Glencore
Glencore’s production should grow by 50% between 2011 and 2015, exceeding the expected 30% production growth of takeover target Xstrata for the same period, according to Glencore, which has released its final earnings report.
“This [growth] in turn should help drive volumes and enhanced returns within our marketing business, particularly in copper, coal and oil,” Glencore chief executive Ivan Glasenberg said after he confirmed the company had earned $US4 billion last year.
Many of Xstrata’s expansion projects are projected to return over longer period time horizons, leading to the disparity between the two companies’ growth outlooks.
Glencore released preliminary figures on February 7 when it announced plans to merge with Xstrata. Glencore has so far not raised its 2.8-for-1 scrip bid for Xstrata.
Xstrata shares last traded at a ratio of 2.85-for-1. Glencore is seeking to acquire Xstrata via a scheme of arrangement, which will require the approval of 75% of the Xstrata register.
Modun Resources
Modun Resources has acquired 100% of the Tsagaan Tolgoi coal deposit and 100% of exploration licence Ajlyn Talbai from SouthGobi in Mongolia.
These projects added to Modun’s 489 million tonne Nuurst thermal coal project in central Mongolia and provided a platform to build and develop a portfolio of licences in the South Gobi coking coal district of Mongolia, the company said.
Modun will also raise $7.5 million through a placement of up to 187.5 million shares at an issue price of 4c per share to institutional and sophisticated investors.
Following completion of the acquisition, SouthGobi will become a major shareholder in Modun and will be entitled to appoint a person nominated by SouthGobi as a director of Modun.
Diatreme Resources
Diatreme Resources is nearing completing of a pre-feasibility study for an open cut zircon project in the Eucla Basin of Western Australia starting production in 2015, its chairman Tony Fawdon told Finance News Network.
The prefeasibility study envisages a mine that would have a 1.1:1 stripping ratio with about 106 million tonnes of overburden and about 100Mt of actual ore. The overburden is approximately 17m thick and the ore is about 15m thick.
Diatreme has a reserve at Eucla of 97Mt at a rate of 2.5% heavy minerals, of which 0.79% is zircon and the rest is titanium.
“It actually makes it the highest grade zircon deposit in Western Australia and it’s one of the highest grades in the world, after Jacinth-Ambrosia,” Fawdon said.
Sumatra Copper & Gold
Sumatra Copper & Gold has accepted a committed offer from Macquarie Bank for a convertible debt finance facility for $5 million to progress its wholly-owned Tembang project in Sumatra, Indonesia and for working capital purposes.
Sumatra managing director Julian Ford said the successful completion of the funding facility underpinned the company’s project development schedule.
“Sumatra is currently completing the definitive feasibility study for Stage 1 of Tembang, which remains on-track to commence production in 2013. Macquarie is already a major shareholder in the company, holding approximately 9%,” Ford said.
“The company continues to enjoy support from our major shareholders, which also includes Newcrest Mining and RMB Resources and is grateful for this at a time when the funding of junior resource companies is under pressure from market sentiment.”
As part of the facility fee, the company will issue Macquarie 31,250,000 options, each to acquire one CHESS depositary interest in the company at 16c per CDI at any time within two years of their date of issue to Macquarie.
