B08 Metal Ore Mining

Fortescue to deliver Forrest record pay-out

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 24-Aug-20

The consensus of analysts polled by Bloomberg is that Fortescue Metals Group will post a record underlying profit of $US4.7bn ($6.6bn) for 2019-20, and a final dividend of $0.90 per share. Fortescue founder Andrew Forrest is set to receive more than $1bn in dividends for the second half, and about $1.85bn for the full year. This compares with a total distribution of $1.24bn in 2018-19. Forrest and his wife are significant donors to a range of philanthropic causes via their Minderoo Foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINDEROO FOUNDATION

Northern Star’s path brightens

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Original article by Brad Thompson
The Australian Financial Review – Page: 25 : 20-Aug-20

Northern Star Resources has posted a 2019-20 net profit of $258.3m, which is 67 per cent higher than previously. EBITDA rose from $479.7m previously to a record $745.4m. Shareholders will receive a final dividend of $0.095 per share, while executive chairman Bill Beament attributes the special dividend of $0.10 a share to the mid-tier gold producer’s strong financial position and growth outlook. Meanwhile, Saracen Mineral Holdings has reported net income of $189.7m for the financial year and revenue of $1.07bn.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR

Rio in Pilbara royalties scandal

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Original article by Nick Evans
The Weekend Australian – Page: 19 & 22 : 8-Aug-20

Rio Tinto has advised directors of the Gumala Aboriginal Corporation that royalties from the Yandicoogina iron ore mine in the Pilbara have been underpaid for a number of years. The resources giant has paid the GAC some $40m plus interest to cover the underpayments, but the GAC is said to have requested a full audit of Rio Tinto’s royalty payments and access to the underlying data that it uses to calculate regular payments. The Yandicoogina land use agreement was signed in 1997.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GUMALA ABORIGINAL CORPORATION

Miners urged to resist dividends

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Original article by Nick Evans
The Australian – Page: 15 : 27-Jul-20

Scott Grimley of EY says Australian mining companies should reinvest in their business using ‘windfall’ profits from the rising price of gold and iron ore. He cites the need to invest in technological innovations in particular, noting that a report from EY in 2019 concluded that implementing new technologies could boost productivity by 9-23 per cent. Grimley has emphasised the importance of growth as the economy recovers from the coronavirus pandemic.

CORPORATES
ERNST AND YOUNG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Miners should be at the top of their game with soaring gold price, says Evolution’s Klein

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Original article by Nick Evans, Lachlan Moffet Gray
The Australian – Page: 16 : 24-Jul-20

Evolution Mining has advised that its gold production increased by 31.8 per cent in the June quarter, to 218,104 ounces. Evolution’s gold output for 2019-20 totalled 746,463 ounces, at an all-in sustaining cost of $956 per ounce at its Australian mines. Executive chairman Jake Klein expects the gold price to remain high in the medium-term, citing factors such as the federal government’s stimulus measures. Rival gold producer Northern Star Resources has reported output of 267,361 ounces for the June quarter, at an average realised gold price of $2,487 an ounce.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST

China iron ore drive delivers $9bn boost

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Original article by Geoff Chambers
The Australian – Page: 4 : 24-Jul-20

Finance Minister Mathias Cormann says the federal government has maintained "cautious and conservative assumptions" regarding the outlook for the iron ore price. The steel input is trading at around $US110 per tonne, but the government now expects it to be fetching $US55 a tonne by the end of 2020. It had forecast in December that the iron ore price would fall to $US55 by the end of June. Cormann stresses that the resources sector has been a major contributor to the domestic economy’s resilience during the coronavirus pandemic.

CORPORATES
AUSTRALIA. DEPT OF FINANCE

Iron ore war rages as BHP ramps up

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Original article by Nick Evans
The Australian – Page: 13 & 19 : 22-Jul-20

BHP has advised that production at its Pilbara iron ore mines rose to a record 281 million tonnes in 2019-20, while shipments totalled 283.3 million tonnes. BHP has forecast that its iron ore shipments for 2020-21 will be within the range of 276 to 286 million tonnes. BHP’s average realised price for iron ore rose by 16 per cent in 2019-20 to $US77.36 a wet metric tonne, excluding shipping costs. Meanwhile, Brazilian rival Vale has reported iron ore output of 25.1 million tonnes for June, and it still expects full-year production of between 310 and 330 million tonnes.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA

Up $11bn, Forrest has a profitable pandemic

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Original article by John Stensholt
The Australian – Page: 15 : 22-Jul-20

The share price of pure-play iron ore miner Fortescue Metals Group has more than doubled since March. Its market capitalisation topped $51bn on 21 July, making it one of the 10 biggest companies on the Australian sharemarket. Fortescue’s founder Andrew Forrest is now estimated to have total wealth of about $20bn, with the value of his stake in the company having increased by more than $11bn since the coronavirus-induced sharemarket rout in mid-March. Forrest and his wife are also high-profile philanthropists, having donated more than $2bn to their Minderoo charitable foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, THE MINDEROO FOUNDATION PTY LTD

ATO bill could be tax shield for Alcoa

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Original article by Nick Evans
The Australian – Page: 18 : 17-Jul-20

Alcoa of Australia recently received a tax bill of $921 million from the Australian Taxation Office over alleged transfer pricing. However, due to the alleged behaviour having occurred some time ago, the bill includes an initial interest assessment of around $707 million. Alcoa boss Roy Harvey says the company does not agree with the claims against it, and that it plans to take the matter to the courts. Harvey says Alcoa will use the accrued interest as a tax deduction, which should give it an improved tax position in the near term.

CORPORATES
ALCOA OF AUSTRALIA LIMITED AUSTRALIAN TAXATION OFFICE

China warning over dumping

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Original article by John Durie Nick Evans
The Australian – Page: 13 & 16 : 17-Jul-20

Data from the Department of Industry shows that Australia exported $79.1bn worth of iron ore to China in 2019. The nation’s export volumes have increased in 2020 despite the coronavirus pandemic. However, the Anti-Dumping Commission has received a submission from China warning that BlueScope Steel’s pursuit of alleged breaches of anti-dumping rules in the steel industry could have a flow-on effect for iron ore producers. BlueScope has lodged almost 20 anti-dumping complaints since 2015.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL AUSTRALIA. ANTI-DUMPING COMMISSION AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES