Rumours Flow in the Kalgoorlie Pubs

Blood on the streets in global markets, commodities hold on

August 06, 2024

The Pre-Start

  • Patriot shared its updated MRE, including 80.1Mt @ 1.44% Li2O in the indicated category (CV5 + CV13) (PMT). The exploration target outlined potential for an additional 146 to 231Mt at 1.0 to 1.5% Li2O (PMT)

  • MACA signed a right of first refusal over any new Emerald mine developments for 5 years (EMR)

  • Liontown revealed it had completed 4,000m of development to date, and that 145 tonnes of spod had been dispatched to Geraldton (LTR)

  • Flano’s Arrow Minerals released an exploration target for Hematite Fines of 281 - 716Mt at 33 - 46% Fe (AMD)

  • The boss at Boss Energy, Duncan Craib, executed ~$900k of ZEPOs, (BOE) Mind you, the Boss share price has almost halved since he sold +$21m stock back in May…

  • Polymetals updated their mine plan for the restart of Endeavor silver-lead-zinc mine: NPV8 $414m, IRR 345% over a 10yr mine life (POL)

  • Fidelity upped its stake in Paladin to 10.1% (PDN)

High Grade It

  • Wall Street’s night of fear could have been much worse (AFR’s Chanticleer) Dow Jones down 2.6%, Nasdaq down 3.6%, Japan’s Nikkei down 12.4%

  • Deutsche sold a portion of a $600m loan being used to finance the Illawarra acquisition to private credit funds, including Regal (Bloomberg)

  • Regis’ chief Jim Beyer revealed the company is open to a JV partner at McPhillamys to “de-risk” the project (BN)

  • Bellevue Gold’s Darren Stralow defended the company’s move to raise $150m last month, says “lenders did not apply pressure to tap the market” (DataRoom)

  • Oil extended losses from the lowest close in seven months as a selloff in wider financial markets countered rising tensions (Bloomberg)

  • Gold prices drifted higher on Monday, aided by worries that the United States could be headed for a recession (Reuters)

  • Esso faces substantial decommissioning bill in Bass Strait as partial plan shelved (The Australian)

  • EU capitals set to back tariffs on Chinese electric cars, trade chief says (FT)

  • Peter Dutton said overturning a ban on uranium mining would take WA “to the next level” (West)

  • Former Glencore exec charged with bribery, UK investigators charge former oil boss (MiningNews)

  • Former WA governor Kim Beazley said building a strong domestic rare earths industry will enhance US ties, while ducking nuclear Q’s (West)

  • Delaying the closure of Origin’s Eraring coal power station would prevent a surge in household power bills & reduce blackout risk (AFR)

MMTS - Tenement Service legendss

Wheelin’ n Dealin’

  • Woodside to buy OCI Global’s ‘blue’ ammonia project for US$2.3b (FT)

  • Supreme Court of WA approved the Scheme between Macmahon and Decmil, deal to complete mid-August (DCG)

  • In response to the recent AFR article, Galan advised it hasn’t received a takeover bid but rather an unsolicited, conditional NBIO from EnergyX to potentially buy Galan’s Argentinian lithium assets. They’re currently negotiating terms of a CA (GLN)

  • Dynamic D&B’s board have recommended that shareholders accept the on-market takeover bid from Australian Meat Industry Super (DDB) Still one of the strangest deals we’ve seen in recent history…

  • St George acquired a portion of Araxa niobium-REE project in Minas Gerais, Brazil, immediately adjacent to CBMM’s niobium mine, raised $21.3m to fund the deal and exploration (SGQ)

Rattlin’ the Tin

  • KGL completed their entitlement offer, raising $8.1m (KGL)

  • The Queensland Critical Minerals & Battery Technology Fund will commit up to $5m as a cornerstone investor in Velox Energy Materials (CB)

  • Waratah has raised $5m following recent hits at its Spur project (WTM)

Word on the Decline

Here’s the full dose of Word on the Decline we picked up from the pub last night:

  • Mark Creasy has apparently purchased the secured debt in Calidus from Macquarie… We hear it wasn’t too far from 100 cents on the dollar

  • Northern Star may be thinking about a block cave at Mt Charlotte…

  • Reports from Gold Road’s site visit to Gruyere have been a bit concerning. Words used to describe the pit operations included “like a school pickup”…

  • Leading on from that, it has been confirmed to us that ‘Gold Road is in play’. With Regis? We are not so sure. But they are in play…

  • Magnetic Resources is trading like it’s about to be bid but there are still mixed views on both the resource and the (potential) acquirer. Genesis and Gold Fields both come up in these conversations…

  • The market getting smashed this week has killed a lot of deals

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

  • Battery EV sales slump as cautious buyers opt for hybrids (AFR)

  • Gold's run to record high may crimp demand (Reuters op-ed)

  • ASX investors have been caught out by a brutal bear panic (AFR’s Chanticleer)

  • The Gigantic Goldmine 14,000 Feet In The Air (YouTube doco) A look at the enormous Grasberg mine in Indonesia

  • De Beers’ diamonds are no longer Anglo American’s crown jewels (The Australian)

  • Diggers & Dealers lavishes riches upon favoured scribes (AFR’s Rear Window)

  • The Reading Obsession (The Alchemy of Money Blog) A classic on Buffett and balanced learning

  • Rio Tinto-backed start-up seeks funds for lithium breakthrough to cut reliance on China (FT)

Were you forwarded this email from someone else?

Today’s Top Tweet

Devil’s in the Detail

Another Diggers presentation gaff to enjoy, this time at the expense of Meteoric

Meteoric’s US$1.235m project

Meteoric’s US$1.235m project

We also find the timing of Meteoric’s news flow interesting of late. A $27.5m placement, followed by an updated resource just over a week later, just in time to cleanse the placement shares.

We think its reasonable that placement participants would want to know something material like this prior to participating in the raise?

Announcement

Meteoric news flow this month

Exploration legend Mark Bennett agrees based on his Linkedin post yesterday too.

Bennett

Following on from yesterday’s spelling faux pas, we see Ora Banda has released an updated Diggers preso this morning.

Announcement

“Asses” now back to the intended “Assess”

On another note, for those curious about the commodities that are dominating Diggers presentations, here’s a chart, including changes over the past 4 years

Companies by commodity at Diggers

Companies by commodity at Diggers

Catch up on our latest episode

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We Answer an Open Q&A (55 min)

  • 0:02:07 What should RRL do?

  • 0:07:37 Is BGL a target

  • 0:14:24 What next for ERA

  • 0:18:42 The uranium bear case

  • 0:21:00 Implications of job cuts

  • 0:23:49 Will lithium have another day in the sun?

  • 0:27:12 Ultimate resource management team

  • 0:30:50 Will BHP sell West Musgrave

  • 0:35:47 What's happening with copper

  • 0:39:13 Strategic Glencore M&A

  • 0:43:16 Interview bucket list

  • 0:45:22 Lifestyle Company

  • 0:47:50 The best pubs

  • 0:50:51 Things we've learnt and Things we wanna learn

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.

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