Break it Down: Challenger's ‘land of gold' inches closer to production
Challenger Gold has raised $34.5 million to advance its Hualilan gold project into production, with first cash flows expected soon.
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News.com.au
a day ago
- News.com.au
Rio stays the course on lithium as it looks to rejuvenate iron ore business
Outgoing Rio Tinto boss Jakob Stausholm says Rio remains committed to its lithium strategy Mining giant just opened newest iron ore operation in WA's Pilbara CEO denies being nudged by board as he says company leaders are aligned on ESG and operational improvements The head of the world's second biggest miner Rio Tinto (ASX:RIO) says its board remains aligned on a counter-cyclical push into lithium as CEO Jakob Stausholm denied speculation that friction with the company's board was behind his decision to resign this year. Stausholm's near five year tenure at Rio followed the destruction of the Juukan Gorge rock cave in the Pilbara under his predecessor JS Jacques, an act that led to Jacques' resignation and steered the $150bn miner on a course to prioritise its ESG commitments. In that time, its new investments have focused in two areas, replacement mines to address declining iron ore quality at its flagship Pilbara operations and M&A to become one of the world's largest lithium producers. The latter has come under the microscope amid Stausholm's surprise exit, with lithium prices crashing to four year lows after Rio's entry as a producer via its $10 billion takeover of Argentine brine producer Allkem. Speaking at the opening of Rio's first of five major replacement iron ore mines due in the next five years – the 25Mtpa Western Range with Chinese steel giant Baowu near Paraburdoo – Stausholm said Rio's board remained aligned on its lithium strategy. "The lithium strategy we are absolutely aligned about in the whole board. This is a next pillar," he said. "Think about it like some visionary people 50-60 years ago said Rio Tinto should go into iron ore. "We need to think about the future to the next decade and the next decade. And we are lucky that we have built now a portfolio of outstanding brine resources in Argentina, in Chile. " It's going to complement our – what I would call signature – business here of iron ore for the future." Grade control Under Stausholm, Rio has cleared a number of social licence hurdles in its WA heartland culminating in an agreement this week with the PKKP group, the very Traditional Owner group devastated by the 2020 demolition of Juukan Gorge. It will be a key stakeholder for the US$1.8bn Brockman Syncline 1, the next replacement mine approved for the ~40Mtpa Brockman hub, one of a number of developments that will cost Rio in the order of US$13bn to deliver in the coming years. Western Range is a milestone in that it marks the first new operation delivered by Rio's iron ore division since Juukan Gorge (its Gudai-Darri mine was under construction at the time), and the first to a mine plan co-designed with the TO group, the Yinhawangka People. But Rio's iron ore division has been, quite literally, degrading. 2023 and 2024 marked long time highs for iron ore production at 331.8Mt and 328.6Mt, making Rio the largest exporter of hematite iron ore in the world. But costs have been escalating at a faster rate – on reported numbers at least – than its peers BHP and Fortescue. While BHP and FMG reported C1 cash costs of US$17.50/t and US$19.17/wmt in the first half of FY2025, Rio's unit cash costs came in at US$23/t in CY24. Its 2025 numbers will likely be higher at a guided range of US$23-24.50/t. And while 62% Fe Singapore iron ore futures are sitting at US$95.55/t, Rio's realisation to the benchmark price has been slipping. It notified customers that during the September quarter the spec grade for its Pilbara Blend product will drop. Fastmarkets this week introduced a 61% Fe Index to reflect the lower quality product Pilbara miners are now shipping. It will likely take until the end of this decade, when Rio delivers the higher grade Rhodes Ridge mine, for its grade to recover. Speaking at the Western Range opening, Stausholm denied any rift with new chair Dominic Barton, nor that the miner's focus on ESG under his leadership had clouded its dedication to operating performance. "We are absolutely aligned. It's very important to say we in the management team and the whole board (are) absolutely aligned around the values of Rio Tinto about pursuing the four objectives, about our strategy and the strategic choices and about the assessment of our performance," Stausholm said. "So there is no disalignment. "We are absolutely aligned. It's very important to say we in the management team and the whole board (are) absolutely aligned around the values of Rio Tinto about pursuing the four objectives, about our strategy and the strategic choices and about the assessment of our performance," Stausholm said. "So there is no disalignment. "If you look at my statements at the full year results, I said exactly the same thing because we have under the four objectives, made a lot of progress on rebuilding trust in the company, working towards impeccable ESG credentials, improving how we execute projects. " This project is an example. This project is on time, on schedule. "We still have the potential to do in the best operator, our safe production system is really working. So I said that at the full year, and my chairman repeated that a couple of weeks ago." Steel on top The official opening of Western Range marked a second major development in the relationship between Rio and China's top steel producer Baowu in the Pilbara after the development of Eastern Range in the early 2000s. It followed Rio's landmark first deal with China's Sinosteel at the nearby Channar JV almost 40 years ago. Australia now ships over 900Mt of iron ore a year, the vast bulk of it (around 80%) to China, the world's largest steel producer. But as new, high quality ore sources are developed overseas – notably