Ferroglobe’s Silicon Pact with LONGi
The mining world is abuzz with Ferroglobe PLC‘s recent collaboration with solar technology giant LONGi. The duo unveiled a long-term silicon supply deal effective since the dawn of 2024. Under this three-year agreement, Ferroglobe commits to supplying LONGi with top-notch quartzite and metallurgical grade silicon. This move bolsters LONGi’s strategic resolve to amp up its purchase volume from elite Western silicon providers.
MP Materials’ Financial Maneuver
The landscape of mining finance sees MP Materials Corp. taking center stage. The corporation is geared to offer a hefty sum of $500 million in Convertible Senior Notes due in 2030 for discerning institutional buyers. This batch of senior unsecured obligations guarantees semi-annual interest payouts and is slated for maturity on March 1, 2030. The notes also harbor the unique ability to morph into cash, MP Materials’ common stock, or a fusion of both at the company’s discretion.
Cleveland-Cliffs’ Financial Juggling Act
On a parallel financial front, Cleveland-Cliffs Inc. announced a substantial $750 million offering in senior unsecured guaranteed notes set to mature in 2032. Aptly exempt from the grasp of the Securities Act’s registration stipulations, these notes come engraved with the stamp of approval by the company’s principal wholly-owned domestic arms, with certain exceptions. Notably, these proceeds are earmarked for the comprehensive buyback or redemption of Cleveland-Cliffs’ prevailing 6.750% Senior Secured Notes that were due in 2026.
Expressing optimism about the refinancing gambit, Cleveland-Cliffs’ Senior Vice President of Finance, Paul R. Finan, underscored the savvy decision to transition from the 2026 secured notes to more favorable 2032 unsecured notes, spurred by a downturn in call prices and buoyant high-yield market conditions. This strategic financial gambit liberates the corporation from a staggering $3.7 billion in secured debt, fortifies its financial agility, tweaks leverage dynamics, and keeps interest expenses locked in.
BHP Group Limited’s Strategic Plays
BHP Group Limited is steadfast in its strategic chess moves, sealing non-binding deals for the entire potash output across both phases of the sprawling mine taking shape in Jansen, Saskatchewan. Further solidifying its position, BHP is eyeing conversion of these agreements into firm offtakes within 12 to 18 months. Meanwhile, BHP CEO Ragnar Udd has quashed rumors about the acquisition of the dormant Cobre Panama copper mine from First Quantum Minerals.
Newmont Corporation’s Financing Endeavors
Lastly, Newmont Corporation and its subsidiary, Newcrest Finance Pty Limited, have embarked on a private offering stint for their notes due in 2026 and 2034, buoyed by guarantees from Newmont USA Limited. The lion’s share of the proceeds from this offering is set to retire the entire outstanding debt under Newmont’s revolving credit facility, with any surplus funds earmarked for general corporate applications. This strategic stride follows Newmont’s judicious deployment of its revolving credit facility and cash reserves to slash approximately $1.9 billion in bilateral credit debt stemming from the acquisition of Newcrest Mining Limited.
