Gas supply glut deflates prices for exporters

Original article by Perry Williams
The Australian – Page: 24 : 15-Mar-19

Bernstein analyst Neil Beveridge an increase in global LNG supply in 2019 will put downward pressure on spot prices, which will in turn impact on Australia’s LNG exporters. It is estimated that up to 58 million tonnes of additional LNG production may be approved during 2019, while a final investment decision regarding another 64 million tonnes of supply is slated for 2020.

CORPORATES
BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, TOTAL SA, EXXONMOBIL CORPORATION

Bid on Newmont frees Kalgoorlie sale

Original article by Jacob Greber
The Australian Financial Review – Page: 10 : 27-Feb-19

Kerry Smith of Haywood Securities says the super pit gold mine in Western Australia is among the assets that could be sold if Barrick Gold’s takeover bid for Newmont Mining Corporation succeeds. Analysts have suggested that Newcrest Mining could be among the potential buyers of the super pit, and media reports in Canada have claimed that Barrick has recently held talks with Newcrest regarding asset sales in Australia.

CORPORATES
BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, NEWCREST MINING LIMITED – ASX NCM, HAYWOOD SECURITIES, JP MORGAN AND COMPANY INCORPORATED, RANDGOLD RESOURCES LIMITED, GOLDCORP INCORPORATED, RENAISSANCE MACRO

Glencore’s carbon cash cow: coal prices rising

Original article by Paul Garvey, Perry Williams
The Australian – Page: 19 & 30 : 22-Feb-19

Glencore CEO Ivan Glasenberg says the Switzerland-based miner’s decision to cap annual coal production is likely to put upward pressure on coal prices, particular if global demand continues to increase. He notes that many other mining companies are also curbing coal output or seeking to divest coal assets. Dominic O’Kane of JP Morgan agrees that Glencore’s move could bolster coal prices, as well Glencore shareholders’ returns. Glencore has indicated that it has no plans to sell any of its coal mines or buy additional mines, although it has not ruled out increasing its stake in existing joint ventures.

CORPORATES
GLENCORE PLC, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, CLIMATE ACTION 100+, CHURCH OF ENGLAND, MINERALS COUNCIL OF AUSTRALIA, WORLD COAL COUNCIL, AUSTRALIAN GREENS

Thermal coal prices set to rebound this year

Original article by Paul Garvey
The Australian – Page: 20 : 19-Feb-19

New figures from the Australian Bureau of Statistics show that the value of the nation’s coal exports rose to a record $66.2bn in 2018. Meanwhile, Viktor Tanevski of Wood Mackenzie forecasts that demand for bituminous thermal coal in the Asia-Pacific region will rise by three million tonnes in 2019. He also expects the price of high-energy Australian thermal coal to recover to $US98 per tonne after testing the $US88 level earlier in 2019.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, WOOD MACKENZIE, MACH ENERGY, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

Iron ore could surge upon China’s return

Original article by Timothy Moore
The Australian Financial Review – Page: 21 : 11-Feb-19

March iron ore futures closed 3.1 per cent higher at $US92 a tonne in Singapore on 8 February. Capital Economics says the spot price of iron ore could rally on 11 February, when Chinese traders return to the market following the Lunar New Year break. The tailings dam disaster in Brazil in late January may also impact on the iron ore price. Shares in BHP, Rio Tinto and Fortescue Metals Group have rallied in the wake of the disaster, although Vale’s share price has slumped.

CORPORATES
CAPITAL ECONOMICS LIMITED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, TD SECURITIES, OXFORD ECONOMICS LIMITED, MACQUARIE WEALTH MANAGEMENT, ARCELOR MITTAL SA, CITIGROUP INCORPORATED, FASTMARKETS MB

Brazilian closures test iron restraint

Original article by Paul Garvey
The Australian – Page: 27 : 7-Feb-19

UBS analysts are among those to have forecast an iron ore surplus in 2019. However, this is in doubt after a Brazilian court ordered Vale to put production at its Brucutu iron ore mine on hold in the wake of the tailings dam disaster at its Feijao mine. Vale has responded by declaring force majeure over its iron ore shipments. Vivek Dhar of the Commonwealth Bank says the iron ore price could potentially rise above $US100 per tonne following the production halt at Brucutu, whose annual output is 30 million tonnes.

CORPORATES
VALE SA, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Iron ore surge predicted to be temporary

Original article by Timothy Moore
The Australian Financial Review – Page: 23 : 4-Feb-19

The spot price of iron ore rose above $US85 per tonne in the wake of the latest tailings dam disaster in Brazil. Goldman Sachs and Fitch Ratings are among the firms that have upgraded their iron ore price forecasts, and Capital Economics has suggested that it could peak at around $US100 per tonne. Meanwhile, Liberum Research still expects the iron ore price to retreat to $US50/tonne in 2019 and around $US40/tonne in 2020.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, FITCH RATINGS LIMITED, CAPITAL ECONOMICS LIMITED, LIBERUM RESEARCH, VALE SA, FASTMARKETS MB

China demand to drive earnings: Fortescue

Original article by Perry Williams
The Australian – Page: 24 : 1-Feb-19

Fortescue Metals Group has advised that its iron ore shipments for the December 2018 quarter totalled 42.5 million tonnes, an increase of five per cent year-on-year. The result included its first shipments of the higher-grade West Pilbara Fines. Meanwhile, Fortescue expects its earnings to be boosted by renewed demand for lower-grade iron ore among Chinese steel mills. The pure-play miner also says it is too soon to determine the likely impact of the latest tailings dam collapse in Brazil on the iron ore price.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Dam disaster fuels surge in iron ore price

Original article by Perry Williams
The Australian – Page: 17 & 20 : 31-Jan-19

Goldman Sachs has upgraded its 2019 forecast for iron ore after the price of the steel input rose 4.4 per cent to $US78.50 ($109) a tonne in response to another tailings dam disaster in Brazil. Goldman Sachs now has a price forecast of $US65 per tonne, compared with $US60 previously. The federal government’s mid-year budget update had forecast that the iron ore price would average $US55 per tonne in 2019. Vale has indicated that its annual iron ore production could be cut by up to 40 million tonnes due to the dam collapse. This would equate to about 10 per cent of its annual output.

CORPORATES
VALE SA, THE GOLDMAN SACHS GROUP INCORPORATED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SHAW AND PARTNERS LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MACQUARIE GROUP LIMITED – ASX MQG, TUV SUD

Expense reports to be thing of past

Original article by Yolanda Redrup
The Australian Financial Review – Page: 3 : 11-Jan-19

SAP Concur has processed $160.4 billion worth of employee expenses in the past 12 months, with the company boasting 44,000 customers in 150 countries. SAP Concur president Mike Ebarhard notes that employee expense reports could soon become a thing of the past as digital invoicing becomes more common. He says Australia is lagging behind other parts of the world when it comes to the adoption of digital invoicing.

CORPORATES
SAP CONCUR, WECHAT, SAP AG