Osisko Flies on Gold Fields Deal

Speculation swirls around Greenbushes while BHP fights unions

August 13, 2024

The Pre-Start

  • Cokal to develop an underground coal operation at its BBM met coal mine with mining contractor PT Bersama Indonesia (CKA)

  • Bowen Coking Coal copped a 29D from Iolite Partners to remove Nick Jorss and Neville Sneddon from the board and appoint Robert Leitz (BCB). BCB reckons the 249D notice is “defective”

  • Silver Mines advised that the Court of Appeal will hand down its judgement relating to the Bingman case on August 16th (SVL)

  • Geopacific increased its MRE at Woodlark to 1.67Moz @ 1.07g/t, with the vast majority in the measured & indicated categories (GPR)

  • West African shared grade control drilling results from Kiaka South, which will contribute ounces in the first 18 months of production (WAF)

  • Galena’s concentrate production exceeded 10kt in July, as operations show an improvement. CBH & Toho Zinc paid US$15m, reducing Abra debt while Tony James resigned, effective August 31st (G1A)

  • Viridis has picked up additional tenements near its Colossus project, which will be explored & included in the next resource update (VMM)

  • Strike Energy was awarded 85MW of certified reserve capacity in the interconnected system by AEMO for 2026. FID in Nov 2024 (STX)

  • Frontier Energy secured certified reserve capacity for its Waroona project (FHE)

  • Mayur Resources shared that Stage 2 of the whark construction at Kido (cement & lime) is underway, completion targeted at late CY24 (MRL)

  • Great Boulder released AC results from Mulga Bill North, confirming the continuity of mineralisation over 400m from 40m below (GBR)

  • Blackrock notched up its Bellevue stake to 11.6% (BGL)

High Grade It

  • Gold Fields Osisko takeover hands it full ownership of the Windfall gold project, currently a 50:50 JV with Osisko (Bloomberg)

  • BHP & union leaders at the Escondida operation in Chile are sitting down for one last session, offering US$28.9k per employee bonus (Bloomberg)

  • Woodside is the worst performing large cap stock in Australia over the past year, down 33.5% (CB)

  • Analysts are perplexed why Australia’s key export, iron ore, is still trading around $US100 a tonne despite China’s property crisis (AFR)

  • Zambia closed its border with the Congo, blocking a key copper trade route (Mining.com)

  • Gold steadied ahead of key US data prints this week, with traders focused on the Fed’s pivot to monetary easing (Bloomberg)

  • 40% of Biden’s major IRA manufacturing projects have been delayed or paused, accounting for US$84b of initiatives (FT)

  • Two of the nation’s largest superfunds, Aware & Rest Super, appear to be facilitating bets against the success of LTR & LYC (West)

  • Chevron is seeking drilling clearance to replenish supplies from Australia’s biggest LNG development (The Australian)

  • WA premier Roger Cook has backed unions seeking to re-establish themselves in the Pilbara iron ore industry (AFR)

  • ‘Unambiguous step backwards’: Business Council boss Bran Black blasts unionisation threat at BHP Pilbara sites (West)

  • Slow approvals are risking the next mining boom (AFR) A key takeaway from our time in Kal

  • Bowen Coking Coal chair Nick Jorss hit back at a move to unseat him by a Swiss fund (The Australian)

  • Asra Minerals is seeking to sell Tarmoola pastoral lease to Red 5 to boost cash balance (West)

  • Barrick is looking for investment opportunities in Canada, according to CEO Mark Bristow (Bloomberg)

MMTS

Wheelin’ n Dealin’

  • Gold Fields has agreed with Osisko Mining to buy the company for C$4.90/share in cash, totalling C$2.16b (EV of C$1.48b) (GFI.JSE)

  • Dataroom reported continued speculation over the sale of Albemarle’s 49% Greenbushes stake, with IGO naturally interested (The Australian)

  • Metal recycler Sims has liquidated $435m worth of assets to help it survive the toughest conditions for the industry in a decade (AFR)

  • Dynamic Group reiterates its “accept” recommendation regarding the on-market takeover from Australian Meat Industry Super, who now hold 61.6% (DDB)

  • A Marathon Oil shareholder sued to block its proposed acquisition by ConocoPhillips, claiming the US$17b deal “significantly undervalues” the company (Bloomberg)

  • Stanmore has completed the acquisition of Eagle Downs from S32 & Aquila (SMR)

Rattlin’ the Tin

  • Macmahon finalised an increase to its existing $250m syndicated debt facility and added a new $80m tranche (MAH)

  • Volt Resources is in trading halt pending a capital raising (VRC)

Word on the Decline

  • Gold Fields C$2.16b takeover of Osisko to consolidate ownership of the Windfall gold project in Québec, Canada (currently a 50:50 JV) has us guessing at what this could mean for for Gold Road

  • Will the Goldfields crew keep the M&A ball rolling and wrap up 100% ownership of Gruyere (also currently a 50:50 JV) as well? Time will tell…

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In the Weeds

  • On the front line of the battle against illegal Amazon gold mining (FT)

  • The price of iron ore has dropped for a sixth consecutive week as China's steel sector continues to struggle (Reuters op-ed)

  • Platinum Documentary: Mining, Science and History (YouTube)

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