Top Stories for Feb. 14, 2024:
1. Royal Gold, Inc. (RGLD) announced a significant agreement with Centerra Gold Inc. (CGAU) to extend the lifespan of the Mount Milligan Mine until 2035.
This compelling deal involves a $125 million immediate cash and gold payment to Royal Gold, along with long-term financial interests. It encourages further investment by Centerra, potentially prolonging the mine’s operation beyond 2035.
CEO Bill Heissenbuttel expressed his optimism about the agreement, stating, “This announcement demonstrates our willingness to work with our operating counterparties and be flexible and creative in order to find mutually beneficial opportunities to maximize value.”
2. Reliance Steel & Aluminum Co. (RS) has entered into a definitive agreement to acquire all outstanding equity interests and real estate assets of American Alloy Steel, Inc.
This acquisition is set to enhance Reliance’s value-added processing capabilities, with American Alloy contributing approximately $310 million in net sales for 2023.
CEO Karla Lewis expressed enthusiasm about the acquisition, adding, “American Alloy adds specialty carbon steel plate to Reliance’s product portfolio as well as new fabrication capabilities.”
3. IperionX Limited (IPX) is making significant progress in its titanium metal production, aiming to commercially scale its operations.
IperionX is on track to install its HAMR titanium furnace in the U.S. by early 2024 and commence production by mid-year. The company has also received a $2.4 million payment from a $12.7 million Department of Defense grant, marking a major advancement in its commercial-scale titanium manufacturing.