BHP reports strong first-half on rising commodity prices 

BHP has reported underlying attributable profits from continuing operations of $9.7bn for the six months ended 31 December 2021, a 57% surge from $6.2bn a year ago.  

The growth was driven by higher commodity prices, which offset the impact of the slowdown in demand from China. However, the profit is still less than the 185% growth recorded in the first half of the year. Underlying EBITDA, including the contribution from the firm’s now-divested petroleum assets, increased by 46%, to $21.38bn, from $14.68bn. 

The company reported net operating cash flow and free cash flow of $11.5bn and $8.5bn, respectively, for continuing operations amid higher realised prices across major commodities. Its net debt stood at $6.1bn at the end of 31 December 2021. BHP has now revised its net debt target range to $5bn-$15bn, from the previous range of $12bn-$17bn. 

BHP CEO Mike Henry said: “BHP had a strong first half. We mitigated the impacts of Covid-19 and significant adverse weather events to turn in a solid operational performance, particularly from our flagship Western Australian iron ore business. 

“We unified the BHP corporate structure with strong support from shareholders, we announced and advanced the proposed merger of our petroleum business with Woodside, we progressed our divestments of certain coal assets and we announced the final investment decision for our Jansen stage 1 potash project.” 

China’s Shenghe to acquire stake in Australian firm Peak Rare Earths 

Chinese rare earths producer Shenghe Resources has agreed to buy a 19.9% stake in Australia-based Peak Rare Earths for $28m (A$39.25m). 

The interest will be acquired by Shenghe’s subsidiary Shenghe Resources (Singapore) for A$0.99 per share from Appian Pinnacle.

Peak Rare Earths said that the deal, which is at the shareholder level, will not affect its daily operations, strategy, employees or leadership.

The firm’s core asset is the Ngualla rare earth project in Tanzania, which is claimed to hold one of the world’s largest, highest grade and lowest cost neodymium praseodymium (NdPr) rare earth deposits.  

Located near the Ngwala village and around 150km from Mbeya, the project is expected to create almost 600 and 3,000 indirect jobs during the construction phase, as well as nearly 220 direct and 1,000 indirect jobs during operations.

Peak Rare Earths also plans to construct a rare earth refinery in the Tees Valley, UK, to produce NdPr oxide and other separated rare earth products. 

Peak Rare Earths chair Tony Pearson said: “Shenghe is a leading participant in the global rare earth sector and we view its investment as a strong endorsement of the world-class nature of Peak’s integrated Ngualla-Teesside rare earth project.” 

AVZ to invest $18m for Manono lithium and tin project in DRC 

AVZ Minerals is set to make a $17.9m (A$25m) investment to support early works and exploration drilling at the Manono Project in the Democratic Republic of the Congo. 

A portion of a recent $54m (A$75m) capital raising, the funds are expected to help the firm maintain the Manono lithium and tin project’s progress timetable. The investment will also be used to fund a resource extension drilling programme at the Roche Dure deposit.

The firm said that the deposit has the potential to significantly expand the Joint Ore Reserves Committee-compliant mineral resource and ore reserves estimate that was reported earlier. 

The company is planning to allocate around $13.6m (A$19m) for the early works programme during the second half of the 2021/2022 financial year, while the remaining $4.3m (A$6m) will be used for additional resource drilling at Roche Dure deposit. 

In September 2021, AVZ Minerals secured $240m in funding from Suzhou CATH Energy Technologies, a private equity firm jointly owned by Pei Zhenhua and Contemporary Amperex Technology, to develop the Manono project.

In exchange, CATH would receive a 24% equity stake in a multi-faceted joint venture to develop the Manono Project. 

AVZ managing director Nigel Ferguson said: “This decision demonstrates the board’s confidence in receiving the support required to make the development of the Manono Project a reality and, importantly, should maintain our project development timetable despite the award of the mining licence taking longer than we had previously anticipated.” 

CopperCorp granted six exploration licences in Australia 

Canadian exploration firm CopperCorp Resources has secured permits for six exploration licences in western Tasmania, Australia. 

