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BHP to distribute record FY'19 dividend; Zhongjin Gold's H1'19 earnings fall YOY

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BHP to distribute record FY'19 dividend; Zhongjin Gold's H1'19 earnings fall YOY

TOP NEWS

BHP to distribute record dividend in FY'19 as profit surges 124% on tax reversals

BHP Group will distribute a fully franked final dividend of 78 cents per share in the second half, in line with expectations, for a record total dividend of US$2.35 per share for fiscal 2019. Attributable net profit for fiscal 2019 jumped 124% to US$8.31 billion, or US$1.60 per share, from US$3.71 billion, or 69.6 cents per share. The increase was attributed in part to the reversal of the provisions related to global taxation matters that were resolved over the year.

Zhongjin Gold's H1'19 earnings down 41% YOY as China tightens grip on pollution

Zhongjin Gold Corp. Ltd.'s net profit attributable to shareholders in the first six months dropped 41% year over year to 73.4 million Chinese yuan. Refined gold production in the half fell 10.7% to 33.1 tonnes and smelted gold production fell 13.7% to 17.9 tonnes, on a yearly basis. The company said its gold production in the first half was hurt as some of its operations were ordered to be suspended due to tighter environmental regulations in China.

S&P downgrades thyssenkrupp's long-term rating to BB-

S&P Global Ratings downgraded the long-term rating on German steelmaker thyssenkrupp AG to BB- from BB, and affirmed its B short-term rating. The rating agency expects the company to report negative cash flow of €1.1 billion for this year and for it to remain negative in 2020, due to weak conditions in the steel and automotive markets.

DIVERSIFIED

* BHP CEO Andrew Mackenzie believes the miner will "survive and prosper" through the U.S.-China trade war amid what he sees as a rising tide of nationalism and governments interfering in global trade flows. Mackenzie said that while BHP continues to enjoy strong sales to China, there is "no doubt" that the U.S.-China relationship continues to put a dampener on the prospects for world economic growth, and "ultimately will impact the demand for our products."

* Prophecy Development Corp. formed new subsidiaries Silver Elephant Mining Corp. and Asia Mining Inc. to allow the potential spinoffs of the company's Pulacayo-Paca silver project in Bolivia and the Ulaan Ovoo and Chandgana coal mines in Mongolia. Prophecy also plans to spin out the Gibellini and Louie Hill vanadium projects in Nevada into its Nevada Vanadium Mining Corp. unit.

* PJSC Norilsk Nickel Co.'s Norilsk smelter complex in Russia and a town in South Africa's eastern coal mining province have the highest sulfur dioxide emissions in the world, Reuters reported, citing NASA satellite data.

BASE METALS

* Workers at Sumitomo Corp.'s San Cristobal zinc-silver-lead unit in Bolivia's Potosí region started an indefinite strike Aug. 18 over unpaid bonuses and other labor demands, union officials said, daily Página Siete reported.

* Western Areas Ltd. invited 19 parties to tender for new nickel off-take agreements as previous agreements with BHP unit BHP Nickel West and China's largest stainless steel maker Tsingshan Holding Group Co. Ltd. are set to expire in early 2020, The Australian Financial Review reported. The company is favoring short-term deals as it expects nickel prices to continue climbing due to demand fueled by producers of batteries for electric vehicles.

* BHP's Escondida copper mine in Chile submitted for approval the environmental declaration for a project which includes the installation and operation of a new pipeline to transport tailings from the mine's concentrator plant to the Laguna Seca tailings deposit, mining magazine Minería Chilena reported. The project will require an investment of US$90 million.

* Power Metal Resources Plc completed its strategic and operational review as well as all key restructuring activities. The company plans on remaining focused on large scale metal discoveries with a focus on nickel, copper and cobalt. The company will continue exploration in Botswana, Cameroon, Tanzania and the Democratic Republic of Congo.

* Clive Palmer's lawyers asked Australia's High Court to dismiss the trial over Queensland Nickel Pty. Ltd.'s debts as he refused to pay A$10 million in fees to liquidators, The Australian Financial Review reported.

