News Archive

Maverix to buy Newmont royalties portfolio

Newmont will gain a 28% stake in Maverix, plus warrants for an additional 10 million common shares.

The portfolio of 54 royalties, which includes a 1% NSR royalty on TMAC Resources’ Hope Bay mine in Canada, will add to Maverix’s existing 27 royalties and streams.

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Nevada Copper re-stocked, reloaded

Nevada Copper re-stocked, reloaded

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Kin lays the foundations for Growth

Kin lays the foundations for Growth

Maverix has estimated a cash flow of C$6-8 million (US$4.6-$6.2 million) in 2019 from the predominantly gold royalty portfolio, with the potential to increase to more than $20 million (US$15 million) annually.

Under a planned shareholder agreement, Newmont will be entitled to a seat on Maverix’s board and have the right to maintain its ownership stake in future financings.

Newmont becomes the third globally recognised miner to become a shareholder, Maverix president and CEO Dan O’Flaherty pointed out.

Pan American Silver and Gold Fields will hold 26% and 20% of Maverix respectively once the transaction closes, which is expected this quarter.

Maverix last month reported revenue of C$19.5 million (US$15 million) for 2017 in its first full year of operation and had forecast an increase to $26-30 million (US$20-$23 million) for 2018, due to an expected 40-50% increase in attributable gold-equivalent production.

Newmont strategic development executive vice president Randy Engel said the strategic partnership and equity interest generated value for both companies’ shareholders.

Newmont’s shares closed down 1.29% but are up 3.76% year-to-date, valuing it at US$20.77 billion.

Maverix shares rose 13.79% but are down 10.8% so far this year, capitalising it at C$254.2 million.

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Facebook’s size no barrier to deals in new areas: executive

RANCHO PALOS VERDES, Calif. (Reuters) – Facebook Inc believes it could acquire other large companies without running afoul of antitrust enforcers if the world’s largest social media network chose to enter a new market, Chief Operating Officer Sheryl Sandberg said on Tuesday.

FILE PHOTO: Facebook’s Chief Operating Officer Sheryl Sandberg arrives to watch CEO Mark Zuckerberg speak at Facebook Inc’s annual F8 developers conference in San Jose, California, U.S. May 1, 2018. REUTERS/Stephen Lam

Sandberg was asked on stage by a journalist at the Code Conference whether Facebook, because of its size, would be allowed in the future to buy companies as it has such as virtual reality firm Oculus and messaging service WhatsApp.

“It really depends what it is. If it was in something that wasn’t core to what we were doing and a new area, like Oculus was, I think it would probably be allowed,” Sandberg said.

She gave no indication that a deal was forthcoming.

Facebook, one of the largest corporations by market capitalization, has grown in part through acquisitions. In 2014 it bought WhatsApp for $22 billion and Oculus for $3 billion, but has not made a similar purchase since. It bought Instagram for $1 billion in 2012.

EU regulators have expressed concern about a plan by Facebook and WhatsApp to begin sharing users’ phone numbers and other data.

Sandberg said sharing data between the two services had benefits, such as catching people who exploit children, and that Facebook should not be broken up.

“If you are doing child-exploitative content, WhatsApp’s encrypted, but we know who you are from Facebook. We can take your account down on WhatsApp, too,” she said.

Reporting by David Ingram; Editing by Stephen Coates

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Stocks take battering as Italian crisis roils financial markets

TOKYO (Reuters) – Asian stocks extended a global sell-off on Wednesday as Italy’s political crisis rippled across financial markets, toppling the euro to a 10-month low, pushing up Italian borrowing costs and sending investors rushing to safe-haven assets such as U.S. Treasuries.

FILE PHOTO: The podium where Carlo Cottarelli was waited to talk with reporters, after a meeting with Italian President Sergio Mattarella, is seen at the Quirinal palace in Rome, Italy, May 29, 2018. REUTERS/Alessandro Bianchi/File Photo

MSCI’s broadest index of Asia-Pacific shares outside Japan tumbled 1.5 percent, while Japan’s Nikkei average sold off as much 1.9 percent to hit a six-week low. Chinese shares also headed south, with the Shanghai Composite index down 1.8 percent, South Korea’s KOSPI and Australia’s SP/ASX 200 slipped 2.0 percent and 0.6 percent, respectively.

