Mitsui Splashes $8.4B on Rhodes Ridge Stake

Glencore, AngloGold & Fortescue disappoint with results, Whitehaven lock in payment date

February 20, 2025

The Pre-Start

  • Rio Tinto’s full-year results showed net cash from operations of US$15.6b and US$5.5b in free cash flow. It’ll pay out a final dividend of US$2.25 a share (RIO)

  • Fortescue reported a US$1.5b profit for the half while announcing a 50c per share dividend (65% payout of NPAT). Guidance for energy capex was revised down to US$400m (FMG) Stock down 7%

  • Glencore reported adjusted EBIT down 33% to US$6.9b, with net debt standing at US$11.1b following recent deals. Metals & minerals trading compensated in part for a normalisation of energy earnings in the marketing business. Overall NPAT came in a US$1.6b loss (GLEN.L) Down 7% to a 52-week low

  • Anglogold Ashanti reported free cash flow of USS$942m while it implemented a new dividend policy, paying out 50% of free cash flow, with a 50c per annum base. Midpoint guidance of ~3.1Moz @ US$1,175/oz was provided (ANG.JSE) Down 4%

  • Sandfire announced improved cost guidance at Motheo as the asset scales up, while net debt improved to US$288m over the half. Underlying earnings totalled US$49m (SFR)

  • Whitehaven generated $922m in cash from operations over the half, while confirming the Blackwater sell down date, ahead of its first US$500m deferred payment to BMA in early April (WHC)

  • IGO reported a $782m loss, after group revenues of $284m & numerous writedowns. TLEA impairments totalled $525m, while it de-recognised a $58m deferred tax balance. The exploration business recorded a $115m impairment (IGO) Down 6%

  • Incoming BHP chair Ross McEwan purchased ~$1m shares on-market (BHP)

  • Wesfarmers reported that it closely monitored for any indications of a Mt Holland impairment, concluding the asset wasn’t impaired (WES)

  • Pilbara recorded a statutory half-year loss of $69m on $426m in revenue, with cash reducing by $455m over that half. Cyclone Zelia interrupted production for 6 days, but guidance remains (PLS)

  • Capstone Copper produced 54kt of copper for the quarter at a C1 cash cost of US$2.56/lb. Adjusted net income was US$46m on US$132m of operational cash flow (CSC)

  • Coronado posted a net loss of US$109m on US$2.5b in revenue, with US$250m spent on capex. It’ll pay a 0.5c dividend for the half (CRN)

  • Genesis reported H1 FY25 results including EBITDA ~$154m and NPAT ~$60m. FY25 production & AISC guidance reiterated, $120m corporate revolver facility in place, continued focus on organic growth (GMD)

  • Regis reported half-year revenues of $777m & an $88m profit, with no dividend declared. Tropicana’s MRE was updated to 5.4Moz while reserves rose to 1.9Moz (RRL)

  • Perseus has been diluted down to a ~17.9% stake in Predictive post PDI’s recent strategic placement (PRU)

  • Sheffield provided a Thunderbird update, with weather events leading to road closures, resulting in constrained fuel supply and a suspension of mining & processing. Ilmenite concentrate guidance remains ~170kt for the quarter (SFX)

  • Image reported first heavy mineral concentrate production was achieved at Atlas, as part of early-stage commissioning. Guidance to be provided in March Q (IMA)

  • Firebird announcement it has finalised 4 non-bind MoU’s for supply of manganese products with Chinese battery players (FRB)

  • American Rare Earths released metallurgical test work for Halleck Creek ore, claiming the results validate a simple early-stage beneficiation process (ARR)

  • Winsome shared drill results from Sirmac while picking up more ground (WR1)

  • Lowell Resource Fund emerged as a substantial holder of Carnavale (CAV)

High Grade It

  • Sanjeev Gupta’s Whyalla steelworks will be handed to administrators after the SA gov’t moved to seize control (AFR)

  • Mining contractor NRW is in trading halt in the wake of the collapse of Sanjeev Gupta’s Whyalla steelworks (NWH, West)

