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Banks in China, the UAE, and Turkey have boosted sanctions compliance leading to Russian oil firms facing months of delays in receiving payments, Reuters reported on March 27.
In some cases, money transfers to Moscow have been rejected entirely, several sources familiar with the matter told the outlet.
The U.S. in December introduced secondary sanctions to target foreign financial institutions that support Russia’s war effort, even if they do so unknowingly.
As a result, banks have begun demanding written guarantees from clients ensuring that payments will not benefit any person or entity named on Washington's Specially Designated Nationals (SDNs) List.
Kremlin spokesperson Dmitry Peskov acknowledged the payment problems when questioned by Reuters during a press conference call.
“Of course, unprecedented pressure from the U.S. and the EU on the People's Republic of China continues,” he said.
After the launch of the full-scale invasion of Ukraine, the EU and G7 countries imposed a $60-per-barrel price cap.
In addition to the imposition of the price cap, the U.S. and its allies applied a number of other measures in an attempt to force compliance, such as "cutting off access to Western services like shipping and insurance unless traders abided by the $60 limit."
Russia managed to ship out much of its crude above $60 by using a "ghost fleet" of mostly uninsured tankers, with the Financial Times reporting on Nov. 14 that the vast majority of Russian oil had been selling above the price cap.
The U.S. in December imposed secondary sanctions to try and curb Russian crude oil sales.
https://kyivindependent.com/reuters-russia-facing-delays-in-oil-payments-from-china-turkey-and-uae/
The current low-carbon transition plans of 10 of Europe’s and North America’s biggest listed oil and gas companies are not good enough to assess the risks involved, the world’s leading investor climate action group said on Wednesday.
Climate Action 100+ said the companies including Exxon Mobil XOM-N, Shell SHEL-N and Chevron CVX-N were assessed using its sector-specific Net Zero Standard for Oil & Gas framework by the independent Transition Pathway Initiative (TPI) Centre.
The other companies included in the analysis were TotalEnergies TTE-N, ConocoPhillips COP-N, BP BP-N, Occidental Petroleum OXY-N, Eni, Repsol and Suncor Energy SU-T.
Each was assessed using indicators and sub-indicators under three broad themes – Disclosure, where companies are rewarded for providing information about their activities; Alignment, which tests their climate ambition; and Climate Solutions, which tracks their investments in greener activities.
The aim of the Net Zero Standard for Oil & Gas (NZS) framework is to allow to assess to what degree the disclosures and strategies of companies in the sector are aligned with the Paris Agreement on climate.
Overall, the companies met just 19 per cent of all the NZS metrics. European companies performed the best, led by TotalEnergies, BP and Eni, with North American companies weaker across all three themes.
Shell and ConocoPhillips declined to comment on the findings. The other companies did not immediately reply or were not immediately able to comment on the report.
While several companies are targeting net-zero emissions by 2050, a lack of detail on their planned use of carbon capture technology meant it was hard to tell how they would get there, CA100+ said.
On the issue of fossil fuel production, which the International Energy Agency says will need to be reined in to hit the world’s climate goals – a move acknowledged at the COP28 climate talks in Dubai in November – few firms appeared to concur.
Among disclosure sub-indicators, none of the companies acknowledged the “need for substantial production reduction across the industry.” Of the 10, only Repsol and TotalEnergies guided on long-term oil, gas or their combined production.
None of the companies provided the desired detail on their planned greenfield capital expenditure plans, the report added.
“The inaugural assessment of the Net Zero Standard for Oil and Gas delivers a clear message: while certain companies showcase commendable strides towards robust climate strategy, the overall industry landscape remains alarmingly underprepared for the transition,” said Jared Sharp, Project Lead for Net Zero Standards, TPI Centre.
The hope is that the analysis will be able to help inform engagement by asset managers with the boards of the companies, as the season for annual general meetings picks up pace in the weeks ahead, Sharp said.
Energy trader Vitol boosted its liquefied natural gas (LNG) volumes in 2023 on the back of higher demand in Europe.
Vitol said in its full-year report that its natural gas and LNG volumes grew by 19 percent and 24 percent respectively, but it did not reveal the quantities.
In 2022, Vitol’s traded LNG volumes increased to about 17.6 million tonnes of oil equivalent, or some 14 million tonnes of LNG, as the company’s portfolio responded to increased demand from Europe.
This means that Vitol’s LNG volumes in 2023 reached some 17.3 million tonnes of LNG.
The Geneva-based firm, which entered the LNG market in 2006, reported LNG volumes of 12.9 million tonnes in 2021, 10 million tonnes in 2020, and 10.5 million tonnes in 2019.
In 2023, Vitol’s turnover was $400 billion, down from $505 billion in 2022, while the company delivered 546 million tonnes of oil equivalent, up 4 percent on 2022 an increase largely driven by increases in gas and LNG volumes, it said.
Vitol’s crude oil and product volumes fell 1.6 percent to 349 million tonnes or 7.3 mbpd with a 10 percent decline in crude volumes.
European demand
“In gas, 120 bcm per annum of Russian pipeline gas which used to flow to Europe has, to date, been replaced by an additional 62 bcmpa LNG and significant demand destruction,” Vitol’s CEO Russell Hardy said in the report.
“Flows of LNG to Europe in 2023 were equivalent to half the global LNG market volume as recently as 2010, illustrating the rapid evolution of this market,” he said.
Vitol has a global LNG portfolio with long-term LNG supply from North America, Africa, Middle East, and Asia, and charters a fleet of LNG carriers.
The company recently signed a long-term deal to buy natural gas from US oil and gas producer EOG.
It also signed a deal with India’s GAIL to deliver 1 mtpa of LNG to the latter for a period of about 10 years starting in 2026.
https://lngprime.com/europe/vitols-2023-lng-volumes-rise-on-european-demand/108433/
Key Takeaway
- Exxon Mobil (XOM) and Occidental Petroleum (OXY) lead the bullish 'golden cross' pattern in the energy sector, signaling potential upside.
- Exxon's shares could gain over 9% with a current 50-DMA of 104.58 nearing its 200-DMA of 106.27; year-to-date up by ~14%.
- Genuine Parts Company (GPC), also approaching a golden cross, shows more modest growth expectations despite a >10% rise year-to-date.
Golden Cross Signals Bullish Momentum
The technical analysis community is abuzz as three S&P 500 stocks approach a "golden cross" pattern, a bullish indicator where a stock's 50-day moving average (DMA) crosses over its 200-day moving average. This pattern is seen as a sign of positive momentum continuing into the longer term. Notably, two of these stocks are from the energy sector, which has been the best-performing sector in March, surging over 8%. The stocks in question are Exxon Mobil Corporation, with a 50-DMA of 104.58 nearing its 200-DMA of 106.27, and Occidental Petroleum Corporation, with a 50-DMA of 59.65 close to its 200-DMA of 60.94. Genuine Parts Company also approaches a golden cross, with its 50-DMA at 146.61 and its 200-DMA at 147.18.
Energy Sector Leads the Charge
The energy sector's performance is particularly noteworthy, with Exxon Mobil up nearly 9% month-to-date, contributing to its year-to-date gain of approximately 14%. This surge comes amid a dispute with Chevron over assets in oil-rich Guyana, highlighting the competitive dynamics within the sector. Occidental Petroleum, although lagging the sector's overall performance with a near 5% gain in March, still shows a 6% increase in 2024. These movements underscore the sector's robustness, driven by rising oil and natural gas prices, with West Texas Intermediate (WTI) light crude oil up 15% year-to-date.
Analysts' Perspectives and Market Outlook
Despite the rally, analysts' reactions have been mixed. Exxon Mobil enjoys a favorable outlook, with more than half of analysts covering the stock issuing a buy or a strong buy rating, and a consensus price target suggesting over 9% upside potential. In contrast, Occidental Petroleum sees a more cautious stance from analysts, with two-thirds rating it a hold and a modest 4% upside potential indicated. Genuine Parts Company faces skepticism, trading just above its average price target, with eight out of 13 analysts recommending a hold.
https://super.news/en/articles/2024/03/27/energy-giants-signal-bull-run-exxon-leads-with-9-upside
Recently, oil prices have risen by over 1% at the beginning of the week, starting trading today, Wednesday, at $80.74 per barrel, after finding some technical support at the pivotal level of $80.73.
Prices may further increase due to supply and demand factors. Russia faces challenges due to sanctions and drone attacks from Ukraine on Russian refineries and storage facilities.
On the demand side, expectations of the Federal Reserve cutting interest rates three times this year, along with rate cuts in Europe, could stimulate the global economy, thus increasing oil demand.
Although the Fed has clearly announced its intention to cut interest rates three times this year, markets seem unconvinced of these expectations.
This week, the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, is scheduled for Friday, and an increase in inflation could cause chaos in markets preparing for another extension of production cuts from Saudi Arabia.
Recent data shows no upward trend in oil production, which has decreased to 13.1 million barrels per day in recent weeks after reaching a record level of 13.3 million in February.
From my perspective, this negativity from producers is seen as a signal for oil price increases, as economic stimulus in China and the healthy economy in India, both countries with the largest impact on demand, continue. Meanwhile, supply remains constrained by OPEC+ quotas.
However, oil price increases may be modest and slow until prices exceed $90. The oil’s ability to rise could attract the attention of markets and central bank governors alike, due to its potential impact on future monetary policy through consumer price figures at the end of this week.
Geopolitical challenges have escalated as Ukraine has increased drone strikes against Russian oil refineries, leading to an estimated halt of around 900,000 barrels per day of its production capacity. I believe the impact of these disruptions on crude oil prices is likely to be mixed, coinciding with a decrease in Chinese demand and a potential reduction in Russian oil exports.
