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South32 is not concerned about Indonesian alumina replicating the nickel success.
South32, a diversified Australian miner, is closely monitoring the alumina developments occurring in Indonesia. The CEO Graham Kerr stated on Thursday that South32 will be watching to see if they drag down the prices of tin in the global markets in the same manner as its nickel industry. In recent years, Indonesia has increased its production of nickel to make it the world's largest supplier. This is a result of Indonesian efforts to increase domestic processing. Since then, the Indonesian government has sought to replicate this success on other markets. Last year, Indonesia became a net exporter for alumina. Alumina is a semiprocessed material made from mineral bauxite and eventually turned into aluminium. Kerr said at an analyst briefing that "the challenge we face is whether or not they can achieve in alumina the same results they achieved in nickel." He said: "We believe there will be a capital compression, but you won't be able to build the same large industrial parks." The alumina industry also produces a waste called "red mud" which must be managed carefully. He added: "So, I think that there are some complications which will limit the scale in Indonesia too." South32 announced a 75% increase in its full-year profits on Thursday. This was largely due to the strong performance of its alumina division, and higher commodity prices. (Reporting and editing by Kim Coghill, Sonali Paul and Melanie Burton)
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Oil prices drop as the market considers US summer driving, India's supply and the end of summer driving.
Oil prices dropped on Thursday, as investors assessed the outlook for U.S. gasoline demand as the summer driving season draws to a close. They also considered possible shifts in crude supply as India is facing punishing U.S. duties for importing Russian fuel. Brent crude futures fell 31 cents or 0.46% to $67.74, at 0027 GMT. West Texas Intermediate crude futures also dropped 36 cents or 0.56% to $63.79 after rising more than 1% the previous session. U.S. Energy Information Administration announced on Wednesday that U.S. oil inventories dropped by 2.4 millions barrels during the week ending August 22. This was in contrast to analysts' expectations, which were based on a poll of analysts who expected a draw of 1.9 million barrels. ? The drop in prices was a sign of strong demand for the upcoming Labor Day weekend long weekend in the United States. Tony Sycamore, IG's market analyst, said that this is usually the unofficial end to the summer driving season, and the beginning of lower U.S. consumer demand. He said that on technical charts, crude oil faces resistance between $64 and $65, while it's vulnerable to a test near $60. After President Donald Trump doubled the tariffs on Indian imports up to 50% on Wednesday, traders are closely watching how New Delhi reacts to Washington's pressure to stop buying Russian crude oil. Sycamore said that India is expected to purchase crude oil from Russia in the near future, which will limit the impact of new tariffs on the global supply. Russia and Ukraine intensified their attacks on each others' energy infrastructure this week. This is what has been driving up oil prices. Overnight, Russia carried out a massive drone strike on the energy and gas transportation infrastructure in six Ukrainian regions, leaving over 100,000 people without electricity, Ukrainian officials reported on Wednesday. Oil prices have also been supported by the prospect of an interest rate reduction in the near future, which could boost the economy and increase oil demand. John Williams, the New York Federal Reserve Bank president, said that rates are likely to fall at some point. However policymakers need to wait for upcoming economic data to decide whether it's appropriate to cut rates at the Fed meeting on September 16-17.
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South32's annual profit increases on the strength of alumina operations and higher prices
South32, an Australian company, reported a 75% increase in its full-year profits on Thursday. This was due to a strong performance by the alumina division, and higher commodity prices. However, this still fell short of expectations. As of 0010 GMT the shares of the company fell as much as 2,1%, to A$2.85, while the benchmark index remained largely unchanged. A 45% increase in alumina prices boosted the alumina division's earnings from $714 million up to $1.08 Billion. Aluminium division has also benefited from the higher metal prices due to shortages and increasing costs. South32 reported its earnings underlying for the year ending June 30 were $666 million. This is up from $380 million one year earlier. It missed Visible Alpha's consensus estimate of 697.7 millions due to a lower contribution by Australia Manganese operations as a result of the impacts of Tropical Cyclone Megan. As bauxite becomes more readily available, the company anticipates a 4% increase in production for its Worsley Alumina operation for fiscal year 2027. South32 expects to place its Mozal Aluminum smelter under care and Maintenance in March 2026 while also limiting investments in the project. South32 announced earlier this month that it had a $372-million impairment on the smelter. The miner stated it was planning to close the smelter as it might not be able secure power at a reasonable price when the supply agreement expires in 2026. Jefferies analysts said fiscal 2026 will see higher operating costs in most areas. The Perth-based company, which split from BHP Group last year, announced a final dividend per share of 2.6 cents, down from 3.1 cents the previous year. The company also extended the current capital management program by one year, to mid-September of 2026. $144 million is still left to return to shareholders.
