Turquoise Hill Resources Ltd. (TSX: TRQ) (NYSE: TRQ) ("Turquoise Hill" or the "Company") will announce its second quarter financial results on Thursday, August 4, 2022 after markets close in North America.
The Company will host a conference call and webcast to discuss second quarter financial results on Friday, August 5, 2022 at 8:00 am EST / 5:00 am PDT. The conference call can be accessed through the following dial-in details with the access code 412723:
North America: 1 833 927 1758 United Kingdom: 44 808 189 6484 Australia: 61 279 083 093
The conference call will also be simultaneously webcast on Turquoise Hill's website at www.turquoisehill.com . An archived playback of the call will be available on the Company's website.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220725005782/en/
Vice President Investors Relations and Communications Roy McDowall roy.mcdowall@turquoisehill.com
Follow us on Twitter @TurquoiseHillRe
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Agnico Eagle Mines Limited (TSX and NYSE: AEM) ("Agnico Eagle") and Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") announced today that Agnico Eagle has agreed to subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. ("MSN"), a wholly-owned Teck subsidiary which owns the San Nicolás copper-zinc development project located in Zacatecas, Mexico (the "Transaction"). As a result of the Transaction, Teck and Agnico Eagle will become 5050 joint venture partners at San Nicolás.
"San Nicolás is a high-quality project, located in a leading mining jurisdiction, with high grades, extremely competitive capital intensity, and first quartile costs," said Don Lindsay, President and CEO of Teck. "The opportunity to add the operating and development experience of Agnico Eagle should generate substantial benefits for the project including for all stakeholders throughout the project life cycle."
"This is a unique opportunity to create a long-term partnership between two high quality mining companies working together to de-risk and optimize a world class VMS deposit in a premier mining jurisdiction," added Ammar Al-Joundi, President and CEO of Agnico Eagle. "Agnico Eagle's project development, permitting and construction experience in Mexico, combined with Teck's base metals expertise, operating excellence and marketing leadership, are complementary skillsets and will contribute to the timely and successful development and operation of San Nicolás."
San Nicolás Project Highlights
San Nicolás Study Status A detailed plan to complete a feasibility study, permitting, and community engagement has been developed, with initial work underway since January 2022. Further, an environmental and social baseline survey, including in-depth archaeological surveys and clearances, was carried out by Teck from 2018 to 2021. Well-developed community engagement and investment programs have resulted in strong support for development from stakeholders near the project and more broadly in Zacatecas.
The feasibility study is expected to be completed early in 2024 with project sanction thereafter subject to receipt of permits.
About the Transaction Agnico Eagle will subscribe for US$580 million in MSN shares, through a wholly-owned Mexican subsidiary of Agnico Eagle, giving Agnico Eagle a 50% interest in MSN. The subscription proceeds received from Agnico Eagle will be used by MSN to fund the first US$580 million of post-closing costs with subsequent funding to be contributed according to each partner's ownership percentage. Agnico Eagle's contributions will be made as study and development costs are incurred – there is no up-front payment from Agnico Eagle. The US$580 million share subscription implies a notional US$290 million acquisition cost to Agnico Eagle for 50% of the San Nicolás project plus the contribution by Agnico Eagle of 50% of the first US$580 million of project costs for its own account.
Funding requirements beyond this initial subscription amount will be funded by Teck and Agnico Eagle in proportion to their shareholdings in MSN. The shareholders' agreement will include provisions typical in a transaction of this nature, as well as remedies for material breach that include accelerated dilution and forced sale of a defaulting shareholder's ownership interest. For governance purposes, Agnico Eagle will be deemed a 50% shareholder of MSN from closing, regardless of the number of shares that have been issued to Agnico Eagle.
Closing of the Transaction is subject to customary conditions precedent, including receipt of necessary regulatory approvals, and is expected to occur in the first half of 2023.
Additional Information on the San Nicolás Project For further details on the San Nicolás project, please refer to the Supplemental Information slides in the Investors section of Teck's website ( https://www.teck.com/investors/events-&-presentations/presentations-webcasts/supplemental-information-for-investors ).
About Teck As one of Canada's leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc, and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck's shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources .
About Agnico Eagle Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland, and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States and Colombia. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The Company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
Teck Media Contact Chris Stannell Public Relations Manager 604.699.4368 chris.stannell@teck.com
Teck Investor Contact: Fraser Phillips Senior Vice President, Investor Relations & Strategic Analysis 604.699.4621 fraser.phillips@teck.com
Agnico Eagle Investor Contact: Jean-Marie Clouet Corporate Director, Investor Relations 416.457.9464 jeanmarie.clouet@agnicoeagle.com
Forward Looking Statements This news release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by statements that certain actions, events or results "could", "may", "might", "should", "will" or "would" be taken, occur or achieved. Forward-looking statements in this news release include statements regarding the expectation that the Transaction will close and the timing of closing; the expectation that the San Nicolás project will be developed into production; the expected timing of first production; the estimated mine life; the expectation that there is meaningful mine life extension and regional exploration potential; the expected ownership interests of Teck and Agnico Eagle in the joint venture at any time; the expected production over the first five years of operation; all San Nicolás project economics included in this news release, including head grades, average C1 operating costs, development capital cost estimate, payback period and IRR; the expectations as to results of the feasibility study, including development capital cost estimate, payback period and IRR; the statement that the project has been de-risked; and timing of project sanction decision.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck, Agnico Eagle or the joint venture to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, changes in general economic conditions or commodity prices, unanticipated permitting, development or construction issues including delays in receiving permits or other regulatory approvals, or withdrawal or suspension of permits, unanticipated geotechnical conditions or other factors affecting construction plans and budgets including supplier, transportation, logistics or labour issues, adverse weather or natural disaster, community unrest, access issues, failure of plant and equipment, disruption of financial markets, the accuracy of our mineral estimates (including with respect to size, grade and recoverability) and the geological, operations and price assumptions on which these are based, other circumstances interfering with the closing of the Transaction, including an inability to satisfy the conditions to closing, including receipt of any regulatory approvals and failure by Teck or Agnico Eagle to fund as required by the agreements. Economic projections for the San Nicolás project are presented on a 100% basis and, except as otherwise noted, assume US$3.50/lb copper, US$1.15/lb zinc, US$1,550/oz gold, and US$20/oz silver.
Teck and Agnico Eagle caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or implied by these forward-looking statements. Certain of these risks are described in more detail in the Annual Information Form of Teck and/or Agnico Eagle and in their respective subsequent quarterly report filings with Canadian securities administrators and the US Securities and Exchange Commission. Neither Teck nor Agnico Eagle assumes the obligation to revise or update these forward-looking statements after the date of this news release or to revise them to reflect the occurrence of future unanticipated events, except as maybe required under applicable securities laws.
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Further to its ASX announcement of 4 April 2022, Comet Resources Limited (Comet or Company) (ASX: CRL)(Comet or Company) (ASX: CRL) is pleased to announce that it has executed an amended binding agreement to acquire a 100% interest in the Mt Margaret Copper Project and associated regional tenements near Cloncurry, Queensland (Project or Mt Margaret) from Mount Isa Mines Limited, a wholly-owned subsidiary of Glencore Plc (Acquisition).
Managing Director, Matthew O’Kane commented, “The acquisition of Mt Margaret remains a truly transformational opportunity for Comet. It’s a substantial past-producing copper mine that we’re able to acquire due to portfolio rationalisation of a global tier one miner. It contains existing Mineral Resources of 13.0Mt, with over 95% of this resource in the Measured and Indicated categories. The majority of Mt Margaret’s Resource sits in two already pre-stripped open pits providing Comet with a reduced capex pathway to production. The transaction now comprises both debt and equity, significantly improving the transaction structure for our shareholders by substantially reducing up front dilution due to the reduction in the amount of equity required to be raised initially.”
Comet has entered into an amended and restated share sale agreement (MTM Acquisition Agreement) with Minerals Mining and Metallurgy Limited (ACN 645 972 309) (MMM), Mount Isa Mines Limited (ACN 009 661 447) (MIM) and Mount Margaret Mining Pty Ltd (ACN 150 366 224) (MTM) pursuant to which MIM has agreed to sell, and MMM has agreed to buy, 100% of the issued capital in MTM (MTM Shares). MTM is the owner of the Project. Neither MMM, MIM or MTM are related parties of the Company.
The consideration for the acquisition of the MTM Shares is:
(i) a non-refundable payment by MMM of $5,000,000 to MIM (paid on 18 February 2022); (ii) on completion, the issue by Comet (such issue to be procured by MMM) of 25,000,000 fully paid ordinary shares in the capital of Comet (Shares) to MIM (or its nominee) (at an aggregate deemed issue price for those Shares of $0.20 per Share, equal to an amount of $5,000,000; (iii) on completion, the issue by Comet (such issue to be procured by MMM) of 10,000,000 options exercisable at $0.30 per option on or before the date which is 5 years from issue; and (iv) a 2% net smelter return royalty from the sale of any copper, gold or silver extracted, produced and sold from the Mount Margaret Project for the life of the mine.
At completion of the Acquisition, MIM has agreed to make a loan available to MMM in the amount of A$27,000,000 (the Loan) for the sole purpose of MMM using these funds to replace the Environmental Bond at completion. The difference between the current Environmental Bond liability of A$32,341,120 and the Loan amount will be funded by Comet from the proceeds of its capital raising. The addition of the Loan improves the transaction structure by reducing the size of the equity raise required to complete the Acquisition, thereby reducing up-front dilution to shareholders, and allows the Company time to advance and de-risk the project before further equity is raised. Options for re-payment of the Loan at maturity include future equity raises, repayment via alternative debt financing or cash flows from operations should the Company return the Project to production, or a combination thereof. A decision will be made on the method of repayment of the Loan in the future.
The Loan will have the following material terms:
(i) Term: the Loan must be repaid on the date that is 36 months from the date the Loan is advanced to MMM (or earlier at MMM’s election); (ii) Interest: interest on the Loan will accrue at a rate of the bank bill swap rate (BBSW) BBSW + 900 basis points per annum, payable quarterly in arrears; (iii) Security: the Loan (and interest) will be secured by a first-ranking general security deed over the assets of MMM and Comet; (iv) Bond Increases: during the term of the Loan, MMM will meet any increases in the Environmental Bond imposed by the Queensland Government; and (v) Oversight by MIM: During the term of the Loan, MMM will provide MIM with access to such information, as it may reasonably require, in order to monitor MTM’s exploration activities on the Mount Margaret Project.
In addition to the Environmental Bond, the Project is also the subject of a Deed of Arrangement for Offset Transfer between the State of Queensland and MTM (Offset Deed) which relates to requirements under the “Queensland Biodiversity Offset Policy”. Pursuant to the Offset Deed, MTM has provided financial security to the State of Queensland in the form of an unconditional bank guarantee for the amount of $1,983,000 (Offset Surety). The Offset Surety will also need to be replaced as part of the Acquisition and $2,000,000 raised under the Capital Raising will be allocated towards this.
Click here for the full ASX Release
This article includes content from Comet Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Click here to read the previous best TSX copper stocks article.
After a strong 2021, copper has seen even greater success in 2022, reaching an all-time high of US$10,910 per metric ton (MT) on March 4. However, prices have fallen in Q3, dropping to US$8,225 as of September 13.
This decline began in Q2, and experts have weighed in on what happened and where copper will go from here. In the short term, some market watchers believe prices will fall further, but long-term factors look positive.
"Most, if not all, the reports I've seen have been talking about a large (copper) deficit looming in the not-too-distant future. If you combine a deficit with the lengthening of the timelines to bring on production, there's some very optimistic price forecasts for copper," Rob McEwen, chairman and chief owner of McEwen Mining (TSX:MUX,NYSE:MUX), told the Investing News Network.
The list below shows the top-performing TSX-listed copper stocks by share price performance so far this year. It was generated on September 13, 2022, using TradingView’s stock screener, and only TSX copper companies with market capitalizations greater than C$50 million at that time are included.
Year-to-date gain: 95.82 percent; market capitalization: C$8.13 billion; current share price: C$40.79
Turquoise Hill Resources operates the Oyu Tolgoi copper-gold mine in Mongolia, which it claims has the potential to operate for 100 years from five deposits. Oyu Tolgoi is jointly owned by Turquoise Hill (66 percent) and Mongolian government-owned entity Erdenes Oyu Tolgoi (34 percent). Turquoise Hill itself is 50.8 percent owned by Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), which is the operator of Oyu Tolgoi. The mine has been in production since 2013.
The company performed positively through mid-March, when Rio Tinto proposed a plan to buy the remaining 49.2 percent of Turquoise Hill that it does not already own for C$34 per share. The news drove Turquoise Hill's share price even higher, rising from C$25.68 on the previous trading day to C$34.02 on the day of the announcement. Shares continued to climb from there, hitting a year-to-date high of C$38.58 on April 13.
Turquoise Hill created a special committee to review the proposal in April, and after it found that the offer “did not reflect the full and fair value of the company,” Rio Tinto raised the offer to C$43 per share. On September 5, Turquoise Hill signed a definitive agreement with Rio Tinto at that price point, and the next step is a shareholder vote. This news resulted in the company’s share price hitting a four year high of C$41.99 on September 8.
On August 22, Turquoise Hill provided an update on its operations, including progress on updating the integrated mine plan at Oyu Tolgoi. The mine plan will include “minor refinements” at the Hugo North underground and the Oyut open-pit mines. The mine plan should be available in Q4 of this year.
Year-to-date gain: 31.02 percent; market capitalization: C$2.13 billion; current share price: C$16.77
Filo Mining is focused on advancing its Filo del Sol copper-gold-silver project in Chile along the Chile-Argentina border. Drilling at the site slowed for the 2022 winter season due to weather conditions, but the company is looking to explore the project’s Aurora zone, Breccia 41 zone and the recently discovered Bonita zone as the South America spring season commences.
Filo’s share price began to see significant growth in mid-March after it closed a C$100 million strategic investment from BHP Western Mining Resources, which is a subsidiary of BHP (ASX:BHP,NYSE:BHP,LSE:BHP). The company’s share price rose to reach a peak of C$24.44 on April 18 before falling through mid-May to C$16.62. However, the day after that low, Filo's share price rocketed back up on positive drill results that extended the Breccia 41 zone at Filo del Sol.
Further positive exploration news continued to drive the company's share price, culminating in a year-to-date high of C$26.58 on June 2. On June 3, Filo shared that it has been included in the S&P/TSX Composite Index. The company released its Q2 results in August, discussing the progress made at Filo del Sol over the quarter, including very high-grade drill results and the discovery of a copper-gold porphyry center, dubbed the Bonita zone, at the project.
“Exploration results from Filo del Sol continue to stand out on a global scale and showcase the project as one of the most significant copper-gold-silver discoveries of its generation,” President and CEO Jamie Beck said in a release.
August drill results at the Aurora zone extended the strike length by 180 meters, and it can still be further expanded. One highlight showed 701.2 meters at 1.13 percent copper equivalent. The company’s most recent news is the appointment of Ian Gibbs as chief financial officer and Arndt Brettschneider as vice president of operations and projects on September 1. While the company’s share price has fallen from its highs seen in June, it is still up year-to-date.
Year-to-date gain: 23.46 percent; market capitalization: C$204.68 million; current share price: C$1.00
Entrée Resources is another company that has its hands in the Oyu Tolgoi pot. The company has a 20 to 30 percent interest in mineralization extracted at the Entrée/Oyu Tolgoi joint venture property, with the amount determined by the depth of mineralization. In addition to its interest in the Oyu Tolgoi project, Entrée has a 56.53 percent interest in the Blue Rose joint venture with Giralia Resources, and a 0.5 percent net smelter return royalty with Candente Copper (TSX:DNT) on the Cañariaco project.
Entrée’s share price saw a steep spike in late January when it shared news that multiple outstanding issues between the Mongolian government and the companies involved in Oyu Tolgoi — Turquoise Hill in particular — had been resolved. Its share price saw another large jump in March, and it remained elevated through mid-April, during which time Entrée shared its 2021 results and corporate highlights, as well as the appointment of a new member to its board of directors.
On May 26, Entrée “commenced binding arbitration proceedings to seek declarations and orders for specific performance relating to certain provisions of the Equity Participation and Earn-in Agreement with Turquoise Hill Resources.” The company’s board has concluded that these agreements must be enforced as soon as possible. The company further discussed its goals with these proceedings in its Q2 results, as well as developments at Oyu Tolgoi.
While the metal is currently trending down in terms of its price, experts see that as a symptom of COVID-19 lockdowns in China, as well as other short-term headwinds. So when will the copper price go back up? Economists are divided, but many believe it will be back up within the next couple of years.
With the volatility and unpredictability of markets and economies at the moment, nothing is guaranteed, but it can be worth getting into a market when prices are depressed if it matches an investors’ portfolio goals.
Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.
There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per MT.
Since the start of 2022, copper has seen historically high prices. In Q1 and most of Q2, copper prices on the COMEX ranged between US$4.10 and US$4.89 — an all-time high. For the same time period on the LME, copper moved between US$9,000 and US$10,730. Q3 has brought lower prices for the metal, which has seen year-to-date lows of US$3.21 and US$6,998, respectively.
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2021, putting out 5.6 million MT of the metal. Rounding out the top five are Peru with 2,200 MT, China and the Democratic Republic of Congo with 1,800 MT each and the US with 1,200 MT.
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Lastly, the copper is refined at a refining plant or smelter using one of two methods, pyrometallurgy and hydrometallurgy. Pyrometallurgy is employed for copper ore that is sulfide rich, while hydrometallurgy is used when the ore is oxide rich. The Investing News Network's guide on copper refining goes into further detail about how those processes work. Once these processes are complete, the copper is concentrated to up to 99.99 percent purity.
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Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
Updated engagement letters signed with Société Générale and Nedbank for expanded $150 million Platreef senior debt facility
Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President Marna Cloete announce today that the company's South African subsidiary, Ivanplats, has received the second and final prepayment of the $300 million Platreef streaming agreement. In addition, the company has signed updated engagement letters with its mandated lead arrangers, Société Générale and Nedbank, to increase the Platreef project senior debt facility from $120 million to $150 million. The expanded facility will provide further optionality in terms of project financing, and limit potential equity contributions for Platreef's Phase 1 development. All figures are in U.S. dollars unless otherwise stated.
As announced on December 8, 2021, Ivanplats concluded $300 million in stream-financing agreements with Orion Mine Finance and Nomad Royalty Company (which was subsequently acquired by Sandstorm Gold Royalties) for its world-scale Platreef palladium-rhodium-nickel-platinum-copper-gold project in Limpopo Province, South Africa. This included a $200 million gold-streaming facility and a $100 million palladium and platinum streaming facility. The first prepayment of $75 million was received upon the closing of the transaction in December 2021.
The fully realized stream agreements allow Ivanplats to advance Platreef's ongoing Phase 1 construction activities, with an initial capital cost of $488 million as set out in the Platreef feasibility study announced in February 2022. Discussions are underway to finalize a senior debt facility of up to $150 million with mandated lead arrangers Société Générale and Nedbank, which remains subject to due diligence.
The stream facilities are subordinated to any future senior secured financing. Ivanplats remains flexible to raise additional debt or equity, and has pre-agreed intercreditor arrangements with the stream purchasers for future senior debt. The stream facilities are guaranteed by Ivanplats and secured over its assets, as well as Ivanhoe and the Japanese consortium's shares of Platreef.
Ivanhoe Mines' Executive Co-Chairman, Robert Friedland commented:
"The enhanced senior debt facility speaks to the robust economics of the Platreef project, and will allow Ivanplats to fund the Phase 1 initial capital with limited further equity funding required from Ivanhoe's own balance sheet.
"Platreef is the world's greatest precious metals deposit under development, with a peerless endowment of palladium, rhodium, platinum, and gold; as well as highly significant quantities of strategic 'electric' metals in nickel and copper. The Phase 1 mine marks the beginning of a multi-stage, multi-generational mining complex underpinned by vast, high-grade resources and immense, untapped exploration upside. Future expansions to 12 million tonnes of ore per annum and beyond, as demonstrated in previous studies, would position Platreef among the world's largest and lowest-cost nickel and PGM mines: producing more than 24,000 tonnes of nickel and 1.1 million ounces of palladium, rhodium, platinum and gold per year."
The Platreef Project is owned by Ivanplats (Pty) Ltd (Ivanplats), which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats' historically-disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with approximately 150,000 people, project employees and local entrepreneurs. A Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation, and Japan Gas Corporation, owns a 10% interest in Ivanplats, which it acquired in two tranches for a total investment of $290 million.
The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper and gold mineralization on the Northern Limb of the Bushveld Igneous Complex in Limpopo Province - approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane.
On the Northern Limb, platinum-group metals mineralization is primarily hosted within the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike. Ivanhoe's Platreef Project, within the Platreef's southern sector, is comprised of two contiguous properties: Turfspruit and Macalacaskop. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum's Mogalakwena group of mining operations and properties.
Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly-mechanized, underground mining methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties that form part of the company's mining right.
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the major new, mechanized, underground mines at the Kamoa-Kakula Mining Complex in the Democratic Republic of Congo, the development of the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa; and the restart of the historic Kipushi zinc-copper-germanium-silver mine, also in the Democratic Republic of Congo.
Kamoa-Kakula Mining Complex is one of the highest-grade and fastest growing major copper mining operations in the world. Copper concentrates were first produced in May 2021 and, through on-going phased expansions, it is positioned to become one of the world's largest copper producing operations. Kamoa-Kakula's 2022 production guidance is between 310,000 to 340,000 tonnes of copper in concentrate
Ivanhoe Mines is also exploring for new copper discoveries across its circa 2,400km2 of wholly-owned exploration licences in the Western Foreland, which are located adjacent to the Kamoa-Kakula Mining Complex in the Democratic Republic of Congo.
Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the company, the Platreef Project, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance and results, and speak only as of the date of this news release.
The forward-looking statements and forward-looking information in this news release include without limitation, (i) statements regarding finalizing a senior debt facility of up to $150 million with mandated lead arrangers Societe Generale and Nedbank; (ii) statements regarding scheduling and advancement of Phase 1 construction activities; (iii) statements regarding Ivanplats raising additional debt or equity; (iv) statements regarding future expansions at Platreef to 12 million tonnes of ore per annum and beyond; (v) statements regarding expansions positioning Platreef among the world's largest and lowest-cost nickel and PGM mines; (vi) statements regarding Platreef producing more than 24,000 tonnes of nickel and 1.1 million ounces of palladium, rhodium, platinum and gold per year; (vii) statements regarding Kamoa-Kakula, through on-going phased expansions, being positioned to become one of the world's largest copper producing operations.
In addition, all of the results of the Platreef 2022 Feasibility Study constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price assumptions, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Platreef 2022 Feasibility Study. Readers are cautioned that actual results may vary from those presented.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under "Risk Factors", and elsewhere in this release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.
The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth below in the "Risk Factors" section in the company's 2022 Q2 MD&A and its current annual information form.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/137230
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Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") will release its third quarter 2022 earnings results before market open on Thursday, October 27, 2022.
A webcast to review the results will be held as follows:
An archive of the webcast will be available at teck.com within 24 hours.
About Teck As one of Canada's leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck's shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @ TeckResources .
Investor Contact: Ellen Lai Coordinator, Investor Relations 604.699.4257 ellen.lai@teck.com
Media Contact: Chris Stannell Public Relations Manager 604.699.4368 chris.stannell@teck.com
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Copper is one of the most important materials in our everyday life, and copper scrap material represents a strategic source of the crucial base metal.
Copper is widely used in building construction, electrical grids, electronic products, transportation equipment and home appliances. Rising demand for renewable energy, electric vehicles and high-tech products bodes well for copper, as it has the highest conductivity of any metal apart from silver, making it ideal for the green economy.
Recycled copper scrap contributes significantly to supply, and plays a behind-the-scenes role in balancing the market. "Copper's recycling value is so great that premium-grade scrap normally has at least 95 (percent) of the value of the primary metal from newly mined ore," states a report from the Copper Development Association.
What's more, scrap has been referred to as "the world's largest copper mine," and perhaps the most responsive as well, given producers' ability to source more or less depending on prices. Read on to learn about this material and its impact on the global copper market.
As with many metals, copper is 100 percent recyclable and for the most part retains its wide variety of beneficial properties when it is reused. Copper scrap material — also known as secondary copper — can be divided into two main categories: new scrap and old scrap.
New scrap is copper metal discarded in fabrication and manufacturing processes, and is typically considered higher-grade material than old scrap. Old scrap refers to copper wire, copper tubing, roofing copper or copper pipe from post-consumer products that can be converted to refined metal and alloys.
During the recycling process, these secondary copper materials are smelted in furnaces and then further processed and refined. Electrical applications require high-grade copper, and while newly mined copper is often preferred for this purpose, premium-quality new scrap material can be used as well. Recycled copper for use in non-electrical applications, such as plumbing tubes or roofing sheets, is often old scrap.
Scrap metal recycling aids the environment in many ways, such as by reducing energy use, greenhouse gas emissions and landfill waste. Indeed, the International Copper Study Group notes that one computer contains around 1.5 kilograms (3.3 pounds) of copper; a typical home can contain as much as 100 kilograms (220 pounds).
According to the group, recycling copper requires 85 percent less energy than primary copper production at the mine level. On a global level, copper recycling reduces electrical energy use by 100 million megawatt hours and keeps 40 million tonnes of carbon dioxide out of the atmosphere on an annual basis.
Copper scrap meets about 30 percent of total global copper demand, as per the International Copper Association. Percentages vary — in the US, copper scrap contributes about 32 percent of the nation's copper supply, while in Europe recycled copper accounts for about 50 percent of all copper use.
China, which makes up around half of global demand for copper, is also the world's largest refiner of copper from scrap material. Secondary copper production in China has averaged more than 1.5 million tonnes per year for the last decade, equal to about 30 percent of the nation's total copper consumption.
Much of that secondary copper comes from imports, largely from the US. In 2020, China reportedly imported 944,000 tonnes of high-purity copper scrap material.
This figure represents a steep drop from the 1.5 million tonnes imported in 2019 and the 2.4 million tonnes imported in 2018. The dramatic slide in copper imports is reflective of China's recently instituted restrictions on scrap metal imports, including copper, as part of its fight against environmental pollution.
The restrictions were introduced as a prelude to a planned outright ban on imports of what China calls "foreign garbage" that was intended to go into effect in 2020. But the COVID-19 pandemic and a lack of clarity from the country's government created confusion about the path forward.
Explaining the situation at the time, Bloomberg stated that China's restrictions on copper scrap imports "forced the country's highly lucrative processing industry to move overseas." Unfortunately, that happened alongside renewed demand for copper in China and the COVID-19 outbreak, which disrupted both primary and secondary copper supply lines at a global level.
As Research and Markets reported, the pandemic created a shortage of copper scrap metal.The COVID-19-induced supply gap, along with intense pressure from the nation's copper scrap recyclers, led China to exempt high-grade copper scrap imports from the waste ban, reclassifying them as "resources." The Chinese government also suspended its 25 percent tax on US copper scrap imports. The policy change with a focus on higher-grade recyclable materials boosted imports by 80 percent to 1.7 million tonnes in 2021.
Indonesia and Malaysia have also "emerged as major recycling hubs, reexporting a cleaner material to China," as per S&P Global Market Intelligence. "The two countries have recently been working toward new guidelines for metals scrap imports on concern over the processing of materials bearing copper and other elements."
Copper is a key material in many industries, and undersupply issues in the global copper market are nothing new — in fact, calls for peak copper have been made for more than a decade.
Where there's demand and a lack of supply, there's a need for scrap copper. This material will continue to play an important role in the overall copper market, especially in times when primary copper mines experience disruption or when they are simply not producing enough of the metal to feed demand.
This is an updated version of an article first published by the Investing News Network in 2011.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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