1. Oz Metals
34th
Edition – 21st
June 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 / 3
TerraStudio
MORE DEALING THAN DIGGING
Base Metals & Precious Metals Fundamentals
Source: COMEX, LME, Metal Prices, RBA, SHFE, Thomson Reuters
$2.0
$2.3
$2.6
$2.9
$3.2
$3.5
$3.8
$4.1
0
100
200
300
400
500
600
700
Jul-14 Oct-14 Jan-15 Apr-15
ThousandTonnes
Copper
SHFE COMEX
LME US$/lb
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
Jul-14 Oct-14 Jan-15 Apr-15
Gold
A$/oz
US$/oz
$5
$6
$7
$8
$9
$10
0
100
200
300
400
500
Jul-14 Oct-14 Jan-15 Apr-15
$/lb
ThousandTonnes
Nickel
LME US$ A$
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
0
200
400
600
800
1,000
1,200
Jul-14 Oct-14 Jan-15 Apr-15
$/lb
ThousandTonnes
Zinc
SHFE (kt) LME (kt)
US$/lb A$/lb
China Zinc Imports
China Copper Imports
2. Oz Metals
34th
Edition – 21st
June 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 / 3
TerraStudio
Markets & Majors
Thomson Reuters - India is planning to issue sovereign
bonds linked to the bullion price in an effort to divert some
of the estimated 300 tonnes of annual demand for gold
bars and coins and curb bullion imports, which can push
up the trade deficit. The Reserve Bank of India, the central
bank, will issue the bonds on behalf of the government,
with a minimum interest rate of 2 percent, according to a
draft outline issued by the government.
Chinalco Mining Corp. International said its Toromocho
copper project in Peru began commercial production as of
June 17.
Thomson Reuters - A majority shareholder in a $1.9 billion
Chinese copper smelter being built in the port city of
Lianyungang faces the risk of a court-ordered restructuring
or bankruptcy, marking a new threat to a project still
awaiting environmental approval. The smelter, which is
due to have a capacity of 800,000 tonne a year, or more
than 10 percent of China's copper smelting capacity in
2015, is being built by Jiangsu Universal Copper.
Australian Mining - China and Australia signed a free trade
agreement which will see China removing tariffs on most
Australian mining and energy exports to the country,
including an 8% tariff on aluminum oxide and all tariffs on
coking coal. However, tariffs on thermal coal will be
gradually reduced over two years.
According to preliminary data from the International Lead
and Zinc Study Group, supply of refined lead metal from
January to April this year exceeded global demand by
4,000 tonnes.
Global refined zinc metal recorded a 181,000-tonne
surplus in the first four months of the year, marking a
change in the base metal's market for the same period in
2014 when it was in a deficit of 107,000 tonnes, according
to the International Lead and Zinc Study Group. Mined
production of zinc reached nearly 4.5 million tonnes in the
January to April period.
The West Australian - Western Australia has largely
avoided being hit by the "resource curse" of the mining
boom as the state experienced higher growth of non-
mining employment compared with most areas in
Australia's east coast.
Financial Times - Australian miners are campaigning for
the stripping of environmental groups' tax privileges,
claiming that the groups were using public funds for
ideological purposes and to engage in illegal activities that
cause damage to businesses and jobs.
Specialty Metals
Syrah Resources said it will incorporate coated spherical
graphite output into its business model following an
internal economic assessment into the construction of a
processing facility in the U.S.
TNG signed a memorandum of understanding with Energy
Made Clean Ltd to evaluate and implement energy supply
options for its wholly owned Mount Peake vanadium
project in Australia's Northern Territory, including the
potential supply of a state-of-the-art solar power system to
the project.
Valence Industries commenced operational graphite
production at its Uley mine in South Australia. The
company is planning to ramp up flake graphite production
rates to the nameplate capacity of 14,000 tonnes per
annum from September.
Funding, Mergers & Acquisitions
Reuters - Glencore and X2 Resources mining venture are
among the companies that recently placed bids for Anglo
Americans Mantos Blancos and Mantoverde copper mines
in Chile. Meanwhile, investment company Audley Capital,
whose mining CEO John MacKenzie served as Anglo
American's head of copper until 2013, was also among the
first round of bidders for the assets. Banking sources told
Reuters that both operations together could fetch Anglo
American up to US$1 billion, while two mining sources
familiar with the mines pegged the value at around
US$500 million or less.
