The latest Mining Indaba newsletter is bullish, noting the top performer recently among the African gold producers being Randgold Resources, “whose third-quarter profit jumped 55% on the back of higher metal prices and lower mining costs. The gold major appears on track to raise dividends with plans afoot to support three new projects within the next five years, should gold prices stay near the current levels. Also reaping the benefits of the stronger gold price is Kinross Gold, which reports better-than-expected third-quarter earnings and slightly higher production. The Canadian miner says development projects are advancing on schedule and that it is on track to meet production and cost guidance for the fifth year in a row.
“Xtract Resources secures new funding for working capital as it focuses solely on its Manica gold project in Mozambique, while Teranga Gold plans to raise A$65 million to develop its Banfora gold project, in Burkina Faso.”
Elsewhere, “Glencore reports a 25% increase in cobalt production in Q3 2016, but coal production is 11% down on the third quarter of last year, while DRDGold reports almost flat gold output in the September quarter.
“In other business news, Caledonia Mining remains on track to lift production amid earnings alert, with an expansion plan underway that could boost gold production. Wescoal, meanwhile, is looking for growth through acquisition as it sets an 8 Mt/y medium-term run-of-mine production target. Interestingly, coal companies like Wescoal and Resource Generation, which have tackled legacy issues, have enjoyed share prices gains of up to 300% since January. Elsewhere in Africa, partnerships, refinancing and funding feature high on the mining agenda. In Gabon, Metals of Africa partners with fellow-listed Zambezi Resources on the Kroussou zinc/lead project and, in West Africa, Sierra Rutile refinances its debt facilities through a package that includes repayment of a €23.5 million loan to the Sierra Leone government. In South Africa, Platinum Group Metals plans to use the $40 million proceeds from a public offering to ramp up production at its Maseve mine.
“Coal of Africa, which is planning to build a large mine at Makhado in the Soutpansberg, is evaluating the sustainability of the recent sensational rise in coking and thermal coal prices before taking an investment decision on Makhado and Vele, says CEO David Brown.”
Investing in African Mining Indaba®, February 6-9, 2017 in Cape Town, remains the preferred deal-making platform for mining in Africa. Over the past few years Mining Indaba says it “has been evolving to better meet the changing needs of the African mining community.”