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Barrick Gold swings to net loss in Q4'17


Barrick Gold swings to net loss in Q4'17

Barrick Gold Corp. reported a net loss of US$314 million in the fourth quarter of 2017, swinging from a year-ago profit of US$425 million. The company's gold and copper production slid to 1.34 million ounces and 99 million pounds, respectively, compared to 1.52 million gold ounces and 101 million pounds of copper. The company expects to produce between 4.5 million and 5.0 million ounces of gold and between 385 million and 450 million pounds of copper in 2018.

South32 posts 12% YOY drop in H1'18 profit

South32 Ltd. booked a net profit of US$543 million in the first half of its fiscal 2018, down 12% year over year, although revenue grew 8% to US$3.49 billion. The company declared an interim dividend of 4.3 cents per share fully franked for the first half, up 19% on a yearly basis, and a special dividend of 3.0 cents per share.

Report: Some US banks hesitant to work with En+ on US$1B share sale

Russia's En+ Group plc tapped foreign banks for the sale of US$1 billion of shares in the company, Reuters reported, citing sources. The company manages the metals and energy assets of Russian businessman Oleg Deripaska, who was included in a U.S. Department of the Treasury list of Russian oligarchs it considered close to the Kremlin. According to the sources, some U.S. banks that worked with En+ on its IPO in November 2017 are reluctant to participate in the share sale due to the inclusion.


* Teck Resources Ltd.'s net profit attributable to shareholders in the fourth quarter of 2017 increased to C$760 million, up from the year-ago profit of C$697 million. Revenue, meanwhile, declined to C$3.21 billion from C$3.56 billion a year ago, due to lower sales volumes and prices at the steelmaking coal business. In the full year, Teck's profit attributable to shareholders surged to C$2.51 billion, from C$1.04 billion a year ago. Full-year revenue for the company swelled to C$12.05 billion, from C$9.30 billion in 2016, on improved commodity prices.


* Sherritt International Corp. reduced its debts by C$121.2 million through a recently closed Dutch auction tender offer to purchase for cash debentures and notes due in 2021, 2023 and 2025.

* MaxTech Ventures Inc. agreed to strategic cooperation with Kiuso Corp. of Toronto and Kabwe, Zambia, allowing Maxtech to expand into other battery metals.

* Tethyan Resources Plc signed a binding letter of intent to acquire Balkan Minerals Ltd.'s Taor doo unit, which owns two exploration licenses adjacent to Tethyan's optioned Suva Ruda license within Serbia's historical Raška lead and zinc mining district.

* Great Atlantic Resources Corp. signed a letter of intent to option a 75% stake in the Kagoot Brook cobalt project in New Brunswick to Explorex Resources Inc.

* S&P Global Ratings lifted its long-term issuer credit rating on First Quantum Minerals Ltd. to B from B-, with a stable outlook. The move reflects the expectation that the company's earnings will improve significantly this year on the back of higher copper prices and it will continue material deleveraging in the coming years.

* Chile's regional government of Coquimbo granted Antofagasta Plc environmental approval for a major US$1.1 billion revamp of its Los Pelambres copper mine in the country, Reuters reported.

* Boliden AB declared a total dividend of 14 Swedish kronor for 2017, as its net profit surged to 6.86 billion kronor in the year from 4.24 billion kronor in 2016. In the fourth quarter, net profit jumped to 2.25 billion kronor, compared to 1.83 billion kronor in the year-ago quarter. The company decided to expand its Kevitsa copper-nickel mine and Harjavalta copper-nickel smelter in Finland with a total investment of €125 million until 2020.

* Jinchuan Group International Resources Co. Ltd. halted half of the copper refining output at its plant in China's Gansu province due to a power transformer failure at the facility, Metal Bulletin wrote. The facility has a copper smelting capacity of 400,000 tonnes per year and refining capacity of 400,000 t/y.

* EMR Capital said it plans to double production at the Lubambe copper mine in Zambia to over 40,000 tonnes in the next two years after it completed the acquisition of a majority stake in the asset for US$100 million, Reuters reported.


* Gold Fields Ltd. declared a final dividend of 50 South African cents per share, taking the total dividend for 2017 to 90 cents apiece, compared to 1.10 South African rand per share in 2016. The company swung to a net loss of US$35 million, or 4 cents per share, in 2017, from year-ago net earnings of US$162.8 million, or 20 cents per share, and recorded an impairment of US$278 million in the year at its South Deep mine in South Africa. Revenue for the gold miner climbed to US$2.81 billion in the year, from US$2.75 billion a year ago.

* Kinross Gold Corp. swung to a net profit of US$217.6 million in the fourth quarter of 2017, from a year-ago loss of US$116.5 million. Revenue from metals sales dropped to US$810.3 million from US$902.8 million in the year-ago period.

* Goldcorp Inc. posted net earnings of US$242 million in the fourth quarter of 2017, up from US$101 million booked in the same year-ago quarter. Gold production slid to 646,000 ounces from 761,000 ounces in the prior-year quarter.

