Archive for the ‘SELLING DISPOSAL’ Category

Allana Potash sold to Israel Chemicals for $137 million

Thursday, April 2nd, 2015

Allana Potash sold to Israel Chemicals for $137 million

Canadian junior miner Allana Potash Corp. (TSX:AAA) has agreed to be acquired by fertilizer giant Israel Chemicals Ltd. (ICL) after it failed to raise the capital it needed to remain as a standalone company.

The market reacted positively to the news as the stock was trading almost 44% higher at 47.5 Canadian cents in Toronto at 11:18 am

The $109.50 million takeover(or Cdn$137M), aims to speed up development of Allana’s promising Danakil project in northeast Ethiopia.

“Considering the generally challenging financial environment for junior mining companies, we would expect the short and long-term financing needs of Allana to include potentially significant dilution to Allana’s current shareholders,” Allana chief executive, Farhad Abasov, said in the statement.

ICL already owns 16.4% of Allana’s shares and the deal is expected to close by August 17

Danakil project location shows in below map

Allana Potash sold to Israel Chemicals for $137 million

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Henry Sapiecha

 

Montana-based Sunlight Mine offloaded by Barrick Gold

Friday, July 4th, 2014

montana-based-sunlight-mine image www.www-globalcommodities.com

Barrick Gold (TSX, NYSE:ABX), the world’s largest producer of the precious metal, is reportedly ready to offload its aging Golden Sunlight mine in southwestern Montana, US, as part of a now two-year-long move to shed non-core assets and pay back debts.

According to The Wall Street Journal, the gold giant has hired Canadian Imperial Bank of Commerce (CIBC) to help sell the mine, which it acquired after taking over Placer Dome in 2006.

The open-pit mine, located in Jefferson County, is one of Barrick’s smallest properties, producing 92,000 ounces of gold in 2013

The open-pit mine, located in Jefferson County, is one of Barrick’s smallest properties, producing 92,000 ounces of gold in 2013, according to the company’s website.

In January, the Toronto-based company sold its interest in the Kanowna operation in western Australia to Northern Start Resources for $75 million cash. The transaction followed the sale of its Plutonic mine also to Northern Star for $25 million in December.

Barrick’s earning per share plummeted in the most recent quarter, in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years.

Being the most debt-heavy company in the gold sector has meant for Barrick to be among those that have lost the most due to volatile bullion prices.

“The company has never been known for managing its cash or resources well or, for that matter, being investor friendly,” writes Steve McDonald, bond strategist for The Oxford Club.

“It has a history of being too aggressive in its growth efforts and having too many underperforming assets that are too spread out,” he adds.

Barrick’s shares were down -0.55% to $18.24 Thursday in pre-market trade.

Henry Sapiecha

Newmont ceases all operations in Indonesia, declares force majeure

Friday, July 4th, 2014

Newmont Mining Corp. (NYSE:NEM) halted Thursday operations at its Indonesian gold and copper mine and will put 3,200 workers on leave with reduced pay from Friday, after it failed to reach a compromise with the government over export restrictions.

newmont-halts-all-operations-in-indonesia-declares-force-majeure image www.www-globalcommodities.com

The Colorado, US-based mining giant had stopped copper concentrate output from its Batu Hijau mine on Tuesday and warned the results of government talks would determine the future of its employees.

Despite our best efforts, we have not been able to export copper concentrate since January, and we still do not have an export permit

Despite our best efforts, we have not been able to export copper concentrate since January, and we still do not have an export permit,” Martiono Hadianto, the president director of Newmont’s Indonesian unit, said in the statement. “We have taken numerous steps to help resolve the export issue and support the government’s desire to increase in-country smelting.”

The force majeure, which allows the company to miss deliveries because of circumstances beyond its control, signals Newmont does not expect a quick resolution to its dispute with the government. Indonesia banned raw ore shipments on Jan. 12 and put a tax on concentrates in an effort to spur companies to build smelters domestically.

Job losses

Freeport has warned previously that the export ban would force it to cut production by 60%, resulting in 15,000 job losses and costing the government an annual $1.6 billion in lost royalties and taxes.

Indonesia is a key global supplier of metals and a law implemented in January banning exports of raw minerals unless companies build processing plants has thrown the industry into turmoil.

Newmont and rival Freeport-McMoRan (NYSE:FCX), which operates a much larger copper and gold mine in Indonesia, both claim that the export restrictions breach their contracts of work and have been locked in negotiations with mining officials for months to find a workaround.

The Batu Hijau copper and gold mine, on the island of Sumbawa Barat, began its operations in 2000. Newmont had forecasted copper concentrate output for 2014 at 110,000-125,000 tonnes before the new export rules.

Henry Sapiecha

Freeport-McMoran considering the sale of largest copper mine in Chile

Friday, July 4th, 2014

copper-mines-in-chile Candelaria mine.image www.www-globalcommodities.com

Freeport-McMoRan Copper & Gold’s (NYSE:FCX) Chilean copper mine Candelaria has attracted the interest of Magris Resources, the private equity firm founded by former Barrick Gold Corp (TSX:ABX) chief executive Aaron Regent.

Citing unnamed sources, The Wall Street Journal says the mining complex — one of Freeport’s largest— has been in the market for some time.

The open-pit and 6,000 metric ton-per-day (mtd) underground copper mine, located in Chile’s copper-rich north, is adjacent to the Ojos del Salado mine.  Combined production from both operation reached 87 million pounds of copper in the first quarter, roughly 9% of total production of the red metal at Freeport’s mines.

Thanks to these and other copper assets, the Arizona-based company surpassed Chile’s state copper producer Codelco in 2013, briefly reaching the status of world’s largest copper producer.

Henry Sapiecha

Anglo American places platinum mines & other assets up for sale

Friday, July 4th, 2014

anglo-american-goes-ahead-and-puts-platinum-mines-other-assets-up-for-sale image www.www-globalcommodities.com

We are going to sell one, two … most of our under-performing assets.

Anglo American’s (LON:AAL) platinum unit, Amplats, is going ahead with its announced plans of selling off its strike-hurt mines in South Africa, as part of plans to divest under-performing assets valued at as much as $4 billion.

The company, Britain’s The Sunday Times reports, has appointed FirstRand Ltd. (FSR)’s Rand Merchant Bank to auction some of its Rustenburg-based mines, which have been in operation since the 1950s.

In an April interview, chief executive officer Mark Cutifani said he didn’t think those mines were key for the company. His statement took on a whole new meaning after Amplats reported it had lost output worth about $1.1bn during the five-month strike over pay at its mines, the same ones that last year accounted for over 40% of the company’s total platinum production.

Other assets up for sale, the Sunday Times says, include copper mines in Chile and nickel holdings in Brazil.

Sibanye Gold (NYSE:SBGL) —South Africa’s top bullion producer— has been repeatedly hinted as the most likely buyer for Anglo’s mines in the platinum belt.

Cutifani, who became CEO in April 2013, said last year he considered performance at the mining group to have been “unacceptably poor” and set a goal of improving Anglo’s return on capital to at least 15% by 2016 from about 8% in June.

South Africa, Africa’s largest economy, holds about 80% of the world’s known platinum reserves, accounting for about 70% of global output, used for jewellery, catalytic converters in vehicles, and as a key source of hard currency for the country, among other applications.

Mark Cutifani delivering a speech at Mining Indaba 2013, via YouTube.

Henry Sapiecha

 

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