B08 Metal Ore Mining

Miners fret over US nickel deal

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 30-Oct-23

Australian nickel producers such as BHP, Chalice Mining and Wyloo Metals are concerned that Indonesian rivals will be given access to subsidies via the Biden administration’s Inflation Reduction Act. Wyloo CEO Luca Giacovazzi contends that a US free-trade agreement on nickel with Indonesia would make it difficult to justify investing in Australian and Canadian nickel mines, due to the higher cost of production. Several US senators have backed the Australian miners’ stance, noting amongst other things that Chinese interests control much of Indonesia’s nickel production.

CORPORATES
BHP GROUP LIMITED – ASX BHP, CHALICE MINING LIMITED – ASX CHN, WYLOO METALS PTY LTD

Rinehart’s war chest full for lithium spree

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 27 & 28 : 28-Oct-23

The owners of the Roy Hill iron ore mine received $2.25bn in dividends in the year to 30 September, and an additional $800m in October. Gina Rinehart’s Hancock Prospecting was paid almost $2.14bn in dividends, as the largest shareholder in the Roy Hill project. Roy Hill has posted a full-year net profit of $2.7bn, compared with $3.16bn previously, while it shipped a record 63.3 million tonnes of iron ore. The remaining mine life of the existing Roy Hill resource is estimated to be less than 10 years, and Hancock Prospecting is ramping up its investment in the lithium sector. It has built an 18 per cent stake in takeover target Azure Minerals, having previously taken a 19.9 per cent stake in Liontown Resources.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, AZURE MINERALS LIMITED – ASX AZS, LIONTOWN RESOURCES LIMITED – ASX LTR

Why Rhodes Ridge is Rio’s silver bullet

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 15 & 19 : 23-Oct-23

Rhodes Ridge has long been considered as the best iron ore deposit in Western Australia’s Pilbara region, but for a while it was regarded as the most heavily litigated mining deposit in the world. However, it is now being hailed as Rio Tinto’s ‘silver bullet’, as it will end Rio’s reliance on its network of 17 mines across the Pilbara that it uses to produce the differing ore types that make up its ‘flagship’ Pilbara Blend; it can also be serviced by Rio’s existing infrastructure, doing away with the need to build new rail infrastructure.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Fortescue on track to hit 2030 greening target

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 18-Oct-23

Fortescue Metals Group director Larry Marshall says he agreed to join the iron ore producer’s board in August after being satisfied that the target of decarbonising its mining operations by 2030 is achievable. Marshall adds that the technology that is needed to decarbonise mining is in place and simply needs to be built. Solar and wind power will be a key focus of Fortescue’s decarbonisation strategy; the company estimates that it will require 1,000 megawatts of capacity of both forms of renewal energy.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Rio Tinto boosts its shipments

roymorgansocial Leave a comment

Original article by Glen Norris
The Australian – Page: 16 : 18-Oct-23

Rio Tinto has advised that its Pilbara iron ore shipments for the September quarter totalled 83.9 million tonnes, which is one per cent higher year-on-year. However, iron ore production was down one per cent at 83.5 million tonnes. Rio Tinto expects its iron ore shipments for calendar 2023 to be at the upper end of its initial full-year guidance of 320 to 335 million tonnes. Meanwhile, Rio Tinto’s aluminium and bauxite production rose by nine per cent and two per cent respectively year-on-year.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Moody’s warns on Fortescue executive churn

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 12 : 20-Sep-23

Ratings agency Moody’s has reaffirmed its ‘Ba1’ credit rating for iron ore miner Fortescue Metals Group. However, Moody’s has warned that the high level of turnover within Fortesue’s executive ranks in the last several years could adversely affect the company’s credit rating. The firm also notes that the high level of stock ownership by Fortescue chairman Andrew Forrest increases governance risks, while it adds that looming final investment decisions on five clean energy projects may put further pressure on Fortescue’s balance sheet.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED

Billionaire MinRes boss charts a new course for lithium

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 13 : 30-Aug-23

Mineral Resources has reported a 2022-23 net profit of $244m, which is 30 per cent lower than previously. The result was marred by a $552m writedown in the value of its iron ore assets. However, revenue rose by 40 per cent to $4.7bn and underlying EBITDA was 71 per cent higher at $1.8bn. MD Chris Ellison says Mineral Resources is looking at bypassing battery manufacturers and chemicals producers to sell lithium directly to car manufacturers. He has also indicated that the company’s Yilgarn iron ore project is likely to reach the end of its mine life within three years.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

BHP rejects talk of iron ore price freefall

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 13 & 18 : 23-Aug-23

BHP has posted a 2022-23 underlying net profit of $US13.4bn ($20.8bn), which is 37 per cent lower than previously. Its iron ore division reported underlying EBITDA of $US16.6bn for the year, down from $US21.7bn previously but in line with market expectations. BHP produced 285 million tonnes of iron ore in the Pilbara during 2022-23, while it expects output of 282 to 294 million tonnes in 2023-24. CEO Mike Henry has also downplayed fears that the iron ore price might fall below $US80 per tonne if China reduces its steel production. Meanwhile, lower prices and changes to the Queensland government’s royalties regime resulted in a sharp fall in the earnings of BHP’s coking coal mines in 2022-23.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Goldman steels for iron ore slide into bear market

roymorgansocial Leave a comment

Original article by Alex Gluyas
The Australian Financial Review – Page: 27 : 9-Aug-23

Iron ore futures in Singapore have fallen to below $US99 per tonne, down from a cyclical high of $US114.95 per tonne in July. Goldman Sachs expects the decline to be sustained, forecasting that the iron ore price will fall by another 12 per cent to $US90/tonne in the second half of 2023. Nicholas Snowdon of Goldman Sachs says factors such as lower steel production in China and an increase in global iron ore supply will result in a 68 million tonne surplus of the steel input in the six months to 31 December.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED

Chinese steel has peaked: Rio boss

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 13 & 16 : 2-Aug-23

Official figures show that China’s crude steel production fell by 21.7 million tonnes year-on-year in 2022, to 1.01 billion tonnes. Rio Tinto CEO Jakob Stausholm believes that China’s steel production has peaked and output will be flat over the next several years, before starting to decline by the end of this decade. However, Stausholm expects global demand for iron ore to remain strong, as steel production in other developing countries increases. He adds that Chinese steel producers may also opt to build steel mills in other countries.

CORPORATES
RIO TINTO LIMITED – ASX RIO