EnCore Energy Halves on Production Miss

Iron ore breaks through $100/t with eyes on a Chinese stimulus plan

The Pre-Start

  • US uranium producer enCore Energy plummeted 46% overnight on the back of CEO Paul Goranson resigning effective immediate. Q4 results were also announced which missed expectations by 25%, seeing enCore having to buy over 0.5mlbs to meet contractual requirements (TSXV.EU)… Market cap now sits at C$368m, will the vultures swoop?

  • Santana shared an updated resource estimate, incorporating infill drilling since the PFS. RAS now contains 26.5Mt @ 2.4g/t for 2.08Moz (SMI)

  • Turaco shared results from drilling at Asupiri, which was done to validate historical work. The company claims the 28 holes demonstrate consistency with previous drilling (TCG)

  • Firebird have produced LMFP button batteries during cathode material testwork at their pilot plant in China (FRB) 

  • Strictland shared exploration work from its Jezerska prospect, with extensive porphyry veining and alteration intersected in a recent hole (STK)

  • Ecograf received a life-of-mine Special Mining Licence for the Epanko graphite project from Tanzania (EGR)

  • Brightstar Resources released the maiden Sandstone drilling results for the Lord Nelson deposit, with deepest hole showing 14m @ 2.27g/t gold (BTR)

  • Barton updated the resource at Tunkillia to contain 1.6Moz of gold @ 0.8g/t and 3.1Moz of silver @ 2.8g/t following a 5,000m drill program (BGD)

High Grade It

  • President Xi is preparing to unveil a stimulus plan as its trade war heats up, with

    China expected to repeat its bullish growth goal of about 5% (Bloomberg)

  • Unions fighting to regain a foothold in the iron ore industry have accused Rio Tinto of running a scare campaign (Australian)

  • Rio Tinto investors have told executives that they should abandon plans for a multi-billion dollar share issuance and instead borrow more (AFR)

  • The Canadian Supreme Court sided with Métis Nation-Saskatchewan over Sask. gov’t regarding historical province consultation for uranium exploration permits (CBC)

  • Shares in NRW were hammered nearly 11% after the civil and mining contractor delivered its half-year accounts, with concerns about debts with Whyalla (West)

  • Iron ore slumped below $100 a ton for the first time since mid-January as some steel mills curbed production (Bloomberg)

  • Victoria to deliver defining decision on Viva Energy’s proposed LNG import terminal within weeks (Australian)

  • China could reestablish import controls on coal, after leading industry groups warned on mounting oversupply (Bloomberg)

  • The US market’s AI fever for power stocks has moved from nuclear to plain natural gas, following regulatory scrutiny (WSJ)

  • PE firm Oryx Global Partners tapped former FMG CEO Elizabeth Gaines to be an adviser & outgoing Adriatic boss Laura Tyler to be a partner, as it launches a new resources fund (Australian)

  • Whyalla steelworks was shedding about $1.5m every day – a $319m loss in the seven months until January – before its collapse (West)

There are 5 weeks to go till AusIMM’s Underground Operators Conference 2025. Use the code MOM100 to get $100 off your tickets!

Wheelin’ n Dealin’

  • SSR Mining announced the closing of the Cripple Creek & Victor gold mine acquisition from Newmont, with US$100m having been paid upfront (SSR)

  • AuKing secured the right to acquire 50% of the Cloncurry gold project by funding the project with $5m before June 2027 (AKN)

  • Astral Resources now at 71% shareholding of Maximus as part of their off-market takeover (AAR)

Rattlin’ the Tin

  • Zanaga Iron Ore has raised US$23 million, US$15 million of which will repurchase Glencore’s 43% shareholding and terminate their offtake (ZIOC.L) London’s mining elite named as investing (Mick Davis, Mark Cutifani, Tony Trahar)

  • Euro Manganese is in a trading halt to raise capital (EMN)

Word on the Decline

  • We have a suspicion that there’s a mega deal on its way for Australia’s largest oil and gas producer…

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

  • Madeleine King doesn’t reign supreme over resources and must quit (Australian op-ed)

  • Twiggy takes rivalry with Rinehart to the penthouse (AFR)

  • Matt Warder: Coal, Precious Metals, and Dinner with Mohnish Pabrai (Apple, Spotify)

  • Investor Dave Iben interview by Adam Taggart (Apple, Spotify) Dave’s shares views on commodities including gold & uranium 

  • Hancock Prospecting celebrates Gina Rinehart birthday bash with traditional employee raffles (West)

  • Dalio Warns of US Debt Crisis ‘Heart Attack’ Within Three Years (Bloomberg)

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Today’s Top Tweet

Devil’s in the Detail

We were scratching our heads trying to reconcile Paladin’s cashflow in the December quarter.

The answer to our confusion is revealed in the notes of the half-year accounts. They presold US$29 million of uranium that they haven’t delivered yet. Strange we couldn’t find any mention of this in December’s quarterly…

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