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Boliden CEO anticipates dividend payment to resume
Mikael Stafas, Chief Executive Officer of Boliden's Swedish subsidiary, said in an exclusive interview with the newspaper on Friday that Boliden will resume dividends. He said that the copper and zinc producer has committed to its dividend distribution policy, and will continue to do so until 1/3 of its profit is distributed to shareholders. This was after Lundin Mining acquired the Somincor mines and Zinkgruvan from Lundin Mining. Staffas stated that "even though we had good cash flow this quarter, I believe most people expected the balance sheet to be much stronger after the acquisition." Boliden has not yet been ready to pay additional dividends. However, he wouldn't rule out the possibility if there was a surplus of capital. The group, that also mines silver and gold, reported a free cash flow (FCF), excluding the acquisitions of 2,035 millions Swedish crowns ($210.19million) in the second quarterly. RBC and JP Morgan both said that FCF was higher then expected, with the boost coming from the release working capital. Staffas refused to comment on the potential size of a dividend.
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Global shares increase as U.S. consumers hold up and the yen is weak before Japan's vote
Global shares rose on Friday, as strong U.S. corporate earnings and economic data this week helped to ease tariff concerns. The yen was headed for a second consecutive weekly loss in advance of the crucial legislative election that will take place in Japan on Sunday. Stronger-than-expected U.S. retail sales and jobless claims suggesting modest improvement in economic activity helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday. European and Asian stocks also gained on Friday. European stocks last rose 0.4%, while Asian shares outside Japan were up 0.9%. Wall Street futures also rose around 0.1%. Eren Osman said that the positive start of earnings season in America, with streaming giant Netflix exceeding expectations, was also a factor supporting investor confidence. "We are pretty positive on the macro-background (in the U.S.)... We see some scope for growth slowing, but nothing material, and this is giving the markets a nice boost," Osman added, adding that the full potential impact of U.S. Tariffs remains in focus. Next week, Alphabet and Tesla will be among the companies reporting their half-year results. This will test the mood of the market. The dollar's value against the yen was essentially unchanged at 148.65, but it was down almost 1% in this week following polls that showed Shigeru Shiba's government was in danger to lose its majority during the Sunday upper house elections. The data released on Friday revealed that Japan's core rate of inflation decreased in June, due to temporary reductions in utility bills. However, it remained above the central banks 2% target. Ishiba has been losing popularity because of the rising cost of living. This includes the price of rice. Jayati Bharadwaj is the head of FX Strategy at TD Securities. She said that if PM Ishiba resigns due to an election loss, USDJPY would easily rise above 149.7, as this would bring about an initial period political turmoil. The JPY could recover from its recent dramatic weakness, if the ruling alliance wins and can make rapid progress on a deal with Trump. The U.S. Dollar Index fell 0.1% on the currency markets to 98.365 but is heading for its second consecutive weekly gain after bouncing back from a three-and-a half year low reached over two weeks ago. Fed Governor Christopher Waller continued to say on Thursday that he believes the central bank should reduce interest rates by the end of the month, despite the fact that most officials have not expressed a desire to do so. Treasury yields are slightly lower. Benchmark 10-year U.S. Treasury Yields fell 2 basis points, to 4.44%. Two-year yields were also 2 bps lower at 3.90%. After drone strikes on Iraqi Kurdistan's oil fields, supply concerns fueled Friday's gains in oil prices. U.S. crude oil rose by 0.4%, to $67.81 a barrel. Brent rose by 0.4% as well to $69.79 per barrel. Gold prices rose 0.3%, to $3348 per ounce.
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India's Hindustan Zinc beats quarterly profit estimates
Hindustan Zinc reported a higher-than-expected profit for its first quarter on Friday. The strong demand of the metal helped to cushion the impact that geopolitical uncertainty had on prices. LSEG data shows that India's largest refined zinc producer saw its net profit fall 4.7%, to 22.34 billion Rupees ($259.2 millions), for the quarter ending June 30. This was higher than analysts' estimates of 21.02 million rupees. Analysts said that the demand for zinc, an alloy commonly used to protect steel from corrosion, increased due to the strong local steel production, which grew 8.6% year-on-year. Metal prices were impacted by geopolitical tensions, uncertainty over U.S. Trade Policies, and a drop in industrial metals such as zinc, aluminum and copper, which squeezed producer margins. According to Systematix Research, domestic zinc prices dropped 7% in the second quarter of this year and 6% in the first quarter, following global trends. Sandeep Modi, CFO of Hindustan Zinc, said in April that the uncertainty over U.S. Tariffs would delay stabilisation, but that "fundamentally, prices will remain high." The benchmark zinc price on the London Metal Exchange dropped 3.5% during the quarter ending June 30. Hindustan Zinc reported a drop of 4% in its total revenue, bringing it to 77.71 trillion rupees. $1 = 86.1750 Indian rupees (Reporting and editing by Manvi Pan; Sumana Niandy, Chandini Monnappa).
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Sources say that Kazakhstan CPC blend oil is headed to Asia, as European demand declines.