Additionally, the Red Sea crisis has led to a buildup of 100 million barrels of oil in international waters, as shipping companies reroute trade flows to avoid attacks by Yemeni Houthis. This has contributed to an increase in crude oil prices by up to $4 per barrel due to larger-than-expected draws from commercial inventories.
In the end, attention will remain focused on US economic data and its impact on monetary policy, thereby affecting the movement of the dollar and, consequently, potentially controlling the entire market. Geopolitical challenges are equally important as other fundamental factors, as any progress in ceasefire talks in Gaza could calm the prevailing market fears, while uncertainty and declining risk appetite among investors could lead to market fluctuations.
https://londonlovesbusiness.com/oil-price-risk-appetite-declines-as-geopolitical-challenges-ignite/
The transaction is expected to be finalized in the second quarter of 2024, pending regulatory approvals and customary closing conditions
Pipeline leader Enbridge Inc. has entered into a partnership agreement to establish a joint venture aimed at facilitating the connection of Permian Basin natural gas to liquefied natural gas (LNG) export terminals along the U.S. Gulf Coast. In collaboration with global investment manager I Squared Capital and U.S.-based pipeline firms WhiteWater and MPLX LP, the Calgary-based company unveiled its plans on Tuesday. The newly formed joint venture will undertake the development, construction, ownership, and operation of natural gas pipelines and storage assets with the objective of linking the Permian—aa significant oil-and-gas field situated in western Texas and southeast New Mexico—tto the burgeoning LNG market and growing demand on the U.S. Gulf Coast.
As part of the agreement, Enbridge will contribute its proposed Rio Bravo pipeline project to the joint venture, along with US$350 million in cash. Additionally, Enbridge will fund the initial US$150 million of post-closing capital spending required to finalize the Rio Bravo project. The joint venture will also assume ownership of the Whistler pipeline, operational since 2021, which runs from the Permian Basin to Agua Dulce, Texas. Furthermore, it will hold a 70 percent interest in the ADCC intra-state pipeline to Corpus Christi, Texas, and a 50 percent stake in the Waha gas storage facilities.
https://thesiliconreview.com/2024/03/enbridge-permian-basin-u-s--gulf-coast
German nationalised energy company SEFE will take full ownership of gas transmission network WIGA by buying out joint venture partner Wintershall Dea in the latest sign of Berlin tightening its grip on energy infrastructure, reports Reuters.
The deal, through which SEFE will acquire the 50.2% stake it does not already own in WIGA, is being funded by the company, it said, after Germany asked Brussels to lift an acquisition ban imposed as part of the group's bailout in 2022.
The transaction still needs to be approved by the EU Commission, SEFE said.
The parties have agreed not to disclose the purchase price for the stake in WIGA, which operates 4150 km (2578 miles) of gas grids that link Europe's top economy to five neighbouring states. Wintershall Dea has said that WIGA's net regulated asset base – a valuation measure for energy grids – was about €3 billion (US$3.3 billion).
"SEFE being the sole shareholder of WIGA would ensure that (gas pipeline operator) GASCADE can convert the existing high-performance infrastructure to hydrogen in the future," SEFE Chief Executive Egbert Laege said in a statement.
"Transportation infrastructure is a pivotal part of the future hydrogen value chain."
WIGA is a holding company for onshore pipelines Opal, Eugal and NEL, which are connected to the former arrival points of Russian gas via the Nord Stream 1 pipeline – defunct since an explosion in 2022 – at Lubmin on the German Baltic Sea.
The planned deal, which is expected to close by summer, comes as Germany increases its control over energy assets to safeguard national security after Russia's invasion of Ukraine.
Like larger rival Uniper, SEFE, formerly Gazprom Germania, was rescued by Berlin during the continent's 2022 energy crisis via a €6.3 billion capital injection to ensure security of supply.
It later bought a stake in EnBW's, high-voltage power grid TransnetBW and is currently in talks to acquire the German division of Dutch grid company TenneT.
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
World Pipelines’ March 2024 issue
The March 2024 issue of World Pipelines includes a keynote article on building cyber resilience into midstream assets, along with technical articles on pipeline rehabilitation, pig design, flexible pipe systems, NDT, and pipeline integrity. It also features our annual Heavy Equipment Focus, along with some insight on trends in hydrogen pipelines.
POSCO International (KRX: 047050), the trading and resources arm of South Korea’s POSCO Holdings, is gearing up for substantial investments in the energy sector, eyeing growth opportunities in the carbon capture, utilization, and storage (CCUS) and hydrogen sectors.
On Monday, POSCO International disclosed its intention to diversify into CCUS and hydrogen-related activities, aiming to carve out a niche in sustainable energy solutions.
In a recent financial regulatory filing, the company has added CCUS and production, storage and transportation of hydrogen and hydrogen compounds to its business purposes, as reported by the Korea Economic Daily.
CCUS technologies, which involve capturing and safely storing carbon dioxide (CO2) underground, hold promise in mitigating climate change impacts.
Having already embarked on commercializing carbon capture and storage (CCS), POSCO International, in collaboration with partners like Repsol (BME: REP) and Petroleum Sarawak, has secured projects in regions like Texas (USA) and Malaysia.
Relevant: South Korea To Disclose Emissions Every Year, Support CO2 Capture Technology
In the hydrogen sector, the South Korean company signed a strategic cooperation agreement with the Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE) in January, announcing their first joint project already in February.
POSCO International has committed $745 million to further expanding its energy business in 2024, positioning it to become the company’s third growth engine after steel and electric vehicle battery material.
This investment includes tripling the natural gas production capacity of its subsidiary Senex Energy, a venture initiated in 2022 through acquiring a majority stake.
Additionally, in the midstream sector, POSCO International is set to finalize the expansion of an energy tank in South Korea to accommodate 200,000 tons of natural gas by June 2024.
The company also plans to start construction on motor core plants in Poland and Mexico, aiming to bolster its production capacity for electric vehicle components to 7 million units by 2030.
https://carbonherald.com/south-koreas-posco-intl-eyes-investments-in-ccus-hydrogen-in-2024/
Aspiring junior has announced it will raise $10 million in order to finalise preparations at its Mahenge graphite project in Tanzania, prior to its final investment decision release.
Under the placement, the -led company will issue approximately 154 million shares at an offer price of 6.5 cents per share, with all placement shares expected to be allocated by April 4.
"We have several key de-risking milestones due near term and this $10 million placement should provide the company with sufficient cash reserves to complete loan and contract documentation ahead of FID - as well as working towards consummating a deal in the partner process in which we are aiming to sell a stake in the project at a premium as a less dilutive pathway to cashflow," said.
"With all our key approvals now in place for US$153 million in debt facilities for Mahenge, we are also expecting to receive confirmation of (strategic alliance partner) POSCO’s approvals near term for its equity investment in Black Rock of up to US$40 million.”
The West Perth-based company has remained committed to Mahenge, of which it has an 84 per cent stake in, for several years.
Back in 2019, it released a definitive feasibility study for the site, located 300km south-west of the capital Dar es Salaam, and ensured all relevant approvals and licences had been secured.
A year later, it also secured a deal with South Korea-based POSCO, a major steel manufacturing company, which included both equity investment and offtake agreement components.
During its recent quarterly update to the market, Black Rock said it had $5.2 million cash in the till up to December 31 2023.
Black Rock shares were down 16 per cent as of 10.09am AWST, trading at 6.9 cents per share.
https://www.businessnews.com.au/article/Black-Rock-taps-investors-for-10m
Wind capacity additions worldwide surged 36% in 2023 compared to 2022, reaching a record high of 118 GW, according to data from BloombergNEF (BNEF), released today.
The higher installations were driven by a boom in China, while new additions elsewhere increased only 8% compared to 2022, the research provider said. “There are signs that growth will accelerate, though. A surge in US turbine orders shows the early impact of the new subsidies in the country’s Inflation Reduction Act, while a boom in project approvals in countries like Germany suggests that Europe’s permitting reform is working,” added Oliver Metcalfe, head of wind research at BloombergNEF.
The top five for wind turbine makers was dominated by Chinese manufacturers. Xinjiang Goldwind Science & Technology (SHE:002202) retained the top spot with 16.4 GW of projects commissioned last year. Envision Energy rose to second place with 15.4 GW, while Denmark’s Vestas Wind Systems A/S (CPH:VWS) ranked third with 13.4 GW. Windey and Mingyang rounded off the top five. US turbine maker GE, which was third in 2022, dropped to sixth place in 2023 amid a slowdown in its home market.
“It’s no surprise that Chinese turbine makers dominate the top five in our ranking, as buildout of gigawatt-scale wind projects and an end to pandemic restrictions sent installations soaring last year,” said Cristian Dinca, wind analyst at BloombergNEF and lead author of its 2023 Global Wind Turbine Market Shares report.
While Chinese players still rely heavily on their domestic market, they are also growing their footprint in foreign markets. Chinese firms commissioned 1.7 GW of wind projects in 20 markets overseas last year, including five EU countries. According to BNEF, Chinese-made wind turbines supplied outside mainland China are 20% cheaper than those of US and European manufacturers.
Of the overall wind additions last year, 90% were onshore and 11 GW was offshore, of which 7.6 GW in China. Mingyang doubled its annual offshore installations to almost 3 GW to rank first in offshore wind in 2023.
In terms of markets, mainland China accounted for two thirds of global installations, distantly followed by the US, which added 7.2 GW. The EU countries built a record 15.3 GW, up 16% from 2022, while Brazil emerged as the largest Latin American market, doubling its additions to 5 GW.
