B08 Metal Ore Mining

Rio loses ‘A’ status as Moody’s bites

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 26-Feb-16

Moody’s Investors Service has downgraded the credit rating of Rio Tinto from "A3" to "Baa1", and indicated that a further downgrade is possible. The ratings agency is also reviewing the "A1" credit rating of BHP Billiton, although Standard & Poor’s recently opted to leave Rio Tinto’s "A-" credit rating unchanged for now. The recent spate of ratings downgrades reflects the impact of the downturn in the iron ore price.

CORPORATES
RIO TINTO LIMITED – ASX RIOMOODY’S INVESTORS SERVICE INCORPORATEDBHP BILLITON LIMITED – ASX BHPANGLO AMERICAN PLCGLENCORE PLCVALE SA

South32 axes jobs after loss of $2.4bn

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Original article by Paul Garvey
The Australian – Page: 19 & 20 : 26-Feb-16

BHP Billiton spin-off South32 has posted a 2015-16 interim loss of US1.7bn ($2.4bn). When impairment charges are excluded, the group’s underlying profit of $US26m was 94 per cent lower than previously. South32’s coking coal mines in the Illawarra region of New South Wales and the Cerro ­Matoso nickel mine in Colombia posted big losses during the half-year, and CEO Graham Kerr has signalled that they could be closed unless there is an upturn in commodity prices. South32 will retrench more than 750 employees in Australia.

CORPORATES
SOUTH32 LIMITED – ASX S32BHP BILLITON LIMITED – ASX BHPPATERSONS SECURITIES LIMITED

BHP Billiton shares plunge amid questions over strategy

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 & 25 : 25-Feb-16

BHP Billiton’s Australian-listed shares shed 8.2 per cent on 24 February 2016, after its London-listed stock fell by 6.05 per cent in overnight trading. The bearish sentiment followed comments by CEO Andrew Mackenzie, who forecast a sustained period of commodity price weakness and market volatility. Meanwhile, BHP has flagged the potential for acquisitions if assets of sufficient quality are put on the market, but analysts say there is likely to be strong competition for such assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG, RIO TINTO LIMITED – ASX RIO, JEFFERIES AND COMPANY, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, TECK CORPORATION, FIRST QUANTUM MINERALS LIMITED, MMG LIMITED – ASX MMG, GLENCORE PLC, X2 RESOURCES PARTNERS LP, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, SAMARCO MINERACAO SA

Fortescue Metals looks to M&A for growth

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 25-Feb-16

Fortescue Metals Group has posted a 2015-16 interim net profit of $US319m, compared with $US331m previously. Revenue fell from $US4.8bn to $US3.3bn. CEO Nev Power says the iron ore group is open to acquisitions if appropriate opportunities become available, and it has not ruled out diversifying into other commodities. Fortescue has also signalled that it will seek to reduce its break-even price for exports to China to $US28.80 per tonne by mid-2016, but stresses that it will not try to compete with BHP Billiton and Rio Tinto to become the lowest-cost exporter.

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

BHP cuts dividend 75pc; goes hunting for deals

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 19 : 24-Feb-16

BHP Billiton has abandoned its progressive dividend policy after posting a 2015-16 interim net loss of $US5.7bn. Underlying earnings were 92 per cent lower at $US412m. The half-year results were marred by write-downs associated with BHP’s oil and gas business, and a restructuring has resulted in the departure of the heads of its iron ore and petroleum divisions. Shareholders will receive an interim dividend of just $US0.16 per share, compared with $US0.62 previously.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ABERDEEN ASSET MANAGEMENT LIMITED, ANGLO AMERICAN PLC, GLENCORE PLC, ARGO INVESTMENTS LIMITED – ASX ARG

Newcrest pays $36m to settle class action

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Original article by Barry FitzGerald
The Australian – Page: 20 : 23-Feb-16

Gold producer Newcrest Mining has agreed to a $A36m out-of-court settlement in a class action over its disclosure standards. The case was scheduled to begin on 29 February 2016, but Newcrest has decided that a settlement is in the best interests of shareholders. Plaintiff law firm Slater & Gordon initiated a class action on behalf of shareholders with regard to Newcrest’s breach of continuous disclosure requirements in 2012 and 2013.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

BHP urged to revive the faith

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Original article by Amanda Saunders
The Age – Page: 21 : 22-Feb-16

The 2015-16 interim financial results of BHP Billiton are likely to be closely scrutinised by investors. Pengana Capital’s Tim Schroeders says the resources group needs to restore investors’ faith and outline its strategy to achieve future growth. He believes that BHP will abandon its progressive dividend policy in favour of a payout ratio, while Paul McTaggart of Credit Suisse anticipates a reduction in capital expenditure over the next two years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PENGANA CAPITAL LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, BLOOMBERG LP, VUMA CONSENSUS, RIO TINTO LIMITED – ASX RIO, SAMARCO MINERACAO SA

Evolution cash flow lift allows dividend plan

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Original article by Tess Ingram
The Australian Financial Review – Page: 28 : 19-Feb-16

Listed gold producer Evolution Mining has posted a 2015-16 interim net loss of $A15.5m, compared with a profit of $A43.1m previously. The result was marred by factors such as acquisition costs and accounting adjustments. The group’s underlying profit of $A107.9m was 150 per cent higher than previously, and revenue rose by 87 per cent to $A607.1m. Investors will receive an unfranked interim dividend of $A0.01 per share.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, RBC CAPITAL MARKETS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, INDEPENDENCE GROUP NL – ASX IGO

Battery boom heats lithium gains for Australian miners

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Original article by David Stringer, Martin Ritchie
The Australian Financial Review – Page: 28 : 19-Feb-16

Shares in Australian-listed lithium miners have rallied on the strength of the rising price of lithium carbonate and growing demand for lithium ion batteries. General Mining Corporation’s share price has risen by 1,000 per cent over the last 12 months, while Pilbara Minerals has gained about 1,200 per cent since mid-2014. Citigroup expects both demand for lithium carbonate and the price of the commodity to keep rising beyond 2016.

CORPORATES
GENERAL MINING CORPORATION LIMITED – ASX GMM, PILBARA MINERALS LIMITED – ASX FTN, CITIGROUP INCORPORATED, CHENGDU TIANQI INDUSTRY (GROUP) COMPANY LIMITED, ALBERMARLE CORPORATION, TESLA MOTORS INCORPORATED, NISSAN MOTOR COMPANY LIMITED, RENAULT AUTOMATION SA, VOLKSWAGEN AG, AUDI AG, BENCHMARK MINERAL INTELLIGENCE, NAVIGANT CONSULTING PTY LTD

South32 eyes Anglo’s manganese

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 19-Feb-16

Australian-listed South32 has indicated that it would be interested in buying out its manganese joint venture partner, Anglo American. South32 holds a 60 per cent stake in the mining and smelting operation, and a spokesman says the group would be willing to assume full ownership at an appropriate price. Anglo American has signalled its intention to sell a significant number of assets, including coking coal mines in Queensland.

CORPORATES
SOUTH32 LIMITED – ASX S32, ANGLO AMERICAN PLC, UBS HOLDINGS PTY LTD, ROYAL BANK OF CANADA, BANK OF AMERICA CORPORATION