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- China Stimulus: Disappointment or Delight?
China Stimulus: Disappointment or Delight?
Barminco & NRW grab new contracts, Leo sticks to the scrip
The Pre-Start
Barminco secured a $157m underground contract extension with IGO at Nova (PRN)
New World has submitted its Aquifer Protection Permit for its Antler copper project in Arizona and expects major permits to be secured by Dec 2025 (NWC)
Leo Lithium ended the quarter with $82m cash. Net proceeds from the 1st tranche payment of US$161m will distributed to shareholders in January (LLL)
Snowline Gold returned 433.5m at 2.1g/t Au from 19m at its Rogue project in Canada’s Yukon (SGD.V)
K92 produced 44koz AuEq, on track to hit guidance, from ore running at a head grade of 13.8g/t AuEq (KNT.T) The stock jumped 16% post quarterly
NRW were awarded a development contract by BHP at the Jimblebar mine valued at c. $109m, running until Q2 2026 (NWH)
Beacon Minerals produced ~5.2koz for the September quarter at Jaurdi, sold at an average sale price of A$3,696/oz (BCN)
Ausbil has become a substantial holder in IGO, holding just over 5% (IGO), while Aussie Super popped up with a 5.1% stake in MinRes (MIN)
Royalty companies:
High Grade It
China’s finance minister has planned a fiscal briefing for Saturday as investors look for additional stimulus measures (Bloomberg)
Traders hold high hopes for Beijing’s ‘second chance’ stimulus bazooka (AFR)
A little less conversation, a little more action is needed if Rio is to win a perennial argument about its clunky dual-listed company structure (AFR)
China’s top miner is set to spend US$24b on coal-to-oil project in Xinjiang (Bloomberg)
Production at Adriatic’s Vares silver project in Bosnia & Herzegovina has been unaffected by serious storms in the country (BN)
Sources say India’s Adani Group is planning 10GW overseas hydro-electric projects (Reuters)
Market strategists say the record Aussie market run hinges on whether China will deliver a big enough spending package this weekend (AFR)
French energy group EDF is seeking to raise up to £4b to help fund construction of UK’s Hinkley nuclear plant (Bloomberg)
FMG’s head of carbon & climate told a conference that the state is not incentivising decarbonisation enough, warning investment dollars are being lost overseas (BN)
Copper rebounded from a two-week low with eyes on China briefing (Bloomberg)
Trouble battery maker Northvolt will be able to pay its taxes that fall due on Oct. 14, answering to mounting speculation (Reuters)
U.S. inflation eased to a new three-year low but is cooling more slowly than expected (WSJ)
Nickel true believers claim the future is “unarguably positive” at Paydirt’s nickel conference this week (Mining News)
Wheelin’ n Dealin’
Rio’s $9.9b acquisition of Arcadium looks likely to succeed and could trigger further deals in the sector (CB)
Rio learns to stop worrying and love the commodity cycle (MiningNews)
RBC analyst reckons Rio needs to materialise about US$2.7b of unapparent value from Arcadium to make the takeover worth it (West)
Rex Minerals shareholders voted in favour of the scheme with MACH, who received FIRB approval for the deal (RXM)
Zeta Resources is being compulsorily acquired by its major shareholder UIL (holds 95%), to be completed by mid month (ZER)
Unico Silver completed the Joaquin Silver acquisition, paying US$2m in upfront consideration with US$10m in contingent payments (USL)
NexGold and Signal Gold have agreed to merge, NexGold shareholders retain 71% of the proforma and the debt of the two companies restructured (NEXG.V, SGNL.TO) pitched as +200kozpa developer
Rattlin’ the Tin
Word on the Decline
Apparently Wesfarmers is looking for more lithium, not less…
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In the Weeds
Acquisitive miners like Rio should remember size isn’t everything (AFR)
Rio Tinto make a multibillion-dollar bet against China (Bloomberg)
Rio Tinto’s real prize: Arcadium’s lithium extraction technology (Reuters)
ASX mining & energy stocks want more China stimulus, but when and how much is coming? (Livewire)
Michigan and the EV Mandate Backlash (WSJ op-ed)
China Wars: Return of the Contras Addendum (Le Shrub)
The Era of Rolling Blowouts, China, Oil, Gold (Paulo Macro)
Today’s Top Tweet
I appreciate that Ryan Salame (Co-CEO of FTX Digital Markets) updated his LinkedIn before heading to prison for 7 years
— BuccoCapital Bloke (@buccocapital)
8:11 PM • Oct 10, 2024
Okay, and a mining one too. Sorry.
$SBSW maximum damages here would be around $100M
Incremental future cash flows implied by 1% increase in PGM prices overnight = $400M
If PGMs return to last week's price, $1.4B
Hopefully some of you will see why gut reacting to headlines is stupid
— Momentum Chaser (@electricfutures)
12:50 PM • Oct 10, 2024
Devil’s in the Detail
(Quarterly) season greetings

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