This morning in metals news: Steel Dynamics recently released its financial guidance for Q3; miner Ivanhoe Mines announced plans to double annual capacity at the Kakula copper mine; and lead prices have lost steam.
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Steel Dynamics releases Q3 guidance
Steel Dynamics reported it expects third-quarter earnings to fall between $0.42 and $0.46 per diluted share.
Meanwhile, the firm’s second-quarter earnings came in at $0.36 per diluted share.
“Third quarter 2020 earnings from the company’s steel operations are expected to be lower than sequential second quarter results, due to metal spread compression more than offsetting increased shipments driven by improved automotive and strong construction demand,” the company said.
Ivanhoe to double capacity at Kakula copper mine
This week, Ivanhoe Mines announced plans to double capacity at the Kakula copper mine.
Ivanhoe said the Kamoa-Kakula joint venture agreed to move forward with acquisition of a second 3.8 million-ton-per-annum concentrator module for the mine. As such, the additional module would double the mine’s capacity, bringing it to 7.6 million tonnes per annum.
“There are many smart people in the mining industry who strongly believe that copper is quickly approaching a supply and demand divergence; where the amount of copper being produced globally will be far outstripped by demand,” said Robert Friedland, co-chairman of Ivanhoe Mines.
Lead prices retrace
Like other metals, the lead price has generally been on the rise since the spring.
From mid-May to mid-August, the LME three-month lead price gained approximately 25%. Furthermore, the price reached as high as $2,014/mt as of Aug. 20.
Since then, however, the lead price has lost steam.
The lead price closed Wednesday at $1,899/mt, down 4.19% month over month.
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