Trade Deal Sees Iron Ore Jump & Gold Plummet

Pan American Silver goes shopping in US$2.1B deal for MAG; SPUT raises capital to cover costs

The Pre-Start

  • West African has commenced mining & crushing activities at Kiaka, with first gold on schedule for Q3. All major mining equipment is on site with wet plant commissioning underway (WAF)

  • Patriot shared a resource upgrade for Shaakichiuwaanaan, with 108Mt @ 1.4% Li2O in the indicated category and 33Mt @ 1.33% Li2O in inferred, while its feasibility study is on track for Q3 CY25 (PMT)

  • Paladin shared additional details on its quarter in a Canadian filing (PDN) whilst sharing a new presentation with the results (PDN)

  • Westgold published their Canadian quarterly filing, summarising a period in which it saw $80m in net earnings (WGX)

  • Leo Lithium provided a shareholder update, including a progress update on M&A discussions (LLL)

  • New Murchison Gold shared results from grade control drilling over Crown Prince, with increases in grade and thickness expected (NMG)

  • Auric announced mining has commenced at Munda, with site prep work largely completed (AWJ)

  • Black Rock Mining advised the notice of default issued in relation to its special mining licence for the Mahenge graphite project in Tanzania had been lifted, while signing power construction & supply agreements with TANESCO (BKT)

  • Creditors of Jervois Global approved the execution of a DOCA, which was executed last week (JRV)

High Grade It

  • US stocks soared, as the S&P 500 ended 3.3% higher, while the tech-heavy Nasdaq closed up 4.3% and the dollar jumped 1.5% on the US-China deal (FT)

  • Superannuation giant HESTA has dumped its remaining MinRes stake, stating the miner was “unable to make the changes we believe necessary to restore investor confidence” (AFR)

  • MinRes is selling a land package that’s expected to reap somewhere between $100-150m as it teeters under a $5.4bn net debt pile (Australian)

  • China’s weaponisation of rare earths in its trade war has “changed (the) psychology” of US supply security, according to MP Materials (Bloomberg)

  • South32 has named Matthew Daley, an Anglo American exec with a strong background in copper, as its new chief executive to replace Graham Kerr (AFR)

  • A Supreme Court judge ordered Clive Palmer’s Mineralogy and CITIC to have one last crack at mediation as they continue to fight over expansion delays (West)

  • China’s Zijin has picked Citic Securities and Morgan Stanley for the Hong Kong IPO of its overseas gold business (Bloomberg)

  • Gold prices plummeted by nearly 3% or US$100 as a temporary deal between the US & China saw equities jump (Mining.com)

  • The TSX gold sector has been whacked down nearly 8% as US-China trade talks saw further unwinding of the 'haven' trade (MNN)

  • Macquarie loosened its investment & lending policies for coking coal mines, citing limited alternatives for steelmaking and infrastructure development (AFR)

  • Norway’s sovereign wealth fund said it’ll engage with Rio & South32 over environmental issues after its board of ethics advised selling its shares (CB)

The Resolve Mining Solutions team specialises in block and sublevel caving, offering expertise in mine design, planning and scheduling, drill & blast, vent and heaps more!

Wheelin’ n Dealin’

  • Pan American Silver will acquire MAG Silver for US$2.1B, paying a mix of cash totalling US$500m and 0.755 PAAS shares per MAG share. The price is a 27% premium to the 20-day VWAP, with MAG holders owning 14% of the combined co (PAAS.NY)

Rattlin’ the Tin

  • Sprott Physical Uranium Trust raised US$25.6m to cover operating expenses (U-UN.TO)

  • Cobalt Holdings has said it plans to list in London in June in an IPO that will see commodities trader Glencore take a 10% stake, in a US$230m raising (FT)

  • Coronado has moved to refinance its debt with non-bank lenders after it flagged in April it’d breached its covenants (Australian)

  • Wesfarmers’ Covalent JV revealed as the second entity to tap into lithium support package from WA taxpayers (West)

  • The Metals Company announced a US$37m financing to advance its deep-sea mineral development (TMC.NAS)

  • Aya Gold & Silver announced approval of a proposed US$25m secured credit facility from EBRD, for expansion of its Zgounder mine in Morocco (AYA.TO)

Word on the Decline

  • We have heard a rumour that South32 is confidentially exploring a sale of Cannington… If true, it would be a bold final act for Graham Kerr in his last ~1yr at the helm of the miner…

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

  • Uranium supply risks: means lights out over Paris (Livewire)

  • Peabody weighs its legal options at Moranbah North (Coal Trader Substack) “The lead inspector advised that the safest course would be to remotely seal longwall 113 and fully inertise the goaf, citing persistent ignition risks.”

  • Eurotrash (Roland Gotthard on LinkedIn) a thorough critique of EUR’s Tanbreez project and its recent study

  • Dryblower: Coal-mine fires could lure BHP back to Anglo American (MNN)

  • Riding the commodity price cycle (Livewire)

Were you forwarded this email from someone else?

Today’s Top Tweet

Catch up on our latest episode

🟢Spotify | 🟣 Apple Podcasts | 🟥 Youtube

All information in this newsletter is for education and entertainment purposes only and is of general nature only. The Money of Mine team are not financial professionals. Money of Mine are not aware of your personal financial circumstances. Before making any investment decision, you should consult a licensed financial, legal or tax professional, along with considering any relevant Product Disclosure Statement. Money of Mine does not operate under an Australian financial services licence and relies on the exemption available under the Corporations Act 2001 (Cth) in respect of any information or advice given. Money of Mine strives to ensure the accuracy and currency of the information contained in this newsletter but we do not make any representation or warranty that it is accurate, reliable or up to date. Any views expressed by the hosts of Money of Mine are their opinion only and may contain forward looking statements that may not eventuate. Money of Mine will not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of information in this newsletter. Information relating to our Privacy Policy is available online here.

Reply

or to participate.