Whitehaven Impresses with Smooth Integration

Beach net debt expands, Yancoal prints cash & Anglo cuts diamond production

The Pre-Start

  • Whitehaven sold 16.4Mt in FY24 (6.5Mt June), with 59% of June revenue from met coal (expected to rise), ending with net debt of $1.3b (WHC)

  • Yancoal added $318m cash in the June quarter from 8.6Mt attributable coal sales (YAL)

  • Beach Energy produce 4.8 MMboe in Q4, up 6% qoq, with sales of $433m. Net debt increased $84m to $583m with Waitsia capex (BPT)

  • Aurelia updated on Federation, where underground development recommenced in early June & a 30ML sump dam is being utilised (AMI)

  • First Majestic produced 2Moz silver and 35koz gold in the June quarter (FR.TO)

  • Cerrado Gold produced 16koz gold from Minera Don Nicolas In Argentina in the June quarter (CERT.V)

  • Orezone produced 25koz from Bomboré, while advancing early works on its Phase II expansion after securing US$105m last week (ORE.TO)

  • Centamin released the DFS on its Doropo gold project in Côte d'Ivoire, set to produce 167koz average over its 10yr LOM, delivering NPV8 of US$426m and IRR 34% (CEY.L)

  • Aussie Super has picked up some more Lynas stock, up to 7.4% (LYC)

  • Yarra Capital offloaded some 29Metals shares, down to 7.6% in the struggling copper producer (29M)

High Grade It

  • Alcoa expects lower grades at its South West bauxite mines to cost it c. $15m next quarter while confirming its Kwinana curtailment (BN)

  • Westgold has moved a step closer to its merger with Canadian-listed gold play Karora, after its $1.2 billion deal was ticked off by FIRB (BN)

  • Gold miner Genesis announced it met the midpoint of its production guidance and has begun preparations to reopen its Laverton site (CB)

  • Twiggy says Element Zero execs burned bridges “like Nazis” (AFR)

  • Macquarie upgraded its price target on FMG following its restructuring announcement but warned it could erode its share price premium (CB)

  • Anglo warned De Beers will cut production further as a Chinese consumer pullback leaves the market facing a protracted depression (FT)

  • Mercedes and Stellantis are in discussions with Serbia’s government to invest in lithium-processing and EV battery production (Mining.com)

  • Australia’s LNG revenue slumped 25% in the last financial year despite export volumes holding firm (AFR)

  • Panama’s government said it’ll engage First Quantum to discuss the environmental impact of Cobre Panama (Bloomberg)

Wheelin’ n Dealin’

  • SPAC ACG Acquisition is buying a Turkish mine, which plans to start copper & zinc production in 2026, in a US$290m deal (Mining.com, FT)

  • Zimbabwe's state-owned Kuvimba signed a US$310m deal with a British & Chinese consortium for construction of a lithium concentrator (Reuters)

  • Alumina shareholders voted in favour of the scheme with Alcoa yesterday, CDIs of Alcoa will trade on ASX ~August 2 (AWC)

  • Sierra Rutile is in a trading halt pending an announcement relating to the status of a competing takeover (SRX)

Rattlin’ the Tin

  • Sihayo Gold reached an agreement with Provident Minerals for a working capital loan facility now totalling US$4m (SIH)

Word on the Decline

  • Has anyone actually read the terms of Cameco’s option to buy from Silex, at "fair market value", an additional 26% interest in GLE?

  • What if the valuation mechanism in that agreement has nothing to do with Silex’s $1.2 billion market cap? Hmmm

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

  • Timelines for new US mines are among the longest in the world, taking 29 years on average from discovery to production (FT)

  • EDF lost a bid to build at least two new nuclear reactors in Czechia, a major blow to Europe's only nuclear power plant builder (Reuters)

  • Fortescue’s hydrogen back-flip fails to become sugar hit it should be (AFR’s Chanticleer)

  • Andrew Forrest’s credibility gone along with Fortescue’s green hydrogen collapse (The Australian op-ed)

  • China's commodity import trend driven by prices, not economy (Reuters op-ed)

  • Why investors pay 1000x more for a 10% return from Millennium than for a 10% return from Vanguard (Capital Gains) For those curious about pod-shop dominance, read this

Were you forwarded this email from someone else?

Today’s Top Tweet

A thread for the geologists (and wannabe geologists like us)

Devil’s in the Detail

We find Aussie gold producer Regis’ choice of title for their Noosa conference preso pretty curious.

You’ll have to scroll through to pg. 25 to see that almost 60% of their current reserves sit in their perpetual development asset McPhillamys in NSW.

Based on their current +400kozpa production rate and assuming no reserve replenishment, this implies around 3.5 years remaining mine life on their producing assets.

So the use of the word growth is probably a bit aspirational here. Unless they had something else up their sleeve

Catch up on our latest episode

Wanna plug your business in the Directors Special?

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.