Wood Mackenzie said recently that wind turbine orders globally reached a new record of 155 GW in 2023
Drought stress is the primary abiotic factor affecting wheat growth, development, and yield formation. The application of plant growth-promoting rhizobacteria (PGPR) represents an environmentally sustainable approach to mitigate the impacts of drought stress on wheat. This study conducted field experiments using two winter wheat varieties, the drought-sensitive variety Jimai 22 and the drought-resistant variety Chang 6878, aiming to investigate the effects of Streptomyces pactum Act12 inoculation on photosynthetic characteristics, physiological parameters, and yield traits during the jointing, heading, and middle-filling stages under drought stress. The results revealed that drought stresses significantly reduced chlorophyll content, leaf area, biomass, and yield in wheat, while Act12 inoculation significantly increased chlorophyll content, photosynthetic efficiency, antioxidant enzyme activity such as superoxide dismutase (SOD) and peroxidase (POD), osmolyte content (proline and soluble proteins), and decreased malondialdehyde (MDA) content. These combined effects alleviated drought stress, resulting in increased biomass and yield in wheat. Under drought stress, an increase in leaf proline content of 13.53% to 53.23% (Jimai 22) and 17.17% to 43.08% (Chang 6878) was observed upon Act12 inoculation. Moreover, a decrease in MDA content was recorded of 15.86% to 53.61% (Jimai 22) and 13.47% to 26.21% (Chang 6878). Notably, there was a corresponding increase in yield of 11.78% (Jimai 22) and 13.55% (Chang 6878). In addition, grain quality analysis revealed a significant improvement in grain hardness with Act12 inoculation. Therefore, Act12 demonstrates the potential for enhancing the sustainable development of wheat production in arid and semi-arid regions.
DRDGOLD is to run the rule over copper tailings resources in South Africa’s Northern Cape in a development that finally signals its intention to act on long-held organic growth ambitions.
The tailings are owned by Copper 360 which said in an announcement on Wednesday the tailings may contain 50 to 60 million tons of dump material with grades of between 0.18% and 1.5% copper, equal to 450,000 tons of copper metal in situ.
“Our expertise and focus is not tailings treatment although we recognise the potential of the copper dumps,” said Jan Nelson, CEO of Copper 360.
“It is therefore logical that we have approached the world leader in dump retreatment to see if a potential partnership could be negotiated to potentially bring these assets to account if the due diligence is viable.”
If the due diligence proves economic DRDGOLD, through its Far West Gold Recoveries subsidiary, will acquire a 50% stake in the dumps and become the operator. The dumps include the O’Okiep, Carolusberg, Lower and Upper NamaCopper copper tailings dams. DRDGold has a year to complete the due diligence.
Niel Pretorius, CEO of DRDGold said the group had decided to look wider than gold for growth. But he stressed the due diligence was a first, tentative step. “The best way to describe this is that, in the tailings business, it is exploration. If it is attractive we will put it to the board and perhaps take it to the next level,” Pretorius said.
Copper was a logical step for a gold producer as articulated by much larger gold companies such as Barrick Gold, said Pretorius. “It’s relatively small and we are only dipping our toes into the shallow water before committing. But it is also an opportunity to establish grounds for a second business.”
DRDGOLD is 50.1% owned by Sibanye-Stillwater which has suggested in the past that the DRDGOLD could be a vehicle for gold sector consolidation in the tailings business both in South Africa and internationally.
In 2023, Sibanye-Stillwater CEO Neal Froneman said DRDGOLD was due a rebrand in an allusion to the firm’s ambitions. But opportunities have been stymied.
Legal complexities regarding ownership by joint venture parties have prevented DRDGold from mining platinum group metal tailings owned by Sibanye-Stillwater while uranium resources west of Johannesburg may be sold in terms of plans laid out by Sibanye-Stillwater earlier in March.
https://www.miningmx.com/top-story/56460-drdgold-to-weigh-tailings-jv-with-copper-360/
Copper retreated from the highs as the market will likely want to retest the previous resistance now turned support before continuing higher. On the fundamental side, not much has changed as the central banks are still intentioned to deliver the first rate cuts with the PBoC maintaining its dovish language. The recent economic data has been showing resilient growth and the leading indicators started to turn higher as the expectations of rate cuts boosted economic sentiment. As long as the current theme remains in place, we can expect the market to trend higher.
Copper Technical Analysis – Daily Timeframe
On the daily chart, we can see that Copper is now near a key support zone around the 3.98 level where we can find the confluence of the trendline, the 50% Fibonacci retracement level and the red 21 moving average. This is where we can expect the buyers to step in with a defined risk below the trendline to position for a rally into new highs. The sellers, on the other hand, will want to see the price breaking lower to invalidate the bullish setup and increase the bearish bets into the 3.70 level.
Copper Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more closely the bullish setup around the support zone where the buyers will look for a bounce and the sellers for a break. If we do get a bounce, the sellers will likely lean on the downward trendline where they can position for a break below the major trendline with a better risk to reward setup. The buyers, on the other hand, will want to see the price breaking above the downward trendline to increase the bullish bets into new highs.