the high grade 120Mtpa Simandou project in Guinea in which both Rio and Baowu are invested – question marks are hovering over the centrality of the long-established "conveyor belt" between the Pilbara and Beijing to the steel supply chain. FMG chairman Andrew Forrest notably sounded the alarm in recent months over the emergence of new competitors to WA who could eat its golden goose. He is lobbying hard for the establishment of a domestic green iron industry. But Rio remains confident in the role Australian iron ore will play in the future, even in a decarbonising world where green steel technologies – not suited to low and mid-grade ores produced in the Pilbara – could dominate. "It is for us as companies to make sure that the Pilbara ore remains relevant," Stausholm said. "And how do we do that? We do that in partnerships like you see today with Baowu, working on how can we decarbonise the supply chain. " If you find the right solutions and we will, then Pilbara will be the source for many, many decades to come." Stausholm's departure comes as BHP is also rumoured to be looking for a new CEO to replace Mike Henry, and has a number of internal Rio candidates reputedly jostling for position, among them chief commercial officer Bold Baatar and local favourite Simon Trott, who helped open Western Range on Friday and runs the major's iron ore division out of its Perth office.
News.com.au
a day ago
- News.com.au
Barry FitzGerald: Katanning ticks all the boxes for an Ausgold re-rate
'Garimpeiro' columnist Barry FitzGerald has covered the resources industry for 35 years. Now he's sharing the benefits of his experience with Stockhead readers. After its dramatic rise in the opening months of the year to record levels, the Aussie gold price has settled into a bit of a groove around the $5,200/oz level. Nothing wrong with that. It's a fantastic price and delivers fat margins to even our highest cost gold mines. And it is not to suggest that gold can't take off again and set new highs or fall significantly for that matter. The observation is that for the last six weeks or so the Aussie price has been as steady as it could be in these turbulent times. It means that share prices of ASX-listed gold producers and developers have also gone into a sideways trading pattern. Need to differentiate So more than has been the case in recent times when gold took off to record levels, the producers and developers now need to differentiate themselves from the pack with strong newsflow of the re-rating inducing type. It means that if the gold price continues to trade sideways, the stock involved has a reason to go higher. Alternatively, if the gold price heads south, the damage to the stock could be more limited than it would have been otherwise. Taking all that on board, Garimpeiro had a look at his calendar during the week to find which of the gold producers/developers have re-rating event(s) on the horizon. Ausgold stands out Ausgold (ASX:AUC) stood out for the pending release this month of a definitive feasibility study (DFS) into the development of its Katanning gold project, a three-hour drive from Perth in WA's southwest Yilgarn region. Katanning is one of the biggest undeveloped gold deposits in the country at 3.04 million ounces and has previously been scoped as having the potential to produce 136,000 ounces annually from open-cut ore sources for more than 10 years. All-in sustaining costs were put at $A1,549 and preproduction capital costs weighed in at just under $300m. But those are 2023 figures and things will have changed, including the reserve component of the resource thanks to infill drilling work. Gold prices have increased dramatically since those 2023 figures but so have construction costs. Having said that, the expectation is that the DFS will confirm Katanning as a very robust project with a super quick capex payback capability. Take that and the scale of the project – production in the early years will be higher still because initial higher grade ores - and Ausgold's $240 million market cap at 67c share looks to be on the mean side of things. The company has the lowest resource ounce valuation metric of its peer group for no apparent reason, except perhaps the project has been in the works since 2010 under Ausgold ownership. So the story of the resource growth since, and the pending release of the DFS leading into a development decision by year end, has been overlooked to a large degree by the market on a fatigue basis alone. Katanning momentum Momentum for Katanning is now the order of the day under John Dorward, Ausgold's executive chairman who arrived on the scene in May last year. A can-do sort of guy, Dorward was the former president and CEO of TSX-listed Roxgold, a West African gold group acquired by fellow Canadian Fortuna Silver Mines in an all-scrip deal worth $US884 million in 2021. Two weeks in the job at Ausgold and Dorward put Katanning on the development pathway by pulling in $38 million in equity, including $1m from his own pocket. That is being spent getting to the DFS stage and on a three-pronged strategy of establishing a bigger mining reserve component in the mineral resource estimate, extending the scale of the resource and making regional gold discoveries. Morgans' 94c target Morgans' veteran analyst Chris Brown has a 12-month price target on the stock of 94c. 'Our expectation is that delivery of a DFS broadly confirming or improving on the preliminary feasibility study, and employing a higher gold price, should prove positive for the share price,' Brown said. He also flagged that a final investment decision on a project development – expected by the end of the year - should also prove positive depending on the terms of the project's financing package. ''Our valuation will likely lift with the delivery of the DFS, and again when the final investment decision is taken,'' Brown said. The views, information, or opinions expressed in this article are solely those of the columnist and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.
