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Pilbara Minerals' first-quarter production increases on the back of improved plant performance
Pilbara Minerals, based in Australia, reported a 2.1% increase in spodumene concentration for the first three months of this year on Friday. This was due to stable production from its Pilgangoora operation in Western Australia. In the three-month period ended September 30, the pure-play miner of lithium produced 224.8 thousand tons (kt) spodumene, which is used to produce lithium. This was higher than the 220.1 kg it recorded during the same time last year. According to the firm's statement, unit operating costs for free-onboard have decreased by 10.9% and are now A$540 per ton. This reflects "continued operational efficiencies" and "implemented cost reductions". The report added that "while the quarter ended September delivered strong cost performance," unit costs will continue to rise over the rest of the year because of seasonal operational challenges, typically associated with wet seasons. Pilbara Minerals has reported revenue of A$251 ($163.10 millions) for the third quarter. This compares to A$210 in the same period last year. The lithium miner's shares rose 6.4% in the early trading to A$3,15, their highest level since November 18. ($1 = 1.5389 Australian dollars) (Reporting by Shivangi Lahiri in Bengaluru; Editing by Maju Samuel)
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Japan Nuclear Sector seeks more support for new reactor construction, says lobby leader
A lobby leader said that the nuclear industry in Japan wants more support for building new reactors under the newly elected pronuclear prime minister Sanae Takaichi. This includes state-run auctions of capacity, according to a Thursday statement. Only 14 of the 54 reactors that operated in Japan prior to the Fukushima nuclear disaster in 2011 have been brought online. Takaichi said reviving the nuclear power was key to Japan's security. Japan has focused on restarting reactors that have been shut down - the government extended the operating life from 40 to 60 year - and only one new plant is currently in the planning stages. Hideki Masui said that the long-term capacity auction (LTDA), which is a scheme for developing new power generation, should provide more support to build new reactors. This process takes about two decades in Japan. Masui said, "We should add a scheme to the LTDA that allows some sort of fund recovery during construction even from an early stage." Masui stated that there are no safety regulations in place for the next-generation reactors. Operators are also seeking "financial support" and predictability from regulators. Kansai, Japan's largest nuclear power company, announced in July that it was conducting surveys for a new reactor to be built in western Japan. This is the first concrete step since Fukushima towards building a nuclear reactor. Data centres are reversing a trend of years of declining power demand. By 2040, Japan wants nuclear power to account for 20% of the electricity mix, up from 10% today. Masui stated that the authorities have granted initial restart permits to four more idled reactors. Eight others are currently undergoing safety tests and another 10 could request restarts. Masui stated, "Theoretically I believe Japan can reach its nuclear goal by 2040 with over 30 reactors running." (Reporting and editing by Tony Munroe and William Maclean.)
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Oil prices rise after Russia sanctions, stocks also gain as Trump-Xi summit confirmed
Oil prices rose more than 5% on Thursday to a new two-week high after Washington imposed sanctions against major Russian companies for the Ukraine War. Major stock indexes also climbed, as gains in U.S. energy stocks and European energy shares offset mixed earnings reports. The sanctions were announced late on Wednesday and targeted major Russian suppliers Rosneft, as well as Lukoil. The European Union approved the 19th set of sanctions against Moscow, which included a ban on Russian gas liquefied imports. Britain imposed sanctions on Rosneft & Lukoil last week. Wall Street stocks closed higher with indexes gaining strength after the White House confirmed that U.S. president Donald Trump will be meeting Chinese President Xi Jinping as part of his Asia trip next week. The trade tensions between Washington, DC and Beijing are escalating. Both sides have announced retaliatory actions. The confirmation that the two leaders will meet next week seemed to have eased tensions. The S&P 500 index ended 1.3% higher, with energy leading the sector gains. Stocks also benefited from a number of positive earnings reports. Honeywell shares gained 6.8% as the company raised its profit forecast for 2025. International Business Machines' shares, however, fell 0.9% as the company reported a slowdown of growth in its cloud software segment. "In general the (stock market) is responding to earnings which are for the most part continuing to be good. The market is also applauding Trump's severe sanctions against major Russian oil companies. Peter Cardillo is the chief market economist of Spartan Capital Securities, New York. The Dow Jones Industrial Average gained 144.20, or 0.31 percent, to 46.734.61, while the