MINING CORPORATIONS – AUSTRALIA

Dakota chief tips Tesla’s end within 10 years

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 8-Sep-16

Dakota Minerals has bought a tenement package in Portugal in anticipation of a rise in demand for lithium in Europe. David Frances, the CEO of the Australian-listed lithium explorer, expects strong demand for lithium from European manufacturers of electric cars. In contrast, Frances is sceptical about the popularity of electric cars in the US, where buyers are likely to show limited interest in such cars.

CORPORATES
DAKOTA MINERALS LIMITED – ASX DKO, TESLA MOTORS INCORPORATED, MERCEDES-BENZ AG, VOLKSWAGEN AG, BENCHMARK MINERAL INTELLIGENCE

Short sellers target Rio, BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 8-Sep-16

New figures show that 4.79 per cent of Rio Tinto’s shares were subject to short selling on 31 August 2016, compared with 0.48 per cent on 30 July 2015. Likewise, the proportion of BHP Billiton’s shares that are short sold has risen from 0.2 per cent in March 2015 to 2.15 per cent on 31 August. Pure-play iron ore producer Fortescue Metals Group has traditionally been a key target for short sellers, but shorting activity has fallen from around 12.6 per cent in April 2015 to 2.5 per cent at the end of August.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AREAS LIMITED – ASX WSA, SHAW AND PARTNERS LIMITED, MYER HOLDINGS LIMITED – ASX MYR, WORLEYPARSONS LIMITED – ASX WOR, METCASH LIMITED – ASX MTS, MONADELPHOUS GROUP LIMITED – ASX MND, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, MACQUARIE GROUP LIMITED – ASX MQG, SHORTMAN.COM.AU

Bullish Toro plans $250m IPO

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Original article by Paul Garvey
The Australian – Page: 19 & 24 : 7-Sep-16

Resource Capital Funds, Taurus Funds Management and Tembo Capital are among the groups that have provided funding for Toro Gold, which is slated to commence production at its Mako mine in Senegal in 2018. Toro’s Mark Connelly says a decision will be made shortly on a potential sharemarket float for the gold hopeful. He estimates that Toro would boast a market capitalisation of more than $A250m, based on the valuations of listed gold producers.

CORPORATES
TORO GOLD PTY LTD, RESOURCE CAPITAL FUNDS, TAURUS FUNDS MANAGEMENT PTY LTD, TEMBO CAPITAL LLP, PAPILLON RESOURCES LIMITED, ADAMUS RESOURCES LIMITED, DACIAN GOLD LIMITED – ASX DCN, ROXGOLD INCORPORATED, MINERAL DEPOSITS LIMITED – ASX MDL, B2GOLD CORPORATION, ENDEAVOUR MINING CORPORATION

Atlas highly vulnerable to iron ore price decline

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Original article by Tess Ingram
The Australian Financial Review – Page: 21 : 1-Sep-16

Atlas Iron has reported net loss of $A159 million for 2015-16. The company lost $A1.38 billion in 2014-15. Revenue increased nine per cent to $A785.8 million. Auditor KPMG warned that Atlas Iron’s future is uncertain to such an extent that the group’s "ability to continue as a going concern" may be under question. At the end of June 2016, Atlas had debt of $A182.2 million and cash of $A80.9 million.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, McALEESE LIMITED – ASX MCS, KPMG AUSTRALIA PTY LTD

How the Samarco disaster unfolded

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Original article by Mark Ludlow
The Australian Financial Review – Page: 36 : 31-Aug-16

The collapse of the Fundao tailings dam at the Samarco mine in Brazil has been found to be caused by a series of events related to structural problems. The accident occurred on 15 November 2015. Its causes were analysed by consultants Cleary Gottlieb Steen & Hamilton. The study was commissioned by Samarco Mineraco’s joint owners BHP Billiton and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, CLEARY GOTTLIEB STEEN AND HAMILTON LLC

Another big miner in $1.2b ATO dispute

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Original article by Peter Ker
The Australian Financial Review – Page: 3 : 30-Aug-16

An Australian subsidiary of Japan’s Mitsubishi claimed a $A1.22bn income tax deduction in 2009, which related to its acquisition of a coal tenement by the company’s joint venture with BHP Billiton in 2008. The Australian Taxation Office subsequently served Mitsubishi with a notice of amended assessment regarding the tax deduction. The tax dispute has yet to be resolved, although the ATO recently offered a settlement to Mitsubishi.

