B08 Metal Ore Mining

Rio Tinto and BHP Billiton enter new era of dividends

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 3-Aug-16

The dividend payouts of BHP Billiton and Rio Tinto will be closely scrutinised in the August 2016 reporting season, after their progressive dividend policies were scrapped earlier in the year. BHP has committed to paying shareholders a minimum of 50 per cent of its underlying attributable profit as dividends, while Rio Tinto’s new dividend policy will take into account its financial results and future earnings outlook. Meanwhile, analysts polled by Bloomberg generally expect Rio Tinto to post a 2016 interim underlying net profit after tax of $US1.56bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, BLOOMBERG LP, VUMA

Australia overdue a big minerals find: Rio Tinto

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 16 : 2-Aug-16

Rio Tinto’s head of exploration, Stephen McIntosh, is among the speakers at the annual Diggers & Dealers Forum on 2 August 2016. He will outline Rio’s plans to team up with smaller resources groups to find the next big minerals deposit in Australia, noting that the nation’s last major Tier 1 discovery was more than two decades ago. He will also stress the need for regulatory reform to reduce the compliance burden for exploration projects. Meanwhile, BC Iron has posted a 2015-16 net loss of $A80m and revenue of $A151.3m.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DIGGERS AND DEALERS FORUM, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG

‘Plenty of life’ in the gold dog yet

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 22 : 2-Aug-16

The share prices of Australian gold producers have rallied in the last year, prompting speculation as to whether the gains are sustainable. Saracen Mineral Holdings MD Raleigh Finlayson has indicated that a fall in the gold price could create buying opportunities for the group, while Doray Minerals is seeking offshore acquisitions due to the high price of local gold assets and the dearth of quality projects up for sale. The outlook for the gold sector will be under scrutiny at the annual Diggers & Dealers conference in Western Australia.

CORPORATES
SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, DORAY MINERALS LIMITED – ASX DRM, DIGGERS AND DEALERS FORUM, NORTHERN STAR RESOURCES LIMITED – ASX NST, ST BARBARA LIMITED – ASX SBM

Samarco dam disaster swells BHP’s exceptional items bill

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 29-Jul-16

BHP Billiton has advised that its 2015-16 financial accounts will include an additional $US1bn worth of impairment charges associated with the Samarco iron ore tailings dam disaster in Brazil. Exceptional items in the resources giant’s full-year accounts are expected to top $US7b ($A9.4bn). BHP’s Samarco joint venture partner, Vale, has also revealed significant impairment charges as a result of the disaster. Resumption of production at Samarco is now unlikely to begin until 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, SUPREME COURT OF JUSTICE (BRAZIL)

Fortescue to challenge Rio Tinto’s cost crown

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 17 & 22 : 28-Jul-16

Fortescue Metals Group’s iron ore production cost fell to $US13.10 per tonne in June 2016, and averaged $US14.31/tonne during the June quarter. Fortescue expects its C1 production costs to be within the range of $US12 to $US13/tonne in 2016-17, and the group expects its iron ore shipments to be between 165 million and 170 million tonnes for the year. Fortescue has significantly reduced its production costs in recent years, with unit costs averaging $US34.03 per tonne in 2014. Fortescue shares rose $A0.29 to $A4.41 on 27 July.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD

Rio Tinto staff brace for more restructuring, cutbacks

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 19 : 28-Jul-16

Rio Tinto has advised that Armando Torres will succeed Andrew Woodley as CEO of Oyu Tolgoi LLC on 1 August 2016. Rio Tinto is tipped to announce further changes throughout its business in the wake of its recent move to streamline its operations into four divisions. The group’s iron ore division is expected to be among those affected by the restructuring, particularly given the success of rival Fortescue Metals Group in reducing its production costs.

CORPORATES
RIO TINTO LIMITED – ASX RIO, OYU TOLGOI LLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP

Northern Star improves dividend after annual profit climbs 65pc

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 27-Jul-16

Australian-listed Northern Star Resources has reported a 2015-16 net profit of $A151.4m, which is 65 per cent higher than previously. Most analysts had expected the gold producer to book a profit of about $A166m, while its full-year dividend of $A0.07 per share was also lower than some analysts had forecast. Northern Star Resources has also reported that its all-in sustaining cost of production was $US780 an ounce in 2015-16.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWCREST MINING LIMITED – ASX NCM, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, RBC CAPITAL MARKETS

Ratings agencies demand debt before acquisitions for BHP

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 15 & 20 : 27-Jul-16

Matthew Moore of credit ratings agency Moody’s says BHP Billiton should give priority to reducing its debt rather than pursuing acquisitions. May Zhong of Standard & Poor’s agrees, arguing that BHP should allocate a significant proportion of its free discretionary cashflow over the next year to reducing debt. Zhong adds that any acquisitions should comprise commodities that it already produces. BHP is among the bidders for Anglo American’s coking coal assets in Queensland.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, ANGLO AMERICAN PLC, RIO TINTO LIMITED – ASX RIO, MITSUBISHI CORPORATION

Dividends back at Newcrest

roymorgansocial Leave a comment

Original article by Barry FitzGerald
The Australian – Page: 21 : 26-Jul-16

Australian-listed Newcrest Mining produced 598,037 ounces of gold during the June 2016 quarter, compared with 636,521 ounces in the March quarter. Full-year output was at the lower end of its guidance of between 2.4 million and 2.6 million ounces. However, the group slashed its net debt by 27 per cent to $A2.1bn in 2015-16, prompting some analysts to forecast that it will pay a dividend for the first time since 2013.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, CREDIT SUISSE (AUSTRALIA) LIMITED

Miners more worried about Qld laws than global markets

roymorgansocial Leave a comment

Original article by Mark Ludlow
The Australian Financial Review – Page: 6 : 25-Jul-16

A new report by the Queensland Resources Council highlights the key issues of concern for executives in the state’s mining sector. The latest "state of the sector" report shows that uncertainty regarding State Government policy and regulatory issues are the main concerns for the industry. QRC CEO Michael Roche notes that environmental regulation laws in particularly are a major concern for industry leaders.

CORPORATES
QUEENSLAND RESOURCES COUNCIL LIMITED, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, QUEENSLAND NICKEL PTY LTD, AUSTRALIAN LABOR PARTY