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- Barrick Chases Reko Cash, Marks Down Mali
Barrick Chases Reko Cash, Marks Down Mali
Nickel players rattle the tin, Franco-Nevada hits records all round on gold price run
The Pre-Start
Barrick delivered half-year operational cash flow of US$2.5B and free cash flow of US$770m on gold & copper sales of 770koz & 54kt (B.NY) Down marginally
Franco-Nevada hit a quarterly revenue record of US$369m with net income of US$247m, while paying a US$0.38/share dividend. It closed with US$1.1B in capital (FN.NY) Up marginally
Coronado reported a half-year net loss of US$172m, leaving it with US$238m in net debt, while it looks to strengthen liquidity and cut expenditure as weak coal prices hit earnings (CRN)
MAG Silver achieved quarterly silver equivalent production of 6.6Moz for free cash flow of US$92m, paying a US$0.20/share dividend (MAG.TO)
Godolphin upgraded Lewis Ponds resource to 470koz Au and 21Moz Ag at 5.01Mt Indicated and 4.82Mt inferred (GRL)
K92 produced 32.4 koz gold, 1.5Mlbs copper and 42.8 koz silver in the quarter, ending with record net cash of US$124m (KNT.TO) new 1.2 Mtpa expansion plant commenced commissioning
Ruffer emerged as an 8.8% shareholder in Alkane (ALK)
James Simpson has resigned as MD and CEO of Peel (PEX)
High Grade It
Iron ore rose after a Chinese consultancy said several steel mills were ordered to pause production over pollution concerns (Bloomberg)
Traders are bracing for lithium prices to spike this week after CATL suspended production at a major mine in China, unleashing a huge rally (AFR)
Workers at Russia's United Co. Rusal refinery in Guinea blocked a railway to stop alumina exports as they demanded better working conditions (Bloomberg)
Codelco's El Teniente partially resumed production after a fatal accident, but the newer sections may be out for longer, weighing on its debt (Bloomberg)
Mark Bristow said that the gold industry is awaiting clarity from the White House regarding potential U.S. tariffs on gold bars (Reuters), with Trump posting that “Gold will not be Tariffed!” (Mining.com)
Barrick's shares fell after it posted a net charge of $1B related to the seizure of its Loulo-Gounkoto gold complex by Mali’s military junta (Bloomberg)
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Wheelin’ n Dealin’
Mining services provider Thiess is eyeing an IPO as record gold prices drive industry boom and investors warm to coal-exposed companies (Australian)
The Sayona-Piedmont merger has been delayed as only 47% of PLL shares entitled to vote were present, short of the 50% required (SYA)
Rattlin’ the Tin
Centaurus is raising $17m at $0.36/sh plus one attaching option for every two new shares exercisable to $0.50/sh (CTM)
Newmont has priced its US$2B in notes previously announced, with maturities varying from 2029-2041 (NEM)
Barrick is seeking to raise up to US$3.5B in financing from the US and other international lenders to build Reko Diq after long-discussed funding from Saudi Arabia failed to materialise (FT)
Arafura stated that EFA has provided a non-binding conditional Letter of Interest relating to potential further investment to support Nolans (ARU)
Lifezone secured a US$60m bridge loan from Taurus to further its Kabanga Nickel project as its strategic process progresses in parallel (LZM.NY)
Asante Gold signed definitive agreements to unlock ~US$500m (debt, stream & equity) in financing proceeds (ASE.C) package includes substantial restructuring of its obligations to Kinross
Vanadium producer, Largo, has received a $6m secured working capital loan with a 6-month term (LGO.TO)
Word on the Decline
We think we will see the Wiluna gold mine come back to the market at some stage this financial year
After heading into voluntary administration in July 2022, by all accounts, the mine is making money from its operations today
Do you have some Word on the Decline? Reply to this email or shoot a message to [email protected] directly. We will always take your privacy seriously.
In the Weeds
Understanding Exploration Results (Sandstorm YouTube) A 6-min explain covering geometry, surveying, resource estimation etc
Mines, Markets & M&A forum debrief: deal innovation, alternative financing and acquisition-driven growth (Hamilton Locke)
Hedge funds’ big short smacked by lithium supply squeeze (AFR’s Chanticleer)
Today’s Top Tweet
Moz: “If MIN hits $60, the tat is real.”
Devil’s in the Detail
The two best undeveloped nickel sulphide projects in the world have embarked on financings in the last 24 hours. Both of them with “hooks” you wouldn’t ordinarily see if the market was different.
Centaurus’ $17m placement comes with attaching options
Lifezone: US$60m secured bridge finance facility for Kabanga (you’d want to hope the strategic process is successful!)
If this isn’t peak pessimism for nickel then we’ll be damned.
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