CORPORATES
MITSUBISHI CORPORATION, MITSUBISHI DEVELOPMENT PTY LTD, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, BM ALLIANCE COAL OPERATIONS PTY LTD, NEW HOPE CORPORATION LIMITED – ASX NHC, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC

Latest results show Fortescue has finally become unshakeable

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 22 : 29-Aug-16

Fortescue Metals Group’s free cash flow increased by 93 per cent in 2015-16, to $US2.7bn, while its debt was slashed by $A2.9bn. Fortescue’s production cost averaged $US50 per tonne several years ago, but this was reduced to $US13.10 in June 2016 and the group aims to further reduce this in 2016-17. A number of factors have contributed to the reduction in production costs, such as the lower Australian dollar, the fall in the crude oil price, increased production and a significantly lower strip ratio.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG,{SPAC}VALE SA,{SPAC}PATERSONS SECURITIES LIMITED,{SPAC}CITIGROUP PTY LTD,{SPAC}MORNINGSTAR PTY LTD,{SPAC}MACQUARIE GROUP LIMITED – ASX MQG

BHP, Vale brace for fallout from dam collapse report

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 29-Aug-16

US law firm Cleary Gottlieb Steen & Hamilton will shortly release a technical report on its review into the tailings dam disaster at the Samarco iron ore project. Samarco is jointly owned by BHP Billiton and Vale, and the former has committed to full disclosure of the report, which will examine the causes of the November 2015 disaster. BHP has also responded to the Samarco incident by undertaking a review of its other joint ventures, which is likely to result in changes to how they are managed.

CORPORATES
BHP BILLITON LIMITED – ASX BHP,{SPAC}VALE SA,{SPAC}SAMARCO MINERACAO SA,{SPAC}CLEARY GOTTLIEB STEEN AND HAMILTON LLC,{SPAC}INTERNATIONAL COUNCIL ON MINING AND METALS,{SPAC}SOUTH32 LIMITED – ASX S32,{SPAC}RIO TINTO LIMITED – ASX RIO,{SPAC}SUPERIOR COURT OF JUSTICE (BRAZIL)

Cashed-up South32 on the hunt

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Original article by Paul Garvey
The Australian – Page: 19 & 26 : 26-Aug-16

Australian-listed South32 has exceeded market forecasts by posting 2015-16 underlying EBITA of $US356m. However, impairment charges resulted in the BHP Billiton spin-off posting a net loss of $US1.6bn (A$2.1bn). South32 boasted net cash of $US312m at the end of the financial year, and CEO Graham Kerr says it will consider a capital return to shareholders if there are no suitable acquisitions. He adds that South32 has pre-emptive rights over Anglo American’s stake in their manganese joint venture.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, SHAW AND PARTNERS LIMITED

ERA confident of covering Ranger rehabilitation costs

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Original article by Barry FitzGerald
The Australian – Page: 23 : 25-Aug-16

Energy Resources of Australia has posted a 2016 interim net loss of $A196.5m, down from $A255.3m previously. Revenue fell from $A174.4m to $A154.4m, and ERA boasted total cash resources of $A454m at the end of the half-year. Rehabilitation work at the Ranger uranium mine is expected to cost $A507m, but ERA is optimistic that it will not have to access a $A100m credit facility from Rio Tinto to complete the site remediation work.

CORPORATES
ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, RIO TINTO LIMITED – ASX RIO