* Transition Metals Corp. said North American Palladium Ltd. completed the stage one earn-in for a 51% stake in the Sunday Lake nickel joint venture in Ontario.

* Palladium One Mining Inc. acquired through staking the Shabotik zone near its Tyko nickel-copper-platinum group metals project in Ontario.

PRECIOUS METALS

* An independent preliminary economic assessment for Barkerville Gold Mines Ltd.'s Cariboo gold project in British Columbia outlined a net present value, discounted at 5%, of C$402.2 million, a 28.1% internal rate of return and a 3.1-year payback period.

* Rubicon Minerals Corp.'s preliminary economic assessment for the Phoenix gold project in Ontario outlined a posttax net present value, discounted at 5%, of C$135.2 million, a 40.2% internal rate of return with a 3.9-year payback period.

* Avesoro Resources Inc. received a nonbinding expression of interest from its 72.9% shareholder, Avesoro Jersey Ltd., to acquire all of the shares it does not own at a price of £1 per share. The proposal has support of an additional 12.9% of the shareholders.

* Rex Minerals Ltd. completed the acquisition of Hog Ranch Group Pty. Ltd., securing the Hog Ranch gold project in Nevada.

* Calidus Resources Ltd. launched a 15,000-meter drilling campaign to increase the mine life of its flagship Warrawoona gold project in Western Australia.

* Lydian International Ltd. said Armenian Prime Minister Nikol Pashinyan allowed the company to proceed with the development of the Amulsar gold project.

* Sailfish Royalty Corp. completed its previously announced acquisition of Terraco Gold Corp.

* Gandel Metals Pty. Ltd. issued an off-market takeover bid to acquire all the shares of Alliance Resources Ltd. at 14 Australian cents each in cash, valuing the target at A$21.4 million.

* Fortuna Silver Mines Inc. halted operations at the San Jose silver-gold mine in Mexico after an underground scooptram driver died in an accident. There were no other injuries.

* A worker died at Harmony Gold Mining Co. Ltd.'s Doornkop gold plant in South Africa due to a rail locomotive accident.

* FireFox Gold Corp. expanded its portfolio in Lapland, Finland, with the acquisition of the 983.9-square-kilometer Kierinki gold project.

* Tempus Resources Ltd. entered a binding heads of agreement to acquire Sona Resources Corp., which holds the Blackdome-Elizabeth gold project in southern British Columbia.

* Blue Lagoon Resources Inc. signed a definitive agreement to acquire ASIC Mining Inc. and its option to own the Pellaire gold project in British Columbia.

* 66 Resources Corp. entered a nonbinding letter of intent to acquire Vancouver-based esports startup Good Gamer Corp. for 7 million shares.

* Papua New Guinea is developing policies to keep at least 30% of the gold it currently exports to improve its economy, Reuters reported, citing Wera Mori, the country's commerce minister.

BULK COMMODITIES

* Brazil's securities regulator CVM launched another investigation into executives of Vale SA on whether they breached their fiduciary duties related to the Feijao dam disaster, Reuters reported.

* U.S. Steel Corp. plans to temporarily lay off fewer than 200 workers following its decision to stop production at its Great Lakes facility in Michigan, Reuters reported, citing a company filing with the state.

* Chinese financial institutions issued over US$1 billion in green financing to 13 coal-related projects during the first half, Reuters reported, citing financial data provider Wind. The projects included power plants fueled by coal or coalbed methane as well as coal-to-chemical projects, the newswire added.

* Daye Special Steel Co. Ltd.'s first half attributable net profit climbed 15% year on year to 294.0 million Chinese yuan, as sales revenue rose 4% to 6.39 billion yuan.

* PTT Global Management Co. Ltd. subsidiary Sakari Resources Ltd. acquired 100% of the common shares of Indonesian coal mining companies PT Sentika Mitra Persada and PT Multiara Kapuas for about US$11.7 million.

* An Australian federal court ordered a traditional owner of Adani Enterprises Ltd.'s Carmichael coal project site in Queensland to pay A$600,000 in legal costs for his several failed cases against the proposed mine, Australian Mining reported.

