B08 Metal Ore Mining

BHP braces for iron ore challengers

roymorgansocial Leave a comment

Original article by Matt Bell
The Australian – Page: 13 & 18 : 19-Mar-24

Iron ore futures briefly fell below $US100 per tonne in Singapore trading on Monday; Macquarie Equities in turn downgraded BHP’s shares from ‘outperform’ to ‘neutral’, in response to the uncertain outlook for iron ore in the medium-term. Meanwhile, BHP has used a shareholders’ briefing to warn that the iron ore market will become more competitive by the end of this decade, with production from mines in Africa set to boost global supply. However, CFO Vandita Pant said that BHP will have a competitive edge, given that it is the lowest-cost producer of iron ore. Meanwhile, CEO Mike Henry said a decision on the future of the Nickel West business is likely to be made shortly.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE EQUITIES LIMITED

Cyclone Megan wreaks havoc on South32 manganese port

roymorgansocial Leave a comment

Original article by Tom Richardson, Brad Thompson
The Australian Financial Review – Page: 7 : 19-Mar-24

Diversified miner South32 has declined to comment on the damage to export infrastructure associated with its Groote Eylandt manganese mine in the Northern Territory. A bulk carrier struck a loading wharf during strong winds that emanated from Cyclone Megan, causing damage to both the wharf and the vessel. Sources have questioned whether the Groote Eylandt port will become operational again, citing factors such as the cost of repairs and the mine’s remaining life is limited. It is the world’s biggest source of manganese, although South32 has previously indicated that the mine could be exhausted by the end of this decade.

CORPORATES
SOUTH32 LIMITED – ASX S32

More pain for nickel, lithium as deluge bites

roymorgansocial Leave a comment

Original article by Cecile Lefort
The Australian Financial Review – Page: 27 : 28-Feb-24

The price of nickel fell by 44 per cent in 2023, and Sam Berridge of Perennial Value Management believes that it may not rebound for some time. He notes that Indonesia is continuing to ramp up its production of low-cost nickel, while the growing use of lithium ferrous phosphate in battery technology will reduce demand for the use of nickel in electric vehicles. Meanwhile, Vivek Dhar from the Commonwealth Bank says economic activity in China will be the key driver of the outlook for nickel, given that the nation accounts for 40-60 per cent of base metal demand. However, Berridge thinks the lithium price may have bottomed, after falling by 85 per cent in 2023.

CORPORATES
PERENNIAL VALUE MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Forrest blames green move for executive exodus

roymorgansocial Leave a comment

Original article by Rosie Lewis
The Australian – Page: 13 & 16 : 27-Feb-24

Fortescue’s executive chairman Andrew Forrest has rejected claims that the company has experienced an unusually high number of executive departures. Speaking at the National Press Club on Monday, Forrest conceded that some executives had left it because of its transition from a "fossil fuel-burning company to a green energy company", while he said its turnover was around half when compared to the mining industry as a whole. Forrest said that Fortescue’s senior management team was beginning to settle down now.

CORPORATES
FORTESCUE LIMITED – ASX FMG, NATIONAL PRESS CLUB (AUSTRALIA)

Dam disaster, nickel weigh on BHP

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 18 : 21-Feb-24

BHP has posted a 2023-24 interim statutory net profit of $US927m ($1.42bn), which is 86 per cent lower than previously. The result was marred by one-off charges relating to its Nickel West division and the Samarco tailings dam disaster in Brazil. However, BHP’s underlying profit of $US6.6bn was in line with the previous corresponding period. Meanwhile, CEO Mike Henry says BHP is the world’s lowest-cost major iron ore producer thanks to its Pilbara operations, which produced and shipped about 142.1 million tonnes in the half-year. Its full-year guidance is for 282 to 294 million tonnes.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, SAMARCO MINERACAO SA

BHP train drivers to get $300,000 plus bonus

roymorgansocial Leave a comment

Original article by Ewin Hannan
The Australian – Page: 7 : 16-Feb-24

BHP has averted industrial action after agreeing to a new pay deal with its iron ore train drivers in the Pilbara that will see their base salary rise to more than $300,000 over the next four years. The in-principle agreement with the Mining & Energy Union includes an immediate pay rise of four per cent, followed by four annual increases of four per cent. The train drivers will also receive two retention bonuses of $20,000; the first will be paid immediately, with the second to be paid in 12 months’ time. The protected industrial action that was slated to disrupt iron ore rail shipments to Port Hedland from Friday will no longer proceed.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINING AND ENERGY UNION

BHP hit in $5.4b nickel wipeout

roymorgansocial Leave a comment

Original article by Brad Thompson, Peter Ker, Tom Rabe
The Australian Financial Review – Page: 1 & 17 : 16-Feb-24

BHP’s Nickel West division has made a loss of $US200m ($308m) over the last six month, due to the sharp downturn in the price of the battery metal. BHP has advised that its half-year accounts will include a pre-tax writedown of $5.4bn in the value of the nickel business; the resources group has also warned that it could potentially place the nickel operations – which employ about 3,000 people – in ‘care and maintenance’ mode. Meanwhile, the Western Australian government may provide royalty relief to struggling nickel producers, but Premier Roger Cook says governments at all levels need to step in and assist them to ride out the "significant structural disruption" to the industry.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

BHP’s train drivers to strike

roymorgansocial Leave a comment

Original article by Ewin Hannan
The Australian – Page: 4 : 13-Feb-24

BHP’s iron ore shipments from the Pilbara are set to be disrupted after 97 per cent of train drivers who are members of the Mining & Energy Union voted in favour of industrial action. The union has organised a 24-hour strike on Friday as part of negotiations for a new enterprise agreement. The train drivers rejected a proposed agreement in December, and BHP’s Warren Wellbeloved says it was a " fair and generous offer". The strike will be the first since 2008 in the Pilbara’s iron ore industry, which is largely deunionised.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINING AND ENERGY UNION

WA gold miners Silver Lake, Red 5 in $2.2bn merger deal

roymorgansocial Leave a comment

Original article by Giuseppe Tauriello
The Australian – Page: 15 & 18 : 6-Feb-24

Shares in gold miner Red 5 rose by three per cent to $0.34 on Monday, in response to a proposed merger with Silver Lake Resources. Red 5 is offering 3.434 of its shares for every Silver Lake share, and Red 5 shareholders will own 51.7 per cent of the merged entity if the deal is approved. The deal has the support of both groups’ boards, and Red 5 chairman Russell Clark does not expect a bidding war to emerge. The combined company would be the fifth-largest gold miner on the Australian sharemarket, with annual production of about 445,000 ounces.

CORPORATES
RED 5 LIMITED – ASX RED, SILVER LAKE RESOURCES LIMITED – ASX SLR

Citi tips iron ore to reach $US150 on China hopes

roymorgansocial Leave a comment

Original article by Alex Gluyas
The Australian Financial Review – Page: 23 : 30-Jan-24

Iron ore futures traded in Singapore rose to $US136 a tonne after the People’s Bank of China announced plans to inject more liquidity into the financial system. There have also been reports that the Chinese government may consider measures to stabilise the nation’s sharemarket. Citigroup has in turn maintained its forecast for the price of iron ore to reach $US150/tonne over the next three months. The firm has also upgraded its copper price forecast to $US8,800 per tonne.

CORPORATES
CITIGROUP INCORPORATED, PEOPLE’S BANK OF CHINA