MINING CORPORATIONS – AUSTRALIA

Dividends back at Newcrest

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Original article by Barry FitzGerald
The Australian – Page: 21 : 26-Jul-16

Australian-listed Newcrest Mining produced 598,037 ounces of gold during the June 2016 quarter, compared with 636,521 ounces in the March quarter. Full-year output was at the lower end of its guidance of between 2.4 million and 2.6 million ounces. However, the group slashed its net debt by 27 per cent to $A2.1bn in 2015-16, prompting some analysts to forecast that it will pay a dividend for the first time since 2013.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, CREDIT SUISSE (AUSTRALIA) LIMITED

Market backs BHP’s bid to buy Anglo coal

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 25-Jul-16

BHP Billiton has declined to comment on speculation that it is poised to acquire Anglo American’s coal assets in Queensland, with the auction process nearing its end. BHP is said to be the only remaining bidder for the assets, which initially attracted interest from companies such as Glencore and Yancoal. The Anglo American assets include the Moranbah North and Grosvenor metallurgical coal mines, and some market analysts say the deal should generate significant synergies for BHP.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, AMERICAN METALS AND COAL INTERNATIONAL INCORPORATED, XCOAL ENERGY AND RESOURCES LLC, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, SHAW AND PARTNERS LIMITED, TRIBECA GLOBAL NATURAL RESOURCES FUND, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, UBS HOLDINGS PTY LTD

Miners more worried about Qld laws than global markets

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Original article by Mark Ludlow
The Australian Financial Review – Page: 6 : 25-Jul-16

A new report by the Queensland Resources Council highlights the key issues of concern for executives in the state’s mining sector. The latest "state of the sector" report shows that uncertainty regarding State Government policy and regulatory issues are the main concerns for the industry. QRC CEO Michael Roche notes that environmental regulation laws in particularly are a major concern for industry leaders.

CORPORATES
QUEENSLAND RESOURCES COUNCIL LIMITED, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, QUEENSLAND NICKEL PTY LTD, AUSTRALIAN LABOR PARTY

End of Australia’s iron ore supply rush should help prices

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Original article by David Stringer
The Australian Financial Review – Page: 29 : 22-Jul-16

The iron ore price has gained about 28 per cent so far in 2016, and SRK Consulting’s Caue Araujo says it could be further boosted in the near-term as a result of lower growth in shipments by Australia’s major producers. BHP Billiton and Rio Tinto aim to eventually lift their production capacity in Western Australia to 290 million and 360 million tonnes respectively, but Macquarie Group recently suggested that neither may reach its target.

CORPORATES
SRK CONSULTING INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, ROY HILL HOLDINGS PTY LTD, KATANA ASSET MANAGEMENT LIMITED, VALE SA, METAL BULLETIN LIMITED

US election a Trump card for gold price, says Beament

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 21-Jul-16

Northern Star Resources’ gold production totalled 558,143 ounces in 2015-16, with sales of 561,153 ounces. MD Bill Beament remains bullish about the outlook for gold, forecasting that the recent rally in the price of the precious metal will be sustained. He notes that the UK’s vote to leave the European Union has had little impact on the gold price. He expects the gold price to rise further if Donald Trump wins the US presidential election, although he did not specifically name the Republican candidate.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, UNITED STATES. FEDERAL RESERVE BOARD, REPUBLICAN PARTY (UNITED STATES)

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

Growth returns to BHP but not in petroleum

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Original article by Peter Ker
The Australian Financial Review – Page: 17 & 22 : 21-Jul-16

BHP Billiton plans to lift iron ore, copper, coking coal and nickel production in 2016-17, after the coking coal division was the only one that increased production in 2015-16. However, the petroleum division is expected to reduce production by 13-17 per cent, after output was cut by six per cent in 2015-16. Meanwhile, iron ore shipments from BHP’s mines in Western Australia totalled 257 million tonnes in 2015-16, compared with the group’s target of 260 million tonnes. Output is slated to be within the range of 265 million to 275 million tonnes in 2016-17.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, UBS HOLDINGS PTY LTD, SHAW AND PARTNERS LIMITED

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

Lynas hits quarterly revenue record

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Original article by Daniel Palmer
The Australian – Page: 32 : 19-Jul-16

Australian-listed Lynas Corporation has reported sales of $A196.1m for 2015-16, compared with $A148.6m previously. The rare earths producer’s full-year result was boosted by record sales in the fourth quarter, with gross sales revenue for the period rising by 27 per cent to $A55.9m. Lynas shares closed $A0.008 higher at $A0.084 on 18 July 2016.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC

Rio tipped to sell off smaller divisions

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 18-Jul-16

UBS analyst Myles Allsop suggests that Rio Tinto may seek to offload some of its non-core assets under new CEO Jean-Sebastien Jacques. Allsop says this could include its thermal coal, diamond and uranium mines, noting that they rarely receive much attention in Rio’s production reports. He also says Rio might also regard assets such as the Simandou iron ore project in Guinea as being non-core. Iron ore accounts for nearly 75 per cent of Rio’s earnings.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, MACH ENERGY, GLENCORE PLC