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Buenaventura's gold output drops; Gerdau mulls asset sale; Yunnan Tin expects profit swing

TOP NEWS

Compañía deMinas Buenaventura SAA in the second quarter saw fall 18.3% year overyear, but witnessed improved silver, zinc and copper production. Gold outputfell to 275,467 ounces during the quarter, from 337,238 ounces a year earlier.Silver production amounted to 5.7 million ounces, increasing from 4.3 millionounces in the same quarter of 2015.

Gerdaumulls noncore asset sale to cut debt

Brazilian steelmaker Gerdau SA is mulling the sale of noncore assets inIndia, Central America, and South America to cut down its 23.7 billionBrazilian reais debt, SteelOrbis reported.

Yunnan Tin Co.Ltd. expects to swing to net profit of between 5 million Chinese yuanand 10 million yuan in the first half, compared to a net loss of 392.9 millionyuan, or 26.69 fen per share a year ago, due to a price rebound in nonferrousmetals.

BASE METALS

* WanguoInternational Mining Group Ltd. expects to record a year-over-yeardecrease in netprofit for the six months ended June 30, as its turnover and profits wereaffected by the global economic instability and slump in metal prices in thefirst half.

* The critical situation facing will require amendments to itsnational agreement, which was inked 45 years ago leading to Codelco'snationalization, to maintain the state miner's leadership in the global coppermarkets, CEO Nelson Pizarro said, daily DiarioFinanciero reported.

* Separately, Chile's mining minister, Aurora Williams,acknowledged that Codelco is facing lower copper prices than initiallyexpected. However, conditions for the capitalization of the state miner remainthe same as those approved two years ago through which the Chilean governmentwill provide up to US$4 billion for investments in the next five years, daily El Mercurio reported.

* Kommersant reported that the cost of copper projectof Russian Copper Co.rose to US$1.5 billion because of environmental reasons.

* As the companies, administrators, and a debtor fight tohave their cases heard first regarding Clive Palmer's nickel refinery,Glencore Plc'slawyers motioned in Queensland's Supreme Court that they wouldpursue the forced wind up of Queensland Nickel Inc., The Australian reported.The Swiss mining giant is also seeking to ensure that the A$3.8 million debt tothe refinery is advanced to its administrators and not to other companies.

PRECIOUS METALS

* A worker at Endeavour Mining Corp.'s Tabakoto gold mine in Mali after falling into a slot raisewhile working in the underground mine.

* Separately, Endeavour closed its previously announcedbought-deal financing with a syndicate of underwriters led by BMO CapitalMarkets, raising about C$143.8million including the full exercise of the underwriters'overallotment option.

* Middle IslandResources Ltd. said it has completed the A$2.5 million of the gold project inWestern Australia from Black OakMinerals Ltd.

* Mexico-focused Endeavour Silver Corp. increased its 2016 productionguidance and nowexpects to produce 9 million to 9.8 million silver equivalent ounces at athroughput of 2,900 tonnes to 4,800 tonnes per day. The move reflects thehigher metal prices and renewed focus on growth.

* Hecla MiningCo. further increased its output guidance for the year as it posted year-over-yearimprovements in gold, silver and lead production in the second quarter. Thecompany now estimates its 2016 output to total 15.75 million ounces of silverand 233,000 ounces of gold, or 44 million ounces of silver equivalent.

* Sibanye GoldLtd. has initiated a Section 189A consultation process withorganized labor and other stakeholders for possible at its gold operations inSouth Africa, as the company considers all options and alternatives to closingthe loss-making project.

* PanoramicResources Ltd. is aiming to finalize the prospectus for theIPO of its gold assets inWestern Australia on the Australian Securities Exchange in September.

* According to The Australian Financial Review,Metals X Ltd. said itwill consider selling its Rover gold project in the Northern Territoryafter it received several expressions of interest for the project.

* MedgoldResources Corp. secured into an option with a private Portuguese company, Lusorecursos,to acquire up to a 100% interest in the Marrancos gold project in northernPortugal.

BULK COMMODITIES

* PAOSeverstal's hot metal output in the second quarter decreased6% quarter over quarter to 2.2 million tonnes, and crude steel productiondeclined 3% quarter over quarter to 2.8 million tonnes. Consolidated sales ofsteel products increased 14% quarter over quarter to 2.8 million tonnes. Halfyearly production dropped 1% for both crude steel and hot metal to 5.7 milliontonnes and 4.6 million tonnes, respectively.

* A civil court-led attempt to end the dispute between thecontrolling shareholders of Usinas Siderúrgicas de Minas Gerais SA, and TechintGroup, failed after representatives abandoned a hearing withoutreaching an agreement. The court must issue a ruling, although the date hasn'tbeen set, daily Valor Econômico reported.

