Mining Roundup

KAZ Minerals (LON:KAZ) says a waiver of the net debt to EBITDA financial covenant in the group’s PXF facility due to be tested as at 31 December has been approved. The covenant is next due to be tested as at 30 June 2017. The group continues to enjoy strong support from its lenders and plans to resume discussions with the PXF bank syndicate over a longer term refinancing of the facility in early 2017, after release of the 2016 financial statements.

A similar waiver request has also been issued to Caterpillar Financial Services (UK) Limited in respect of the Group’s $50 million revolving credit facility and a formal response is expected shortly.

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Vedanta Ltd (LON:VED) has announced its unaudited consolidated results under Ind AS for Q2.


– Revenues of Rs. 15,666 crore, up 9% q-o-q

– EBITDA of Rs. 4,640 crore up by 31% q-o-q, driven by strong operating performance and higher commodity prices

– Robust EBITDA margin1 of 39% vs. 32% in the previous quarter

– Attributable PAT at Rs. 1,252 crore, 17% higher y-o-y and 104% higher q-o-q

– Delivered cumulative cost and marketing savings of $ 421 mn over the last eighteen months

– Free cash flow post growth capex of Rs. 2,613 crore driven by operating performance and working capital initiatives

– Net debt reduced by Rs. 2,259 crore

– Strong financial position with total cash and liquid investments of Rs. 54,833 crore

– Contribution of c. Rs. 13,000 crore to the Indian Exchequer during H1 FY2017, in the form of taxes, duties, royalties and profit petroleum

– Interim dividend of Rs. 1.75 per share

– Aluminium: Smelters continue to ramp-up, production run-rate of 1.1mtpa (excluding trial run) and 1.2mtpa (including trial run)

– Power: TSPL 3rd unit of 660MW capitalized; plant availability at 77%

– Zinc India: Mined metal production up 51% q-o-q, H2 expected to be significantly higher than H1 as per the mine plans

– O&G: Strong production at Rajasthan, Mangala EOR 24% higher q-o-q; blended cost down 10% q-o-q

– Iron ore: Mining and shipments from Goa resumed post monsoon.

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Gemfields (LON:GEM) will hold its annual general meeting at the offices of Reed Smith LLP, The Broadgate Tower, 20 Primrose Street, London, EC2A 2RS, on 24 November at 11.00 a.m.

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Coal of Africa Limited (LON:CZA) says it has made significant progress in identifying possible cash generating assets in the three months to the end of September.

CoAL said no lost-time injuries were recorded during the quarter but the integrated water use licence for the Makhado Project remains suspended following an appeal to the Department of Water and Sanitation (“DWS”) submitted by the Vhembe Mineral Resources Forum.

Discussions continue with the Minister of Water and Sanitation.

Chief executive David Brown said: “The current company focus is to obtain a cash generating asset for the group. This will allow the Company access to sufficient funds over time to cover company overheads, pre project development costs for the Makhado Project, and all regulatory charges to ensure the continuation of full compliance on all current assets. T

“he increase in thermal and hard coking coal prices over the last quarter leaves the coal industry with a positive outlook and we are committed to the maximise the benefit of this market for our shareholders.”

At 4:14pm:

(LON:BEM) Beowulf Mining PLC share price was 0p at 5.5p

(LON:BKY) Berkeley Energia Ltd share price was 0p at 47p

(LON:CEY) Centamin PLC share price was -1.65p at 155.95p

(LON:CHL) Churchill Mining PLC share price was +1.38p at 29.88p

(LON:CZA) Coal of Africa Ltd share price was +0.11p at 3.35p

(LON:FDI) Firestone Diamonds PLC share price was -0.25p at 56.75p

(LON:FRES) Fresnillo PLC share price was +4.5p at 1618.5p

(LON:GEM) Gemfields PLC share price was +0.13p at 48.63p

(LON:GEMD) Gem Diamonds Ltd share price was +0.13p at 117.88p

(LON:HOC) Hochschild Mining PLC share price was -1.4p at 265.1p

(LON:KAZ) Kaz Minerals PLC share price was -6.65p at 295.45p

(LON:KMR) Kenmare Resources PLC share price was -3.75p at 295p

(LON:VED) Vedanta Resources PLC share price was -1.25p at 711.75p

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