Mining Breaks

Liberty Gold is raising an underwritten $C13.2M+ under a bought-deal private placement with Sprott Capital Partners via 24M shares at $0.55ps.
The company has also given the underwriters, Sprott and others, an option, exercisable in whole or in part at any time up to 3-days prior to the closing of the$13.2M offering, to buy up to another 20% of the shares initially purchased as part of the offering.
The cash will be used to fund exploration/development of Liberty’s SW US gold/precious metal exploration portfolio, primarily the Black Pine project in S Idaho.

Atalaya Mining is targeting nameplate capacity by Dec after reaching full mechanical completion on the 15Mtpa expansion project at its 100%-owned Proyecto Riotinto in SW Spain. The additional electricity supply for the expansion is due to come on stream in the Sept qtr.
The new SAG mill, primary crusher and all associated equipment have been running continuously, ready to start receiving ore during wet commissioning. The new flotation and concentrate handling areas are also operating normally.
CEO Alberto Lavandeira says the expansion will increase copper production, improve operational efficiencies, reduce maintenance requirements and lower operating cash costs.

The ceramic industry’s demand for consistent sources of high-quality halloysite-kaolin amid an emerging trade war between China and the US has delivered more benefits for developer Andromeda Metals’ Poochera project in South Australia, with the lodging of new non-binding letters of intent totalling 405,000tpa.
The new deals for 200,000tpa DSO product with China’s Longyan Kaolin and Beihai Kaolin and 5,000tpa with Japan’s Yamada Toshio Shoten, all at an indicative pricing range of $A115-140/t CIF, are additional to existing LOIs for 307,000tpa dry-processed material and 208m,000tpa wet-processed mineral.
Andromeda, which can acquire 75% stake in the Poochera project from Minotaur Exploration, will incorporate the new agreements in a scoping study due in Sept.

Alita Resources has scaled back operations at the Bald Hill lithium and tantalum mine in the Eastern Goldfields of Western Australia while it continues negotiations on a standstill agreement on its $A40M debt facility with lenders consortium leader Tribeca Investment Partners.
Tribeca gave notice of default on Aug 16 relating to the impact of deteriorating markets on its financial performance and asserted failures of its life of mine plan. The standstill agreement expires on Aug 20.
Alita says the operational slowdown at Bald Hill will reduce mining costs but trigger an additional default under the facility.

Unlisted Australian public company Tempus Resources is targeting early commencement of a FS after completing acquisition of the historic producing Blackdome-Elizabeth project 200km N of Vancouver in BC, Canada. The deal includes the Blackdome gold mine, mill and tailings storage facility.
Tempus says its $A0.5M binding HoA to acquire 100% of Sona Resources provides exposure to an advanced high-grade asset with a history of gold production – 225,000oz @ 20g/t in 1986-89.
It aims to progress the Blackdome project in tandem with its highly prospective Zamora projects in Ecuador.

Higher material movements at the Duketon South project and higher contractor costs at Duketon North have offset West Australian miner Regis Resources’ record gold production and higher sales, pushing June year (FY19) NPAT to $A163.1M (FY18: $174.2M) on sales revenue of $652.5M ($604.4M).
Gold sales were 369,721oz (359,750oz) at average realised prices of $1,765/oz ($1,680/oz) against AISC of $1,029/oz ($901/oz). EBITDA declined to $306.8M ($312.5M) while operating cash-flow improved to $329M ($301M).
Regis set FY20 production guidance at 340,000-370,000oz at $1,125-1,195/oz and $62M growth capital.

Papua New Guinea wants a larger share of the Porgera gold mine as part of lease-renewal talks, diluting the ownership of J/V partners Barrick Gold Corp and Zijin Mining from their current 47.5% each, the country’s commerce minister has told Reuters.
PNG’s Minister for Commerce and Industry Wera Mori says a larger portion of Barrick and Zijin’s stakes should be given to the national and provincial govts, and to landowners. “We would like to see the mine to continue, but this time to be structured with a lot more national interest in it.”

Increased mining activity across all regions saw Australian-based global mining-tech company Imdex lift NPAT to $A27.6M for the June year (FY19), from $21.1M a year earlier, on revenue of $243.7M ($218.5M).
Despite moderating drilling activity in early 2019 it blames on the uncertainties of the global macro-economic environment delaying capital and exploration investment, Imdex says it’s benefiting from higher rental rates due to the improving quality of its rental fleet.
It says major and intermediate resource companies are again increasing activity.

