Mining Roundup

Scotgold Resources (LON:SGZ) said an application has been made to the Loch Lomond and Trossachs National Park Planning Authority to extend Bulk Processing Trial operations to the end of March 2018.

It is planned to process around 4,800t (c.2,400m3) of additional material (the balance of the existing stockpile) over a period of approximately twelve months (at processing rate of around 400tpm). No change to the pilot plant process is proposed.

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DiamondCorp (LON:DCP), the southern Africa focused diamond mine development and exploration company, has announced that non-executive director Dr. Jonathan Willis-Richards has resigned from the board, effective immediately. The board thanked Willis-Richards for his valuable contribution over the years and wished him the best with his future endeavours.

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Anglo Pacific Group (LON:APF) notes that industry sources are reporting the seaborne benchmark hard coking coal contract price for the first quarter of 2017 has settled at US$285 per tonne.

This is the highest settlement price since Q4 2011 and equal to the fourth highest on record in US dollar terms. The first quarter 2017 settlement price is 43% higher than the previous quarter.

Chief executive Julian Treger said: “The recent hard coking contract price settlements are materially above the levels we have seen in the past years and significantly higher than our previous assumptions. This should markedly improve our income and dividend cover next year.

“Anglo Pacific has royalties over the sales of coking coal at the Kestrel mine in Australia where the majority of production is expected to be within the Group’s private royalty land during the next twelve months. In addition, the weakness of the pound post Brexit should also improve our income figures in the first half of next year.”

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Anglo American (LON:AAL) has announced the value of rough diamond sales for De Beers’s tenth sales cycle of 2016, amounting to $418 million, compared with the $476 million value of the ninth sales cycle.

De Beers chief executive Bruce Cleaver said: “We continued to see good demand for De Beers rough diamonds in our latest sales cycle. While the trade in lower value rough diamonds is experiencing a temporary slowdown as a result of the demonetisation programme in India, demand across the rest of the product mix continued to be healthy and overall sales remained in line with seasonal expectations. Pleasingly, sales were also significantly higher than those for the equivalent cycle in 2015.”

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KAZ Minerals (LON:KAZ) has reached agreement on a new $300 million credit facility with the Development Bank of Kazakhstan JSC which is scheduled to be signed on 14 December.

The DBK facility will finance the completion of the Aktogay project which began commissioning of its main sulphide concentrator on 6 December.

The facility is expected to be fully drawn before the year-end and extends for a term of 8.5 years until final maturity in June 2025.

The loan is repayable in instalments with the first repayment due in June 2018, followed by semi-annual repayments in May and November of each year from 2019 until 2024 and a final repayment in June 2025.

The facility bears an interest rate of US dollar LIBOR +4.50% and contains a financial covenant which is the same as the group’s loan facilities with the China Development Bank, based on a ratio of total liabilities to total assets, with adjustments to mitigate the translation impact of movements in the US dollar/tenge exchange rate.

The group also announces that an increased commitment by ING Bank in the pre-export finance facility has been agreed for an additional $50 million under the accordion feature.

The additional commitment is expected to be drawn before the year-end. The total amount outstanding under the PXF as at 31 December 2016, including the additional drawing, is expected to be approximately $283 million.

As previously announced, the Group intends to resume discussions with the PXF bank syndicate over a longer-term refinancing of the facility, after release of its 2016 financial statements. Following the previously announced waiver obtained from the PXF lenders, the Group has also received a waiver from Caterpillar Financial Services (UK) Limited in relation to testing of the Net Debt to EBITDA covenant on 31 December 2016 under the $50 million CAT facility.

Chief financial officer Andrew Southam said: “We are pleased to have secured a new, long-term facility of $300 million from the Development Bank of Kazakhstan and to have increased ING Bank NV’s participation in the PXF facility by $50 million, ahead of a planned refinancing in the first half of 2017. These transactions demonstrate the Group’s ability to access diversified sources of finance and the strong support KAZ Minerals enjoys from its lenders.”

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Tertiary Minerals (LON:TYM) has reduced its FY pretax loss to £473,506, from a year-ago loss of £674,991.

Revenue was £190,124, from £181,598.

“Against a backdrop of very tough market conditions for fluorspar I am pleased to report continued progress on our core fluorspar projects,” said managing director Richard Clemmey.

“Receiving the Mining Permit for the Storuman project was a significant achievement for the Company and whilst the delays in processing the appeals is frustrating we remain positive that the original decision will be upheld.

“We continue to work through the MB project modelling, test work and economic evaluation, a process which takes time in order to systematically address the challenges and opportunities associated with the project.

“Following successful completion of this work we are targeting the completion of a Scoping Study in the first half of 2017.

“Maintaining the interest in our two non-core gold projects has finally paid off and the sale of these assets potentially provides the Company with future cash-flow through a retained royalty interest.”

At 4:23pm:

(LON:AAL) Anglo American PLC share price was -30.5p at 1179.5p

(LON:APF) Anglo Pacific Group PLC share price was -0.87p at 121.63p

(LON:BEM) Beowulf Mining PLC share price was +0.25p at 5.25p

(LON:BKY) Berkeley Energia Ltd share price was +0.25p at 47.25p

(LON:CEY) Centamin PLC share price was -3.15p at 127.35p

(LON:CZA) Coal of Africa Ltd share price was +0.01p at 3.51p

(LON:FDI) Firestone Diamonds PLC share price was +0.5p at 56p

(LON:FRES) Fresnillo PLC share price was -2.5p at 1142.5p

(LON:GEMD) Gem Diamonds Ltd share price was +1.25p at 107p

(LON:HOC) Hochschild Mining PLC share price was -0.95p at 239.25p

(LON:KAZ) Kaz Minerals PLC share price was -25.1p at 388.6p

(LON:KMR) Kenmare Resources PLC share price was +3p at 253p

(LON:SGZ) Scotgold Resources Ltd share price was +0.05p at 0.53p

(LON:VED) Vedanta Resources PLC share price was -26.25p at 936.75p

Story provided by StockMarketWire.com

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