IRON ORE – WESTERN AUSTRALIA

Fortescue unplugs lithium from battery of resources

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Original article by Barry FitzGerald
The Australian – Page: 22 : 21-Jul-16

Australian-listed Fortescue Metals Group has revealed plans to sell the lithium exploration rights at its iron ore leases in Western Australia’s Pilbara region. CEO Nev Power says iron ore remains the company’s priority. Lithium miners such as Pilbara Minerals and Orocobre have benefited from growing global demand for lithium-ion batteries, with strong gains in their share prices and market capitalisation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, PILBARA MINERALS LIMITED – ASX PLS, OROCOBRE LIMITED – ASX ORE

Rio misses the mark on iron ore

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Original article by Matt Chambers
The Australian – Page: 19 & 28 : 20-Jul-16

Rio Tinto now expects its iron ore shipments from the Pilbara region of Western Australia to total 330 million tonnes in 2016, compared with previous guidance of 335 million tonnes. However, Rio has not revised its forecast for global iron ore shipments, which remains at 350 million tonnes. Meanwhile, the group has reported that iron ore shipments from the Pilbara totalled 82.2 million tonnes in the June quarter, and 159 million tonnes for the first half of the calendar year. Paul McTaggart of Credit Suisse expects Rio’s Pilbara shipments for the full year to total 328 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CREDIT SUISSE (AUSTRALIA) LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD

Power is still on after five years at FMG, so what’s next?

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 16 : 18-Jul-16

Fortescue Metals Group has significantly reduced its debt and ramped up iron ore production since Nev Power succeeded Andrew Forrest as CEO on 18 July 2011. Fortescue’s "C1" cost of production was around $US50 per tonne at the start of Power’s tenure, but some analysts believe that it may have come close to achieving its goal of reducing this to $US13/tonne in 2015-16. Fortescue exceeded its full-year production target of 165 million tonnes, with shipments for the fiscal year totalling 169.4 million.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

BHP set to miss iron ore target as tough year continues

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 20 : 15-Jul-16

In April 2016, BHP Billiton scaled back its forecast for iron ore shipments from Western Australia in 2015-16 to 260 million tonnes, compared with original guidance of 270 million. However, BHP may have failed to achieve its revised target. Iron ore shipments from Port Hedland for the financial year totalled 454.2 million tonnes, with rival producers estimated to have accounted for about 196 million tonnes. This would suggest that BHP’s share of iron ore shipments was around 258 million tonnes.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO

It’s ore or nothing for Fortescue

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Original article by James Thomson
The Australian Financial Review – Page: 28 : 13-Jul-16

Citigroup and UBS believe that Fortescue Metals Group will exceed its forecast for iron ore production of 165 million tonnes in 2015-16. Expectations of bullish full-year output have been heightened by data showing that shipments of iron ore from the Port of Hedland reached a record high in June. Clarke Wilkins of Citigroup estimates that Fortescue’s full-year production may have topped 168 million tonnes, while its port capacity could be up to 180 million tonnes. He suggests that there is the potential for Fortescue to use the cost savings from its debt-reduction program to increase its production to this level.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Roy Hill’s ramp-up puts pedal to the metal for Port Hedland

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Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 13 : 12-Jul-16

The Roy Hill iron ore project has progressively increased the number of monthly shipments since exports began in December 2015. A spokesman for Roy Hill Holdings says 12 ships were loaded in June 2016, and the project is on track to reach full production of 55 million tonnes a year by the end of 2016. However, Macquarie Group forecast earlier in the year that the Roy Hill project will fall short of its production target, noting that achieving full production often takes a new project several years.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, SAMSUNG C&T CORPORATION, DURO FELGUERA SA, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO

MD exits after putting Atlas back on the map

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Original article by Barry FitzGerald
The Australian – Page: 21 : 29-Jun-16

Atlas Iron MD David Flanagan has stepped down after 12 years with the iron ore miner. Flanagan had been the group’s inaugural MD in 2004 and took up the role again in mid-2015 after a stint as chairman. He says it is the right time for him to leave, following Atlas’s recent deal to restructure its debt. This reduced the company’s structured debt to just $A180m. Atlas shares closed at $A0.09 on 28 June 2016.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, MURDOCH UNIVERSITY

Fortescue on track to hit gearing target

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Jun-16

Fortescue Metals Group’s early repayment of debt over the course of 2015-16 will reduce its interest costs by about $US186m a year. The iron ore miner advised on 23 June 2016 that it has repaid an additional $US500m ($A663.4m) worth of debt. It has now repaid a total of $US2.9bn so far in 2015-16, and CFO Steve Pearce says the group could soon have lower gearing than BHP Billiton and Rio Tinto. Fortescue shares closed 8.3 per cent higher at $A3.53.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, METALYTICS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Lessons learnt, says Citic’s chief as sole focus now on Sino Iron future

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Original article by Tess Ingram
The Australian Financial Review – Page: 28 : 14-Jun-16

The cost of developing the Sino Iron magnetite project in Western Australia is believed to have blown out to around $US12bn ($A16.2bn). However. Citic Pacific Mining CEO Chen Zeng has declined to comment on the cost of the project, which Citic bought for $US415m in 2006. The Sino Iron project has been affected by a long-running legal dispute, while the iron ore price has fallen significantly since shipments commenced in late 2013.

CORPORATES
SINO IRON PTY LTD, CITIC PACIFIC MINING MANAGEMENT PTY LTD, MINERALOGY PTY LTD, METALLURGICAL CORPORATION OF CHINA LIMITED, CITIGROUP PTY LTD, PATERSONS SECURITIES LIMITED

Fortescue stays disciplined on debt

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

Fortescue Metals Group will reduce the annual interest bill on its debt by $US48m by redeeming some $US577m ($A757.8m) of senior unsecured notes. These notes were due to be redeemed in 2019, but the iron ore group intends to do so on 1 June 2016. CEO Nev Powers says repaying debt will continue to be a priority for Fortescue, which has repaid or redeemed some $US1.7bn worth of debt in the last year.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG