MINING CORPORATIONS – AUSTRALIA

Ralph slams iron ore tax hike

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Original article by Paul Garvey
The Australian – Page: 13 & 18 : 12-Jan-17

Former mining industry executive John Ralph says Western Australia’s reputation as an investment destination would be severely damaged if an increase in the iron ore levy were to proceed. WA National Party leader Brendan Grylls has proposed to increase the levy paid by BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5, although it is opposed by both the Liberal and Labor parties. Ralph is a former CEO and MD of CRA, which subsequently became Rio Tinto. He was working for CRA when the iron ore production levy was introduced in the 1960s.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CRA LIMITED, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, FOSTER’S GROUP LIMITED

Paladin flags critical debt restructure

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 11-Jan-17

Australian-listed uranium producer Paladin Energy has revealed plans to restructure its debt. Some $US212m worth of convertible bonds are set to mature in April 2017, while an additional $US150m worth of convertible notes will mature in 2020. Paladin proposes to replace them with $US115m worth of secured bonds and $US102 million of convertible bonds, which would mature in 2022 and 2024. Bondholders would also be issued with shares in Paladin if they endorse the proposal.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ATLAS IRON LIMITED – ASX AGO, EMECO HOLDINGS LIMITED – ASX EHL, CITIGROUP PTY LTD, SHAW AND PARTNERS LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ELECTRICITE DE FRANCE, CHINA NATIONAL NUCLEAR CORPORATION

Hopes for investor pay dirt look grim

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 10-Jan-17

The rebound in the price of iron ore and coking coal will boost the profits of mining companies in fiscal 2017. Anna Kassianos of Platypus Asset Management says investors should not expect a significant rise in dividends, arguing that some of the increased earnings are likely to be retained to invest in growth strategies and maintenance work that was deferred when commodities prices retreated. Bloomberg expects BHP Billiton, Fortescue Metals Group and South32 to be among the miners that increase their dividends.

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, BLOOMBERG LP, ARGONAUT SECURITIES PTY LTD, NATIONAL PARTY OF AUSTRALIA

Paladin’s survival countdown

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 9-Jan-17

Australian-listed uranium producer Paladin Energy must repay some $US212m ($A289m) worth of debt by the end of April 2017. The future of Paladin has been under scrutiny since the group advised in early December 2016 that the sale of a 24 per cent stake in its Langer Heinrich uranium mine in Namibia is unlikely to proceed. A debt-for-equity swap is seen by many as the most likely option for Paladin to ensure its survival. The group’s shares are trading at around $A0.10.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ATLAS IRON LIMITED – ASX AGO, CHINA NATIONAL NUCLEAR CORPORATION, UBS AG, CITIGROUP INCORPORATED, SOUTH GOBI RESOURCES, ALUMINIUM CORPORATION OF CHINA LIMITED, ELECTRICITE DE FRANCE

Cashed-up Atlas cuts its debt by $54m

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Original article by Paul Garvey
The Australian – Page: 17 : 6-Jan-17

Atlas Iron has repaid $A54 million in debt. The Australian-listed mining company benefited from rising iron ore prices. Its cash reserves are now at $134 million. Atlas Iron’s improving financial situation is reflected in its share price. The stock has risen from $A0.009 in October 2016 to $A0.027 on 5 January 2017.

CORPORATES
ATLAS IRON LIMITED – ASX AGO

Mining deals set to rebound

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Original article by Matt Chambers, Michael Bennet
The Australian – Page: 16 : 6-Jan-17

Rising commodity prices are likely to prompt Australian mining companies to seek growth opportunities through mergers and acquisitions (M&A). In 2016, M&A activity was subdued, with total transactions worth only $A6.9 billion, compared with $A71.9 billion in the boom year of 2007.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, ABERDEEN ASSET MANAGEMENT LIMITED, BHP BILLITON LIMITED – ASX BHP, RBC CAPITAL (AUSTRALIA) LIMITED, GENESEE AND WYOMING INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG, ORBIS GOLD LIMITED – ASX OBS, EVOLUTION MINING LIMITED – ASX EVN, DEUTSCHE BANK AG, ALLEN AND OVERY, MMG LIMITED – ASX MMG

Price spike breathes life into old mines

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 6-Jan-17

At $US77 per tonne in early January 2017, the price of iron ore is high enough to ensure profitability of mining projects that would otherwise be economically unfeasible. Several small Australian mining companies are reviewing their plans with the view of restarting or expanding their mines. Mount Gibson Iron intends to recommence production at Koolan Island’s main pit which ceased in November 2014.

CORPORATES
MOUNT GIBSON IRON LIMITED – ASX MGX, MINERAL RESOURCES LIMITED – ASX MIN, BC IRON LIMITED – ASX BCI, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, CLIFFS NATURAL RESOURCES INCORPORATED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP

Miners’ $8.3b revenue jump to lift profits

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 5-Jan-17

Australia’s biggest listed mining companies are believed to have recorded a rise of $US6 billion (($A8.3 billion)) in combined revenues because of higher commodity prices. Analysts expect BHP Billiton to announce in February 2017 that revenues for the six months to 31 December 2016 rose 20 per cent to $US19.1 billion. Rio Tinto is likely to buy back shares worth $US2 billion.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, FORTESCUE METALS GROUP LIMITED – ASX FMG, WHITEHAVEN COAL LIMITED – ASX WHC

Commodity prices surged 40pc in 2016

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Original article by Geoff Winestock
The Australian Financial Review – Page: 5 : 4-Jan-17

The Reserve Bank of Australia’s commodity price index rose 84 per cent in Australian dollar terms in 2016. Manufacturing is also in good shape, with the Australian Industry Group’s performance of manufacturing index being at 55.4 per cent in December 2016. In agriculture, prices declined about five per cent in 2016.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, RESERVE BANK OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Maintenance boom for resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 19-Dec-16

BIS Shrapnel forecasts that Australia’s resources sector will increase expenditure on maintenance work by 52 per cent over the next five years, to $A10bn. Adrian Hart of BIS says this will include both expenditure that has been deferred and spending on new assets. He adds that there could be some consolidation in the mining services sector as a result. The oil and gas sector is expected to account for the bulk of the increased expenditure on maintenance activity.

CORPORATES
BIS SHRAPNEL PTY LTD, PROGRAMMED MAINTENANCE SERVICES LIMITED – ASX PRG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WORLEYPARSONS LIMITED – ASX WOR, MONADELPHOUS GROUP LIMITED – ASX MND, UGL LIMITED – ASX UGL, CIMIC GROUP LIMITED – ASX CIM, RIO TINTO LIMITED – ASX RIO