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Lynas Rare Earths announces a profit decline and a $487 million capital raise
Lynas Rare Earths, based in Australia, reported a lower-than-expected full-year profit Thursday. The company blamed depreciation expenses from the expansion of its Kalgoorlie, Mt Weld, and Kalgoorlie facilities, as well as a warning that it may not proceed with its Texas heavy-processing plant. Separately the miner announced a A$750m ($487.35m) equity raise to "pursue growth opportunities". Lynas is the largest rare-earths manufacturer outside China. Its net profit for the year ended 30th June was A$8.4 million, a dramatic drop from A$84.5 millions reported a year ago. Visible Alpha's consensus estimate was A$30.4million. The miner stated that it is currently in negotiations with U.S. Department of Defence in order to reach an agreement on offtake for its Seadrift Heavy Rare-Earths Processing Facility in Texas. It added that "while there is no guarantee of offtake agreements being agreed, any agreements for offtake would need to be commercially acceptable to Lynas."
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Gold Reserve files to disqualify Elliott's bid for Citgo parent
Gold Reserve filed a motion on Wednesday to disqualify an opposing bid by an affiliate of Elliott Investment Management, which a Delaware court selected this month as the frontrunner in an online auction for Citgo Petroleum’s parent. The auction of PDV Holding (parent of Venezuelan refiner Citgo) was overseen by a court officer who determined that the winning bid in the competition was a $5.86-billion offer made by Elliott affiliate Amber Energy, despite his recommendation in July of a $7.4-billion bid from a group headed up Gold Reserve subsidiary Dalinar Energy. The officer will now have to submit a fresh recommendation by Friday. This will be reviewed by Judge Leonard Stark in the next month. Gold Reserve stated in its motion to strike that the determination that Amber Energy's bid was superior was "contrary to this court’s orders and discards the bid procedures on which Gold Reserve, other parties, and the attached judgment creditors relied upon, and threatens short-changing the attached judgement creditors by $1.5 Billion relative to Dalinar Energy’s $7.382 Billion bid." Amber offers a settlement to holders of Venezuelan bonds that have defaulted, which would release a claim of $2.86 billion. According to its website, Gold Reserve, a Canadian-listed company is focused on managing and monetizing legal and arbitral claim collections after its mining assets in Venezuela were expropriated. Gold Reserve's attorneys told the court in August that they would invalidate Amber's bid, claiming it did not comply with certain bidding conditions. A motion to strike in a court-organized sale is a request for invalidation or removal of a bid, challenging a particular aspect of the auction process. It does not challenge the entire auction. In January, the complex auction to pay 15 creditors for defaults on debts and expropriations of Venezuela and its oil company PDVSA has been relaunched. The year-long auction process that included Amber's bid last year ended in chaos due to the objections of creditors. (Reporting and editing by Nathan Crooks, Jamie Freed, and Marianna Pararaga)
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S&P 500 closes at record high, dollar gains; Nvidia shares fall after the bell
The S&P 500 closed at a record high on Wednesday, ahead of the quarterly results for artificial intelligence leader Nvidia. Meanwhile, the dollar rose slightly after its previous session's decline despite concerns over the independence of the U.S. Federal Reserve. After Donald Trump said that he would dismiss Lisa Cook, Lisa Cook's lawyer said she would sue him. Investors were concerned by Trump's remarks about the independence and stability of the U.S. Central Bank. The yield curve steepened, as traders assessed the possibility that Trump could make more dovish Fed appointments. The dollar was flat or slightly higher after its drop in the previous session. The dollar index rose 0.02% to 98.227. Meanwhile, the euro reached its lowest level since August 6, and fell 0.09% to $1.1631. Three major U.S. stocks indexes closed higher. Nvidia shares fell about 3% after the closing bell even though the company's forecast for third-quarter revenues was above Wall Street expectations. The strong performance of a number technology-related companies exposed to AI has helped propel major equity indexes into record highs. This is seen as a test for the AI optimism which has driven markets. Nick Frasse is the product manager of Vaneck Associates, a New York-based company. He said: "It is not surprising that Nvidia's numbers have increased, nor has this reaction." He added that the market had begun to take into account how Nvidia could continue to exceed expectations despite headwinds, and questions about what they would have to pay in order to continue selling in China. In exchange for export licenses that are not defined, the company has agreed to pay 15% of its sales in China to the U.S. government. Investors have noted that technology shares, including some AI leaders, are tumbling this month. The Dow Jones Industrial Average gained 147.16, or 0.32 percent, to 45.565.23, while the S&P 500 rose 15.46, or 0.24 percent, to 6,481.40, and the Nasdaq Composite climbed 45.87, or 0.22 percent, to 21,590.14. Investors are closely monitoring the political risks in France. European stocks have recovered slightly from their previous day's drop. French assets were sold off on Tuesday due to concerns about the possible collapse of Prime Minister Francoise Bayrou's French government next month. The MSCI index of global stocks rose 0.32 points or 0.03% to 953.04. The pan-European STOXX 600 Index rose by 0.1%. Market watchers have interpreted Fed chair Jerome Powell's remarks at the annual Jackson Hole Symposium last week as an indication that interest rate cuts may be coming. Fed funds futures are pricing 84% odds that a rate cut will occur in September according to CME Group’s FedWatch Tool. The outlook for U.S. rates is still dependent on the strength of the labor market and inflation trends. The yield on two-year notes was at its lowest point of 3.625%, a drop of around 5 basis points in a single day. The benchmark 10-year yield dropped to 4,236%, its lowest level since August 14. The yield curve between 2-year and 10-year bonds was at its steepest on April 22. It reached 63.5 basis points. Oil prices rose on the back of a drop in U.S. oil inventories that was larger than expected. U.S. Crude Futures rose 90 cents, settling at $64.15 per barrel. Brent futures gained $83 cents and settled at $68.05. Spot gold increased 0.12% to $3.396.34 per ounce.