S&P 500 gained 59.04, or 0.58 percent, to 6,738.44, and the Nasdaq Composite gained 201.40, or 1.89 percent, to 22941.80. The MSCI index of global stocks rose by 4.32 points or 0.44% to 995.09. STOXX 600 index closes at record high, boosted by gains in energy shares. The pan-European STOXX 600 Index advanced 0.37%, reaching 574.43. Kering shares rose after Gucci's owner reported that sales had declined less than analysts expected in the last quarter. The oil futures market recorded its biggest daily percentage gain since mid-June, and the highest closing since October 8, 2008. U.S. data on energy showed that Russia would be the second largest crude oil producer after the U.S. in 2024. U.S. Crude gained 5.6% and settled at $61.79 per barrel. Brent rose 5.43% and settled at $65.99. U.S. Treasury rates rose. The long-term yields increased after three consecutive sessions of declines. Investors were also preparing for the release of the U.S. Consumer Price Index report on Friday. The U.S. Bureau of Labor Statistics announced last week that it would release the CPI report, despite the 23rd day of the government shutdown. This was to help the Social Security Administration calculate the annual cost of living adjustment for 2026. In afternoon trading the yield on the benchmark U.S. Treasury note was a little higher than the previous day. The 0.95% rate rose 4.4 basis point (bps) after reaching a session peak of just over 4%. Geopolitical risk has renewed demand for gold as a safe haven. Gold spot rose by 0.76%, to $4125.00 per ounce. Investors' firm belief that the Federal Reserve is going to continue cutting interest rates in the United States helps offset some of their anxiety over geopolitical tensions and trade conflicts. Last time, the dollar index did not change much. Investors have been more confident in the Fed's ability to protect the economy, and the dollar index has been rising. The U.S. Dollar index was nearly flat last week at 98.925, and the U.S. Currency was up by 0.38% against the yen.
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Orion to invest $1.8 Billion with US and Abu Dhabi governments in critical minerals
The U.S. government and Abu Dhabi will invest $1.8billion in mining and refining project across the globe, with Orion Resource Partners. This investment is to improve Western access to rare earths, lithium and other essential minerals. The plan was announced on Thursday as China, the world's largest mineral producer, is limiting access to essential minerals, even though demand has risen across the globe. This forces manufacturers to compete for new supplies. The U.S. International Development Finance Corp. (DFC), controlled by Washington and Orion, as well as the Abu Dhabi sovereign fund ADQ have each contributed $600 million to the newly-formed Orion Critical Mineral Consortium. The consortium hopes to reach $5 billion in funding from other countries around the world. It aims to get minerals to market quickly and avoids exploration projects. Frank Fannon, managing partner of the consortium and former U.S. Assistant Secretary of State for Energy Resources during President Donald Trump’s first term, said: "We're focused on projects that are currently in production or could be put into production very soon to bring material back to the U.S. Fannon stated that Orion will seek out other potential investors who have a "shared understanding and shared value" about the need to increase Western access to essential minerals. Orion announced its announcement two days after Appian Capital Advisor and the International Finance Corporation. Launch of their own $1 Billion Fund Invest in mineral projects in Africa and Latin America Fannon stated that Orion intends to "go where rocks are" by investing in mines around the world as well as processing facilities required to turn metals into building blocks for batteries, other equipment and other devices. Oskar Lewnowski is the founder and CEO of Orion. He said, "We are committed to funding supply chains to the extent needed to ensure end-stage products for our customers and consumers." Both executives stated that Orion would focus its investment on copper and uranium as well as minerals deemed critical by the U.S.A., Canada, Europe and Australia. The DFC also owns a stake in a mining company TechMet The executives stated that the government will be involved with investment decisions. This involvement is expected to reduce geopolitical risks associated with any project. Lewnowski stated that "the (U.S. government) certainly brings a great deal to bear, especially in emerging market situations, and this makes investments much more tenable" for us. Orion's interest in the topic was a no-brainer. Ukraine's mining industry Lewnowski stated: "Ukraine is home to some interesting rocks." Let's just leave it there. The Trump administration has taken equity stakes Washington is increasingly willing to get involved in the mining industry directly. The U.S. government has also increased lobbying efforts by critical mineral companies, in an effort to gain a share of the investments Trump has promised to firms that are deemed vital to national security. (Reporting from Ernest Scheyder, Houston; additional reporting from Brijesh Pate in Bengaluru; editing by Stephen Coates).
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Newmont's profit beats expectations as gold prices record offsets output decline
Newmont, world's biggest gold miner, beat Wall Street expectations for the third quarter profit on Thursday, as record gold prices helped to offset a decline in its production. The gold price has repeatedly broken records this year, as investors have sought out the safe-haven investment amid the uncertainty caused by U.S. president Donald Trump's policies on tariffs and the escalating tensions in the geopolitical world. Newmont reported that it achieved an average gold price per ounce of $3,539 in the three-month period ended September 30. This is up from $2 518 a year ago. The gold price rally has helped to cushion a decline of 15% in the output of gold during the third quarter, which fell to 1,42 million ounces. Lower ore grades, planned maintenance and the completion of mining in the Subika pit in Ahafo South led to a decrease in production. Following the announcement, shares of the company fell 2.5% on extended trading. Newmont sold non-core assets in order to reduce its debt after acquiring Australian miner Newcrest for $17.14 billion. Gold's all-in-sustaining costs fell by 2.8% in the third quarter to $1,566 an ounce, due to improved pricing and operational efficiency. Newmont anticipates that capital expenditures will increase in 2026, as it progresses its key projects. These include tailings work at Cadia, and a possible expansion at Red Chris. Last month, the company appointed Natascha Vijoen as its first female CEO to succeed Tom Palmer. According to data compiled and analyzed by LSEG, the gold miner reported a quarterly profit of adjusted $1.71 per stock, exceeding analysts' average estimates of $1.43. (Reporting and editing by Shreya Biwas in Bengaluru)
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Ford reduces its annual guidance citing a fire at a supplier's aluminium plant
Ford Motors cut its profit forecast on Thursday. The company cited the fallout of a fire that occurred at an aluminum supplier, which will affect production of some its most profitable vehicles until the end of the calendar year. Ford Motor said that a fire in September at Novelis's Oswego factory, which supplies materials for F-150 trucks, will cost it between $1.5 and $2 billion, before taxes and interests. It expects to offset around $1 billion next year. Ford CEO Jim Farley stated in a press release that he was on site with Novelis, working to source aluminum for parts of the plant which were still operating. Farley stated that "we have made significant progress in a very short period of time in order to minimize the impact on 2025 and restore production in 2026." Ford announced its results after the close of the stock exchange. Shares in the automaker rose about 5% following the closing bell. Novelis didn't immediately respond to an inquiry for comment Thursday afternoon. It had previously stated that it anticipated production at the affected area of the plant to resume by the first quarter 2026. Ford reported revenue of $50.5billion for the third quarter. This is up 9% compared to a year ago. The company reported a profit per share of 45 cents for the quarter, exceeding the 36 cents expected by LSEG analysts. Detroit Three automakers cut their annual forecast for the second year in a row, from $6.5 to $7.5 billion to earnings before taxes and interest of $6.0 to $6.5 Billion. Ford had previously reduced its guidance due to tariffs. Many U.S. automobile manufacturers will soon be relieved after President Donald Trump signed an order expanding credits for U.S. engine and auto production. This allows companies to receive a tax credit of 3.75% on the suggested retail price of U.S.-assembled vehicles until 2030, to offset import duties on parts. Ford stated in July that Trump levies could cost as much as $3 billion, of which $1 billion it intended to offset. Executives said that the recent relief from tariffs has resulted in a net impact of $1 billion. Sherry House, Ford's Chief financial officer, said that if it weren't for the fire at Novelis, Ford would have increased its guidance. Executives said that the automaker was buying aluminum from Novelis' other facilities. Novelis also supplies Toyota and Stellantis. Ford, however, is a big consumer, as its F-150 trucks are primarily aluminum-bodied. General Motors said Tuesday that the fire has only "minimally" affected them. Ford announced that it will increase production at its Michigan and Kentucky plants by 50,000 trucks next year in order to recover losses. The production of the F-150 Lightning EV will be halted indefinitely so that the company can focus on the more profitable gasoline versions. Beyond the fallout of the Novelis Fire, there are several other potential disruptions in global supply chains that could affect the auto industry. China has recently tightened export controls on battery materials for electric vehicles and rare earths that are extensively used inside cars. Separately, an intellectual-property dispute between the Netherlands and China over computer chips has auto-industry groups warning of potential factory disruptions. GASOLINE-FUELED TRUCKS POWER PROFITS Detroit's profits continue to be fueled by sales of gasoline-fueled SUVs and trucks, even though Ford and GM both retreated from their plans for electric vehicles to focus on traditional core products. The third quarter saw a surge in EV sales as consumers rushed to get the $7,500 tax credits that were ending at the end September. Analysts and automotive executives predict that EV sales will decline through the end the year but gradually recover in 2026. GM's shares soared by 15% on Tuesday, after the company reported results for its third quarter that exceeded Wall Street expectations. The company also provided a positive outlook for 2026 and a reduced impact of tariffs. Tesla's stock fell about 4% on Wednesday after it reported revenue that exceeded forecasts but missed profits on tariff and research expenses. Ford's EV losses, and its quality issues have been the biggest challenges it has faced for several quarters. The automaker predicted earlier this year that it would lose up to $5 billion in its EV business and software by 2025. This segment recorded an operating loss of $1.4 billion for the third quarter. Reporting by Nora Eckert, Nathan Gomes and David Gregorio; editing by Mike Colias & David Gregorio
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NioCorp and Lockheed Partner on Pentagon-funded Scandium Alloy Work
NioCorp, a rare earths miner in Colorado, said Thursday that it was working with Lockheed Martin - a U.S. defence contractor - to develop an alloy of scandium and aluminium for military equipment. The program is funded by the Pentagon. NioCorp, based in Colorado, received $10 million in August from the Pentagon to develop a Nebraska mining facility that will produce scandium - one of 17 rare earths. Lockheed is an important supplier of weapons and fighter jets to the U.S. Military. NioCorp, Lockheed and other companies are using a portion of this funding to develop an aluminum and scandium alloy. Tests for the 2027 equipment range are scheduled. The Pentagon is interested in an alloy made of aluminum and scanningium because it is lightweight and conducts electricity very well. It is also corrosion resistant and can withstand a wide range of temperatures. Scandium has been used for many years in defense, aerospace, and energy applications. However, the majority of its supply comes from China. The United States hasn't mined scandium in the country since 1969. NioCorp intends to extract scandium from Nebraska's deposit and then process it into ingot form. A third party will use this ingot to create powder which can be used to 3D print replacement parts for Lockheed. NioCorp plans to open the Nebraska mine in 2028. The U.S. Export-Import Bank is considering a $800 million loan for the project. Reporting by Dharna Baffna from Bengaluru, and Ernest Scheyder from Houston; editing by Tasim Zaid and David Gregorio
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The FOREX-Yen falls as traders look at new US sanctions and CPI data
The dollar was higher against the Japanese yen as traders awaited the delayed release on Friday of U.S. consumer price inflation data and considered the new U.S. sanctions imposed on Russian oil companies that boosted oil prices. The U.S. Dollar Index, which measures the greenback in relation to a basket, was almost flat last week at 98.925. The main focus of the week is on the release of inflation data despite the U.S. government shutdown. This will help the U.S. Social Security Administration calculate its annual cost-of living adjustment for 2026. The Federal Reserve will closely monitor the numbers, even though its policy focus has shifted away from inflation and towards the U.S. labour market. The data will be important for slightly different reasons than normal. Nick Rees is the head of macro-analysis at Monex Europe. YEN SLIDE - YEN ON SLIDE The new U.S. sanctions against major Russian suppliers Rosneft, and Lukoil for Russia's involvement in the war in Ukraine have sent oil prices up by nearly 5%. This follows British sanctions last week on these two companies. The U.S. Treasury Department announced that it was ready to take additional action, as it called upon Moscow to immediately agree to a ceasefire. Several trade sources reported that Chinese state oil companies had stopped buying seaborne Russian crude oil from two companies. This boosted prices. Marc Chandler, Bannockburn Capital Markets' chief market strategist, stated that the new sanctions had a negative impact on the yen and other currencies linked to oil imports. He said that Japan is a large oil importer and that higher oil prices are hurtful. The yen was also affected by domestic factors. It was headed back to last week's seven month low of 153.29 per dollar. This was the level it reached this week, after Sanae Takaichi was selected as Japan's new ruling party leader. Takaichi is widely considered a fiscal dove and a monetary dove. The market is eagerly awaiting the details of Takaichi's stimulus package now that he is in office as Prime Minister. Yutaka Miura is a senior technical analyst with Mizuho Securities. He said that buying based on the hopes of a Takaichi-led government had already reached its end. The market has reached a stage where it must assess the feasibility of concrete policies. OIL PRICE RISE The Norwegian crown appreciated on Thursday due to the increase in oil prices. The dollar fell 0.42% against the Norwegian crowns at 9.9717, dropping below the 10-crown mark for the first two weeks. Meanwhile, the euro reached a new low of 11.568 crowns in a month. Sterling was also down 0.25% to $1.332, having recovered from its recent fall. This was due to weaker than expected consumer inflation data which caused the markets' bets for another Bank of England rate reduction this year. The euro rose 0.06% to $1.162. The Swiss National Bank published its first meeting minutes on Monday. It did not move the Swiss Franc. It was at 0.7949 to the dollar. Hannah Lang reported from New York, with additional reporting from Alun John and Kevin Buckland in London; editing by Jacqueline Wong and Kim Coghill; Barbara Lewis, Alison Williams, and Diane Craft.
Valero Energy's profit beats expectations for the third quarter on higher margins
Valero Energy in the United States, which is kicking off earnings season for refiners on Thursday, reported better-than expected third-quarter results as refining margins were supported throughout the quarter, and refinery throughputs in the Gulf Coast region and North Atlantic region reached new heights.
On Thursday, shares of the company rose 6.8% to $172.90.
Fuel producers have seen their margins rebound from the multi-year lows of 2024, as supply shortages linked to geopolitical tensions with Ukraine boosted pricing.
On a Thursday conference call, Lane Riggs, Chief Executive Officer of Lane Riggs Corporation told analysts that "refining margins were well supported by the strong global demand as well as persistently low inventories despite high usage rates."
U.S. refinery profit margins measured by the 3-2-1 Crack Spread
Jason Gabelman of TD Cowen said that Valero’s results were better than expected, thanks to high refining output and improved margins for renewable diesel.
LSEG data shows that the company's quarterly profit was $3.66, compared to analysts' expectations for $3.05.
During the third quarter, Valero’s refineries reached 97% of the combined throughput capacity. Refineries on the Gulf Coast and North Atlantic region achieved all-time records.
The average volume of the company's throughput rose to 3.1 millions barrels per day during the quarter from 2.9million bpd one year ago. The San Antonio-based refiner intends to run its 15 refineries up to 95% their 3.2 million barrels per day throughput capacity in the fourth quarter.
Valero’s refining profit per barrel throughput increased by over 44% in the third quarter to $13.14, compared to $9.09 one year ago.
The refining sector reported an operating profit of $1.6 billion, up from $565 million in the same period last year.
(source: Reuters)