  • Chris Ellison has faced down a market increasingly bearish about the future of the miner he founded, declaring it is up to the next chairman whether the company needs to raise more money to survive (AFR)

  • Ellison downplays haul road damage, insisted “no design fault” with newly built Onslow haul road despite spending $230m to fix (BN)

  • Glencore boss Gary Nagle said the company was assessing whether other exchanges were “better suited to trade our securities” after being pressed on the point again (FT)

  • Glencore said its sprawling coal business should not be an impediment to any potential deal with Rio Tinto (Bloomberg)

  • Fortescue and the state of WA have been hit with a $1.8b native title claim in an extraordinary escalation of a long-running battle over the Yindjibarndi lands (AFR)

  • MLG secures a $75m 3-year bulk haulage contract with Westgold (West)

  • Orano said it’s considering reviving the mothballed Trekkopje uranium mine in Namibia after a rebound in price (Bloomberg)

  • Rio Tinto will pay its lowest dividend in seven years and cut costs at its Australian iron ore division after full-year profits fell by 8% (AFR)

  • Rio has urged shareholders to reject an activist investor’s proposal to abandon its primary listing in London and consolidate its shares in Australia, arguing the move is not in the mining group’s “best interests” (FT)

  • Ivanhoe Mines unveils independent Phase 2 and 3 expansion studies for Platreef, one of the world’s largest undeveloped precious metals deposits (JMN)

  • The Yindjibarndi Aboriginal Corporation has upped its compensation claim against FMG to $1.8bn, over the alleged cultural damage caused by the miner’s Solomon hub (BN)

  • The immediate future of a Rio Tinto-backed Tomago aluminium smelter that underpins the NSW energy market hangs in the balance as 560 workers dig in for a fight over pay (Australian)

  • MinRes shares plummet to 4 year lows after $807 million half-year loss and guidance downgrade (West)

  • AngloGold Ashanti posted a $1b profit last year as record bullion prices helped the miner rebound from a loss in 2023 (Bloomberg)

  • EU seeks to “immediately engage” with LNG suppliers to try lower energy prices, draft Commission docs show (Reuters)

  • Water plant for Talison Lithium’s Greenbushes project in contract row (BN)

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Wheelin’ n Dealin’

  • Japanese trading house Mitsui said on Wednesday it would acquire a 40% interest in the Rhodes Ridge iron ore project for US$5.34b, purchasing the stake from 2 separate entities previously held by Wright Prospecting (Reuters, RIO)

  • Reclusive iron ore magnates the Bennett and Wright families are $8bn wealthier after agreeing to sell the majority of their stakes in Rhodes Ridge to Mitsui (AFR, Mitsui)

  • Whitehaven reported its 30% sell down of Blackwater will be completed on March 31st (WHC)

  • The scheme to merge Horizon Minerals and Poseidon Nickel has been implemented (HRZ)

Rattlin’ the Tin

  • Mayur Resources announced a two-tranche $80m placement at 28cps as part of the broader funding package for the development of Stage 1 and 2 of the Central lime project (MRL)

  • Far East Gold announced that Tranche 3 funds from Xingye have been received, totalling just under $15m (FEG)

Word on the Decline

  • On the back of the news that Mitsui is buying 40% of Iron Ridge in the Pilbara, we are reminded of another rumour we heard recently regarding the Japanese trading giant

  • We think they will end up owning a minority stake in First Quantum’s Zambian mines from the lengthy sale process the copper miner has run on the assets

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In the Weeds

  • Chris Ellison is on the MinRes road to nowhere (AFR’s Rear Window)

  • Australia still betting on rare earths (AFR)

  • Glencore boss Gary Nagle says the mining industry has been a ‘whipping boy’ in Australia in recent years, & warned over higher costs (Australian)

  • Rio Tinto just pulled off a little miracle (AFR’s Chanticleer)

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Today’s Top Tweet

Devil’s in the Detail

We think Mitsui’s presentation on the acquisition of 40% Rhode’s Ridge is pretty fascinating. US$5.3 billion for a 40% stake in a mine that won’t be producing until 2030, but this deck says a lot about how the Japanese conglomerate looks at this market

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