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  • Tuesday, September 1, 2015

  • 5:29 PM
    • Horsehead Holding (NASDAQ:ZINC) -4.1% AH after reporting its Mooresboro, N.C., zinc facility produced ~3,200 tons of zinc metal in August, bringing quarter-to-date production to more than 7K tons after two months.
    • The company says August production was limited by equipment downtime primarily related to plugging of lines carrying feedstock, gypsum and lime, which forced idling of the plant for several days; and lower than expected current efficiency in the cell house, which resulted in reduced production for a given power input.
    • ZINC says modifications were made to reduce the frequency of the plugging issues, and current efficiency has since improved and is expected to continue to improve in September.
    | 5:29 PM | 20 Comments
  • 4:46 PM
    | 4:46 PM | 29 Comments
  • 3:15 PM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) sank 10% today in London to hit another record low on growing concerns it may be forced into an equity issue.
    • BofA Merrill estimates that, if current spot commodity prices stretch into perpetuity, Glencore has a $9.3B capital shortfall against the debt target needed to safeguard its credit rating, and would need to raise more than $16B to cut net debt to 2x EBITDA.
    • Merrill says "this confirms what most investors already know about Glencore: It is something of a ‘bull call’ on commodity markets.”
    | 3:15 PM | 1 Comment
  • 3:06 PM
    • Nothing to see here, move along. After crumbling below $40 per barrel last week, the price of the world's most important commodity shot higher by 27% over the three sessions starting on Thursday.
    • Today's 8% decline brings black gold back to $45.35 per barrel, roughly the spot at which it started the week, and at about the same level it was at a month ago.
    • USO -6.5%
    • The teams at Citigroup and Goldman offer competing views on oil. "Sell the news and buy the facts," says a bearish Citi, calling the massive rally a combination of short-covering and chart readers picking bottoms. Reports of OPEC's willingness to talk to non-OPEC producers (Russia) about bringing prices higher "[were] a gross misrepresentation" of the facts, says Citi, noting most OPEC honchos are on holiday, and the lack of any follow-up to the stories suggests there was no change in policy.
    • Goldman thinks there's more to the rally and suggested clients to buy the XLE January $70 call to gain exposure (one could pick it up now for a lot cheaper than when Goldman made the recommendation a few hours back).
    | 3:06 PM | 30 Comments
  • 12:19 PM
    • Freeport McMoRan (FCX -7.4%) is downgraded to Neutral from Buy with an $12 price target, lowered from $20, at Citigroup, which says the copper sector has not reduced production enough to account for falling prices.
    • FCX has guided to strong cash flow of $6.3B for 2016, at $2.25/lb. copper and $54/bbl oil, but the guidance included considerable working capital drawdown, which Citi estimates at $1.8B while saying there is "very little incremental deleveraging opportunity."
    • According to the Citi report, the best opportunity for FCX to improve its free cash flow is to eliminate or at least reduce its exposure to oil and gas.
    • Global miners are having a rough time as weak China data batters stocks: BHP -6.7%, RIO -5.3%, VALE -3.5%, TCK -7.6%.
    | 12:19 PM | 2 Comments
  • 11:48 AM
    • Rare earths producers from China and Japan have approached Molycorp (OTCPK:MCPIQ) about buying some of the bankrupt miner’s non-U.S. assets, Bloomberg reports.
    • The facilities are said to include plants in Asia that produce and process metals, including neodymium, which is used in making magnets for electric cars and wind turbines.
    • The news comes two months after MCP's bankruptcy filing and a week after announcing the company will shut its Mountain Pass facility in California by October.
    | 11:48 AM | 9 Comments
  • 4:53 AM
    • Oil prices are moving sharply lower as investors cover short positions and take profits following an 8% rise in the previous session.
    • The surge was fueled by a downward revision of U.S. oil output and a report that suggested OPEC may be considering cutting production.
    • Since last Thursday, WTI crude has climbed 27.5% - the largest three-day dollar increase since February 2011 and the biggest percentage increase since August 1990 - but where is the commodity heading to now?
    • Crude futures -4.3% to $47.11/bbl.
    | 4:53 AM | 39 Comments
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