News.com.au
a day ago
- News.com.au
Resources Top 5: Investors eye pot of gold at end of West Cobar Metals' rainbow
West Cobar Metals has completed the purchase of the Mystique gold project in Western Australia's Fraser Range MTM Critical Metals hits a new record after fielding strong antimony recoveries from US e-waste using its Flash Joule Heating technology After being reinstated to the ASX on May 21, 2025, Bastion Minerals is making progress Your standout resources stocks for Friday, June 6, 2025 West Cobar Metals (ASX:WC1) Investors reacted strongly after West Cobar Metals completed the purchase from IGO of the Mystique gold project in Western Australia's Fraser Range, believing it may represent a pot of gold at the end of a rainbow. Shares more than doubled to a daily high of 3.1c, an increase of 107% with more than 77m shares changing hands. West Cobar believes the project is highly prospective for orogenic gold deposits and is encouraged by strong results returned by the IGO/Rumble Resources (ASX:RTR) joint venture at the Themis prospect, just 250m outside of, and north of, the Mystique project boundary. While exploring the adjoining tenements, the JV encountered gold intercepts in saprolite and bedrock that included 25m at 2.42g/t gold from 42m, including 5m at 10.85g/t from 49m, and 16m at 6.69g/t from 42m, including 4m at 22.2g/t from 50m. Mystique, which covers 35km2 within the Albany-Fraser Province and is about 225km SSE of Kalgoorlie, remains relatively unexplored as most of the area is covered by 30m or more of transported Eocene sediments and there is little surface expression of geology or mineralisation. 'We are delighted to have completed the acquisition of the Mystique Gold Project,' West Cobar Metals' managing director Matt Szwedzicki said. 'The tenement comprises a key land area with exceptional and immediate potential for both shallow saprolite hosted and large-scale basement hosted gold deposits. 'We have identified two high priority targets which justify immediate exploration drilling." There are Immediate targets at Mystique, supported by widespread drill intersected gold anomalism in transported cover and saprolite, and WC1's intentions are: To drill test the palaeochannel/saprolite and bedrock gold mineralisation that is likely to extend southwards into West Cobar's ground (Themis South prospect); To drill test and define significant gold mineralisation targets in the saprolite and basement rocks at the Torquata prospect; and Drill program being prepared to follow up key targets. Completion of the acquisition of IGO's 100% interest in tenement E28/2513 occurred following the satisfaction of conditions precedent. MTM Critical Metals (ASX:MTM) It has been a strong week for MTM Critical Metals, rising 51.43% to 53c, a new record high, after fielding strong antimony recoveries from US e-waste using its proprietary Flash Joule Heating technology. The company achieved 98% recovery of the critical mineral and extracted 3.13% antimony from printed circuit board feedstock, with the grade far exceeding that of typical mined ore. Even China's largest antimony deposits — which dominate global supply — average just 0.5% to 0.7% antimony, making e-waste a vastly richer and largely untapped alternative. The material had been thermally pre-processed to strip out plastics and volatiles, producing a dense, metal-rich carbon-based residue. MTM Critical Metals views the results as clear proof of the technical strength and strategic promise of its Flash Joule Heating technology for recovering critical metals from e-waste. Flash Joule Heating works by passing an electric current through metal-bearing material, rapidly elevating its temperature to more than 3000 degrees kelvin. This vaporises the target metals as chlorides in seconds and collects the vapours for refining. 'This result demonstrates the strong technical and commercial potential of our FJH process for recovering strategic metals from e-waste,' MTM managing director and CEO Michael Walshe said, adding: 'Achieving 98% recovery of antimony at over 3% grade, from domestic urban feedstock, is particularly significant given the US currently has no meaningful domestic Sb production. 'With antimony designated as a critical metal by both the DoD and DoE, these outcomes reinforce MTM's ability to contribute to onshore supply solutions for high-priority metals. 'Combined with our recently secured, pre-permitted demonstration site in Texas, we are well positioned to scale operations and advance commercial deployment. 'In parallel, the company is engaging with US government agencies, including the DoD and DoE, regarding potential funding to support domestic critical metal recovery. 'While early-stage and non-binding, these discussions reflect strong interest in scalable US-based refining technologies. 