MINING CORPORATIONS – AUSTRALIA

Junior miners ripe for picking, says Lanstead

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 30-Mar-16

British fund manager Lanstead Investors aims to invest about $A300m in Australian-listed stocks over the next several years. Its portfolio currently comprises about $A50m worth of Australian shares, and co-founder Greg Kofford is bullish about local resources groups. He believes that smaller resources companies in particular offer good value at present. Lanstead director Andrew Sparke notes that lack of access to capital has forced many smaller miners to shelve quality projects.

CORPORATES
LANSTEAD INVESTORS PTY LTD, WESTERN MINING NETWORK LIMITED – ASX WMN, CARBINE TUNGSTEN LIMITED – ASX CNQ, MUSTANG RESOURCES LIMITED – ASX MUS, LITHIUM AUSTRALIA NL – ASX LIT, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Qube benefits from Brockman’s maverick move on Pilbara

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 17 : 30-Mar-16

Australian-listed iron ore group Brockman Mining still aims to gain access to the rail network of Fortescue Metals Group in the Pilbara region of Western Australia. Brockman has secured an agreement for logistics group Qube Holdings to transport iron ore from its Maverick project by road to Port Hedland, but large-scale production will require transport via rail. Brockman estimates that the project’s operating costs will be around $US35 per tonne.

CORPORATES
BROCKMAN MINING LIMITED – ASX BCK, QUBE HOLDINGS LIMITED – ASX QUB, FORTESCUE METALS GROUP LIMITED – ASX FMG, COURT OF APPEAL (WESTERN AUSTRALIA)

Rio’s long game in copper hunt

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Original article by Amanda Saunders
The Australian Financial Review – Page: 59-60 : 24-Mar-16

Expectations of a looming global undersupply of copper has prompted renewed interest in the red metal among the world’s biggest mining companies. Jean-Sebastien Jacques, the head of Rio Tinto’s copper division and the group’s incoming CEO, forecasts that global copper supply will go into deficit in 2018-19. He says Rio would consider buying any so-called tier one copper assets that are put on the market, but notes that even tier two and tier three copper assets are expensive now.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ANTOFAGASTA PLC, SUMITOMO CORPORATION, INTERNATIONAL COPPER STUDY GROUP

Miners feel pinch of dollar, oil switch

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Original article by Paul Garvey
The Australian – Page: 20 : 23-Mar-16

The Australian dollar has risen by about 10 per cent so far in 2016. This has offset the benefits of the rebound in the prices of key resources commodities, which are typically priced in US dollars. Mining companies have also been hit by increased fuel costs due to the rally in the crude oil price. Tom Price of Morgan Stanley says the rise in the value of the currency and the crude oil price may prompt more resources groups to reduce production or mothball mines.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Ore glut ‘vandalism’ over

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Original article by Glenda Korporaal, Barry FitzGerald
The Australian – Page: 19 & 20 : 23-Mar-16

Rio Tinto’s iron ore production in 2015 was 20 million tonnes lower than the group had forecast, while BHP Billiton’s output was in line with the previous year. They had had ramped up production in recent years, attracting criticism from Fortescue Metals Group chairman Andrew Forrest. He believes that the period of oversupply has now ended, but says it resulted in job losses in Australia and over-production by Chinese steelmakers. Forrest has also suggested that the recent resignation of Rio Tinto CEO Sam Walsh may have been due to a change to its iron ore strategy.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, ROY HILL IRON ORE PTY LTD, UBS HOLDINGS PTY LTD, BOAO FORUM FOR ASIA

Rio chief-in-waiting downplays expansion

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Original article by James Chessell
The Australian Financial Review – Page: 15 : 21-Mar-16

Jean-Sebastien Jacques has indicated that reducing costs, balance sheet strength and industrial safety will be among Rio Tinto’s priorities when he succeeds Sam Walsh as CEO in July 2016. There had been speculation that Rio Tinto will ramp up its growth strategy under Jacques, following several years of cost-cutting. He is currently the head of Rio Tinto’s copper and coal division.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SANFORD C BERNSTEIN AND COMPANY, BARCLAYS BANK PLC, RIVERSDALE MINING LIMITED

New Rio CEO an internal peak, confirming Walsh’s 2015 tip

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Original article by Amanda Saunders
The Australian Financial Review – Page: 3 : 18-Mar-16

Rio Tinto’s head of copper and coal, Jean-Sebastien Jacques, has been appointed CEO of the mining giant. He will take over from Sam Walsh in July 2016. Meanwhile, he will act as deputy CEO and will also join the board of the company. Jacques played a prominent role in negotiations with the Mongolian Government for an Oyu Tolgoi mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC

Explorers ditch ASX as downturn bites

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Original article by Tess Ingram
The Australian Financial Review – Page: 26 : 17-Mar-16

Analysis by BDO shows that about 16 per cent of the 753 Australian-listed exploration companies had no active exploration program in the December 2015 quarter. Meanwhile, 25 exploration companies delisted, were placed in administration or opted to exit the sector during the period. Meanwhile, nearly 50 per cent of companies that remain in the sector are estimated to be able to finance operating expenditure for no more than two quarters.

CORPORATES
BDO CHARTERED ACCOUNTANTS AND ADVISERS, DORAY MINERALS LIMITED – ASX DRM, BARRICK GOLD CORPORATION

Fortescue shrugs off ratings hit

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Original article by Paul Garvey
The Australian – Page: 20 : 16-Mar-16

Shares in Fortescue Metals Group closed just 1.55 per cent lower on 15 March 2016, following a decision by Moody’s to downgrade the iron ore producer’s credit rating. In contrast, BHP Billiton and Rio Tinto shares both fell by 3.4 per cent. Meanwhile, Morgan Stanley has reduced its share price target for Fortescue from $A2.10 to $A1.90 and downgraded its recommendation on the stock to "underweight".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Russian sells off FMG stake

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Original article by Barry FitzGerald
The Australian – Page: 20 : 15-Mar-16

Shares in Fortescue Metals Group closed 2.6 per cent lower at $A2.58 on 14 March 2016, after the iron ore price retreated from recent highs. Meanwhile, Russia-based Magnitogorsk Iron & Steel has trimmed its stake in Fortescue by 0.64 per cent. The group is believed to have sold 20 million shares at $A2.55 apiece. The transaction follows recent speculation that Magnitogorsk could reduce its stake to capitalise on Fortescue’s share price rally in 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MAGNITOGORSK IRON AND STEEL WORKS (MMK), MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, FITCH RATINGS LIMITED, BHP BILLITON LIMITED – ASX BHP, VALE SA, BLOOMBERG LP, CITIGROUP PTY LTD