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

BHP raises the bar on electric vehicle forecasts

Original article by Peter Ker
The Australian Financial Review – Page: 18 : 22-May-19

Resources giant BHP is bullish about global demand for electric cars. Its forecast for the proportion of vehicle sold in 2035 that are electric has been increased from a minimum of 10 per cent to 16 per cent, while it now expects at least seven per cent of light vehicles sold in 2035 will be electric. BHP’s Huw McKay says the take-up rate of electric cars will depend on factors such as investment in recharging infrastructure. BHP has exposure to the electric car battery market via its copper and nickel mines.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WESFARMERS LIMITED – ASX WES, KIDMAN RESOURCES LIMITED – ASX KDR, RIO TINTO LIMITED – ASX RIO

How the iron ore price busted above $US100 a tonne

Original article by Patrick Commins
The Australian Financial Review – Page: 29 : 21-May-19

The tailings dam collapse at a Vale mine in January has been a major driver of the iron ore price’s rise to a five-year high of $US100 per tonne. The disaster reduced seaborne iron ore supply by around six per cent, prompting a rally in the price of the steel input and the shares of major producers. The reduced global supply has also coincided with rising demand for iron ore in China. Meanwhile, Vivek Dhar of the Commonwealth Bank expects the iron ore price to ease to around $US85 per tonne by the end of 2019.

CORPORATES
VALE SA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FORTESCUE METALS GROUP LIMITED – ASX FMG

Vale’s latest legal blow boosts iron ore stocks

Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 8-May-19

Brazilian miner Vale has advised that its sales of iron ore and pellets in 2019 will be at the lower end of its previous forecast of between 307 and 332 million tonnes. The revised guidance follows a court’s move to reverse its decision to allow Vale to resume production at mines that were affected by a tailings dam collapse in January. Shares in Australian iron ore miners rallied on 7 May, and Peter O’Connor of Shaw & Partners expects further volatility in the price of the steel input in the next several years.

CORPORATES
VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, MOUNT GIBSON IRON LIMITED – ASX MGX

Analysts predict iron ore prices have hit peak

Original article by Cole Latimer
The Age – Page: 25 : 24-Apr-19

UBS has forecast that the iron ore price will average $US83 per tonne in 2019, warning that the steel input’s recent high of around $US93/tonne is not sustainable. The investment bank says recent supply disruptions in Australia and Brazil are unlikely to have a long-term impact on the iron ore price, forecasting that it will fall over the next 12 months. Expectations of a lower iron ore price have also contributed to UBS’s decision to downgrade its recommendation on BHP’s shares from ‘buy’ to ‘neutral’. PhillipCapital expects iron ore to average $US78/tonne in 2019.

CORPORATES
UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, PHILLIP CAPITAL LIMITED, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG

Miners place big bets on copper to cash in on electric car boom

Original article by Nick Evans
The Australian – Page: 17 & 28 : 16-Apr-19

Morgan Stanley has forecast that over 10 million electric vehicles will be sold each year by 2025, up from 600,000 in 2015. The rise in demand for electric cars has been tipped to lead to a corresponding increase in demand for copper, with electric vehicles needing around four times as much copper as an average-sized petrol-driven car. Rio Tinto is making copper a key focus of its future plans, having forecast a copper shortfall of eight million tonnes by 2020.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL, WESFARMERS LIMITED – ASX WES, AUSTRALIAN LABOR PARTY

UBS hikes iron ore forecasts a second time

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 29-Mar-19

Investment bank UBS now expects the price of iron ore to average $US83 per tonne in 2019, which is 12 per cent higher than its previous forecast. UBS had already increased its price forecast from $US65 per tonne to $U74 in response to the tailings dam disaster in Brazil in late January. UBS also forecasts that Australia’s three major iron ore producers will slightly reduce their full-year production guidance after their Pilbara operations were affected by a recent cyclone.

CORPORATES
UBS HOLDINGS PTY LTD, VALE SA, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, PEABODY ENERGY CORPORATION

Fortescue expects China’s ore demand to stay strong

Original article by Michael Smith
The Australian Financial Review – Page: 17 & 20 : 29-Mar-19

Fortescue Metals Group CEO Elizabeth Gaines says there are no indications that Chinese steel production is contracting. She adds that the general consensus of Fortescue’s iron ore customers in China is that growth in steel output will to slow to 3-4 per cent in 2019. This follows 12 per cent growth in 2018. Gaines has also indicated that China’s move to restrict Australian coal imports has had no impact on Fortescue’s iron ore shipments. The pure-play miner has resumed shipments from Port Hedland in the wake of Cyclone Veronica.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BOAO FORUM FOR ASIA, SHANGHAI BAOSTEEL GROUP CORPORATION, FORMOSA GROUP, VALE SA