Pilbara Minerals wears 28% lower Lithium Price

Saudi Arabia's M&A Heats Up in Mining Space

April 19, 2024

G’day GC #

The Pre-Start

  • Pilbara Minerals’ average realised price in the March quarter was US$804/dmt (on an SC5.3 equivalent basis), 28% lower. Cash balance fell $362 million to $1.8 billion at quarter end on the back of lower prices and continued investment into P680 and P1000 (PLS)

  • Yancoal produced less coal and sold it for a lower price than last quarter, but still added $260 million cash in the March quarter (YAL)

  • Gold Road’s attributable production for the quarter was 32koz gold, the miner’s cash finished $3 million lower than Dec at $146 million (GOR)

  • Iluka is seeing signs of recovery in the titanium pigment market and is continuing to plea for a bigger government free kick to fund Eneabba’s blowout (ILU)

  • Capricorn has grown its reserve at Mt Gibson Gold Project to 1.83 Moz (CMM)

  • Perenti’s cost of capital climbs higher with its latest debt priced at 7.5%, partially refinancing its 6.5% debt notes (PRN)

  • Gina Rinehart’s remaining stake in gold producer, Catalyst Metals has been taken up by directors, senior management, and institutional investors (CYL)

  • Mayur Resources is in a trading halt pending an announcement in relation to the financing of its PNG Lime Project (MRL)

High Grade It

  • Alcoa expects to be mining the lower-grade bauxite from the Darling Range until at least 2027 (AFR)

  • BHP to decide on the future of its Nickel West business by August (ABC News)

  • Gina Rinehart has ambitions in Ecuador based on a recent series of investment (AFR)

  • Traders are already gaming the new Russian metals sanctions on the LME (Mining.com)

  • Productivity hit to BHP’s Queensland coal operations (AFR)

  • China may never again support global growth or commodities, particularly iron ore according to Macquarie strategist (AFR)

Wheelin’ n Dealin’

  • Whitehaven are apparently in advanced discussions with Japan’s second-largest steel producer, JFE Steel Corporation, to acquire a 10% stake in Blackwater (AFR)

  • Saudi Arabia nears $1 billion deal for stake in Barrick’s Reko Dig (Mining.com)

  • Saudi Arabia (again) is reportedly looking at taking a stake in First Quantum’s Zambian copper mines, together with BHP, Mitsui and Sumitomo (Mining.com)

  • Emerald increases relevant interest in Bullseye to 82% (EMR)

  • Perseus reaches compulsory acquisition of Orecorp with a 95% relevant interest (PRU)

Word on the Decline

We are hearing some scuttlebutt that there could be some consolidation in the listed royalty sector. The three big players (Franco-Nevada, Wheaton and Royal Gold) trade at ~2x NAV while the next tier trail by a distance. Rumour has it that two of Triple Flag, Osisko and Sandstorm may combine in a bid to chase the juicer multiples of the three leaders.

Largest listed royalty companies

Unsurprisingly, this M&A rumour does not involve the deal-less Deterra.

PS. If this section of the newsletter goes rogue over the next week, it’s because I (Trav) will be in Bali next week and Matty has gone rogue making up false deal rumours…

In the Weeds

  • A new report claims Indonesian nickel mining is causing severe environmental issues in Suluwesi (SCMP)

Were you forwarded this email from someone else?

Today’s Top Tweet

Devil’s in the Detail

A week ago, Vintage Energy came out with a market-sensitive announcement about rainfall in April:

ASX pings them for the cleansing notice released by Vintage Energy just two days earlier and says, please explain?!

Another wrist-slapping win for the mighty regulator it appears!

Disclaimer

All information in this newsletter is for education and entertainment purposes only and is of general nature only. The hosts of Money of Mine 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.

Reply

or to participate.