- The Director's Special
- Posts
- Metals Poised with All Eyes on Rate Cuts
Metals Poised with All Eyes on Rate Cuts
Zijin won't be deterred by the Canadian government while Australia opens the door to UAE funds
The Pre-Start
Develop is in a trading halt pending the execution of a new contract (DVP) we are watching for any offtake of 20% Woodlawn volume / + minority selldown
Spartan announced the development of the “Juniper decline” has commenced (SPR)
Sayona released a 44pg presentation covering the operational status of their North American Lithium project (SYA)
Xanadu reported PFS metallurgical test work, which recoveries projected at 81% copper & 80% gold from sulphide feed. Full PFS to be released shortly (XAM)
Sovereign commissioned an industrial-scale spiral concentrator at its testing facility (SVM)
Contango announced a US$19.5m cash distribution from its 30% of profits from the processing of Manh Choh ore from Campaign 1 (CTGO.NYSE)
Bowen Coking Coal shared a resources statement, with increases at Burton leading to a year-on-year increase in measured & indicated resources (BCB)
First Sentier have picked up a 5.15% stake in Regis (RRL)
Torque released a maiden MRE on their Paris gold project, 250koz at 3.1g/t (TOR) Is 250koz a coincidence?
High Grade It
Australia will open the door to the UAE's $2.5tn sovereign wealth fund to invest in the burgeoning critical minerals industry (AFR)
Zijin said it wouldn’t be deterred by the Canadian government’s measures to limit foreign involvement in its mining sector (Bloomberg)
Gold may face a minor, near-term setback if the Fed opts for just a 25-basis-point cut this week, according to Goldman Sachs (Bloomberg)
BlueScope Steel revealed an indicative plan on how it expects its giant Port Kembla steelworks to get to net zero, while warning on hydrogen (Australian)
Two oil refiners in China run by chemical conglomerate Sinochem were declared bankrupt, highlighting the headwinds older units face (Bloomberg)
Experts at Gold Forum Americas say short term consolidation may come, but gold is here to stay (MiningNews)
The US shipped a record 6.1Mt of thermal coal - used mainly for power generation and in industrial boilers - to Africa (Reuters)
Newmont said it’s on track to raise US$2b — if not more — from selling smaller mines and development projects (Bloomberg)
Zijin Mining’s Norton Gold Fields eyes a 20% production jump to 240koz, all from WA (West)
Nuclear power surpasses fossil fuels in South Korea's energy mix (OP)
Saudi Arabia announced three deals in three days as it looks to accelerate the expansion of its mining industry (Bloomberg)
Chevron’s boss Mike Wirth said the White House’s ‘attacks’ on natural gas threaten energy security for US allies & pushed up energy prices (FT)
A Zambia mines lobby has called on the government to halt reforms as they pose “an unprecedented threat” to investors rights (Bloomberg)
Wheelin’ n Dealin’
Rattlin’ the Tin
Foran Mining closed its second tranche of its C$360m financing, delivering C$71m and seeing Agnico with a 9.9% interest in the company (FOM.TO)
Sun Silver has raised $13m, taking in $8m @ 62c and a further $5m @ 80c, from Nokomis Capital (SS1)
Beacon announced a $10.3m entitlement issue (BCN)
Navarre announced a proposed recapitalisation of the business at 10c, seeking $4m to $6m, with a cornerstone committed for at least $1m (NML)
Undeveloped Gold Assets in Africa
As promised in yesterday’s episode, here’s Ally GC’s screen on undeveloped gold assets in Africa that meet the following criteria:
>1Moz resources
Asset is the company’s primary focus
Market cap >A$20m
Listed on ASX, LSE or TSX
Note this is a rough S&P screen so don’t hate us if we missed one! Hit us up if there are any others we should keep an eye on.
Since we prepared this list, Pasofino Gold said it received a C$101m cash offer to buy the company from an “unnamed arm’s-length party”, exclusivity period with this party ends Nov 7 and subject to DD, approvals etc.
Go African gold!
Word on the Decline
We did hear some second hand pub chat about Project Jubilee - is that what Luca is talking about?
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
Wall Street giant Apollo says rate cuts story is all wrong (AFR’s Chanticleer)
China records, Auto’s strategy, Lithium & Small Battery Start-ups (Recharge) A good update on all things battery-related
China's steel and iron ore sectors are in an apparent state of disconnect (Reuters op-ed)
What the majors said during the Gold Forum Americas’ super session (Kristie Batten)
Why EV investors are tracking Taylor Swift and swing state polls (FT)
Bonds and oil scream ‘recession’. Will stocks start to care? (AFR’s Chanticleer)
Strictly Boardroom’s 14 disagreeable statements of the future of critical metals markets (MiningNews)
A new poll shows that the percentage of voters willing to pay more for renewable energy has fallen, as cost-of-living pressures remain pervasive (CB)
Why trust is now at stake between business and the PM (Australian)
Today’s Top Tweet
If you’re following the Paladin-Fission deal twists (see yesterday’s show) then here’s a better theory than ours which would open up the the field of who Party 1 could be…
@TRAVmoneyofmine So what was this condition Party 1 demanded had to be meet for the deal but was deemed "outside of Fission's control"? Not sure if the permitting process would qualify as that, but perhaps first nation opposition to their permitting would?
— Awful Thoughts (@HorribleDisgust)
11:28 PM • Sep 17, 2024
Devil’s in the Detail
We got the tip-off about Summit Minerals’ Table 1 atrocities yesterday morning but the critique was too arduous for us to be bothered typing up in yesterday’s edition of this email. Thankfully an actual geologist did it on Linkedin instead!
Roland, I see you are #opentowork - how about a gig writing this column every morning?
Catch up on our latest episode
🟢Spotify | 🟣 Apple Podcasts | 🟥 Youtube
Reply