Valid for five years from the grant date, the licences are expected to add 1,208km² of new mineral tenement holdings at the company’s Alpine and Skyline projects.

Over the two projects, the firm’s total tenements holdings stand at 1,400km². These tenements are held by Georgina Resources, the Australian subsidiary of CopperCorp. 

The Alpine Project is located on the Neoproterozoic-Cambrian Arthur Metamorphic Complex (AMC), which also includes the Savage River magnetite mine. CopperCorp said that the new licences bring the total area of the Alpine Project to 1,066km² along 100km of strike length over the AMC. 

The new licences also bring the Skyline Project’s total prospective ground to 334km² along the eastern margin of the Cambrian calc-alkaline volcanic arc of the Mount Read Volcanics belt. 

The firm is now planning to drill several of the more advanced targets this year, and will also continue to focus on building a pipeline of drill targets over the large and prospective land package in western Tasmania. 

CopperCorp president and CEO Stephen Swatton said: “These new exploration licences granted to CopperCorp put the company in a dominant position over highly prospective yet under-explored terranes in western Tasmania. 

“These holdings underpin CopperCorp’s strategy targeting district-scale discoveries. We’re very excited about our upcoming exploration programmes focused on copper and also targeting other base and precious metals.” 

Sabina Gold & Silver receives $520m funding for Canada’s Goose Mine 

Sabina Gold & Silver has secured a $520m financing package for the construction and development of the Goose mine in Nunavut, Canada. 

The financing package includes a senior secured debt facility of $225m, $125m worth of gold stream arrangement, a $75m gold prepay facility and a $95m private placement of Sabina shares.

Sabina said it has completed the related final documentation with Orion Mine Finance and Wheaton Precious Metals. 

Orion Mine Finance agreed to provide Sabina with a senior secured debt facility in four equal tranches, and a $75m gold prepay facility in two equal tranches. Furthermore, Orion Mine Finance will subscribe for 72.7 million shares of Sabina Gold & Silver for a total price of $75m. 

Wheaton Precious Metals agreed to pay $125m upfront to Sabina Gold & Silver during the Goose mine construction phase, in four equal instalments.

In exchange, Wheaton will receive 4.15% of the payable gold production from the mine, and will also subscribe for 19.4 million shares of Sabina Gold & Silver for $20m. 

Upon receiving 130,000oz of gold, Wheaton will get 2.15% of the payable gold production from the mine. The firm will receive 1.5% of the production after receiving 200,000oz of gold. 

Sabina Gold & Silver president and CEO Bruce McLeod said: “We are proud to welcome Orion and Wheaton as significant Sabina equity holders. 

“Their participation in financing the Goose Mine validates the sound exploration, engineering, environmental and community work we have done on the project and supports our approach to the development of this prolific gold district.” 

Antofagasta to earn stake in Pacific Ridge’s Canada copper-gold project 

Antofagasta Minerals has signed an agreement with Canada’s Pacific Ridge Exploration to option the latter’s RDP copper-gold project in Canada. 

Through the deal, parent company Antofagasta has an option to acquire 75% in the RDP Project by paying $1.35m in cash and an $800,000 success payment if the option is exercised.

The firm will also spend $10m on exploration over an eight-year period and deliver a NI 43-101 compliant preliminary economic assessment report on the project. 

Operating four copper mines in Chile, Antofagasta will fund all exploration during the option period while Pacific Ridge will serve as the initial operator. Upon earning the 75% stake, Antofagasta will form a 75:25 joint venture with Pacific Ridge. 

Located 40km west of the Pacific Ridge’s Kliyul project, the RDP property is located within the Stikine Terrane, which comprises several significant porphyry deposits, including Kemess, Red Chris, Kerr- Sulphurets and Galore Creek.

Covering more than 10,000ha, the project includes several recognised porphyry copper-gold targets intermittently explored since the early 1970s. 

Pacific Ridge president and CEO Blaine Monaghan said: “We are extremely pleased to be partnering with Antofagasta, a recognised global leader in porphyry exploration and development, to advance RDP. 

“With an expanded drill programme at Kliyul and Antofagasta funding a drill program at RDP, 2022 will be an exceptionally busy year for the company.”