TORONTO, March 1 (Reuters) – The euphoria that dominated the
global mining industry in recent years, when rapid Chinese
growth sent metal prices soaring, is fully spent. With metal
prices now stagnant and profit margins slim, budget cuts and
multibillion dollar writedowns have become the norm.
In reaction, shareholders have demanded blood over the past
year – sometimes in the form of a chief executive’s head -
leaving new management to usher in policies of cost controls and
disciplined spending. Traditional equity financing deals have
all but evaporated, leaving many small miners high and dry.
TORONTO, Feb 26 (Reuters) – First Quantum Minerals Ltd
may extend its hostile C$5.1 billion ($4.97 billion) bid
for rival base metal miner Inmet Mining Corp by a few
days, President Clive Newall said on Tuesday.
“There are a number of regulatory hurdles to go over, and we
hope they’ll all be done by tomorrow, but we may need to extend
slightly,” Newall said while addressing investors at the BMO
Metals & Mining conference in Hollywood, Florida.
TORONTO, Feb 21 (Reuters) – Newmont Mining Corp, the
No. 1 U.S. gold producer, said on Thursday that a more
disciplined approach to spending and cost cuts is its top
priority as leadership of the company shifts to Gary Goldberg,
who takes over as chief executive on March 1.
Newmont also reported a smaller-than-expected 4 percent drop
in adjusted fourth-quarter profit on lower metal production and
higher operating costs, which it vowed to bring under control.
TORONTO (Reuters) – Pan American Silver Corp, (PAA.TO: Quote, Profile, Research, Stock Buzz) said on Thursday it plans to focus on funneling excess cash directly to shareholders, helping to drive its shares up more than 6 percent a day after it said it was more than doubling its quarterly dividend.
The increased dividend payout may have softened the fourth-quarter loss that Pan American reported late on Wednesday, reflecting an impairment charge to write down part of the value of its Navidad project in Argentina.
TORONTO (Reuters) – Goldcorp Inc (G.TO: Quote, Profile, Research, Stock Buzz), Canada’s second largest gold producer, booked a lower-than-expected drop in adjusted quarterly profit on Thursday and said improved performance at two key mines positioned it for a strong year.
Goldcorp, which in January slashed its 2013 production forecast and increased development costs at growth projects, said fourth-quarter output benefited from a strong performance at its Penasquito gold mine in Mexico and its Red Lake gold mine in Canada. Both mines had struggled with operational issues earlier in 2012.
TORONTO, Feb 14 (Reuters) – Barrick Gold Corp
posted stronger-than-expected results on Thursday and
boosted confidence in its troubled South American project even
as it booked a $3.8 billion charge to write down the value of an
The world’s largest gold miner’s shares climbed as much as 5
percent as it offered evidence that it may have turned a page
after a year of struggling with rising costs, project delays and
long-term production cuts as the gold price flattened.
TORONTO, Feb 13 (Reuters) – Canada’s Kinross Gold Corp
reported on Wednesday a fourth-quarter net loss as an
impairment charge related primarily to its Tasiast gold mine in
West Africa outweighed a boost in revenue.
The gold miner took a $3.21 billion after-tax, non-cash
impairment charge related to Tasiast in Mauritania and the
Chirano gold mine in Ghana, both of which were acquired in the
company’s $7.1 billion takeover of Red Back Mining in 2010.
TORONTO, Feb 13 (Reuters) – Native protesters have blocked
the winter access road to De Beers’ Victor mine in Northern
Canada for the second time in less than two weeks, raising
concerns over supplying the diamond project before the spring
thaw makes the site inaccessible except by air, the company said
De Beers, a subsidiary of Anglo American Plc, has a
window of about 45 days to complete its winter transportation
program on the ice road. The company’s trucks have so far faced
disruptions on eight of 12 days since the program was launched.
TORONTO, Feb 7 (Reuters) – Teck Resources Ltd
warned on Thursday that global economic uncertainty would weigh
on demand for coal through the first half of 2013, sending
shares of the diversified Canadian miner down more than 5
The company plans to produce just 24 million to 25 million
tonnes in 2013 – or at least 2 million tonnes shy of capacity -
because demand for the steelmaking ingredient remains soft. It
also sees a drop in copper output this year.
TORONTO, Feb 7 (Reuters) – Canadian diversified miner Teck
Resources Ltd reported a sharp drop in fourth-quarter
earnings on Thursday as coal prices sagged, though production
cost cuts and strong copper sales softened the blow.
Shares of the company fell more than 3 percent shortly after
the market open as it warned that global economic uncertainty
was still weighing on prices and demand for some of its
products, particularly coal.