Investing News NetworkAUSTRALIA
See our exclusive index of companies on the move:
Explore Stocks- Top Stocks
- Top Australian Gold Stocks
- Top ASX Copper Stocks
- Top ASX Nickel Stocks
- Top ASX Rare Earth Stocks
- Top Battery Metals Stocks on the ASX
- Top Australian Lithium Stocks
- Top Graphite Miners on the ASX
- 10 ASX Cannabis Stocks
- Top ASX Tech Stocks
- Top AI Stocks on the ASX
- On Site
- About Australian Cannabis Investing
- About Australian Resource Investing
- About Australian Tech Investing
- About Australia Investing
- Of Interest
- ASEAN-Australia-New Zealand Trade Agreement
- Association of Southeast Asian Nations (ASEAN)
- Australian FAQ on ASEAN
- Australia Government on Foreign Investments
Olivia Da Silva
Havilah Shareholders Turn Down AU$100 Million GFG Investment
Despite previous signals pointing towards a greenlit deal, Havilah Resources’ (ASX:HAV) shareholders have rejected a proposed AU$100 million investment from SIMEC Mining, a member of the GFG Alliance.
Originally announced in May, the share subscription agreement was set to provide funding to Havilah for work programs at its Maldorky, Grants and Grants Basin iron ore assets, along with the Mutooroo copper deposit and its nearby prospects in South Australia.
The extra cash, which Havilah called a “transformational capital injection” at the time, was to be received over a three-year period while the company completed definitive feasibility studies for its assets. If all the funding was to go through as planned, GFG would have been eligible to earn up to a 51 percent stake in Havilah in return.
However, a statement released by Havilah on Thursday (September 12) explained that the investment was rejected by company shareholders. According to the company, almost 60 percent of individual shareholders were in favor of the deal at an extraordinary general meeting (EGM).
Despite the masses voting in favor, Havilah Technical Director Chris Giles — who represents the company’s largest shareholder through his entity Trindal — rejected the proposed investment.
“Neither Havilah nor GFG would ever have contemplated entering into the proposed transaction unless Dr. Giles had been supportive of the proposed transaction in his capacity as a director of Havilah and as a shareholder,” the statement read.
Giles had originally supported the deal when it was first proposed; it is unclear as to what caused him to change his stance.
The statement from Havilah added that no alternative offer or deal has been put forward in light of the previous one having been rejected. As such, the company noted it would have to “move in a different direction” to extract value from its mineral deposits.
Additionally, a AU$5 million pro-rata rights issue that was set to take place as part of the AU$100 million deal at a discounted cost of AU$0.154 per share will no longer be happening.
Havilah’s stock price remained unchanged at AU$0.13 per share on Thursday as the company entered a trading halt on September 10. In Thursday’s press release, the company noted it had done this intentionally due to the impact Giles’ vote was set to have on the upcoming EGM and its outcome.
On the London Metal Exchange, copper was trading at US$5,763 per tonne as of September 11. Meanwhile, iron ore prices were up 1.91 percent to reach US$94.14 per tonne as of 4:50 a.m. EDT on Thursday.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Havilah Resources’ shareholders have rejected a proposed AU$100 million investment from SIMEC Mining, a member of the GFG Alliance.
Poseidon Preps to Restart Black Swan Operations
Thanks to improved pricing in the nickel market, Poseidon Nickel (ASX:POS) has announced that it is now in a position to restart its Black Swan nickel operations.
For some time now, the company has been weighing the option of resuming the operation, which includes its Silver Swan underground mine and the Black Swan open-pit mine and processing plant. Black Swan’s processing plant was originally built in 2007, but was put on care and maintenance in early 2009 due to a period of low nickel pricing.
Last summer, Poseidon released a feasibility study surrounding a potential restart of the operation. It laid out predicted revenues of AU$288.6 million with a pre-tax net present value of AU$43.6 million and a 92 percent internal rate of return.
