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July 26, 2022
In-fill drilling and flotation testwork complete, updated MRE on track, DFS advancing well
Centaurus Metals (ASX Code: CTM) is pleased to provide an update on the progress of the Jaguar Nickel Project Definitive Feasibility Study (DFS) and project development initiatives, with the latest work continuing to clearly demonstrate the enormous scale of the project.
- In-fill drill program now complete with updated Mineral Resource Estimate on track for the end of Q3 2022.
- Based on the current MRE of the Jaguar deposits and recent pit optimisation work used to design the in-fill drill program, the pits are coalescing into one with a strike extent of 3km, up to 1km width and depths that extend to over 300m while maintaining a low strip ratio of approximately 7.5:1.
- Flotation testwork now complete, with over 50 bulk flotation tests completed to produce over 400kg of concentrate ready to use as feed for pilot plant testing of the planned pressure oxidation circuit.
- The delivery date for the Definitive Feasibility Study (DFS) has been reviewed by Ausenco and the Company and is now targeted for the end of March 2023, in part due the expansion in the overall Project design flowing from the significantly larger Jaguar Resource base and project footprint and in part due to delays in being able to start the pilot program as originally scheduled.
- A Final Investment Decision (FID) remains on track for the end of Q3 2023, after relevant environmental approvals have been secured.
- In addition to the main nickel sulphate product from Jaguar, by-product credits are planned to be delivered from a copper cathode recovery circuit and separate zinc and cobalt mixed sulphide precipitates.
- Foundation geotechnical investigations and sterilisation drilling of major infrastructure areas (IWL, Waste Dumps and Process Plant site) have been completed with, importantly, no economic mineralisation intersected in the sterilisation work.
- New Core Shed being built on site at Jaguar capable of holding 280,000m of drill core.
- Plant nursery established to assist with the Company’s revegetation efforts for the creation of fauna corridors around the project area.
- Enrolment process for a 1,500-person construction training program has commenced and has been received very well by the local community.
- Vale royalty on the production of nickel sulphate agreed at a rate of 0.55%. The royalty rate, should the Company ever produce a nickel concentrate product, will remain at 0.75% as established under the original agreement to acquire the Jaguar Project.
- Experienced London-based nickel marketing executive, Mr Robert Aird, appointed as Head of Nickel Sales on consulting basis.
- Centaurus remains well-funded with $60 million in cash and no debt.
Commenting on the DFS progress, Centaurus Metals Managing Director, Mr Darren Gordon, said: "The Jaguar Project is continuing to reveal its world-class credentials with each package of work that we complete. With in-fill drilling now complete and a significant amount of work already well advanced for the Definitive Feasibility Study, the broader project development is now really beginning to gather speed.
“What is continuing to shine through at Jaguar is the sheer scale of the Project. It is not too often in a mining project that you get to develop a mine plan where the open pits are likely to extend over 3km along strike, be up to 1km wide and extend to depths of over 300 metres while still maintaining a low strip ratio of approximately 7.5:1.
"Given the increased scale of the Project and COVID-related delays in starting the pilot testwork program, we have agreed with Ausenco that the DFS will now be targeted for delivery at the end of March 2023, rather than the end of 2022 as originally conceived. This will provide additional time to complete all the DFS work to a very high standard, without compromising the overall delivery schedule for the Project.
“We are still targeting a Final Investment Decision at the end of Q3 2023, once all environmental approvals have been secured, paving the way for us to deliver the world’s next significant green nickel project.”
MINERAL RESOURCE ESTIMATE (MRE) UPDATE
The December 2021 Mineral Resource Estimate (MRE) comprises 80.6Mt @ 0.91% Ni for 730,700t of contained nickel (Table 1), with the Indicated component of the Resource being 43.4Mt @ 0.92% Ni for 397,000t of contained nickel, representing 54% of the Global MRE.
The Company has now completed Resource development in-fill drilling across all the Jaguar and Onca Deposits at the Jaguar Project. Drilling was designed to upgrade all Resources within a constrained US$22,000/t nickel price pit shell limit into the higher- confidence Indicated category.
Further in-fill drilling to upgrade Indicated Resources into Measured has also been completed to provide additional confidence in the MRE that will underpin the early stages of mining and nickel production. The in-fill drill results continue to support the current geological model and demonstrate the continuity of the mineralisation both down-dip and along strike.
The Company is targeting more than 500,000t of contained nickel in the Measured and Indicated categories of the next MRE, planned for the end of Q3 2022, which will underpin the Jaguar Project Definitive Feasibility Study (DFS) and initial Ore Reserve Estimate. With the completion of the in-fill drilling, the drill rigs have now moved to Resource growth focused step-out and extensional drilling as well as new discovery greenfields drilling.
MINE ACTIVITIES
Geotechnical Investigations
Geotechnical logging of selected exploration drill core, subsequent modelling of major geotechnical domains and drilling of a geotechnical drill program have been completed to support open pit wall design. Samples from the drill core representing differing lithologies were collected and sent to the Federal University of Minas Gerais (UFMG) for strength testing.
An additional drill program including four short holes designed to test the rock mass conditions in the upper levels of the Jaguar South Pit Southern Wall was completed in early July.
Results have shown the rock conditions for the pits to be generally good to very good. Localised zones of weak rock mass conditions associated with biotite alteration will require local management but are spatially constrained and their location and extents are well understood.
Open pit wall and underground stope designs for the DFS will be finalised in the next 2-3 weeks.
Click here for the full ASX Release
This article includes content from Centaurus Metals (ASX Code: CTM), licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CTM:AU
14 March
Top 5 Canadian Mining Stocks This Week: Noble Mineral Exploration Gains 114 Percent on Nickel Assays
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.
This week, the US Bureau of Labor Statistics released key inflation data, including its consumer and producer price index data on Wednesday (March 12) and Thursday (March 13). The reports show all items inflation was up 2.8 percent year-over-year in February, while core inflation — all items minus food and energy — was up 3.1 percent over that period. Both rose by 0.2 percent compared to January.
The numbers show that inflation has largely become stuck and is still far from the 2 percent target rate set by the US Federal Reserve. The data provides further insight into the health of the overall economy ahead of the Federal Open Market Committee meeting next week. The consensus among analysts is the Fed will choose to maintain its benchmark rate at 4.25 to 5 percent.
Trade tensions between the US and Canada also continued to rise during the week as the US escalated its trade threats against its key trading partners in North America and Europe.
On Tuesday (March 11), temperatures came close to boiling over as Ontario Premier Doug Ford applied a 25 percent surcharge to electricity exports destined for the US and US President Donald Trump threatened to raise incoming 25 percent tariffs on steel and aluminum imports to 50 percent on Canada in response.
However, Ford agreed to suspend the surcharges after US Commerce Secretary Howard Lutnick invited Ford and federal officials to a face-to-face meeting in Washington, DC, on Thursday to discuss the trade situation.
According to Ford, the Thursday meeting was productive and has helped lower some of the tension between Canada and the United States. The two groups are scheduled to meet again next week. Both sides hope that the temperature will be dialed back and trade can begin to normalize between the long-time trade allies.
On Wednesday, US President Trump maintained his decision to apply a blanket 25 percent tariff on all incoming steel and aluminum imports, but did not raise Canada’s to 50 percent. The move will still broadly affect the Canadian industrial sector, which remains the largest exporter of steel and aluminum products to the United States.
Canada responded to the move with tariffs on US$20 billion worth of goods, while the European Union hit back with tariffs on US$28 billion worth of goods.
On Thursday, the president also issued a fresh round of tariff threats aimed at Europe, including a 200 percent tax on alcohol. Trump’s comments came after the EU applied a 50 percent charge on incoming alcohol from the US.
In addition to tariff news, the Trump administration announced plans to roll back 31 environmental policies on Wednesday. The changes by the Environmental Protection Agency include broad loosening or elimination of pollution-related regulations, such as emissions rules for power plants and automobiles that require them to use cleaner forms of energy, and regulations on soot, mercury and coal ash pollution.
