Royal Gold Strikes A Deal With Centerra Gold; Reliance Steel Acquires American Alloy Steel; IperionX Looks To Scale Titanium Production

Top Stories for Feb. 14, 2024:

1. Royal Gold, Inc. RGLD announced that RGLD Gold AG, its wholly-owned subsidiary, executed an agreement with Centerra Gold Inc. CGAU and its wholly-owned subsidiary, Thompson Creek Metals Company Inc.

Royal Gold secured a deal with Centerra Gold to extend the Mount Milligan Mine's life to 2035, promising Royal Gold $125 million in immediate cash and gold plus long-term financial interests.

This arrangement, which maintains the original streaming agreement, encourages further investment by Centerra to potentially prolong the mine's operation beyond 2035 through exploration and resource development.

President and CEO of Royal Gold Bill Heissenbuttel said, “This announcement demonstrates our willingness to work with our operating counterparties and be flexible and creative in order to find mutually beneficial opportunities to maximize value.... Mount Milligan is a large and potentially long-life operation, and our support is designed to allow Centerra to extend the mine life and add long-term value for each company’s stakeholders.”

2. Reliance Steel & Aluminum Co. RS entered into a definitive agreement to acquire all of American Alloy Steel, Inc.’s outstanding equity interests and related real estate assets, which is expected to enhance Reliance's value-added processing capabilities.

American Alloy has five service centers in the U.S., a plate fabrication business and a joint venture in Canada to serve a wide range of industries across North America and certain international markets. The company reported annual net sales of approximately $310 million in 2023.

President and Chief Executive Officer of Reliance Karla Lewis commented, "American Alloy adds specialty carbon steel plate to Reliance's product portfolio as well as new fabrication capabilities. We look forward to continuing to grow the American Alloy business, especially in value-added processing, as well as leveraging our collaboration efforts to expand the product and service offerings of both American Alloy and our existing Reliance companies as they find opportunities to work together and grow."

3. IperionX Limited IPX is on course to commercially scale its titanium metal production.

With its HAMR titanium furnace ready for U.S. installation in early 2024 and aiming to start production by mid-year, IperionX has made significant strides in its titanium production capabilities.

The company's Titanium Manufacturing Campus in Virginia is also on schedule, bolstered by a $2.4 million payment from a $12.7 million Department of Defense grant, marking a major advancement in its commercial-scale titanium manufacturing.

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