Only a few weeks ago, the A$ zinc price reached a 5-year high. As at Friday close, it jumped to a 7-year high. The copper price jumped also, while official inventories are decreasing again.
1. Oz Metals
28th
Edition – 3rd
May 2015
DISCLAIMER
This report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do not accept liability
for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein. Readers should seek
investment advice from their professional advisors before acting upon information contained herein.
Page 1 / 4
TerraStudio
A$ ZINC PRICE JUMPS TO 7-YEAR HIGH
Base Metals & Precious Metals Fundamentals
Sources: COMEX, LME, RBA, SHFE
$50
$55
$60
$65
$70
$75
$80
Apr-14 Jul-14 Oct-14 Jan-15
CIFPriceofChineseImports
Bauxite
US$/t
$A/t
$2.0
$2.3
$2.6
$2.9
$3.2
$3.5
$3.8
$4.1
0
100
200
300
400
500
600
700
Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
ThousandTonnes
Copper
SHFE COMEX LME
US$/lb A$/lb
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
Gold
A$/oz
US$/oz
$5
$6
$7
$8
$9
$10
$11
0
100
200
300
400
500
600
Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
$/lb
ThousandTonnes
Nickel
LME US$ A$
$6.00
$7.00
$8.00
$9.00
$10.00
$11.00
$12.00
0
3
6
9
12
15
18
Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
$/lb
ThousandTonnes
Tin
Inventory US$ A$
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
0
200
400
600
800
1,000
1,200
Apr-14 Jul-14 Oct-14 Jan-15 Apr-15
$/lb
ThousandTonnes
Zinc
SHFE LME US$ A$
2. Oz Metals
28th
Edition – 3rd
May 2015
DISCLAIMER
This report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do not accept liability
for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein. Readers should seek
investment advice from their professional advisors before acting upon information contained herein.
Page 2 / 4
TerraStudio
Markets & Majors
The global refined copper market is expected to see a
surplus of 365,000 tonnes this year, down from a 595,000 t
surplus estimated in April 2014, according to the
International Copper Study Group (ICSG). Last October, the
ICSG revised down the surplus for this year to 390,000
tonnes. The copper market could show a second
consecutive surplus in 2016, but this is expected to be lower
at 230,000 tonnes as demand growth outpaces production
growth. Terra Studio’s review indicates that higher surpluses
forecasted by the ICSG at the same period in 2013 and
2014 for the corresponding year turned into actual deficits.
Thomson Reuters - Pure-play silver miners, a niche
investment market popular with retail investors, are moving
up the endangered list. Buffeted by a 68% plunge in the
price of silver since 2011, miners who traditionally made
most of their money from silver are increasingly diversifying
into gold, buying mines that have been put up for sale and
looking to acquire more.
Thomson Reuters - The Philippines' mining industry
regulator said on Monday two new nickel mines would help
boost production of the country's top metal export this year,
but prices may remain weak amid tepid demand from top
consumer China. The Southeast Asian country was last
year's biggest nickel ore supplier to China's producers of
nickel pig iron, used in stainless steel production, after
previous top supplier Indonesia banned exports of
unprocessed metallic minerals.
Funding, Mergers & Acquisitions
mining.com - Rio Tinto, the world’s second largest mining
company, is ready to restart looking for deals, but only if it
can secure the right asset at the correct valuation and win
investor support, analysts and banking sources say.
Newmont Mining has inked a nonbinding letter of intent to
sell its Newmont Waihi Gold unit to Oceana Gold for cash
proceeds of US$101 million and a US$5 million contingent
payment. In addition, Newmont will retain a 1% net smelter
royalty on a recent discovery north of Waihi's current
operations at its namesake Waihi gold mine in New Zealand.
Following the execution of a definitive acquisition agreement,
fulfillment of all conditions precedent and receipt of
necessary board and regulatory approvals, Oceana Gold
will acquire all of Waihi's open pit and underground mining
assets and liabilities, including all social, environmental and
employee obligations. Both parties have agreed to complete
due diligence and target execution of a definitive acquisition
agreement in mid-May.
According to a report by The Australian Financial Review,
the Cowal gold mine would fit OZ Minerals' new criteria of
seeking acquisitions outside its primary commodity, copper.
Kidman Resources has agreed to acquire the Burbanks gold
mine located near Coolgardie in Western Australia in a
move, which will see it generating production and cashflow
within the September quarter. Under the agreement,
Kidman will pay private company Blue Tiger Mines Pty Ltd
$3 million for an 80% stake in the Burbanks mine and the
nearby Coolgardie North gold project, which includes the
Gunga open pit mine. Kidman will also inject $2.4 million to
a total working capital pool of $3 million to help fund
resource definition drilling and the stage one mining plan at
Burbanks.
Mungana Goldmines has received an off-market takeover
offer from Auctus Chillagoe Pty Ltd, to acquire all of the
ordinary shares of Mungana Goldmines for 13.5 Australian
cents per share in cash. The offer represents a 29%
premium to the April 28 closing price of Mungana shares on
the ASX.
St Barbara has signed a deed of sale for the Gold Ridge
project and a number of associated subsidiaries to a
Solomon Islands company associated with local landowners
for a nominal purchase price and on confidential terms.
Thor Mining is moving to full ownership of the Spring Hill
gold property in the Northern Territory. The company has
agreed on terms to acquire the 49% interest in Spring Hill
that it does not already own from Western Desert
Resources subsidiary WDR Gold Pty Ltd, which is currently
in receivership. Consideration has been agreed at
A$210,000 plus A$100,000 worth of Thor Mining CHESS
depository interests.
Bauxite Sector
Source: Bloomberg, SNL Metals & Mining, Terra Studio
Zinc & Poly-metallic Sector
Source: SNL Metals & Mining
Code Company Name
Close
Price
Week Δ YTD Δ
52 Week
Range
Market Cap
(A$m)
Cash
(A$m)
TEV
(A$m)
ABX Australian Bauxite 0.32 ▼ (9%) 3% 40 4 36
BAU Bauxite Resources 0.082 ▲ 2% (16%) 19 24 (5)
CAY Canyon Resources 0.040 — 0% (20%) 5 1 4
MLM Metallica Minerals 0.066 ▲ 16% 20% 11 2 9
MMI Metro Mining 0.086 ▲ 8% 219% 25 5 20
Code Company Name
Close
Price
Week Δ YTD Δ
52 Week
Range
Market Cap
(A$m)
Cash
(A$m)
TEV
(A$m)
AQR Aeon Metals 0.085 ▲ 6% (15%) 26 3 38
DGR DGR Global 0.033 — 0% 3% 14 23 15
HRR Heron Resources 0.13 ▲ 4% 4% 47 26 21
IBG Ironbark Zinc 0.120 ▲ 4% 50% 53 3 50
IPT Impact Minerals 0.017 ▼ (15%) (29%) 10 1 7
IVR Investigator Resources 0.012 — 0% (25%) 6 5 1
MRP MacPhersons Resources 0.096 ▼ (13%) (23%) 30 5 25
PNX Phoenix Copper 0.017 — 0% (43%) 6 2 5
RDM Red Metal 0.040 — 0% (51%) 7 4 3
RVR Red River Resources 0.17 ▲ 18% 50% 29 4 25
RXL Rox Resources 0.028 ▼ (3%) 0% 24 3 21
TZN Terramin Australia 0.110 ▲ 22% 0% 167 1 212
VAR Variscan Mines 0.012 ▲ 9% (51%) 4 1 4
VXR Venturex Resources 0.005 ▲ 25% 0% 8 1 6