The agency is also considering striking down key findings about climate pollution, effectively ending the EPA’s ability to manage climate change.
Markets and commodities react
In Canada, markets were mixed but more positive than those in the US. The S&P/TSX Venture Composite Index (INDEXTSI:JX) gained 1.56 percent during the week to close at 621.08 on Friday (March 14), the S&P/TSX Composite Index (INDEXTSI:OSPTX) lost 0.16 percent to 24,556.38 and the CSE Composite Index (CSE:CSECOMP) dropped 1.55 percent to 123.76.
US equity markets were broadly down again this week. The S&P 500 (INDEXSP:INX) lost 1.16 percent to close the week at 5,638.93 and the Nasdaq 100 (INDEXNASDAQ:NDX) fell 0.59 percent to 19,715.71. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell the most, slipping another 2.4 percent to 41,488.18.
Gold broke the US$3,000 mark for the first time in early morning trading Friday, briefly going to US$3,004 before pulling back. Silver also moved above the US$34 mark early Friday for the first time since October 2024. Overall, the gold price gained 2.48 percent over the week to US$2,983.09 per ounce at 4:00 p.m. EST Friday. The silver price rose even more, adding 3.52 percent during the period to US$33.66.
In base metals, the copper price was up 3.61 percent on the week, closing out Friday at US$4.88 per pound on the COMEX. Meanwhile, the S&P GSCI (INDEXSP:SPGSCI) was flat, gaining just 0.06 percent to close at 551.68.
Top Canadian mining stocks this week
So how did mining stocks perform against this backdrop?
We break down this week’s five best-performing Canadian mining stocks below.
Data for this article was retrieved at 4:00 p.m. EST on Friday using TradingView's stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
1. Noble Mineral Exploration (TSXV:NOB)
Weekly gain: 114.29 percent
Market cap: C$16.61 million
Share price: C$0.075
Noble Mineral Exploration is an exploration and development company that uses a project generator model to build a portfolio of base and precious metals projects, royalties and partnerships.
Noble owns a 20 percent stake in the Mann nickel-cobalt project in Ontario, Canada, a joint venture with Canada Nickel (TSXV:CNC,OTCQX:CNIKF). The property is located near Timmins and hosts four primary targets: Mann North, West, Central and South. In addition to nickel and cobalt, the site also hosts some platinum, chromium and iron mineralization.
On February 24, the company announced that it had finalized an agreement with Canada Nickel to spin off the Mann project into a new subsidiary under Canada Nickel named East Timmins Nickel, which also holds Canada Nickel’s projects in the region. The subsidiary will be a 20/80 joint venture between Noble and Canada Nickel. Noble said that consolidating the properties into a separate company would maximize its value without significant dilution to Noble
Under the deal, Noble also transferred its interest in its Project 81 properties in Northern Ontario to Canada Nickel, retaining a royalty.
Most recently, Noble and Canada Nickel reported successful exploration results from the Mann property on Thursday, including the highest grades yet from the Mann West target. A highlighted assay from the deposit returned 0.27 percent nickel over 452 meters, which included intersections with 0.4 percent over 18 meters and 0.63 percent over 4.5 meters.
Canada Nickel CEO Mark Selby said the targets at Mann “each have a footprint larger than the company’s flagship Crawford Nickel Sulphide Project, underscoring the large-scale potential of the Timmins Nickel District.”
2. Homeland Nickel (TSXV:SHL)
Weekly gain: 100 percent
Market cap: C$11.15 million
Share price: C$0.05
Homeland Nickel is an exploration company working to advance projects in the US and Canada.
The company owns four nickel projects in Oregon: Cleopatra, Red Flat, Eight Dollar Mountain and Shamrock. The projects are in the early exploration stage, with the company being guided by historic work at each property.
Homeland is also working on the Spruce Ridge project in Newfoundland and Labrador, a 30/70 joint venture with Benton Resources (TSXV:BEX,OTC Pink:BNTRF), which earned its stake in the property through an earn-in agreement with Homeland in July 2024.
