|Day's Range||2.726 - 2.782|
Canada's main stock index fell on Thursday as energy shares took a hit from a second day of decline in oil prices. * At 9:33 a.m. ET , the Toronto Stock Exchange's S&P/TSX Composite index edged down 64.11 ...
A rebound in mining mergers and acquisitions is set to continue into 2019, led by companies from top metals consumer China, as a dearth of exploration spending leaves the industry in need of fresh investment, delegates told a conference on Thursday. Sector M&A in mining powerhouse Canada had its best quarter in more than seven years in July-September, spurred by Barrick Gold Corp's planned $6.5 billion acquisition of Randgold and Chinese firm Zijin Mining's C$1.86 billion ($1.43 billion) deal to buy Nevsun Resources. "We think that this year and next year will be the years of consolidation," Keith Spence, president of Canada-based Global Mining Capital Corp, told the China Mining conference in Tianjin.
A rebound in mining mergers and acquisitions is set to continue into 2019, led by companies from top metals consumer China, as a dearth of exploration spending leaves the industry in need of fresh investment, delegates told a conference on Thursday. Sector M&A in mining powerhouse Canada had its best quarter in more than seven years in July-September, spurred by Barrick Gold Corp's planned $6.5 billion acquisition of Randgold and Chinese firm Zijin Mining's C$1.86 billion ($1.43 billion) deal to buy Nevsun Resources . "We think that this year and next year will be the years of consolidation," Keith Spence, president of Canada-based Global Mining Capital Corp, told the China Mining conference in Tianjin.
Oct 18 (Reuters) - MMG Ltd: * QTRLY TOTAL COPPER PRODUCTION 87,087 TONNES, DOWN 24 PERCENT * QTRLY LEAD PRODUCTION 11,827 TONNES, UP 83% * QTRLY ZINC PRODUCTION 57,595 TONNES, UP 234 PERCENT Source text ...
* Zijin Mining Group Co Ltd, one of China's biggest gold miners, will produce around 37 tonnes of the precious metal in 2018, its chairman said on Thursday. * The company's gold output will be flat or a little lower than last year, Zijin Chairman Chen Jinghe told Reuters on the sidelines of a conference in Tianjin. * Zijin is "paying attention" to Tanzania but "not yet negotiating", he said, after Reuters reported earlier this year that it would set up a joint venture with Acacia Mining, a unit of Barrick Gold, to develop Tanzanian gold mines.
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Copper Mountain Mining Corporation (TSE:CMMC) due to its excellent fundamentals in Read More...
Mining companies operating in Zambia will still meet their operational costs even after the government imposes higher taxes in Africa's No.2 copper producer, its finance minister said on Wednesday. Zambia plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt, Finance minister Margaret Mwanakatwe said while delivering the 2019 budget speech last month.
Chile's state copper miner, Codelco, has submitted an environmental impact assessment of its plans to overhaul its aging Salvador deposit that would sharply increase its production and extend its life by 40 years. Codelco said the mine's overhaul would involve an investment of about $1 billion, and increase production to 90,000 tonnes of refined copper from the 62,000 tonnes produced last year. "Through various drilling campaigns, we have identified copper reserves of 900 million tonnes of ore, with average ore grades of 0.59 percent, which would prolong the useful life of the division and its operational continuity for at least four decades," Codelco's chief executive, Nelson Pizarro, said in a statement emailed to Reuters.
BHP trimmed its 2019 copper production forecast by about 3 percent to a range of 1.62 million tonnes to 1.71 million tonnes, citing reduced production at its Spence and Olympic Dam mines in Chile and Australia, respectively. The Olympic Dam mine was closed for repairs and is expected to resume operations by the end of this month, while operations at Spence continue at partial capacity following a fire in September. The outages also hurt production during the quarter, with copper output flat at 409,000 tonnes.
Copper producer Atalaya Mining , which is backed by Swiss trading giant Trafigura, is looking for a buyer, two banking sources said on Thursday. The Cyprus-based miner has hired Canadian investment bank Bank of Montreal to help with the sale, the sources said. Atalaya's main copper asset, the Proyecto Riotinto in the Spanish region of Andalucia, was part of a mine complex bought in 1873 by the founders of Rio Tinto from the Spanish government to start the Anglo-Australian mining giant.