Traders said that Asia's refiners bought more Kazakhstan CPC blend crude in August than they did in July, after the fall of European demand lowered prices. This likely capped Asia's demand for light-sour grades like Abu Dhabi Murban. A London-based trader stated that the CPC Blend crude discount was increased by $1 per barrel in August's second half due to a softer demand for crude from refiners along the Mediterranean. This difference allowed traders to profit from the lower price. Sources said that the prices for CPC crude oil for delivery to North Asia were about $3.50 a barrel to slightly below $4 per barrel over September Dubai quotes. The sources said that this is lower than the price of Murban, which was $4.70 per barrel based on Dubai's cost and freight quotes. Murban, which mainly flows to Asia, is supported through lower exports, as Abu Dhabi National Oil Co. is diverting supply to its own refinery. Sources say that Unipec (the trading arm of Asia’s largest refiner Sinopec), South Korea’s two top refiners SK Energy & GS Energy, as well as India's Reliance Industry, have each purchased at least 1,000,000 barrels of CPC blend crude. Sources said that the companies didn't immediately respond to comments. Brent's premium over Middle East benchmark Dubai is now more affordable to Asian buyers. Brent-Dubai Exchange of Futures for Swaps dropped below $1.60 a barrel this week at the close of Thursday, LSEG's data revealed. This is a level not seen since last May. June Goh is a senior analyst with Sparta Commodities. She said that an increase in the freight rates of Very Large Crude Carriers along the Middle East-China route has increased the costs for Gulf crudes as compared to arbitrage supplies coming from Kazakhstan, Brazil, and the U.S. She added, "We expect further corrections of the spot AG market (Arabian Gulf), to prevent competition from arb crudes." While traders continue to seek opportunities to ship U.S. West Texas Intermediate Crude to Asia, premiums for WTI in East Houston have also increased. MEH (also known as ) fell to its lowest level in over two weeks. The price of WTI crude oil for North Asia is about $5 per barrel higher than the September Dubai quotations, and slightly more expensive than Murban.
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Dalian Iron Ore gains for the fourth week in a row on optimism
Dalian iron-ore futures rose on Friday, reaching their highest closing in four and half months. The market also recorded a fourth weekly gain as a result of a positive demand outlook. The contract for September iron ore most traded on China's Dalian Commodity Exchange rose by 0.38%, to 785 Yuan ($109.34), per metric ton. This contract has gained 3.66% in the last week. As of 0740 GMT the benchmark August iron ore price on the Singapore Exchange had fallen 0.18% to $100.65 per ton but was up 1.38% over the past week. Analysts from ANZ stated that traders are optimistic about improved steel margins after Beijing's signal to tackle overcapacity. Hopes for new stimulus in the property sector have also lifted market sentiment. ANZ stated that lower inventories of both iron ore, and steel, are fueling expectations for a restock in the months to come. SteelHome, a consultancy, says that total iron ore stockpiles across Chinese ports fell by 0.76% in a week to 130.9 millions tons on July 18. This has further supported prices. Galaxy Futures, a broker, reported that the current demand for iron is strong, while steel consumption remains high in the manufacturing industry. Galaxy stated that the prices are further supported by expectations of reforms to supply-side policies. Hexun Futures, a broker, said that despite the fact that it's off-season, steel demand is up due to lower supply as some blast furnaces are undergoing maintenance in mid-year. Coking coal and coke, which are used to make steel, also rose on the DCE. The increases were 2.55% and 1.23 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange have gained ground. Rebar grew 0.74%, hot-rolled steel grew 0.91% and stainless steel grew 0.39%. ($1 = 7.1792 Chinese yuan). (Reporting and editing by Rashmi Liew, Subhranshu sahu, and Lucas Liew)
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Boliden's earnings fall short of expectations due to the weakening dollar
Boliden reported Friday that its operating earnings in the second quarter were lower than expected, due to the stronger US dollar. Boliden's operating profit for the quarter fell from 4,81 billion Swedish crowns to 1,09 billion Swedish Crowns ($112,11 million), on a reported-basis. This was below the analysts' average estimate of 1,48 billion crowns, according to LSEG. In an interview with Chief Executive Mikael Stas, Staffas cited the depreciation of the US dollar as a reason for the indirect effects. He said, however, that over time, the current volatile climate could be positive for the company, as many companies are cutting back their investment in mining. This could lead to higher prices. Boliden sells metals in U.S. dollars. When the dollar falls, the value of the products sold will fall when converted to Swedish crowns. Maintenance planned at the group's smelters also affected its results. The company warned that the planned maintenance would have a 500-million crown impact in 2025. This includes 400 million crowns in the period April-June. The copper and zinc producer, while maintaining its capital expenditure forecast of 15.5 billion crowns for 2025, delayed the update to 2026 to early December in order to include all mines including Somincor, Zinkgruvan and Lundin Mining, which it purchased last year. Boliden shares were flat at 0815 GMT after falling 5% on the opening. $1 = 9.7228 Swedish Crowns
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Copper prices rise on positive US data and China demand prospects
