Tag Archives: metals and mining

Trump boosts copper, companies in Central Asia benefit

NOV. 25 2016 (The Conway Bulletin) — Copper prices have gained around 12% to a 16-month high of $2.67/lb, since the election of Donald Trump as US president-elect, showing the power of his words.

Trump’s plan to invest $1 trillion in overhauling ageing infrastructure across the United States gave a boost to the global market price of copper, a key element for large construction projects.

Companies in Central Asia that focus on copper production, chiefly Central Asia Metals and KAZ Minerals in Kazakhstan, also benefited from the Trump effect on copper prices.

Both companies saw their share prices soar in the London Stock Exchange by around 20 – 25% in the past two weeks, a sign that the commodity slump could timidly start to reverse.

Central Asia Metals seized the opportunity to acquire a new deposit in Kazakhstan this week, which showed just how bullish the market has become.

Zak Mir, an analyst for the Proactive Investor website, said that Central Asia Metals’ stock price, which is already at its historical high, is on track to reach 240p/share within the next few months. This would be almost double this year’s low of 124p/share.

It’s been a roller coaster year for commodity companies in the region and this doesn’t look like changing.

Despite the uncertainty, the metals market might well reverse their downward trend before oil prices start growing again, marking an important split between the two sectors.

The Central Asian and South Caucasus region has been badly hit by the fall in commodity prices in the last two years. Any sign of recovery is good news.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

White Cliff progresses in Kyrgyzstan mine

NOV. 22 2016 (The Conway Bulletin) — Australian miner White Cliff said it had successfully drilled new holes in the quartz zone of its Aucu mine in Kyrgyzstan, recovering high grade ores that yielded significant gold and copper volumes. White Cliff owns a 89% stake in Aucu, which is located 350km west of Bishkek.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Kazakhstan-based Central Asia Metals expands

NOV. 22 2016 (The Conway Bulletin) — London-listed copper producer Central Asia Metals said it bought an 80% interest in a copper exploration property in northern Kazakhstan. The company said that it paid local company GRK-Aksu around $1m for the stake and has pledged to invest another $1m in the deposit in 2017.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Georgian Mining raises $3.2m to develop Kvemo Bolnisi

TBILISI, NOV. 16 2016, (The Conway Bulletin) — London-listed Georgian Mining Corporation said it raised £2.6m ($3.2m) in a new share offering designed to finance the development of its Kvemo Bolnisi copper and gold mine in the south of Georgia.

Last month, Georgian Mining changed its name from Noricum Gold to reflect the geographic focus of its operations.

After the restructuring and consolidation of ordinary shares, the fresh share issue represents 40% of the total issued shares and will dilute ownership in the company.

Before the placing, businessmen Michael Johnson (6.1%), Martyn Churchouse (5.4%) and Fahad Al- Tamimi (4.9%) were the three largest shareholders.

The company said the new cash will fund development of the Kvemo Bolnisi mine, in which it owns a 50% stake.

“This raise is a significant endorsement of our approach to commence production at low cost and for a minimum capex requirement,” director Greg Kuenzel said in a statement.

Georgia’s Caucasian Mining Group, owned by Russian entrepreneur Dmitri Troitsky, is Georgian Mining’s partner at Kvemo Bolnisi.

Georgian Mining bought its 50% share in Kvemo Bolnisi in July 2015 from GMC Investment for £2.6m ($3.2m). The company started drilling in June, in line with its forecasts. Reserves at the Bolnisi project include 980,000 tonnes of copper, 6.6m ounces of gold and 22m ounces of silver.

ENDS

(News report from Issue No. 305, published on Nov. 18 2016)

Stock market: Centerra Gold

NOV. 11 2016 (The Conway Bulletin) — Encouraging production results at Kyrgyzstan’s largest gold mine, Kumtor, supported Centerra Gold shares in Toronto, although they were weighed down by a fall in the price of gold.

The company said that because a court in Bishkek has restricted its access to cash held by its Kumtor gold mine, it could not pay a quarterly dividend and may have to seek a cash injection to continue operations. It didn’t give any more details of this but it would be a departure from previous policy.

The spat with the Kyrgyz government, which has become increasingly heated in the past two years, seems to be constantly on the verge of breaking point.

In general, though, Centerra’s share price has followed the price of gold. However, should news from Kyrgyzstan continue to be negative, Centerra’s stock price might start diverging from this pattern.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Kyrgyzstan-based Centerra increases profit but still can’t access Kumtor’s cashpile

BISHKEK, NOV. 7 2016 (The Conway Bulletin) — Canadian mining company Centerra Gold, owner of the Kumtor mine in Kyrgyzstan, reported a profitable Q3 for the first time in five years because it had cut costs and processed higher grade, and more valuable, gold but said it is still unable to access cash held in the company’s bank account.

Also, in the first nine months of 2016 the company turned a profit of $87.9m, compared to $44.5m in the same period last year. Centerra also revised upwards by 7% its yearly production guidance to 520,000 – 560,000 ounces. This is important because Kumtor is the single biggest economic asset in Kyrgyzstan, delivering around 10% of its total GDP.

But Centerra, which is 32% owned by the Kyrgyz government, also said that Bishkek’s Supreme Court rejected its appeal in October against a freeze of Kumtor’s bank account. Importantly, the Supreme Court’s decision came just one day after Centerra finalised the buyout of Canada’s Thompson Creek, which Kyrgyz lawmakers had fiercely opposed.

A Bishkek Court has frozen Kumtor’s bank accounts since June because of an unpaid environmental fine. Centerra has said the fine is politically motivated. The two sides have been locked in a row over ownership of the Kumtor gold mine.

CEO Scott Perry said the ongoing spat meant Centerra could not pay a dividend this quarter and hinted it may have to raise external finance.

“Absent access to cash held by KGC (Kumtor), the Company expects that it will be required to raise financing in order to fund construction and development expenditures on its development properties or to defer such expenditures,” he said in Centerra’s statement. The Kyrgyz government has not commented.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Tajik President opens new steel plant

NOV. 5 2016 (The Conway Bulletin) — Tajik President Emomali Rakhmon inaugurated a new steel plant in the city of Hisor, in western Tajikistan. The plant, which cost 250m somoni ($31.8m) to build, will produce between 100,000 and 200,000 tonnes of steel and other metals. Faroz, a construction company, will be the plant’s main customer.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Kazakh government approves uranium bank

NOV. 2 2016 (The Conway Bulletin) — Kazakhstan’s Parliament approved a law to establish an International Atomic Energy Agency-sponsored low-enriched uranium fuel bank in the country. For years, Kazakhstan lobbied the Agency to establish a nuclear fuel bank in its territory, as a testimony of the country’s efforts to combat nuclear proliferation. Kazakhstan is the world’s largest producer of uranium.

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(News report from Issue No. 303, published on Nov. 4 2016)

KAZ Minerals posts strong Q3

OCT. 28 2016 (The Conway Bulletin) — Kazakhstan-focused copper miner KAZ Minerals posted a strong Q3 operational report, more than tripling production compared to the same period last year, mainly due to the coming online of the Aktogay and Bozshakol projects.

ENDS

(News report from Issue No. 303, published on Nov. 4 2016)

Anglo-Asian improves efficiency in Azerbaijan

NOV. 3 2016 (The Conway Bulletin) — Azerbaijan-focused Anglo Asian Mining said it had improved cost- efficiency at its gold mining operations in Gedabek, a gold, copper and silver mine in the west of the country. The company has cut per-ounce expenditure to $703 in H1 2016 from $925 in H1 2015.

ENDS

(News report from Issue No. 303, published on Nov. 4 2016)