IRON MINES AND MINING – AUSTRALIA

Iron will lets Harding keep Rio fighting fit

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Original article by Amanda Saunders
The Australian Financial Review – Page: 53 & 54 : 23-Dec-15

The head of Rio Tinto’s iron ore division, Andrew Harding, downplays suggestions that he could become the resources giant’s next CEO. Rio Tinto’s earnings are heavily weighted toward iron ore, and Harding has gained a high public profile in 2015 amid the downturn in the iron ore price, criticism of the iron ore expansion plans of Rio Tinto and BHP Billiton, and speculation that Glencore will make a new takeover bid for Rio Tinto.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGO INVESTMENTS LIMITED – ASX ARG

Price fall no bar to Rio plans

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Original article by Matt Chambers
The Australian – Page: 18 : 15-Dec-15

Rio Tinto will press ahead with plans to increase its low-cost iron ore production capacity by 20 million tonnes over the next few years, despite the downturn in the iron ore price. A spokesman argues that any move by Australian iron ore producers to reduce output will allow overseas rivals to gain market share at the expense of local miners. Fortescue Metals Group founder Andrew Forrest has again called for Rio Tinto and BHP Billiton to reduce their iron ore production.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, VALE SA, UBS HOLDINGS PTY LTD, ROY HILL IRON ORE PTY LTD

Price fall to test Fortescue’s bid to reduce debt

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Original article by Paul Garvey
The Australian – Page: 16 : 14-Dec-15

Australian-listed Fortescue Metals Group has repurchased some $A1.1bn of its debt so far in 2015. This includes paying $US618m for debt with a face value of $US715m in November. The iron ore producer has reduced its annual interest costs by $US88m by repurchasing its debt. Meanwhile, the downturn in the iron ore price has prompted speculation that Atlas Iron could breach its debt covenants, while BC Iron recently advised that its Nullagine mine will be shut down.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, BLOOMBERG LP

$US40 separates iron ore virtuosos from the pack

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 4-Dec-15

BHP Billiton and Rio Tinto are in a much better position than their rivals to weather the downturn in the iron ore price. The break-even price for both groups is currently around $A29 per tonne, while Fortescue Metals Group’s break-even price is estimated to be about $A36 at present. However, the iron ore price has now fallen below the break-even point of most smaller Australian-listed producers. Meanwhile, UBS believes that Vale has reduced its break-even price from around $US39 to $US36 in the last six months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, GRANGE RESOURCES LIMITED – ASX GRR, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, ARRIUM LIMITED – ASX ARI, ROY HILL IRON ORE PTY LTD, ANGLO AMERICAN PLC, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, PILBARA MINERALS LIMITED – ASX FTN

Fortescue slumps but talks up asset values

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 25-Aug-15

Fortescue CFO Stephen Pearce says the company’s "world class" mining and port and rail assets in the Pilbara region of Western Australia are worth more than the $A20 billion it cost to develop them. Fortescue CEO Nev Porter put the 14.6 per cent fall in Fortescue’s share price down to a "flighty" market. UBS calculates the net valuation of the assets at $A12 billion.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, HEBEL, TEWOO GROUP

BHP iron ore to grow despite tough 2016

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 23-Jul-15

BHP Billiton’s iron ore production topped 254 million tonnes in 2014-15, and the group expects to increase output by six per cent in the 2015-16 financial year. BHP anticipates lower production of copper, petroleum, metallurgical coal and thermal coal in 2015-16, although Glyn Lawcock of UBS expects production of most of these commodities to rise in the following year. BHP aims to reduce its iron ore production costs to $US16 per tonne in 2015-16, compared with its break-even price of about $A32 per tonne.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, NICKEL WEST

BHP and Rio braced and ready for iron ore’s ‘new normal’

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Original article by Amanda Saunders, Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 10-Jul-15

Some analysts believe that the iron ore price could fall below $US40 per tonne as production ramps up in Australia and abroad. The price of the steel input fell below $US45/tonne on 8 July 2015, prompting speculation about the viability of some high-cost smaller iron ore miners. Andrew Harding, the head of Rio Tinto’s iron ore division, remains upbeat about the long-term outlook for the commodity. He says iron ore is now trading at around its long-term average, and argues that record high prices were not sustainable.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, RBC CAPITAL MARKETS, ARRIUM LIMITED – ASX ARI, CLIFFS NATURAL RESOURCES INCORPORATED, MORNINGSTAR PTY LTD, VALE SA, ANGLO AMERICAN PLC, HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, ARGONAUT SECURITIES PTY LTD

Mine closures forecast as iron ore prices plunge

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Original article by Amanda Saunders, Tess Ingram
The Australian Financial Review – Page: 21 & 26 : 9-Jul-15

Katana Asset Management’s Romano Sala Tenna expects a number of Australian iron ore mines to cease production in the next 12 months. He says some of the cost reduction strategies utilised in the last year are unsustainable, and also notes the dearth of capital investment in many iron ore mines. Pengana Capital’s Tim Schroeders also has doubts as to whether cost-cutting measures can be sustained in the long-term. The iron ore price has fallen below $US50 per tonne, which may put further pressure on smaller producers.

CORPORATES
KATANA ASSET MANAGEMENT LIMITED, PENGANA CAPITAL LIMITED, ATLAS IRON LIMITED – ASX AGO, UBS HOLDINGS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL IRON ORE PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Atlas founder keeps faith as raising looms

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Original article by Tess Ingram, Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 8-Jul-15

Atlas Iron’s current shareholders have agreed to contribute $A15m to the iron ore producer’s $A180m capital raising. Atlas MD David Flanagan is confident that the raising will be well-received, despite the 20 per cent fall in the iron ore price in recent weeks. Flanagan has concluded an international roadshow, and will shortly pitch the capital raising to Australian retail and institutional investors. Atlas will offer the new shares at $A0.05 apiece.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PENGANA CAPITAL LIMITED

Iron ore price slump hits mining majors

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 7-Jul-15

The iron ore price’s fall to $US54 per tonne weighed heavily on Australian-listed producers of the steel input on 6 July 2015. Rio Tinto shed 2.57 per cent to close at $A51.16 and Fortescue Metals Group was down 5.7 per cent at a six-year low of $A1.71. Their break-even prices are estimated to be around $US32 and $US39 per tonne respectively.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTEK COMPUTERS LIMITED, VALE SA, UBS HOLDINGS PTY LTD, BARCLAYS BANK PLC