Anglo American Potential Bidding War; Gold Resource Q1 Results; US Acts Against Aluminum Dumping And More: Friday's Top Mining Stories

1. Anglo American rejected BHP Group's BHP $39B bid, triggering a potential bidding war with Glencore GLCNF. 

Glencore’s interest arises amid BHP’s revised approach to divest South African assets. 

Anglo holds crucial copper reserves in Chile and Peru, with Glencore's stake in Collahuasi adding intrigue. 

However, Glencore’s $6.9 billion Teck coal acquisition and political and regulatory complexities in South Africa heighten the situation, including upcoming national elections, complicate the matter. 

BHP faces a May 22 deadline for a new bid.

2. Gold Resource GORO reported Q1 results from its Don David Gold Mine in Oaxaca, Mexico, and provided a corporate update. 

Key achievements included the production and sale of 3,557 ounces of gold, 216,535 ounces of silver and significant amounts of zinc, copper and lead. 

The company holds $5.7 million in cash with no debt and $13.6 million in working capital as of March 31, 2024. 

Challenges such as reduced plant throughput and lower recoveries were managed, and base metal prices were below expectations. 

A net loss of $4 million or 5 cents per share was recorded for the quarter, after expenses related to exploration and drilling. 

The total cash cost per gold equivalent ounce was $1,667, and the all-in sustaining cost was $2,295.

Also Read: Barrick Gold’s Golden Cross Opportunity — Analyst Sees ‘Ample Opportunity For Catch Up’ Post Q1

3. The U.S. Department of Commerce announced preliminary findings that aluminum extrusion producers from 14 countries, including China, India and Italy, sold products in the U.S. at less-than-fair value. 

The U.S. Aluminum Extruders Coalition and various unions support the imposition of duties to protect U.S. producers and workers. 

These measures are crucial to counteract the widespread dumping practices harming U.S. industry, with ongoing efforts to ensure accurate final determinations of dumping margins.

Bonnell Aluminum, a subsidiary of Tredegar TG, was pleased with the ruling to institute preliminary dumping duties on unfairly traded imports of aluminum extrusions.

4. Nexa Resources NEXA reported a quarterly loss of 15 cents per share, marking a 1400% increase in losses from the previous year. 

Despite this, their $580 million in quarterly sales exceeded expectations by 1.76% but showed a 13.08% decline from the prior year. 

The company also faced two fatal incidents at its El Porvenir and Vazante mines. 

Amid challenges like weak market conditions and fluctuating commodity prices, Nexa continued advancing key projects such as the Aripuanã ramp-up and the Cerro Pasco Integration Project, leading to a 59% increase in Mineral Reserves at the complex and a 10% year-over-year increase in overall Mineral Reserves, totaling 110 million tons.

Now Read: EXCLUSIVE: Why This Uranium Bull Market Is Different — ‘We’ve Really Got To Start Developing Mines,’ Says Madison Metals CEO

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