Hancock + POSCO Go Downstream Together

S32 scraps Mozambique guidance due to unrest; Vulcan launches $184 capital raising

The Pre-Start

  • Evolution received regulatory approvals to extend Cowal open pit ops (EVN)

  • South32 advised due to escalating civil unrest in Mozambique, transport of raw materials to Mozal Aluminium is being impacted by road blockages (S32) Workforce is safe, Mozal production guidance withdrawn

  • Liontown’s first cargo of spodumene con heading to a long-term off-taker has left port today, with a total of 33kwmt of SC5.2 departing (LTR)

  • Provenance Gold drilled 3.07g/t over 175m at its Eldorado property in Eastern Oregon (PAU.C)

  • Firefly announced it plans to dual list on the Toronto Exchange (FFM)

  • Sunshine Metals suggests it has 904koz at 4.0g/t AuEq at its Ravenswood Consolidated project near Charter Towers in Queensland (SHN)

  • Jaguar Mining reported its Turmalina gold mine in Brazil is temporarily suspended following a slip in the north wall of its dry stacked tailings pile (JAG.T)

  • Centaurus’s Jambreiro iron ore project has been awarded priority status by the state of Minas Gerais, allowing expedited licence renewal (CTM)

  • Lundin Gold released their three-year outlook to shareholders, indicating production of 475-525koz gold per annum for the next three years (LUG.T)

  • Yandal shared further results from Siona, with hole 50 (80m along strike from initial hit) returning 17m @ 4.9g/t from 85m (true width 8-10m) (YRL)

  • Diatreme has entered a non-binding MOU with Mitsui for the sale and offtake of its North Queensland silica sand (DRX)

  • Australian Pacific Coal announced John Robinson will become permanent exec chair (AQC)

High Grade It

  • China may raise its budget deficit to the highest in three decades and make the deepest interest-rate cuts since 2015 (Bloomberg)

  • The shadow resources minister lambasted the “valley of death of approvals” for miners (MiningNews)

  • The lithium supply surplus is set to stay, providing a boon to battery makers' (Reuters)

  • WA miners surge on renewed Chinese stimulus hopes (West)

  • China shipped near-record volumes of aluminum in November as exporters rushed to benefit from tax discounts (Bloomberg)

  • Embattled lithium miner AVZ admitted it is under investigation by the AFP over allegations of bribery, which it denies (West, BN)

  • Oil edged lower as persistent concerns over a looming supply glut overshadowed the outlook for bolder Chinese stimulus (Bloomberg)

  • South32 pulls guidance from aluminium operation amid strife in African country of Mozambique (West)

  • Global exports and use of thermal coal will reach all-time highs in 2024, despite the record roll-out of renewable energy generation (Reuters)

  • Iron ore mining has resumed at GFG Alliance’s Whyalla operations while rail haulage is still offline (Australian)

  • A $2.5b project in Chile that has raised environmental concerns could eventually face scrutiny by the Supreme Court, the environment minister said (Reuters)

  • Copper price jumps on China policy, but we’ve been here before (Mining.com)

  • The US Energy Dept. said it’s offering initial contracts to six companies to produce domestic uranium fuel for conventional nuclear plants (Reuters)

  • Robex Resources will shift its focus from Mali to Guinea & aim to sell its Nampala mine which it’s been operating since 2017, due to tensions (NM)

Wheelin’ n Dealin’

  • POSCO, Hancock seek to jointly build a lithium plant to produce 30kt per annum, locations to be assessed, including South Korea (Korea Daily)

  • Stellantis and CATL to invest €4.1 billion for battery plant in Zaragoza, Spain in a 50/50 joint venture (Xinhua)

  • Barrick is seeking buyers for its Tongon gold mine in the Ivory Coast as its clean out continues (Bloomberg)

  • Sibanye-Stillwater agreed to sell its South African Beatrix 4 shaft, which includes the Beisa uranium project, to Neo Energy for US$28m (MiningNews)

  • Pallisades Goldcorp is merging with Radio Fuels in an all-scrip transaction (PALI.V) Gold + uranium? We were scratching our heads at the rationale for this one. Until reading this: “Palisades and Radio Fuels are considered to be non-arm's length parties as defined by the TSXV policies because they have the same insider. Collin Kettell”

Rattlin’ the Tin

  • Vulcan Energy launched a $164m placement @ $5.85, plus a $20m SPP (VUL)

  • Aussie autonomous vehicle maker Applied EV eyes ASX listing as it launches new driverless car with Suzuki (CB)

  • Atrum Coal completed its underwritten entitlement offer to raise ~$5.8m, with eligible shareholders taking up ~51% (ATU)

  • Emmerson Resources is in trading halt to raise capital (ERM)

  • Cyprium is in a trading halt to raise capital (CYM)

Word on the Decline

  • After seeing Lundin sell ‘4th quartile’ copper mine Neves-Corvo yesterday, we are reminded of another non-core copper mine that could easily slip out of an existing producer…

  • We wouldn’t be surprised to see Capstone rationalise its Corizon mine in Mexico

  • Especially when the main game is growth-project execution which still has some funding uncertainty to play out

Santo Domingo

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In the Weeds

  • China signals bolder stimulus (Bloomberg) Includes great 8 min video

  • Calls mounting for green iron in Western Australia (MiningNews)

  • How much oil can Trump pump? (Economist)

  • Under Pressure: The problem with being a gold miner - Strictly Boardroom (MiningNews)

  • The basics of tariffs - and why it may get messy for investors (Livewire)

  • Citi’s five big commodity calls for 2025 (AFR) Oil bear market, precious bull market, sugar hit, volatile critical minerals & Henry Hub to lift

  • Australians’ cars are typically larger, heavier and less efficient than in Europe – here’s why (The Conversation)

  • How the stabilising global economy is shaping opportunities for growth in 2025 (Macquarie Capital)

  • China is still all talk on stimulus – for one good reason (AFR’s Chanticleer)

  • Ocean Wall’s market outlook for 2025 (Ocean Wall) uranium section is page 17…

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Today’s Top Tweet

Devil’s in the Detail

Shout out to the Money Miner who pointed out our misrepresentation of McNulty curves in Monday’s episode.

A new series was introduced in 2002 by Roger Nendick - Series 5 curves wherein the project limped along, achieving only 27% of design in the 4th year, but massive infusions of capital corrected serious flaws and allowed the project to reach 73% in the 7th year.

And with our updated understanding of McNulty curves can we now argue that Eneabba would be a Series 5?

Catch up on our latest episode

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$1.5B for a 4th Quartile Mine? (45 min)

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