Copper prices rose on Friday, supported by stronger-than-expected U.S. economic data and expectations of increased buying from top consumer China after the recent price dip. The price of three-month copper at the London Metal Exchange rose 0.36% by 0700 GMT to $9,701.5 a metric ton, a rise of 0.49% this week. The Shanghai Futures Exchange's most traded copper contract increased by 0.65%, to 78.410 yuan (10,922.74) per ton. However, it was still down 0.28% this week. The U.S. data is encouraging and has boosted the hopes for better demand for copper. This also reduces the likelihood of immediate interest rate reductions, according to a metals analyst in Beijing at a futures firm. Retail sales in the United States increased by 0.6% in June, after a 0.9% decline in May that was not revised. The number of Americans who filed new unemployment benefit applications fell last week. This indicates that job growth has been steady so far this month. The LME copper stock has been increasing, especially at its Asia warehouses, as traders are betting that China will buy more with the recent price drop, but it is unclear whether or not this will happen. The total copper stock at LME registered warehouses As of Thursday, the number of tons of coal in Asian warehouses, such as Gwangyang, Taiwan, and Gwangyang, had risen by 34.8%. Focus is also placed on the looming U.S. Tariffs, as the deadline of August 1 approaches and the details regarding the 50% import levies for copper. LME tin rose by 0.68%, to $33,240 per ton. Zinc advanced by 0.42%, to $2,748.5. Lead increased 0.2%, to $1977. Aluminium rose 0.19%, to $2,583, while nickel climbed 0.09%, to $15,110. SHFE tin rose the most, by 1.07%, to 264.540 yuan per ton. Zinc grew by 1%, to 22.300 yuan. Nickel climbed 0.73%, to 120.500 yuan. Aluminium grew 0.42%, to 20.510 yuan. Lead dropped 0.3% to 16.820 yuan. Click or to see the latest news in metals, and other related stories.
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Valterra Platinum Flags' first-half profits fall for South Africa
Valterra Platinum, a South African company, expects to see its first-half profit fall by up to 88% as a result of lower sales and output as well as special costs relating to the demerger with Anglo American Plc Group. Valterra, previously Anglo American Platinum said it expected headline earnings of between 800 million rand to 1.6 billion rand (44.97-$89.94) for the six months ending June 30. This is down from 6.5 billion in the same period the previous year. The company reported that the sales of platinum group metals (PGMs) fell by 25% following heavy rain and flooding at Valterra’s Tumela Mine within its Amandelbult Complex. Demerger costs totaled 1.4 billion rand in the first half. Valterra separated from Anglo Mining in June. It is now listed separately in Johannesburg and London as the global mining company restructures to focus primarily on energy metal copper. Valterra stated that cost savings of approximately 2.1 billion rands helped offset the declines in earnings during the period. The company's refined production guidance for the year of 3,0 million to 3.4 million PGM-ounces remains unchanged. Valterra will announce its half-year results on the 28th of July, its first as an independent company. Reporting by Nelson Banya, Editing by Elaine Hardcastle.
India's gold imports to plunge in December after record November
India's gold imports are poised for a sharp slowdown in December following record purchases in November, in the absence of any major festival and as rebounding costs trigger purchasers to postpone purchases, trade and federal government authorities said.
Lower imports by India, the world's second-biggest consumer of the rare-earth element, could top a rally in global prices that struck a record high in October. The drop in imports could also assist India narrow its trade deficit and support the ailing rupee.
Last month, imports shot up thanks to strong demand for financial investment and jewellery, Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA), stated.
And now, things are cooling down, and imports are slowing down. We might see a drop of over 50% in December.
Gold imports more than doubled in November compared to the previous month, reaching a record $14.8 billion, which broadened the trade deficit to a record level and pressed the rupee to an all-time low.
Lots of possible buyers had been awaiting gold rates to drop and rushed to make purchases as quickly as rates remedied in November, said a Mumbai-based dealership with a personal bullion importing bank.
Local rates decreased to 73,300 rupees ($ 863) per 10 grams in mid-November after hitting a record high of 79,775 rupees in October.
Prices have actually rebounded in December, which is discouraging purchasers and will likely result in imports falling dramatically to around $ 5 billion, the dealership stated.
So far this month, we have gotten less gold consignments for clearing compared to last month, said a customizeds authorities, who declined to be named.
Weak demand triggered Indian dealerships today to provide a. discount << XAU-IN-PREM > of up to $8 an ounce over official. domestic rates-- inclusive of 6% import and 3% sales levies. Last month, they were charging a premium of up to $16.
In November, financial investment demand was robust as bullion was. using better returns than the stock exchange, IBJA's Kothari. stated.
India's NSE Nifty 50 share index was up to 23,263.15. points in November, down 11% from a record high hit on Sept. 27.
Gold imports in November were likewise driven by joyful season. need, as jewellers intended to renew stocks following the. celebrations of Dussehra and Diwali, stated Amit Modak, chief. executive of PN Gadgil & & Sons, a jeweller.
(source: Reuters)