B08 Metal Ore Mining

Iron ore prices to remain high

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Original article by Nick Evans
The Australian – Page: 20 : 9-Jul-19

The price of iron ore for delivery to China firmed on 8 July, after falling sharply in the previous week in response to calls for Chinese government intervention. Meanwhile, Ord Minnett expects the benchmark price of iron ore to remain high for the remainder of 2019, before averaging $US87 per tonne in 2020. The firm also notes that an increase in steel production has seen iron ore stockpiles at Chinese ports decline for 12 consecutive weeks. Ord Minnett has increased its Chinese steel production forecast for 2019 by seven per cent year-on-year, to 992 million tonnes.

CORPORATES
ORD MINNETT GROUP LIMITED, CHINA IRON AND STEEL ASSOCIATION, CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION, VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

China: iron ore import prices too high

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Original article by Michael Smith
The Australian Financial Review – Page: 13 & 16 : 8-Jul-19

The price of iron ore for delivery to China recently peaked at $US126 per tonne. However, the iron ore price retreated on 5 July after the Chinese government indicated that it could intervene after the nation’s steel mills claimed that futures traders are manipulating the iron ore market. The China Iron & Steel Association’s vice-president Qu Xiuli is said to have indicated that the government intends to address ‘irregularities’ that have been identified by the nation’s steel makers. The reports prompted a sharp fall in the share prices of BHP and Rio Tinto.

CORPORATES
CHINA IRON AND STEEL ASSOCIATION, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, MYSTEEL.COM LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Gindalbie shareholders approve Ansteel buyout

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Original article by Nick Evans
The Australian – Page: 28 : 4-Jul-19

Some 81 per cent of Gindalbie Metals’ shareholders voted in favour of Ansteel’s takeover bid on 3 July. The deal required the support of at least 75 per cent of the struggling iron ore miner’s shareholders. Gindalbie’s key asset is a 48 per cent stake in the loss-making Karara magnetite project in Western Australia, which incurred a blowout in construction and operating costs.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC

Miners cashing in as iron ore price surges

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Original article by Nick Evans
The Australian – Page: 28 : 4-Jul-19

The price of iron ore from the Pilbara peaked at $US185 per tonne in 2011, when the Australian dollar was at parity with its US counterpart. The headline price of Pilbara iron ore is now trading at almost $US125 a tonne, which equates to a relative price of nearly $US180 a tonne when a much lower exchange rate is taken into account. Macquarie says the spot price of iron ore may have further to run, given that stockpiles at Chinese ports are continuing to decline. Meanwhile, BHP and Fortescue Metals Group are likely to exceed their revised guidance for 2018-19 iron ore export volumes after strong performances in June.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED, MINERAL RESOURCES LIMITED – ASX MIN, VALE SA

Iron ore surges past $US120 but softer China demand looms

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Original article by Luke Housego
The Australian Financial Review – Page: 13 & 27 : 3-Jul-19

Shares in Australia’s three major iron ore producers rallied on 2 July after the price of the steel input rose above $US120 per tonne. Factors such as supply constraints and record Chinese demand for steel have been key drivers of the iron ore price in 2019. However, some market watchers believe that the current price of iron ore cannot be sustained, given the uncertain outlook for the Chinese economy. Fortescue Metals Group’s shares have gained 139 per cent so far in 2019, while BHP and Rio Tinto have gained 28 per cent and 41 per cent respectively.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, GRIFFITH ASIA INSTITUTE, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED

Roy Hill bound for record profit despite volume miss

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 2-Jul-19

The Roy Hill iron ore project’s 2018-19 production is expected to be 55 million tonnes, although export volumes are likely to total 53 million tonnes. Recent data from Macquarie suggested that the Gina Rinehart-backed project would export 52.5 million tonnes in 2018-19, after shipping about 50.5 million tonnes in 2017-19. Looking ahead, Roy Hill has applied to increase its annual export capacity to 60 million tonnes in 2020. Roy Hill’s 2018-19 earnings should be boosted by a rally in the iron price in 2018-19, following a $558m profit in the previous financial year.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Resource export earnings surge

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Original article by Perry Williams
The Australian – Page: 17 & 21 : 1-Jul-19

The Department of Industry estimates that Australia’s resources export earnings reached a new high of $275bn in 2018-19. It forecasts that this will top $285bn in 2019-20, before falling to $260bn in 2020-21 as commodity prices ease. Iron ore exports are forecast to reach a record $79bn in 2019-20, up from $75bn in 2018-19, and ease to $65bn in 2020-21. Resources Minister Matt Canavan notes that mining investment has fallen in the last five years, and he says governments in Australia should capitalise on high commodity prices by reducing the regulatory barriers to investing in the sector.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, ADANI MINING PTY LTD

Trump chatter, low rates fuel gold boom

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Original article by William McInnes
The Australian Financial Review – Page: 27 : 27-Jun-19

The US spot gold price has gained more than per cent so far in June, amid falling bond yields, expectations of global monetary policy easing and ongoing trade tensions. Jasper Lawler of London Capital Group expects the price of gold to continue to rise, with the firm lifting its medium-term target for the precious metal to $US1,680 an ounce. Shares in Australian-listed gold producers have also rallied in June, but Morgan Stanley says the sector is now too expensive.

CORPORATES
LONDON CAPITAL GROUP, MORGAN STANLEY AUSTRALIA LIMITED, ST BARBARA LIMITED – ASX SBM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, REGIS RESOURCES LIMITED – ASX RRL, TF GLOBAL MARKETS, OANDA AUSTRALIA PTY LTD

Fortescue says $2.3b trumps Aboriginal voice in Parliament

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 26-Jun-19

Fortescue Metals Group CEO Elizabeth Gaines says the pure-play iron ore miner favours "practical" measures to address disadvantage in Aboriginal communities rather than supporting the proposal for an indigenous voice to Parliament. Fortescue announced on 25 June that it has awarded two contracts worth a combined $179m to Aboriginal-owned businesses; it has awarded $2.3bn worth of contracts to Aboriginal-owned business and joint ventures since 2011. BHP and Rio Tinto declared their support for an indigenous voice to Parliament in early 2019.

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

Fuel rule boost for Australian iron ore

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Original article by Matthew Stevens
The Australian Financial Review – Page: 30 : 20-Jun-19

The sulphur emissions of shipping fleets must be reduced by 80 per cent under the International Maritime Organisation’s rules that take effect on 1 January. BHP expects the new rules to give Australian iron ore producers a competitive advantage over their Brazilian rivals. It estimates that the cost of retro-fitting bulk cargo ships and higher fuel costs will increase the cost of shipping iron ore from the Pilbara to China by $US2-$US3 per tonne. In contrast, BHP expects Brazilian miners to incur increased costs of between $US3 to $US5 a tonne.

CORPORATES
BHP GROUP LIMITED – ASX BHP, INTERNATIONAL MARITIME ORGANISATION, VALE SA, WOODSIDE PETROLEUM LIMITED – ASX WPL, WOOD MACKENZIE