Top Stories for Feb. 21, 2024:
1. Nucor Corporation has set the stage for a bold step in the Pacific Northwest. The board approved plans for an $860 million rebar micro mill, the largest in Nucor’s history with a capacious output of 650,000 tons per year, escalating the scale by 50% from their North Carolina venture.
The site selection process is underway, and subject to regulatory nods, construction is estimated to span two years.
Nucor’s President and Chief Executive Officer Leon Topalian remarked, “Our nearly 100 percent recycled scrap rebar produced at Nucor micro mills is arguably some of the cleanest steel in the world…. This new rebar micro mill in the Pacific Northwest will help Nucor maintain its dominance in the steel bar market and further execute our strategy to better serve our customers west of the Rocky Mountains, which also includes the construction of a melt shop at our Arizona bar mill.”
2. Gatos Silver unveiled its financial results for the fourth quarter and full-year 2023.
Key Achievements for 2023: The Cerro Los Gatos mine’s lifespan extended till the end of 2030 and registered a remarkable 46% surge in silver production. Despite processing more material, costs rose by a mere 4%, generating substantial cash from operations and free cash flow while keeping the adjusted all-in-sustaining cost (AISC) per silver ounce low.
Q4 2023 vs. Q4 2022: Revenue dropped 21% to $73.5 million, net income declined 16% to $24.9 million, and cost of sales surged 10% to $28 million. However, sustaining capital plummeted by 40% to $11.7 million, and the by-product AISC per ounce of payable silver shrunk by 8% to $11.12, resulting in a 19% increase in free cash flow to $22.3 million.
Full-Year 2023 Results: Gatos Silver reported net income of $12.9 million ($0.18 per diluted share) and received $59.5 million of capital distribution from LGJV, ending the year with $55.5 million in cash and no debt.
Q4 2023 vs. Q4 2022: Gatos Silver witnessed a 160% upsurge in net income to $12.3 million, 157% growth in earnings per share ($0.18), and a 116% rise in EBITDA to $11.8 million. Despite a transition from operating cash inflow to a slight cash use in operations, free cash flow escalated by 277% to $22 million.
3. Dakota Gold Corp. provided an update on the Richmond Hill Gold Project in South Dakota, affirming successful assays from 12 drill holes, which indicated expanded mineralization in new areas and affirmed significant mineral blocks in the north Richmond Hill Breccia Pipe and MW3 Zone, including a high-grade zone near the surface.
The drilling at Richmond Hill Gold Project’s Breccia Pipe Zone and MW3 Zone presented promising expansions of mineralization. Drill holes in the Breccia Pipe Zone identified potential high-grade extensions, with significant gold intervals.
In the MW3 Zone, the presence of thick, higher-grade intervals suggests an expansion of the known mineral zone. These findings, post-cut-off for the upcoming maiden resource estimate, promise potential for future resource expansion.
Vice President of Exploration James Berry commented, “These exploration results are very positive.… The shallow mineralization is open, and we are finding better grades in zones internal and external to the global resource area, which will improve the ultimate economics of the project. Once we finish the initial Richmond Hill maiden S-K 1300 resource estimate in Q1 2024, work will begin to expand it using the great results reported here today.”
4. Piedmont Lithium PLL announced the sale of 1,152.2 million shares of Sayona Mining SYA for A$0.052, resulting in gross proceeds of roughly A$59.9 million ($39.4 million).
Piedmont no longer holds any shares of Sayona Mining, and the sale has no impact on Piedmont’s joint venture or offtake position with Sayona Quebec.
The decision to divest aligns with the company’s goal to maintain a prudent balance sheet while minimizing shareholder Piedmont dilution.
President and CEO Keith Phillips remarked, “We acquired our initial Sayona shares as part of our strategic investment in the Sayona Quebec joint venture and will recognize a meaningful gain on the investment. We remain fully committed to our joint venture with Sayona, with a particular focus on the ongoing ramp up of North American Lithium, the largest lithium operation in North America. Our 25% joint venture interest and associated offtake agreement are core assets of Piedmont, and we look forward to continuing to work closely with our partners at Sayona to supply IRA-qualified lithium resources critical to the U.S. electric vehicle supply chain.”
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