MINING CORPORATIONS – AUSTRALIA

Roy Hill yield delayed in shipping

roymorgansocial Leave a comment

Original article by Sarah-Jane Tasker, Andrew Burrell
The Australian – Page: 21 : 4-Dec-15

The first shipment of iron ore from Gina Rinehart’s Roy Hill project in Western Australia was slated to leave on 4 December 2015. However, Roy Hill has advised that the departure of the cargo ship will be delayed by a week due to the requirements of the Port Hedland Port Authority. The iron ore price is edging towards $US40 per tonne, compared with around $US120 a tonne when work on the Roy Hill project commenced. Meanwhile, the Sydney Mining Club has named Rinehart its Miner of the Decade.

CORPORATES
ROY HILL IRON ORE PTY LTD, HANCOCK PROSPECTING PTY LTD, SYDNEY MINING CLUB, PORT HEDLAND PORT AUTHORITY

BHP and Rio Tinto quietly exit coal

roymorgansocial Leave a comment

Original article by Angus Grigg
The Australian Financial Review – Page: 1 & 5 : 3-Dec-15

Australian-listed BHP Billiton and Rio Tinto have both significantly reduced their thermal coal production since 2008. Rio Tinto has also offloaded some $US2bn worth of thermal coal mines in recent years, while the future of its Hunter Valley mines is uncertain, and BHP spun off some of its thermal coal mines into South32. While coal divestment lobby groups such as 350 Australia have welcomed the big miners’ move to reduce their exposure to coal, Rio Tinto’s Sebastien Jacques recently forecast that global demand for thermal coal will remain strong.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, 350 AUSTRALIA, PENGANA GLOBAL RESOURCES FUND, CITIGROUP PTY LTD, INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS, UNITED NATIONS, SOUTHGOBI RESOURCES LIMITED, BLOOMBERG LP

BHP, Vale set up clean-up fund for river as lawsuit looms

roymorgansocial Leave a comment

Original article by Amanda Saunders, Steve Yolen
The Australian Financial Review – Page: 13 & 18 : 30-Nov-15

BHP Billiton has declined to comment on reports that the Brazilian Government will pursue legal action against both the Australian-listed group and Vale in the wake of the tailings dam disaster at the Samarco iron ore joint venture. However, the two groups intend to establish a non-profit fund to finance remediation of the Rio Doce river, which has been polluted by tailings waste from the project. Some reports have suggested that the fund could be worth around $US200m ($A278m).

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, UNITED NATIONS

BHP dividend not sacred

roymorgansocial Leave a comment

Original article by Matthew Stevens, Amanda Saunders, Mark Ludlow
The Australian Financial Review – Page: 1 & 10 : 26-Nov-15

BHP Billiton’s progressive dividend policy is under scrutiny amid falling commodity prices and a downturn in its share price. BHP chairman Jac Nasser has indicated that the policy will be reviewed when the group’s 2015-16 interim results are released in February 2016. The progressive dividend policy was introduced in 2001 by former chairman Don Argus, who says it was never intended to be in place permanently. BHP has not reduced its dividend payout since 1988.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, RIO TINTO LIMITED – ASX RIO, QUEENSLAND RESOURCES COUNCIL LIMITED, BILLITON PLC

Rio Tinto to approve $US1b South of Embley expansion

roymorgansocial Leave a comment

Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 19 : 26-Nov-15

Australian-listed Rio Tinto has declined to comment on speculation that its board of directors is about to approve development of its South of Embley bauxite project in Queensland. The $A1.4bn project has been delayed due a range of factors, including environmental concerns. Annual production is expected to be around 22.5 million tonnes, and this could potentially rise to around 50 million tonnes per annum.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Iron ore plunges to 10-year low

roymorgansocial Leave a comment

Original article by Daniel Palmer
The Australian – Page: Online : 25-Nov-15

The price of iron ore for immediate delivery to China’s port of Tianjin has fallen by 1.8 per cent to its lowest level in a decade, at $US43.40 per tonne. The previous low of $US44.10 per tonne was recorded in July 2015. The sharp decline in the iron ore price has weighed heavily on Australian producers, with BHP Billiton, Rio Tinto, Fortescue Metals Group, BC Iron and Mount Gibson Iron recording double-digit share price falls in the last month.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, PORT OF TIANJIN, THE STEEL INDEX LIMITED, GUOTAI JUNAN SECURITIES COMPANY LIMITED, VALE SA

Worst yet to come for BHP, says S&P

roymorgansocial Leave a comment

Original article by Peter Ker, Perry Williams
The Australian Financial Review – Page: 29 : 25-Nov-15

Standard & Poor’s has left BHP Billiton’s credit rating of "A+" with a negative outlook unchanged. Analyst May Zhong says the tailings dam disaster at the Samarco iron ore joint venture will not have any near-term effect on BHP’s credit rating. However, Zhong adds that factors such as BHP’s progressive dividend policy and the downturn in commodity prices are likely to adversely affect the group’s financial risk profile in 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S CORPORATION, SAMARCO MINERACAO SA, VALE SA, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Newcrest unscathed as NSW mine reopens

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 16 : 24-Nov-15

Australian-listed Newcrest Mining has advised that problems with a mill at its Cadia gold mine in New South Wales have been resolved. The mill has resumed production after a 35-day shutdown and has returned to full capacity. Output in the September 2015 quarter had been affected by the shutdown, but Newcrest still expects to achieve its 2015-16 full-year production guidance of 2.4 million to 2.6 million ounces of gold.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, SHAW AND PARTNERS LIMITED, CITIGROUP PTY LTD

BHP tipped to cut dividend to keep rating

roymorgansocial Leave a comment

Original article by James Thomson, Peter Ker
The Australian Financial Review – Page: 11 : 24-Nov-15

BHP Billiton’s share price has fallen by 18.3 per cent in the last month, with the stock closing at $A20.07 on 23 November 2015. BHP’s progressive dividend policy has come under scrutiny following the downturn in iron ore and coal prices. Glyn Lawcock of UBS believes that unless prices rebound, the resources giant will have to reduce its dividend to ensure that its credit rating is not downgraded. UBS recently scaled back its 12-month share price target from $A28 to $A24.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ABERDEEN ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S CORPORATION

BHP backs away from progressive dividend

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 20-Nov-15

BHP Billiton CEO Andrew Mackenzie has indicated that the resources group will review its progressive dividend policy in February 2016, when its financial results are released. However, chairman Jac Nasser says that BHP’s balance sheet is its top priority. The progressive dividend policy has come under scrutiny in the wake of a downturn in commodity prices and the tailings dam disaster at BHP’s jointly-owned iron ore project in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, GLENCORE PLC