The sharp downturn followed from an equally harsh session on Wall Street on Tuesday, where the Dow Jones Industrial Average fell 1.6 percent, the SP 500 lost 1.2 percent and the Nasdaq Composite dropped 0.5 percent. The financial sector took a hard hit.

Investors fear that repeat elections in the euro zone’s third-largest economy – which could come as soon as July – may become a de-facto referendum on Italian membership of the currency bloc and the country’s role in the European Union.

“The way Italy’s short-term debt yields are spiking makes you think default risk is on radar in the market. It tells how grave the situation is,” said Makoto Noji, senior strategist at SMBC Nikko Securities.

“What the markets are starting to factor-in is not a default per se but an early election leading to a victory of eurosceptics and an exit from the euro.”

Short-dated Italian bond yields – a sensitive gauge of political risk – soared 1.5 percentage points from Monday to their highest since 2013 in their biggest move in nearly 26 years.

Tradeweb Markets LLC reported average trading volume in the debt is up by more than 60 percent in May compared to the month prior.

Safe-haven U.S. Treasury bonds and German bunds rallied, as did the Japanese yen, the U.S. dollar and gold. The euro fell against the Swiss franc, Japanese yen and U.S. dollar, nearing $1.15 and touching its lowest point since July.

FILE PHOTO – Men exchange greetings in front of an electronic board displaying the Nikkei average outside a brokerage in Tokyo, Japan January 4, 2018. REUTERS/Kim Kyung-Hoon

In Asia, the focus was also on the on-again, off-again U.S.-North Korean summit and the U.S.-China trade relationship.

A top North Korean official was headed to New York on Tuesday for talks with U.S. Secretary of State Mike Pompeo, the latest indication that the summit between President Donald Trump and North Korean leader Kim Jong Un may go ahead next month.

Trump confirmed in a tweet that Kim Yong Chol, a former spy chief and trusted adviser to North Korea’s leader, was on his way for what would be the highest-level meeting in this week’s flurry of diplomatic activity aimed at salvaging the historic summit.

U.S.-China trade tensions also added to the somber mood in markets.

The United States said on Tuesday that it would continue pursuing actions on trade with China, prompting Chinese state media to slam the U.S. announcement.

Emerging market stocks lost 1.2 percent, marking a new low point for the year, under continued pressure from a rising U.S. dollar for countries that often borrow in that currency.

“It’s not surprising that investors fled fragile emerging markets and southern Europe and sought safety in cash,” said Yasuo Sakuma, chief investment officer at Libra Investments.

Oil struggled under pressure from expectations that Saudi Arabia and Russia would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as U.S. output has surged in recent years.

U.S. crude futures retreated 0.4 percent to $66.46 per barrel, extended falls after declining for five consecutive sessions.

Reporting by Tomo Uetake; Additional reporting by Hideyuki Sano; Editing by Richard Pullin, Sam Holmes Shri Navaratnam

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"This … PEA presents exceptional project economics"

The PEA set out an after-tax NPV (7% discount) of US$338.3 million, an IRR of 50.8%, a payback period of 1.72 years, with an initial capex of $116.76 million including a 25% contingency.

It outlined a 13.5-year mine life producing an average 9.65 million pounds of vanadium pentoxide at an all-in sustaining cost of $6.28/lb and estimated an average selling price of $12.73/lb.

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Monday’s V2O5 price was $14.20/lb, the company said.

“This comprehensive 249-page PEA presents exceptional project economics and positions Gibellini as the most important vanadium mineral deposit in North America in terms of project viability and time to market,” executive chairman John Lee said.

He anticipated a streamlined environmental review process after vanadium was named a critical mineral by the US Geological Survey in December. 

Coupled with the fact Prophecy had filed its plan of operations earlier this month, Lee said the company was on “firm footing to deliver the first primary vanadium producing mine in North America” that would exceed customer requirements for applications from traditional re-enforcement bars to grid-scale batteries and use in the aerospace industry.

The company said it had received unsolicited expressions of interest from various potential investment sources, and was engaged in discussions with potential cornerstone investors, off-takers and banks on potential equity, debt and prepaid off-take financing possibilities.

Propehcy is preparing to tender engineering, procurement, construction management contracts and said it was fine-tuning metallurgy, process design and engineering with its technology partner China’s Northwest Nonferrous Metals Mining Group.

