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- Gold Road Disappoints... M&A?
Gold Road Disappoints... M&A?
Rio's divvie comes in below expectations, while FMG shareholders look around
The Pre-Start
Rio’s half year saw FCF of US$2.84b after spending US$4b on PP&E. It finished June 30th with US$5b in net debt (RIO) Divvie missed estimates
Champion Iron produced 3.9Mwmt, sold 3.4Mdmt, had revenue of $467m & EBITDA of $181m. $154m spent on DRPF project to date (CIA)
Red produced 109koz (Koth’s AISC was $2,216/oz), after the first full Q with SLR integrated. Cash & bullion of $454m, with $93m spent afterwards closing a loan facility (RED)
Gruyere produced 63koz at $2,441 AISC in a disrupted Q. Gold Road’s sales were 31koz for $10m in FCF (GOR) Credit to GOR for reporting a Corporate All In Cost
Nickel Industries RKEF ops produced 32kt Ni for the Q at a cash cost of US$10k/t, with EBITDA of US$42m. HPAL & mining ops added US$13m & US$25m in EBITDA respectively (NIC)
Westgold produced 53koz at $2,041 AISC, closing with $263m in cash & bullion. Karora merger closes tomorrow (WGX)
Peninsula updated on the Lance project, with production targeted for late 2024. All major equipment has been ordered (PEN)
Emerald did 114koz at US$818/oz AISC for FY24. $162m cash & bullion on hand at year-end, with a Sprott facility balance of US$19.5m (EMR)
WAF’s maiden grade control drilling from Kiaka saw hits including 30m at 4.1g/t, supporting stage 1 (WAF)
Galena, while in VA, produced 27kt of Pb-Ag con, up significantly, while mill performance also improved (G1A)
Calidus (still in admin) had a record quarter at Warrawoona and met H2 guidance, producing c. 32koz. Macquarie closed out the entire hedge book, now owed $148m (CAI)
Lotus has signed a Mine Development Agreement with a 10-year stability period, fixing fiscal terms in Malawi (LOT)
Atlantic Lithium delivered an updated resource at its Ewoyaa lithium project to 36.8Mt at 1.24% Li2O (A11)
High Grade It
Canadian global fertiliser giant Nutrien vowed to counter any competition from BHP with a boost to potash supply from its mine network (BHP)
Rio Tinto have said that Guinea’s Simandou will be a big contributor to its de-carb efforts (Bloomberg)
Fortescue was fortunate to have such a sticky institutional backer for as long as it did. Now, it needs to find broader support (AFR’s Chanticleer)
Saudi Arabia sees Codelco as a good candidate to develop lithium deposits despite challenges facing the state-owned miner (Bloomberg)
India's gold demand fell 5% this quarter (yoy), but consumption in 2H 2024 is set to improve following a reduction in import taxes (Reuters)
$3b deal shows how BHP dusted itself off and tried again (AFR’s Chanticleer)
Rio Tinto shareholders will receive the fourth-biggest interim dividend in the miner’s 151-year history (AFR)
Fundies have closed out more than $20b in bullish copper bets since mid-May, with mounting worries about Chinese demand (Bloomberg)
Senior employees of Vitol were paid US$6.4b last year (FT) Not a bad pot to share amongst 450 people
Wheelin’ n Dealin’
Rattlin’ the Tin
Word on the Decline
We heard that Northern Star Resources may have experienced a significant rock fall late last week at Jundee resulting in a Jumbo being buried, but thankfully no-one was hurt. And like the fire last month, we’re unlikely to hear about it from them until the quarterly…
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
Allan Trench and John Sykes investigate how mining companies can preserve value and mitigate the Lassonde curve (MiningNews)
Wyloo’s Luca Giocovazzi says there is a global shortage of nickel sulfide concentrate, a high-grade product prized by battery makers (S&P)
Oil Billionaires Bet on Trump’s Energy Agenda (WSJ)
China unveils its new economic vision (Economist) How long can it remain “ambivalent” about the role of the market?
Here’s a cool 9-min history on the discovery of Escondida (Youtube)
Chinese brands captured 11% of the European electric car market in June, notching record registrations (Bloomberg)
Chinese EV market share in Europe grows
Today’s Top Tweet
$BOE 🇦🇺 GO AUSTRALIA!
— Praise ꓘeK Inquisitor (@PraiseKek)
6:30 PM • Jul 29, 2024
Devil’s in the Detail
Do the math on last year’s profit of US$6.5 billion distributed to Vitol’s 450 employees. That’s an average of US$14.4 million per employee.
Convert that to Australian dollars and we’re talking A$22 million on average.
Which is more than all but 4 CEOs in Australia according to AFR’s highest paid list. Pipping 5th placed Mike Henry of BHP taking home $19.6 million.
And if you consider Switzerland has a maximum income tax of only 11.5%, the commodity traders (on average) might be topping the CEO after-tax.
Why on earth does anybody want to be a professional-class CEO again?
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Disclaimer
All information in this newsletter is for education and entertainment purposes only and is of general nature only. The hosts of Money of Mine 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.
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