Metals & Mining Monitor | Metals Prices Surged After Russia Sanction; BHP/RIO/VALE Reported Q1 Production

Moomoo News Canada wrote a column · Apr 23, 2024 20:32

Metals & Mining Monitor | Metals Prices Surged After Russia Sanction; BHP/RIO/VALE Reported Q1 Production

Hello mooers! Check out the latest market dynamics of the metals and mining industry over the past week.
• Base metals: Copper and aluminum continued to climb
• Precious metals: Gold slightly down; Silver dropped 2.5%
• Bulk commodity: Thermal coal rose by 3.6%

Spot Price Snapshot

Key Price Moves

On April 13, the LME announced that it would not allow Russian metal produced after that date to be stored in its warehouses. This decision affects three key metals, with Russia being responsible for 6% of the world's aluminium, 4% of copper, and 11% of high purity nickel metal, according to Citigroup.

$Aluminum Futures(APR5) (ALImain.US)$ experienced its largest intraday gain on last Monday since at least 1987, surging by as much as 9.4%. Over the course of last week, the spot price increased by approximately 5.3%, reaching $2654/t.

$Copper Futures(MAR5) (HGmain.US)$ is approaching $10,000 a tonne after an April rally, which was fuelled by speculation that a recovering global economy will boost demand for industrial materials. The spot price rose by 4.5% last week to $9815/t.

Nickel, a crucial component in electric vehicle batteries and steelmaking, rose by 6.5% last week, reaching a seven-month high on Friday. The increase was driven not only by the Russian sanctions but also by market talks that Chinese firms are planning to purchase the metal for state stockpiles, as well as concerns about tighter supplies from top exporter Indonesia.

Top Company News

BHP Achieves Higher Copper Production in Q1

$BHP Group Ltd (BHP.AU)$ announced that it is set to meet its production guidance for financial 2024. The company reported a 10% increase in total copper production in Q1, while total iron ore production declined by 1% to 190 million tonnes. However, BHP maintained its guidance for total iron ore production between 254 million and 264.5 million tonnes for financial 2024 and achieved an average realised price of $US104.54 per tonne.

Rio Tinto's Iron Ore Production and Shipments See a Dip in Q1

During the first quarter, $Rio Tinto Ltd (RIO.AU)$ 's iron ore production was 2% lower compared to the same period in 2023, with the miner producing 77.9 million tonnes. The decrease was primarily due to planned ore depletion at the Yandicoogina minesite. Meanwhile, shipments amounted to 78 million tonnes, which is 5% lower than Q1 2023. The company attributed the lower volumes to weather disruptions at the ports that led to a lower stock draw-down than the previous year, as well as reduced production at the mines. Despite the dip, Rio Tinto's production guidance for all operations remained unchanged.

Vale Achieves Strong Q1 Production Growth

$Vale SA (VALE.US)$, a Brazilian mining company, reported a 15% year-over-year increase in iron ore sales for Q1 of 2024. This growth was primarily due to the strong performance at their S11D mine and various operational improvements. Copper production also saw a significant increase of 22%, thanks to the ramp-up at Salobo 3 and consistent results from Salobo 1 & 2. However, nickel production slightly decreased as a result of furnace rebuilds. Overall, Vale S.A. has achieved impressive production growth in the first quarter.

CESCO Predicts Increased Copper Output at Codelco in Chile This Year

According to the head of Chilean copper studies center CESCO, Chile's state-run copper miner Codelco is expected to improve its production this year and begin to recover from its lowest levels in a quarter century. Codelco aims to produce between 1.325 million and 1.390 million metric tons of copper this year, which could potentially surpass its 2023 output of 1.325 million metric tons. Jorge Cantallopts, the head of CESCO, stated that this goal is achievable, and added that Chile, as the world's top producer of copper, is well-positioned to meet the demand for this important metal.

Barrick Gold Reports Decline in Q1 Gold and Copper Production

$Barrick Gold (GOLD.US)$ announced on last Tuesday that its gold and copper production declined in the first quarter due to lower grades and maintenance at its mines. The company reported a preliminary output of 940,000 ounces of gold and 40,000 tonnes of copper for the quarter ending March 31, which represents a decrease from the previous quarter's output of 1.05 million ounces of gold and 113 million pounds of copper.

Cleveland-Cliffs Reports Q1 Adjusted Earnings, Revenue Decreases

$Cleveland-Cliffs (CLF.US)$ announced that it swung to Q1 adjusted earnings of $0.18 per diluted share from a loss of $0.11 per share in the same period last year. However, the reported earnings fell short of the $0.21 per share expected by analysts polled by Capital IQ. The company's revenue for the quarter ended March 31 was $5.20 billion, which is a decrease from the $5.30 billion a year earlier. Analysts surveyed by Capital IQ had expected the revenue to be $5.33 billion. Cleveland-Cliffs also shared that its board has authorized a new share repurchase program, which will allow the company to buy back up to $1.5 billion of its outstanding common shares.

Pilbara Minerals Records AU$192 Million Revenue in Fiscal Q3

$Pilbara Minerals Ltd (PLS.AU)$ reported a revenue of AU$192 million in the fiscal third quarter, which ended in March. According to the filing, the company produced 179,000 dry metric tonnes of spodumene concentrates and sold 165,100 dry metric tonnes of spodumene concentrates at a realized price of $804 per tonne.