Monsters of Rock: Who earned cash money last year?
The price of 62% iron ore fines slipped to US$153.39/t yesterday, according to Fastmarkets, to its lowest level since March.
If miners have come off the boil somewhat in recent weeks at least they have the opportunity now to indulge in some nostalgia about the ‘commodities supercycle’ everyone spoke about when prices for almost everything charged with their 2021 financial results.
South32, Newcrest, Evolution and mining services firm NRW Holdings were among the Monsters of Rock to report today.
South32 enjoyed a 32% rise in EBITDA from US$1.185 billion in FY2020 to US$1.564b in 2021, but suffered a US$195 million after tax loss after booking a US$728 million impairment on its Illawarra met coal operations.
Higher prices across aluminium, silver, zinc and nickel gave the miner a boost against price-driven reductions in coking coal, manganese and alumina.
The company has requested a judicial review of a decision by the NSW Independent Planning Commission that refused its bid to extend the Illawarra coal operation out to 2036.
Evolution disappointed with production figures last month that showed its gold output fell from 746,463oz in 2020 to 680,788/oz in 2021.
But its financials were well received with ‘sector leading’ costs of $1215 an ounce helping the Sydney-based gold miner to a 14% increase in profit to a record $354.3 million.
Underlying net profit was down from $405.4m in FY20 to $354.3m in FY21.
Evolution will pay a fully franked final dividend of 5c a share. Its results announcement, delivered with boss Jake Klein still locked down in New South Wales, came a day after Evolution finalised its $400 million buy of Northern Star’s Kundana operations.
The ASX’s largest gold miner saw a slight bump despite posting a record profit and upping its dividend by 129%.
Newcrest produced 2.1Moz of gold and 142,700 tonnes of copper and it made a $1.2 billion profit.
The company’s All-in-Sustaining Cost was $911 per ounce with a margin of 49% and its total dividends were 55 US cents per share.
Having approved a life of mine extension at the Telfer mine in WA last week, Newcrest also today released a major PFS into the $1.3 billion PC1-2 extension at its Cadia mine in New South Wales.
With projected copper credits the mine would have an average all in sustaining cost of $54/oz. Not $540 or $1540 – which would not be bad at all — $54.
Newcrest is also studying an expansion that could push its Lihir mine in PNG beyond 1Mozpa.
In FY22, it is expecting to produce between 1.8 and 2 million ounces of gold although it assumed there were no COVID-19 related interruptions.
NRW impressed with its results which were driven by the commodities boom.
NRW’s revenues grew 11.5% to $2.3 billion and its earnings grew 6.7% to $266.7 million.
It cut debt from $139.7 million to $88.7 million and its order book stood at $3.4 billion.
NRW was one of our experts’ mining services bets from a couple months ago and saw a 17.5% gain today after investors took a shine to those numbers.
Mining services new kid on the block DRA Global (ASX:DRA) also enjoyed a 7.7% kick after announcing a 32% increase in first half revenue, 30% rise in underlying EBITA and 23% jump in net profits to $569.3m, $32.5m and $23m, respectively, in a good earnings debut.