AU
China’s gold imports surge after international prices slump
Chinese gold imports rose to a two-year high in June, underscoring resilient demand in the world’s biggest bullion market after a plunge in international prices.
Overseas purchases rose a third month to about 173 tons, according to the latest customs data, the highest mark since March 2024. Cheaper prices and a stronger yuan kept investors interested, while banks were motivated to use up import quotas and stock up on bullion to meet retail commitments.
“Investors buying the dip is an important driver of recent demand,” said Zijie Wu, an analyst at Jinrui Futures Co. “Commercial banks need to build up their inventories to provide the physical backing for retail bullion sales and gold accumulation plans, as well as preserving some safety reserve for when demand spikes.”
Accumulation plans are offered by numerous banks and allow individuals to pick up gold in small increments. They’re one of the main ways for Chinese retail investors to gain exposure to bullion.
Bullion-backed exchange traded funds, another popular investment, have also seen net inflows of around 28 tons this year, according to a tally by the Shanghai Gold Exchange.
Banks hold licenses to import gold based on strictly controlled quotas given out irregularly by the People’s Bank of China. Imports were also likely lifted by a new licensing regime from June 1, which would have encouraged banks to exhaust existing quotas.
Some banks may have booked shipments before June, but the gold wouldn’t have registered until later because of the time required for financing, transportation and customs paperwork, said Wu.
The domestic premium on gold that has persisted for most of the first half means that it’s cheaper for banks to procure bullion from the international market, he said.
(By Yihui Xie)
Newmont eyes 5M-ounce boost from Lihir gold mine
Newmont (NYSE: NEM)(TSX: NGT) expects a nearshore barrier at its Lihir mine in Papua New Guinea to unlock more than 5 million ounces of gold beginning in 2028, as the world’s largest gold producer reaffirmed its 2026 production guidance after reporting record quarterly free cash flow.
Chief executive Natascha Viljoen said the company remains on track to meet its full-year guidance after producing 1.3 million oz. of gold, 17,000 tonnes of copper and 7 million oz. of silver in the second quarter.
Cash flow from operations reached $2.9 billion after working capital, while free cash flow climbed to a quarterly record of $2.2 billion.
“We delivered a strong second quarter and remain on track to achieve our full year 2026 guidance,” Viljoen said in a conference call commenting on second quarter results.
Newmont returned about $1.9 billion to shareholders through dividends and share repurchases since its previous earnings call, including buybacks completed in July. The company has now repurchased more than 100 million shares since launching the program just over two years ago.
Chief financial officer Brian Tabolt said adjusted EBITDA totalled $3.8 billion and adjusted net income reached $2.10 a share, supported by an average realized gold price of $4,414 per ounce. Gold all-in sustaining costs were $1,621 per ounce, below the company’s full-year guidance of $1,680 per ounce, although Tabolt warned sustaining capital spending is expected to rise by about $150 million in the third quarter, pushing unit costs moderately higher.
Growth pipeline
Management highlighted progress across several growth projects, including regulatory approvals for the Red Chris block cave project in British Columbia, Canada, which is advancing toward a feasibility study and a board investment decision.
At Cadia in Australia, production resumed from the operating caves in mid-June following an April seismic event, with no impact expected on full-year production guidance.
The company’s long-term growth outlook also hinges on a pipeline that includes Ahafo North, Cerro Negro, Tanami, Boddington and the Lihir nearshore barrier, which the company identified as key drivers of future production growth.
Viljoen told analysts the company was “quite positive and encouraged” by operational improvements at Lihir, citing greater mining stability, improved reliability and lower costs.
Investor concerns
The update comes as investors continue to scrutinize inflation, project capital costs and regulatory risks. Analysts pressed management on oil prices, Ghana policy uncertainty and expected cost increases at Red Chris, where Viljoen acknowledged capital spending will likely exceed estimates prepared under Newcrest.
She also said discussions with Barrick (TSX: ABX)(NYSE: B) over Nevada Gold Mines remain unresolved, while Newmont expects to revisit its approach to multi-year guidance early next year.
Gold miner Cadillac, backers raise $273 million in Canada IPO
Cadillac Mines Corp. and some of its backers raised C$385 million ($273 million) in an upsized initial public offering, adding to the mining-driven rebound of listing activity in Canada.
The Toronto-based mineral exploration company priced the common shares at C$6.90 each and special flow-through shares at C$9.52 apiece, according to a statement late Thursday. It raised about C$190 million in gross proceeds, while the selling shareholders raised roughly C$173 million.
The company sold 18.8 million shares and 6.3 million flow-through shares, the statement showed. The holders sold 28.2 million common shares, increased from 25.1 million.
Agnico Eagle Mines Ltd. had agreed to buy 8.7 million shares in a concurrent private placement for around C$60 million. The deal is set to increase Agnico Eagle’s stake in Cadillac to about 11%, up from 9.7%, a separate statement showed.
The company is one of Cadillac’s existing shareholders and entered into a royalty agreement in 2023, the preliminary prospectus shows. Franco-Nevada Corp., whose co-founder Pierre Lassonde is Cadillac’s chairman, also agreed a royalty deal at that time.
Cadillac holds claims to property in Ontario where its main Kerr-Addison gold mine is located, as well as Quebec, according to the preliminary prospectus. The mining firm is the latest in a growing Canadian listing pipeline of metals-based listings that also includes BG Gold Capital II Corp. and Amapa Minerals Holdings Inc., which announced the pricing of its IPO on Friday and expects to raise C$140 million.
The offering adds to activity in Canada’s equity capital markets, which have seen $1.81 billion of IPOs this year, excluding blank-check firms and other financial vehicles, up from just $9.3 million of deals in the same period in 2025, data compiled by Bloomberg show.
Also on Friday, Amapa Minerals Holdings Inc. raised C$140 million in its Toronto IPO. Shares are expected to begin trading July 27.
Bank of Montreal, National Bank of Canada and Stifel Financial Corp. led Cadillac’s IPO. The shares are expected to trade Friday on a when-issued basis on the Toronto Stock Exchange under the symbol CADY.
By Stephanie Hughes
No comments:
Post a Comment