South32's Groote Eylandt expected to resume in Q3 FY25

Boss Energy finally get that first drum of Uranium

April 22, 2024

G’day GC #

The Pre-Start

  • South32 maintains guidance for FY24, with the exception of Australian manganese (obviously). Wharf operations and export sales at Groote Eylandt expected to resume in Q3 FY25, with studies underway to determine the required time and capital for restoration (S32). Net-debt decreased by US$154M to US$937M and stock is up 6%.

  • 29Metals have agreed a binding term sheet with Glencore for a US$50m offtake finance facility. Capricorn Copper insurers have also agreed to a further interim payment of $16m for the surface component of the claim (29m)

  • Boss Energy finally produced first drum of uranium at Honeymoon (ramping up to 2.45Mlb/yr). First production also expected within weeks at its 30% owned Alta Mesa project in South Texas, which will aim to add 0.5Mlb/yr to the output of Boss (BOE)

  • Delta Lithium end the quarter with $100m in the bank. Scoping study for Yinnetharra due Sep Qtr 2024 and scoping study underway for gold mining at Mt Ida, without mining the lithium until FID (DLI). Metallurgical testing of 3 composites completed for Mt Ida gold, highlighting low cyanide-solubility of copper (DLI)

  • Adriatic Metals transitioning to owner-operator at Rupice mine. Termination payment of US$11m payable to existing contractor, aided by a US$25m short-term loan facility provided by Orion Mine Finance (ADT)

  • Mayur Resources executes a US$155 million (A$235 million) debt financing package with Appian for the Central Lime project in PNG (MRL)

High Grade It

  • Minerals Council chief Tania Constable warned against “short-lived sugar hits” from Labor’s Future Made in Australia plan (The West)

  • Pilbara Minerals boss Dale Henderson highlighted a “very inefficient” market for lithium, with Chinese whispers fuelling uncertainty (The West)

  • Vale Indonesia shareholders approved a rights issue plan alongside Sumitomo to sell 14% of the unit to MIND ID, fulfilling divestment requirements (Mining.com)

  • Eyes are on the US and its attempt to shake China’s rare earth’s dominance, with the price down 63% since the start of 2022 (FT)

Rare earth materials production by country

Rare earth materials production by country

  • The IMF warned a subsidy race with the US & China would harm Europe’s ailing economy, urging it to avoid protectionist policies (FT)

  • Glencore & Trafigura are moving to withdraw large volumes of aluminium from the LME from Russian sanctions (Mining.com)

  • The oil market shrugged off Israeli strikes on Iran on Friday, suggesting investors confidence that the action won’t escalate (FT)

  • The copper price rally is only just gaining momentum, after a 16% surge in April, according to a BMO Capital Markets note (Mining.com)

  • China is front and centre in gold’s record-breaking rally, with central bank buying for 17 straight months (Bloomberg)

Wheelin’ n Dealin’

  • According to Dataroom, it’s widely believed that Metals Acquisition Corp has Mount Isa Mines (owned by Glencore) in its midst (The Australian)

Rattlin’ the Tin

  • Helix Resources raising $2.3m via an entitlement offer at a 40% discount (with a 1 for 2 attaching option). Funds going towards drilling 6 Cobar copper targets (HLX)

Word on the Decline

  • Reading the latest Dataroom column (see here) on Spartan Resources recent capital raising has done very little to persuade us otherwise on our views of where the source of information comes for The Australian. Certainly a bit of talking down is being done.

Someone is certainly interested in talking down Spartan

Someone is certainly interested in talking down Spartan

In the Weeds

  • Indonesia’s sovereign wealth fund is focusing on the battery materials supply chain with a US$1b investment plan (FT)

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Today’s Top Tweet

Devil’s in the Detail

Great Boulder Resources opt for the more conventional “50g lead collection fire assay” method in their latest exploration results. #bringbackthebagofdicks

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