* The Federal Public Ministry of Amazonas state on July 11recommended environmental regulator Ipaam to cancel the license granted toPotássio do Brasil, a subsidiary of Brazil Potash Corp., for operations in the Autazesregion because the permit lacked prior consultation process with localindigenous communities, online daily Acrítica reported.

* Glencore plc's A$1 billion Hunter Valley coal trainnetwork has reportedly received bids from Aurizon, Asciano's Pacific National,and U.S.-listed Genesee & Wyoming, as well as infrastructure players, The Australian Financial Review wrote.

* AguiaResources Ltd.said that an optimized preliminary economicassessment on its TresEstradas phosphate project in Brazil a post-tax net present valueof US$400.0 million, using a 7.5% discount rate, and an internal rate of returnof 43%.

* AlcoaInc.'s second-quarter net income totaled US$135 million or 9 cents per share,down from a year-ago net profit of US$140 million or 10 cents per share, withthe company's revenue for the period sliding down 10% year over year to US$5.3billion. Alcoa expects to generate total cash proceeds of US$1.2 billion thisyear from sales of non-essential assets, of which US$815 million has beenreceived.

* AluminumCorp. of China, or Chinalco, the parent of , orChalco, achieved an operating profit of 330 million Chinese yuanfor the first half of the year, registering the best first-half performance inthe past five years, according to the state-owned Assets Supervision and AdministrationCommission.

* In a positive profit alert, expects tobook a net profit ofbetween 350 million and 520 million Chinese yuan for the first half,attributable to the company's optimized product portfolio, cost-cuttingstrategy and reduction in excessive production capacity.

* Hebei Province, China's major steel production base, has launched a campaign to cut excessive steel production capacity.The government has arranged for the demolition of 35 production facilitiesacross 35 steel-related companies. Among the steel mills affected, a total ofsix blast furnaces with 3.12 million tons of iron production capacity and eightconverters with 4.86 million tons of capacity have been removed.

* Two sources told Reuters that will 600,000 tonnes of potash toIndian Potash Ltd. atUS$227 per tonne, the same decade-low price the Indian firm was able to securefor its supply deal with JSC Belarusian Potash Co. According to the newswire,ICL's move could pressure other producers such as , , and 'sCanpotex Ltd. unitinto considering offering similar prices.

* In a bid to protect local production, Mexico extended a tariff on the imports of steel carbon pipes fromthe U.S. as well as enforced a separate tariff on ferromanganese, a steeldeoxidizer, imported from South Korea, Reuters reported.

* S&P Global Ratings affirmed Norwegian aluminumproducer Norsk HydroASA's credit rating at BBB/A-2 with a stable outlook, as thecompany continues to maintain a "prudent financial policy and a verycomfortable liquidity position." The liquidity of Norsk Hydro has been revisedto exceptional from strong.

* The Singapore branch of BNP Paribas has for winding up and for theappointment of joint official liquidators to the miner. The bank's applicationto the Grand Court of the Cayman Islands follows the miner's recentannouncement that it has gained the support of noteholders for its proposedrestructure of US$600.0 million of debt.

* Sources confirmed that liquidator Korda Mentha is looking to finalize the 2015 agreement for the sale ofSherwin Iron Ltd.'sRoper Riveriron ore project in the Northern Territory to a buyer which is believed to beAl Rawda Resources Australia, The Sydney Morning Herald wrote.

* India has asked the regulators to halt approvals formaintenance and repair of the plants which are older than 25 years as thecountry seeks to modernize its thermal coal plants, Bloomberg News reported, citing the coal and power minister, Piyush Goyal.

SPECIALTY

* Russia raised 52.2 billion Russian rubles, or US$813million, from the sale of its 10.9% stake in diamond miner , Reuters reported. According to Economy Minister Alexei Ulyukayev,foreign investors picked up about 60% of the shares offered. Following thestake sale, the government is expected to kick off a wider privatizations drivethis year, according to senior government officials.

* PremierAfrican Minerals Ltd. has completedthe modifications to a plant at its 49%-owned RHA tungsten project in Zimbabwe, with theplant expected to start operations later during the week.

INDUSTRY NEWS

* The U.K.'s vote to leave the European Union continued toweigh on the globaleconomy in the week to July 8. Metals widely gained ground on thebetter-than-expected job data, which projected growth in the economy and metalsdemand.

* Brazil's Environment Ministry is working on a proposal tobetter regulate environmental licensing in Brazil, accordingto documents accessed by Valor Econômicoexclusively. The proposal sets new deadlines and states that regulator Ibamawill have the final word in the process, among other changes.

* In a recently released note, Citigroup Inc. said it isbullish on the outlook for commodities in 2017 citing the fading Brexit impactand growing global raw material demand, bolstered by U.S. and China, BloombergNews reported.

S&P Global Ratings and SNL Metals & Mining areowned by S&P Global Inc.

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