MINING CORPORATIONS – AUSTRALIA

Fortescue Metals shares leap on soaring iron ore futures

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Original article by Tess Ingram, James Thomson
The Australian Financial Review – Page: 17 : 26-Oct-16

Iron ore futures traded on China’s Dalian Commodity Exchange have risen to the highest level since mid-August 2014. Shares in pure-play iron ore miner Fortescue Metals Group responded by rising 6.5 per cent to $A5.44 on 25 October 2016. Meanwhile, Fortescue has advised that it is still targeting a "C1" cost of between $US12 and $US13 per tonne for the 2016-17 financial year, compared with $US15.43 per tonne in 2015-16.

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

Perth fundies see more upside in resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 24-Oct-16

Australia’s S&P/ASX 300 Metals & Mining Index has gained 45.3 per cent so far in 2016, while the benchmark S&P/ASX 200 has risen by just 6.2 per cent. The rebound in the share prices of resources and energy stocks has rewarded investors who capitalised on a sell-off in the sector earlier in the year. WestOZ Funds Management has been progressively lifting its funds’ weightings toward the sector over recent months, while scaling back their exposure to cash.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 300 METALS AND MINING INDEX, WESTOZ FUNDS MANAGEMENT PTY LTD, WESTOZ INVESTMENT COMPANY LIMITED – ASX WIC, PACKER AND COMPANY INVESTIGATOR TRUST, NORILSK NICKEL, CAMECO CORPORATION, BELL POTTER SECURITIES LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, SANDFIRE RESOURCES NL – ASX SFR

Rio struggles to get Pilbara exports firing

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Original article by Matt Chambers
The Australian – Page: 21 : 21-Oct-16

Rio Tinto has advised that its Pilbara iron ore shipments for calendar 2016 will be lower than previously forecast, at between 325 million and 330 million tonnes. Its iron ore output in the Pilbara rose by two per cent year-on-year to 83.2 million tonnes in the September quarter, although port and rail maintenance issues resulted in shipments falling by five per cent to 80.9 million tonnes. Rio Tinto has again reduced its full-year production guidance for copper, following a four per cent decline in output during the quarter.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MORGANS FINANCIAL LIMITED, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, BHP BILLITON LIMITED – ASX BHP

FMG boosts exports as big iron falls short

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 19 & 24 : 21-Oct-16

Fortescue Metals Group has reported that its iron ore shipments totalled 43.8 million tonnes during the September 2016 quarter. CEO Nev Power says the group ramped up production ahead of the cyclone season, but adds that it is maintaining its full-year guidance of between 165 million and 170 million tonnes. Fortescue reduced its "C1" costs by five per cent during the quarter, to $US13.55 per tonne. The group aims to reduce this to between $US12 and $US13 during 2016-17.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, VALE SA, GRANGE RESOURCES LIMITED – ASX GRR, SHAW AND PARTNERS LIMITED, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD, MORGANS FINANCIAL LIMITED

How banks and resources could move in sync

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Original article by David Rogers
The Australian – Page: 31 : 21-Oct-16

The S&P/ASX 200 Materials Index has significantly outperformed the S&P/ASX 200 Banks Index in 2016, with a gain of 29 per cent compared with the latter’s eight per cent fall. Deutsche Bank notes that with the exception of the last four years, the two sectors have both regularly outperformed the broader sharemarket over the last 25 years. In addition, they have often outperformed in tandem. Tim Baker of Deutsche argues that the divergence of the two indices over the last few years suggests that they could be set for a new period of joint outperformance.

CORPORATES
STANDARD AND POOR’S ASX 200 MATERIALS INDEX, STANDARD AND POOR’S ASX 200 BANKS INDEX, DEUTSCHE BANK AG

BHP flags end of slump

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Original article by Matt Chambers
The Australian – Page: 21 : 20-Oct-16

BHP Billiton’s production report for the September 2016 quarter shows that copper and oil output fell during the period, while there was a modest rise in metallurgical coal output and iron ore production was steady. Meanwhile, CEO Andrew Mackenzie noted that there are indications that commodity markets are starting to rebalance. Fortescue Metals Group chairman Andrew Forrest recently suggested that the market has bottomed.

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

Tinkler enjoys $35m windfall as coal surges

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 19-Oct-16

Businessman Nathan Tinkler and associated entities are believed to control some 37.25 per cent of the listed Australian Pacific Coal’s shares. The stock has benefited from the rally in the thermal coal price in 2016, which has seen the value of Tinkler’s July 2015 investment of $A6.6m in APC rise to more than $A41m. Tinkler stepped down as MD of the company earlier in 2016, after he was declared bankrupt.

CORPORATES
AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, ANGLO AMERICAN PLC, WHITEHAVEN COAL LIMITED – ASX WHC, BENTLEY RESOURCES PTE LTD, VG SUPERANNUATION FUND, L&Z TINKLER FAMILY SUPERANNUATION FUND, RJ TINKLER FAMILY TRUST, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Grylls ups fight on iron ore tax

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Original article by Andrew Burrell
The Australian – Page: 21 : 19-Oct-16

Western Australian Nationals leader Brendon Grylls claims that parliament can alter the state agreements of Rio Tinto and BHP Billiton without their consent. The state agreements require BHP and Rio to pay a levy of $A0.25 for each ton of iron ore they produce, but Grylls has proposed lifting this to $A5. He also alleges that they have breached the state agreements. A Rio spokesman has warned that future investment in WA and iron ore supply would be jeopardised if the government sought to change the state agreements.

CORPORATES
RIO TINTO ALUMINIUM (BELL BAY) LIMITED, BHP BILLITON LIMITED – ASX BHP, NATION AIR, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF FINANCE

Whitehaven ramps up coking coal output

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 25 : 18-Oct-16

The rise in the price of coking coal has prompted Whitehaven Coal to lift production in the December 2016 quarter and scale back output of thermal coal. The proportion of semi-soft coking coal produced at its Maules Creek mine will rise to 30 per cent during the period. The price of this coal has risen more strongly than thermal coal in 2016, although growth in the price of premium hard coking coal has significantly outpaced both. Peter O’Connor of Shaw & Partners says other miners could move to lift production, which could in turn put pressure on the coking coal price.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, SHAW AND PARTNERS LIMITED, PRUDENTIAL INVESTMENTS PTY LTD

Gold miners pounce on exploration sites

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 18-Oct-16

Evolution Mining will pay $A3m for Newcrest Mining’s Marsden copper and gold project in New South Wales. The deal includes provision for an additional payment of $A7m should Evolution commence mining within the next 10 years. Evolution has also announced that its total gold output for the September 2016 quarter was 205,307 ounces. Meanwhile, Saracen Mineral Holdings has secured an exploration joint venture with AngloGold Ashanti at two of the former’s gold tenements in Western Australia.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWCREST MINING LIMITED – ASX NCM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, ANGLOGOLD ASHANTI LIMITED – ASX AGG