B08 Metal Ore Mining

Newcrest dividend back on the cards

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

Newcrest Mining has reported a 2015-16 interim net profit of $US63m, compared with $US180m previously. The result was marred by a sharp fall in the price of gold and copper during the half-year. Newcrest’s net debt fell by $US235m to $US2.65bn during the period. while its gearing eased from 29.3 per cent to 28.1 per cent. Newcrest has previously indicated that it may resume paying a dividend when its gearing falls to 25 per cent.

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

Rio Tinto’s Simandou dream evaporates

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 15-Feb-16

The Simandou iron ore project in Guinea has a book value of $US10bn on Rio Tinto’s accounts, although it is worth less than this given the current price of the steel input. Rio’s 2015-16 full-year results included a $US2bn writedown on the project, which is likely to cost about $US20bn ($A28bn) to develop. While Rio Tinto is scheduled to release a feasibility study on the project, some analysts do not expect Simandou to proceed for at least a decade.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, STANDARD AND POOR’S CORPORATION, VALE SA, WORLD BANK, INTERNATIONAL FINANCE CORPORATION

Rio Tinto set to slash dividend as profits dive

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 12-Feb-16

Rio Tinto has posted a 2015 statutory loss of $US866m, while its underlying earnings for the calendar year were 51 per cent lower at $US4.5bn. The downturn in the iron ore price resulted in a sharp fall in revenue, to $US34.8bn. Shareholders will receive a full-year dividend of $US2.15 per share, but Rio Tinto will abolish its progressive dividend policy in 2016 in favour of a payout ratio. It expects to pay a full-year dividend of around $US1.10 per share in 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ABERDEEN ASSET MANAGEMENT LIMITED, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, STANDARD AND POOR’S CORPORATION

RBC picks BHP Billiton over Rio Tinto

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Original article by Amanda Saunders
The Australian Financial Review – Page: 30 : 11-Feb-16

Paul Hissey of RBC Capital has a share price target of $A15 on BHP Billiton, whose shares are trading at around $A15.67 at present. The analyst also has a "sector perform" rating on the resources giant, and forecasts that BHP will reduce its dividend by 75 per cent when its 2015-16 interim results are released later in February 2016. Meanwhile, Hissey has a share price target of $A37 and an "underperform" rating on Rio Tinto, whose stock is trading at $A41.53.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, RBC CAPITAL MARKETS, GLENCORE PLC

OZ Minerals reaps the reward of high grades

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 11-Feb-16

OZ Minerals has posted a 2015 net profit of $A130.2m, compared with $A48.5m for the previous calendar year. CEO Andrew Cole is upbeat about the group’s outlook for 2016, forecasting an increase in production of both gold and copper. He is confident that OZ Minerals will be able to keep paying a dividend while developing the Carrapateena copper project. Shareholders will receive a full-year dividend of $A0.20 per share.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BELL POTTER SECURITIES LIMITED, CITIGROUP PTY LTD, AUSTRALIAN FEDERAL POLICE, RENAISSANCE MINERALS LIMITED – ASX RNS

Rio set to slash share dividend payout

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 8-Feb-16

Most analysts expect Rio Tinto’s full-year dividend for 2015 to be $US2.21 per share, compared with $US2.15 previously. However, there is growing speculation that Rio will review its progressive dividend policy after the release of its full-year results on 11 February 2016. BHP Billiton is also widely tipped to abandon its progressive dividend policy, and Pengana Capital’s Tim Schroeders notes that there would be little benefit for Rio in being the only large miner to retain this policy.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, PENGANA CAPITAL LIMITED, VALE SA, GLENCORE PLC, ANGLO AMERICAN PLC, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, STANDARD AND POOR’S CORPORATION, ALCAN INCORPORATED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD

South32 takes $2.4bn hit, signals job cuts

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Feb-16

Shares in South32 rose by 14.2 to $A1.085 on 4 February 2016, as it flagged plans to significantly reduce costs. The BHP Billiton spin-off will scale back capital expenditure and production at its manganese mines in South Africa, which will result in the loss of 620 jobs. South32 has also indicated that it is likely to pursue job cuts in Australia, while its financial accounts will include $US1.7bn ($A2.4bn) worth of write-downs.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, MORGANS FINANCIAL LIMITED, CONSOLIDATED MINERALS LIMITED, QUEENSLAND NICKEL PTY LTD, GRANGE RESOURCES LIMITED – ASX GRR, MOUNT GIBSON IRON LIMITED – ASX MGX, SHAW RIVER MANGANESE LIMITED – ASX SRR

Tweak to BHP dividend won’t cut it, says S&P

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 4-Feb-16

Standard and Poor’s recently downgraded BHP Billiton’s credit rating to "A", and analyst May Zhong says a minor reduction in its dividend will not be sufficient to avert a further downgrade. Zhong has declined to specify how large the dividend reduction would need to be, but notes that other factors also contributed to the downgrade. BHP is under pressure to abandon its progressive dividend policy when its 2015-16 interim results are released on 23 February 2016.

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

Why BHP, Rio fear Sanders

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 4-Feb-16

The future of the proposed Resolution copper mine joint venture between BHP Billiton and Rio Tinto could depend on the outcome of the 2016 US presidential election. The mine’s development is opposed by Senator Bernie Sanders, who is seeking nomination as the Democratic Party’s candidate. He has narrowly lost the Iowa caucus to Democrats frontrunner Hillary Clinton, after previously being regarded as having little chance of being a contender for the party’s nomination.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, DEMOCRATIC PARTY (UNITED STATES)

Palmer may be forced to end his lawfare

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Original article by Sarah Elks
The Australian – Page: 5 : 3-Feb-16

Lawyers representing the administrators of Queensland Nickel may order legal action against China-based CITIC to be discontinued, due to concerns about the likely cost of further litigation. The Clive Palmer-backed company launched a $A137.5m civil damages claim against CITIC in 2015, although most of the legal action by Palmer against the Chinese group is being undertaken via Mineralogy. Queensland Nickel’s administrators may also seek to settle litigation over an alleged breach of environmental laws in order to avoid further legal costs.

CORPORATES
QUEENSLAND NICKEL PTY LTD, CITIC LIMITED, MINERALOGY PTY LTD, FTI CONSULTING PTY LTD, SUPREME COURT OF WESTERN AUSTRALIA, SINO IRON PTY LTD, SUPREME COURT OF QUEENSLAND, QUEENSLAND. DEPT OF ENVIRONMENT AND RESOURCE MANAGEMENT, TOWNSVILLE MAGISTRATE’S COURT