Newmont Deal Sees Sales Top US$3.9b

AFP raid embattled AVZ Minerals while WHC's reported to have cooled on Kestrel

December 09, 2024

The Pre-Start

  • Lotus increased its Letlhakane uranium project MRE to 142.2Mt at 363ppm U3O8 for 113.7Mlb (LOT)

  • WA1 shared met results from 3 high-grade drill holes taken from the NE zone of Luni. The locked cycle flotation achieved a 58% recovery for a 50% Nb2O5 product (WA1)

  • Image advised its Atlas project was recently impacted by bush fires, no injuries and only minimal damage to equipment & infrastructure (IMA)

  • Saturn Metals advised a site incident occurred resulting in the fatality of a drilling contractor employee (STN) Our thoughts go out to all impacted

  • Turaco secured rights to expand the Afema project area by 30%, paying US$75k upfront (TCG)

  • Southern Cross shared a 186m @ 8.8g/t (uncut) intercept, including 2,541g/t over 0.5m at Apollo (SXG)

  • Elevate Uranium released a company update, including results from drill programs at Hirabeb & Namib IV (EL8)

  • Australian Rare Earths was awarded a $5m government grant for its Koppamura project (AR3)

  • Patronus Resources has appeared with a 6.8% stake in Aurumin (PTN) a few weeks after PTN’s MD joined AUN’s board….

  • Labyrinth shared infill and some extensional drilling, hit gold mineralisation at the Cheer prospect as well as at Sovereign (LRL)

  • Boab Metals is in halt pending an offtake & project finance agreement (BML)

  • MMAM lifted its Bannerman stake from 10.7% to 11.8% (BMN)

High Grade It

  • China's central bank resumed buying gold for its reserves in November after a six-month pause (Reuters)

  • Antofagasta, Jiangxi agree major drop in 2025 copper TC/RCs, sources say (Reuters)

  • The CSIRO has stepped up its attack on the price of Dutton’s nuclear ambition, claiming the cost of large-scale power plants far exceeds firmed renewables over the long term (Australian)

  • Rio accepted recommendations for urgent work & more monitoring at Bougainville as Panguna study warns of health & enviro risks (MiningNews)

  • German Chancellor Olaf Scholz is not ruling out Berlin potentially taking a stake in the steel business of conglomerate Thyssenkrupp (Reuters)

  • A British dealmaker is suing Barrick over claims he engineered its US$6bn tie-up with Randgold only to be “pushed out” of the deal at the last minute (FT)

  • The Australian gov’t will have the power to prevent sales to China after stumping up an additional $400m to help Iluka (Australian)

  • Gina Rinehart to pay big bonuses to Roy Hill mine workers, plus a huge Christmas giveaway (Australian)

  • Australian Federal Police have raided the West Perth office of embattled lithium hopeful AVZ Minerals (West)

  • Gold steady as expectations of US interest rate cut bolstered (MiningNews)

Model Answer

As usual, Model Answer does the hard yards so mining CFOs can stay effective. Check out their CFO Labs resources here. You don’t have to be a CFO…

Wheelin’ n Dealin’

  • Whitehaven bowed out of the sale process to buy the US$3b+ Kestrel mine, leaving Stanmore in pole position when it gets underway next year (Australian)

  • Newmont agreed to sell Cripple Creek & Victor in Colorado to SSR Mining for up to US$275m in cash. $100m due on closing, with 2x US$87.5m contingent. Newmont maintain closure liabilities if costs exceed SU$500m (NEM)

  • Capricorn acquired the Sylvania project tenements (contiguous to Karlawinda) from Latitude 66 for $1.5m, paid in shares, with a 1% royalty on gold (CMM)

  • Lithium Energy advised amended terms to its US$63m sale of its Solaroz lithium project to CNGR (LEL)

  • De Grey has advised Kalamazoo that it has elected to extend its option period to 4 Aug 2025 to allow for further met work (KZR)

Rattlin’ the Tin

  • Vulcan announced that EFA has conditionally approved a €120m loan commitment for its Phase 1 Lionheart project (VUL)

  • NAIF has tipped another $5m to troubled minerals sand play Strandline under the existing super-senior facility (STA)

  • Kingston Resources has raised $8.4m to fund exploration and working capital (KSN) and continue to hope to sell their gold project in PNG

  • Iris Metals has raised $8m including participation from Stardust Power (IR1)

  • EQ Resources is in a trading halt, pending details of a capital raising (EQR)

Word on the Decline

  • Apparently Gold Road would be interested in swapping their 17% stake in De Grey for a worthy asset. Any takers?

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

  • Copper & Uranium: The Coming Divergence (Goehring & Rozencwajg)

  • Mali: is the risk worth it? (MiningNews)

  • Have lithium miners cut enough supply? (MiningNews)

  • Taxpayers have just made a $1.65b bet on a rare earths green premium (AFR Analysis)

  • Who Is Behind Gold’s Crazy Rise? (Bloomberg video)

  • The crucial role played by smelters in the supply of critical minerals (Livewire) A year old now, but worth a revisit given recent gallium/germanium news

  • Rio Tinto won’t easily ditch its dual structure, despite its lack of style (FT)

  • Have global emissions peaked? (Economist)

Were you forwarded this email from someone else?

Today’s Top Tweet

Devil’s in the Detail

Consider the blue line to be the merger ratio for the DEG/NST deal. After trading at terms for the first few days, an appropriate discount has emerged to entice the arb funds. We still think the odds of an interloper in this deal are thin.

Catch up on our latest episode

🟢Spotify | 🟣 Apple Podcasts | 🟥 Youtube

Mining Management and Industry Changes (Tucker & Dahmer part 2) (67 min)

All information in this newsletter is for education and entertainment purposes only and is of general nature only. The Money of Mine team 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. Information relating to our Privacy Policy is available online here.

Reply

or to participate.