'The strategic role of antimony in defence, particularly in armour-piercing alloys and flame-retardant systems, was a consistent theme during recent meetings in Washington.' Antimony is an essential metal for munitions, semiconductors, batteries and flame retardants, yet the US lacks meaningful domestic production and depends heavily on imports from China. This reinforces MTM Critical Metals ability to contribute to onshore supply solutions for high-priority metals. The company has locked in more than 1100 tonnes per year of e-waste feedstock under agreements with US suppliers, providing a strong foundation for commercial deployment. Bastion Minerals (ASX:BMO) After being reinstated to the ASX on May 21, 2025, Bastion Minerals is making progress, with a newly appointed leadership team; a review of projects in Chile, Sweden, Australia and Canada; an Exploration Work Permit granted for its ICE copper-gold project in Yukon Province Canada; and an upcoming maiden JORC resource estimate for ICE. A considerable jump in the company's share price to 0.4c has seen BMO field a price query from the ASX, prompting a trading halt while it prepares a response and details of the resource estimate. On reinstatement Bastion's non-executive chairman Gavin Rutherford said: "Bastion's recommencement of trading marks a significant and exciting turning point. We have a refreshed board to provide focused leadership and renewed commitment to delivering shareholder value. 'As investors, the incoming board members recognise the value and fantastic potential of the overseas projects in BMO's inventory. 'Our preferred direction is to unlock the potential of these projects through generating partnerships, positioning BMO with equity exposure in the project whilst the selected partner invests and acts to unlock its potential. 'For BMO shareholders this is the best way to combine timeliness, effective investment and shareholder weighted outcomes on three international fronts. 'Meanwhile, Australia has no shortage of gold-weighted projects available, with many of them residing in the hands of private owners. 'We are working through multiple opportunities with an eye to bring projects into BMO that are paid for via exploration. There is no need to expose BMO to the inherent risk of a project purchase when, in my mind, the best due diligence we can execute is via on-ground exploration that resides within a traditional earn-in model. 'We will crawl before we walk, we will build wealth in the company through prudence and I am very much looking forward to BMO shareholders joining us on this journey.' Subsequently, the company was granted a work permit for ICE, with Rutherford stating: "We are very grateful to have received this consent from the Tu Å�idlini Lands Department and the Ross River Dena Council for our ICE Copper-Gold Project in Yukon. 'The consent is a vital access step in our pathway to getting 'boots on ground'.' In light of volatile met coal prices and markets, another company moving in the right direction at last is Coronado Global Resources, which has lifted 15.2% to a daily high of 19c and has risen 90% during the week. Encouragement has come from a refinanced debt facility with private equity firm Oaktree Capital Management, bringing another player into the potential bidding for the company after reports Czech bargain hunter Pavel Tykac's Global Investments had bought up around US$40m of its debt last month. The new three year asset-based lending facility comprises $75m to be drawn at financial close with the remaining $75m to be drawn in $25m increments over 12 months. There will be no testing of leverage and interest coverage financial covenants for the June 2025 quarter, with covenant thresholds from Sept 2025 onwards 'designed to afford the business flexibility' in the current low price environment. Met coal futures are running at around US$183/t. But that's for the really high quality stuff. Then, in response to media speculation, Coronado Global Resources advised on Thursday that it is in confidential discussions with Stanwell Corporation regarding potential changes to its coal-supply agreements with Stanwell. These will potentially provide up to US$150 million in near-term liquidity to Coronado (not in the form of a loan) with Coronado to provide access to additional coal supply for Stanwell to support its power generation capacity. Waratah Minerals (ASX:WTM) Turning heads in the copper-gold prolific Macquarie Arc of Central West NSW with an aggressive exploration program at the Spur project is Waratah Minerals, which was 15.5% higher to 41c. Spur is just 5km west of the Cadia Valley Operations of Newmont and the emerging discovery is showing similar geological markers to those seen in the multi-million-ounce Cowal and Boda systems in the same region of the Lachlan Fold Belt. The company has a dual focus at Spur with two rigs targeting a large epithermal gold system, while a third rig – the second diamond drill – is set to return to Breccia West prospect to follow up promising porphyry intercepts such as 108m grading 0.52% copper and 0.22g/t gold from surface to end of hole. Exploration has outlined a broad zone of epithermal stringer and lode-style mineralisation, accompanied by porphyry-style alteration – characteristics consistent with the upper levels of a larger porphyry system, akin to those found elsewhere in the Macquarie Arc. 'We're getting very busy on the ground and getting more confidence, we're recognising what is important in the rocks,' Waratah managing director Peter Duerden said.
