B08 Metal Ore Mining

$750m wiped off Newcrest as quake rocks goldminer’s forecasts

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Original article by Paul Garvey
The Australian – Page: 28 : 13-Mar-18

Shares in Newcrest Mining closed 4.6 per cent lower at $A20.60 on 12 March, after the company advised that its 2017-18 earnings will be hit by another earthquake at its Cadia gold mine. Newcrest had previously forecast that gold output for the full year would be within the range of 2.4 million and 2.7 million ounces. Production at the New South Wales mine has been put on hold after part of the tailings dam wall collapsed. A previous earthquake disrupted production in April 2017.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, RBC CAPITAL MARKETS

Another billion-dollar blow adds to woes for Sino Iron project

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Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 13-Mar-18

China-based CITIC has advised of another massive write-down in the value of its Sino Iron magnetite project in Western Australia. The latest write-down is expected to around $US1bn ($A1.27bn), similar to other write-downs in recent years. Sino Iron has been plagued by a legal dispute, which prompted CITIC to warn in 2017 that it could put production on hold. The closure of Sino Iron could affect Fortescue Metal Group’s decision on whether to proceed with its Iron Bridge magnetite project.

CORPORATES
CITIC LIMITED, MINERALOGY PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, FORMOSA PLASTICS GROUP, SHANGHAI BAOSTEEL GROUP CORPORATION, GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, SUPREME COURT OF WESTERN AUSTRALIA

Rio Tinto’s New Hope

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Original article by James Chessell
The Australian Financial Review Boss – Page: 12 : 9-Mar-18

Jean-Sebastien Jacques became CEO of Rio Tinto in July 2016, after just five years at the resources giant. He spends more time travelling than in his office at Rio Tinto’s London headquarters, meeting with staff, customers and suppliers. Jacques questions whether corporate head offices are still relevant, particular for geographically diverse companies such as Rio Tinto. He argues that senior executives and other staff should be constantly meeting with customers and suppliers rather than spending their time in an office. Meanwhile, Jacques aims for Rio Tinto to be the world’s most profitable mining company, rather than the biggest.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, PECHINEY SA, ALCAN INCORPORATED, CORUS GROUP PLC, TATA STEEL, RIVERSDALE MINING LIMITED, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Rio iron ore mines shielded from potential US tariffs

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 8-Mar-18

Rio Tinto has advised that the automation of its haulage trucks will result in the loss of 200 jobs at its Brockman 4 and Marandoo iron ore mines in the Pilbara. The technology will also be rolled out at the West Angelas mine. Chris Salisbury, the CEO of Rio Tinto’s iron ore division, says 25 per cent of the company’s fleet has been automated to date. He adds that the steel tariff policy of President Donald Trump is unlikely to affect demand for iron ore from the Pilbara, as a small proportion of the steel output of Rio Tinto’s Asian customers is exported to the US.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Explorer to drill Australia’s deepest hole chasing riches

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Mar-18

Artemis Resources intends to drill a hole to a depth of more than 3,300 metres below the surface at its tenement in the Pilbara. The super-deep hole is aimed at gaining more knowledge of the source of the small gold nuggets that have been found near the surface in the Pilbara. Artemis chairman David Lenigas says the junior explorer has had persistent approaches from a major North American resources group about deep-hole drilling.

CORPORATES
ARTEMIS RESOURCES LIMITED – ASX ARV, NOVO RESOURCES CORPORATION, ST BARBARA LIMITED – ASX SBM, NORTHERN STAR RESOURCES LIMITED – ASX NST, HOTCOPPER AUSTRALIA LIMITED, CRA LIMITED

Vale challenges Rio and BHP on China sales

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 1-Mar-18

Brazilian iron ore miner Vale has indicated that since 2016 its profits margins on sales to China have matched those of BHP Billiton and Rio Tinto. Vale has increased the average iron content of its ore to 64.3 per cent, and a spokesman says this should rise further over the next several years. In contrast, BHP’s ore has an average iron content of 61 per cent, while Rio Tinto’s averages 62 per cent. Meanwhile, BlackRock fund manager Evy Hambro says expectations that the price discount for lower-grade iron ore will be sustained prompted the World Mining Trust to divest its stake in Fortescue Metals Group in 2017.

CORPORATES
VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BLACKROCK INCORPORATED, BLACKROCK WORLD MINING TRUST PLC

Newcrest buys stake in Lundin Gold

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 27-Feb-18

Newcrest Mining will acquire a 27.1 per cent stake in Canada’s Lundin Gold at a cost of $US250m ($A319m). However, the deal imposes restrictions on Newcrest’s ability to lift its stake above 32 per cent, making a takeover bid difficult in the near-term. Lundin’s assets include the Fruta Del Norte gold project in Ecuador, a country to which Newcrest already has exposure via its stake in Solgold. The Fruta Del Norte mine is slated to commence production in late 2019.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, LUNDIN GOLD INCORPORATED, SOLGOLD PLC, RBC CAPITAL MARKETS, NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, GOLDCORP INCORPORATED

OZ looks at stepping up output

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Original article by Matt Chambers
The Australian – Page: 20 : 23-Feb-18

OZ Minerals has posted a 2017 net profit of $A231m, which is 114 per cent higher than previously. CEO Andrew Cole says the company hopes to begin an early-stage scoping study on a potential expansion of the Carrapateena copper and gold mine in early 2019. The South Australian mine is under construction and slated to commence production in late 2019. OZ Minerals shareholders will receive a final dividend of $A0.14 per share, with a full-year payout of $A0.20 per share.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, CASSINI RESOURCES LIMITED – ASX CZI

BHP on brink of bigger shareholder returns

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 22-Feb-18

Hayden Bairstow of Macquarie Group says there is potential for BHP Billiton to return an additional $US1.9bn to shareholders in the second half of 2017-18 and at least $US2.4bn in 2018-19. He adds that the latter figure could be higher if BHP sells its US shale assets and opts to distribute the proceeds to investors. However, BHP CEO Andrew Mackenzie has declined to comment on the group’s plans for the proceeds of the exit from shale. Meanwhile, BHP is expected to make a decision on its proposed South Flank iron ore mine within six months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG, MORGANS FINANCIAL LIMITED, RIO TINTO LIMITED – ASX RIO, ROYAL DUTCH SHELL PLC

Discounts put $1b hole in Fortescue’s earnings

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 22-Feb-18

Fortescue Metals Group has posted a 2017-18 interim net profit of $US681m. It is 44 per cent lower than previously but exceeded analysts’ expectations. Fortescue’s received prices for iron ore fell by 15 per cent over the period, and the widening gap between lower-grade ore and the price of benchmark ore reduced its underlying EBITDA by $US734m. Shareholders will receive an interim dividend of $A0.11 per share, compared with analysts’ forecasts for a payout of $A0.14 per share.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED