MINING CORPORATIONS – AUSTRALIA

Fortescue unperturbed by reports of Vale talks

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 21-Jun-16

A Bloomberg report has suggested that Brazil’s Vale may sell a stake in its iron ore assets to Asian investors for up to $US7bn. Australian-listed Fortescue Metals Group has downplayed the likely impact of such a deal on its proposed iron ore blending joint venture with Vale. A Fortescue spokesman has reiterated that the group hopes to commence marketing the blended product to Chinese customers in the second half of 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, BELL POTTER SECURITIES LIMITED

Gold deals tipped to heat up in West Africa

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 21-Jun-16

Shares in Australian-listed Gryphon Minerals finished 22.2 per cent higher at $A0.165 on 20 June 2016, in response to a takover bid from Teranga Gold. Both companies have gold projects in West Africa, and Scott Williamson of Hartleys anticipates further consolidation among gold players with a presence in the region. Duncan Hughes of Somers & Partners expects North American miners in particular to target West Africa-focused Australian gold producers.

CORPORATES
GRYPHON MINERALS LIMITED – ASX GRY, TERANGA GOLD CORPORATION – ASX TGZ, HARTLEYS LIMITED, SOMERS AND PARTNERS PTY LTD, PERSEUS MINING LIMITED – ASX PRU, AMARA MINING, ENDEAVOUR MINING CORPORATION, TRUE GOLD MINING, RESOLUTE MINING LIMITED – ASX RSG, WEST AFRICAN RESOURCES LIMITED – ASX WAF, CARDINAL RESOURCES LIMITED – ASX CDV

Mining capex slump ‘only half finished’

roymorgansocial Leave a comment

Original article by Mark Mulligan
The Australian Financial Review – Page: 31 : 14-Jun-16

National Australia Bank notes that capital expenditure in the mining sector has fallen to around 4.5 per cent of GDP, compared with eight per cent at the height of the resources boom. The bank expects capex to reach a low of just 1.5 per cent of GDP by 2018. NAB also notes that the downturn in employment in the mining sector has been slower than anticipated, although this is expected to gather pace in coming years with the loss of a net 50,000 by 2019.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN BUREAU OF STATISTICS

O’Keefe ready to ride iron ore’s upswing

roymorgansocial Leave a comment

Original article by Brian Robins
The Sydney Morning Herald – Page: 23 : 13-Jun-16

Champion Iron chairman Michael O’Keefe hopes the iron ore group can replicate the success he had at coal producer Riversdale Mining, which Rio Tinto bought for $A4bn during the resources boom. Champion Iron was created via the merger of Australian-listed Mamba Minerals and Canada’s Champion Mines. The group paid $C10.5m for the Bloom Lake iron ore project, which boasts 66 per cent iron. In contrast, most Australian iron ore has an iron content of 62 per cent or less. O’Keefe has targeted late 2017 for the first shipment from Bloom Lake.

CORPORATES
CHAMPION IRON LIMITED – ASX CIA, RIO TINTO LIMITED – ASX RIO, RIVERSDALE MINING LIMITED, CLIFFS NATURAL RESOURCES INCORPORATED, IRON ORE COMPANY OF CANADA

Gold’s M&A to scale down as sales dry up

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 20 : 9-Jun-16

Evolution Mining and Northern Star Resources are among the mid-tier gold producers that have benefited from the asset sales programs of larger global rivals in recent years. Evolution chairman Jake Klein cautions that future opportunities for acquisitions in the sector will become limited, with fewer large projects likely to be put up for sale. He says the focus is likely to shift to exploration and development, and he has called for greater collaboration between mid-tier and small gold miners.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, OCEANAGOLD CORPORATION – ASX OGC, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, INDEPENDENCE GROUP NL – ASX IGO, SIRIUS RESOURCES NL

The lithium boom will end, like all the others

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 28 : 1-Jun-16

Expectations of strong growth in demand for lithium-ion batteries has prompted a rally in the price of lithium, and in turn bolstered the share prices of lithium producers. However, there are some similarities between the lithium boom and the iron ore boom. Macquarie Group believes that the lithium boom will have run its course within about 18 months. It has "buy" recommendations on just two lithium producers, Orocobre and Neometals.

CORPORATES
OROCOBRE LIMITED – ASX ORE, NEOMETALS LIMITED – ASX NMT, MACQUARIE GROUP LIMITED – ASX MQG, GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED – ASX GMM, PILBARA MINERALS LIMITED – ASX PLS, ALTURA MINING LIMITED – ASX AJM, LATIN RESOURCES LIMITED – ASX LRS, TALISON LITHIUM LIMITED, SQM, ALBERMARLE CORPORATION, FMC LITHIUM, CITIGROUP PTY LTD, ATLAS IRON LIMITED – ASX AGO, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG

M&A won’t solve BHP’s growth questions

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 29 : 31-May-16

Citi analyst Clarke Wilkins notes that BHP Billiton has performed poorly in terms of mergers and acquisitions in recent years, and its high level of debt is likely to rule out acquisitions in the next several years. Wilkins adds that there is a dearth of suitable acquisitions at present, particularly in the copper and oil sectors, and he suggests that the resources giant could instead consider asset sales. He identifies BHP’s petroleum division as a potential candidate for asset sales.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO, POTASH CORPORATION OF SASKATCHEWAN INCORPORATED, GLENCORE PLC, SOUTH32 LIMITED – ASX S32

Galaxy Resources, General Mining in $700m merger

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 31-May-16

Lithium miners Galaxy Resources and General Mining Corporation have confirmed a merger deal. Shares in both groups resumed trading on 30 May 2016 after Galaxy unveiled a proposal to offer 1.65 of its shares for each share in General Mining. The merged entity’s assets will include the joint venture Mt Cattlin project in Western Australia. There is expected to be strong growth in demand for lithium in coming years.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED – ASX GMM, GLOBAL LITHIUM LLC

Trimmed down miners tipped as next hot sector

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 27-May-16

UBS Small Companies Fund portfolio managers Stephen Wood and David Haddad are upbeat about the outlook for smaller Australian-listed mining companies. They note that many small-capitalisation mining groups have significantly reduced their costs over the last five years, which has made them attractive to investors. UBS favours stocks such as Fortescue Metals Group, Sundance Resources, Whitehaven Coal, Galaxy Resources, Orocobre and Pilbara Minerals.

CORPORATES
UBS HOLDINGS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, SUNDANCE RESOURCES LIMITED – ASX SDL, WHITEHAVEN COAL LIMITED – ASX WHC, GALAXY RESEARCH AND PLANNING PTY LTD, OROCOBRE LIMITED – ASX ORE, PILBARA MINERALS LIMITED – ASX PLS, CITIGROUP PTY LTD

BHP tunes up Olympic Dam but timing slightly off

roymorgansocial Leave a comment

Original article by Simon Evans
The Australian Financial Review – Page: 17 & 22 : 27-May-16

BHP Billiton will hire an additional 120 workers at its Olympic Dam copper and uranium mine in South Australia. The resources group intends to expand underground mining at Olympic Dam, with plans to increase copper production from 200,000 tonnes in 2015-16 to 230,000 tonnes in 2020-21. BHP eventually aims to lift annual production to 280,000 tonnes. However, the long-term goal of 450,000 tonnes per annum will depend on the use of heap leaching technology, which is currently being trialled.

CORPORATES
BHP BILLITON LIMITED – ASX BHP