Stanmore Bounces on Bumper Div

Perenti looks for strong second half as investors jump ship, Warrior go big at Blue Creek

February 24, 2025

The Pre-Start

  • Perseus net cash & bullion lifted to US$704m over the half, on operating cash flows of US$248m. It’ll pay a 2.5c interim dividend (PRU)

  • Stanmore declared a final dividend of US6.7c after it generated underlying EBITDA of US$700m over the year. Midpoint guidance for 2025 is 14.1Mt of saleable production at FOB cash costs of US$92/t with US$110m of capex (SMR) Up 6%

  • Perenti’s EBIT(A) lifted 3% (but missed expectations) for the half year to $155m while generating negative free cash flow of $12m. It declared a 3c interim dividend, while it cancelled 1.3% of its shares from an ongoing buyback (PRN) Down 19%

  • Warrior Met Coal provided an update on the in-construction Blue Creek mine, electing to lift nameplate capacity by 25% to 6m short tons per year, with the first long wall expected by Q2 2026. There’ll be no change to capex (HCC)

  • GR Engineering reported HY25 revenue of $272m, EBITDA of $35m and will pay a 10c fully franked interim dividend (GNG) stock in the $3s for the first time

  • Predictive shared results from 41 holes, totalling 7km of drilling from the Argo area of Bankan. Intercepts included 5m @ 15.989g/t from 55m (PDI)

  • American Rare Earths updated scoping study over Halleck Creek outlined a 3Mtpa base case, delivering an NPV10 of US$558m & 24% IRR after capex of US$456m (ARR)

  • Syrah executed a binding 3-year agreement with Lucid for the supply of natural graphite AAM from its Vidalia facility. It’ll supply 7kt of material in aggregate (SYR)

  • Atrum Coal has filed a claim against the Gov’t of Alberta for de facto expropriation of its Elan leases. Trial commences April 28th (ATU)

  • Strandline has entered voluntary administration after negotiations over bridge financing broke down (STA)

  • Gil Clausen has joined the board of New World Resources (NWC)

High Grade It

  • Peter Dutton has suggested his proposed nuclear power plants would one day be privatised, as he rejected the idea of the Albanese gov’t taking an equity stake in the Whyalla steelworks (AFR)

  • The WA gov’t says damage to 249 heritage sites warrants $5m-$10m in compensation, setting a low bar on native title & compensation payouts (Australian)

  • South Africa’s state electricity utility will resume power cuts citing “another temporary setback,” raising suspicions as to whether a turnaround in its performance was sustainable (Bloomberg)

  • Rio CEO Jakob Stausholm is considering issuing new shares to improve Rio’s liquidity & relieve tensions within its dual LSE-ASX share structure (AFR)

  • Harmony Gold on Friday said a worker had died at its Mponeng mine, the world's deepest, after a seismic event (Reuters)

  • The Cook Islands said it has struck a five-year agreement with China to cooperate in exploring and researching the Pacific nation’s seabed mineral riches (Australian)

  • Collapsed cobalt play Jervois Global has hired a top law firm to help fend off shareholders pushing for an emergency meeting (Australian)

  • One of the few Russian companies left on any of the world’s major exchanges, Rusal, saw a more than 15-fold surge in trading activity this week as speculators bet on eased sanctions (Bloomberg)

  • Gas pipeline giant APA will expand its east coast gas grid to allow for a 24% increase in the volume of gas piped south from Queensland amid a worsening squeeze of gas in Victoria (AFR)

Wheelin’ n Dealin’

  • RPMGlobal has agreed to divest its advisory business to SLR for an enterprise value of A$63m, ~2x revenue and 8x NPAT (RUL)

  • Matsa is in trading halt pending an announcement regarding the disposal of its Lake Carey gold project (MAT)

  • Astral announced its takeover of Maximus is free from conditions, with the offer now unconditional (AAR)

  • Highfield Resources advised that its deal with Yankuang Energy has received Investment Canada Act approval (HFR)

  • China North Industries Corp, known as Norinco, has offered to adjust its US$1.4b offer to buy copper and cobalt assets owned by Chemaf SA by raising the Congo government's stake to smooth the path to a deal (Reuters)

  • Battery developer Pacific Green agreed a deal to sell off the first stage of its grid-scale storage project in South Australia to Palisade Investment Partners’ green energy vehicle (Australian)

  • India's state-run Coal India will establish a joint venture with an arm of France's EDF to build renewable power plants in South Asian countries (Reuters)

Word on the Decline

  • We might have a case of history repeating itself for one of the Namibian uranium developers

  • In 2008, Bannerman found itself in the crossroads of a lawsuit when Savannah Marble challenged the decision of the Ministry of Mines to award a mining licence to the uranium company on ground which overlapped with Savannah’s to mine dimension stones. Bannerman eventually stumped up $500k and 1.2M shares to Savannah in the shake-down (2024 Annual Report)

  • If this sounds familiar, that’s because Deep Yellow revealed last week that Tumas Stone has initiated legal proceedings in relation to the award of their mining license.

  • While we can’t find evidence of it, we have a suspicion that Savannah Marble and Tumas Stone are connected

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

  • The Berkshire Hathaway 2024 Annual Report - The importance of a stable currency, insurance risk growth & investing in Japan

  • This 17-year-old ad from Norilsk Nickel is phenomenal. It’s a shame we don’t see the same flavour in BHP’s boring TV ads… (YouTube)

  • It’s fashionable to be unhedged but quality management should be looking at options (MNN)

  • What an idle copper mine in Panama says about the green transition (FT Big Read)

  • Mining multinationals are learning to do business with juntas (Economist)

  • How a small group of businessmen helped WA win a $54b tax deal (AFR) the “worst public policy decision since Federation”

  • The Curious Case of Chinese Copper Consumption (GoRozen)

  • It’s time to retire the term “rare earths” (MNN)

  • Don’t believe the doomsayers – more rate cuts are on the way (AFR) An oped praising the RBA’s handling of inflation, predicting 100bp of cuts by early 26

Were you forwarded this email from someone else?

Today’s Top Tweet

Devil’s in the Detail

Arras Minerals has had a cracking start to the year. But they might be getting a touch ahead of themselves reporting gold equivalents in percentages!

Catch up on our latest episode

🟢Spotify | 🟣 Apple Podcasts | 🟥 Youtube

The Best Use of Capital in a Gold Bull Market (Jeff Quartermaine) (31 min)

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. Information relating to our Privacy Policy is available online here.

Reply

or to participate.