Record gold production at lower costs and higher commodity prices boosted West Australian miner Saracen Mineral Holdings underlying NPAT to $A92M for the June year (FY19), from $75.6M in FY18 and the company’s best result.
Gold sales of 350,904oz (FY18: 317,675oz) at AISC of $1,030/oz ($1,139/oz), with average realised price of $1,722/oz ($1,606/oz), generated revenue of $555.6M ($511M) and EBITDA of $219.5M ($198.7M). Operating cash-flow was $228.1M ($191.4M).
Cash and equivalents at end-June rose to $154.4M ($118.3M) after spending $216.9M on exploration and growth.
MD Raleigh Finlayson says Saracen will spend $50M on exploration in FY20, aiming to grow earnings, production and mine lives.

START THE WEEK: WHAT YOU NEED TO KNOW
Continued buying by central banks and sustained growth in gold-backed exchange-traded funds remain the key drivers of the increase in global gold demand by 8% to 1,123t in the June 2019 quarter (Q2), the World Gold Council reported in its August Gold Demand Trends report. Combined with the March quarter, gold demand for the first half of the year increased to 2,181.7t – also an 8% margin.
Central banks bought 374.1t for the first six months of the year, the largest net H1 increase in global gold reserves in the WGC’s data series. Buying continued to be spread across a diverse range of largely emerging market countries.
Holdings of gold-backed ETFs grew 67.2t in Q2 to a six-year high of 2,548t, with the main factors cited as continued geopolitical instability, dovish commentary on monetary policy from central banks and the rallying gold price.
“June was a big month for gold,” said Alistair Hewitt, the WGC’s head of market intelligence. “The price broke out of a multi-year trading range to hit a six-and-a-half year high and gold-backed ETF assets-under-management grew by 15% - the largest monthly increase since 2012.”
Hewitt said the factors underpinning ETF inflows and central bank buying, including looser monetary policy and geopolitical uncertainty, were expected to continue. Consumer demand might be a bit soft as people adapted to the higher price level.

DATADIGGING: THE JUNE 2019 REPORTS
Click here to explore our coverage of the June quarterly, half yearly and full year reports  

YOU MAY HAVE MISSED
(Note that some of the following articles can be accessed only by subscribers)

• $679M IVANHOE MINES DEAL DONE TO BRING ON 3 AFRICAN PROJECTS
• CADIA RECORDS DELIVER STRONG YEAR FOR NEWCREST AHEAD OF RED CHRIS ACQUISITION 
• MALAYSIA GOES WITH SCIENCE FOR CONDITIONAL RENEWAL OF LYNAS OPERATING LICENCE 
• CHINESE ZHEJIANG HUAYOU WALKS AWAY FROM $66.3M DRC COBALT DEAL 
• TOP HIGH GRADE PHILIPPINES NICKEL EXPORTER EXPECTED TO CLOSE THIS YEAR? 
• ACACIA ABLE TO RESUME NORTH MARA EXPORTS BUT PROCESSING HALTED 

COMMODITIES
LME ($US), Aug 16 –
Aluminium 1,755.50
Copper 5,710.00
Zinc 2,264.50
Nickel 16,090.00
Lead 2,050.00
Tin 16,805.00
Cobalt 31,500.00
Gold 1,513.40
Silver 17.160

COMEX ($US), Aug 16 –
Gold 1,523.60
Copper 2.587
Silver 17.085

NYMEX ($US) 62% Fe CFR China, Aug 16 -
Iron ore 93.61

CALENDAR
Conferences –
Aug 18-21: Copper Cu2019, Vancouver (Canada)

Companies –
Aug 20: BHP FY results, Melbourne (Australia)
Aug 22: Mineral Resources FY, Perth (Australia)

Public holidays –
Aug 19: Independence Day (Afghanistan)
Aug 19: Bridge Public Holiday (Argentina)
Aug 19-20: National Day (Hungary)
Aug 19: Crown Princess Mette-Marit's Day (Norway)
Aug 20: Independence Restoration Day (Estonia}
Aug 20: Eid-e-Ghadir (Iran)
Aug 21: Ninoy Aquino Day (Philippines)
Aug 22: Lord Zoroaster Birthday/Khordad Sal (Pakistan)
Aug 24: National Parks Day (Costa Rica)
Aug 24: Janmashtami (India, Pakistant
Aug 24: Flag Day (Liberia)

Ivanhoe Mines has wrapped up its $C679M ($US509M) 2nd major strategic equity investment to bring on the company’s 3 principal nickel-copper-gold-zinc-platinum-palladium projects in DRC and South Africa.
$612M ($459M) is from CITIC Metal Co, one of China’s leading international resources companies, giving CITIC 29.4% of Ivanhoe; with another $67M ($50M) from Zijin Mining after exercising its anti-dilution rights to retain 9.8%.

China’s biggest cobalt refiner Zhejiang Huayou Cobalt’s overseas unit is pulling out a deal to invest $US66.3M in a cobalt mine in the Democratic Republic of Congo (DRC) after prices of the metal slid, Reuters reports.
Huayou Int’l Mining had agreed to take a 51% stake in Lucky Resources, whose wholly owned subsidiary New Minerals Investment holds the mining licence. Prices of cobalt have fallen by around 66% from their April 2018 peak to $32,600t on the LME. 
Huayou operates the PE527 copper-cobalt mining permit in the DRC.

