B08 Metal Ore Mining

BHP tipped to cut spending as rout bites

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 24-Aug-15

BHP Billiton will unveil its annual results on 25 August 2015. The company is expected to announce weaker revenue and profit because of depressed commodity prices. Its cost-cutting target is likely to be raised, from the current level of $US4 billion ($A5.4 billion) by 2017. BHP may experience difficulties with adhering to its policy of increasing or at least maintaining its dividend in US dollar terms.

CORPORATES
SOUTH32 LIMITED – ASX S32, FORTESCUE METALS GROUP LIMITED – ASX FMG, OIL SEARCH LIMITED – ASX OSH, DEUTSCHE BANK AG, WORLEYPARSONS LIMITED – ASX WOR, PALADIN ENERGY LIMITED – ASX PDN, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP

Fortescue price hopes still too high for Chinese suitors

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 18-Aug-15

Chinese companies Hebei Iron & Steel and the Tewoo Group are believed to be interested in acquiring stakes in Fortescue Metals Group. Fortescue is under pressure to sell some assets to improve its balance sheet although there is no immediate need to do so. The company is expected to announce $US390 million ($A527 million) in profit for 2014-15, compared with profit of $US2.65 billion in 2013-14.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HEBEI JINXI IRON AND STEEL COMPANY LIMITED, TEWOO GROUP, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Rio capex cut to shore up pay-outs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1&12 : 7-Aug-15

Rio Tinto has reported a 43 per cent decline in underlying earnings to $US2.9 billion for the first half of 2015, compared with $US5.1 billion in the previous corresponding period. Commenting on the results, CEO Sam Walsh said that Rio will reduce capital investment by at least $US2.5 billion over two years. He assured investors that the cuts will not affect the company’s growth prospects.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, UBS AG, DEUTSCHE BANK AG, X2 RESOURCES PARTNERS LP

Gold producers say growth on the agenda

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 6-Aug-15

OceanaGold Corporation and Metals X have announced new acquisitions. OceanaGold is buying Canadian-listed Romarco Metals through a $C856 million ($A884.86 million) takeover offer. Metals X is acquiring RNI’s Grosvenor gold project and Panoramic Resources’ Mount Henry project. Metals X is also trying to buy Tanami Gold’s Central Tanami project, even though Tanami Gold has signed an agreement to sell the asset to Northern Star Resources.

CORPORATES
OCEANAGOLD CORPORATION – ASX OGC, METALS X LIMITED – ASX MLX, RNI NL – ASX RNI, EVOLUTION MINING LIMITED – ASX EVN, ROMARCO MINERALS INCORPORATED, PANORAMIC RESOURCES LIMITED – ASX PAN, BHP BILLITON LIMITED – ASX BHP, NORTHERN STAR RESOURCES LIMITED – ASX NST, TANAMI GOLD NL – ASX TAM, GOLD FIELDS LIMITED, DIGGERS AND DEALERS FORUM

Miners criticise investors chasing instant gratification

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 6-Aug-15

Mining companies are under pressure from investors to deliver quick results, but the nature of the mining sector means that time and effort is needed to make major discoveries. Sandfire Resources MD Karl Simich said that there is no place for short-termism in the sector. Metals X CEO Peter Cook also noted a change in investor expectations and the emphasis on dividends rather than capital appreciation.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, METALS X LIMITED – ASX MLX

Creasy still ‘very happy’ with Independence bid for Sirius

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 5-Aug-15

Sirius Resources’ shareholders will vote on the proposed takeover offer from Independence Group in September 2015. The sharp fall in the suitor’s share price since the bid was revealed in May has significantly reduced the implied value of the bid. Mark Creasy, who holds a 35 per cent stake in Sirius, says he continues to support the bid and adds that there is no indication that a rival bid for Sirius will emerge.

CORPORATES
SIRIUS RESOURCES NL – ASX SIR, INDEPENDENCE GROUP NL – ASX IGO, DIGGERS AND DEALERS FORUM

Rio should unveil ‘another buyback’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 5-Aug-15

Most analysts expect Rio Tinto to post 2015 interim underlying earnings of $US2.4bn (A$3.2bn), compared with $US5.1bn previously. Rio Tinto commenced a $US2bn share buyback in February 2015, and Paul Young of Deutsche Bank says it should use cost and capital expenditure savings to finance another buyback in early 2016. The majority of analysts also expect Rio Tinto to abandon its progressive dividend, although Young forecasts that its existing policy will be retained.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC

Rio should unveil ‘another buyback’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 5-Aug-15

Most analysts expect Rio Tinto to post 2015 interim underlying earnings of $US2.4bn (A$3.2bn), compared with $US5.1bn previously. Rio Tinto commenced a $US2bn share buyback in February 2015, and Paul Young of Deutsche Bank says it should use cost and capital expenditure savings to finance another buyback in early 2016. The majority of analysts also expect Rio Tinto to abandon its progressive dividend, although Young forecasts that its existing policy will be retained.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC

Creasy still ‘very happy’ with Independence bid for Sirius

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Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 5-Aug-15

Sirius Resources’ shareholders will vote on the proposed takeover offer from Independence Group in September 2015. The sharp fall in the suitor’s share price since the bid was revealed in May has significantly reduced the implied value of the bid. Mark Creasy, who holds a 35 per cent stake in Sirius, says he continues to support the bid and adds that there is no indication that a rival bid for Sirius will emerge.

CORPORATES
SIRIUS RESOURCES NL – ASX SIR, INDEPENDENCE GROUP NL – ASX IGO, DIGGERS AND DEALERS FORUM

Miners pin hopes on gold-led resurgence

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Original article by Tess Ingram
The Australian Financial Review – Page: 11 & 16 : 3-Aug-15

Mergers and acquisitions activity in the global mining sector topped $A4.2trn in 2014, according to data from Dealogic. In contrast, there were just $A77.6bn worth of deals involving Australian mining companies and assets. However, a number of recent deals in the local gold mining sector has boosted optimism about the outlook for M&A activity, particularly in the gold industry. Hayden Bairstow of Macquarie Group expects M&A to be a hot topic during the upcoming Diggers & Dealers conference.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DIGGERS AND DEALERS FORUM, NORTHERN STAR RESOURCES LIMITED – ASX NST, EVOLUTION MINING LIMITED – ASX EVN, OCEANAGOLD CORPORATION – ASX OGC, NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, ROMARCO MINERALS INCORPORATED, ANTOFAGASTA PLC, METALS X LIMITED – ASX MLX, RNI NL – ASX RNI, PANORAMIC RESOURCES LIMITED – ASX PAN, TANAMI GOLD NL – ASX TAM, ARGONAUT SECURITIES PTY LTD, PCF CAPITAL GROUP PTY LTD, LION SELECTION GROUP LIMITED – ASX LSX, DORAY MINERALS LIMITED – ASX DRM, MUTINY GOLD LIMITED, ERNST AND YOUNG