Top Stories for Feb. 21, 2024:
1. Nucor Corporation’s NUE board approved $860 million in funding to build its fourth and largest rebar micro mill in the Pacific Northwest, with a capacity of 650,000 tons per year, 50% larger than their North Carolina project.
The location is under evaluation, and the construction, pending regulatory approvals, is expected to take two years.
President and Chief Executive Officer Leon Topalian commented, “The rebar we produce at our Nucor micro mills is made from nearly 100 percent recycled scrap, making it some of the cleanest steel made anywhere in the world.... This new rebar micro mill in the Pacific Northwest will help Nucor maintain its leadership in the steel bar market and further execute our strategy to better serve our customers west of the Rocky Mountains, which also includes the addition of a melt shop at our Arizona bar mill."
2. Gatos Silver GATO announced fourth-quarter and full-year 2023 financial results.
LGJV 2023 Results: The Cerro Los Gatos mine's lifespan extended to the end of 2030 and increased silver production by 46%. Despite processing more material, costs rose only 4%, with significant cash from operations and free cash flow, maintaining a low adjusted all-in-sustaining cost (AISC) per silver ounce.
LGJV Q4 2023 vs. Q4 2022: Revenue fell 21% to $73.5 million, net income declined 16% to $24.9 million and cost of sales rose 10% to $28 million. Meanwhile, sustaining capital decreased 40% to $11.7 million, and by-product AISC per ounce of payable silver was down 8% to $11.12, with free cash flow increasing 19% to $22.3 million.
Gatos Silver 2023 Results: 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.
Gatos Silver Q4 2023 vs. Q4 2022: Saw a 160% increase in net income to $12.3 million, 157% increase in earnings per share ($0.18), and a 116% rise in EBITDA to $11.8 million. Despite a shift from operating cash inflow to a slight cash use in operations, free cash flow was up 277% to $22 million.
3. Dakota Gold Corp. DC announced successful assays from 12 drill holes at the Richmond Hill Gold Project in South Dakota, revealing expanded mineralization in new areas and confirming significant mineral blocks in the north Richmond Hill Breccia Pipe and MW3 Zone, including a high-grade zone near the surface.
Drilling at Richmond Hill Gold Project's Breccia Pipe Zone and MW3 Zone showed promising expansions of mineralization. Drill holes in the Breccia Pipe Zone have identified potential high-grade extensions, with significant gold intervals.
In the MW3 Zone, thick, higher-grade intervals suggest an expansion of the known mineral zone. These results, post-cut-off for the upcoming maiden resource estimate, indicate 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 commented, “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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