Barrick's Q2 adjusted profit, gold output rise
Barrick Gold Corp. said second-quarter gold output rose 27% year over year to 1.35 million ounces at 2% higher all-in sustaining costs of US$869 per ounce. Full-year output is expected near the upper end of guidance of between 5.1 Moz and 5.6 Moz attributable to Barrick. Adjusted net profit rose to US$154 million, from US$81 million a year ago, but was down from US$184 million in the first quarter. Free cash flow fell to US$55 million, from US$146 million in the first quarter, but compared favorably with negative free cash flow of US$172 million a year ago. Copper output was up 17% on a yearly basis at 97 million pounds.
Peru suspends Southern Copper's construction permit for Tia Maria copper mine
The Peruvian government suspended Southern Copper Corp.'s construction permit for its long-delayed Tia Maria copper mine pending a review, Reuters reported, citing Energy and Mines Minister Francisco Ismodes' interview with local broadcaster RPP. The evaluation process, which may take two to three months, will look into the legality of the permit as well as objections from local communities where the US$1.4 billion project will be built, the report said.
Tanzanian government allows Acacia Mining to resume gold exports
Acacia Mining PLC received approval from the government of Tanzania to resume gold exports from the North Mara gold mine following an investigation conducted at the end of July. However, the Mining Commission of the Tanzanian Ministry of Minerals said it believes that provisions of mining regulations from 2010 were violated, and it directed the mine to submit a feasibility study report and mine plan for approval by Aug. 16.
* Rio Tinto is accused of breaching a confidentiality agreement with consultancy GFI Blackswan, which helped shape the miner's management and executive succession before it resigned in December 2017, The Australian Financial Review wrote, citing a letter Blackswan sent to former participants of Rio Tinto's programs. Rio Tinto is now reportedly demanding that Blackswan return data gathered from the miner's executives, which Blackswan has resisted.
* Over the past seven years, BHP has contributed A$50 million to nonprofit environmental group Conservation International for preserving and protecting 620,000 hectares and 16 critically endangered animals worldwide, The Sydney Morning Herald wrote.
* Rio Tinto hit a key permitting milestone at its Resolution copper joint venture in Arizona with BHP Group after the U.S. Forest Service released a draft environmental impact statement following a six-year review that started in 2013. A 90-day public consultation will now start for a final EIS. Resolution is said to have the potential to supply 25% of U.S. copper demand.
* Contrary to a prior statement that it was perfectly financed over the next two years, Chilean state copper miner Codelco raised a combined US$180 million in bonds, borrowed US$300 million and sold its 37% stake in natural gas port terminal GNL Mejillones for US$193.5 million, Bloomberg News wrote.
* Oyu Tolgoi LLC chief Armando Torres urged Mongolian lawmakers to clarify their stance on the Oyu Tolgoi copper project as it would be difficult to secure additional funds if the project is clouded by uncertainty, The Australian Financial Review reported, citing a Bloomberg News interview.
* Rafaella Resources Ltd. shareholders approved the purchase of the Santa Comba tin-tungsten project in northwestern Spain through the acquisition of the issued share capital of private Spanish company Galicia Tin & Tungsten SL.
* Newcrest Mining Ltd. is expected to confirm that its Cadia gold mine in New South Wales, Australia, raked in more than A$1 billion in earnings for its fiscal year ended June 30, The Australian Financial Review wrote.
* Wheaton Precious Metals Corp. is on track for record annual attributable gold production this year but had to reduce its guidance on silver production due to an illegal blockade that forced it to temporarily suspend operations at one mine.
* Lundin Gold Inc. swung to a second-quarter net loss of US$30.8 million, or a loss of 14 U.S. cents per share, from a year-ago profit of US$19.7 million, or 9 cents per share, driven by a revaluation of its long-term debt and recognition of a foreign exchange loss.
* The Quinhagak tribe of Alaska opposed Barrick Gold's proposed Donlin gold joint venture in the state amid concerns that residents would leave the tribe to take jobs at the operation, KYUK Public Media reported.
* Avesoro Resources Inc. suspended operations at its Youga gold mine in Burkina Faso after an armed group of artisanal miners entered the site. Sources told Reuters that an illegal miner was killed after being shot by a security guard at the mine, which prompted residents to retaliate by burning buildings and vehicles and injuring people in the area.
* Investment firm VanEck's New York-based portfolio manager, Joe Foster, said Australian gold miners should be cautious and avoid overpaying for any assets that may be up for sale in the near term, especially with Australian dollar gold prices at a record high, The Australian Financial Review reported.
* PCF Capital Group Pty. Ltd. and Zhaojin Mining Industry Co. Ltd. signed a deal to form the Golden Gateway joint venture in Western Australia, under which Zhaojin intends to invest in the state's gold mining sector.
