Gold Climbs Amid Fed-Driven Market Rally

Kazatomprom trade flat on 2024 numbers, Catalyst offload Henty for $30m

March 20, 2025

The Pre-Start

  • Kazatomprom reported 2024 operational cash flow of US$1b on output of 23.3mlb (100% basis; up 10%) & inventory of 6.3mlb (down 13%). It realised an average price of US$69.5/lb with an all-in-sustaining cash cost of US$27.7/lb (+ US$610m capex). 2025 guidance midpoints of 25.75mlb at US$29.75/lb (KAP.L)

  • Nickel Industries received Mines Ministry approval for its feasibility study to increase its 80% owned Hengjaya mine from 9Mwmt to 19Mwmt pa (NIC)

  • NRW was awarded a contract by Rio for work at its Coastal Water Supply project near Dampier, WA, running 12 months and valued at $100m (NWH)

  • Santana lodged its mining permit application, targeting end of 26’ production (SMI)

  • Arafura signed a binding offtake agreement with Traxys for the sale of NdPr oxide, at a volume of 100t/pa over 5 years, with an option for more (ARU)

  • Q2 Metals completed 4 holes from Cisco, with hole 27 intercepting 7 spodumene pegmatites, the widest being a 180m interval (QTWO.TSXV)

  • West Point Gold intercepted 73m @ 1.07g/t from 44m from its Gold Chain, Arizona project (WPB.TSXV) Stock up 16%

  • Great Southern Mining intercepted 5m at 14.57 g/t Au from 41m at their Duketon project (GSN)

  • Elevate Uranium indicated operation at its demonstration plant is anticipated for end of CY25, while drilling continues (EL8)

  • Neometals shared gold exploration assays, intercepting mineralisation across numerous holes as technical studies continue (NMT)

  • Euro Manganese’s Chvaletice project has been declared a strategic deposit by the Czech gov’t, which should expedite the permitting process (EMN)

  • Pantoro is set to undertake a 17:1 share consolidation in early April, if approved by shareholders at its 1 April general meeting (PNR)

  • Tesoro returned assays from El Zorro, Chile, with drilling extending the northern end at Ternera, with a headline hit of 68m @ 1.18g/t Au from 33m (TSO)

  • Collins St increased its stake in Barton Gold to ~14.1% (BGD)

  • Devex Exec Chair Tim Goyder purchased ~$215k shares on-market (DEV)

  • Santos NED Janine McArdle picked up ~$186k of stock on-market (STO)

  • Predictive Exec Director Sandra Bates bought ~$156k shares on-market (PDI)

High Grade It

  • Wall St rallied sharply & Treasury yields fell as investors bet that the Fed will look through rising price pressures & continue cutting interest rates (Reuters) While major indices jumped, gold did too… US$3,052/oz

  • Unease over cashflows at highly indebted MinRes increased after authorities closed its Onslow iron ore haul route due to the 6th crash on its road (AFR)

  • Opposition leader Peter Dutton vows faster approvals to bring forth new mining boom (West)

  • Record gold prices not the best news for hedged miners (MNN)

  • The projected gas shortfall for Australia’s eastern seaboard has been pushed back to 2029 thanks to producers increasing supply, the AEMO said (Australian)

  • Uzbekistan launched an ambitious US$2.6b initiative to unlock its endowment of resources, with a 3-year plan focusing on the extraction of critical minerals (NM)

  • The Minerals Council chair believes the mining sector is facing a “concerted effort” to dismantle a productive industrial relations system & drag it back to a crippling “era of strikes, inefficiency, and industrial confrontation” (West)

  • As bullish traders cheered the gold price breaching US$3000/oz this month, its quiet cousin, silver, has jumped 17% year to date to US$34/oz (AFR)

  • Codelco is considering adopting technology being developed by Robert Friedland’s I-Pulse that uses electricity to shatter rocks (Bloomberg)

Wheelin’ n Dealin’

  • Catalyst went into trading halt pending an announcement regarding an asset divestment transaction (CYL) Kaiser Reef purchasing Henty for $30m upfront, CYL to emerge as 19.9% shareholders

  • CZR received an unsolicited, non-binding & conditional takeover proposal from Gold Valley for an on-market, cash takeover at 31c/share. The bid is conditional on funding + CZR releasing Gold Valley from its standstill obligations. CZR concluded the proposal doesn’t constitute a superior proposal (CZR) Stock up 15%

Rattlin’ the Tin

  • New Murchison Gold received firm commitments for a $16.5m placement, with Westgold participating to take its stake to 16.2% (NMG)

  • Rupert Resources entered a C$45m bought deal at C$4.50/share (RUP.TSX)

  • Many Peaks said $6.2m to advance drilling at Ferke in Cote d’Ivoire (MPK)

  • NexGold announced a bought deal to raise C$10m @ 72c (NEXG.TSXV)

  • Kaiser Reef is raising $25m to fund its acquisition of Henty (KAU)

  • Premium Resources announced a C$46m placement and the equity conversion of its C$20m term loan, both at 30c, plus C$6m in fees, paid mostly in stock (PREM.TSXV)

Word on the Decline

  • 49.1m shares in Emmerson traded in a single trade on Tuesday which matches the stake Evolution owned in the junior. Whether the buyer was London-listed Pan African (who recently acquired the Tenant Creek JV partner), a RoyaltyCo eyeing off Emmerson’s 6% gross royalty on certain deposits or someone else entirely remains to be seen. For what it’s worth, we don’t think Evolution would sell to a hostile bidder when exiting a small non-core position. And that thickens the plot here…

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In the Weeds

  • Scott Bessent Interview (All In Podcast) Also on podcast platforms

  • Giving mining “a fighting chance” in Europe: Glencore, Albemarle, SQM, ICMM and Rio Tinto on what needs to change (MNN)

  • MinRes’ problems run deeper than a hedge fund attack (AFR’s Chanticleer)

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Devil’s in the Detail

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