TOP NEWS
Rio Tinto declares US$1B special dividend; H1'19 earnings down 6% YOY
Rio Tinto will distribute a dividend of US$3.5 billion, comprising of an interim dividend of US$2.5 billion and a US$1.0 billion special dividend. Net profit in the first six months of the year 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 US$2.14B in write-downs for Samarco, Feijao
Vale SA swung to a second-quarter loss of US$133 million, or 3 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 this 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 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.
DIVERSIFIED
* Rio Tinto is expected to return up to US$4 billion to investors upon the release of its first-half earnings, but the mining major is torn on whether to launch a share buyback as it may force top shareholder Aluminum Corporation of China Ltd. to sell stock, The Wall Street Journal reported. Chinalco's 14.5% stake is capped by Australian regulators at 15%, the report said.
BASE METALS
* Turquoise Hill Resources Ltd. slipped into the red in the second quarter with a net attributable loss of US$446.5 million, or 22 cents per share, from a year-ago profit of US$171.3 million, or 9 cents per share, 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 by 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 the development of 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 against 92,000 tonnes of zinc in 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, with funds generated to be used towards the continued refurbishment and ramp-up of the Century zinc mine in Queensland, Australia.
* Peako Ltd. reached a revised agreement with Sandrib Pty Ltd. to an 85% interest in the Eastman copper project in Western Australia, from 60% previously.
* 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.
PRECIOUS METALS
* AngloGold Ashanti Ltd. expects headline earnings in the range of US$111 million to US$129 million for the six months ended June 30, increasing by 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 has 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 net earnings of US$23.6 million, or 6 cents per share, from a year-ago loss of US$8.9 million, or 2 cents per share. Consolidated gold production in the second quarter 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, or 4 cents per share, from a year-ago profit of C$511,000, or nil per share.
* Northern Star Resources Ltd.'s guidance for its fiscal 2020 was pegged at between 800,000 ounces to 900,000 ounces of gold, at an all-in sustaining costs range of A$1,200 per ounce to A$1,300 per ounce. The Australian miner also set aside a budget of A$76 million in exploration.
* While Kirkland Lake Gold Ltd. posted a weaker second quarter, the company's especially strong first-quarter results helped achieve a record half-year performance.
* Tharisa PLC received board approval for the construction of a process plant located 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.
* Resources & Energy Group Ltd. granted Sulphide-X unit Bullfinch One an option to acquire up to a 75% stake in the Radio 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
* Former China Zhongwang Holdings Ltd. President and Chairman Liu Zhongtian was indicted by U.S. federal prosecutors for allegedly smuggling large amounts of extruded aluminum to evade US$1.8 billion in tariffs imposed in 2011, Reuters reported.
* Nippon Steel Corp. booked an attributable profit of ¥33.33 billion in the first quarter of its fiscal 2019, plummeting 61.0% from ¥85.40 billion a year ago. Revenue came in 4.3% lower at ¥1.522 trillion.
* Outokumpu Oyj's stainless steel deliveries in the second quarter totaled 584,000 tonnes, down from its year-ago quarter 668,000 tonnes. Net earnings plummeted to €6 million, or 1 cent per share, from €25 million, or 6 cents per share.
* Warrior Met Coal Inc. reported second-quarter net income of $125.5 million, or $2.43 per diluted share, compared to net income of $91.3 million, or $1.72 per diluted share, in the second quarter of 2018.
* NACCO Industries Inc.'s consolidated net income totaled $8.0 million, or $1.14 per diluted share, during the second quarter, an increase from $6.4 million, or 92 cents per diluted share, in the year-ago period.
* Alcoa Corp. expects to book third-quarter charges of about US$135 million, or 73 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 3,163 tonnes. Average realized price grew 14% yearly to US$27.69 per pound.
* Another shareholder in Energy Resources of Australia Ltd., Zentree Investments, accused Rio Tinto of plotting a takeover after the mining major urged the company to launch an equity raising to fund cleanup costs at the Ranger uranium mine in Australia's Northern Territory, The Australian Financial Review reported.
* 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.
* 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 a five-year annual supply of 50,000 tonnes of lithium concentrate from the Altura lithium mine in Western Australia.
INDUSTRY NEWS
* Chile 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.