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PLS Rockets on Resource Growth
Perseus' 5-year plan sends its stock down, Crypto player enters the royalties game
The Pre-Start
PLS delivered an updated Pilgangoora resource, lifting contained lithium 23% to 446Mt @ 1.28% Li2O, containing 5.7Mt of lithium oxide (PLS) Up 9%
Perseus shared a 5-year production outlook, where it expects to produce on average 525kozpa, at US$1,450/oz AISC while spending US$878 in development capital (PRU) Down 6%
Patriot Battery Metals confirmed that pollucite is the main caesium host mineral at Vega & Rigel, with by-product potential being studied (PMT)
IperionX secured its first US Army order under the US$99m contract to supply titanium parts (IPX)
Q2 shared assays from the remaining 10 drill holes from the winter program at Cisco, with many holes intercepting Li2O over numerous intervals (QTWO.TO) Stock down 10%
Solstice shared drilling results from Statesman Well, intercepting shallow gold mineralisation while defining further targets (SLS)
High Grade It
Auto companies are “in full panic” over rare-earths bottleneck, while the US and China close in on a deal (Reuters)
Iron ore declined to $94/t, as traders watched for any progress from US-China trade talks and potential stimulus from Beijing (Bloomberg)
Numerous Australian & American investors have urged Albanese to help broker compensation for shareholders who allegedly lost $400m from the cancellation of a corruption-tainted coal mining licence in NSW (AFR)
EDF found indications that “stress corrosion” cracks may again affect pipes at a nuclear reactor, risking riling European power markets (Bloomberg)
Roy Hill & Atlas Iron will join forces under the name Hancock Iron Ore in what represents the biggest shake-up for Rinehart’s Hancock Prospecting operation in years (Australian)
Smelters are paying record sums to turn concentrate into copper, following moves by China to try to dominate the global smelting market (FT)
Tom Peever, accused of orchestrating an alleged mining fraud said he would extract precious metals from copper tailings. The project never got close to happening, with investors & the ATO owed a fortune (Australian)
Wheelin’ n Dealin’
La Mancha has sold out of its 32% stake in Elemental Altus Royalties. The buyer? Tether… Yes, the company behind the stablecoin has paid C$122m and entered the mining royalties arena. Tether also entered an option with Alpha 1 to acquire another 15% stake in Elemental, which if exercised, would give them 47% of Elemental (Tether)
Gina Rinehart will merge Atlas Iron with Roy Hill, creating Hancock Iron Ore (West)
Rattlin’ the Tin
A Nevada mining project has attracted the attention of the EX-IM Bank of the US, which is showing interest in offering US$896m for construction (Mining.com)
Coolabah Metals (to be renamed as Broken Hill Mines) shared that its $20m public offering has closed (BHM)
Dolly Varden Silver announced a bought deal of C$29m, publicising Eric Sprott’s participation (DV.TO)
Cokal secured US$15m in debt funding to increase met coal production (CKA)
Aya Gold and Silver has announced a bought deal raising of C$100m (AYA.TO)
Word on the Decline
We are always curious when a company provides a long-term production outlook for the first time. When we see it happen, we often speculate that it might precede a merger
This morning is the first time Perseus provided a 5-yr outlook. And the rationale given by Jeff Quartermaine was very punchy in the preamble of the webinar
We feel we need to clear up what we believe is a major misconception about Perseus that seems to exist in certain sections of the market... People believe the music is about to stop as Perseus' assets have reasonably short mine lives compared to other companies and this is a reason to look elsewhere when investing in gold equities. Now the latter part of that assertion is just simply not correct. And our five-year outlook goes a long way towards demonstrating that it is grossly premature to be predicting Perseus' imminent demise.
Honestly, a really well-explained rationale by Jeff. And we’re no one to question Perseus’ value creation over the last decade. But if the market has a misconception about an ‘imminent demise’ while you’re cashed up, why not use the opportunity to buy back even more of your own stock?
For that reason, Jeff hasn’t completely squashed our suspicion that there could be a deal ahead…
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
Dryblower: Rio Tinto's next crisis is brewing at Simandou (Dryblower) Simandou not immune from Guinea troubles…
Australian rare earths miners join rush to Brazil (AFR oped)
This Time it’s Different (Trader Ferg) The 4 most dangerous words in investing
Today’s Top Tweet
Nobody;
Some ceo.ca dude
— 🅿🅴🆃🅴 (@Pete__Panda)
8:57 AM • Jun 10, 2025
Devil’s in the Detail
A curious open for Adriatic Metals this morning. No news out but after trading north of $5 since the deal leak with Dundee Precious Metals, the stock fell sharply 8% this morning.
We’d expect to see this price action if Dundee’s offer fell away, but there’s no news to that effect.
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