MINING CORPORATIONS – AUSTRALIA

New Hope cuts jobs, dividend after loss

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Original article by Perry Williams
The Australian – Page: 16 : 23-Sep-20

Coal producer New Hope Corporation has posted a net loss of $156.7m for the year to 31 July, following a $210.4m profit for the previous financial year. The latest result was marred by writedowns totalling $346m, including a $110.7m impairment charge against its New Acland thermal coal mine. New Hope has also retrenched 175 workers at the New Acland mine, whose proposed expansion is subject to a legal challenge from environmentalists. A total of 23 jobs have also been cut at its head office and Brisbane coal terminal, while shareholders will not receive a final dividend.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

BHP moves to protect heritage sites in Pilbara

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Original article by Paul Garvey
The Australian – Page: 15 & 20 : 18-Sep-20

BHP’s Australian head of minerals Edgar Basto has appeared before a parliamentary inquiry into Rio Tinto’s destruction of ancient rock shelters at Juukan Gorge. He said the resources giant is engaging with traditional owners with regard to its $US3.4bn ($4.7bn) South Flank iron ore project in the wake of the incident. BHP was given approval under Western Australia’s Aboriginal Heritage Act to destroy 40 Aboriginal heritage sites just days after Rio Tinto’s blasting at Juukan Gorge in May. However, BHP has already agreed to change its plans for South Flank to protect at least 10 of the sites.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Rio Tinto condemned by shareholders for seeking legal advice before blowing up Juukan Gorge

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Original article by Lorena Allan
The Guardian – Page: Online : 8-Sep-20

James Fitzgerald from the Australian Centre for Corporate Responsibility says the behaviour of Rio Tinto "beggars belief". He was commenting on the revelation that the mining company hired lawyers to prepare for a possible injunction against the destruction of ancient rock shelters in Juukan Gorge in Western Australia, just three days before they were destroyed in May. Fitzgerald says the attitude of Rio since the shelters were destroyed appears to be that their destruction was just a tragic mistake, but the revelations regarding its hiring of lawyers suggests otherwise.

CORPORATES
THE AUSTRALIAN CENTRE FOR CORPORATE SOCIAL RESPONSIBILITY, RIO TINTO LIMITED – ASX RIO

Fortescue to deliver Forrest record pay-out

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 24-Aug-20

The consensus of analysts polled by Bloomberg is that Fortescue Metals Group will post a record underlying profit of $US4.7bn ($6.6bn) for 2019-20, and a final dividend of $0.90 per share. Fortescue founder Andrew Forrest is set to receive more than $1bn in dividends for the second half, and about $1.85bn for the full year. This compares with a total distribution of $1.24bn in 2018-19. Forrest and his wife are significant donors to a range of philanthropic causes via their Minderoo Foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINDEROO FOUNDATION

Northern Star’s path brightens

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Original article by Brad Thompson
The Australian Financial Review – Page: 25 : 20-Aug-20

Northern Star Resources has posted a 2019-20 net profit of $258.3m, which is 67 per cent higher than previously. EBITDA rose from $479.7m previously to a record $745.4m. Shareholders will receive a final dividend of $0.095 per share, while executive chairman Bill Beament attributes the special dividend of $0.10 a share to the mid-tier gold producer’s strong financial position and growth outlook. Meanwhile, Saracen Mineral Holdings has reported net income of $189.7m for the financial year and revenue of $1.07bn.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR

Rio in Pilbara royalties scandal

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Original article by Nick Evans
The Weekend Australian – Page: 19 & 22 : 8-Aug-20

Rio Tinto has advised directors of the Gumala Aboriginal Corporation that royalties from the Yandicoogina iron ore mine in the Pilbara have been underpaid for a number of years. The resources giant has paid the GAC some $40m plus interest to cover the underpayments, but the GAC is said to have requested a full audit of Rio Tinto’s royalty payments and access to the underlying data that it uses to calculate regular payments. The Yandicoogina land use agreement was signed in 1997.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GUMALA ABORIGINAL CORPORATION

Miners urged to resist dividends

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Original article by Nick Evans
The Australian – Page: 15 : 27-Jul-20

Scott Grimley of EY says Australian mining companies should reinvest in their business using ‘windfall’ profits from the rising price of gold and iron ore. He cites the need to invest in technological innovations in particular, noting that a report from EY in 2019 concluded that implementing new technologies could boost productivity by 9-23 per cent. Grimley has emphasised the importance of growth as the economy recovers from the coronavirus pandemic.

CORPORATES
ERNST AND YOUNG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Miners should be at the top of their game with soaring gold price, says Evolution’s Klein

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Original article by Nick Evans, Lachlan Moffet Gray
The Australian – Page: 16 : 24-Jul-20

Evolution Mining has advised that its gold production increased by 31.8 per cent in the June quarter, to 218,104 ounces. Evolution’s gold output for 2019-20 totalled 746,463 ounces, at an all-in sustaining cost of $956 per ounce at its Australian mines. Executive chairman Jake Klein expects the gold price to remain high in the medium-term, citing factors such as the federal government’s stimulus measures. Rival gold producer Northern Star Resources has reported output of 267,361 ounces for the June quarter, at an average realised gold price of $2,487 an ounce.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST

Iron ore war rages as BHP ramps up

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Original article by Nick Evans
The Australian – Page: 13 & 19 : 22-Jul-20

BHP has advised that production at its Pilbara iron ore mines rose to a record 281 million tonnes in 2019-20, while shipments totalled 283.3 million tonnes. BHP has forecast that its iron ore shipments for 2020-21 will be within the range of 276 to 286 million tonnes. BHP’s average realised price for iron ore rose by 16 per cent in 2019-20 to $US77.36 a wet metric tonne, excluding shipping costs. Meanwhile, Brazilian rival Vale has reported iron ore output of 25.1 million tonnes for June, and it still expects full-year production of between 310 and 330 million tonnes.

CORPORATES
BHP GROUP LIMITED – ASX BHP, VALE SA

Up $11bn, Forrest has a profitable pandemic

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Original article by John Stensholt
The Australian – Page: 15 : 22-Jul-20

The share price of pure-play iron ore miner Fortescue Metals Group has more than doubled since March. Its market capitalisation topped $51bn on 21 July, making it one of the 10 biggest companies on the Australian sharemarket. Fortescue’s founder Andrew Forrest is now estimated to have total wealth of about $20bn, with the value of his stake in the company having increased by more than $11bn since the coronavirus-induced sharemarket rout in mid-March. Forrest and his wife are also high-profile philanthropists, having donated more than $2bn to their Minderoo charitable foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, THE MINDEROO FOUNDATION PTY LTD