While the company did not release any news, its shares gained this week following Noble Mineral Exploration and Canada Nickel’s announcement on Thursday of positive assay results from their joint venture Mann nickel project in Ontario. Homeland owns 2.95 million shares in Canada Nickel and 9.96 million shares of Noble.
3. Brunswick Exploration (TSXV:BRW)
Weekly gain: 74.07 percent
Market cap: C$49.07 million
Share price: C$0.235
Brunswick Exploration is a lithium-focused grassroots exploration company working to advance its assets in Canada and Greenland.
The company owns the Mirage lithium project in the Eeyou Istchee James Bay region of Québec, Canada, as well as several exploration licenses in Greenland, with hundreds of staked and untested targets across the island.
The company announced on Thursday that it has identified new high-potential lithium targets and applied for a mineral license to cover them. Named Hinksland, the license covers a five-block claim located near the country’s northeast coast. The company has mapped 50 interpreted outcrops at Hinksland, nine of which are between 500 and 10,000 feet of strike.
Brunswick said it intends to visit the region in 2025. In the release, the company also said it expects first results from its ongoing drill program at Mirage will be released in the next few weeks.
4. Bayhorse Silver (TSXV:BHS)
Weekly gain: 50 percent
Market cap: C$18.4 million
Share price: C$0.06
Bayhorse Silver is a silver-focused company currently working to bring the Bayhorse silver, copper and antimony mine in Oregon, US, back online.
The mine was originally in operation until late 1984 and closed when the price of silver dropped to under US$6 per ounce. Historic sampling during the 1980s identified grades of 2,146 grams per metric ton (g/t) silver, and a bulk sampling program conducted by Bayhorse in 2014 found bonanza grades of 150,370 g/t silver.
The company has continued to explore the property and, in October 2018, produced a maiden resource estimate that showed the property hosts inferred resources of 6.33 million ounces of silver from 292,300 US tons of ore with an average grade of 21.65 ounces per US ton.
The most recent update came on March 4, when Bayhorse announced it had received assay results from the first 115 meters of the silicified breccia zone encountered in a drill hole used to test an anomaly at the mine. The company said that the 115 meter intersection showed continuous copper up to 125 parts per million (ppm), zinc up to 695 ppm and intermittent gold up to 0.023 ppm.
The company also shared preliminary IP survey results from the project.
Bayhorse CEO Graeme O’Neill commented that he was encouraged by the results and they may indicate the presence of massive sulfides and copper porphyry. The company said it is waiting on results from a further 112 meters of samples from the brecciation zone.
5. Pacific Booker Minerals (TSXV:BKM)
Weekly gain: 43.86 percent
Market cap: C$12.11 million
Share price: C$0.82
Pacific Booker Minerals is an exploration and development company focused on its Morrison property, located in Central British Columbia, Canada. The site is in the advanced stages of development and hosts copper, gold and molybdenum mineralization. The company has been working on development plans since 2004, and completed a feasibility study in 2009. However, work hasn’t been able to proceed as it needs approval from the nearby Lake Babine Nation.
In May 2024, Pacific Booker announced it would be seeking legal recourse after communications between itself and Lake Babine Nation broke down. The company indicated it had received a memorandum of understanding from Lake Babine Nation in 2012, but legal counsel for the nation has refuted that the understanding was in existence and an environmental assessment certificate for Morrison was refused in 2012.
Shares of Pacific Booker saw gains this week, but the company has not released further news.
FAQs for Canadian mining stocks
What is the difference between the TSX and TSXV?
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
How many companies are listed on the TSXV?
As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.
Together the TSX and TSXV host around 40 percent of the world’s public mining companies.
How much does it cost to list on the TSXV?
There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.
The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.
These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.
How do you trade on the TSXV?
Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange's trading hours.
Article by Dean Belder; FAQs by Lauren Kelly.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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27 February
Tartisan Nickel Corp. Completes Initial Data Interpretation from the Airborne EM26 Survey, Turtle Pond Knight Danger Nickel-Copper-Platinum Project
Tartisan Nickel Corp. (CSE: TN) (OTCQB: TTSRF) (FSE: 8TA)("Tartisan" or the "Company") is pleased to announce that the Company has completed the data acquisition and initial interpretation from a Helicopter-Borne Target EM26 Magnetic and VLF Geophysical Survey on the Turtle Pond Knight Danger ("Turtle Pond") nickel-copper-platinum property near Dryden, Ontario. The survey was intended to search for mineralization that is associated with magnetic anomalies from the presence of pyrrhotite and chalcopyrite host rocks.
The airborne magnetic survey, conducted by Expert Geophysics Limited, collected electromagnetic and magnetic data using a cesium vapor magnetometer in a separate towed- bird for collecting measurements of the intensity of the earth's magnetic field to provide detailed insights into the geological features of the Turtle Pond property. Initial results indicate promising anomalies that may correlate with the presence of Nickel, Copper, and PGE mineralization. Additional geophysical interpretation and integration of previous geophysical data from Turtle Pond is underway which will help the Company to fully understand the implications of these findings and to refine exploration strategies moving forward in 2025.
"Our team is excited about the preliminary results of the magnetic survey which suggests that Turtle Pond has potential for significant mineral deposits including PGM's," said Mark Appleby, CEO of Tartisan Nickel Corp. "Next steps involve an in-depth interpretation of the data to identify drill targets and enhance our understanding of subsurface geology. This survey represents a significant step forward in the exploration and evaluation of the property's mineral potential."
The Turtle Pond Property is strategically located in a region known for its mineral deposit potential, and Tartisan Nickel Corp. remains optimistic about the potential for economic mineralization. The results from the magnetic survey will be integrated with existing geological and previous drill and assay data to support our ongoing exploration efforts.
Tartisan Nickel Corp. is committed to a thorough and responsible exploration process, prioritizing environmental stewardship and community engagement. The company will continue to collaborate closely with local stakeholders as it progresses with exploration initiatives.
An Assessment Report on the Turtle Pond Knight Danger Property has been filed.
Additionally, Tartisan Nickel Corp. will host Booth 3035 at the Prospectors and Developers Association of Canada, March 2nd to 5th, 2025, Toronto Convention Centre, Ontario. We look forward to sharing the Tartisan story and connecting with investors.
About Tartisan Nickel Corp.
Tartisan Nickel Corp. is a Canadian based mineral exploration and development company which owns; the Kenbridge Nickel-Copper Project in Northwestern Ontario; the Sill Lake Silver Property in Sault Ste. Marie, Ontario as well as the Turtle Pond Knight Danger Project in Northwestern Ontario.
Tartisan Nickel Corp. common shares are listed on the Canadian Securities Exchange (CSE: TN) (OTCQB: TTSRF) (FSE: 8TA). Currently, there are 130,995,782 shares outstanding (137,784,671 fully diluted).
Dean MacEachern P.Geo. is the Qualified Person under NI 43-101 and has read and approved the technical content of this News Release.
For further information, please contact Mark Appleby, President & CEO, and a Director of the Company, at 416-804-0280 (info@tartisannickel.com). Additional information about Tartisan Nickel Corp. can be found at the Company's website at www.tartisannickel.com or on SEDAR at www.sedar.com.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
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20 February
Chalice Mining Makes Metallurgical "Breakthrough" at Gonneville Project
Chalice Mining ( ASX:CHN,OTC Pink:CGMLF) said on Monday (February 17) that it has made an important metallurgical breakthrough at its Gonneville projected, located in Western Australia.
The company said a hydrometallurgical process for nickel concentrate is no longer needed, as recent testwork results confirm that two saleable, smelter-grade flotation concentrates can be produced across the entire sulphide resource.
Managing Director and CEO Alex Dorsch said in a press release that this new information "materially reduces" capital and operating costs for Gonneville, also substantially reducing technical risk and process complexity.
Gonneville was discovered by Chalice geologists in 2020, and is wholly owned by Chalice Mining. The company says it is the first discovery of its kind in Australia, hosting palladium, platinum, nickel, copper and cobalt.
In 2024, the discovery was the recipient of two major project status honours, one from Western Australian Premier Roger Cook in September, and another from Commonwealth Minister for Industry and Science Ed Husic in October.
These recognitions underscore the project’s role in Australia’s future critical minerals ambition.
Chalice is currently working on a prefeasibility study for Gonneville, and said testwork and optimisation will continue through the first quarter. Prefeasibility work began in 2023, with completion targeted in mid-2025.
In July 2024, Chalice signed a non-binding strategic memorandum of understanding with Mitsubishi (TSE:8058).
The company said at the time that this arrangement will be beneficial to the project, allowing for collaboration on marketing and offtake solutions and improvements in optimization for Gonneville.
Under Australia's newly legislated Critical Minerals Production Tax Incentive, the project may receive a 10 percent tax offset for its carbon-in-leach leaching, which qualifies as an eligible expenditure.
Shares of Chalice rose as high as AU$1.60 after the news on Monday, but pulled back later in the week.
Chalice said it is well positioned moving forward, with AU$90 million in cash and listed investments.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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19 February
Anglo American to Sell Nickel Business to MMG for Up to US$500 Million
Anglo American (LSE:AAL,OTCQX:AAUKF) has agreed to sell its Brazil nickel operations to MMG Singapore Resources, a subsidiary of MMG (OTC Pink:MMLTF,HKEX:1208), for a cash consideration of up to US$500 million.
According to a Tuesday (February 18) press release, the transaction includes Anglo American’s Barro Alto and Codemin ferronickel operations, along with two development projects, Jacaré and Morro Sem Boné.
The purchase price comprises an upfront payment of US$350 million, a potential price-linked earnout of up to US$100 million and a further US$50 million contingent on a final investment decision for the development projects.
The transaction remains subject to regulatory and competition approvals, with completion expected by Q3 2025.
Anglo American Chief Executive Duncan Wanblad said the sale is a key milestone in furthering the company’s restructuring strategy, which involves divesting certain assets to focus on copper, premium iron ore and crop nutrients.
“Today’s agreement, together with those signed in November 2024 to sell our steelmaking coal business, is expected to generate a total of up to US$5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses,” Wanblad explained, adding that the company sees MMG as a safe and responsible operator.
MMG Chief Executive Cao Liang described the acquisition as a strategic move to diversify the company’s asset base and expand its presence in Latin America, highlighting MMG’s longstanding collaboration with Anglo American.
Anglo American’s nickel operations serve both the stainless steel and battery sectors, and Barro Alto is the only nickel mine globally that is certified by the Initiative for Responsible Mining Assurance.
Together, the company's assets produced 39,400 metric tons of nickel in 2024.
Since last year, Anglo American has been refocusing to concentrate on key commodities while divesting non-core assets.
As mentioned, in November 2024, it reached agreements to sell its steelmaking coal business.
Anglo American has also announced plans to divest its De Beers diamond unit, and is proceeding with the planned demerger of its platinum operations, which is expected to be completed by June 2025.
Platinum remains key for the automotive industry, and despite growing demand for electric vehicles, which do not use platinum-group metals, the company believes supply constraints in South Africa could support future pricing.
Anglo American will retain a 19.9 percent stake in the demerged platinum unit, but will not have board representation. The company has stated that it intends to gradually reduce its stake over time.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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12 February
Nornickel's Net Profit Dips 37 Percent as Western Sanctions and Market Hurdles Persist
Moscow-based miner Norilsk Nickel (Nornickel) reported a 37 percent decline in net profit for 2024, citing ongoing western sanctions and lower metal prices as primary factors affecting its financial performance.
According to the company’s 2024 financial results, consolidated revenue fell 13 percent year-on-year to US$12.5 billion. EBITDA was down 25 percent to US$5.2 billion, with net profit dropping 37 percent to US$1.8 billion.
Company President Vladimir Potanin said that geopolitical restrictions, reduced access to western equipment and shifting trade patterns have negatively impacted the company’s ability to generate cashflow.
“Our business as part of Russian economy remains under significant external pressure. Sanctions and restrictions as well as falling prices of our key metals continued to weigh on our revenue, profitability and ability to generate cash flow," Potanin commented in a press release shared on Monday (February 10).
“Nevertheless, in 2024 we managed to focus on operations and reverse the negative momentum."
CFO Sergei Malyshev said that Nornickel’s board would not recommend paying dividends for 2024.
Although Nornickel itself is not directly sanctioned, broader measures against Russian industries have led to reduced purchases from western clients, disrupted payment channels and logistical difficulties.
The company has redirected its sales to Asian markets to mitigate these effects.
Nornickel is forecasting a global nickel surplus of 150,000 metric tons in 2025, the same as its 2024 surplus estimate. In terms of the market for palladium, which it also produces, it's expected to remain balanced.
The company notes that the US administration’s policy direction on vehicle electrification could influence palladium demand, given its use in internal combustion engine exhaust systems.
Nornickel was tight-lipped about its discussions surrounding a Chinese joint venture.
In December, two sources familiar with the matter told Reuters the company was in talks with Chinese conglomerate Xiamen C&D (SHA:600153) to establish a joint venture to process Nornickel’s copper raw material into metal. Nornickel confirmed the negotiations at the time, and said in a conference call this week that it can't disclose further details.
Nickel market facing challenges in 2025
On a macro level, the nickel market is under pressure due to oversupply and slow demand growth.
The base metal experienced price volatility in 2024, with a brief surge in the first quarter followed by a decline, closing the year in the US$15,000 to US$15,200 per metric ton range.
Industry analysts have pointed to a continued supply glut as a key factor suppressing prices.
For instance, Indonesian production has expanded significantly in recent years, adding to the global nickel surplus. Efforts to rebalance the market have been slow, with limited price recovery expected in 2025.
The potential policy shifts under US President Donald Trump’s administration could further influence the global nickel market. The Inflation Reduction Act, introduced under the previous administration, imposed restrictions on the sourcing of critical minerals for electric vehicle (EV) batteries. Current rules require that nickel suppliers meet foreign entity of concern standards to qualify for tax credits in the US EV market.
Under existing provisions, companies linked to China, Russia, Iran or North Korea cannot hold more than 25 percent control over entities supplying critical minerals for US EV batteries.
This has affected Indonesian nickel exports, as many projects in the country have significant Chinese ownership.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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11 February
Blackstone Minerals Expands Portfolio with Mankayan Copper-Gold Project Acquisition
In a strategic move that marks a significant expansion beyond the company's nickel-mining operations, Blackstone Minerals (ASX:BSX,OTC Pink:BLSTF,FWB:B9S) has announced a merger of equals with IDM International to acquire the Mankayan copper-gold project in the Philippines.
This acquisition positions Blackstone to leverage its expertise in the evolving mining landscape, driven by energy transition requirements, according to Blackstone Managing Director Scott Williamson.
"We can leverage (the) experience that we have from operating in Vietnam, which is a similar jurisdiction. We've operated in Vietnam for the last five or six years; we've been focused on nickel in Vietnam. Now we can use that team and our expertise in developing mines in Vietnam to the Mankayan project in the Philippines," he explained.
The Mankayan project is renowned for its high-grade copper and gold potential, supported by impressive historical drill results. Williamson emphasized the project's significance, indicating the potential for a substantial resource expansion.
Blackstone's future plans for the Mankayan project include an aggressive exploration and development strategy.
"We're looking to do a bit of geophysics, but then also, once the merger has been completed, assuming it is all successful, then we would look to do further drilling. We think that there's opportunity to expand the resource," Williamson said.
The Philippines presents a favorable backdrop for this acquisition. Williamson pointed out that the government's pro-mining stance, coupled with successful operations by other companies in the region, creates an opportune climate for development.
Watch the full interview with Blackstone Minerals Managing Director Scott Williamson above.
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