B08 Metal Ore Mining

BHP Billiton makes debt key priority

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Original article by Peter Ker
The Australian Financial Review – Page: 17 & 20 : 18-Aug-16

BHP Billiton’s net debt topped $US26.1bn ($A34bn) in 2015-16, which is its highest level in three decades. However, CEO Andrew Mackenzie believes that the resources group’s debt is unlikely to rise any further in the near-term, and he has identified reducing debt as one of its priorities. Meanwhile, Matthew Moore of Moody’s says the ratings agency has retained BHP’s negative outlook, and he has warned that the group’s "A3" credit rating could be downgraded if it does not make progress in improving its credit metrics.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOODY’S INVESTORS SERVICE INCORPORATED, RIO TINTO LIMITED – ASX RIO, STANDARD AND POOR’S CORPORATION, DEUTSCHE BANK AG, SAMARCO MINERACAO SA, ANGLO AMERICAN PLC

Worst is over for BHP after $8.2bn loss

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Original article by Matt Chambers
The Australian – Page: 21 & 24 : 17-Aug-16

BHP Billiton CEO Andrew Mackenzie is upbeat about the resources group’s outlook in 2016-17, after it posted a loss of $US6.39bn ($A8.27bn) for 2015-16. The result was marred by factors such as impairment charges associated with its US shale assets, lower commodity prices and the tailings dam disaster at the Samarco iron ore joint venture. BHP’s underlying profit fell from $US6.4bn to $US1.215bn, while the full-year dividend payout has fallen from $US1.24 per share to just $A0.30.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, ABERDEEN ASSET MANAGEMENT LIMITED

Barriers stifle growth, says BHP

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Original article by Paul Garvey
The Australian – Page: 1 & 2 : 17-Aug-16

BHP Billiton CEO Andrew Mackenzie has stressed the importance of Australia’s trade relationship with China, and warned that global economic growth could be threatened by a growing international push toward protectionism. He has also criticised a proposal by Western Australian National Party leader Brendan Grylls to impose an iron ore levy on BHP and Rio Tinto, arguing that they already make a major contribution to government revenue at state and federal level.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, SAMARCO MINERACAO SA, AUSGRID PTY LTD

Newcrest’s Cadia ambitions grow

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 16-Aug-16

Australian-listed Newcrest Mining has posted a 2015-16 underlying profit of $US323m, which is 24 per cent lower than previously but in line with analysts’ forecasts. Meanwhile, CEO Sandeep Biswas says the gold producer will examine options for increasing the Cadia mine’s ore processing capacity beyond the 32 million tonnes per year for which it currently has regulatory approval. Shareholders will receive an unfranked dividend of $US0.075 per share, which is the first payout in more than three years.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ALLAN GRAY AUSTRALIA PTY LTD, SHAW AND PARTNERS LIMITED

MMG races to ramp up copper

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Original article by Matt Chambers
The Australian – Page: 23 : 15-Aug-16

MMG’s Las Bambas copper mine in Peru is on track to achieve full-year production of about 348,000 tonnes of copper concentrate, after output rose from 31,470 tonnes to 87,142 tonnes in the June 2016 quarter. Macquarie Group had forecast production of just 75,000 tonnes in the second quarter, and it anticipates output of 450,000 tonnes in 2017. Macquarie has upgraded its recommendation on MMG shares from "neutral" to "outperform", and its share price target has been raised from $A3.15 to $A5.80.

CORPORATES
MMG LIMITED – ASX MMG, MACQUARIE GROUP LIMITED – ASX MQG, GUOXIN INTERNATIONAL INVESTMENT CORPORATION LIMITED, CITIC LIMITED, XSTRATA AG, GLENCORE PLC

BHP faces record $8.9bn loss

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Original article by Paul Garvey
The Australian – Page: 23 : 15-Aug-16

BHP Billiton is tipped to post a 2015-16 loss of $US6.8bn ($A8.9bn), with underlying earnings of less than $US1.1bn. The full-year result will be marred by factors such as the impact of lower commodity prices, a massive write-down associated with its US petroleum assets and the impact of the Samarco iron ore tailings dam disaster in Brazil. However, analysts polled by Bloomberg are upbeat about BHP’s outlook, forecasting earnings of about $US2.35bn in 2016-17.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, BLOOMBERG LP, UBS HOLDINGS PTY LTD, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA

Fund managers cautious on resources rally

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 18 : 15-Aug-16

The benchmark S&P/ASX 200 has gained 3.5 per cent so far in 2016. In contrast, the resources sector (excluding gold stocks) has gained about 15 per cent in the year to date. However, some analysts have questioned whether the sector’s recent performance can be sustained. ST Wong of Prime Value Asset Management suggests that further economic stimulus measures in China will be needed in order to boost demand for commodities.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, PRIME VALUE ASSET MANAGEMENT LIMITED, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, FORAGER FUNDS MANAGEMENT PTY LTD, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, SOUTH32 LIMITED – ASX S32, WHITEHAVEN COAL LIMITED – ASX WHC, MACMAHON HOLDINGS LIMITED – ASX MAH, MONADELPHOUS GROUP LIMITED – ASX MND, BHP BILLITON LIMITED – ASX BHP

Man who tipped iron ore upturn sees it going on

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Original article by Jasmine Ng
The Australian Financial Review – Page: 22 : 12-Aug-16

The iron ore price has averaged around $US53 per tonne so far in 2016. Prestige Economics president Jason Schenker has forecast that the price of the steel input will average $US55 per tonne for the full calendar year. He also expects it to trade at around $US60 per tonne in the second half, while he says it will rise to $US62 in 2017 and $US72 in 2018. Schenker had forecast in October 2015 that the iron ore price would rebound, citing factors such as economic stimulus measures in China.

CORPORATES
PRESTIGE ECONOMICS LLC, ABN AMRO BANK NV, METAL BULLETIN LIMITED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Resources on the rebound, but is it time to get on board?

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 11-Aug-16

A rise in the spot prices of some commodities may signal a recovery in the resources sector. Investors are optimistic. The share prices of Australian-listed mining companies have risen 25 per cent since the beginning of 2016. Fortescue Metals Group’s stellar performance is particularly impressive. The stock has risen from $A1.44 in January to $A4.50 on 9 August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BELL POTTER SECURITIES LIMITED

Newmont to mull Barrick Super Pit deal

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 11-Aug-16

US-based Newmont Mining Corporation has indicated that it could seek to gain full ownership of the Super Pit gold mine in Western Australia. Barrick Gold recently flagged the possible sale of its 50 per cent stake in the massive mine. Newmont CEO Gary Goldberg has stressed that organic growth rather than acquisitions remains the big miner’s primary focus, but adds that its knowledge of the Super Pit could make it an exception. He notes that Newmont acquired the Cripple Creek & Victor mine in 2015 at a time when the gold price was lower.

CORPORATES
NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, ANGLOGOLD ASHANTI LIMITED – ASX AGG, DIGGERS AND DEALERS FORUM, CREDIT SUISSE (AUSTRALIA) LIMITED