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Glencore's earnings plummet; Semafo cuts gold output guidance


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Glencore's earnings plummet; Semafo cuts gold output guidance


Glencore's H1'19 earnings down 92% YOY on lower commodity prices, African impairments

Glencore PLC's attributable net income for the first half plummeted 92% year over year to US$226 million, or 2 cents apiece, mainly due to lower average commodity prices and impairment charges at its African copper and Chad oil portfolios. Total revenue in the six months slipped to US$107.10 billion, from US$108.55 billion a year ago. The company will shut down the Mutanda copper-cobalt mine in the Democratic Republic of the Congo at the end of the year due to slumping cobalt prices and rising costs, the Financial Times reported, citing a company letter to employees.

Semafo cuts FY'19 gold production guidance; Q2 output, sales swell YOY

Semafo Inc. lowered its full year gold production guidance following a pit-wall failure at its Mana gold operation in Burkina Faso. The company now expects to produce 350,000 to 380,000 ounces of gold in the year, compared to the previous guidance of 390,000 to 430,000 ounces. Gold production in the second quarter surged 118% year over year to 99,800 ounces.

Mosaic swings to Q2 loss as wet weather weighs on sales volumes

Mosaic Co. swung to a net loss of US$233.1 million, or 60 cents per share, for the second quarter, down from a year-ago net profit of US$67.9 million, or 18 cents per share, due to wet weather in the Midwest weighing on its North American spring fertilizer sales volumes and phosphate margins. Mosaic said this "unprecedented" wet weather in the U.S. Midwest should drive strong demand for nutrients into the fall season this year and beyond after relatively weak demand in the spring season.


* Financial services company Jefferies rerated Rio Tinto, BHP Group, Fortescue Metals Group Ltd., Peabody Energy Corp. and Arch Coal Inc. stocks from "buy" to "hold" and cut its iron ore fines price forecast for this year by more than 10% to US$88 per tonne, citing potential fallout from the ongoing trade war between the U.S. and China.


* Codelco agreed to divest its 37% stake in the GNL Mejillones natural gas plant in Chile for US$193.5 million to the Ameris Capital AGF fund, Reuters reported.

* Hudbay Minerals Inc. terminated an agreement to earn a 70% interest in the Llahuin copper project in Chile from Southern Hemisphere Mining Ltd.

* Katanga Mining Ltd. lowered its full-year production guidance to 235,000 tonnes of copper and 14,400 tonnes of cobalt, from the previous guidance of 285,000 tonnes of copper and 26,000 tonnes of cobalt, following an operational review aimed at improving the company's prospects.

* Revelo Resources Corp. is optioning its 14,000-hectare Arrieros copper project in Chile after it was separated from the original 30,000-hectare Montezuma project, the remainder of which is optioned by BMR Group PLC.


* B2Gold Corp. achieved record quarterly gold production in the second quarter of 246,020 ounces, a 2% increase year over year and 8% over budget.

* Premier Gold Mines Ltd. produced 16,450 gold ounces and 51,792 silver ounces in the second quarter, compared to 16,007 gold ounces and 51,746 silver ounces a year ago.

* Pure Gold Mining Inc. approved a decision to construct the Madsen Red Lake mine after closing a US$90 million project financing package with Sprott Resource Lending Corp., which will fully fund the development costs for an underground mine at the company's Madsen gold project in Ontario.

* Shanta Gold Ltd. entered into a nonbinding term sheet with an East African conglomerate for an unsecured loan facility of US$10 million. The facility is conditional on the company raising at least US$15 million in its planned IPO on the Dar es Salaam stock exchange in Tanzania.

* Kirkland Lake Gold Ltd. is on the hunt for "cash-hungry development assets" to add to its portfolio of high-grade mines in Australia and Canada, The Australian reported, citing Ian Holland, the company's vice-president of Australian operations.

* Blue Lagoon Resources Inc. signed a letter of intent to acquire ASIC Mining Inc., holder of an option to purchase the Pellaire gold property in British Columbia.

* Erdene Resource Development Corp. secured the mining license for its Bayan Khundii gold project in Mongolia, and will now focus on completing a pre-feasibility study and obtaining environmental approvals.

* Dozens were injured after local residents and workers clashed at Zhong Ji Mining's Solton-Sary gold mine in Kyrgyzstan, Radio Free Europe/Radio Liberty reported.


* The U.S. Energy Information Administration expects the coal industry to produce 687.9 million tonnes this year, up from the 684 million tonnes it forecast in July. Output in 2020 is expected to total 651 million tonnes, a 1.8% increase from the previous forecast of 639.4 million tonnes.

