Radius Recycling Reports Q2 Results; American Battery Awarded Another $40.5 Million; Nexa Prices $600 Million Offering And More: Thursday's Top Mining Stories

Top Stories for April 4, 2024:

1. Radius Recycling RDUS reported a fiscal second-quarter loss of $34 million (per-share loss of $1.19), adjusted EBITDA of $3 million and per-share loss of $1.04 from continuing operations. 

The company faced challenges in the quarter due to tight recycled metal supplies, adverse weather and low U.S. manufacturing activity. 

Ferrous sales dropped 15% quarter-over-quarter, nonferrous sales fell 3% but grew 7% year-over-year and finished steel sales rose 5% year-over-year but fell 11% quarter-over-quarter. 

The company initiated a plan to cut SG&A by 10% and improve production efficiency, aiming for $40 million in annual benefits and adding to a prior $30 million benefits plan.

2. American Battery Technology ABAT was granted an additional $40.5 million through the 48C program for a new battery recycling facility in the U.S., adding to an initial $20 million tax credit for a Nevada project. 

This award comes from a competitive process by the U.S. Department of Energy to support the company's efforts in low-cost, environmentally friendly lithium-ion battery recycling and the production of recycled battery materials. 

CEO Ryan Melsert mentioned extensive engagement with major automotive and battery manufacturers and plans for this new facility to increase domestic critical battery mineral manufacturing, leveraging the new government-supported investment.

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3. Nexa Resources NEXA priced a $600-million offering of 6.75% senior unsecured notes guaranteed by two subsidiaries due in 2034, aiming for an April 9, 2024, closing. 

The proceeds are mainly intended to fund a cash tender offer for existing notes due in 2027 and 2028, with any remainder for general corporate purposes. 

The sale is targeting qualified institutional buyers and non-U.S. persons.

4. Large investors are showing a predominantly bearish stance on Newmont NEM, as revealed by Benzinga’s tracking of public options activities, which detected unusual activity of nine notable transactions. 

The sentiment among these investors is mixed, with 44% bullish and 55% bearish. The trading involved two puts worth $250,920 and seven calls valued at $805,535, suggesting an expected price range for Newmont of $30 to $42.50 in the coming three months.

5. Deutsche Bank analyst Liam Fitzpatrick maintained Vale S.A. VALE with a Hold and lowered his price target from $18 to $16.

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