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Perseus Hits Go on Nyanzaga as Goldies Peel Back

Perseus Hits Go on Nyanzaga as Goldies Peel Back

Alkane announces tie up with Mandalay while Pantoro falls on guidance miss

April 28, 2025

The Pre-Start

Perseus will advance the Nyanzaga gold project in Tanzania after making FID, with US$523m committed & first gold targeted for Q1 2027 (PRU)
Westgold shared plans to expand Higginsville, aimed at debottlenecking processing & lifting throughput to 2.6Mtpa (from 1.6) & gold output to ~140kozpa. Capex of $92m for an IRR of 37% (WGX)
Gold Road sold 34koz as Gruyere produced 71koz, resulting in GOR free cash of $34m, while it reported a CAIC of $3,058/oz. Cash closed at $204m (GOR)
Pantoro produced 18koz, below guidance of 20-25koz, due to Scotia ramp-up crossing into April. It grew cash and gold by $13m (PNR)
Lynas’ cash position closed down $40m on Dec at $269m, with a further $71m spent in capex over the quarter, while it sold 2.3kt of REO (LYC)
Capricorn shared an exploration update, with a further 835 holes covering 34km of drilling at Mt Gibson, plus a total of 43km at Karlawinda (CMM)
Datt Capital, 12% owner of Koonenberry Gold, has submitted a 249D request, which KNB elected not to disclose. It’s proposing Darren Glover & George (Datt)
Rogers should be removed as directors, with Tim Kennedy & Tony Gu to be appointed (Datt Capital)
Black Cat produced 12koz over the quarter while closing with $69m (BC8)
Aeris produced 10.7kt of CuEq, leaving it on track to meet guidance, and seeing it close with $34m and $40m in debt (AIS)
29Metals agreed a full and final settlement on Capricorn Copper insurance claims for gross proceeds of $115m, resulting in a $54m final payment (29M)
Metro completed contract price negotiations for Q2, with a 20% increase expected, while it closed March with $12m (MMI)
Peninsula advised that non-exec chair John Harrison will retire & resign from the board this month, with NED David Coyne to become interim chair (PEN)
Develop produced first copper concentrate as Woodlawn commissioning performed on budget & ahead of schedule. $94m of cash at quarter end (DVP)
Sayona published drilling results from Moblan for 99 holes totalling 29km, with assays pending on a further 116 holes with a resource update planned (SYA)
Matsa has entered an ore processing and treating agreement with FMR Investments at their Greenfields mill, beginning September 2025 (MAT)
Drilling from AIC Mines’ Eloise showed consistent grades in the Upper Levels of the mine, as well as extensional mineralisation (A1M)
Rox shared new assays following the completion of its 35km program, with an update MRE targeted for July (RXL)
Atlantic Lithium acknowledged the accuracy of media reports that it's engaged Ewoyaa stakeholders, including the gov’t, to appeal for fiscal concessions (A11)
European Metals shared that Cinovec had a US$36m grant approved, conditional on an EIA being submitted this year (EMH)
Encounter was awarded up to $430k, Dreadnought will receive $120k while WMG will receive $440k under the WA govt’s Exploration Incentive Scheme (ENR, DRE, WMG)

High Grade It

The Albanese gov’t said it’ll use a critical minerals reserve as leverage with the Trump administration over tariffs, as the mining industry warned that establishing the stockpile could push down commodity prices (AFR)
A London subsidiary of MinRes has written off more than $60m after shutting a Chinese lithium marketing operation that ran for less than 2 years (West)
Chinese miner CMOC said its chairman & vice chair both resigned for personal reasons, adding “that they’ve had no disagreement with the board” (Bloomberg)
The co-managers of the BlackRock World Mining Trust have taken aim at the failure of some big gold miners to convert soaring prices for the precious metal into higher margins (Australian)
As bullion hit a record last week, the trading of options on the SPDR Gold ETF surpassed 1.3m contracts, a level never reached before (Bloomberg)
At least four subcontractors employing several hundred people at Barrick's complex in Mali are laying off staff, as their dispute continues (Reuters)
Vale dismissed analysts’ predictions that prices of the steelmaking material will tumble below $85/t amid a tariff-fueled economic slowdown (Bloomberg)
UK hedge fund Palliser Capital is ramping up its campaign for Rio to abandon its London listing, with the ASX AGM approaching (Australian)
China's cabinet on Sunday approved a phase 3 project of Sanmen nuclear power plant in China's eastern Zhejiang province (Reuters)
KoBold is expanding into DRC, as it plans to apply for licences to explore for lithium, copper & cobalt while the US looks to cut a minerals deal (FT)

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Wheelin’ n Dealin’

Alkane will merge with Canadian miner Mandalay to create a group that’ll produce 160koz AuEq in 2025, with a pro-forma cash position of $188m. MND holders will receive 7.875 ALK shares, with ALK to own 45% of MergeCo, for an implied market cap of $1B. ALK MD Nic Earner will lead the group (ALK)
Lindian will acquire the remaining 25% in the Lelouma bauxite project, located in Guinea, for the issue of 20m shares and a 1% NSR royalty (LIN)
Red Hill entered an agreement to acquire a 2% NSR royalty on Sandstone for $4m (RHI)

Rattlin’ the Tin

Toubani is in trading halt regarding a proposed strategic partnership & capital raising (TRE)
Broken Hill Mines has upsized its offering to $15-20m as it advances its relisting with the new assets (CBH)

Word on the Decline

At face value, Red Hill’s acquisition of the Sandstone gold royalty ($4m upfront for 2% GRR on ~1Moz resource) seems a great deal. For comparison, Trident acquired a 1.5% NSR on Lake Rebecca (then ~1Moz and held by Apollo) for $8m in 2020, when the gold price was half of what it is today…
Every royalty company under the sun is looking to pick up gold royalties on near-term producing gold projects, cheaply
So it’s surprising that Red Hill, a company we did not even know was looking to acquire royalties, was the successful buyer here instead of an established RoyaltyCo…
And interestingly, the acquisition now positions Red Hill as a somewhat ‘diversified’ royalty company on the ASX… Look out Deterra!

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