Upcoming Events
Today we have Fed’s Waller speaking where the market will want to see if he sounds hawkish after the recent economic data. Tomorrow, we get the latest US Jobless Claims figures, while on Friday we conclude with the US PCE and Fed Chair Powell. Weak data is likely to weigh on Copper, while strong figures should give it a boost.
https://www.forexlive.com/technical-analysis/copper-technical-analysis-20240327/
Vancouver, Canada --News Direct-- Liberty Star Uranium & Metals Corp
Liberty Star Minerals Chief Geologist James Bryce joined Steve Darling from Proactive to share news regarding the drilling progress on the Hay Mountain property. Bryce outlined details about two holes drilled so far.
Hole HM-117 was drilled at the center of the magnetic high and over the conductor identified by the ZTEM survey. The initial depth to bedrock on the drilling pad was 108', after which the drill encountered limestones of the Morita formation. The presence of Morita at this elevation suggested a faulting event, with a vertical offset of over 800'. To further investigate, the company decided to deepen the hole by an additional 500' and extend the overall program by 1000.
Bryce also told Proactive hole HM-001 was located 0.6 miles east of hole HM-117. This hole was collared on Colina limestone outcrop displaying polymetallic leakage textures at the surface, indicating elevated levels of lead, zinc, molybdenum, and sometimes copper.
Despite the collar of this hole being at a similar elevation as hole HM-117, it allowed the company to begin drilling approximately 1350' deeper into the stratigraphy compared to hole HM-117. At a depth of 420', the drill encountered the Horquilla Formation, known to host many copper deposits in the region. As the hole approached 1500', the company decided to deepen it by 1000' due to increasing alteration, the presence of minor sulfides, and extensive carbonate vein stockworks.
Despite budget limitations, the project has successfully de-risked, laying groundwork for future exploration. Bryce anticipates refining the drill program with a larger budget based on results. These updates provide valuable insights into Liberty Star's exploration efforts and the geological features encountered during drilling on the Hay Mountain property.
Contact Details
Proactive North America
+1 604-688-8158
NA-editorial@proactiveinvestors.com
View source version on newsdirect.com: https://newsdirect.com/news/liberty-star-minerals-chief-geologist-shares-thoughts-on-drilling-at-hay-mountain-513743200
https://finance.yahoo.com/news/liberty-star-minerals-chief-geologist-145001031.html
Freeport-McMoRan Inc. (FCX) carries CFRA’s highest investment recommendation of 5-STARS, or “Strong Buy.” It is one of the world’s largest copper producers and a major producer of gold and molybdenum, notes Matthew Miller, analyst at CFRA Research.
FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits, and significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.
In North America, FCX operates seven copper mines: Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona, and Chino and Tyrone in New Mexico. FCX also operates two molybdenum mines in Colorado: Henderson and Climax. In South America, FCX operates two copper mines: Cerro Verde in Peru and El Abra in Chile. FCX produced 4.2 billion pounds of copper in 2023, in line with 2022.
In 2024, we anticipate copper production to remain flat again at around 4.2 billion pounds. But gold production is poised to increase by around 17% and molybdenum should rise by around 5%. As of the end of 2023, the Indonesian smelter project was more than 90% complete and capital expenditures related to the project are poised to fall to $1 billion in 2024 (down from $1.7 billion in 2023).
We think FCX offers the best leverage to a copper bull market, as every $0.10 per pound increase in the price of copper adds around $430 million to annual EBITDA and $340 million to annual cash flow. In 2023, adjusted EBITDA was $8.3 billion and cash flow from operations was $5.3 billion.
Our Strong Buy opinion is driven by our bullish view on the copper market, FCX’s history of solid execution on growth projects, its top-tier (and geographically diverse) copper reserves, and our outlook for stable copper production at 4.1 billion to 4.3 billion pounds annually through 2026.
We expect the copper market to remain strong, given copper’s role in technological innovations, as well as the limited ability of the industry to increase supply. More than 70% of copper is consumed for applications that deliver electricity. Copper is also a critical ingredient to decarbonization.
Hybrid and electric vehicles use 2x-4x more copper than vehicles with internal combustion engines. Renewable energy technologies (wind and solar) use 4x-6x more copper than fossil fuel power generation.
Our 12-month target price of $51 assumes FCX will trade at an EV/EBITDA multiple of 7.5x our 2024 EBITDA estimate, above its three-year average forward EV/EBITDA of 6.6x. We forecast a strong copper bull market to be a positive catalyst.
Copper prices retreated to a two-week low on Wednesday as investors awaited further detail on plans by Chinese smelters to cut production.
Three-month copper HG1! on the London Metal Exchange (LME) was down 0.1% at $8,853.5 a metric ton as of 1705 GMT. It dipped to $8,776 earlier in the session for its lowest since March 13.
