from November 1, 2024
12 Min
picture alliance / ASSOCIATED PR / Rohan Sullivan
Ivanhoe Mines is once again reporting records at Kamoa-Kakula in the DR Congo: a record quarterly production of 116,313 tonnes of copper concentrate was achieved there in the third quarter of 2024. Hochschild Mining is to acquire Cerrado Gold’s Monte Do Carmo project via an option for a total of USD 60 million. Asante Gold is working on a USD 525 million financing package to realize growth plans at the Bibiani and Chirano gold mines and the Kubi gold project in Ghana. Bunker Hill is close to a $150 million loan from EXIM Bank, which could also be used to finance the Bunker 2.0 expansion project with a capacity of 2,500 tons per day. Electrum Discovery is making progress in exploration: high-grade rock samples and an expansion of Bambino at Timok East appear to once again confirm the potential of the project. CanCambria Energy is exploring a gas project in Hungary – and has been listed on the TSX Ventures since this week. And FireFly Metals reports an update on the MRE for Green Bay: the resource grows by 42% to 59 million t at 2% CuEq. The raw materials week at a glance.
Ivanhoe Mines increases profits and reports record production at Kamoa-Kakula
Ivanhoe Mines (ISIN: CA46579R1047, WKN: A1W4VG) filed on Wednesday Figures for the third quarter. The company reported quarterly profit of $108.2 million. This represents a slight increase compared to the same period last year ($107.5 million). In the first nine months of the year, profit fell to USD 105.3 million (previous year: USD 277.2 million).
The operational highlight was once again Kamoa-Kakula in the DR Congo. There, a record quarterly production of 116,313 tonnes of copper concentrate was achieved in the third quarter of 2024, compared to 86,203 tonnes in the first quarter and 100,812 tonnes in the second quarter of 2024. In the first nine months of 2024, Kamoa-Kakula produced a total of 303,328 tonnes of copper concentrate.
Work on the on-site copper smelter (annual production capacity: 500,000 tons) is proceeding according to plan. The construction is expected to be completed by the end of 2024, and the heating phase is scheduled to begin in the first quarter of 2025.
“The smelter will reduce cash costs and improve profitability. With capital expenditures at Kamoa-Kakula largely behind us, we look forward to a period of strong earnings and free cash flow,” said founder and co-chairman Robert Friedland. Friedland expects 2025 to be a “record year” and emphasized that Ivanhoe Mines is also advancing exploration efforts in the Western Forelands.
Hochschild Mining exercises option on Monte Do Carmo
Hochschild Mining (ISIN: GB00B1FW5029, WKN: A0LC38) informed on Wednesday about the Exercising an option to acquire a 100% interest in the Monte Do Carmo Project von Cerrado Gold (ISIN: CA1567881018, WKN: A2QQRF) in the Brazilian state of Tocantins.
The Hochschild subsidiary Amarillo Mineração do Brasil is paying USD 30 million for the purchase. These are in addition to payments already made and milestone payments of USD 15 million each. The total of USD 60 million is to be financed from existing funds; an increase in new debt is not planned until the end of the year.
Monte Do Carmo includes multiple identified gold targets along a 30km mineralized trend, including the main Serra Alta gold deposit, which hosts a Measured and Indicated resource of 1,012,000 ounces of gold and an Inferred resource of 66,000 ounces of gold and was the subject of an October 31 feasibility study 2023 was.
Hochschild CEO Eduardo Landin commented: “We have undertaken an extensive exploration and twin drilling program that has delivered encouraging results that give us confidence in our ability to define a compelling project.”
Asante Gold plans $525 million financing package for Bibiani and Chirano
Asante Gold (ISIN: CA04341X1078, WKN: A1JUY6) announced on Wednesday Plans for a $525 million financing packagewhich is intended to realize the growth plans in the Bibiani and Chirano gold mines as well as the Kubi gold project in Ghana. With the funding, Asante Gold plans to increase annual production from the current 100,000 ounces to 500,000 ounces in 2028.
The first round of financing consists of a $100 million private placement, a refinancing agreement with Kinross Gold, the issuance of senior debt and Ghanaian bonds, and gold stream agreements. Asante Gold announced the private placement on October 25. The closing of the first tranche with a volume of USD 25 million was announced on October 30th.
The second phase includes a $150 million senior credit facility arranged by FirstRand Bank and a $50 million standby equity commitment from an unnamed strategic investor.
“The completion of this comprehensive financing package will represent a breakthrough in Asante’s history. It will transform our balance sheet and support the execution of our growth plan to achieve gold production of over 500,000 ounces per year by 2028,” commented Dave Anthony, CEO of Asante, in a press release.
