B08 Metal Ore Mining

BHP dividend not sacred

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Original article by Matthew Stevens, Amanda Saunders, Mark Ludlow
The Australian Financial Review – Page: 1 & 10 : 26-Nov-15

BHP Billiton’s progressive dividend policy is under scrutiny amid falling commodity prices and a downturn in its share price. BHP chairman Jac Nasser has indicated that the policy will be reviewed when the group’s 2015-16 interim results are released in February 2016. The progressive dividend policy was introduced in 2001 by former chairman Don Argus, who says it was never intended to be in place permanently. BHP has not reduced its dividend payout since 1988.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, RIO TINTO LIMITED – ASX RIO, QUEENSLAND RESOURCES COUNCIL LIMITED, BILLITON PLC

Rio Tinto to approve $US1b South of Embley expansion

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Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 19 : 26-Nov-15

Australian-listed Rio Tinto has declined to comment on speculation that its board of directors is about to approve development of its South of Embley bauxite project in Queensland. The $A1.4bn project has been delayed due a range of factors, including environmental concerns. Annual production is expected to be around 22.5 million tonnes, and this could potentially rise to around 50 million tonnes per annum.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Iron ore plunges to 10-year low

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Original article by Daniel Palmer
The Australian – Page: Online : 25-Nov-15

The price of iron ore for immediate delivery to China’s port of Tianjin has fallen by 1.8 per cent to its lowest level in a decade, at $US43.40 per tonne. The previous low of $US44.10 per tonne was recorded in July 2015. The sharp decline in the iron ore price has weighed heavily on Australian producers, with BHP Billiton, Rio Tinto, Fortescue Metals Group, BC Iron and Mount Gibson Iron recording double-digit share price falls in the last month.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, PORT OF TIANJIN, THE STEEL INDEX LIMITED, GUOTAI JUNAN SECURITIES COMPANY LIMITED, VALE SA

Worst yet to come for BHP, says S&P

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Original article by Peter Ker, Perry Williams
The Australian Financial Review – Page: 29 : 25-Nov-15

Standard & Poor’s has left BHP Billiton’s credit rating of "A+" with a negative outlook unchanged. Analyst May Zhong says the tailings dam disaster at the Samarco iron ore joint venture will not have any near-term effect on BHP’s credit rating. However, Zhong adds that factors such as BHP’s progressive dividend policy and the downturn in commodity prices are likely to adversely affect the group’s financial risk profile in 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S CORPORATION, SAMARCO MINERACAO SA, VALE SA, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Newcrest unscathed as NSW mine reopens

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 24-Nov-15

Australian-listed Newcrest Mining has advised that problems with a mill at its Cadia gold mine in New South Wales have been resolved. The mill has resumed production after a 35-day shutdown and has returned to full capacity. Output in the September 2015 quarter had been affected by the shutdown, but Newcrest still expects to achieve its 2015-16 full-year production guidance of 2.4 million to 2.6 million ounces of gold.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, SHAW AND PARTNERS LIMITED, CITIGROUP PTY LTD

BHP tipped to cut dividend to keep rating

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Original article by James Thomson, Peter Ker
The Australian Financial Review – Page: 11 : 24-Nov-15

BHP Billiton’s share price has fallen by 18.3 per cent in the last month, with the stock closing at $A20.07 on 23 November 2015. BHP’s progressive dividend policy has come under scrutiny following the downturn in iron ore and coal prices. Glyn Lawcock of UBS believes that unless prices rebound, the resources giant will have to reduce its dividend to ensure that its credit rating is not downgraded. UBS recently scaled back its 12-month share price target from $A28 to $A24.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ABERDEEN ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S CORPORATION

BHP backs away from progressive dividend

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 20-Nov-15

BHP Billiton CEO Andrew Mackenzie has indicated that the resources group will review its progressive dividend policy in February 2016, when its financial results are released. However, chairman Jac Nasser says that BHP’s balance sheet is its top priority. The progressive dividend policy has come under scrutiny in the wake of a downturn in commodity prices and the tailings dam disaster at BHP’s jointly-owned iron ore project in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, GLENCORE PLC

South32 reviews tailings dams after BHP’s Brazil disaster

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 19-Nov-15

South32 has told shareholders at its 2015 annual meeting that safety is a priority at its mining operations. CEO Graham Kerr said the BHP Billiton spin-off is undertaking a review of its own tailing dams in the wake of the fatal incident at BHP’s Samarco iron ore joint venture in Brazil. He has also indicated that South32 may commission an independent review of its tailings dams. South32 shares closed 3.1 per cent lower at $A1.24 on 18 November.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

Investor challenges BHP: cut dividend

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Original article by Sally Patten
The Australian Financial Review – Page: 24 : 19-Nov-15

BHP Billiton’s progressive dividend policy is likely to come under scrutiny at its 2015 annual meeting in Perth. Some fund managers do not expect BHP to back down on its policy despite growing pressure to do so, but Anton Tagliaferro of Investors Mutual says it was introduced during the resources boom and the downturn in commodities markets means it is no longer appropriate.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, INVESTORS MUTUAL LIMITED, HAMILTON WEALTH MANAGEMENT PTY LTD, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Fortescue tips iron ore demand, as price falls

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Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 25 : 19-Nov-15

The iron ore price fell by 4.5 per cent to $US45.68 per tonne on 18 November 2015. However, Fortescue Metals Group CEO Nev Power is upbeat about the outlook for iron ore, saying there are signs of an improvement in China’s housing construction market. Power adds that Fortescue is not "actively" considering asset sales at present, and says Chinese steel mills are more likely to look at investing in the sector when the iron ore price begins to rebound.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ATLAS INTERNATIONAL TRAVEL, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, GRANGE RESOURCES LIMITED – ASX GRR, ROY HILL IRON ORE PTY LTD, VALE SA, SAMARCO MINERACAO SA, CLIFFS NATURAL RESOURCES INCORPORATED, RBC CAPITAL MARKETS