B08 Metal Ore Mining

Investors tell Rio to ditch issuance

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 5-Mar-25

Rio Tinto CEO Jakob Stausholm recently indicated that the resources group is seriously considering a share placement in Australia. This would boost liquidity and help to reduce an imbalance whereby the London Stock Exchange accounts for about 77 per cent of the dual-listed company’ shares. However, Rio Tinto executives who met with Australian investors last week encountered strong resistance to any share issue. Wilson Asset Management portfolio manager Matt Haupt contended that Rio Tinto should instead opt for a bond issuance if it needs more cash.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WILSON ASSET MANAGEMENT

Unions blast Rio as they fight for foothold in Pilbara

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Original article by Brad Thompson
The Australian – Page: Online : 4-Mar-25

Unions are seeking to establish a presence in Western Australia’s Pilbara iron ore region, and are trying to sign up workers at Rio Tinto’s Paraburdoo operations. The Western Mine Workers Alliance claims that Rio and other iron ore mining companies operating in the Pilbara are trying to discourage workers from making use of new industrial relations laws that have been introduced by the federal government, and the Alliance has accused Rio of running a scare campaign that includes telling employees that signing enterprise bargaining agreements will make mining unviable. The Alliance claims that on average that union members earn up to 30 per cent more than non-union workers, while a spokesperson for Rio said its existing approach to employee relations in the Pilbara has delivered strong growth in both wages and productivity.

CORPORATES
RIO TINTO LIMITED – ASX RIO

FIRB blamed as iron ore deal collapses

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Original article by Brad Thompson
The Australian – Page: 18 : 26-Feb-25

Iron ore hopeful CZR Resources’ directors have endorsed a takeover offer from Fenix Resources which is priced at $0.85 per share. This will increase to $0.98 if Fenix gains acceptances for 75 per cent of CZR’s shares before 21 March. CZR announced the bid from Fenix after abandoning a deal to sell its 85 per cent stake in the Robe Mesa deposit in the Pilbara to Miracle Iron Resources, which is owned by a Chinese company. CZR cited delays in gaining Foreign Investment Review Board approval for the decision to walk away from the Miracle Iron deal. Veteran prospector Mark Creasy is the major shareholder in CZR; he also owns a 15 per cent stake in the Robe Mesa project.

CORPORATES
CZR RESOURCES LIMITED – ASX CZR, FENIX RESOURCES LIMITED – ASX FEX, MIRACLE IRON RESOURCES, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

MinRes forced to defend disclosure standards

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Original article by Brad Thompson
The Australian – Page: Online : 25-Feb-25

Mineral Resources has been issued with a number of questions by the ASX in relation to its half-year results, which it released last week. Mineral Resources announced it had recorded a loss of $807 million, compared to a net profit after tax of $530 million for the previous corresponding period, and the ASX queried whether the market had been fully informed ahead of the release of its results. It is not the first time that Mineral Resources has been called on to defend its disclosure standards, as it deals with the fallout from various scandals involving MD Chris Ellison that include tax evasion.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, ASX LIMITED – ASX ASX

BHP dividend slumps to eight-year

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 19-Feb-25

BHP has posted a 2024-25 underlying interim profit of US5.08bn ($7.98bn), which is 23 per cent lower than previously. Lower commodity prices weighed on the half-year result, while shareholders will receive an interim dividend of $US0.50 per share; this is BHP’s lowest half-year dividend payout since 2017. Meanwhile, CEO Mike Henry says the resources giant will focus on organic growth projects within its existing portfolio, rather than pursuing acquisitions. He notes that it is increasingly challenging to undertake large global mergers and acquisitions for shareholder value in the current market, which may rule out another bid for Anglo American. BHP is also reducing its reliance on iron ore by increasing its investment in commodities such as copper and potash.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC

Olympic Dam gets a $40m injection

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Original article by Cameron England
The Australian – Page: 16 : 4-Feb-25

A joint venture between Fluor Australia and Hatch has been awarded a major contract for the proposed expansion of BHP’s copper smelter and refinery at its Olympic Dam project. BHP’s procurement officer Rashpal Bhatti says the two companies that were selected for the $40m engineering, procurement and construction management contract have "significant shared experience" in delivering major projects. BHP expects to make a final investment decision on the expansion during the first half of the 2026–27 financial year.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FLUOR AUSTRALIA PTY LTD, HATCH ENGINEERING

Red Hawk backs $254m Fortescue takeover bid

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Original article by Giuseppe Tauriello
The Australian – Page: 16 : 29-Jan-25

Red Hawk Mining’ board has unanimously endorsed a $254m takeover offer from pure-play iron ore miner Fortescue. The off-market cash bid values Red Hawk at $1.05 per share, although this will rise to $1.20 if Fortescue secures at least 75 per cent of the target’s shares by 4 February. Fortescue says its offer represents a ‘significant and attractive premium’ for Red Hawk shareholders, while Red Hawk’s ND Steven Michael describes the offer as an ‘attractive outcome’ for the company’s shareholder. Red Hawk’s Blacksmith iron ore project is located near Fortescue’s Solomon hub.

CORPORATES
FORTESCUE LIMITED – ASX FMG, RED HAWK MINING LIMITED – ASX RHK

Fortescue posts record tonnes amid tariff threat

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Original article by Elouise Fowler
The Australian Financial Review – Page: 13 : 24-Jan-25

Pure-play iron ore miner Fortescue has advised that its shipments from the Pilbara rose to a record 97.1 million tonnes in the first half of 2024-25. This includes 49.4 million tonnes in the three months to 31 December. Fortescue has maintained its full-year guidance of 190-200 million tonnes. Fortescue’s shares have shed four per cent in recent days, amid fears that the tariff policies of US President Donald Trump will dampen the Chinese steel industry’s demand for iron ore.

CORPORATES
FORTESCUE LIMITED – ASX FMG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Supply glut could slash iron ore price

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Original article by Alex Gluyas
The Australian Financial Review – Page: 19 : 21-Jan-25

The iron ore price recently peaked at over $US104 per tonne, in response to data showing that there has been strong growth in China’s stockpiles of the steel input. Goldman Sachs expects a further sharp increase in stockpiles at Chinese ports over the next two years. The firm says this will weigh on the iron ore price, forecasting that it will fall to $US95/tonne this year and $US90 in 2026. Westpac is more bearish, forecasting that iron ore could potentially fall to around $US70 in 2025 as Rio Tinto boosts global supply.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, WESTPAC BANKING CORPORATION – ASX WBC

Rio counts cost as Pilbara iron ore operations are flooded

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Original article by Brad Thompson
The Australian – Page: 15 : 21-Jan-25

Rio Tinto states it is still assessing the impact of Cyclone Sean on its iron ore operations in the Pilbara, with a spokesman noting that its port and rail infrastructure had been hit by flooding. Observing that Rio’s first priority is the safety of its workers, the spokesman noted that the town of Karratha had experienced 274mm of rain in a 24-hour period. The flooding comes less than a week after Rio disclosed that heavy rain had impacted its iron ore operations in the December quarter and forced it to make use of stockpiles, while it has remained silent about any discussions it may have held with Glencore about a merger between the two big mining companies

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC