Price surge of steelmaking ingredient has created a huge cash windfall for big producers
The price of iron ore remained above $120 a tonne on Wednesday after BHP Group, one of the world’s biggest suppliers of the steelmaking ingredient, revealed annual exports had declined for the first time this century.
In a trading update, the Anglo-Australian miner said it had shipped 270.5m tonnes of iron ore in the 12-months to June, down from 273.2m tonnes in 2018 — the first year-on-year decline in sales since at least 2000. Supply disruptions in Australia and Brazil and record steel production in China has seen the price of iron ore climb by almost 67 per cent this year to more than $120 a tonne, a level it last traded at in 2019.
The price surge has created a huge cash windfall for big producers like BHP and Rio, which at current prices are making more than $100 on every tonne of the commodity they ship to China, the world’s biggest consumers.
Both companies are tipped to announce big dividends when the announce results next month. At the start of its 2018/19 fiscal year, BHP expected to ship between 287m and 283m tonnes of iron ore but was forced to lower guidance after its mines in Western Australian were hit by a tropical cyclone and a major train derailment.
Rival Australian producer Rio has also suffered disruptions and has lowered its production forecasts twice since January. It expects to ship between 320m-330m tonnes of iron ore in 2019, down from 338.2m in 2018. Brazil’s Vale is also shipping less ore following a deadly dam disaster in January.
With BHP and Vale planning major maintenance programmes in September and October respectively, analysts reckon the iron ore market will remain tight. “BHP are expecting a modest production increase of 1 per cent to 6 per cent in 2020 [273m to 286m)”, said Paul Gait, an analyst at Bernstein Research.
“A planned maintenance programme . . . aimed at improving productivity has temporarily put a pause on any potential volume growth in the system.” In a report issued this week, analysts at Deutsche Bank said iron ore prices would not “break” sustainably below the $100 a tonne level until the first half of next year and then remain around $80 until 2021.
“One of the key takeaways from our [recent] China trip regarded clear evidence of a positive trajectory for infrastructure investment activity in the second half of the year, and only a modest deceleration in new [housing] starts during the same timeframe,” wrote analyst Nick Snowdon. “This points to a relatively healthy demand setting for iron ore in the second half of the year.”
In its trading update, BHP said it was likely to record $600m of exceptional items or charges to cover the costs of decommissioning a tailings dam in Brazil and redundancy costs. The company also flagged a $1bn hit from the impact of declining copper grades and the train derailment.
ECR Minerals plc (LON:ECR) the precious metals exploration and development company is pleased to announce that 5,090,000 New Ordinary Shares have been issued by the Company at a deemed share price of 1.0p per share in lieu of business support, marketing and communications services valued at £50,900.
The shares are to be issued to five different and unconnected service providers covering principally investor and public relations services.
Craig Brown Chief Executive Officer of ECR Minerals plc commented: “ECR continues to aggressively pursue its Australian gold project portfolio and has experienced exploration success across its Bailieston and Creswick projects in 2019. A third project, Timor, is now activated and exploration work is progressing on the ground.
Given the range and depth of our project interests and amount of operational activity, we are focused on maintaining strong and focused market communications to ensure our message is well distributed and properly understood.
I am pleased that our service providers have today taken shares in lieu of cash for services, which we believe demonstrates their confidence in the business model..
I look forward to updating the market with further developments at the earliest opportunity.”
ADMISSION OF SHARES AND TOTAL VOTING RIGHTS
Admission of the New Ordinary Shares is expected to occur on or around 24 July 2019. Following Admission of the Financing Shares, ECR’s issued ordinary share capital will comprise 450,930,783 ordinary shares of 0.001 pence. This number will represent the total voting rights in the Company, and, following admission of both the placing and subscription shares, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc
Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman
Craig Brown, Director & CEO
WH Ireland Ltd
Tel: +44 (0)161 832 2174
Katy Mitchell/James Sinclair-Ford
SI Capital Ltd
Tel: +44 (0)1483 413500
ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Limited has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, Australia and the Windidda Gold Project in the Yilgarn Region, Western Australia.
ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015 and is available for download from ECR’s website.
ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.
The directors of GVMH are delighted to announce that they have secured funding by way of £670K of convertible loan notes.
The loan notes have been issued as zero coupon Convertible Unsecured Loan Notes 2019 (the “Loan Notes”).
The Loan Notes are subject to no interest but are convertible at a price of £0.15 per Ordinary Share and are redeemable, to the extent they have not been converted into shares, on 1 July 2021.
For every four shares received by way of conversion of the Loan Notes, the holders of the Loan Notes (the “Holders”) will be given one warrant (the “Warrants”) to acquire one ordinary share of the Company. The Warrants are exercisable up to 2 years after issue at a price of £0.15 per Ordinary Share.
If the Loan Notes and Warrants are all converted into shares this would result in the Holders acquiring 5,609,210 shares in GVMH, representing approximately 5.5% of the newly enlarged shares in the Company.
Commenting on the issue of the Loan Notes, Jonathan Lo, Chief Executive, said:“This investment provides the working capital to further develop our business plan, consolidating our progress to date for further growth in future.”
The Directors accept responsibility for this announcement.
For more information:
|Grand Vision Media Holdings plc||http://gvmh.co.uk/|
|Edward Kwan-Mang Ng, Director||Tel: +44 (0) 20 7866 2145
|Alfred Henry Corporate Finance Ltd|
|Nick Michaels / Jon Isaacs||Tel: +44 (0) 20 3772 0021
Catenae Innovation (AIM: CTEA), the AIM quoted provider of digital media and technology, announces the resignation of Tony Sanders as a director of the Company and the appointment of Mr Anthony Flynn as a Non-Executive Director with immediate effect.
Resignation of Tony Sanders
Tony, who became Interim CEO in September 2017 and CEO in June 2018, has guided the Company through significant changes and developments, including the Company’s move into Blockchain technology.
Due to changes in personal circumstances, Tony feels he is unable to commit to continue as CEO and Chair of the Board. Nevertheless, he will maintain some ongoing involvement with the day to day business going forward, assisting in the promotion of the OnSuite product set and Blockchain products.
The Board would like to thank Tony for all his efforts and look forward to his continued support of the business.
Guy Meyer, Business Development Director, will take on the role of Interim CEO to lead the business through the next strategic phase of its development. The board also announces that Mr Kevin Everett takes on the role of Interim Non-Executive Chairman with immediate effect. Kevin first joined the Board as a Non-Executive Director on 16 May 2013.
Appointment of Anthony Flynn
The board is pleased to announce that Mr Anthony Michael Flynn has been appointed as Non-Executive Director with immediate effect.
The appointment of Anthony Flynn significantly strengthens the capabilities of the board, as well as contributes to its enhanced corporate governance. Mr. Flynn worked at de Zoete & Bevan in their Brokerage division, then in 1986 became a Director of Equities at BZW in London and finally in 1998 as Founder & CEO he set up XBZ Ltd. – a successful boutique Derivatives and Brokerage firm.
XBZ specialised in providing advice, price discovery and the execution of pan European Equity Derivatives to Financial Institutional clients, Inter Dealer Brokers (IDB), large proprietary Traders and Hedge Funds. The firm was recognised as one of the major sources of volume in each derivative exchange.
Mr. Flynn completed the final disposal of his holdings in XBZ in 2015. In the intermediary years he has provided consultancy services to SMEs in various capacities covering structural, financial and corporate governance.
The following information is disclosed pursuant to Schedule 2(g) of the AIM Rules for Companies:
Anthony Michael Flynn, aged 59, does not hold any directorships nor partnerships and has not done so in the past 5 years.
Anthony Michael Flynn is beneficially interested in 31,079,661 ordinary shares, representing 0.95% of the Company’s issued ordinary share capital. Anthony Michael Flynn does not hold any options nor warrants of the Company’s ordinary shares.
There is no further information to be disclosed pursuant to Schedule Two, paragraph (g) of the AIM Rules for Companies.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Kevin Everett, Interim Non-Executive Chairman
For further information:
|Catenae Innovation Plc
|Tel: 020 7929 7826|
Cairn Financial Advisers LLP, Nominated Adviser
Tel: 020 7213 0880
Turner Pope Investments (TPI) Limited, Broker
Tel: 020 3621 4120
Cadence Minerals Plc (KDNC) Auroch Minerals (ASX: AOU) – Saints Nickel Project Exploration Programme.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update today from Auroch Minerals Limited (ASX: AOU) (“Auroch”) on the Company’s exploration strategy for the recently-acquired Saints Nickel Project (“Saints”). Auroch entered into a formal Share Sale Agreement with Minotaur Exploration Ltd (ASX: MEP, “Minotaur”) on the 11th July 2019 to acquire 100% of Saints and the Leinster Nickel Project (“Leinster”).
- Auroch entered into a formal Share Sale Agreement with Minotaur to acquire 100% of the Saints Nickel Project and the Leinster Nickel Project in Western Australia on the 11th July 2019.
- 97.5% of the existing JORC 2012-compliant high-grade nickel Resources at Saints is fresh primary sulphide mineralisation (total Mineral Resources of 1.05Mt @ 2.00% Ni, 0.20% Cu & 0.06% Co).
- Significant upside potential to add to the Saints nickel resources through near-resource exploration and drill testing of postulated extensions along strike and/or down-plunge of known nickel sulphide mineralisation.
- Program of Work (PoW) applications have been submitted to the Department of Mines, Industry, Regulation and Safety (DMIRS) with drilling to commence in August 2019.
The Saints Nickel Project is located approximately 65km northwest of Kalgoorlie and 7km east of the Goldfields Highway. The tenement package comprises two mining leases covering an area of approximately 20km2 of prospective Archaean greenstone belt geology within the Eastern Goldfields province of the Yilgarn Craton.
The Saints Nickel Project high-grade deposit of 1.05Mt @ 2.00% Ni, 0.20% Cu, 0.06% Co1 has historically seen limited nickel exploration over the past decade, remaining open down-plunge and along strike with noteworthy proximal exploration potential through untested or partially tested electromagnetic (EM) conductors. Significant high-grade intercepts at Saints include 2.0m @ 3.17% Ni from 171m depth.
Auroch plans to commence its 2019 exploration programme at its high-grade Saints Nickel Project through a three-phase drilling programme that includes extensional, confirmatory and regional drilling. The Company’s proposed exploration strategy will provide greater confidence and aims to significantly increase the current mineral resources.
The full release can be found at: https://www.investi.com.au/api/announcements/aou/74bab91c-3b2.pdf
Cadence Minerals CEO Kiran Morzaria commented: “Cadence views the acquisition of Saints and Leinster Nickel projects as excellent additions to Auroch’s existing portfolio of projects. As stated by Auroch CEO Aidan Platel, the maiden drill programme at Saints comes at an exciting time as the LME nickel price recently surpassed US$14,000/t. We look forward to further developments when drilling commences next month.”
– Ends –
For further information:
|Cadence Minerals plc||+44 (0) 207 440 0647|
|WH Ireland Limited (NOMAD & Broker)||+44 (0) 207 220 1666|
|Novum Securities Limited (Joint Broker)||+44 (0) 207 399 9400|
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identiﬁed by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reﬂect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
Alan Green discusses Tiziana Life #TILS, BigDish #DISH and Tertiary Minerals #TYM on the Vox Markets podcast
Alan Green discusses Tiziana Life Sciences (AIM: TILS, Nasdaq: TLSA), BigDish (AIM: DISH) and Tertiary Minerals (AIM: TYM) on the Vox Markets podcast. The interview is 7 minutes 50 seconds in.