Canadian miner Barrick Gold records 78% profit jump in Q1 2021

6 May | earnings

Canadian miner Barrick Gold has reported adjusted net earnings of $507m in the first quarter of 2021, a 78% year-on-year surge benefitting from increases in gold and copper prices.


The comparable figure in the same quarter of 2020 was $285m, or $0.29 per share. A year ago, adjusted net earnings per share were $0.16.


Net earnings were $538m, or $0.3 a share in the first quarter of 2021.


Operating cash flow and free cash flow were $1.3bn and $800m, respectively. Net cash grew by $500m despite an advanced tax payment to the state of Nevada.


Stronger copper prices had a positive impact on copper revenues, which climbed 31%.


The company’s gold production dropped to 1.10 million ounces (Moz) from 1.25Moz.


The firm also said that it will offer $0.09 cents per share as a quarterly dividend. This is the first $250m tranche of a return of capital distribution totalling $750m.


The remainder of $500m will be distributed in two equal tranches.


Barrick senior executive vice-president and chief financial officer Graham Shuttleworth said: “Based on the current number of outstanding shares, the distribution of this first tranche represents approximately $0.14 per share, with the three tranches to be distributed during 2021, representing approximately $0.42 per share in total.


“In addition to the current quarterly dividend of $0.09 per share, these distributions are providing Barrick’s shareholders with a significantly enhanced return in 2021.”


The firm also had a positive outlook about the months ahead, anticipating the production in the latter half of the year to be higher than the first.


The reason cited for the growth is mine sequencing at Nevada Gold Mines; commissioning of the new leach pad facility at Veladero, Argentina; higher anticipated grades at Lumwana, Zambia; as well as the ramp-up of underground mining at Bulyanhulu.


Barrick president and CEO Mark Bristow said: “The rise in the gold price has prompted a resurgence of the short-termism, which has plagued the market, with some investors focusing on short-term gains rather than sustainable growth.


“But Barrick is building a business for the long term and our focus remains firmly on the future and on the creation and delivery of long-term value to our shareholders and all our other stakeholders.”

6 may | deal

Wenco acquires fatigue monitoring wearable device maker SmartCap


Wenco International Mining Systems has acquired all assets and intellectual property of fatigue monitoring wearable maker SmartCap Technologies.


The deal will merge fatigue monitoring capability to the safety solution portfolio of Wenco.


The SmartCap device evaluates fatigue levels in real-time and screens for oncoming microsleeps that can cause safety hazards. More than 5,000 consumers in mining, trucking, and various other sectors are using the device.


Wenco noted that the SmartCap improves the workers’ ability to stay safe.


SmartCap CEO Tim Ekert said: “This purchase is an important step for the continued growth of the SmartCap fatigue technology. We have made significant progress these past eight years and we are proud of every safety incident our technology has prevented.


“We believe joining Wenco will enable us to grow even further and increase the safety of even more industrial operations.”


Lately, Wenco and its parent company, Hitachi Construction Machinery, have concentrated on solutions for simplifying and enhancing end-to-end mining venture, with safety as the primary concern.


SmartCap is expected to add a fatigue analysis layer for operator protection to the digital mining drive.


It may be incorporated under HCM’s Solution Linkage family, the ICT/IoT solution platform for worldwide mining and construction clients made in response to high demands for enhanced safety, lifecycle cost, and output.

5 may | projects

Barrick urged to cancel $1.3bn Pueblo Viejo expansion project


Civil society groups are reportedly calling on Canada’s Barrick Gold to stop the $1.3bn expansion plan of its Pueblo Viejo gold mine in the Dominican Republic due to environmental concerns.


In March 2020, Barrick Gold unveiled plans to extend the life of the mine beyond 2040. The company aims to exploit the lower grades in the orebody through the expansion work.


As part of the plan, Barrick said that it will initially invest $1.3bn to expand the processing plant and tailings facility at the mine.


However, civil society groups have flagged concerns over the expansion project, citing its risks due to increased mine waste and threats to the rights of local communities, reported Reuters.


According to the news agency, a total of 87 environmental and aid groups signed a letter opposing the expansion plan.