* White Cliff Minerals Ltd. granted Lorikeet Resources (WCM) Pty. Ltd. an option to earn up to a 50% stake in tenement E38/2693, covering the Ironstone gold project in Western Australia.
* A Turkish investment group tipped as the preferred bidder for British Steel Corp. Ltd. is preparing to invest about £900 million in the insolvent steelmaker, Sky News reported, citing unnamed sources. The U.K. government agreed to support British Steel with a financial rescue package of up to £300 million, allowing the investment group to take over the steelmaker, according to a separate report that cited sources familiar with the matter.
* Steel Authority of India Ltd. reported a net profit of 688.4 million Indian rupees in the first quarter of its fiscal 2020, down from 5.40 billion rupees in the year-ago period. The steelmaker noted that this marked the seventh consecutive quarterly profit amid subdued demand.
* United Co. Rusal PLC and Braidy Industries Inc.'s plan to build the Ashland aluminum plant in Kentucky is in peril because of statements by U.S. politicians who view the enterprise as a threat to national security, Kommersant reported. Rusal and Braidy already signed binding documents for the project and are planning to launch the plant in 2020, the report said.
* China Shenhua Energy Co. Ltd. expects its first-half attributable net profit to decrease 1% year over year to 24.2 billion Chinese yuan, or 1.2 yuan per share, amid a decline in coal sales.
* Aluminum and copper producer Hindalco Industries Ltd. posted a 28% year-over-year decrease in earnings for the first quarter of its fiscal 2020 to 10.63 billion Indian rupees amid lower commodity prices and the global economic slowdown.
* Tata Steel Ltd. unit Tata Steel UK Ltd. reported an annual loss of £371 million for its fiscal 2019, compared to £222 million in the year-ago period, driven by lower production caused by the maintenance shutdown of one of the two blast furnaces at the Port Talbot steelworks in South Wales, U.K., Bloomberg Quint reported.
* In recent months, Rio Tinto has awarded over A$60 million of work to Pilbara Aboriginal businesses in Western Australia related to the company's Koodaideri iron ore mine.
* About 85,000 retail investors will be impacted if Sirius Minerals PLC fails to secure funding for its Woodsmith potash project in the U.K., Financial Times reported.
* Ironveld PLC entered into confidentiality agreements with parties interested in acquiring all or part of its assets, including its high-purity iron, vanadium and titanium project in South Africa.
* Stanmore Coal Ltd. executed a process deed allowing Winfield Group Investments Pty. Ltd. to conduct due diligence over a proposed A$442 million acquisition of the Australian coal miner.
* Pacific Bauxite Ltd. said its proposed A$1.5 million sale of its residual interests in milestone payments and royalties from the Mount Richardson, Rogetta and Golden Camel projects to Cylinder Cove Pty. Ltd. was terminated.
* Western Australia's state treasurer, Ben Wyatt, predicted that the state's windfall from high iron ore prices is due to end and fall in line with its projection of US$73.50 per tonne as prices have slumped closer to US$93/t from a peak of US$121/t in July, The West Australian reported.
* Iron ore prices extended a slump since the start of August to US$87.35/t, following a decrease of as much as 6.2% previously, on the back of a downturn in China's construction sector, Bloomberg News reported.
* Alliance Resource Partners LP will stop producing coal from its Dotiki mine in Kentucky on Aug. 16 to focus on its lower-cost mines in the Illinois Basin.
* Red Mountain Mining Ltd. agreed to acquire up to a 100% interest the Mount Mansbridge rare earths project in Western Australia from Unearthed Resources Pty. Ltd.
* Zenith Minerals Ltd. increased its land position at the Burro Creek East lithium project in Arizona by 250%.
* Northern Minerals Ltd. signed an off-take deal with thyssenkrupp AG unit thyssenkrupp Materials Trading GmbH for the sale of all heavy rare earth carbonate produced from the pilot plant at the Browns Range project in Western Australia. Separately, Northern Minerals entered into negotiations with a China-owned entity for a potential A$20 million investment, subject to shareholder approval.
* Bluejay Mining PLC secured an export permit to ship 40,000 tonnes of run-of-mine bulk sample material from its Dundas ilmenite project in Greenland to be processed at its pilot processing plant in Quebec.
* BHP, Rio Tinto and Fortescue Metals Group Ltd. joined a group of Australian companies that committed to spending over A$3 billion on indigenous suppliers over the next five years, The Australian Financial Review reported.
* Mexican President Andrés Manuel López Obrador said no mining concession will be granted until his term expires in 2024, El Financiero reported. López Obrador said that for the past 36 years, land equivalent to 40% of the national territory was awarded to concessions, and he accused companies of using the licenses primarily for financial speculation.
* India's national government asked states to apply for forest clearances on behalf of prospective miners in order to avoid a disruption in mineral production and its impact on the economy, The Economic Times of India 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.
The Daily Dose has an editorial deadline of 7 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.