Jan 20, 2021

Tacora Resources completes acquisition of Sydvaranger Mining

Tacora
Norway
Acquisitions
Dominic Ellis
2 min
Acquisition provides US firm with a four-million-tonnes per year 'shovel-ready' expansion and geographical diversification in a Tier 1 jurisdiction
Acquisition provides US firm with a four-million-tonnes per year 'shovel-ready' expansion and geographical diversification in a Tier 1 jurisdiction...

Tacora Resources, the iron ore and mineral processing company based out of Grand Rapids, Minnesota, has bought Sydvaranger Mining and its subsidiaries, an iron ore mine and processing plant located in Sør-Varanger, Norway.

The parties have agreed not to disclose the purchase price, which is being paid in the form of shares in Tacora.

In a statement, Tacora said the acquisition provides it with a four-million-tonnes per year, 'shovel-ready' expansion opportunity and geographical diversification in a Tier 1 jurisdiction. 

Sydvaranger operated from 1910-1997, and then from 2009-2015 producing high grade iron ore concentrate, with an iron content of 68 percent, for pelletising operations.

Its high quality, low impurity, magnetite iron ore concentrate has significant environmental and cost benefits for steel producers and pelletizing operations, including increased blast furnace productivity, reduced slag volumes, lower CO2 emissions per tonne of steel produced and reduced energy requirements for pelletising, amongst others.

Thierry Martel, the President and CEO of Tacora will lead the expanded organisation. "With this acquisition, we bring together two responsible mining companies with capacity to produce an iron ore concentrate with characteristics very desirable to steelmakers. The Sydvaranger Mine builds upon our strategy to deliver high grade iron ore products to steelmakers globally allowing them to produce more steel per tonne of raw material input and therefore reduce their environmental footprint," he said.

The Tschudi Group, a Norwegian shipping and logistics company, has been involved with the Sydvaranger Mine since 2006. In 2016, the Tschudi Group re-acquired the Sydvaranger assets and has since focused its activities on completing a feasibility study and preparing for restarting the operations. 

The Tschudi Group, a Norwegian shipping and logistics company, has been involved with the Sydvaranger Mine since 2006. In 2016, the Tschudi Group re-acquired the Sydvaranger assets and has since focused its activities on completing a feasibility study and preparing for restarting the operations.

"We are pleased to welcome Tacora as the new owners of Sydvaranger. Since 2016, the Tschudi Group has sought to provide Sydvaranger with the financial and operational capabilities to enable a restart of the mining operations," adds Felix Tschudi, chairman and owner of the Tschudi Group. 

"By introducing Orion Mine Finance as a financial partner in 2018 and by now combining Sydvaranger with the operationally experienced Tacora team, we believe Sydvaranger is in an excellent position to succeed with a restart. 

"The Tschudi Group will remain strong supporters of the Sydvaranger Mine and continue its considerable presence in Kirkenes and the Troms og Finnmark county more broadly through its other business activities in the region."

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May 5, 2021

Barrick profit beats expectations as copper, gold prices up

Barrick Gold
Copper
Gold
goldfields
2 min
Barrick Gold reports a 78% jump in Q1 profits thanks to strong performance in Zambia and Tanzania

Barrick Gold has reported a 78% jump in first-quarter profit, beating analyst expectations thanks to rising gold and copper prices, and said it was on track to meet annual forecasts.

Production in the second half is expected to be higher than the first, the gold miner said, thanks in part to the ramp-up of underground mining at the Bulyanhulu mine in Tanzania and higher expected grades at Lumwana in Zambia, reports Reuters

Barrick Gold

Barrick’s first-quarter gold production fell to 1.10 million from 1.25 million ounces due partly to lower grades at its Pueblo Viejo mine in Dominican Republic.

Adjusted profit surged 78% to $507mn in the quarter ended March 31, from $285mn a year earlier, and Barrick announced a 9 cent per share quarterly dividend.

Stronger prices helped boost Barrick’s revenue from its copper mines in Chile, Saudi Arabia and Zambia by 31% from the fourth quarter. Overall earnings per share were $0.29, ahead of analysts’ estimate of $0.27.

“We expect a positive stock reaction to the earnings beat and strong cash flow,” said Credit Suisse analysts.

Potential for South Africa merger

Barrick CEO Mark Bristow, who has championed mergers across the gold industry, said he backed the idea of South Africa-listed miners Goldfields and AngloGold Ashanti combining.

Speculation has been swirling around the two companies and Sibanye-Stillwater, whose CEO Neal Froneman floated the idea of a three-way merger.

“I’m a South African, and this country has such a great mining history and it would be great to see a real gold business come out of the many failed discussions that we’ve seen,” said Bristow.

Goldfields

Goldfields declined to comment. In a statement, AngloGold Ashanti said it was focused on delivering on its growth plan to unlock value from its portfolio of gold assets.

Bristow also said he had met with the Democratic Republic of Congo’s new mines minister and other officials and was continuing to work on getting $900mn belonging to its Kibali mine joint venture out of the country.

“We have a solution, it just needs to be sanctioned by the appropriate authorities which haven’t been around for a while,” he said, referring to a recent government overhaul by President Felix Tshisekedi.

Lumwana

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