Resolute Agrees US$160m Settlement with Mali

U stocks jumped on Russian ban, Glencore talk up coal & talk down Aussie nickel

November 18, 2024

The Pre-Start

  • Resolute has made an initial US$80m payment to the government of Mali with another US$80m expected in the coming months as details of a new Protocol with the government are expected to be finalised. The three employees remain detained in the country (RSG)

  • New Hope reported 2.7Mt of coal sales, generating $304m in EBITDA (up 41% QoQ), & realising a sales price of A$188/t. FY25 guidance is for 29% higher coal sales (~11.2Mt) (NHC)

  • Westgold has increased the resource at Bluebird - South Junction to 15Mt @ 2.9g/t for 1.4Moz with an updated reserve due next quarter (WGX)

  • Hastings has amended the Equator loan notes to release their security & leave them unsecured, while Wyloo agreed to withdraw their default notice (HAS)

  • Red Hill has decided to pay a 30c, fully-franked special dividend to its shareholders (RHI) separately its AGM is at 10am today

  • Similarly, Indiana Resources will pay a special dividend of 5c unfranked to its shareholders following Tanzania’s payment of $60m of $90m payable (IDA)

  • Santana Minerals advised that the NZ gov’t passed the second reading of the fast-track approvals bill, with it expected to pass before year end (SMI)

  • Hawkes Point has trimmed $75m from its Ora Banda holding, leaving the private equity group with a 31.4% interest (down from 37.6%) (OBM)

  • Warriedar has added to its Ricciardo resource which now boasts 467 koz @ 1.6 g/t Au open-pit plus 480 koz @ 2.0 g/t Au underground gold resource (WA8)

  • Cokal Coal find itself in a trading halt “concerning a strategic partnership with respect to coal sales and distribution, transport infrastructure and finance” (CKL)

  • Ionic rare earths shared the economics from a feasibility study on a UK magnet recycling business, with an NPV7.5 of US$502m & 43% IRR (IXR)

  • Exploration updates were shared by Kingston, Metals X, & Aurum

High Grade It

  • MinRes admitted that it should’ve informed shareholders about a decade-long rental relief scheme involving companies linked to Ellison’s daughter (AFR)

  • Uranium prices gained US$4 to US84/lb after Russia imposed temporary restrictions on the export of enriched uranium to the United States (Reuters)

  • Aluminium on a surge, up 5% overnight, while copper stops falling after China cancels tax incentive (MiningNews)

  • The NSW government has become an international outlier in its refusal to accept that coal will be needed through the energy transition, said Glencore’s CEO (AFR)

  • Funds’ bullish wagers on gold fell to the lowest in more than 3 months after Trump’s decisive victory (Bloomberg)

  • Glencore is pessimistic about the likelihood of a revival in Australia’s nickel industry when it faces fierce competition from Indonesia (Australia)

  • Trapped illegal gold miners hold out against police in South Africa in abandoned mine shafts (FT)

  • Swedish battery maker Northvolt is scrambling to pull together emergency funding after a previous plan fell apart (Bloomberg)

  • Trade war worries to grip the ASX as world leaders mull Trump 2.0, with Australia being collateral (AFR)

  • Australia’s cashed-up coal miners have halted contributions to an industry decarb fund because of a perceived lack of projects to spend the money on (AFR)

  • Santos must show how it can bolster production in the medium term without spending a significant amount, analysts say (Australian)

  • Strike Energy Chair John Poynton has said WA is the perfect place for Asian data centres, with abundant gas, solar & wind (AFR)

Wheelin’ n Dealin’

  • Compass Minerals is in talks with private-equity firms to sell itself, after an aborted lithium-mining project hit the company, with shares rising 30% on the news (Reuters)

  • EQ Resources has agreed to acquire Tungsten Metals Group, the largest ferrotungsten plant ex-China for A$13.5m (EQR)

  • Meanwhile, $63m capped Tungsten Mining is in a trading halt pending a “potential acquisition agreement” (TGN)

  • Marimaca Copper, a Canadian copper developer with a Chilean asset, which is capped at C$460m, has filed paperwork to list a CDI on the ASX (AFR)

Rattlin’ the Tin

  • Labyrinth Resources is in a trading halt to raise $15m while executing a deal to acquire Mulwarrie from Genesis, who’ll become a 7% shareholder (LRL)

  • ERA completed its entitlement offer, raising $766m, with a 57b share shortfall being allocated today (ERA) Little surprise on the 87% take-up of entitlements

  • Pan Asia Metals says it has secured a staged $35 million commitment from Global Emerging Markets Group (PAM) and PAM is capped at $12 million, huh?

Word on the Decline

  • In the last year, mineral sands producer Sheffield’s share price has fallen 70% despite the company theoretically climbing the Lassonde curve

  • We can’t help but wonder if there’s more than meets the eye at Thunderbird, noting Sheffield’s JV partner provided a US$14m prepay to the JV amid a deferment of zircon concentrate shipments

  • We sure hope the challenges are resolved, noting its peer Strandline remains stranded and operating cash flow is still negative for them…

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In the Weeds

  • Industrial and Commercial Bank of China (John Hempton) A necessary 30-second read for those interested in China

  • Glencore, BHP & Co’s $9.4b wealth transfer now just part of life (AFR Chanticleer)

  • Restart of Three Mile Island tests US appetite for nuclear revival (FT)

  • Rinehart’s right-hand woman still partying at Mar-a-Lago (AFR’s Rear Window)

  • The ‘Drill, Baby, Drill’ Mining Magnate Cozying Up to Trump (WSJ) It’s Gina Rinehart, investing in US mining assets & wants to bring MAGA ideals to Australia

  • Market soars for the finest remaining Argyle diamonds (FT)

  • Chris Ellison’s wife is inside out at MinRes (AFR’s Rear Window)

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Today’s Top Tweet

Devil’s in the Detail

Can someone please help us reconcile how MinRes is guiding to 9.5% royalties from its Onslow iron-ore project?

When we count up the royalties we know about, there’s no way of getting to 9.5%… State government royalty = 7.5%, Red Hill Minerals royalty = 0.75% and Taurus’ recently acquired royalty from Anglo American = 2.5%. All up that’s 10.75%. What are we missing here?

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