B08 Metal Ore Mining

Evolution buys coveted Cowal gold mine

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 26-May-15

Barrick Gold Corporation will sell its Cowal gold mine in New South Wales to Evolution Mining. The deal will increase Evolution’s annual gold output to more than 800,000 ounces, making it Australia’s second-largest listed gold miner. Jo Battershill of UBS says the Cowal’s mines $US550m ($A704m) sale price is near his estimate of fair value. Evolution will partially finance the deal via a $A248m capital raising.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, BARRICK GOLD CORPORATION, UBS HOLDINGS PTY LTD, NEWCREST MINING LIMITED – ASX NCM, LA MANCHA RESOURCES INCORPORATED, NORTHERN STAR RESOURCES LIMITED – ASX NST

BHP Billiton fined $31m over Olympics largesse

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Original article by John Kehoe, Nick McKenzie, Richard Baker, Lucille Keen
The Australian Financial Review – Page: 8 : 22-May-15

The US Securities & Exchange Commission has fined resources giant BHP Billiton $US25m ($A31.6m) over the provision of hospitality services to government officials during the 2008 Beijing Olympic Games. BHP was found to have breached anti-bribery laws by providing Olympic tickets and hotel accommodation to officials from Asian and African countries, including China. BHP was a sponsor of the 2008 Olympics.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, AUSTRALIAN FEDERAL POLICE, WESTERN AUSTRALIA. CORRUPTION AND CRIME COMMISSION

FMG defends plan to expand

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Original article by Peter Ker, Shaun Drummond
The Australian Financial Review – Page: 19 : 21-May-15

Fortescue Metals Group’s Peter Meurs says encouraging results from the first stage of a magnetite project in Western Australia may prompt it to proceed to the next stage. The Iron Bridge joint venture has initially targeted two million tonnes of magnetite ore, and Meurs believes that this could be increased to 20 million tonnes. He has refuted suggestions that this would add to the global oversupply of iron ore, arguing that the bulk of iron ore exported from Australia is haematite ore.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHANGHAI BAOSTEEL GROUP CORPORATION, FORMOSA HA TINH STEEL CORPORATION, GRANGE RESOURCES LIMITED – ASX GRR, MINERALS COUNCIL OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CHINA INTERNATIONAL TRUST AND INVESTMENT CORPORATION, ANSHAN IRON AND STEEL COMPANY, GINDALBIE METALS LIMITED – ASX GBG

BHP Billiton fears ease ahead of South32 debut

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 18-May-15

South32 will be among Australia’s top 50 listed companies when its shares begins trading on a deferred settlement basis on 18 May 2015. Paul Young of Deutsche Bank expects the BHP Billiton spin-off to trade at about 0.7 times net present value, adding that BHP shares could be re-rated as a result of the demerger. Some of BHP’s institutional shareholders will watch the initial performance of South32 shares before deciding to increase or decrease their holdings in the spin-off.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, DEUTSCHE BANK AG, ABERDEEN ASSET MANAGEMENT LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, X2 RESOURCES PARTNERS LP, GLENCORE PLC

BHP and Rio remain in Aberdeen’s good books

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Original article by Matthew Smith
The Australian Financial Review – Page: 8 : 15-May-15

Aberdeen Asset Management’s Robert Penaloza has retained overweight positions in BHP Billiton and Rio Tinto, despite the sharp decline in the iron ore price. The head of Australian equities has been actively buying BHP shares since mid-April 2015, and he may continue to buy shares in both of the resources giants. Penaloza notes that their low production costs means BHP and Rio are very resilient when commodities are both rising and falling.

CORPORATES
ABERDEEN ASSET MANAGEMENT LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE TREASURY

OZ Minerals CEO sees bright copper future

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 14-Apr-15

Australian-listed copper miner OZ Minerals will consider acquisitions, but CEO Andrew Cole has ruled capitalising on low valuations to expand into iron ore. He is upbeat about the outlook for copper, forecasting that demand will remain strong. OZ Minerals will release the results of a review of its operations on 20 April 2015. Its shares closed 0.8 per cent lower at $A3.80 on 13 April

CORPORATES
OZ MINERALS LIMITED – ASX OZL, TORO ENERGY LIMITED – ASX TOE, SANDFIRE RESOURCES NL – ASX SFR

Iron ore fall may hit Rio, BHP capex

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Original article by Tess Ingram
The Australian Financial Review – Page: 1 & 6 : 14-Apr-15

Iron ore was trading at around $US47.53 per tonne on 13 April 2015, and some analysts are increasingly bearish about its outlook. Citigroup now expects iron ore to average just $US37 per tonne for the remainder of 2015, while it is forecast to average $US40 for the following three years. Australian Treasurer Joe Hockey recently warned that iron ore could test the $US35 level. Analysts suggest that BHP Billiton and Rio Tinto could opt to reduce capital expenditure in response to such a scenario, rather than reduce their dividends

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED, ATLAB AUSTRALIA

Fortescue vows to curb production

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 1 & 9 : 13-Apr-15

Australian-listed Fortescue Metals Group has ruled out increasing its iron ore output while current market conditions prevail. The group’s annual production is around 165 million tonnes, but it has the capacity to lift this to 180-200 million tonnes without the need for additional capital investment. Rival iron ore miners BHP Billiton and Rio Tinto are ramping up production despite the sharp fall in the iron ore price

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMGRIO TINTO LIMITED – ASX RIOBHP BILLITON LIMITED – ASX BHPVALE SAAUSTRALIA. DEPT OF THE TREASURYATLAS IRON LIMITED – ASX AGOALLIANCEBERNSTEIN AUSTRALIA LIMITED

More juniors doomed, says investor

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Original article by Sally Rose
The Australian Financial Review – Page: 20 : 13-Apr-15

The price of iron ore fell to its lowest level in a decade during the week ended 10 April 2015, and Bert Koth of Denham Capital expects it to fall further. He warns that a number of smaller mining companies in Australia and worldwide are likely to collapse in coming years, due to factors such as falling commodity prices and high levels of debt. Koth does not expect an upturn in the small-cap mining sector for another 5-6 years

CORPORATES
DENHAM CAPITAL MANAGEMENT LPATLAS IRON LIMITED – ASX AGOFORTESCUE METALS GROUP LIMITED – ASX FMGBC IRON LIMITED – ASX BCIMOUNT GIBSON IRON LIMITED – ASX MGXBHP BILLITON LIMITED – ASX BHPRIO TINTO LIMITED – ASX RIOTORONTO STOCK EXCHANGEAUSTRALIAN SECURITIES EXCHANGEPEMBROKE CAPITAL ADVISORS LIMITEDAUCTUS MINERALS PTY LTD

Haoma Mining protects itself from Atlas Iron’s woes

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 10-Apr-15

Australian-listed Haoma Mining has put a caveat on two of Atlas Iron’s iron ore tenements in the Pilbara region of Western Australia. Haoma holds the exploration rights for non-iron ore minerals, and chairman Gary Morgan says the group wanted to protect its interests should Atlas sell the tenements. Shares in Atlas Iron were placed in a trading halt in early April 2015, pending a review of its operations

CORPORATES
HAOMA MINING NL – ASX HAO, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI