Mining Weekly
Afena Capital now holds 5.82% stake in Merafe
Wed, 05 Aug 2020 17:00:00 +0200
Independent investment management firm Afena Capital has acquired a beneficial interest in ferrochrome producer Merafe Resources and now holds 5.82% of the issued ordinary share capital. Afena Capital aims to responsibly grow its clients’ wealth by generating sustainable inflation-beating investment returns which are superior to that of its industry peers and ahead of the relevant benchmarks.
World Gold Council publishes Retail Gold Investment Principles
Wed, 05 Aug 2020 16:59:00 +0200
With retail investors owning close to 40 000 t of gold, valued at about $2-trillion, the World Gold Council (WGC) aims to set the bar for product providers across the global retail gold market and further encourage retail investors to place their trust in gold through the publication of its Retail Gold Investment Principles (RGIPs). The RGIPs are intended to provide high-level, best practice principles for providers of all kinds of retail gold investment products and, through their adoption, ensure the highest levels of fairness, transparency and integrity are instilled across the market.
African supply bottlenecks fuel cobalt price surge
Wed, 05 Aug 2020 16:47:00 +0200
Transport delays from South Africa against a backdrop of increasingly robust Chinese demand have fuelled a price rally for cobalt hydroxide, used to make chemicals for electric vehicle batteries. Chinese cobalt refiners have moved to replenish stocks of hydroxide feedstock as they gear up for a rebound in demand as coronavirus lockdowns are eased.
Platinum continuing to attract strong investor interest – WPIC
Wed, 05 Aug 2020 16:26:00 +0200
The interest in platinum group metals (PGMs) is high at the moment, World Platinum Investment Council (WPIC) research director Trevor Raymond said on Wednesday. Speaking to Mining Weekly from London in a Zoom interview, Raymond said: “As you know, the WPIC doesn’t forecast price but one of our important roles is to make sure that people are aware of platinum as an investment asset and secondly, that they’re able to take a view on price, and that view is probably governed by three dominant features at the moment. (Also watch attached Creamer Media video.)
Orion requests trading halt as it considers capital raising
Wed, 05 Aug 2020 16:01:00 +0200
ASX- and JSE-listed Orion Minerals has requested a trading halt in its shares in anticipation of a proposed capital raising. The company has requested two consecutive trading halts until the start of trade on August 10, or such earlier time as it makes an announcement to update the market about a potential capital raising.
Global Industry Standard on Tailings Management puts communities at the forefront
Wed, 05 Aug 2020 15:47:00 +0200
The Global Tailings Review (GTR) on August 5 launched the Global Industry Standard on Tailings Management, which aims to ensure tailings dam failures are a thing of the past. The GTR was co-convened by the United Nations Environment Programme (UNEP), the Principles for Responsible Investment (PRI) and the International Council on Mining and Metals (ICMM), in response to the catastrophic failure of a tailings facility at the Córrego do Feijão mine, in Brumadinho, Brazil, in January 2019.
Climate change must be considered when granting water use licences, says Water Tribunal
Wed, 05 Aug 2020 15:29:00 +0200
A landmark decision by the Water Tribunal confirms that water licensing authorities must consider the impacts of climate change when deciding whether or not to grant water use licences for new coal-fired power stations. In a decision handed down on July 21, the tribunal upheld an appeal to set aside the two water use licences granted by the Department of Water Affairs and Sanitation (DWS) to Acwa Power for the development of a new coal-fired power station, Khanyisa.
Gold price smashes record for second time in a month, breaking $2 000/oz mark
Wed, 05 Aug 2020 15:16:00 +0200
The London Bullion Market Association’s (LBMA’s) gold price hit an all-time record high at $2 034.45/oz  on August 5 – representing the first time in its more than 100-year history, that the London price of gold has exceeded $2 000 a troy ounce.   The new record price continues gold’s rapid rise from the metal’s opening price on January 2 at $1 520.55/oz. Since then, it has gained 33.8% in the 149 trading days to date, breaching $1 900/oz for the first time on July 24.
Iron-ore pushes higher on China demand, supply concerns
Wed, 05 Aug 2020 14:37:00 +0200
Iron-ore futures edged higher in see-saw trade on Wednesday, with both Singapore and Dalian benchmarks reversing early losses, supported by strong Chinese demand for the steelmaking ingredient and worries about supply. Iron ore on China's Dalian Commodity Exchange closed the day 0.4% higher at 888 yuan ($127.72) a tonne, adding to solid gains that helped push spot prices to 12-month highs. The Singapore Exchange's benchmark price was up 0.1% at $111.75 a tonne in afternoon trade, extending gains into a seventh session. "Higher steel prices have encouraged steel mills to keep their output elevated, sustaining iron ore demand. Meanwhile, effective iron ore supply is limited," said Richard Lu, senior analyst at CRU Group in Beijing.
Endeavour dividends approaching, London or New York listing mulled
Wed, 05 Aug 2020 14:30:00 +0200
West African gold miner Endeavour Mining expects to reach a net cash position in the coming quarters, at which point it will start rewarding shareholders with dividend payments. With the current gold price outlook, dividend initiation could come quickly, CEO Sebastien de Montessus said on a conference call on Wednesday, a day after the precious metal broke through $2 000/oz for the first time. In question-and-answer time, he said that Endeavour would consider the overall market and peers as a benchmark for its dividend, not only Toronto-listed peers.
AfriTin Uis mine increases output by 79% month-on-month
Wed, 05 Aug 2020 14:26:00 +0200
Aim-listed AfriTin Mining reports that tin concentrate production at its flagship asset, the Uis mine, in Namibia, increased to 35 t in July, a 79% increase from June. AfriTin is continuing to operate the Uis mine at full scale despite ongoing Covid-19 measures in Namibia and South Africa. All necessary steps to mitigate a possible outbreak have been taken and the company is pleased to report that there have been no confirmed cases of Covid-19 at the mine.
Nigeria moves to capture illegal gold sales to increase reserves
Wed, 05 Aug 2020 14:01:00 +0200
Nigeria plans to stem illegal gold exports worth hundreds of millions of dollars a year to boost the country’s foreign reserves. The program will regulate production by informal miners that currently provides no income to the state, said Fatima Shinkafi, executive secretary of the Presidential Artisanal Gold Mining Development Initiative.
Hummingbird expects to achieve higher second-half earnings
Wed, 05 Aug 2020 13:01:00 +0200
Aim-listed Hummingbird Resources reports that has achieved decent production results from its Yanfolila mine, in Mali, despite Covid-19 having caused a challenging operating environment in the second quarter of the year. The company poured 24 054 oz of gold in the quarter, compared with the 27 466 oz of gold poured in the second quarter of last year.
South Africa's diamond polishers look to lockdown lovers to add shine
Wed, 05 Aug 2020 12:43:00 +0200
South Africa's diamond industry, famed for sales the world over and supplying gems for the British crown jewels, is looking closer to home to revive its fortunes following the coronavirus slump. Even before the new virus triggered the Covid-19 pandemic, diamond prices and demand were weak. Global economic weakness has exaggerated that and Anglo American's De Beers unit last week reported a plunge in earnings.
Just Share labels Investec’s climate-risk disclosure report as new benchmark
Wed, 05 Aug 2020 12:20:00 +0200
Shareholder activism organisation Just Share has described the ‘Climate Related Financial Disclosures’ report published by Investec in May as having set a new benchmark for South African banks in climate-risk disclosure. The Just Share analysis has been released ahead of Investec’s August 8 annual general meeting, at which shareholders will vote on a climate resolution that, if approved, will authorise the directors to continue with the group’s commitment to carbon neutrality and to report yearly on progress made on climate-related exposures.
Trump vs Trump as President’s son opposes Alaska's Pebble mine
Wed, 05 Aug 2020 11:58:00 +0200
Donald Trump Jr. took to Twitter on Tuesday to oppose a mining project in southwestern Alaska that his father’s administration has previously supported. Trump Jr. said he “100%” agreed with Vice President Mike Pence’s former chief-of-staff Nick Ayers in opposing the Pebble mine, which has known deposits of copper, gold and other metals, saying that the nearby Bristol Bay and surrounding fishery are “too unique and fragile to take any chances with". Less than two weeks ago the mine secured a final environmental impact review from the Army Corps of Engineers, boosting the prospects that Vancouver-based Northern Dynasty Minerals could be on track for approval. Shares of the miner surged as high as C$3.49 July 24, before slipping back to C$2.19 Tuesday.
Gold price lifts Gold Fields' interim earnings
Wed, 05 Aug 2020 11:51:00 +0200
JSE- and NYSE-listed Gold Fields expects its basic earnings a share for the six months ended June 30 to be between 90% and 110% higher year-on-year at between $0.17 and $0.18. Headline earnings per share (HEPS) for the first half of the year are expected to be between $0.19 and $0.20, which is at least 290% higher than the HEPS of $0.05 apiece reported in the first half of 2019.
Political, economic uncertainty likely to keep gold price high − CPM
Wed, 05 Aug 2020 11:46:00 +0200
Commodities and financial advisory firm CPM Group managing partner Jeff Christian says the currently high trading gold price is likely to remain near the $1 900/oz mark in the near term as political and economic uncertainty remain high, especially within the US. As at August 5, the gold price was above the $2 000/oz mark, having risen sharply from about mid-July when it was trending in the lower $1 800/oz range and from just below the upper $1 900/oz range as of August 3.
DRDGold improves yearly output, just misses guidance
Wed, 05 Aug 2020 10:34:00 +0200
JSE- and NYSE-listed DRDGold has reported a 9% year-on-year increase in gold production to 174 385 oz in the financial year ended June 30. The company attributes the increase in output to a larger contribution from the Far West Gold Recoveries operation, which it acquired from gold miner Sibanye-Stillwater in 2018.
Peru copper and gold output nosedive in first half of 2020, ravaged by coronavirus -govt
Wed, 05 Aug 2020 10:29:00 +0200
Peru, a top global metals exporter, saw its output of copper, gold and zinc nosedive in the first half of 2020, ravaged by restrictions put in place to curb the coronavirus outbreak, the government said on Tuesday. The world's No. 2 copper producer said production of the red metal plunged 20.4% in the first half of 2020 versus the same period in 2019. Gold production also fell 34.7% in the first six months of the year, while zinc output dropped off 23.7%, the country's Energy and Mines ministry said in a statement.