* Agnico Eagle Mines Ltd.'s net income slumped to US$35.1 million in the fourth quarter of 2017, from US$62.7 million in the year-ago period. Payable gold production in the quarter also declined to 413,212 ounces from 426,433 ounces in the year-ago quarter.

* Evolution Mining Ltd. posted a 45% year-over-year increase in profit before tax to A$175.1 million, driven by stronger sales and lower unit costs that were offset by a lower achieved gold price.

* Palisade Business Consulting Pty. Ltd.'s Jack James and Paula Smith were appointed voluntary administrators of cash-strapped gold miner Central Asia Resources Ltd. Palisade said that Central Asia Resources' creditors are planning a second meeting to decide on the future of the company, which was already suspended from official quotation on the ASX.

* Alliance Mining Corp.'s shares rose by over 11% in Toronto on Feb. 14 after the company announced the purchase of net smelter rights on the Cud 1 and Cud 2 claim blocks at the Red Rice Lake gold property in Manitoba.

* Gowest Gold Ltd. entered into an agreement to sell gold concentrate to be produced from its Bradshaw gold project in Ontario to China-based Shandong Humon Smelting.

* Maple Gold Mines Ltd. released an updated resource estimate for its Douay gold project in Quebec, outlining indicated resources containing 479,000 ounces of gold within 9.4 million tonnes at 1.59 g/t of gold. Inferred resources at Douay are estimated to contain 2.8 million ounces of gold within 84.2 million tonnes at 1.02 g/t of gold. The analysis uses a cutoff of 0.45 g/t of gold and incorporates drilling completed in 2017.


* Adani Enterprises Ltd. is targeting mine acquisitions outside of Australia even as it struggles to develop its Carmichael coal mine in Queensland, Reuters reported. Rajendra Singh, COO of Adani's coal trading business, said the group already owns a mine in Indonesia and it is seeking more options there. "We're also keeping our eyes open for options in other areas like south African countries, countries like Russia," he added.

* Israel Chemicals Ltd.'s attributable net income in the last quarter of 2017 surged to US$155 million from US$32 million in the same period of 2016, though sales only rose to US$1.36 billion from US$1.34 billion a year ago. The company attributed the quarter's increased income to the recovery of the potash market, reduced expenses and its balanced business structure.

* JFE Holdings Inc. will spend more than ¥650 billion over the next three years to upgrade its domestic production facilities to increase productivity and competitiveness, Reuters reported, citing JFE Holdings President Eiji Hayashida.

* State-owned Steel Authority of India Ltd. is inviting expressions of interest for the sale of its alloy steels plant in Durgapur in the Indian state of West Bengal. The plant has the capacity to produce 2.5 million tonnes per year of liquid steel and 1.8 Mt/y of salable steel.

* Mongolian coal exports dropped 24.1% year over year in January to nearly 2 million tonnes due to supply disruptions at its border with China, Reuters reported, citing data published by Mongolia's National Statistics Office. The country's overall mineral exports fell 6.3%.

* ThyssenKrupp AG's net income attributable to shareholders in the first quarter of fiscal 2018 swelled to €78 million on the back of good operating performance, compared to €8 million in the year-ago quarter. The results were impacted by a decline in financial expenses, which was partially offset by a higher income tax expense.

* Kibo Mining Plc signed a memorandum of understanding with the Tanzania Electric Supply Co. for a power purchase agreement for its flagship 300-MW Mbeya coal-to-power project. Kibo Mining said Feb. 14 that it expects the agreement to be finalized by the end of the first quarter.

* The Queensland department of environment and science rejected New Hope Corp. Ltd.'s application to overturn a May 2017 court decision rejecting an environmental license for its New Acland coal mine stage-three expansion project in Australia. The company said it is "disappointed" by the rejection and is considering its options in response.

* IRC Ltd. crossed the 2.0 million-tonne milestone at the K&S mine for total iron production since the start of operations at the Russian mine.

* India plans to increase its coal output over the next few weeks after a significant increase in demand from power plants, Live Mint reported, citing India's coal minister, Piyush Goyal. State miner Coal India Ltd. had to slash production in 2017 due to lower demand from power plants.

* Creditors of Mechel PAO that were seeking repayments of US$ 1 billion in loans withdrew a lawsuit against the company, Vedomosti reported. Five out of 11 creditors abandoned their claims.


* Strandline Resources Ltd. more than doubled the contained mineral resource at its Tajiri mineral sands project in Tanzania and kicked off a scoping study. The JORC 2012-compliant estimate now stands at 147 million tonnes at 3.1% total heavy minerals, or THM, for 4.6 million tonnes of contained heavy minerals in the indicated category, up from 59 million tonnes at 3.7% THM, for 2.2 million tonnes of contained heavy minerals. The update is based on THM cutoff grades between 1.5% and 1.7%.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

The Daily Dose is updated as of 7 a.m. Hong Kong time, and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.