Reuters - Former Xstrata boss Mick Davis' X2 Resources,
long considered a front runner, is out of the race for a
stake in Barrick Gold's Zaldivar copper mine in Chile after
it was outbid in the first round of the sale process,
according to three sources close to the matter. Rival bids
for a stake of up to 50% in the mine, once dubbed as the
"Andean ATM", were superior to the proposal made by X2
Resources.
Reuters - The government of the Democratic Republic of
the Congo has called for the suspension of Ivanhoe Mines’
sale of a stake in the Kamoa copper mine in the country to
Zijin Mining Group until the resolution of concerns raised
by the government. Under the terms of a deal inked in
May, Zijin will spend US$412 million to acquire a 49.5%
share interest in Ivanhoe subsidiary Kamoa Holding Co
Ltd, which owns 95% of the project. The government,
which holds the remaining 5% stake in the Kamoa project,
said Ivanhoe had pledged to grant it an additional 15%
stake, while also expressing concern that the sale to Zijin
Mining would dilute its new shares.
3. Oz Metals
34th
Edition – 21st
June 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 3 / 3
TerraStudio
Norton Gold Fields shareholders approved a takeover
offer of 25 Australian cents per share from majority
shareholder Zijin Mining.
Western Areas has struck a deal with Glencore to acquire
the Cosmos nickel complex for A$24.5 million. The
acquisition will provide it with substantial additional
exploration upside and a potential second mining
operation alongside its Forrestania nickel mine: the
undeveloped, high-grade Odysseus deposit hosts a total
resource of 7.3 million tonnes at 2.4% containing 174,000
tonnes of nickel. The cash consideration comprises an
initial payment of A$11.5 million on completion of the
transaction, followed by a second payment of A$7 million
nine months after completion and a final payment of A$6
million 18 months after completion.
Alara, Resources is in discussions with another company
for a potential scrip merger, under which Alara
shareholders would become shareholders in the other firm.
The parties have signed a mutual confidentiality and
exclusivity deed and are conducting due diligence.
Helix Resources has entered an agreement with EPG
Mining Exploration Fund under which the latter can earn
up to a 50.1% equity interest in the company's early stage
Joshua copper-gold project in Chile by completing up to
10,000 meters of drilling over 2.5 years.
Malachite Resources sold its Conrad silver project in New
South Wales, Australia, to Silver Mines Ltd. Under the
deal, Malachite received a A$50,000 initial option payment
and will receive a second payment of A$50,000 before
June 30. Upon completion of the transaction, Silver Mines
will pay A$350,000 to Malachite and issue shares worth
A$125,000.
Metro Mining subsidiary Cape Alumina Pty Ltd has
amended a June 2013 agreement regarding Green Coast
Resources Pty Ltd acquisition of the Hey Point bauxite
project in Queensland for cash payments and royalties of
2% to 3% on future sales from the project.
Monax Mining is moving to fully acquire the Punt Hill iron
oxide-copper-gold project in South Australia after
Antofagasta elected not to continue to sole fund
exploration at the project.
PepinNini Minerals has sold its Gooligoomba tenement in
north Queensland, for A$40,000, as part of its strategy to
divest non-core assets.
Rubianna Resources is selling its Ruby Well gold project
in Western Australia to further advance its acquisition of
cloud-based retail finance business zipMoney Holdings
Pty. Ltd. Under the option and sale agreement, the
purchaser can acquire the tenements for A$25,000 and
will assume all obligations associated with the project.
Southern Gold and project partner Metals X formally
approved the immediate start of mining at the Cannon
gold project in Western Australia. On-ground activity will
commence at the mine as soon as contractor selection is
finalised.
Mining Weekly - Venturex Resources proposed A$14
million sale of its Pilbara copper-zinc project in Western
Australia to Orion Mine Finance Group has been canceled
after Orion informed the miner that it was unable to
complete due diligence on the mine and hence decided
not to proceed with the transaction.
For further information, please contact:
J-François Bertincourt
+61 406 998 779
jf@terrastudio.biz