Canada's Barrick Gold Corp (ABX.TO), which recently announced a $6.1 billion (£4.6 billion) deal to acquire Randgold Resources Ltd (RRS.L), https://t.co/N7uaLM1tXK affirmed its 2018 gold and copper production forecast on Wednesday, reflecting improvements in operations. Citing preliminary data, Barrick said its 2018 effective tax rate was expected at about 48 to 50 percent, up from a previous forecast of 44 to 46 percent, because of lower-than-expected sales from lower-tax mines. In the third quarter, Barrick said it sold 1.2 million ounces of gold and 114 million pounds of copper, and produced 1.15 million ounces of gold and 106 million pounds of copper.
Royal Gold's (RGLD) fiscal first-quarter sales performance hurt by reduced sales at Mount Milligan due to lack of sufficient water sources.
Oct 10 (Reuters) - Zhejiang Hailiang Co Ltd: * SAYS IT OR UNIT PLANS TO BUY AN INDUSTRIAL SITE IN TEXAS, U.S. FOR $45.0 MILLION FOR ITS COPPER PIPE PRODUCTION PROJECT Source text in Chinese: https://bit.ly/2PrpHIb ...
Chile's state-owned miner Codelco, the world's largest copper producer, plans to raise up to $1 billion next year to help finance the overhaul of its existing mines, Chairman Juan Benavides said on Tuesday. Benavides also said the company was looking at exploration projects in Brazil, Ecuador and Kazakhstan and that plans laid out more than two years ago to invest in Mongolia had been shelved for now. Codelco has an ambitious investment program to cut costs and boost productivity at its Chilean mines at a cost of $40 billion over 10 years, as it seeks to maintain production despite rapidly falling ore grades at its deposits.
Benavides also said the company was looking at exploration projects in Brazil, Ecuador and Kazakhstan and that plans laid out more than two years ago to invest in Mongolia had been shelved for now. Codelco has an ambitious investment program to cut costs and boost productivity at its Chilean mines at a cost of $40 billion over 10 years, as it seeks to maintain production despite rapidly falling ore grades at its deposits. It will be where the best benefits are in terms of cost, flexibility and interest," Benavides said, adding that much of the $40 billion would come from cash flow.
First, while China’s steel demand has likely peaked, the country’s copper demand could continue to rise. Copper’s supply dynamics are also different from some of the other metals like steel and aluminum that face structural and chronic overcapacity, especially in China. Most observers expect copper markets to enter into a structural supply deficit in the next decade as existing mines fail to churn out enough metal to meet the demand.
As is the case for copper futures, the London Metal Exchange has been the go-to marketplace for options since starting them decades ago. Options volumes have jumped almost 10-fold on Comex in New York since January 2017 and trading got off to a fast start in Shanghai last month. Rival bourses have found it easier to lure new investors attracted by rebounding prices in recent years, partly because of simpler monthly structures for contracts, LME chief Matthew Chamberlain said.
As we discussed previously, several mining companies including Vale and Glencore (GLEN-L) have announced share buybacks in 2018. China’s fixed-asset investment growth rates, which have driven the country’s metal appetite, have fallen to historical lows. The construction boom, which lifted China’s metal demand in the last few years, is also fading quickly.
Copper mining is concentrated in Latin America. The mined copper supply is susceptible to disruptions from protests to nature-related incidents. Aluminum’s supply chain is generally less prone to supply uncertainty compared to copper (FCX).
When the cycle turns for the worse and commodity prices fall, mining companies’ free cash flows also fall. There isn’t much that mining companies can do when commodity prices fall. After the 2008–2009 economic crisis, we saw a sharp rally in metal prices. Copper prices briefly topped the $10,000 per metric ton level in 2011.
The metals and mining industry has seen a lot of action in 2018. For steel and aluminum, President Trump’s Section 232 tariffs lifted US steel prices and physical aluminum premiums to multiyear highs. President Trump clamped down on US steel imports and other regions, especially the European Union, took measures to prevent import deflection after the US tariffs. However, steel prices have been quite resilient globally due to falling Chinese steel exports.
Codelco is in talks to sell up to 60,000 tonnes of copper a year to China Minmetals from 2019 to 2021, marking a change in sales strategy at Chile's state-owned miner which typically made deals on an annual basis, industry sources said. Sources say the aim was to agree "evergreen" three-year deals in which the Chinese company would commit to buy 50,000 to 60,000 tonnes a year of copper for the period. The deal with China Minmetals, part of Codelco's efforts to secure longer term supply contracts, focuses on the quantity of copper to be supplied, sources said.
The great and the good of the global metals industry are descending on London, making their annual pilgrimage to the London Metal Exchange's LME Week jamboree. They do so because the 141-year-old market ...