Cobalt 27 and $WPM will provide Vale an aggregate of US$690 million in upfront proceeds for a combined purchase of finished cobalt equal to 75% of Voisey's Bay cobalt production commencing January 1, 2021.
Cobalt 27 ($KBLT) Acquires US$300MM Cobalt Stream on Vale’s Voisey’s Bay Mine Expansion and Announces C$300MM Bought Deal Offering of Common Shares To Fund Stream Acquisition
Vale will deliver to Cobalt 27, an amount of finished cobalt equal
to 32.6% of the cobalt production from Voisey’s Bay commencing January
1, 2021.
Once an aggregate of approximately 10.8kt (23.8mmlb) of cobalt has
been delivered to Cobalt 27, which would occur once Voisey's Bay cobalt
production after January 1, 2021 reaches approximately 33.1kt
(73.0mmlb), the proportion of cobalt production delivered to Cobalt 27
will reduce to 16.3%.
Cobalt 27 will pay Vale cash consideration of US$300 million upon closing.
Cobalt 27 will make ongoing payments (the "Ongoing Payments") equal
to 18% of the Cobalt Reference Price for each pound of cobalt delivered
under the Cobalt Stream, until Cobalt 27 has recovered the full value
of the Advance Amount through Vale's deliveries of finished cobalt under
the Cobalt Stream. After this time, the Ongoing Payments will increase
to 22% of the Cobalt Reference Price.
Global gold-backed ETF holdings added 15 tonnes(t) to 2,484t in May. Europe and Asia drove inflows as European funds have responded strongly in the past two months. North American fund flows reversed their early 2018 trend as they lost 2.3% of assets, likely a result of the volatile prices in the gold market which left gold lower by 60bps (in dollar terms) on the month.
Volatility and weakness in the gold market were largely driven by a stronger dollar (DXY +2.3% on the month). However, USD-hedged gold was higher by 1.4% on the month. This highlights our view that having some allocation to USD-hedged gold helps risk-adjusted returns by lowering price volatility in periods when currency prices fluctuate.
North American funds lost 30t (US$1.2bn, 2.3% of AUM) European funds saw solid net inflows in May, growing by 26t (US$1.2bn, 2.8%) Total fund holdings in Asia rose by 21t (US$862mn) growing assets by 20% Funds in other regions lost 2t or 6% of assets
Global gold-back ETF holdings up 116t in 2018
European inflows have caught North American inflows on the year, while Asian funds have grown 20%, led by Bosera Gold ETF which has grown 114%
Codelco retains CEO Nelson Pizarro at helm of world's top copper producer
SANTIAGO (Reuters) - Chile's Codelco, the world's top copper producer, said on Thursday its board of directors asked Chief Executive Nelson Pizarro to stay at the helm and move forward with an ambitious, 10-year overhaul of its sprawling but aging mines.
Nelson Pizarro, Chief Executive Officer of Chile's state copper giant Codelco, attends a news conference in Santiago, Chile March 29, 2018. REUTERS/Ivan Alvarado
The board made the decision to retain Pizarro in its first meeting since Chile's conservative president, Sebastian Pinera, appointed Juan Benavides, a businessman and former CEO of retailer Falabella, as Codelco's chair.
"The board expressed its confidence in current CEO Nelson Pizarro, and appreciates his willingness to lead the process of transformation the company is facing," the state-owned miner said in a statement.
Pizarro, an industry veteran and ex-mining engineer, was first appointed under center-left President Michelle Bachelet in 2014. He helped spearhead a belt-tightening program at Codelco that allowed it to maintain productivity despite a 9 percent drop in ore grades since 2013.
The company last year delivered $3 billion in profits to Chile's coffers, accounting for 16 percent of the South American nation's exports and more than one-third of its copper production.
Reporting by Dave Sherwood; Editing by Peter Cooney