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Hudbay Minerals, a Canadian company, resumes operations at Snow Lake following the lifting of evacuation orders
Hudbay Minerals, a Canadian mining company, announced on Wednesday that it had resumed its operations in Snow Lake (Manitoba) following the decision by authorities to lift the mandatory evacuate order on August 22, Snow Lake surface infrastructure, according to the company, has not been damaged structurally. Hudbay temporarily suspended Snow Lake operations early in July because of a wildfire that raged in Northern Manitoba. Manitoba declared an emergency in late May, and advised thousands of people to evacuate from the northern and eastern areas of the province as wildfires spread across central and western Canada. Last week, officials from the federal government said that Canada's second worst wildfire season in history has already burnt 7.8 million acres and could continue to do so for several weeks. Since the lifting of the evacuation orders, the company has added that it has completed a safety review of infrastructure including an inspection of the shaft and restarted underground electrical infrastructure. Hudbay is on track to meet its 2025 forecast in Manitoba, despite wildfires. (Reporting from Bengaluru by Pooja menon; editing by Vijay Kishore).
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Iraqi Kurdish PUK Security Force Alleges a plot to kill Party Leader
The Patriotic Union of Kurdistan in Iraq's semiautonomous Kurdistan Region said that on Wednesday they had discovered a plot against PUK leader Pavel Talabani. They shared a video purporting to show six guards claiming they received an order to murder him. A PUK-affiliated Kurdistan security service broadcast the video in which the fighters described their plans to rent a flat in a highrise building close to the PUK leader’s headquarters. The footage showed snipers holding silencers near a window that overlooked the office of the PUK leader. The guards on the video claim that they were given their orders by Lahur Talabani. Lahur Talabani is a prominent Kurdish political figure who is the cousin and leader of the People's Front, the party of opposition to Pavel Talabani. The office of Lahur Talabani was not immediately accessible for comment. A member of People's Front has accused the PUK using security and judicial institutions to suppress political opponents. Lahur Talabani, a fighter loyal to Lahur Talabani, was arrested by PUK forces on Friday after they raided an hotel in Sulaymaniya on Thursday night and fought for four hours. Three PUK commandos, as well as two Lahur Talabani fighters, were reported dead by police and hospital sources. According to security officials, more than 160 Lahur Talabani loyalists have been detained with him. Officials from the Sulaymaniya court confirmed that a warrant had been issued for Lahur Tallahani on charges of destabilizing security in the city and attempted murder. Sources familiar said that the arrest was part a larger struggle to control Sulaymaniya. This is a stronghold for the PUK. Lahur Talabani had been the joint president of PUK before a power battle led to his removal in 2021. The representative of the People's Front, who spoke under condition of anonymity for fear of arrest, said that "deploying tanks and hundreds armored cars to arrest a leader of a political party is completely unrelated to legal methods or democratic methods." This is the most serious conflict between Kurdish groups in Iraq since Saddam Hussein's fall in 2003. Regional officials and analysts are concerned that the violence could threaten the relative peace enjoyed by Iraq's semiautonomous Kurdish Region, which had largely been insulated from other areas of unrest in the country. (Reporting and editing by Rosalba o'Brien, Ahmed Rasheed)
Ukraine launches tender for Lithium Deposit Site in Kirovohrad Region, PM says
Yulia Shvyrydenko, Ukraine's Prime Minister, announced on Wednesday that the country has begun a public tender to acquire the rights to mine a deposit of lithium in Kirovohrad.
The tender for "Dobra" is expected to represent the first project of a joint fund of investment with the United States, which was signed in April in Kyiv as part Kyiv’s efforts to keep Washington in line in its war on invading Russian troops.
The U.S. has a preferential deal with Ukraine on new mineral deals, and can invest in Ukraine's reconstruction. This is a deal that was heavily promoted by U.S. president Donald Trump.
Svyrydenko posted on Telegram that the site contained significant lithium reserves, which are of strategic importance to energy and technology.
We are searching for an investor that will not only ensure extraction but also development of value added production in Ukraine.
She stated that an official announcement will be made in the next two month, followed by a period of three months for bids to be accepted, and finally a decision on the winner.
Ukraine's Economy Ministry said on its website the winning bidder would sign a contract for 50 years and commit to invest at least $179 millions.
The document stated that the amount included both funding for geological research and production and enrichment.
The agreement also stipulates the compliance with environmental standards and the use of Ukrainian products and labour as well as investment in the local communities. (Reporting done by Yuliia Dyesa and Max Hunder. Toby Chopra, Mark Potter and Toby Chopra edited the story.
(source: Reuters)