B08 Metal Ore Mining

Newcrest ramps up Cadia mine’s output

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 27-Oct-17

Newcrest Mining’s gold production for the September quarter was slightly below analysts’ forecasts, at 522,917 ounces. However, Newcrest had flagged lower output for the quarter due to maintenance work at its Lihir mine in Papua New Guinea. Newcrest has also advised that it has resumed production at both caves at the Telfer mine, where mining was disrupted by a "seismic event" in April. The company expects to have access to all parts of the mine by the end of 2017.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, RBC CAPITAL MARKETS

Fortescue adamant that wide iron ore discount will revert

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 27-Oct-17

Fortescue Metals Group’s cash reserves rose from $US1.8bn to $US2.3bn in the September quarter. Iron ore shipments totalled 44 million tonnes, with "C1" costs falling marginally to $US12.15 per tonne. Fortescue has reduced its price realisation guidance for the second time in 2017-18, and now expects to receive between 70 and 75 per cent of the benchmark index price for its lower-grade ore. CEO Nev Power suggested earlier in 2017 that the price discount would not be sustained, but he now says it is difficult to predict when it will narrow.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG

BHP to take hard look at asset sales

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Original article by Matt Chambers
The Australian – Page: 21 : 26-Oct-17

BHP Billiton may consider further asset sales under CEO Andrew Mackenzie and chairman Ken MacKenzie. BHP has previously flagged plans to divest its US shale assets, and other assets that could potentially be sold include its one-sixth stake in the North West Shelf LNG project, thermal coal mines, nickel mines in Western Australia and its potash project in Canada. The North West Shelf project was the biggest contributor to the earnings of BHP’s petroleum division in 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, ELLIOTT MANAGEMENT CORPORATION

Chinese entrench iron ore discount

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Original article by Paul Garvey
The Australian – Page: 20 : 24-Oct-17

The price discount between iron ore with 62 per cent content and lower-grade ore has traditionally been within the range of 10-15 per cent, although it has widened significantly in 2017. Chris Salisbury, the head of Rio Tinto’s iron ore division, says China’s decision to curb steel production during winter should not affect demand for Rio’s higher-grade iron ore. He adds that this in turn will ensure that the price discount will be sustained. Salisbury also says the widening discount appears to be structural.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, UBS HOLDINGS PTY LTD, TAFE WESTERN AUSTRALIA

‘Foundations are strong’, says new BHP chairman

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Original article by Darren Gray
The Sydney Morning Herald – Page: Online : 20-Oct-17

Former Amcor CEO Ken MacKenzie addressed BHP Billiton’s AGM in London for the first time in his new role of chairman. He told shareholders that there are some areas in which BHP can increase its focus and improve its operations, but overall the company is very strong. MacKenzie also said BHP is actively seeking to improve its capital allocation processes, noting that this has been somewhat lacking over the last decade.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AMCOR LIMITED – ASX AMC

BHP guidance for iron ore unchanged

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Original article by Timothy Moore, James Thomson
The Australian Financial Review – Page: 15 : 19-Oct-17

BHP Billiton has advised that it produced 64 million tonnes of iron ore in the September 2017 quarter, which is four per cent lower than the same period in 2016. However, BHP still expects iron ore production to be within the range of 275 and 280 million for 2017-18. Meanwhile, copper production rose by 14 per cent to 404,000 tonnes during the quarter, while petroleum production was down eight per cent to 50 million barrels of oil equivalent.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RBC CAPITAL MARKETS, ELLIOTT MANAGEMENT CORPORATION

Rio sticks with record iron ore target

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 18-Oct-17

Rio Tinto scaled back its forecast for Pilbara iron ore shipments in 2017 to 330 million tonnes earlier in the year. The resources group is confident of meeting this guidance, after shipments rose by 11 per cent to 85.8 million tonnes in the September quarter. However, Rio Tinto’s export volumes will have to rise to a record 89.8 tonnes in the December quarter to achieve its revised guidance. Meanwhile, Rio Tinto has reduced its forecast for copper production in 2017 for a second time. It now expects global output to be within the range of 460,000 to 480,000 tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, YANCOAL AUSTRALIA LIMITED – ASX YAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SHAW AND PARTNERS LIMITED, DEUTSCHE BANK AG

Haoma Mining NL requested trading halt because ASX would not release details on Haoma’s recovering ‘flat – watermelon seed-like’ nuggets from conglomerates at the Comet Mine near Marble Bar

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Original article by
Australian Stock Exchange Announcements – Page: Online : 17-Oct-17

On 11 October 2017, Haoma Mining commenced surface sampling of Fortescue Group type rocks at four locations at Bamboo Creek and three locations at the Comet Mine near Marble Bar. Bulk samples of approximately 50kg were collected from the above seven conglomerate outcrop locations. Those samples are now being processed and analysed at Haoma’s Bamboo Creek laboratory. "Flat" gold nuggets and "fine" gold were collected from the conglomerate outcrop "C2" located to the South West of the Comet Mine near Marble Bar. Other gold nuggets were also collected from "C3", located to the North West of the Comet Mine. At location "C2" a significant number of "flat" gold nuggets were collected over a 150 metre section of the strike zone, which is approximately three kilometres long. The nuggets were collected just below the surface of the conglomerate outcrop (about 30 meters wide) which continues to the South West of the Comet Mine. View Full Haoma ASX Release here.

CORPORATES
HAOMA MINING NL – ASX HAO

Upbeat Evolution flags higher 2018 cash flow

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 17-Oct-17

Evolution Mining produced 220,971 ounces of gold in the September 2017 quarter, which is 1.3 per cent higher than in the three months to June. The gold miner has reported an all-in sustaining cost of $US620 ($A786) per ounce for the latest quarter. Evolution’s operating cash flow rose to a record $707m in 2016-17, and finance director Lawrie Conway believes that this can increase by 15-20 per cent in 2017-18. This is despite the recent sale of the Edna May mine to Ramelius Resources.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, RAMELIUS RESOURCES LIMITED – ASX RMS, GLENCORE PLC, BARRICK GOLD CORPORATION, RBC CAPITAL MARKETS

Gold exploration spending needs to double, report finds

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 16-Oct-17

Australia’s gold production totalled 9.7 million ounces in 2016, but a report from Minex Consulting warns that a big rise in exploration expenditure is needed to avert a sharp downturn in production within five years. The Office of the Chief Economist is also bearish about the outlook for the nation’s gold sector, forecasting that the value of gold exports will fall to $A17.1bn in 2017-18 and $A16.9bn in 2018-19. This compares with around $A18bn in 2016-17.

CORPORATES
MINEX CONSULTING PTY LTD, AUSTRALIA. OFFICE OF THE CHIEF ECONOMIST, LIBERAL PARTY OF WESTERN AUSTRALIA