B08 Metal Ore Mining

Rio, BHP output boosts payout hopes

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 15 & 17 : 15-Jan-18

Deutsche Bank expects Rio Tinto to report three per cent growth in iron ore output in the Pilbara for the December 2017 quarter, to 87.7 million tonnes, while BHP Billiton’s Pilbara production is forecast to rise by 10 per cent to a record 70.9 million tonnes. Meanwhile, Hayden Bairstow of Macquarie Group expects Rio Tinto to pay a 2017 final dividend of $US1.95 per share, for a full-year payout of $US3.05 per share. Analysts generally also expect BHP to increase its dividend payout for the 2017-18 financial year. Both companies may also boost returns to shareholders via the proceeds of asset sales.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, BLOOMBERG LP, LIBERTY HOUSE GROUP, PACIFIC ALUMINIUM PTY LTD, SAMARCO MINERACAO SA, VALE SA

Iron ore futures rise as cyclone forces closure of Port Hedland

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 19 : 12-Jan-18

Iron ore exports from the Pilbara may potentially be disrupted by Tropical Cyclone Joyce. The Bureau of Meteorology has warned that the cyclone could hit the region on 13 January. The towns of Tom Price and Newman are likely to be within its trajectory, although it may miss the Port of Hedland. However, the Pilbara Ports Authority has ordered all vessels to leave the port, which is used by iron ore miners such as Fortescue Metals Group. The price of iron ore for delivery to the Chinese port of Dalian rose on 11 January in response to concerns about the cyclone.

CORPORATES
PORT OF PORT HEDLAND, PILBARA PORTS AUTHORITY, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, BCI MINERALS LIMITED – ASX BCI, MINERAL RESOURCES LIMITED – ASX MIN, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Rio could surprise on ore exports

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 23 : 11-Jan-18

UBS estimates that Rio Tinto’s Pilbara iron ore shipments rose to a record 90.2 million tonnes in the December 2017 quarter, putting it on track to meet its full-year guidance of 330 million tonnes. According to UBS’s forecast, Rio Tinto’s shipments rose by 17 per cent month-on-month in December, to 32.5 million tonnes. Rio Tinto ultimately aims to lift annual shipments to 360 million tonnes, although its Pilbara rail network currently has a capacity of about 330 million tonnes. UBS estimates that the Pilbara shipments of BHP Billiton and Fortescue Metals Group for the quarter totalled 71.3 million tonnes and 40.5 million tonnes respectively.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, ROY HILL HOLDINGS PTY LTD

Rinehart’s Roy Hill to lift output

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 14 : 9-Jan-18

Roy Hill Holdings is seeking to lift its iron ore export capacity at Port Hedland to 60 million tonnes a year. The company reached its annual production target of 55 million tonnes in September 2017, less than two years after shipments from its namesake mine began. Roy Hill says the increased production can be achieved without investing in additional infrastructure. Meanwhile, a Federal Government report has forecast strong growth in Australia’s iron ore exports in 2018 and a fall in the price of the steel input.

CORPORATES
ROY HILL HOLDINGS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF WATER AND ENVIRONMENTAL REGULATION, HANCOCK PROSPECTING PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

Taxes, royalties take half of miners’ profits

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 13 & 14 : 9-Jan-18

The Minerals Council of Australia’s interim CEO David Byers says a new survey by Deloitte Access Economics demonstrates the need for corporate tax reform. The survey, which was undertaken on behalf of the MCA, shows that taxes and royalties accounted for 51 per cent of the profits of Australian mining companies in fiscal 2016, compared with the nation’s company tax rate of 30 per cent. Byers adds that the survey refutes the widely-held view that mining companies do not pay much tax.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD

Still more riches to be unearthed by miners

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 18 : 9-Jan-18

The S&P/ASX 200 Materials Index has outperformed the broader Australian sharemarket over the last two years, and Macquarie Equities is bullish about the outlook for mining stocks in 2018. The firm believes that major resources groups will have the scope to increase their capital returns to shareholders if the spot prices of key commodities remain at around current levels. Macquarie has maintained its "outperform" rating for both BHP Billiton and Rio Tinto, while Fortescue Metals Group is its preferred stock among pure-play miners.

CORPORATES
STANDARD AND POOR’S ASX 200 MATERIALS INDEX, MACQUARIE EQUITIES LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, OZ MINERALS LIMITED – ASX OZL, METALS X LIMITED – ASX MLX, EVOLUTION MINING LIMITED – ASX EVN, ST BARBARA LIMITED – ASX SBM, REGIS RESOURCES LIMITED – ASX RRL, ILUKA RESOURCES LIMITED – ASX ILU, NEOMETALS LIMITED – ASX NMT, OROCOBRE LIMITED – ASX ORE, WESTERN AREAS LIMITED – ASX WSA, ALUMINA LIMITED – ASX AWC

WA Premier Mark McGowan defends iron ore mining ban on green grounds

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: Online : 3-Jan-18

Western Australian Premier Mark McGowan has banned Mineral Resources from carrying out iron ore mining in the Helena-Aurora Ranges conservation park. Mineral Resources had sought to mine there in order to allow it to extend its Yilgarna operations for a further 15 years. McGowan’s decision puts at risk over 400 jobs, while Mineral Resources has estimated the decision will cost the WA government around $A1 billion in state revenue. Mineral Resources is expected to wind up operations at Yilgarna by the end of 2018, and will try to deploy affected workers elsewhere.

CORPORATES
WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, MINERAL RESOURCES LIMITED – ASX MIN, CONSERVATION COUNCIL OF WESTERN AUSTRALIA INCORPORATED, SINOSTEEL CORPORATION

Minerals Council pushes back over BHP threat

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 13 & 18 : 21-Dec-17

A Minerals Council of Australia spokesman says it intends to keep lobbying on the issues of climate and energy policy. This is despite BHP Billiton’s threat to cancel its membership if the MCA continues to advocate polices that are contrary to its own. However, BHP’s 50 per cent stake in the Bass Strait gas fields means it has less exposure to rising electricity prices on the east coast than fellow MCA members such as Rio Tinto and Glencore. BHP’s share of Bass Strait gas is equivalent to about 10 per cent of domestic demand for gas on the east coast. In contrast, BHP’s mining operations on the east coast account for around one per cent of National Energy Market demand.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Hambro tips iron ore discounts to persist

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 20 : 13-Dec-17

BlackRock fund manager Evy Hambro expects lower-grade iron ore to continue to trade at a discount to the benchmark price for some time. The discount has widened amid growing demand in China for higher-grade ore. Hambro notes that Australian miners may find it increasingly difficult to maintain the quality of their iron ore, as some of the best-quality reserves in the Pilbara have been exhausted. Brazil-based Vale is also increasing production of higher-grade iron ore at its S11D project.

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

Bargain buy of Canadian iron mine pays off for O’Keefe

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian Financial Review – Page: 20 : 7-Dec-17

Australian-listed Champion Iron aims to commence iron ore shipments from the Bloom Lake project in Canada in March 2018, having paid less than $US10m for it in 2016. Previous owner Cliffs had invested some $US2.4bn in the project, which it had acquired as part of its $US5bn purchase of Consolidated Thompson in 2011. Champion Iron is headed by Michael O’Keefe, who estimates that Bloom Lake’s higher-grade iron ore to fetch about $US80 per tonne at current prices. He is the former head of Riversdale Mining, which was acquired by Rio Tinto in 2011.

CORPORATES
CHAMPION IRON LIMITED – ASX CIA, CLIFFS NATURAL RESOURCES INCORPORATED, RIVERSDALE MINING LIMITED, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG