B08 Metal Ore Mining

Oz Minerals poised to pounce: Citi

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 7-Jul-15

Citigroup has identified a number of Australian-listed mining groups that could potentially pursue acquisitions in the near-term. They include OZ Minerals, Independence Group, Iluka Resources, Mount Gibson Iron and South32. Citigroup also believes that there is the potential for South32 to become a takeover target, along with Sandfire Resources, Whitehaven Coal, Western Areas, Iluka Resources and Regis Resources.

CORPORATES
CITIGROUP PTY LTD, OZ MINERALS LIMITED – ASX OZL, INDEPENDENCE GROUP NL – ASX IGO, ILUKA RESOURCES LIMITED – ASX ILU, MOUNT GIBSON IRON LIMITED – ASX MGX, SOUTH32 LIMITED – ASX S32, SANDFIRE RESOURCES NL – ASX SFR, WHITEHAVEN COAL LIMITED – ASX WHC, WESTERN AREAS LIMITED – ASX WSA, REGIS RESOURCES LIMITED – ASX RRL, EVOLUTION MINING LIMITED – ASX EVN, OCEANAGOLD CORPORATION – ASX OGC, BARRICK GOLD CORPORATION, LA MANCHA RESOURCES INCORPORATED, KENMARE RESOURCES PLC, X2 RESOURCES PARTNERS LP, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, NORTH LIMITED, ALCAN INCORPORATED, RIVERSDALE MINING LIMITED

Iron ore price slump hits mining majors

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 7-Jul-15

The iron ore price’s fall to $US54 per tonne weighed heavily on Australian-listed producers of the steel input on 6 July 2015. Rio Tinto shed 2.57 per cent to close at $A51.16 and Fortescue Metals Group was down 5.7 per cent at a six-year low of $A1.71. Their break-even prices are estimated to be around $US32 and $US39 per tonne respectively.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTEK COMPUTERS LIMITED, VALE SA, UBS HOLDINGS PTY LTD, BARCLAYS BANK PLC

Local juniors under pressure after iron ore price slide

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 & 20 : 6-Jul-15

The price of iron ore was trading at $US55.26 per tonne on 3 July 2015, having surrendered the bulk of recent gains during the week. UBS estimates that the break-even price for many smaller listed iron ore producers is just below the current price of iron ore, including BC Iron, Atlas Iron and Arrium. Glyn Lawcock of UBS notes that smaller iron ore miners have significantly reduced their costs since late 2014, and he expects further cost reductions in the next 12 months.

CORPORATES
UBS HOLDINGS PTY LTD, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, ARRIUM LIMITED – ASX ARI, ROY HILL IRON ORE PTY LTD, MOUNT GIBSON IRON LIMITED – ASX MGX, GRANGE RESOURCES LIMITED – ASX GRR, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOOD MACKENZIE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, RBC CAPITAL MARKETS, CITIGROUP PTY LTD

South32 may be a target

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 : 30-Jun-15

X2 Resources is estimated to have access to about $US13bn worth of equity and debt to finance acquisitions in the resources sector. BHP Billiton spin-off South32 is regarded as a potential target for X2, which is headed by former Xstrata CEO Mick Davis. South32 shares have shed around 20 per cent since the demerger, and it could well become a takeover target if the downturn is sustained. Glencore is also seen as a possible bidder for South32.

CORPORATES
X2 RESOURCES PARTNERS LP, SOUTH32 LIMITED – ASX S32, GLENCORE PLC, NOBLE GROUP LIMITED, TPG CAPITAL LP, BARRICK GOLD CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, CITIGROUP INCORPORATED, LIBERUM CAPITAL LIMITED, XSTRATA AG

Write-downs in mining nearly erase deal value

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Citigroup has warned that there may be further asset impairment charges in the global mining industry, particularly in the metallurgical and coking coal sector. The firm estimates that around 90 per cent of the value of mergers and acquisitions transacted by large mining groups since 2007 has been written off. Aluminium, iron ore and nickel assets have generated the most impairment charges over the last eight years, while Rio Tinto has the highest level of impaired assets.

CORPORATES
CITIGROUP INCORPORATED, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, VALE SA, ALCAN INCORPORATED

BHP-Rio face US opposition to copper mine expansion

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Original article by John Kehoe
The Australian Financial Review – Page: 13 & 18 : 22-Jun-15

The proposed Resolution Copper project in Arizona remains uncertain due to a push to overturn legislation passed by the US Congress for a land-swap deal. Rio Tinto holds a 55 per cent stake in the Resolution Copper joint venture and BHP Billiton holds the remainder. A group of House of Representatives members has introduced legislation to nullify the land-swap, while Apaches object to the project as it is on land adjacent to a sacred site.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, RESOLUTION COPPER MINING LLC, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES), UNITED STATES. DEPT OF THE INTERIOR

South32 faces earnings slide, growing pains hit

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 22-Jun-15

Shares in BHP Billiton spinoff South32 fell by $A0.07 to close at $A1.96 on 19 June 2015, at the stock’s lowest level since its sharemarket debut in mid-May. Sentiment toward South32 has been hit by a slump in the prices of the commodities that it produces, with the spot price of copper falling to its lowest level since 2008. Some observers argue that many of the benefits arising from the demerger – for both South32 and BHP – may not be realised for a number of years.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, SHAW STOCKBROKING LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, LIBERUM CAPITAL LIMITED, ABERDEEN ASSET MANAGEMENT LIMITED, RIO TINTO LIMITED – ASX RIO

Iron ore price hits wall of steel

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 25 : 19-Jun-15

The price of iron ore was trading at $US61.51 per tonne on 18 June 2015, having peaked at $US65.61 in the previous week. National Australia Bank regards $US60 per tonne as a fair price for the steel input given current market conditions, while Fraser Phillips of RBC Capital Markets does not expect the recent gains in the iron ore price to be maintained unless demand for steel improves.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RBC CAPITAL MARKETS, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE CAPITAL PTY LTD, DALIAN COMMODITY EXCHANGE, SHANGHAI FUTURES EXCHANGE

Rio urges long game on China iron ore need

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 19-Jun-15

China’s production of crude steel fell by 1.7 per cent in the March 2015 quarter, with a slowdown in the nation’s residential property market adversely affecting demand for steel. Andrew Harding, the CEO of Rio Tinto’s iron ore division, forecasts that demand for steel in China will remain subdued for the next few years. However, he is upbeat about the outlook for both iron ore and steel in the long-term, due to future strong demand in China and other parts of Asia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CHINA IRON AND STEEL INDUSTRY ASSOCIATION, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

ERA shares tank as prospects cut

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

Shares in Energy Resources of Australia (ERA) shed 25.4 per cent on 15 June 2015, closing at $A0.50. This followed a large sell-off in the previous trading session, after the uranium miner advised that it will not proceed with the Ranger 3 Deeps expansion of its Ranger mine in the Northern Territory. Glyn Lawcock of UBS believes that there is almost no chance that ERA will resume mining at Ranger.

CORPORATES
ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, UBS HOLDINGS PTY LTD, RIO TINTO LIMITED – ASX RIO, ROYAL BANK OF CANADA, PALADIN ENERGY LIMITED – ASX PDN