The company had C$1.5 million in working capital at the end of March and believed it had sufficient capital to meet its cash needs for the next 12 months.

Its shares rose 4.93% yesterday to C$2.98, capitalising it around $22.3 million.

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China’s state media slam U.S. trade announcement, say Beijing ready to fight

SHANGHAI/BEIJING (Reuters) – China’s state media on Wednesday lashed into a U.S. announcement that it would press ahead with restrictions on investment by Chinese companies, saying Beijing was ready to fight back if Washington was looking to ignite a trade war.

Chinese and U.S. flags are set up for a signing ceremony during a visit by U.S. Secretary of Transportation Elaine Chao at China’s Ministry of Transport in Beijing, China April 27, 2018. REUTERS/Jason Lee

The United States said on Tuesday that it still held the threat of imposing tariffs on $50 billion of imports from China and would use it unless Beijing addressed the issue of theft of American intellectual property.

The declaration by the White House came after the two sides had agreed earlier this month to look at steps to narrow China’s $375 billion trade surplus with America, and days ahead of a visit to the Chinese capital by U.S. Commerce Secretary Wilbur Ross for further talks.

China commerce’s ministry reacted swiftly overnight with a short statement, saying it was surprised and saw it as contrary to the consensus both sides had reached recently.

Chinese tabloid the Global Times said the United States was suffering from a “delusion” and warned that the “trade renege could leave Washington dancing with itself”.

The widely read Global Times is run by the ruling Communist Party’s official People’s Daily, although its stance does not necessarily reflect Chinese government policy.

“The Chinese government will have the necessary measures in place to deal with a U.S. withdrawal from any settled agreement. If the U.S. wants to play games, then China would be more than willing to play along and do so until the very end,” it said.

Fears of a trade war between the world’s two biggest economies had also receded after the Trump administration said it had reached a deal that would put ZTE Corp back in business after banning China’s second-biggest telecoms equipment maker from buying U.S. technology parts.

Still hanging in the balance, however, is San Diego-based Qualcomm Inc’s proposal to acquire NXP Semiconductors NV – a $44 billion deal that requires clearance from China’s antitrust regulators.

State news agency Xinhua said China hoped that the United States would not act impulsively but stood ready to fight to protect its own interests.

Chinese and U.S. flags are set up for a meeting during a visit by U.S. Secretary of Transportation Elaine Chao at China’s Ministry of Transport in Beijing, China April 27, 2018. REUTERS/Jason Lee

“China’s attitude, as always, is: we do not want to fight, but we are also not afraid to fight,” it said in a commentary.

“China will continue to hold pragmatic consultations with the United States’ delegation and hope that the United States will act in accordance with the spirit of the joint statement,” it said.

Commerce Secretary Ross is scheduled to visit Beijing from June 2 to June 4 to try and get China to agree to firm numbers for additional U.S. exports to the country.


The deal to reduce China’s trade surplus with the U.S. was separate from the U.S. probe into China’s alleged theft of intellectual property.

A White House official said on Tuesday that the U.S. government plans to shorten the length of visas issued to some Chinese citizens as part of a strategy to prevent intellectual property theft by U.S. rivals.

Citing a document issued by the Trump administration in December, the official said the U.S. government would consider restrictions on visas for science and technology students from some countries to ensure “intellectual property is not transferred to our competitors.”

The China Daily newspaper said the repeated U.S. claim that China had forced foreign firms to transfer their technologies to Chinese businesses was without evidence and was being used as an excuse to facilitate its trade protectionism.

It said technology transfers between U.S. companies and their Chinese partners were the result of normal business practices, not coercive policies.

Reporting by Brenda Goh in SHANGHAI and Ryan Woo and BEIJING; Editing by Kim Coghill

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Ecuador exploration partners release further high-grade results

An intercept of 7.08m at 3.92% copper, 3.32g/t gold, 5.9% zinc, 154.9g/t silver and 0.74% zinc was among the highlights.

Adventus is earning 75% in the 22,000ha Curipamba project from Salazar.

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The pair have also set up an Ecuador exploration alliance (Adventus 80%; Salazar 20%) for zinc-related projects, starting with the Pijilí project in March and the Santiago project a week ago.

Adventus raised C$10 million (US$7.7 million) in December at 88c per share for its Ecuador exploration.

The company said last month the duo would not only advance evaluating El Domo’s development potential but also renew regional exploration at Curipamba. 

Drilling is continuing, to generate material for a planned metallurgical programme in the second half of the year and upgrade the confidence in the higher-grade portion of El Domo’s resource.

Adventus announced a 44% increase in El Domo’s indicated resource in January, to 8.8 million tonnes grading 1.62% copper, 2.34g/t gold, 2.42% zinc, 48g/t silver and 0.27% lead.

Adventus shares rose C6c yesterday to 80 but are down about 9% year-to-date, capitalising it at $45.5 million.

Salazar closed unchanged at 11.5c, down about 11.5% this year and valued at $13.2 million.

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Canada to buy Kinder Morgan oil pipeline in bid to save project

OTTAWA/WINNIPEG (Reuters) – Canada will buy Kinder Morgan Canada Ltd’s (KML.TO) Trans Mountain pipeline for C$4.5 billion ($3.5 billion), the government said on Tuesday, hoping to save a project that faces formidable political and environmental opposition.

Steel pipe to be used in the oil pipeline construction of Kinder Morgan Canada’s Trans Mountain Expansion Project sit on rail cars at a stockpile site in Kamloops, British Columbia, Canada May 29, 2018. REUTERS/Dennis Owen

Finance Minister Bill Morneau said purchasing the pipeline was the only way to ensure that a planned expansion could proceed. The pipeline, running from the oil sands of Alberta to a port in the Pacific province of British Columbia, would allow Canadian crude to gain greater access to foreign markets and higher prices.

Kinder Morgan Canada gave Ottawa until May 31 to come up with reassurances it could press ahead with plans to more than double the capacity of the existing pipeline amid efforts by British Columbia to block construction.

The company also faced opposition from environmentalists and aboriginal groups who worried about the pipeline spilling its tar-like heavy oil.

“When we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action,” Morneau told reporters.

He said the pipeline purchase provided the federal jurisdiction needed to overcome British Columbia’s opposition, but gave no details of how this would work.

The federal government can in theory step in and disallow any provincial laws that British Columbia might use to block the pipeline, but this provision in the Canadian constitution has not been used since the 1940s.

Ottawa could also deploy the police and troops to maintain a barrier between protesters and construction workers.

Although Ottawa has taken stakes in struggling energy projects, Tuesday’s announcement marked the first time Ottawa has bought an entire pipeline. It does not intend to own the project for long.

“There is a very strong business case for this pipeline,” Prime Minister Justin Trudeau told Bloomberg Television, saying the government takeover meant “a lot of the legal barriers and a lot of the challenge points actually disappear”.

Slideshow (3 Images)

Kinder Morgan Canada shares initially jumped as much as 8.5 percent before ending down 3 percent, while the broader Canada share index fell 0.6 percent.

The move drew immediate criticism from both sides of the political spectrum, and could hurt Trudeau’s popularity in the key British Columbia battleground in a 2019 federal election.

The decision represents “a massive, unnecessary financial burden on Canadian taxpayers,” Canadian Taxpayers Federation Federal Director Aaron Wudrick said.

The government will also offer federal loan guarantees to ensure construction of the expansion continues through the 2018 season as part of the deal with the company, a unit of Houston-based Kinder Morgan Inc (KMI.N).

Morneau sidestepped questions about how Ottawa will deal with opposition from environmentalists and aboriginal groups, who cite the risk of a catastrophic spill.

“It’s a mess out there,” said a Calgary industry source not authorized to speak publicly. “Given it will be stuck in court for a while, I don’t think we will see this pipe built anytime soon.”

Morneau said more spending would be needed to complete the expansion, but gave no precise financial details, and stressed he felt the project should be returned to the private sector.

Canada’s oil sector has been stung in the past year as foreign energy companies retreated amid concerns about the environmental toll, high production costs and a risky regulatory regime.

“We have agreed to a fair price for our shareholders,” said Steve Kean, chief executive officer of Kinder Morgan Canada and Kinder Morgan Inc.


Kean did not say why he decided to sell rather than absorb the risk of further delays. Kinder Morgan Canada will continue to own the remaining assets, including crude storage, rail terminals and a condensate pipeline, and look to expand.

