Alpha Metallurgical Q1 Results; Metals Acquisition Simplifies Capital Structure; Latin Metals Updates Organullo Project And More: Monday's Top Mining Stories

Zinger Key Points
  • Alpha Metallurgical reported Q1 net income of $127M, EBITDA of $189.6M, sales of $864M and authorized up to $1.5B buybacks.
  • Metals Acquisition will redeem all warrants on June 5, 2024, for 10 cents each to simplify its capital structure.

1. Alpha Metallurgical AMR reported first quarter net income of $127 million, or $9.59 per diluted share, adjusted EBITDA of $189.6 million and sales of $864 million.

    Despite softer coal market conditions, CEO Andy Eidson noted solid performance, although market deterioration has continued since the quarter ended. 

    Segment coal sales costs dropped to $115.65 per ton in Q1 2024, down from $119 per ton in Q4 2023, while operating cash flow decreased to $196.1 million and capital expenditures increased to $63.6 million.

    Alpha’s share repurchase program authorized up to $1.5 billion and by April 30, 2024, the company repurchased 6.6 million shares for $1.1 billion, leaving 13,007,215 shares outstanding.

    2. Metals Acquisition MTAL announced it will redeem all its outstanding public and private placement warrants for ordinary shares on June 5, 2024, for 10 cents per warrant. 

      This aligns with the company’s goal of a simplified capital structure. 

      Warrant holders can either exercise their warrants for $11.50 each, surrender them on a cashless basis for a fraction of an ordinary share or let the company redeem them for 10 cents per warrant.

      Also Read: Glencore-Anglo American Tie-Up Makes More Sense Than BHP Offer, Analyst Says

      3. Latin Metals LMSQF gave an update on its 100% owned Organullo Project, where an option agreement allows AngloGold Argentina Exploraciones AU to earn up to 80% interest. 

        AngloGold’s geophysical survey identified a high-priority drill corridor in West Graben. 

        Prior mapping and sampling identified three drill targets with advanced argillic alteration spanning over six kilometers.

        Organullo’s eastern graben, near the historical Julio Verne Mine, has seen past exploration, but the western graben has been overlooked. 

        AngloGold’s holistic approach identified potential for porphyry copper-gold and high-sulphidation epithermal gold deposits, untested by drilling. 

        Their exploration thesis could lead to a significant discovery.

        4. Idaho Strategic Resources IDR reported a 76.5% increase in revenue, quarterly earnings of 17 cents per share and a 35-fold rise in net income for Q1 2024.

          Gold production increased by 80.6% to 3,116 ounces, while the all-in sustaining cost per ounce dropped 28.8% to $1,097.09. 

          When asked for a comment, spokesperson Travis Swallow noted the company is now able to reinvest in production and exploration and is motivated to unlock the Murray Gold Belt District’s potential and advance Idaho’s rare earth projects.

          The company also purchased the Butte Gulch property and long-lead time components for its planned paste backfill system, aiming to save up to $800,000 annually. 

          A renewed contract with H&H Metals is expected to save up to $400,000 annually.

          Now Read: US Lawmakers Vote To Ban Russian Uranium In Win For North American Miners

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