Supply tightening and demand growth drive cobalt prices soaring
According to a report by the British benchmark mining intelligence company, due to supply disruptions and strong demand from the consumer electronics industry, the price of cobalt hydroxide soared by more than 22% month-on-month in August to more than US$26,000 per ton, while the price of cobalt sulfate rose 18.5% to per ton. US$8,000 per ton. According to the agency, despite the sluggish demand in the electric vehicle industry in August, the home and remote offices caused by the epidemic have spawned demand for laptops and tablets, which has increased the demand for cobalt in the consumer electronics sector. The rising penetration rate of 5G mobile phones has also driven the demand for related metals. In addition, the Port of Durban in South Africa was blocked for a long time earlier this year, which also tightened the supply of cobalt.
Nordgold raises its offer for Cardinal, Shandong Gold faces pressure
Recently, Nordgold raised its offer for Cardinal Resources. The Russian gold miner plans to acquire all Cardinal Resources shares that it does not currently hold for A$0.90 per share in cash, which is higher than Shandong Gold’s offer of A$0.70 per share. After receiving the new tender offer, Cardinal's board of directors advised shareholders not to take any action until further information. After the news, Cardinal Resources' stock rose 29.2% on the Toronto Stock Exchange, and its market value reached 475 million Canadian dollars.
Fitch upgrades Vale's credit rating
Fitch upgraded Vale's credit rating in its latest report. Fitch said that the upgrade from "BBB minus" to "BBB" applies to long-term foreign currency and local currency issuers' default ratings. Fitch pointed out that Vale has improved dam safety since the dam failure in 2019, thereby reducing the probability of default. The rating agency expects that Vale will pay more than $2 billion in dividends this year.
Codelco's July copper production fell 4.4% year-on-year
As the new crown pneumonia epidemic reached its peak in Chile, the Chilean national copper company Codelco was forced to reduce staff, slow down the progress of the project and close a smelter. The company's July output fell 4.4% year-on-year to 133,300 tons. Copper production in the first seven months of this year An increase of 2.3% over the same period last year. BHP Billiton's Escondida mine increased its output in July by 3.8% to 100,900 tons; Anglo American and Glencore's Collahuasi mine increased its output in July by 22.8% to 58,100 tons.
Two dams owned by Vale launch emergency plans
Vale said in a statement on Wednesday that the company has launched a Level 1 emergency plan at the Paracatu and Patrimônio dams, which does not require the evacuation of downstream residents. In addition, the company also announced that the Borrachudo II dam, No. 6 and No. 7A dams, and the IX area dam, which had previously launched a Level 1 emergency plan, failed to meet the safety standards of Minas Gerais. The company said that the relevant measures will not affect iron ore production this year.
BHP Billiton plans to repurchase bonds to optimize capital institutions
BHP Billiton plans to repurchase US$1.9 billion in bonds to reduce debt, reduce related interest costs, and continue to optimize the group's capital structure. As the price of iron ore has soared above US$100/ton, the world's largest mining company has made huge profits from iron ore, and the company currently has a large cash reserve.
Kakula Copper Mine continues to promote underground development
Ivanhoe Mines said that the total underground development of the Kakura Copper Mine so far has exceeded 20 kilometers, about 6 kilometers ahead of schedule. The Kakura Copper Mine plans to achieve the first batch of concentrate production in the third quarter of 2021. It is expected to become the world's highest-grade large-scale copper mine and the second largest copper mine in the world. In the first five years of production, 3.8 million tons of ore can be produced annually, and the copper grade will exceed 6%. Ivanhoe will release an independent final feasibility study report later this month.
Implats revenue increased to R69.9 billion
Implats, a platinum group metals mining and marketing company, announced on Thursday its record-setting full-year overall earnings as of June 30. Due to rising metal prices and depreciation of the rand, Implats revenue increased by 44% to 69.9 billion rand. The company's profit before interest, tax, depreciation and amortization was R29.4 billion, and the profit rate before interest, tax, depreciation and amortization was 42%, which was much higher than the previous fiscal year's 21.6%. Implats CEO Nico Muller announced a dividend of 4 rand per share, bringing the total annual dividend to 5.25 rand per share.
Nordgold announces strong mid-term earnings
The diversified gold producer Nordgold announced that the company's adjusted EBITDA in the first half of this year increased by 67% year-on-year to 433.2 million U.S. dollars. The growth was driven by a more favorable gold price environment, higher production and lower costs. promote. Its net profit increased to US$218.2 million, mainly due to increased revenue and reduced impairment losses. In addition, due to reduced capital expenditures and increased operating cash flow, Nordgold's free cash flow increased from US$6.4 million in the same period last year to US$177.5 million.
Traxys won the bid for Wheaton precious metals cobalt sale
According to people familiar with the matter, the trading company Traxys won the bid to sell cobalt metal for Wheaton Precious Metals, which will prompt Wheaton to enter the cobalt market and compete with companies such as Glencore. Two years ago, Wheaton agreed to an agreement to sell large amounts of cobalt metal at a significant discount to market prices starting from January 2021. Wheaton will sell 50 to 75 tons of cobalt per month from 2021 to 2022, and 75 to 100 tons of cobalt per month from 2023.
