Yancoal Smashed on Acquisition Intentions

Metals steady as junior deals in uranium & lithium take shape

August 20, 2024

The Pre-Start

  • Woodside & the ACF agreed to dismiss its challenge to a primary environmental approval for the Scarborough project (WDS)

  • Yancoal finished with a $1.55b cash balance while declaring no interim dividend would be paid, with cash hoarded for potential M&A (YAL)

  • Ivanhoe announced the Phase 3 concentrator at Kamoa-Kakula achieved commercial production, lifting Cu capacity to 600ktpa (IVN.TO)

  • Global Atomic shares bounced 10% after announcing Niger government support for the Dasa uranium project (GLO.TO)

  • Global Lithium received a notice 249D, which it deems invalid, to remove G. Lilleyman & H. Lawrance & appoint B. Mitchell (GL1)

  • Deterra reported $240m in revenue & an NPAT of $155m. 100% of NPAT paid out (14.4cps); Trident approval expected August 29 (DRR) Of interest, $9.5m in operating expenses + $3.5m in BD expenses

  • Perenti reported $185m in free cash flow on $3.34b revenue. It declared a 4c final dividend (6c total) while buying back $30m of stock (PRN)

  • Monadelphous saw $2.03b in revenue, an EBITDA margin of 6.28% and NPAT of $62m. Full year dividend was 58c (MND)

  • Mader reported revenue of $774m, EBITDA of $99m & NPAT of $50m (27%, 32% & 31% growth respectively) (MAD)

  • Macmahon generated $75m in free cash on revenue of $2b. It’ll pay a 0.6cps final dividend (1.05cpa total) for FY24 (MAH)

  • Larvotto, owner of Hillgrove, were up +33% on the back of China’s export controls on antimony exports from Sep 15 (LRV)

  • WIA reported assays from RC & DD holes, confirming continuity within existing zones as well as the new Eastern zone (WIA)

  • Regal increased its holding in Stellar Resources to 7.6%, Paradice up to 9.9%

  • West African shared further drilling below M1S at Sanbrado, hitting high-grade gold (WAF)

  • Prodigy Gold updated its resources at Tanami North & Twin Bonanza for 471koz at 1.4g/t Au and 474koz at 1.5g/t Au respectively (PRX)

High Grade It

  • Dryblower goes deep on the grim “weather” forecast from the world’s biggest steelmaker for iron ore miners (MiningNews)

  • Gold miner says $1b project “unviable” after Plibersek intervention (AFR)

  • Fortescue switched on a $34m hydrogen refuelling hub at the Christmas Creek mine in the Pilbara (BN)

  • China’s antimony ban opens the door for Australia (MiningNews)

  • Investors are buying up gold stocks before the first US rate cut (AFR)

  • Former premier Mark McGowan has landed another post-political role, taking on the non-executive chairman position at Frontier Energy (BN)

  • UBS picks BHP as the cream of the crop among WA’s four iron ore majors amid market downturn (West)

  • China's production of coal is rising while its share of electricity generation is declining, a seeming contradiction that will likely result in lower import volumes and cheaper prices (Reuters)

  • South Africa’s coal shipments by rail, which plunged in 23’ to a 3-decade low, declined in 1H24, but Thungela expects a 2025 turnaround (Bloomberg)

  • Australian share market on Monday reached a two-week high, but China issue looms (West)

  • Chinese copper exports dropped last month from an all-time high, as domestic buyers took advantage of the rapid retreat (Bloomberg)

  • Copper prices dip as BHP closes in on a deal to avoid mass strikes at Escondida (West)

  • Ensuring the survival of Australia’s steelmaking capacity will require ongoing cooperation from all levels of government, BlueScope warn (The Australian)

  • Fund managers & brokers turn bullish on ‘bombed out’ Fortescue (AFR)

Wheelin’ n Dealin’

  • Core Lithium confirmed it made a confidential NBIO for Charger Metals, detailing proposed terms & key deal benefits (CXO)

  • St Barbara confirmed the sale of its entire shareholding in Catalyst Metals for $25.2m, with proceeds to strengthen balance sheet liquidity as it develops Simberi (SBM) No word on the buyer(s) as yet…

  • T92 & TSX-V listed ATHA signed a letter of intent laying out the terms of a proposed option & JV agreement that’ll allow ATHA to acquire up to 60% of T92’s Pasfield Lake project & also allow T92 to acquire up to 70% of ATHA’s Spire & Horizon projects (T92)

  • Finnish mining equipment maker Metso denied rumours that it was in talks with Sweden’s Sandvik to acquire their mining unit (Mining.com)

  • SRG Global announced the acquisition of Diona for $111m, funded via a $66m equity raise & $50m secured loan + cash on hand (SRG)

  • Green Tech Metals announced an investment & framework agreement with South Korean battery maker Ecopro, who invested $8m at a premium (GT1)

Rattlin’ the Tin

  • US gives tiny Canadian firm Electra US$20m to build cobalt plant (Bloomberg)

  • Arrow Minerals are raising capital (AMD)

  • Unico Silver is in a trading halt pending a capital raise and material acquisition (USL)

In the Weeds

  • Former BHP CEO, current Shell chair Andrew Mackenzie on Tech Zero (Apple, Spotify) On climate targets, EV demand & more

  • Carlyle’s Jeff Currie shares his take on how various market forces have pushed commodities into a new “supercycle” (Barron’s)

  • Explainer: What is antimony and why is China curbing its exports? (Reuters)

  • Welcome to the end of the biggest commodity boom (Bloomberg)

  • 'Peak ESG' concerns heat up as investors scrutinise sustainability claims (CB)

  • How BYD, Nio and Other Chinese EVs Compare To Tesla (CNBC video)

  • Prize behind Mark McGowan’s fifth job (AFR’s Rear Window)

  • Niobium Pricing Trends: What Steel Manufacturers Need to Know (SMM)

Were you forwarded this email from someone else?

Today’s Top Tweet

Devil’s in the Detail

Frontier Energy appointed former WA Premier Mark McGowan as its Non-Executive Chairman.

As @ChuckChunder points out, McGowan will get a pretty nice incentive to just rock up to work every day for the next couple years…

Unrelated, the below post from @respeculator and the relative value when comparing De Grey & Resolute has got us thinking.

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Is Australia Really a Top Mining Jurisdiction (50 min)

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