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- Goldies Run on A$4,000/oz Record
Goldies Run on A$4,000/oz Record
Shareholders warm to Ora Banda results, Proxy advisor says vote against WHC resolution
The Pre-Start
BHP’s quarterly results were broadly in line with expectations, with WAIO up 3% & copper production up 4% qoq. Guidance unchanged (BHP)
Ora Banda closed Sept with cash up $22m on the Q, after producing 25.5koz at an improved AISC of $2,285/oz. $23m was spent on growth capex (OBM) Up 7% in early trade
Adriatic appointed Laura Tyler as the permanent MD & CEO (ADT)
Genesis produced 36koz at an AISC of $2,628/oz. Stockpiles are now at 469kt. Cash advanced $4m to $178m, with $47m spent of growth & exploration (GMD)
De Grey closed with ~$828m in cash as it finalises its senior debt facility, while $170m of long lead items have been ordered (DEG)
AIC Mines delivered 3.2kt of Cu at an AIC of A$5.46/lb, producing $2.8m in net mine cashflow after capital. Eloise plant expansion is progressing (A1M)
IAMGOLD produced 68koz (100% basis) from Côté gold mine in the quarter and reported drilling extensions: 235m at 2.7g/t Au from 697m (IMG.T)
Silvercorp’s revenue lifted 26% to C$68 million in the September quarter (SVM.T)
Spartan Resources finished Q1 with $84m in cash (SPR)
Solgold provided an update on key developments at its Cascabel project (SOLG)
St Barbara shared drill results from Simberi, including a headline hit of 31m @ 6.1g/t from 35m (SBM) Up 10% this morning
Collins St has increased its stake in Barton Gold to 9% (BGD)
Sprott now owns 7.8% of Deep Yellow (DYL), 7.85% of Boss Energy (BOE) & 8.3% of Berkeley (BKY)
High Grade It
Whitehaven’s exec pay regime is too generous & should incur a 2nd consecutive strike at this year’s AGM, proxy adviser CGI Glass Lewis recommended (AFR)
The world’s 2 biggest iron ore suppliers, Rio Tinto & Vale, raised output of material last quarter, even as demand from China faces headwinds (Bloomberg)
'Worst deal ever': Wollemi Cap's Matt Kean blasted Origin's Eraring pact, while the former NSW Liberal treasurer also criticised the Oppositions nuclear plan (CB)
BHP received a last-minute fillip in its stoush with law firm Pogust Goodhead, whose $70b class action over the 2015 Brazilian dam collapse begins Monday (AFR)
A crisis in aluminium’s supply chain has triggered a blistering rally in alumina prices, setting up some ASX miners for elevated earnings (AFR) Alcoa up 8% today, S32 up 4%
China’s record-breaking run of aluminium output is likely to extend through the rest of the year as supply risks dissipate at a key production base (Bloomberg)
Uranium stocks fell as Kazatomprom agreed asset sale with China’s CNNC & CNUC (CB)
Chinese stocks fell to the verge of a correction in a sign of growing disappointment over the pace of stimulus rollout (Bloomberg)
Alcoa has renewed its alumina supply contract with Aluminium Bahrain (Alba), one of the largest aluminium smelters in the world, with WA product (AM)
Rio announced it would launch a review of its “future product strategy” in iron ore as it juggles a generational shift at its Aussie mines, new African supply, and steel mills’ desire to cut carbon emissions (AFR)
ASX lithium players risk missing out on an expected wave of M&A activity after Rio’s bid for Arcadium showed that junior producers could be targetted (AFR)
Wheelin’ n Dealin’
General Motors will acquire a 38% stake in Thacker Pass for US$625m in cash and letters of credit (Mining.com, LAC.T) Lithium Americas shares jumped 20%. The JV deal replaces the $330m in second tranche equity investment from GM
Aurum secured 17.8% of takeover target Mako Gold via pre-bid acceptance agreements with Dundee Resources, Delphi, Sparta, Geodrill & David Harper (MKG)
Compulsory acquisition of Zeta Resources by its major shareholder UIL has completed, with Zeta due to come off the ASX boards by end of week (ZER)
Koonenberry Gold will buy the Enmore Gold project off GUE for 35m shares (trading at 1.5c), & simultaneously purchase the Lachlan projects from Gilmore Metals for 95m shares. KNB will raise $4.5m from Lion Selection Group & Lowell Resources Fund (KNB)
Siren Gold is in a trading halt to vote on the proposed deal with Rua Gold (SNG)
Rattlin’ the Tin
NGEx Minerals launched a C$100m placement, subsequently upsized to C$175m, to drill out its Lunahuasi copper project (NGEX.T)
Cornish Metals has entered a £7 million secured credit facility with Mick Davis’ Vision Blue paying 15% p.a. (CUSN.V)
Astron completed a $13m capital raising (ATR)
Word on the Decline
We believe a major gold miner or two tested the water in doing a friendly deal to acquire Greatland Gold before the Telfer sale process had concluded
The angle? Greatland always had all the negotiating leverage in the sale process via its pre-emptive right on the other 70% of Havieron
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
The Principal-Agent Problem (Byrne Hobart) think of the application to mining companies where “capital-intensive industries” are discussed by Byrne
Saudi Arabia tightens its belt (FT Big Read)
The shale revolution helped make America’s economy great - what does this mean for renewables? (Economist)
Will China’s move to “big” stimulus work and what does it mean for Australia? (Livewire)
Rene Sterk with an entertaining 9-minute video: Things to Think About in Mining & Exploration #1: Verification & Validation (YouTube)
BYD Is Winning the Global Race to Make Cheaper EVs (Bloomberg)
Today’s Top Tweet
2025: "mom, why is our family so rich?"
"because dad believed in #uranium"
— Uranium Corgi (@UrTokenCorgi)
1:05 AM • Oct 16, 2024
Devil’s in the Detail
Sun Silver IPO’d this year with its fair share of hype. We think there’s a bit in the detail here, but here’s one example for the punters. Their metal equivalent calculations don’t include any recovery factors…
Plus, there’s a new entrant in gold price updates from MDs on LinkedIn.
Catch up on our latest episode
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