Mining and Exploration

In 2009 Ray Smith was parachuted in as CEO and president to rescue True Energy Trust. Now 18 months into the job, he talks to Gay Sutton about the remarkable turnaround, about renaming the company Bellatrix Exploration Ltd., and about his ambitions to make it the rising star of the Western Canadian Basin.

Agnico-Eagle has reported record quarterly revenue, net income and gold production in its second quarter 2010 results, thanks to higher prices for gold, zinc, silver and copper and the impact of four new gold mines commencing operations in the past 14 months.

Record quarterly net income of $100.4 million, or $0.64 per share, includes a non-cash foreign currency translation gain of $17.4 million, as well as a one-time tax recovery of $21.2 million. The result also includes non-cash stock-based compensation expense of $8.1 million.

Newmont Mining Corporation, the world’s second largest mining operator, more than doubled its profits in its second quarter results, thanks to higher gold and copper prices.

Net income rose to $382 million ($0.78 per share) compared to $162 million ($0.33 per share) in the second quarter of 2009. Gold production was reported at 1.3 million ounces, a rise of 12 per cent over Q2 2009.

Nevada produced 420,000 equity ounces of gold, slightly higher than the year ago quarter due to higher underground production at Midas and Leeville.

African Barrick Gold has reported a half year net profit rise of 217 per cent.

Profits at the miner soared to $99 million (approx. €76 million) on the back of increased production and the rising price of gold.

Revenue rose by 64 per cent to $424 million (approx. €326 million) and production by 23 per cent to 356,208 ounces. Realised gold prices jumped by 28 per cent to $1,155 (approx €888) per ounce.

Harry Winston Diamond Corporation has said it will purchase a nine percent interest in Canada’s Diavik diamond mine from Kinross Gold Corporation for approximately US$220 million.

Kinross acquired the Diavik diamond mine from Toronto-based Harry Winston in March 2009 for $150 million. At the time, the company said: "We've followed the diamond industry in Canada for some time and felt this was a good time to make an investment in both Harry Winston and the partnership."

Shareholders in Dana Petroleum are attempting to force the UK-based oil explorer to open takeover talks with South Korean suitor Korea National Oil Corp (KNOC), according to reports.

The Financial Times has reported that Schroders, Dana's biggest shareholder with a 13 per cent stake, has urged its board to engage with KNOC over its £1.67 billion indicative offer.

De Beers, the name synonymous with diamonds, reported increased earnings for the six months ended June 30, with both sales volumes and prices increasing significantly following an increase in demand for rough diamonds.

In a statement released today, De Beers reported net earnings of $301 million, up from $3 million a year ago. Production increased by 133 percent to 15.4 million carats and sales of rough diamonds were up 84 percent to $2.6 billion.

Mining group African Minerals has signed a deal with a Chinese steelmaker for a $1.5 billion (£989 million) investment that will help it develop what could be the biggest iron ore mine in the world.

The memorandum of understanding which has been signed with Shandong Iron & Steel—one of the world's largest mill operators—is subject to due diligence and the two parties agreeing a discount for the iron ore produced.

BP has announced it has fitted a larger, tighter containment cap on the ruptured Gulf of Mexico wellhead that has been leaking oil since the Deepwater Horizon explosion in April.

The company will test the new cap's internal pressure shortly by closing its valves. If successful, the company hopes the new cap will stem the flow until more permanent measures can be taken.

Last year, international exploration and development company Tullow Oil discovered significant oil resources in the environmentally sensitive remoteness of East Africa. General manager Dr Brian Glover talks to Gay Sutton about the importance of this discovery, and the challenges it presents.