Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
The companies announced the verified discovery of one of the largest palladium mineral systems in Australia.
Since the Glencore Xstrata merger in May accountants have been reviewing Xstrata assets and the results are not pretty: According to industry sources who spoke to Reuters, the company is set to write-down about $7 billion of the coal and nickel miner’s assets.
The major hit – about $5 billion – will come from nickel operations in New Caledonia, mainly due to low commodity prices. Nickel has lost as much as one-third of its price since 2007.
When the company releases its half-year earnings report on Tuesday it will be the first time investors see a full set of results from the May takeover.
Last week Glencore published production numbers for the half-year showing output in line with forecasts, including a 1% increase in nickel and a 4% rise in coal operations compared to the first half of 2012.
The miner also saw a 20% increase in copper output – an area which the company is actually trying to downsize. Last week rumours swirled that Glencore was close to selling its massive Las Bambas copper project in Peru to a Chinese aluminium group.
Monday’s news did not fall on deaf ears: The company lost more than 2% on its share price on the London exchange. Year-to-date the group has seen a drop of almost 20%.
But Glencore is not the only mega-miner faced with a slew of write-downs. In fact, this $7 billion is not even the biggest: Barrick Gold booked an $8.7 billion impairment charge this quarter.
5 Comments
Mining Man
Although there are many talented people working in the mega mining companies, sadly there are far too many non-mining people in positions they should not be in. People with University degrees who have never mined a thing in their lives like accountants, environmentalists and safety personnel are just parasites and are the reason that costs have grown out of control. Too many people wanting a piece of the pie. One day these mega miners will wake up and realise this and adjust their businesses accordingly.
Nick Marshall
Hear! HEAR!
And now the parasites are out to expect easy pickings: Yesterday they were “financial advisers” then they are “investment bankers”, and now (God help us!) tomorrow’s Mining Magnates, without a clue in the world apart from spin and using other people’s money.
Robert S. Stewart
Amen, amen and amen. I started at the bottom of Snow Lake gold mine with HBM&S and ended up the Chairman/CEO of several global mining houses. None of my companies ever lost a nickel. We kept it simple, focused on mining and producing minerals, and avoided all the leaches. If you haven’t mined, get out of the kitchen. When miners go back to basics, costs will come down, we’ll all be able to compete and sell products for profit. The world still needs us to start the global economy. Without us, there aren’t any materials to manufacture and build. It’s time to dump the lawyers and accountants from the corner offices, and put the brokers back in their boxes.
HSEC Parasite
Mining Man, you know what so many miners sit on their arse with their hand open waiting for the penny to drop. Glad to see you think of HSEC as parasites, without them I’d like to see you go home to your family at night, or operate with keeping in compliance, when the rain shits down HSEC are the bastards slogging it out there while all you sit in the crib hut scared shitless to operate as the unions protect you! Go fu#$ing figure!
Changing Times
Mining Man you are a good example of a dinosuar. The world has moved on and you have been left behind. If you think HSEC is not important then go and live next to a mine in a third world country and listen to the noise, breathe in the poor air quality, drink polluted water and when the mine has closed take in the magnificent view of the waste land that has been created and wonder why you can’t sell your property. When you are looking out at the waste land you might be thinking about the family and friends you lost or who were injured when the mine was operating because no one cared about safety.