B08 Metal Ore Mining

Small miners close to default: RBA

roymorgansocial Leave a comment

Original article by Geoff Winestock, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 19-Oct-15

The Reserve Bank of Australia’s latest Financial Stability Review warns that many smaller resources groups are close to defaulting on debt repayments. The central bank says the number of such companies that are at risk of default has reached its highest level since the global financial crisis. Few junior miners have collapsed in 2015, although the outlook for some is uncertain, and several mining services firms have been placed in administration.

CORPORATES
RESERVE BANK OF AUSTRALIA, MIRABELA NICKEL LIMITED – ASX MBN, ATLAS IRON LIMITED – ASX AGO, EMECO HOLDINGS LIMITED – ASX EHL, TERMITE RESOURCES NL, WESTERN DESERT RESOURCES LIMITED, PLUTON RESOURCES LIMITED – ASX PLV, BANDANNA ENERGY LIMITED – ASX BND, WDS LIMITED – ASX WDS, BIG RIM PTY LTD, SARGENT, HEAVY HAULAGE AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Rinehart, Wright win legal battle against Rio Tinto

roymorgansocial Leave a comment

Original article by Jonathan Barrett, Marianna Papadakis
The Australian Financial Review – Page: 10 : 15-Oct-15

The High Court of Australia has ruled in favour of Hancock Prospecting and Wright Prospecting in a case against Rio Tinto over some $A130 million in royalties. Lawyers for the litigants argued successfully that Rio Tinto owed royalties to Hancock Prospecting and Wright Prospecting, as the mining giant still controlled the mineral tenements and exploration licences in Western Australia’s Pilbara region.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, RIO TINTO LIMITED – ASX RIO, SUPREME COURT OF WESTERN AUSTRALIA

BHP may be tempted by ailing mining assets

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 24 : 14-Oct-15

Todd Warren of Colonial First State Global Asset Management says BHP Billiton seems to be becoming more keen to pursue mergers and acquisitions. A number of rival mining groups are believed to be considering asset sales, which could present buying opportunities for BHP. It already holds a 33.75 per cent stake in Glencore’s Antamina copper mine in Peru, which is one of the assets that Glencore may divest. BHP was among the bidders for Barrick Gold Corporation’s Zaldivar copper mine in Chile.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, GLENCORE PLC, BARRICK GOLD CORPORATION, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ANTOFAGASTA PLC, ANGLO AMERICAN PLC, BP PLC, PEABODY ENERGY CORPORATION, TECK CORPORATION, MITSUBISHI CORPORATION, BLACKROCK INCORPORATED

Glencore puts Cobar mine up for sale

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 16 : 13-Oct-15

Debt-laden Glencore is seeking to offload the Cobar copper mine in central western New South Wales. The mine’s output for the first half of 2015 was 24,800 tonnes of copper concentrate and 239,000 ounces of silver. Glencore’s Lomas Bayas copper mine in Chile has also been put on the market, and an unnamed analyst based in London says neither of the assets are likely to be of interest to major mining groups.

CORPORATES
GLENCORE PLC, BLOOMBERG LP, RIO TINTO LIMITED – ASX RIO, XSTRATA AG, X2 RESOURCES PARTNERS LP

OZ Minerals spruiks faster, cheaper Carrapateena plan

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 13 &18 : 7-Oct-15

OZ Minerals has indicated that developing the Carrapateena copper and gold deposit on a much smaller scale than originally planned is its preferred option. OZ estimates that it could reduce the cost of developing the mine to about $A1bn by focusing on higher-grade ore at the shallowest depths. A feasibility study in 2014 had estimated that the original plan for a block cave mine would cost about $A2.98bn. CEO Andrew Cole has stressed that three options for the project remain under consideration.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, KKR AND COMPANY LP, ARGONAUT SECURITIES PTY LTD, ROYAL BANK OF CANADA, BHP BILLITON LIMITED – ASX BHP, PANAUST LIMITED, NEWCREST MINING LIMITED – ASX NCM

Gold stocks take off after gloomy report on US jobs

roymorgansocial Leave a comment

Original article by Stephen Cauchi
The Australian Financial Review – Page: 31 : 6-Oct-15

Data showing that a lower-than-expected 142,000 jobs were created in the US during September 2015 has prompted a rally in the spot price of gold. It rose by 2.2 per cent to $US1,136 per ounce on 2 October, and in turn bolstered support for Australian-listed gold producers. Northern Star Resources rose by 5.9 per cent to a record $A2.85 on 5 October, while Newcrest Mining was 9.5 per cent higher at $A13.80. The jobs data has dampened expectations of a US interest rate rise in the near-term.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, BEADELL RESOURCES LIMITED – ASX BDR, UNITED STATES. FEDERAL RESERVE BOARD, RBC CAPITAL MARKETS, IG MARKETS LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES GOLD INDEX, BANK OF JAPAN, EUROPEAN CENTRAL BANK, SUMITOMO GLOBAL RESEARCH

Junior explorers under pressure

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 28-Sep-15

BDO estimates that about 20 per cent of the 780 smaller resources companies that are listed on the Australian sharemarket do not have active exploration programs. Smaller explorers spent an average of $A481,000 on exploration programs in the June 2015 quarter, compared with $A980,000 during the same period in 2013. Sherif Andrawes of BDO expects more junior explorers to go private or be subject to a reverse takeover.

CORPORATES
BDO AUSTRALIA LIMITED

Citi tips weak recovery in resources for rest of year

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 24-Sep-15

Citigroup notes that market-traded commodities have delivered flat returns at best during the September 2015 quarter. The firm expects only a modest improvement in commodity prices in the fourth quarter, saying prices will be affected by factors such as the uncertain economic outlook in China and excess supply. Citigroup is also bearish about the outlook for the global economy, and now forecasts growth of 2.7 per cent in 2015 and 3.1 per cent in 2016.

CORPORATES
CITIGROUP INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

BHP warns tax changes could result in double whammy

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 21 & 26 : 24-Sep-15

BHP Billiton has advised that its global tax bill for 2014-15 was $US7.3bn, with taxes and royalties in Australia accounting for $US5.2bn ($A7.3bn) of this total. CFO Peter Beaven says the resources group believes that the amount of tax it pays is "very fair", and said nearly all of its profits earned in Australia are subject to taxation in Australia. Beaven adds that while there is need for a debate on tax reform, he cautioned that unilateral tax reform could potentially lead to companies being taxed twice.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Hegarty-backed private equity vehicle snaps up copper mine

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 22-Sep-15

EMR Capital will pay $A45m for the Mt Gordon copper mine in Queensland, which was placed in care and maintenance mode by Aditya Birla Minerals in 2013. EMR was founded by Owen Hegarty and Jason Chang, and the private equity firm acquired the Mt Gordon Mine via its inaugural investment fund. Chang has flagged further acquisitions for EMR in the mining sector, with copper, gold, coking coal and potash assets among the likely targets.

CORPORATES
EMR CAPITAL PTY LTD, ADITYA BIRLA MINERALS LIMITED – ASX ABY, LIGHTHOUSE MINERALS PTY LTD