Reliance, Newmont Report Q1 Financial Results; BHP Proposes Acquisition Of Anglo American And More: Thursday's Top Mining Stories

Top Stories for April 25, 2024:

1. Reliance RS reported Q1 results with net sales of $3.64 billion and a 10.3% increase in tons sold. 

The company recorded a gross profit margin of 31% and earnings per share (EPS) of $5.23, with a non-GAAP EPS of $5.30. 

Reliance also completed the acquisitions of Cooksey Iron & Metal, American Alloy Steel and Mid-West Materials in early 2024. 

Despite macroeconomic uncertainties, the company projects continued demand growth in its key markets for Q2 2024, expecting a 2.5% to 4.5% increase in tons sold and a slight decrease in average selling price per ton. 

Reliance increased its dividend by 10%, marking 65 consecutive years of payouts.

2. Newmont NEM reported strong Q1 2024 results, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in operational cash. 

The company declared a 25 cents per share dividend and remains on track to meet its annual production and cost guidance. 

Newmont also reported $776 million in operational cash flow, net income of $179 million and adjusted EBITDA of $1.7 billion. 

Newmont sold its non-core Lundin Gold financing facilities for $330 million and delivered $105 million in synergies from the Newcrest acquisition, aiming for $500 million annually. 

The company also advanced its ESG reporting with its latest sustainability updates.

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3. BHP BHP, the world’s largest mining company, proposed an acquisition of Anglo American valued at £27 billion ($39 billion). 

The offer involves a stock exchange and depends on Anglo divesting its South African platinum and iron ore businesses. 

This merger could mark BHP’s return to major deals under CEO Mike Henry, potentially creating the world’s top copper producer. 

However, regulatory challenges may arise, as copper is considered a strategic resource. Anglo American is reviewing the proposal without guaranteeing acceptance.

4. Kaiser Aluminum KLAU reported Q1 results, including net sales of $738 million, conversion revenue of $367 million, net income of $25 million ($1.51 per diluted share), adjusted net income of $17 million ($1.02 per diluted share) and adjusted EBITDA of $62 million with a 17% margin. 

The company noted improved cost controls and efficiencies, and maintained its full-year 2024 outlook. 

CEO Keith A. Harvey highlighted strong performance in general engineering and automotive sectors, with aerospace slightly below expectations, reinforcing ongoing strategic investments for growth in 2025.

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