* CCU Coal and Construction LLC, which purchased former coal producer Westmoreland Coal Co.'s Ohio assets during its bankruptcy process, is seeking a federal lease on about 432 acres in Ohio containing an estimated 1.4 million tonnes of subsurface coal reserves, according to a notice in the Federal Register.

* Tokyo Steel Manufacturing Co.Ltd. will not change its steel product prices in September due to high local inventories and a weaker overseas market, Reuters reported.

SPECIALTY

* PJSC Alrosa increased its full-year diamond production forecast to 38.5 million carats from 38 million carats, and said it expects sales of 32 million carats to 33 million carats this year. The company's net profit in the second quarter dropped 47% year over year to 13.4 billion Russian rubles. Revenue in the quarter declined 21% year over year to 57.4 billion rubles as diamond sales slipped 8% to 8.3 million carats.

* Kenmare Resources PLC declared a maiden dividend of 2.66 US cents per share as profit attributable to shareholders for the first half slid to US$21.9 million, from US$26.4 million a year ago. Revenue in the six months declined to US$122.7 million from US$140.1 million.

* Hastings Technology Metals Ltd. was granted the environmental permit for the Yangibana rare earths project in Western Australia. The grant allows the company to move into the next stage and take the project into construction targeted for year-end commencement.

* Marenica Energy Ltd. entered an agreement with the applicant of uranium-prospective exclusive prospecting licence in Namibia allowing the company to acquire 95% of the tenement when it is granted. The company will provide technical expertise and funding for the tenement, but there is no up-front payment.

* Altura Mining Ltd. expects to produce about 45,000 wet tonnes in the September quarter from its namesake lithium project in Western Australia, compared to 42,402 wet tonnes produced in the June quarter.

* Broken Hill Prospecting Ltd. formed a U.S.-based subsidiary La Paz Rare Earth LLC to acquire and develop the La Paz rare earth project in Arizona.

* OCP Asia and Keshik Capital Pte. Ltd. agreed to take a 10% stake each in Alita Resources Ltd. by participating in the lithium miner's A$60 million recapitalization, The Australian Financial Review's Street Talk wrote.

* Plateau Energy Metals Inc.'s Macusani Yellowcake S.A.C. unit filed another appeal with Peru's mining council to reverse the cancellation of 32 uranium concessions. The appeal is now focused on facts and arguments that the company believes were ignored by the council in its previous deliberations.

* Navajo Transitional Energy Co. LLC completed an investment in USA Rare Earth LLC, which has an option to acquire up to 80% of the Round Top rare earths project in Texas.

* Rock Tech Lithium Inc. is conducting a tradeoff study of electricity supply options for its Georgia Lake lithium project in Ontario.

* Premier African Minerals Ltd. expects the electrification of its 49%-owned RHA tungsten mine in Zimbabwe to be finished by late November, as confirmed by the Zimbabwe Electricity Supply Authority.

INDUSTRY NEWS

* Western Australia's Mines and Petroleum Minister Bill Johnston announced a new guidance for the rehabilitation of Western Australian mine sites, which outlines environmental criteria that mine operators can use to demonstrate they have successfully and sustainably rehabilitated their site after mining.

* Mining services company Ausdrill Ltd. will adopt a new brand and identity, Perenti, and will list under the trading name of Perenti Global.

* TÜV SÜD AG will no longer conduct safety assessments of mining dams following the fatal tailings dam breach at Vale's Feijao iron ore mine in January, Reuters reported, citing TÜV SÜD CEO Axel Stepken.

* Heavy mining equipment maintenance contractor Mader Group Ltd. raised A$50 million at A$1 per share from its initial IPO and will list on the ASX in September with a A$200 million market capitalization, The Australian Financial Review's Street Talk wrote.

* Before Mexico reverses a new policy to stop issuing new mining concessions, its government wants to ensure existing ones are actively operated, review a backlog of claim applications and implement policies on indigenous consultation, Francisco Quiroga, Mexico's undersecretary of mining, told S&P Global Market Intelligence in an exclusive interview.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.

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