B08 Metal Ore Mining

Evolution forecasts output reduction

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Original article by Paul Garvey
The Australian – Page: 27 : 20-Jul-18

Listed gold producer Evolution Mining has advised that its output for 2017-18 totalled 801,187 ounces, at an all-in sustaining cost of $797 per ounce. It has forecast that gold production in 2018-19 will be within the range of 720,000 to 770,000 ounces, at an all-in sustaining cost of $850 to $900 per ounce. Evolution’s operating mine cash flow reached a record $221.9m in the fourth quarter of 2017-18, and its net debt has fallen to $72m.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN

BHP rides record iron ore wave

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Original article by Paul Garvey
The Australian – Page: 19 : 19-Jul-18

BHP Billiton will aim to produce between 241 million and 250 million tonnes of iron ore in 2018-19, after output in 2017-18 rose by three per cent to a record 238 million tonnes. BHP has attributed the 2017-18 result to factors such as record production at its Jimblebar and Mining Area C mines in the Pilbara and its rail and port operations’ productivity gains. Meanwhile, BHP has advised that its costs associated with the Samarco tailings dam disaster in Brazil are likely to rise by $US440m ($600m).

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO, JEFFERIES AND COMPANY, MACQUARIE GROUP LIMITED – ASX MQG

Rio, Vale boost output and market share

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 16 : 18-Jul-18

Rio Tinto’s iron ore shipments from the Pilbara totalled 168.8 million tonnes in the first half of 2018, which is 9.4 per cent higher than previously. Rio Tinto has advised that its export volumes will be similar in the second half, and shipments for the calendar year are expected to be at the higher end of its guidance of between 330 million and 340 million tonnes. Brazilian rival Vale has reported production of 96.8 million tonnes and sales of 86.5 million tonnes of iron ore for the June quarter. It will increase production by 18 per cent in the second half, and it will target full-year output of around 390 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, CLEVELAND-CLIFFS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Atlas facing possible distress

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Original article by Paul Garvey
The Australian – Page: 19 : 17-Jul-18

An independent expert’s report from BDO has valued Atlas Iron at between $0.015 and $A0.03 per share, compared with Hancock Prospecting’s offer of $0.042 per share. BDO has recommended that shareholders accept the offer in the absence of a higher bid. BDO warned that Atlas will be financially vulnerable if the price discount for its low-grade iron ore is sustained, while its Mt Webber mine would have to close. Atlas directors have also used its target statement to recommend that shareholders accept the offer.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, BDO AUSTRALIA LIMITED, ALTURA MINING LIMITED – ASX AJM, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG

Top-grade iron ore may spike to $US100 on China clampdown

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Original article by Krystal Chia
The Australian Financial Review – Page: 26 : 17-Jul-18

The price of high-grade iron ore reached $US91 a tonne on 13 July, and there is speculation that it could reach $US100. The demand for high-grade iron ore, which is classed as ore with 65 per cent iron content, is being driven by steel mills in China, where there is a major crackdown on pollution. Using high-grade ore enables steel makers to cut back on pollutants, as well as allowing them to produce more steel. The price of high-grade ore is up since the start of 2018, while the price of benchmark ore – which has 62 per cent iron content – has declined by 14 per cent.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, WOOD MACKENZIE, FORTESCUE METALS GROUP LIMITED – ASX FMG, IRON ORE RESEARCH PTY LTD, CRU GROUP LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Iron ore miners tipped to have record quarter

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 16-Jul-18

UBS estimates that Rio Tinto’s iron ore shipments from the Pilbara totalled 88.9 million tonnes in the June quarter. BHP Billiton and Fortescue Metals Group are also expected to have had record quarterly shipments, at 71.7 million tonnes and 46.3 million tonnes respectively. Brazilian rival Vale is also expected to report record quarterly shipments, at 96.3 million tonnes. Meanwhile, UBS forecasts that BHP’s shipments from the Pilbara totalled 274 million tonnes in 2017-18, which is slightly below the resources group’s full-year guidance of 275-280 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, VALE SA, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, ROY HILL HOLDINGS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Grasberg a done deal for Rio and Indonesia

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 13-Jul-18

Freeport McMoran has entered into a heads of agreement with the Indonesian Government to reduce its stake in the Grasberg copper mine from around 91 per cent to just under 50 per cent. Control over its divested stake will be assumed by the state-owned PT Indonesia Asahan Aluminium Persero. Rio Tinto does not have a direct stake in Grasberg, but it owns the rights to a certain amount of the mine’s production, and it could potentially benefit from the change of ownership to the tune of more than $US3bn ($4.1bn).

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, PT INDONESIA ASAHAN ALUMINIUM, NEWCREST MINING LIMITED – ASX NCM

Hancock hopes rising as Atlas bleeds cash

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Original article by Paul Garvey
The Australian – Page: 19 : 13-Jul-18

Atlas Iron held cash on hand of $57 million at the end of June, down from $78 million at the end of March. It shipped 2.1 million tonnes of iron ore during the June quarter, but lost an average of $3 per tonne on every tonne shipped. The amount owed by Atlas to lenders increased from $83 million to $85 million over the quarter. The rise in debt and the fall in Atlas’s cash position has boosted the likelihood that shareholders will accept Hancock Prospecting’s $390 million takeover bid.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERAL RESOURCES LIMITED – ASX MIN

BHP’s shale sale to reap dividends

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Jul-18

BHP Billiton chairman Ken MacKenzie has told shareholders that the resources group hopes to secure at least one deal for its US shale assets by the end of 2018. He said there has been strong interest in the assets due to factors such as US company tax cuts and a rise in the crude oil price. MacKenzie also signalled that BHP is likely to return some of the sale proceeds to shareholders via share buybacks or increased dividends. He also said there is still strong support at boardroom and executive level for BHP’s conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, ELLIOTT MANAGEMENT CORPORATION

BHP’s 100-year Pilbara mines plan gets green light

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Original article by Ben Harvey
The West Australian – Page: Online : 11-Jul-18

Western Australia’s Environmental Protection Authority has approved BHP Billiton’s long-term plan for its iron ore operations in the Pilbara. However, the EPA’s deputy chairman Robert Harvey has stressed that BHP will still need to submit each development proposal for environmental approval. BHP’s Pilbara Expansion-Strategic Proposal includes the expansion of existing iron ore mines and the potential development of up to 13 new mines in the Pilbara.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY