Good news for exports with iron ore set to enjoy another bountiful year

Original article by Samantha Bailey
The Australian – Page: 25 : 31-Jul-19

Credit rating agency Moody’s Investors Service expects that supply constraints will ensure that the price of iron ore remains high during the rest of 2019 and in 2020. Moody’s has cited factors such as the impact of a tailings dam collapse in Brazil in January and Cyclone Veronica in Western Australia for its revised forecast. The firm had previously expected the iron ore market to be in surplus in 2019.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Rio Tinto to take iron ore exports crown as Vale struggles

Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 24-Jul-19

Rio Tinto and Brazilian rival Vale are both expected to record lower iron ore shipments in 2019 than the previous calendar year. New data shows that Vale exported 138.5 million tonnes of iron ore during the first half of 2019, a decline of 18 per cent year-on-year. Vale expects its shipments to rise in the second half, with full-year exports to be around the midpoint of its guidance of between 307 million and 332 million tonnes. This suggests full-year exports of around 319.5 million tonnes. Rio Tinto in turn expects to ship between 320 million and 330 million tonnes of iron ore for the year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, KUMBA RESOURCES LIMITED

Iron ore shortage to keep prices elevated

Original article by Glenda Korporaal
The Australian – Page: 27 : 11-Jul-19

Some analysts have forecast a further pullback in the iron ore price, which has retreated from its recent peak of around $US126 per tonne. National Australia Bank now expects the price of the steel input to average $US92/tonne during 2019 and $US74 in 2020. Meanwhile, Macquarie has indicated that the downturn in iron ore inventories at Chinese ports suggests that it will trade in the $US90s in the near-term.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG, CHINA IRON AND STEEL ASSOCIATION, VALE SA, BAOWU GROUP

Iron ore prices to remain high

Original article by Nick Evans
The Australian – Page: 20 : 9-Jul-19

The price of iron ore for delivery to China firmed on 8 July, after falling sharply in the previous week in response to calls for Chinese government intervention. Meanwhile, Ord Minnett expects the benchmark price of iron ore to remain high for the remainder of 2019, before averaging $US87 per tonne in 2020. The firm also notes that an increase in steel production has seen iron ore stockpiles at Chinese ports decline for 12 consecutive weeks. Ord Minnett has increased its Chinese steel production forecast for 2019 by seven per cent year-on-year, to 992 million tonnes.

CORPORATES
ORD MINNETT GROUP LIMITED, CHINA IRON AND STEEL ASSOCIATION, CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION, VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Miners cashing in as iron ore price surges

Original article by Nick Evans
The Australian – Page: 28 : 4-Jul-19

The price of iron ore from the Pilbara peaked at $US185 per tonne in 2011, when the Australian dollar was at parity with its US counterpart. The headline price of Pilbara iron ore is now trading at almost $US125 a tonne, which equates to a relative price of nearly $US180 a tonne when a much lower exchange rate is taken into account. Macquarie says the spot price of iron ore may have further to run, given that stockpiles at Chinese ports are continuing to decline. Meanwhile, BHP and Fortescue Metals Group are likely to exceed their revised guidance for 2018-19 iron ore export volumes after strong performances in June.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED, MINERAL RESOURCES LIMITED – ASX MIN, VALE SA

Iron ore surges past $US120 but softer China demand looms

Original article by Luke Housego
The Australian Financial Review – Page: 13 & 27 : 3-Jul-19

Shares in Australia’s three major iron ore producers rallied on 2 July after the price of the steel input rose above $US120 per tonne. Factors such as supply constraints and record Chinese demand for steel have been key drivers of the iron ore price in 2019. However, some market watchers believe that the current price of iron ore cannot be sustained, given the uncertain outlook for the Chinese economy. Fortescue Metals Group’s shares have gained 139 per cent so far in 2019, while BHP and Rio Tinto have gained 28 per cent and 41 per cent respectively.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, GRIFFITH ASIA INSTITUTE, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED

Trump chatter, low rates fuel gold boom

Original article by William McInnes
The Australian Financial Review – Page: 27 : 27-Jun-19

The US spot gold price has gained more than per cent so far in June, amid falling bond yields, expectations of global monetary policy easing and ongoing trade tensions. Jasper Lawler of London Capital Group expects the price of gold to continue to rise, with the firm lifting its medium-term target for the precious metal to $US1,680 an ounce. Shares in Australian-listed gold producers have also rallied in June, but Morgan Stanley says the sector is now too expensive.

CORPORATES
LONDON CAPITAL GROUP, MORGAN STANLEY AUSTRALIA LIMITED, ST BARBARA LIMITED – ASX SBM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, REGIS RESOURCES LIMITED – ASX RRL, TF GLOBAL MARKETS, OANDA AUSTRALIA PTY LTD

No bargains from gold mergers: PwC

Original article by Nick Evans
The Australian – Page: 17 & 20 : 5-Jun-19

The Super Pit gold mine in Western Australia is among the assets that could potentially be offered for sale in the wake of the latest round of mergers in the gold sector. Northern Star Resources and Evolution Mining are among the Australian gold producers that acquired assets at a discount during the previous spate of mergers in the sector. However, Chris Dodd of PwC says potential buyers cannot expect a significant discount this time around.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, EVOLUTION MINING LIMITED – ASX EVN, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, NEWMONT MINING CORPORATION, GOLDCORP INCORPORATED, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED, ST BARBARA LIMITED – ASX SBM, ATLANTIC GOLD CORPORATION

Bullish iron ore could give budget $4b boost

Original article by Peter Ker
The Australian Financial Review – Page: 19 : 29-May-19

The iron ore price reached a five-year high of $US108 per tonne on 28 May, prompting strong gains in the share prices of Australia’s three major producers. The federal government’s April 2019 Budget had forecast that the iron ore price would average $US88/tonne in 2019-20; Nicki Hutley of Deloitte Access Economics says government revenue could increase by $4bn if the price remains at its current level over this period. Goldman Sachs does not expect iron ore to remain above $US100 for long; it has issued a revised price forecast for 2019 of $US91.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, DELOITTE ACCESS ECONOMICS PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, MOUNT GIBSON IRON LIMITED – ASX MGX, ROY HILL HOLDINGS PTY LTD, MINERAL RESOURCES LIMITED – ASX MIN, GRANGE RESOURCES LIMITED – ASX GRR

Coal being phased out faster than expected, BHP warns investors

Original article by Killian Plastow
The New Daily – Page: Online : 24-May-19

BHP has indicated that it has no plans to increase its thermal coal portfolio. CFO Peter Beaven says it expects the thermal coal market to plateau over time, before declining. Jason Aravanis of IBISWorld says demand for black coal is expected to fall by around six per cent a year by 2024, with most of that fall coming from thermal coal. Demand for coking coal, which is used to make steel, is expected to remain sound. The Department of Industry, Innovation & Science’s Resources and Energy Quarterly report for March had forecast that thermal coal export earnings are likely to hit a record $27 billion in 2018-19, before falling to $20 billion by 2023-24.

CORPORATES
BHP GROUP LIMITED – ASX BHP, IBISWORLD PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, MINERAL COUNCIL OF AUSTRALIA