LME copper soared to an 11-month high of $9,164.50 on March 18 after top Chinese smelters announced plans for joint production cuts but did not provide detail of the extent or timing of any suspensions.
"The copper rally after Chinese smelters' plans to cut was slightly overbought," said Dan Smith, head of research at Amalgamated Metal Trading.
The smelters will have another meeting on Thursday March 28 on plans to bring forward maintenances and reduce loss-making capacity in the face of a shortage of copper concentrates, industry sources said.
Adding to the uncertainty about smelter cuts, a state-backed research house said copper output from China was expected to grow by 3% this year.
Also dampening enthusiasm among speculators was a strong seasonal build-up of copper inventory in China.
The discount on the LME cash copper contract against the three-month contract remained close to a record high, signalling expectations of rising supply. (MCU0-3)
Copper was not far from its fair value, still supported by strong long-term fundamentals, raising the prospect of further upside this year, Smith added, citing data showing higher Chinese industrial profits.
"Funds are coming back to commodities as a general idea, which always kind of helps. Prices and volumes of gold and bitcoin nearing record highs are general signs of more money around looking for opportunities," he added.
Among other metals, three-month zinc ZNC1! hit its lowest price in nearly four weeks as weak steel demand weighed on the market.
Zinc, mainly used for galvanising steel, was down 1% at $2,440 a ton after touching $2,409 for its weakest since March 1.
Aluminium ALI1! declined 0.2% to $2,298 a ton, nickel NICKEL1! edged down 0.1% to $16,620, lead LEAD1! lost 0.7% to $2,006 and tin FTIN1! was up 0.3% at $27,535.
Avrupa Minerals CEO Paul Kuhn joined Steve Darling from Proactive to provide an overview of the company's ambitious plans for 2024, highlighting significant progress made in deposit definition work at the Sesmarias copper-zinc-lead Project in Portugal during 2023.
Avrupa Minerals is now gearing up for an aggressive drilling program in the SES Central Zone , which is set to commence soon. The success of this drilling phase will play a crucial role in determining the company's path towards applying for a mining license, which is anticipated to occur in the first half of 2025.
Additionally, Kuhn discussed the company's project in Kosovo . The project is located in the Vihanti-Pyhäsalmi VMS District in Central Finland and comprises two exploration permits covering known massive sulfide deposits (Kangasjärvi and Hallaperä), an application over a massive sulfide deposit (Rauhala), and an exploration permit covering a massive sulfide target (Kolima).
While awaiting the issuance of the Kolima permit, the joint venture is conducting basic exploration work, reviewing historic core and geophysical data, and modeling SkyTEM data from the Kangasjärvi license. These efforts have identified an outstanding un-drilled target near the old Kangasjärvi Mine, and plans are in place for drilling at this target in 2024. Additionally, there are other SkyTEM anomalies that may warrant drilling following planned exploration activities during the upcoming field season.
Overall, Avrupa Minerals is focused on advancing its projects in Portugal and Kosovo through aggressive exploration and drilling programs, with the aim of delineating significant mineral resources and ultimately advancing towards mining license applications.
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India’s steel trade deficit has come down to ₹10,411 crore ($1,258 million) for the April–February period, down 10 per cent sequentially, on the back of improving exports, and stable imports during February, a report of the Steel Ministry, accessed by businessline show.
Trade deficit was ₹11,564 crore in the April–January period of the fiscal.
Import of finished steel stood at 7.6 million tonnes (mt), and was valued at ₹63,432 crore ($7,663 million) while exports were at 6.6 mt and valued at ₹53,021 crore ($6,405 million). India was a net importer, with shipments coming-in exceeding outbound shipments by nearly 1 mt.
Imports increased 29 per cent YoY and remained at January levels (with no significant increase) for February at 0.8 mt. Exports, on the other hand, increased by 78 per cent YoY and by 21 per cent sequentially in February to over 1 mt, the Ministry report said.
“Volume-wise hot rolled coil / strip – at 3.4 mt – was the most imported item accounting for 45 per cent share (with China being the largest seller), accounting for 2.5 mt of the shipments coming in,” the report mentioned.
Hot rolled coils and strips were the highest exported item accounting for 2.6 mt or nearly 39 per cent of the volumes. Flat product exports increased by 16 per cent YoY to 5.9 mt, while non-flat products saw a 7 per cent YoY decline to 0.7 mt.
Europe – a key buyer
According to the Ministry report, Italy, Spain and Belgium were the three top buyers; and Europe accounted for 45 per cent of the exports from India.
Shipments to Italy — the largest market — stood at 1.5 mt, up 85 per cent YoY. Exports in the year-ago-period were 0.8 mt and valued at $1,228 million, up 43 per cent, YoY.
Exports to Belgium increased 37 per cent YoY to 0.8 mt or $646 million, up 6 per cent. Shipments made past year was 0.53 mt, the report mentioned.
The other big buyer, Spain, saw an over 100 per cent increase in exports to 0.63 mt for April–February period, which was at 0.3 mt in the same period last fiscal. Exports were valued at $527 million, up 65 per cent YoY.