* Vedomosti reported that PJSC Uralkali shares climbed 17% since the start of trading on Aug. 6. Investors complained to the Central Bank of Russia about the low price of a forced repurchase of Uralkali shares, Kommersant and Vedomosti reported.

* Kommersant reported that in the first half of the year, EuroChem Group AG increased revenue by 14% to US$3 billion and EBITDA by 21% to US$819 million. The company had free cash flow of US$136 million as fertilizer sales rose in almost all segments.

* S&P Global Ratings assigned a BB+ issue-level rating and 1 recovery rating to SunCoke Energy Inc.'s new US$400 million revolving credit facility due in 2024.

* Vedanta Ltd. aims to double alumina capacity at its refinery in India's Odisha state to 4 million tonnes over the next 2.5 years, Bloomberg News reported, citing CEO Srinivasan Venkatakrishnan. The company also plans to boost aluminum smelter production capability by 30% to 3 million tonnes at an "all-in cost" of less than US$1,500 per tonne.

* Glencore may be forced to sell coal from its Wambo open-cut mine in New South Wales, Australia, only to signatories of the Paris Agreement on climate change under a proposal by the state's independent planning commission, The Guardian reported. The plan was opposed by Glencore and joint venture partner Peabody Energy Corp., the report said.

* Tata Steel Ltd. said that a US$327 million sale of two units to China's HBIS Group Co. Ltd. fell through after the deal was not approved by the Hebei province government.

* Fortescue is poised to boost annual shipments by 22 million tonnes by 2022 after finding space at Port Hedland for its Iron Bridge magnetite project in Western Australia, The Australian Financial Review reported. Meanwhile, the company increased its exploration budget for its fiscal 2020 to A$140 million from A$96 million a year ago as it focuses on product diversification to bring growth, Mining Weekly wrote, citing CEO Elizabeth Gaines.

* The Guinean government extended the deadline to Aug. 19 for companies to request tender documents for blocks one and two of the Simandou iron ore deposit, a move that the country hopes will boost competition, Reuters reported, citing Sadou Nimaga, the mine ministry's secretary-general.

* Despite China's longer-term climate goals of cutting coal consumption to reduce smog and greenhouse gas emissions, coal mine construction approvals jumped 5x in the first half to 141 million tonnes of new annual coal production capacity, Reuters reported, citing National Energy Administration approval documents.

* Cumberland Resources Ltd. founder Richard Gilliam said he will donate US$1 million to workers of bankrupt Blackjewel LLC who are protesting over unpaid wages, Bloomberg Law wrote.


* Lynas Corp. Ltd. said the Malaysian government has indicated that a decision about the renewal of the operating licence 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.

* Peru's mining council dismissed Plateau Energy Metals Inc.'s appeal to suspend a resolution of Institute of Geology, Mining and Metallurgy, which recommended canceling the validity of 32 of the company's concessions due to late receipt of annual concession payments.

* Tronox Holdings PLC slipped into the red to a second-quarter attributable net loss of US$62 million, or 41 cents per share, from a year-ago profit of US$36 million, or 29 cents per share, on US$100 million in charges primarily related to the company's acquisition of the titanium dioxide business of The National Titanium Dioxide Co. Ltd., or Cristal.

* For the half-year ended June 30, Galaxy Resources Ltd. flagged a noncash impairment of between US$150 million and US$185 million related to an inventory review and mine development costs at Mount Cattlin lithium project, as well as deferred tax losses.

* Livent Corp. reported a 59% yearly fall in second-quarter net income to US$15.5 million, or 11 cents per share, from US$38 million, or 31 cents per share. Revenue rose 6% to US$114.0 million from US$107.9 million.

* Ur-Energy Inc. implemented cost-cutting measures at its Lost Creek uranium facility in Wyoming, citing the recent decision by U.S. President Donald Trump to not impose quotas for domestic uranium production.

* A Sierra Leone High Court judge deferred until the end of September the hearing of a lawsuit seeking US$288 million in damages against OCTÉA Mining Ltd. and related companies for allegedly polluting water resources near the Koidu diamond mine. Octea denied the accusations, the report said.

* China Magnesium Corp. Ltd. is selling its 91.25% interest in Shanxi Yushun Magnesium Co. Ltd., which owns the Pingyao magnesium-lithium plant in China, to Worldcom Parkway International Trade (Tianjin) Co. Ltd.


* Peru is preparing to make revisions to its mining laws but it is unlikely to make drastic changes on mining taxes, Reuters reported, citing Finance Minister Carlos Oliva.

* The London Metal Exchange plans to double the duration of its closing open-outcry trading sessions for all metals to 10 minutes after volumes increased during a three-month trial, Reuters reported, citing a source with direct knowledge of the matter.

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The item referencing Suncoke Energy published on Aug. 7, 2019, contained erroneous information and was updated following publication.