineral Resources Ltd. to acquire a 60% stake in the Wodgina lithium mine in Western Australia for US$820 million in cash, rather than a 50% stake for US$1.15 billion, reflecting a slump in the lithium market, Reuters reported. In turn, Mineral Resources will acquire a 40% stake in Albemarle's Kemerton hydroxide plant in Western Australia.
* Bacanora Lithium PLC received the first approval for the previously announced strategic investment and off-take deal with Ganfeng Lithium Co. Ltd.
* PJSC Alrosa President Sergey Ivanov told Vedomosti that he expects the diamond market to lose about 15 million carats within seven years.
* Lithium Power International Ltd.'s joint venture partner, Minera Salar Blanco SA, entered into a nonbinding memorandum of understanding with Codelco for developing the Maricunga lithium project in Chile.
* The Mozambican Ministry of Mineral Resources and Energy issued New Energy Minerals Ltd. the mining concession 9407C until March 2044, which forms part of its Caula graphite project.
* Plateau Energy Metals Inc. said the mining council in Peru's Ministry of Energy and Mines denied the company's appeal to suspend a resolution by the Institute of Geology, Mining and Metallurgy that recommended the cancellation of its seven concessions in the country.
* Altura Mining Ltd. signed a binding off-take agreement with Guangdong Weihua Corp. for 50,000 tonnes of lithium concentrate per year for five years from the Altura lithium mine in Western Australia.
INDUSTRY NEWS
* Chilean President Sebastián Piñera tapped Ricardo Irarrázabal as the country's new mining undersecretary in lieu of Pablo Terrazas, who took up the executive vice president role for Chilean development agency Corfo, El Mercurio reported.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.