B08 Metal Ore Mining

Resolute weighs up Ravenswood spin-off

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 8-Jan-19

Resolute Mining has advised that its gold production rose by 33 per cent to 73,691 ounces in the December 2018 quarter. Meanwhile, CEO John Welborn says a decision on the Ravenswood gold mine in Queensland will be made in the first half of 2019. Resolute is considering options such as a sale or spin-off for the Queensland mine as the company shifts its geographical focus to Africa. Resolute may also be open to acquiring assets that could be divested following the merger between Barrick Gold and Randgold Resources.

CORPORATES
RESOLUTE MINING LIMITED – ASX RSG, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED

No cost surge as Pilbara’s big three plan builds

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 7-Jan-19

NRW Holdings CEO Jules Pemberton says the current iron ore mine construction activity in the Pilbara is different to the boom of 2011-2013. He notes that the new mines being developed by BHP, Rio Tinto and Fortescue Metals Group are to replace existing mines rather than to expand output. Pemberton adds that there are also no signs of an increase in labour costs or a skills shortage in the Pilbara. NRW was recently awarded a $57m contract for work on Fortescue’s Eliwana iron ore mine; the mining and civil contractor is also undertaking work on BHP’s South Flank mine.

CORPORATES
NRW HOLDINGS LIMITED – ASX NWH, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLDING CONTRACTORS PTY LTD

Miners’ shares soar as $A gold price hits record high

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Original article by Paul Garvey
The Australian – Page: 20 : 4-Jan-19

The price of gold in Australian dollar terms reached a record high of more than $1,859 an ounce on 3 January, eclipsing the previous peak of $1,819.44 an ounce in July 2016. The rally in turn boosted the share prices of local gold producers, with Newcrest Mining advancing 4.3 per cent and Evolution Mining, Northern Star Resources and Saracen Mineral Holdings rising to new highs.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION

Rio moves to defer bonus for ex-CEO

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Original article by Paul Garvey
The Australian – Page: 15 : 3-Jan-19

Rio Tinto is seeking to further postpone the payment of Sam Walsh’s last short and long-term incentive bonuses until an investigation into a scandal associated with the Simandou iron ore project is completed. The former CEO was due to receive half of his remaining incentive bonuses at the end of 2018; Rio Tinto had advised in February 2017 that payment of the final bonuses would be deferred. International agencies are investigating Rio Tinto’s payment of $US10.5 million ($15m) to a French consultant in 2011.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN FEDERAL POLICE, GREAT BRITAIN. SERIOUS FRAUD OFFICE, UNITED STATES. DEPT OF JUSTICE, PERTH MINT, AUSTRALIA COUNCIL FOR THE ARTS, MITSUI AND COMPANY LIMITED

Trump makes a year of heavy metal

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Original article by Paul Garvey
The Australian – Page: 15 : 2-Jan-19

Commodity prices fell for the seventh year out of the last 11 during 2018. The prices of metals such as zinc, copper and aluminium in particular fell sharply, although supply constraints resulted in strong gains for both coking and thermal coal. The US-China trade war weighed on commodity markets, and the outlook for 2019 may depend to a large extent on the actions of US President Donald Trump. Daniel Hynes of the ANZ Bank and Glyn Lawcock of UBS are upbeat about the outlook for base metals prices in 2019.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS HOLDINGS PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

BHP class action down to one

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Original article by Ben Butler
The Australian – Page: 15 : 19-Dec-18

The Federal Court has ruled that Phi Finney McDonald’s class action against BHP over the Samarco tailings dam disaster in Brazil can proceed. Rival law firms Maurice Blackburn and Johnson Winter & Slattery had also proposed class actions against the resources group, but Justice Mark Moshinsky expressed a preference for Phi Finney McDonald’s funding model. He also noted that the firm’s case was more advanced in terms of preparation.

CORPORATES
BHP GROUP LIMITED – ASX BHP, PHI FINNEY McDONALD PTY LTD, MAURICE BLACKBURN PTY LTD, FEDERAL COURT OF AUSTRALIA, VALE SA, G&E KTMC FUNDING, HARBOUR FUND IV, ROBBINS GELLER RUDMAN AND DOWD LLP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION

BHP rewards investors with extra dividend

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Original article by Nick Toscano
The Age – Page: 24 : 18-Dec-18

BHP has completed an off-market buyback of its shares at $27.64 each. The buyback was funded by BHP’s sale of its US onshore oil and gas assets to BP for $US10.4 billion ($14.7 billion) earlier in 2018. Proceeds from the sale will also go towards the payment of a special dividend of $1.42 per share, which shareholders will receive on 30 January. Those who took part in the share buyback will be paid on 24 December. Macquarie Wealth Management believes that BHP could return another $US3 billion to shareholders in the 2019 financial year.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC, MACQUARIE WEALTH MANAGEMENT, ELLIOTT MANAGEMENT CORPORATION

BHP left holding Chilean mine after deal collapses

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Original article by James Thomson
The Australian Financial Review – Page: 23 : 14-Dec-18

Private equity firm EMR Capital will not proceed with a deal to buy BHP Group’s Cerro Colorado copper mine in Chile. EMR has advised that the $US320m ($443m) transaction has been abandoned due to problems in meeting its deadline to secure financing. The deal had been announced in June; EMR recently acquired a majority stake in a copper mine in Zambia.

CORPORATES
BHP GROUP LIMITED – ASX BHP, EMR CAPITAL PTY LTD, RIO TINTO LIMITED – ASX RIO, PT ADARO ENERGY TBK

Flinders’ plan to delist angers small holders

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Original article by Paul Garvey
The Australian – Page: 29 : 14-Dec-18

Shares in Flinders Mines were placed in a trading halt on 13 December, after the iron ore producer flagged plans to delist. Chairman Neil Warburton says Flinders’ board considered a number of options for its iron ore project in the Pilbara and felt that going private is the best strategy, as it will allow the company to gain funding from private equity firms and other funds that invest in such projects. The delisting proposal has the support of its major shareholder, Todd Corporation.

CORPORATES
FLINDERS MINES LIMITED – ASX FMS, TODD CORPORATION, BBI INVESTMENT GROUP

Merged miners see more gold deals on horizon

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Original article by Paul Garvey
The Australian – Page: 24 : 12-Dec-18

Gold miner Horizon Minerals will have a market capitalisation of around $64m and will be headed by Intermin Resources MD Jon Price. Horizon has been formed via a merger between Intermin and MacPhersons Resources, and Price says the new company already has its sights on potential gold acquisitions in Western Australia. Other recent deals in Australia’s gold sector include the merger between Silver Lake Resources and Doray Minerals.

CORPORATES
HORIZON MINERALS LIMITED, INTERMIN RESOURCES LIMITED – ASX IRC, MACPHERSONS RESOURCES LIMITED – ASX MRP, SILVER LAKE RESOURCES LIMITED – ASX SLR, DORAY MINERALS LIMITED – ASX DRM, BARDOC GOLD LIMITED – ASX BDC, EXCELSIOR GOLD LIMITED