“I think the transaction is a win-win. It’s actually better for Kinder Morgan than it is for Canada. They are getting a very good value,” said Paul Bloom at Bloom Investment Counsel Inc, which owns about 300,000 shares in Kinder Morgan Canada.

The fact the federal government needed to buy Trans Mountain to ensure the project goes ahead does not bode well for the industry, said Chris Bloomer, CEO of the Canadian Energy Pipeline Association.

Trans Mountain stirred an unusual public fight between neighboring provinces. Alberta threatened to halt crude and fuel shipments to British Columbia, where consumers already pay high gasoline prices, and briefly halted imports of the coastal province’s wines.

Alberta will contribute up to C$2 billion toward unforeseen costs, payable once the project is complete, Premier Rachel Notley said. The contribution will convert into equity in the pipeline.

British Columbia Premier John Horgan said the province would push ahead with a court case to establish its right to restrict increased shipments of crude oil to its coastal waters.

Reporting by David Ljunggren in Ottawa and Rod Nickel in Winnipeg; Additional reporting Leah Schnurr in Toronto, Nicole Mordant in Vancouver and Nivedita Bhattacharjee in Bangalore; Writing by Andrea Hopkins, David Ljunggren and Rod Nickel; Editing by Denny Thomas, Jeffrey Benkoe and Lisa Shumaker

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HP Inc tops revenue estimates, raises forecast on PC demand

(Reuters) – HP Inc (HPQ.N) reported better-than-expected quarterly revenue and raised its full-year profit forecast on Tuesday, helped by strong demand for its notebooks and desktops.

FILE PHOTO – A Hewlett-Packard logo is seen at the company’s Executive Briefing Center in Palo Alto, California January 16, 2013. REUTERS/Stephen Lam/File Photo

The company also named Steve Fieler as its chief financial officer, succeeding 32-year HP veteran Cathie Lesjak.

Fieler, whose appointment is effective July 1, currently leads HP Inc’s treasury and corporate finance functions. Lesjak will step into the role of interim chief operating officer.

Shares of HP Inc, formed out of the 2015 split of Hewlett-Packard Co, were marginally up in extended trading.

The company raised its forecast for full-year adjusted profit to between $1.97 and $2.02 per share, from $1.90 to $2.00. Analysts on average were expecting $1.97, according to Thomson Reuters I/B/E/S.

HP Inc’s personal systems business, which includes notebooks and desktops and accounts for more than 60 percent of total revenue, rose 14.5 percent to $8.76 billion in the second quarter. Analysts on average had expected $8.28 billion.

The Palo Alto, California-based company had the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, according to research firm International Data Corp’s (IDC) data.

IDC analysts have said demand for premium notebooks in both the consumer and commercial segments have helped major PC vendors to retain better margins and garner buyer interest.

HP Inc, which completed the acquisition of Samsung Electronics Co’s (005930.KS) printer business last year, said revenue from its printing business rose 10.9 percent to $5.24 billion, above analysts’ estimate of $5.13 billion.

Net earnings jumped 89.3 percent to $1.06 billion, or 64 cents per share, in the quarter ended April 30, mostly helped by a one-time tax benefit of $975 million.

Excluding items, the company earned 48 cents per share, in line with Wall Street estimates.

Revenue rose 13.1 percent to $14 billion, above analysts’ average estimate of $13.57 billion.

Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel

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Rolls-Royce says tripling capacity to fix Trent 1000 engine problems

LONDON (Reuters) – Britain’s Rolls-Royce (RR.L) said on Tuesday it was tripling capacity to fix problems with its Trent 1000 engines that have left some of Boeing’s (BA.N) 787 Dreamliner planes grounded.

FILE PHOTO: A view of one of two Rolls Royce Trent 1000 engines on a Boeing 787 Dreamliner during a media tour ahead of the Singapore Airshow on February 12, 2012. REUTERS/Edgar Su/File Photo

Rolls-Royce will set out full details on how it intends to speed up necessary inspections and repairs on Wednesday, a spokesman for the engine manufacturer said, confirming a development first reported by the Financial Times.

Turbine blades in the Trent 1000 package C engines are not lasting as long as expected, requiring extra inspections and meaning airlines are having to ground some aircraft.

Air New Zealand and Virgin Atlantic are among the airlines affected.

Reporting by Sarah Young, writing by David Milliken, Editing by Robin Pomeroy

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