Barrick CEO Mark Bristow was cited by the news agency as saying that formal engagements have started between the company and communities in this regard. This follows more than a year of informal meetings.


However, ‘detractors’ restricted more than 200 people from taking part in the community meeting held for the expansion work, Bristow added.


Located 100km from Santo Domingo, the Pueblo Viejo mine is a joint venture between Barrick Gold (60%) and Newmont Goldcorp (40%).

4 may | deal

Golden Predator calls off deal to acquire Viva Gold


Golden Predator Mining and Viva Gold have mutually agreed to terminate the agreement for the proposed acquisition of Viva Gold.


Signed in early March this year, Golden Predator had agreed to acquire all issued and outstanding shares of Viva Gold, with an aim to create a premier junior gold producer.


The deal was expected to consolidate Viva Gold-owned advanced stage Tonopah Gold Project in Nevada, US, and Golden Predator’s formerly operating Brewery Creek Gold Mine in the Yukon, Canada.


In a statement, Viva Gold said: “The tabulation of proxies and voting instructions submitted confirmed that a majority of shareholders who voted, voted for the arrangement, but this total did not meet the supermajority hurdle required.”


Viva plans to continue to advance the exploration and development of the Tonopah Gold Project, which comprise approximately 8,800 acres of land with potential for high-grade measured, indicated, and inferred gold resources.


Despite the terminated agreement, Golden Predator said that it will proceed with its plan to issue 8.62 million common shares of C2C Gold to the company’s shareholders.


Golden Predator will now work on securing renewed mining and water usage licences from the Yukon Department of Energy, Mines, and Resources, as well as the Yukon Water Board for the Brewery Creek project.


The company is seeking ten-year extensions to the mining and water usage licences, which are due to expire on 31 December 2021.

4 may | energy transition

Plan to extend Turow mine’s life may risk EU climate fund access to Poland


The European Commission (EC) has reportedly said that Poland’s access to the EU’s green transition fund would be impacted due to the country’s decision to extend the life of the Turow coal mine until 2044.


The EU’s Just Transition Fund is a financial instrument with an overall budget of €17.5bn, which would help regions reduce their dependence on fossil fuel industries and replace them with green enterprises as the EU aims to become climate neutral by 2050.


Employing more than half of the coal industry workforce in Europe, Poland is expected to receive the biggest share of the EU’s green transition fund.


The decision to extend the life of the Turow coal mine, which is owned by Polska Grupa Energetyczna, was announced by the Polish Government last week, enraging several environmental groups.


EC spokeswoman Vivian Loonela was reported by Reuters as saying: “That certainly puts at risk the use of the Just Transition Fund to support this region where, as we can see, the transition is not planned from now until 2030.”


To gain access to the EU fund, regions need to submit plans on how the mine shutdowns will be managed and workers retrained, reported the news agency.


The Czech Republic filed a lawsuit at the European Court of Justice earlier this year, suing Poland for its six-year licence extension issued to the Turow mine in March 2020.


The lawsuit is the first-ever case in the history of the EU, where one member state of the bloc sues another on environmental concerns.

3 may | projects

Liberty Mutual delays environment impact filing for Australian coal project


Mount Ramsay Coal Company, a unit of insurance firm Liberty Mutual, has put on hold the environmental impact assessment filing scheduled on 30 April for the Baralaba South coal project in Australia.


The deadline slip comes as Liberty Mutual’s local arm seeks alternatives for the controversial mine.


Expected to produce five million tonnes per year of run-of-mine coal, the project is being opposed by community groups, led by Save the Dawson, citing its adverse impact on pollution and climate change.


Liberty Mutual spokeswoman was reported by Reuters as saying: “As part of our investment processes, we’ve been evaluating alternatives for our Baralaba investment for some time and will not be submitting an environmental impact assessment for the South Mine at this stage.


“We remain committed to collaborating with all stakeholders.”


The Queensland Department of Environment and Science spokesperson was quoted by the news agency as saying: “If they don’t submit within the next 12 months, the EIS process lapses.”


As a result, Liberty Mutual is required to start a whole new process with new terms of reference for the project development, the spokesperson noted.


Welcoming Liberty Mutual’s decision, Save the Dawson group member Paul Stephenson said that a decade-long battle has been won and called on Liberty Mutual to withdraw its application entirely.

In brief

Prairie Lithium acquires subsurface mineral permits in Canada


Lithium brine extraction and technology development company Prairie Lithium has acquired 188,000 acres of subsurface mineral permits in Saskatchewan, Canada, for an undisclosed sum.

Strandline makes final investment decision for Australia’s Coburn project


Strandline Resources has made the final investment decision to proceed with the development of the 100%-owned $261.5m (A$338m) Coburn mineral sands project in Western Australia.

Los Andes Copper secures environmental nod for drilling at Chilean mine


Los Andes Copper has secured approval to conduct drilling campaign at its Vizcachitas copper-molybdenum porphyry project in Chile.

Glencore to acquire German lead producer Weser-Metall


Glencore has reportedly agreed to acquire insolvent Germany-based lead producer Weser-Metall for an undisclosed sum.

Primero wins EPC contract for Coburn mineral sands project in Australia


Strandline Resources has awarded a $104.7m (A$135m) contract to NRW Holdings Group to build the processing facilities for the Coburn mineral sands project in Western Australia.

30 april | regulation

Vale’s subsidiary receives fine over environmental irregularities in Brazil


The Brazilian city of Itaguaí has imposed a fine of $430,000 (Rs2.3m) on a port subsidiary of miner Vale for non-compliance with environmental laws.


The fine was imposed following an inspection of the iron ore and solid bulk terminal, which is operated by Vale subsidiary Companhia Portuária Baía de Sepetiba (CPBS).


Located on Madeira island in Rio de Janeiro, this terminal has an estimated loading capacity of 25,000tph of iron ore. It sources ore from Minas Gerais via rail.


The inspection report identified 17 irregularities, including an expired operating licence.


However, contesting the report, Vale was quoted by Reuters as saying that CPBS has a valid operating licence granted by the state environmental agency Inea for the terminal.


The news agency stated that Inea had also confirmed the validity of the terminal’s state license and its renewal.


Last week, Vale secured a permit from the state environmental agency in Rio de Janeiro to reopen its iron ore terminal in Mangaratiba.

This terminal was temporarily closed due to a lack of an operating permit.

29 april | deep-sea mining

GSR’s mining robot stranded on Pacific Ocean floor during trials


A deep-sea mining prototype robot developed by Global Sea Mineral Resources (GSR) was stranded on the Pacific Ocean floor following a malfunction during a test mission.


The Patania II mining robot was developed to explore and bring up rocks rich in cobalt and nickel from the Pacific Ocean floor at a depth of more than 13,000ft.


As part of the month-long trial and research programme, which started on 20 April 2021, the robot was connected to GSR’s Rainbow Warrior ship with a 5km cable.


The umbilical cable was detached from the machine when the first phase of trials was nearing completion, reported BBC News.


A GSR spokesman said: “On its final dive in the GSR area, a lifting point separated and Patania II now stands on the seafloor.


“An operation to reconnect the lifting point begins this evening and we will provide an update in due course.”


GSR plans to redeploy the machine if it is successfully retrieved to continue further research.


However, recovery of the machine in such extreme depths cannot be guaranteed.

In brief

Prairie Lithium acquires subsurface mineral permits in Canada


Lithium brine extraction and technology development company Prairie Lithium has acquired 188,000 acres of subsurface mineral permits in Saskatchewan, Canada, for an undisclosed sum.

Strandline makes final investment decision for Australia’s Coburn project


Strandline Resources has made the final investment decision to proceed with the development of the 100%-owned $261.5m (A$338m) Coburn mineral sands project in Western Australia.

Los Andes Copper secures environmental nod for drilling at Chilean mine


Los Andes Copper has secured approval to conduct drilling campaign at its Vizcachitas copper-molybdenum porphyry project in Chile.

Glencore to acquire German lead producer Weser-Metall


Glencore has reportedly agreed to acquire insolvent Germany-based lead producer Weser-Metall for an undisclosed sum.

Primero wins EPC contract for Coburn mineral sands project in Australia


Strandline Resources has awarded a $104.7m (A$135m) contract to NRW Holdings Group to build the processing facilities for the Coburn mineral sands project in Western Australia.