Image takes a second glance at gold

Rio Tinto (ASX: RIO) posted a 9% year-on-year increase in copper equivalent production and its second-highest Q1 Pilbara iron ore production since 2018, up 13% year-on-year.The miner said the quarter was impacted by two cyclones, while warning of growing uncertainty around supply chains and costs due to conflict in the Middle East.Rio Tinto recorded an 8mt impact to iron ore shipments from Tropical Cyclones Mitchell and Narelle and a .9mt impact to bauxite production from Cyclone Narelle.Rio Tinto chief executive Simon Trott comments on the Q1 results.“Operating excellence drove 9% YoY copper equivalent1 production growth across our portfolio as the Oyu Tolgoi copper mine continues to ramp up as planned and our integrated aluminium business, again, delivered a strong performance,” he said.“Our Pilbara iron ore mines performed strongly, while shipments were impacted by two cyclones in the quarter.“We achieved the historic land exchange at Resolution Copper, with our project team focused on unlocking the next phase of one of the world’s largest untapped copper deposits.“The unmatchable mix and scale of our portfolio has ensured growth and supply chain resilience against changing operating conditions as we continue to closely monitor the evolving situation in the Middle East.”Rio Tinto says the impacts of the Middle East conflict have been limited on the supply-side while commodity prices have responded favourably.Iron ore, copper and lithium operations remained largely unaffected.As for fuel, Rio says higher diesel prices steepened its cost curve while higher jet fuel prices did not disrupt the business.Fatal incidents at Simandou and Kennecott led to both operations shutting down during the quarter. The operations were progressively restarted once conditions allowed.“Safety is the foundation of our business,” Mr Trott said.“The tragic loss of two colleagues this year, at Simandou and Kennecott, is a stark reminder that we must ensure everyone goes home safely at the end of every shift.”A staged restart at the Kennecott underground project commenced April 16.

BHP backs Chinese $1.69b SolGold takeover bid Major SolGold shareholders — including BHP (ASX: BHP) and Newmont (ASX: NEM) — have vowed to support a takeover from China-based Jiangxi Copper (JCC) for the right price. If JCC, SolGold’s largest shareholder, can formalise an offer of 56c (£0.28) per London stock exchange-listed share, the other major shareholders have agreed to hand over the keys to SolGold’s crown jewel — the Cascabel copper-gold project in Ecuador. Hosting the high-grade Alpala deposit, the Cascabel project is positioned to emerge as a significant global copper and gold mine. Both BHP and Newmont, who each hold a 10.3% stake, have provided a letter of intent to JCC indicating their support of the revises possible offer. Max Capital and Nichola Mather, who hold 5.1% and 2.8% respectively, have also issued letters of intent. JCC has been a significant shareholder in SolGold since December 2022 and owns 12.2% of the issued share capital of SolGold which, combined with the letters of intent, represents 40.7% of the issued share capital of SolGold. SolGold’s board of directors have indicated to JCC that if an offer that meets the terms is made, they would be minded to recommend the offer to shareholders. 

Liontown Limited (ASX: LTR) has signed an offtake agreement for 150,000wmtpa of spodumene concentrate with world-leading lithium manufacturer Canmax Technologies.The agreement assures the supply of spodumene concentrate over 2027 and 2028 from Liontown’s Kathleen Valley project in WA.

Fenix Resources (ASX: FEX) is bracing its Mid-West operations in WA for the impacts of Tropical Cyclone Narelle and diesel fuel delivery uncertainty linked to global supply constraints.The combined impact of weather disruption and constrained fuel supply could affect mining and haulage activities for Fenix. To manage the situation, the company is scaling back non-essential operations while prioritising processing and haulage.The Bureau of Meteorology has indicated the cyclone could impact the Gascoyne Coast before tracking south through the Mid-West, prompting the Mid-West Port Authority to activate cyclone response procedures which will temporarily close all shipping operations at Geraldton Port.Fenix expects to maintain sufficient fuel supplies in the near-term, supported by existing stockpiles, allowing the miner to continue to process and haul iron ore to the port of Geraldton.Despite these current challenges, Fenix has maintained its FY26 guidance of 4.2-4.8mt of iron ore sales at a C1 cash cost of $70-$80/wmt on the expectation the port operations recommence in early April 2026 and diesel fuel supply conditions stabilise.Fenix said it does not intend to revise its guidance at this stage, as the underlying assumptions for its three-year production plan and Weld Range development strategy remain unchanged.