B08 Metal Ore Mining

Atlas shelves Corunna project

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 20 : 22-Jun-17

Atlas Iron will increase production at its Mount Webber iron ore project by two million tonnes a year after putting its Corunna Downs project on hold. The iron ore price has fallen by about 40 per cent since Atlas approved Corunna Downs in early 2017. MD Cliff Lawrenson says it is still an important project for Atlas, and it will resume development of Corunna Downs when the iron ore price rebounds. Production at the company’s Abydos mine will end in October.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HARTLEYS LIMITED

Support for BHP relisting ‘at right price’

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 17 & 20 : 20-Jun-17

Aberdeen Asset Management’s Andrew Preston says scrapping BHP Billiton’s dual-listing structure in favour of a single Australian listing may be the best option. He adds that the cost of such a restructuring would be a key consideration, but argues that many of BHP’s non-Australian assets have been divested since the dual listing was established. Preston also notes that the issue of franking credits, which are of no value to investors in BHP’s London-listed shares, would also have to be considered.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ABERDEEN ASSET MANAGEMENT LIMITED, ELLIOTT MANAGEMENT CORPORATION, AMCOR LIMITED – ASX AMC, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA. DEPT OF THE TREASURY

MacKenzie the hot favourite as BHP votes for new chair

roymorgansocial Leave a comment

Original article by John Durie
The Australian – Page: 18 & 32 : 16-Jun-17

There is widespread support among BHP Billiton shareholders for Ken MacKenzie to become its next chairman. Amcor’s return on capital rose strongly during his tenure as CEO, and he was not on the BHP board when it made ill-fated investments in the US shale sector. However, the selection of a new chairman ultimately rests with the BHP board, which could potentially opt against MacKenzie in order to avoid suggestions that it was swayed by investors.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, ELLIOTT MANAGEMENT CORPORATION, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC, RIO TINTO LIMITED – ASX RIO, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, VODAFONE AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, FEDERAL COURT OF AUSTRALIA, AMAZON.COM INCORPORATED, AUSTRALIA POST, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY

Elliott push to overhaul BHP’s board

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 20 : 15-Jun-17

BHP Billiton will shortly select a successor to chairman Jac Nasser, but Elliott Management says the resources group should use the leadership change to undertake sweeping changes to its board. The activist hedge fund argues that many directors have been the board for a long time and approved acquisitions and share buybacks that have contributed to BHP’s underperformance. There is support among BHP shareholders for Elliott’s proposal to divest its petroleum assets, although some of the hedge fund’s other proposals have gained little traction.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AMP CAPITAL INVESTORS LIMITED, AMCOR LIMITED – ASX AMC, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC

Iron ore fall continues but Deutsche says China steel demand will hold

roymorgansocial Leave a comment

Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 15-Jun-17

The spot price of iron ore for delivery to the port of Qingdao in China has fallen below $US54 per tonne, its lowest level in 12 months. A number of factors have contributed to the recent downturn in the iron ore price, including a sharp fall in Chinese steel exports, a growing move toward protectionism by other steel-producing nations and China’s move to reduce steel capacity. However, Deutsche Bank expects demand for steel in China to remain relatively strong.

CORPORATES
DEUTSCHE BANK AG, ROY HILL HOLDINGS PTY LTD

Payment call puts Paladin in fight to survive

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 30 : 14-Jun-17

Paladin Energy’s proposed debt restructuring is in doubt after an independent expert ruled that the embattled uranium miner must repay Electricite de France around $US277m within 30 days. The France-based energy utility is a major buyer of uranium from Paladin, and its support is crucial to the Australian-listed group’s deal to restructure its debt. Matthew Keane of Argonaut Securities says Paladin could face insolvency unless it can secure a standstill agreement. Paladin’s debt totalled $US665m at the end of the March 2017 quarter.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ELECTRICITE DE FRANCE, ARGONAUT SECURITIES PTY LTD

MacKenzie backed to head BHP

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 15 & 30 : 14-Jun-17

Brenton Saunders of BT Investment management says former Amcor CEO Ken MacKenzie is the wealth manager’s preferred candidate to succeed Jac Nasser as BHP Billiton’s chairman. Saunders argues that unlike the other two leading candidates, MacKenzie was not on the BHP board when the resources giant made its ill-fated investment in US shale assets in 2011. Saunders has also praised MacKenzie’s expertise in terms of capital allocation and management. Lindsay Maxsted and Malcolm Broomhead are widely regarded as the other likely contenders to replaced Nasser.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC, ABERDEEN ASSET MANAGEMENT LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

Rio’s Silvergrass development on track for first iron ore this year

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 13-Jun-17

Production at Rio Tinto’s Silvergrass iron ore mine in Western Australia is slated to resume in July 2017, after being put on hold earlier in the year. Meanwhile, the final stage of the Silvergrass project is expected to be completed in the December quarter, which will double the mine’s annual output to 20 million tonnes. The final stage of the project includes construction of a crusher and a nine-kilometre conveyor.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ROY HILL HOLDINGS PTY LTD

The battle for BHP: Broomhead, Maxsted & MacKenzie

roymorgansocial Leave a comment

Original article by Patrick Durkin
The Australian Financial Review – Page: 11 : 13-Jun-17

BHP Billiton is said to have had a list of 1,200 potential candidates to succeed chairman Jac Nasser. However, three current directors – Ken MacKenzie, Malcolm Broomhead and Lindsay Maxsted – are believed to be the final contenders for the role. Former BHP chairman Don Argus stresses the need for the succession process to have integrity. It will be decided via a secret ballot at a board meeting in Chile in coming days.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, HEIDRICK AND STRUGGLES, AMCOR LIMITED – ASX AMC, WESTPAC BANKING CORPORATION – ASX WBC, ORICA LIMITED – ASX ORI, TRANSURBAN GROUP LIMITED – ASX TCL, ADAMANTEM CAPITAL, AMERICAN SECURITIES, ELLIOTT MANAGEMENT CORPORATION, DOW CHEMICAL COMPANY

Exploration dives as miners bank profits

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 21 : 7-Jun-17

A report from PwC shows that the world’s 40 largest mining companies posted a combined profit of $US20bn in 2015, compared with a $US48bn loss in 2015. They also repaid some $US93bn ($A124.4bn) worth of debt in 2016, while combined capital expenditure fell by 41 per cent to a record low of $US50bn. The report also notes that expenditure on exploration fell to $US7.2bn, having peaked at $US21.5bn in 2012.

CORPORATES
PRICEWATERHOUSECOOPERS, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, AUSTRALIAN BUREAU OF STATISTICS