Bunker Hill before $150M EXIM loan
Bunker Hill Mining (ISIN: US1206132037, WKN: A2PK9X) reported on Monday about a so far non-binding offer from EXIM Bank (Export-Import Bank) for a debt financing package of up to USD 150 million with a term of up to 15 years. The company expects to submit a formal application to EXIM by the end of 2024.
Bunker Hill plans to restart the Bunker Hill Mine in the towns of Kellogg and Wardner in Shoshone County, Idaho. Concurrent with the planned resumption of operations at 1,800 tonnes per day in the first half of next year, the Company plans to drill extensively underground and surface drilling of previously identified exploration targets.
Most recently, a high-grade silver target of 5 to 10 ounces per ton, or approximately 500,000 to 1 million ounces, was defined to be tested in the first quarter of 2025. An updated resources and reserves report is also planned for the first quarter.
The EXIM loan could be used to finance the Bunker 2.0 expansion project with a capacity of 2500 tons per day.
“We are very pleased to announce this first step in a potential partnership with EXIM to rapidly expand Bunker Hill’s contribution to U.S. domestic production of critical zinc and silver,” said President and CEO Sam Ash.
Electrum Discovery: High-grade rock sampling and expansion of Bambino at Timok East
Electrum Discovery (ISIN: CA28616D1087, WKN: A401HN) reported on Wednesday about the Rock chip sampling results of various targets on Serbia’s Timok East copper-gold project.
At the Bambino anomaly, rock chip analysis confirmed copper-gold mineralization over significant extensions to over 1.5 kilometers of strike length.
Rock chip samples returned grades of 14.2 g/t Au and 3.35 g/t Au and copper-gold containing rocks included chip samples of 4.93 g/t Au and 0.57% Cu and 2.62 g/t Au and 1.21% Cu.
3 kilometers north of the Bambino target area, rock chip analysis confirmed high-grade copper-gold mineralization with previously unidentified silver potential along the same geological structure.
Completion of the 300 meter long excavation program in the center of Bambino revealed a consistent alternation of quartz-limonite stockpiles along the mountain range. The analysis results are expected next week.
Dr. Elena Clarici, CEO and President of Electrum, commented: “Our new results are very encouraging and continue to support the thesis that there is significant mineralization outside of the traditional Timok Magmatic Complex. Our neighbor Dundee Precious Metals has multiple copper-gold and gold mineralization styles in Sedimentary rocks have been identified on the western edge and outside the traditional Timok Magmatic Complex, and we also see copper-gold and gold mineralization to the east. Exploration has focused on the Timok’s main porphyry trend, and the new potential for deposit-scale mineralization in sedimentary rocks adjacent to this trend is now widely recognized.”
CanCambria Energy listed on TSX Ventures
The shares of the energy exploration company CanCambria Energy (ISIN: CA13740E1079, WKN: A3EKUB) have been listed on the TSX Ventures since October 29th. The listing took place by way of a direct listing. The securities are traded under the symbol CCEC. An additional listing on German stock exchanges is planned soon.
CanCambria Energy focuses on acquiring and developing low-risk projects. The only project currently underway is the Kiskunhalas Tight Gas Sand Project in southern Hungary, for which a resource estimate is already available. A 3,500m deep high-pressure and high-temperature vertical borehole is planned there for 2025.
“This critical step allows us to further advance energy exploration and innovation in the region,” the company said.
FireFly Metals with Green Bay resource update: 42% more copper
FireFly Metals (ISIN: AU0000313769, WKN: A3DMXU) reported on Tuesday about the Mineral Resource Estimate (MRE) Update for the Green Bay copper-gold project in Newfoundland, Canada.
The resource will therefore grow by 42% to 59 million t at 2% CuEq, which the company says reflects the results of the 2023-2024 underground drilling campaign.
The updated resource sees a significant increase in tonnes and contained copper metal while maintaining high quality at 2% CuEq. 41% are now in the Measured and Indicated category.
The total metal contained now amounts to 1.2 million t CuEq, consisting of 1 million t copper (+39%), 550,000 ounces gold (+48%) and 5.4 million ounces silver (+57%) .
The resource in the high-grade VMS zone increases to 6 Mt at 4.3% CuEq and remains open. The current drilling program is also underway there: drilling is targeting the high-grade copper-gold VMS zones, which are “expected to underpin the next round of resource growth,” according to the explorer.
FireFly CEO Steve Parsons commented, “Achieving such immense growth in such a short period of time and at such a low cost underscores Green Bay’s world-class quality.”