The Philippines’ top exporter of high-grade nickel ore is expected to shut its mining operations soon as ore deposits at a project in the southernmost province of Tawi-Tawi are nearly depleted, a ministry official has told Reuters.
SR Languyan Mining Corp will most likely shut later this year, according to Jaynul Ali Sambarani, head of mines and geoscience services at the Ministry of Environment and Natural Resources for the Bangsamoro Autonomous Region of Muslim Mindanao.
The closure will likely reduce the Philippines’ monthly exports of nickel ore to top metals consumer China by 300,000t-400,000t, based on estimates by the Mines and Geosciences Bureau (MGB). The country is China’s second-biggest supplier of nickel ores, with latest industry data showing Tawi-Tawi is the Philippines’ biggest exporter of high-grade nickel ore to China, with shipments in H1 18 reaching 2.34M wet metric tonnes, 88% of total exports.

Beleaguered Tanzanian gold producer Acacia Mining has been able to resume sales from its North Mara mine after receiving export permits from the country’s Mining Commission for the first time since July 9. Acacia says income from the sales will enable it to meet its financial obligations for an extended period.
However, a separate environmental prohibition notice on using its tailings storage facility means Acacia has had to cease all gold production at the North Mara processing plant.
It’s been able to continue mining, but all mined ore is being added to stockpiles in the hope it can resolve the latest dispute.

Tiger Resources has lined up to $US30M in three tranches to support the planned capital enhancements at its Kipoi copper project in DR Congo through a funding facility with unlisted Australian coal producer QMetco.
QMetco may also provide marketing services for marketing services of all Kipoi saleable commodities for 12 years after expiry of Tiger’s current copper cathode offtake agreement with Gerald Group.
Tiger says the QMetco facility will allow it to continue discussions with senior lenders on a comprehensive debt restructure.

A $A3M over-subscribed placement to professional and institutional investors will support Black Rock Mining through the financing and final permitting activities to progress its 100%-owned Mahenge graphite project in Tanzania to construction-ready status.
CEO John de Vries says the support from cornerstone investors for the placement of 42.9M shares at 7cps, a 7.9% discount to its closing share price, will enable Black Rock to have the project construction-ready when the structure of the Tanzanian government’s participation is finalised.
Directors and management have subscribed for 6M shares in the placement.

RNC Minerals June 2019 qtr (Q2 19) loss has blown out to $C16.2M from Q1 19’s $3.3M loss, despite production from its nickel-to-gold Beta Hunt mine at Kambalda in Western Australia jumping to 11,056oz from 3,716oz on a gold mined grade down to 2.59g/t from 3.36 g/t.
Gold sales were up to 8,187oz from 6,375oz, albeit with cash operating costs sold also up to $US1,282oz from $1,076oz and AISC to $1,329oz from $1,174oz, generating revenue of $17.2M from $10.8M, but with adjusted EBITDA out to a negative $5M from a negative $1.8M. Beta Hunt also produced 150t of nickel-in-conc.
RNC acquired the Higginsville Gold Operations, 14km from Beta Hunt, on June 10, 2019, for $A50M in cash/shares with production beginning from the Baloo open pit in early Aug.

Despite gold production from its 3 operations in Brazil up 12% to 18,366oz, Jaguar Mining’s June 2019 qtr (Q2 19) net loss has gone out to $US2.2M from Q1 19’s $1.8M loss.
Output from the Pilar mine jumped 19% to 10,543oz and Turmalina was up 4% to 7,823oz, with cash operating costs down to $786oz from $870oz and AISC to $1,366oz from $1,428oz.
The bottom line was on gross profit up to $5.8M from $3.2M, operating cash flow jumping to $7.5M from $2.5M and adjusted EBITDA of $6M from $3.6M. At June 30, 2019, the company had $5.2M cash, compared to $6.3M at Dec 31, 2018.

Gold ore processor for small-scale Peruvian artisanal miners, Dynacor Gold Mines, has seen its 33rd consecutive qtr of profits slump to $US757,000 for the June 2019 qtr (Q2 19) period from Q1 19’s $1.2M profit.
The bottom line came despite gold production up 13.1% to 18,095oz, but sales easing to $22.7M from $22.9M for operating income down to $1.4M from $1.8M, EBITDA to $2M from $2.46M and cash flow from operating activities before change in working capital items down to $1.6M from $1.9M.
The company is expecting to lift FY/CY2019 gold production to 88,000oz-92,000oz from FY/CY18’s 81,314oz. Dynacor finished Q2 19 with $13.2M cash, compared with $13.9M at FY18 year-end.