B08 Metal Ore Mining

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

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