Other European buyers were France, Germany and Greece, and shipments stood at around 29,000 tonnes, 31,300 tonnes and 42,400 tonnes, respectively, the report showed.
Other major buyers were Nepal and UAE, where exports stood at 0.6 mt, up 14 per cent ($340 million) and 0.5 mt, down 28 per cent ($442 million), respectively.
Cleveland-Cliffs Inc. (NYSE: CLF) today announced that it is increasing current spot market base prices by $60 per net ton for all carbon hot rolled, cold rolled and coated steel products, effective immediately with all new orders. Cliffs’ minimum base price for hot rolled steel is now $900 per net ton.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240326611492/en/
Posted on 27 Mar 2024
Taiwan's Feng Hsin holds rebar, scrap prices
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to roll over its rebar list prices and procurement prices for local scrap over March 25-29 to monitor the market changes, according to a local market source.
For business discussions till this Friday, the mini-mill continues to offer its 13mm dia rebar at TWD 19,200/tonne ($602/t) EXW, the same level from the previous week, and its buying price for local HMS 1&2 80:20 scrap also stays unchanged on week at TWD 10,700/t, the market source said.
Prices of global scrap delivered to Taiwan reversed up as expected, with the price of US-sourced HMS 1&2 80:20 scrap reaching $355/t CFR Taiwan as of March 25, gaining by $5/t on week and ending the continuous fall over the prior two months, while the price of Japan-origin H2 scrap was reported at $365/t CFR Taiwan, higher by $5/t compared with the previous week, Mysteel Global learned.
However, mini-mills in Taiwan are in no hurry to hike their rebar list prices accordingly this week, as they prefer to hold the prices at the current level to monitor the market changes in near term.
As for the steel market in mainland China, prices of finished steel recovered somewhat thanks to the improved market sentiment and better demand from downstream users, Mysteel Global noted.
As of March 25, China's national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 3,718/tonne ($515/t) including the 13% VAT, higher by Yuan 52/t on week.
Over March 18-25, the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 trading houses nationwide under Mysteel's regular survey averaged 154,355 tonnes/day, jumping by 26.4% on week.
Source:Mysteel Global
On Wednesday, the iron ore contract on the Dalian Commodity Exchange for May delivery extended the prior day's loss of 3.7% to record another sharp fall of 3.5%.
Previously, the contract just ended a sustained decline to strengthen for six consecutive trading days, while such a rebound only reflected a minor restoration in sentiment rather than the actual improvement in market fundamentals, as reported.
Consequently, the rather slow revival in domestic steel consumption again concerned many market pundits, especially when the robust season for steel use in China was already over halfway through, Mysteel Global noted.
Although there has been an on-month increase in steel demand, it remains below the levels seen during the same period last year, according to a senior ferrous analyst in Shanghai. She also predicted limited room for further rises in steel demand in the coming weeks.
Mysteel's tracking revealed a steady climb in apparent consumption of rebar post the Chinese New Year holiday, but it only reached a low level of 2.46 million tonnes/week over March 14-20, contrasting with the 3.1 million tonnes/week during the same period in 2023.
Fundamentally, the ongoing downturn in China's property market, evidenced by the expanded slump in newly-launched property projects, continued to suppress steel demand this year, Mysteel Global understands.
On the other hand, the performance of the infrastructure industry, which significantly supported domestic steel demand last year, has been less impressive so far this year as Beijing curbed local government's spending on investing projects to handle their debt burdens.
"This year, our steel products experienced poor sales due to the delayed construction progress at local water conservancy projects caused by a shortage of funds," a raw material procurement official from a steelmaker in Central China's Henan told Mysteel Global. The official also said that the large losses his mills suffered also led them to reduce steel production.
Actually, this has been a common situation among steelmakers nationwide, Mysteel Global noted. Only about 23% of the 247 Chinese steelmakers Mysteel regularly checks earned some money in steel sales on March 21, a drastic drop compared to 59% a year earlier.
As a result, Mysteel predicted that the hot metal production among the same 247 mills will average 2.25-2.26 million tonnes/day in April - far below the average level of 2.45 million t/d during the same month last year despite the mild recovery from the current output of 2.21 million t/d.
Chinese steel mills' production enthusiasm will continue to be suppressed, as steel demand will stay tepid under the central government's determination in the resolution of local government debt risks, the ferrous analyst agreed and in turn held bearish views on near-term iron ore prices.
Written by Lea Li, liye@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
Mongolian Mining Full Year 2023 Results
Key Financial Results
- Revenue: US$1.03b (up 89% from FY 2022).
- Net income: US$239.7m (up 305% from FY 2022).
- Profit margin: 23% (up from 11% in FY 2022). The increase in margin was driven by higher revenue.
- EPS: US$0.22 (up from US$0.057 in FY 2022).
Mongolian Mining shares are up 13% from a week ago.
