Top Stories for Feb. 14, 2024:
Royal Gold’s Agreement with Centerra Gold
Royal Gold, Inc. (RGLD) announced a significant agreement with Centerra Gold Inc. (CGAU) to extend the Mount Milligan Mine’s operation. The deal promises Royal Gold $125 million in immediate cash and gold, along with long-term financial interests.
This innovative arrangement, which preserves the original streaming agreement, presents the opportunity for further investment by Centerra to potentially extend the mine’s operation beyond 2035 through exploration and resource development.
Bill Heissenbuttel, President and CEO of Royal Gold, emphasized the willingness of the company to be flexible and creative to maximize value. He stated, “Mount Milligan is a large and potentially long-life operation, and our support is designed to allow Centerra to extend the mine life and add long-term value for each company’s stakeholders.”
Reliance Steel’s Acquisition of American Alloy Steel
Reliance Steel & Aluminum Co. (RS) has entered into a definitive agreement to acquire all of American Alloy Steel, Inc.’s outstanding equity interests and related real estate assets. The acquisition is expected to bolster Reliance’s value-added processing capabilities.
American Alloy operates five service centers in the U.S., a plate fabrication business, and a joint venture in Canada, serving a variety of industries in North America and certain international markets. With reported annual net sales of approximately $310 million in 2023, this acquisition presents significant growth potential.
Karla Lewis, President and Chief Executive Officer of Reliance, expressed enthusiasm about the acquisition, stating, “American Alloy adds specialty carbon steel plate to Reliance’s product portfolio as well as new fabrication capabilities. We look forward to continuing to grow the American Alloy business, especially in value-added processing, as well as leveraging our collaboration efforts to expand the product and service offerings of both American Alloy and our existing Reliance companies.”
IperionX’s Expansion in Titanium Production
IperionX Limited (IPX) is on track to commercially scale its titanium metal production. The company’s HAMR titanium furnace is scheduled for installation in the U.S. early in 2024, with production set to commence by mid-year.
IperionX’s Titanium Manufacturing Campus in Virginia is making significant progress, supported by a $2.4 million payment from a $12.7 million Department of Defense grant. This marks a major advancement in the company’s commercial-scale titanium manufacturing efforts.