For the time being, Poseidon’s board has approved an accelerated work program at the operation. This includes rehabilitation of all accessways and structures at the Black Swan plant, along with mine escape ladderways at Silver Swan. Lastly, the program entails dewatering of the Black Swan open pit. All the work is scheduled to be completed within six months.
Costs for the work program are docketed at AU$2.9 million; the work is considered time critical and a necessary precursor to providing a basis for a fast restart. Once the aforementioned areas are rehabilitated, the company will have proper access for the site inspections needed to finalize the restart decision and lock down major plant refurbishment contracts.
“We are now entering an important and critical time for Poseidon aided with tailwinds from improving, sustained increased nickel prices,” Poseidon’s interim CEO David Riekie said in a statement.
“Lower operating cost structure and ongoing cost savings together with optimization processes have been our recent focus. These priorities have been designed to ensure that the largest portion of any benefit achieved with increasing nickel prices translates to an improved overall stakeholder return.”
Located in Western Australia, the operation is expected to produce 8,000 tonnes of nickel annually in smeltable-grade concentrate from Black Swan and direct-shipping ore from Silver Swan. The feasibility study released last year estimated a total capital cost of AU$56.7 million for the operation’s refurbishment and development.
Nickel prices made significant jumps through the recent summer months, propelled forward by optimism surrounding its role in the electric vehicle market. Alongside the electric vehicle hype, nickel made gains on the back of speculation regarding a potential nickel ore export ban in Indonesia, which has since been confirmed to start January 1, 2020.
Poseidon’s share price closed 5.08 percent lower on Wednesday (September 11) in Australia, ending the day of trading at AU$0.056.
As of September 10, nickel was trading at US$18,060 per tonne on the London Metal Exchange.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
With improved pricing in nickel, Poseidon Nickel has announced that it is now in a position to restart its Black Swan operations.
Platina Enters Joint Venture for Blue Moon Zinc Project
Platina Resources (ASX:PGM,OTC Pink:PTNUF) has entered a joint venture (JV) agreement to earn both operatorship and a majority interest in the Blue Moon zinc project in the US.
Calling the agreement a “transformational transaction,” the company has the opportunity to earn up to 70 percent of Blue Moon. Platina will earn the first 50 percent by spending C$3.25 million over 18 months, followed by an extra C$3.75 million over another 18 months to earn an additional 20 percent.
The deal will also see Platina acquire a 5 percent equity interest in Blue Moon’s owner, Blue Moon Zinc (BMZ)(TSXV:MOON,OTC Pink:BMOOF), by subscribing to shares for C$300,000. The company can acquire an additional 5 percent interest in BMZ at market prices through a six month option.
“This transaction will create significant share value-uplift potential for Platina shareholders as the project advances towards development,” Corey Nolan, Platina’s managing director, said in a statement.
“While Platina is very actively focused on generating shareholder value for its core assets, the company believes exposure to another exciting investment opportunity at an early-stage will generate signifcant news flow as it advances through exploration, feasibility, permitting and into development.”
Nolan went on to lay out the company’s first plans for Blue Moon, which include a drilling program to expand the mineral resource and exploring the tenement package for new mineralization. The company is planning a drill program for 2019’s December quarter.
Located in California’s Mariposa County, Blue Moon’s project area previously housed a mine with operations dating back to the 1940s. The project consists of three land tenure components that span 445 acres, including two deeded and patented mineral claims owned by BMZ subsidiary Keystone Mines.
A mineral resource update released by Blue Moon last year lays out an inferred resource of 7.8 million tonnes grading 8.07 percent zinc equivalent. This includes an estimated 771 million pounds of zinc, 300,000 ounces of gold and 10 million ounces of silver.
Alongside the news of the JV, Platina announced a shareholder share purchase plan in order to raise $1.25 million, followed by a proposed placement to raise up to an additional $1.25 million. The funds are docketed to go towards advancing Platina’s project portfolio, along with completing the Blue Moon deal and other company costs.
As of Wednesday (August 28), zinc was trading at US$2,260 per tonne on the London Metal Exchange.
In Australia, Platina’s share price plunged 16.28 percent on Thursday (August 29) following the announcements, ending the day of trading at AU$0.036.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Platina Resources has entered a joint venture agreement to earn both operatorship and a majority interest in the Blue Moon zinc project.
Free Investor Report
Start Here – Investing in Bitcoin in Australia
Wondering how to start investing in bitcoin in Australia?
DOWNLOAD YOUR FREE REPORT TODAY!
Table of Contents
- Bitcoin Investing in Australia
- Investing in Physical Gold in Australia
- How to Buy Bitcoin in Australia
Who We Are
The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.
At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.
So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.
Superior Lake Resources Releases Zinc Project BFS
Superior Lake Resources (ASX:SUP) has released a bankable feasibility study (BFS) for its Superior Lake zinc project, which is set to have a nine year mine life.
Located in Ontario, Canada, the project is expected to have a post-tax net present value of US$115 million and a post-tax internal rate of return of 27 percent. Earnings before interest, tax, depreciation and amortization are docketed at US$59 million per year at full production; initial capital expenditure is set at US$86 million.
On the production side, the asset is set to produce 38,000 tonnes of contained zinc per year and 1,400 tonnes of copper annually. The plant’s throughput is set at 325,000 tonnes per year, with an average grade of 13.7 percent zinc.
“The purpose of this BFS was to validate Superior Lake becoming a viable zinc operation. This was clearly achieved, as the study demonstrates the project will generate strong cash flow throughout the nine-year mine life,” Superior Lake CEO David Woodall said in a statement.
“The driving factor for the result was the low all-in sustaining cost of US$0.47 per pound, which, if brought into production, would rank the project in the lowest quartile of producers globally.”
Making for an eventful day, the company also released a maiden ore reserve for the project. The reserve, listed in the probable category, comes in at 1.96 million tonnes at 13.9 percent zinc, 0.6 percent copper, 0.2 grams per tonne (g/t) gold and 26.2 g/t silver.
The project’s mineral resource is docketed at 2.35 million tonnes at 17.7 percent zinc, 0.9 percent copper, 0.38 g/t gold and 34 g/t silver across the indicated and inferred categories.
Going forward, the company plans to focus on finalizing offtake, equity and debt financing, along with completing an optimization study that will lead to an official decision to mine.
On Tuesday (August 27), Superior Lake announced that it has received non-binding indicative proposals from many sources to finance the project’s development. According to the company, the proposals range between US$50 million and US$75 million. In a statement, Woodall commented that Superior Lake is aiming to begin project development in 2020’s first half.
At the end of trading on Wednesday (August 28), Superior Lake’s share price remained unchanged at AU$0.017.
On the London Metal Exchange, zinc was trading at US$2,269 per tonne as of Tuesday.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Superior Lake Resources has released a bankable feasibility study for its Superior Lake zinc project, which is set to have a nine year mine life.
Sandfire Profits Fall, Metals Production Hits Records
While profits were lower than in its 2018 fiscal year (FY18), Sandfire Resources (ASX:SFR,OTCQB:SRAFF) is showing off record copper and gold output from its DeGrussa asset.
In its annual financial results report, Sandfire lays out a group net profit after tax of AU$104 million, down from FY18’s AU$120.8 million. The company noted the fall of copper prices during its 2019 fiscal year (FY19), which impacted profits. However, between DeGrussa’s record production, record low C1 costs and a lower Australian dollar, the blow from copper’s weakened state was offset.
FY19 saw the production of 69,394 tonnes of contained copper and 44,455 ounces of contained gold out of DeGrussa. At a C1 cost of US$0.83 per pound, this was Sandfire’s highest operational performance in terms of volume and cost.
“The quality, grade and consistency of the DeGrussa operation once again shone through with the project delivering its best-ever production performance in terms of key physicals and record low operating costs underpinned by a focus on cost control and optimisation,” Sandfire Managing Director Karl Simich said in a statement.
Simich went on to highlight strengthening and diversifying the company’s pipeline as one of its key objectives for the year.
“Other highlights during the year included the successful development and ramp-up of the new high-grade Monty copper-gold mine, which is now feeding ore into the DeGrussa concentrator, and the significant progress we made in advancing our global growth strategy.”
Sandfire had a busy year, with one notable move being its attempts to coax MOD Resources (ASX:MOD,LSE:MOD) into an acquisition. In January, MOD shot down a deal from Sandfire on the basis that the AU$113 million offer undervalued MOD’s assets, primarily its T3 copper project in Botswana.
After going back to the drawing board, the two companies announced in June that they had executed a binding scheme implementation deed. With a fresh offer of AU$0.45 per share, or AU$167 million, the two came to an agreement.
Simich noted in Tuesday’s (August 28) release that the acquisition should be completed in late October. It will be followed by exploration activities in Botswana and the optimization of T3’s feasibility study.
Sandfire also laid out its production forecast for the 2020 fiscal year, saying output is set to grow to 70,000 to 75,000 tonnes of copper and 38,000 to 42,000 ounces of gold at a C1 cost of US$0.90 to US$0.95 per pound.
As of August 23, copper was trading at US$5,674.50 per tonne on the London Metal Exchange.
In Australia, Sandfire’s share price was up 3.07 percent on Tuesday, ending the day of trading at AU$5.70.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
While profits were down compared to 2018’s results, Sandfire Resources is proudly showing off record production from its DeGrussa operation.
Fortescue Profits Jump on Boosted Iron Ore Prices
Fortescue Metals Group (ASX:FMG,OTCQX:FSUGY) reaped the benefits of iron ore’s recent price spike with a record after-tax net profit of US$3.2 billion for its 2019 fiscal year (FY19). That’s a 195 percent boost from the previous year (FY18).
The company shipped 167.7 million tonnes of ore in its FY19, marking a 1 percent drop from its FY18. However, average revenue came to US$65 per dry metric ton, which is a 48 percent increase from FY18, pushing total revenue to US$10 billion, a 45 percent boost from FY18.
Fortescue has attributed the revenue spike to several causes, including continued strength in Chinese stainless steel production and an increased volume of higher-value products shipped.
Commenting on Fortescue’s results was CEO Elizabeth Gaines, who highlighted the company’s record dividends and balance sheet strength, as well as demand for iron ore.
“Fortescue’s unwavering determination to deliver shareholder returns through dividends and investment in growth was evident in FY19 with record fully franked dividends of AU$1.14 per share declared, a significant increase on FY18 dividends of AU$0.23 per share,” she said in a statement.
“We have seen a strong start to FY20 and Fortescue is well positioned to continue to deliver benefits to all stakeholders, including our customers, employees and the communities in which we operate while rewarding shareholders.”
In early July, iron ore prices skyrocketed to five year highs on the back of supply concerns stemming partly from a tailings dam collapse at Vale’s (NYSE:VALE) Córrego do Feijão mine in Brazil early this year.
As experts began making predictions that iron ore supply would see at least a two year shortfall, prices jumped as high as US$123.19 per tonne. As Australia is the world’s largest exporter of iron ore, majors in the country are working to step up production to help fill the deficit.
Fortescue is included in this list of majors and has been no stranger to boosting iron ore production in recent months. In late May, the company approved the development of the Queens Valley mining area, set to be part of the pre-existing Solomon Hub in Western Australia’s Pilbara region.
Solomon currently includes the Firetail and Kings Valley mines, which host a cumulative production capacity of 70 million tonnes per year.
Looking ahead, Fortescue laid out guidance for its 2020 fiscal year, which is set to see 170 million to 175 million tonnes in shipments, including 17 million to 20 million tonnes of its West Pilbara Fines product. Total capital expenditure is docketed at US$2.4 billion, US$150 million of which is docketed for developing Queens Valley.
In Australia, Fortescue’s share price closed 5.28 percent lower on Monday (August 26), ending the day of trading at AU$7.17.
Meanwhile, iron ore prices fell 0.47 percent to hit US$92.45 as of 4:35 a.m. EDT on Monday.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Fortescue Metals Group saw a record annual after-tax net profit of US$3.2 billion, a 195 percent boost from the previous year.
