MINING CORPORATIONS – AUSTRALIA

Mt Gibson iron ore mine may close if prices stay low

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Original article by Tess Ingram
The Australian Financial Review – Page: 22 : 16-Jul-15

Mount Gibson Iron achieved a 15 per cent reduction in costs at its Extension Hill iron ore mine in Western Australia during the second half of 2014-15. The group aims to further reduce costs in 2015-16, with production slated to rise from three million tonnes per annum to at least 3.5 million tonnes. However, CEO Jim Beyer has not ruled out closing the mine if the iron ore price remains subdued. The steel input is trading at around $US50 per tonne.

CORPORATES
MOUNT GIBSON IRON LIMITED – ASX MGX

BHP, Rio investors not tempted by rising yield

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 14-Jul-15

The share prices of BHP Billiton and Rio Tinto have fallen sharply in the last 12 months, although they continue to offer strong dividend yields. However, institutional investors such as the Australian Foundation Investment Company and Argo Investments are not capitalising on the rising yield to increase their shareholdings. Michelle Lopez of Aberdeen Asset Management says a key issue for investors is whether BHP can sustain its progressive dividend policy.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, ARGO INVESTMENTS LIMITED – ASX ARG, ABERDEEN ASSET MANAGEMENT LIMITED, CITIGROUP PTY LTD

BHP and Rio braced and ready for iron ore’s ‘new normal’

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Original article by Amanda Saunders, Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 10-Jul-15

Some analysts believe that the iron ore price could fall below $US40 per tonne as production ramps up in Australia and abroad. The price of the steel input fell below $US45/tonne on 8 July 2015, prompting speculation about the viability of some high-cost smaller iron ore miners. Andrew Harding, the head of Rio Tinto’s iron ore division, remains upbeat about the long-term outlook for the commodity. He says iron ore is now trading at around its long-term average, and argues that record high prices were not sustainable.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, RBC CAPITAL MARKETS, ARRIUM LIMITED – ASX ARI, CLIFFS NATURAL RESOURCES INCORPORATED, MORNINGSTAR PTY LTD, VALE SA, ANGLO AMERICAN PLC, HANCOCK PROSPECTING PTY LTD, ROY HILL IRON ORE PTY LTD, ARGONAUT SECURITIES PTY LTD

Atlas founder keeps faith as raising looms

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Original article by Tess Ingram, Amanda Saunders
The Australian Financial Review – Page: 15 & 20 : 8-Jul-15

Atlas Iron’s current shareholders have agreed to contribute $A15m to the iron ore producer’s $A180m capital raising. Atlas MD David Flanagan is confident that the raising will be well-received, despite the 20 per cent fall in the iron ore price in recent weeks. Flanagan has concluded an international roadshow, and will shortly pitch the capital raising to Australian retail and institutional investors. Atlas will offer the new shares at $A0.05 apiece.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PENGANA CAPITAL LIMITED

Oz Minerals poised to pounce: Citi

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 7-Jul-15

Citigroup has identified a number of Australian-listed mining groups that could potentially pursue acquisitions in the near-term. They include OZ Minerals, Independence Group, Iluka Resources, Mount Gibson Iron and South32. Citigroup also believes that there is the potential for South32 to become a takeover target, along with Sandfire Resources, Whitehaven Coal, Western Areas, Iluka Resources and Regis Resources.

CORPORATES
CITIGROUP PTY LTD, OZ MINERALS LIMITED – ASX OZL, INDEPENDENCE GROUP NL – ASX IGO, ILUKA RESOURCES LIMITED – ASX ILU, MOUNT GIBSON IRON LIMITED – ASX MGX, SOUTH32 LIMITED – ASX S32, SANDFIRE RESOURCES NL – ASX SFR, WHITEHAVEN COAL LIMITED – ASX WHC, WESTERN AREAS LIMITED – ASX WSA, REGIS RESOURCES LIMITED – ASX RRL, EVOLUTION MINING LIMITED – ASX EVN, OCEANAGOLD CORPORATION – ASX OGC, BARRICK GOLD CORPORATION, LA MANCHA RESOURCES INCORPORATED, KENMARE RESOURCES PLC, X2 RESOURCES PARTNERS LP, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, NORTH LIMITED, ALCAN INCORPORATED, RIVERSDALE MINING LIMITED

Iron ore price slump hits mining majors

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 7-Jul-15

The iron ore price’s fall to $US54 per tonne weighed heavily on Australian-listed producers of the steel input on 6 July 2015. Rio Tinto shed 2.57 per cent to close at $A51.16 and Fortescue Metals Group was down 5.7 per cent at a six-year low of $A1.71. Their break-even prices are estimated to be around $US32 and $US39 per tonne respectively.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTEK COMPUTERS LIMITED, VALE SA, UBS HOLDINGS PTY LTD, BARCLAYS BANK PLC

Local juniors under pressure after iron ore price slide

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 & 20 : 6-Jul-15

The price of iron ore was trading at $US55.26 per tonne on 3 July 2015, having surrendered the bulk of recent gains during the week. UBS estimates that the break-even price for many smaller listed iron ore producers is just below the current price of iron ore, including BC Iron, Atlas Iron and Arrium. Glyn Lawcock of UBS notes that smaller iron ore miners have significantly reduced their costs since late 2014, and he expects further cost reductions in the next 12 months.

CORPORATES
UBS HOLDINGS PTY LTD, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, ARRIUM LIMITED – ASX ARI, ROY HILL IRON ORE PTY LTD, MOUNT GIBSON IRON LIMITED – ASX MGX, GRANGE RESOURCES LIMITED – ASX GRR, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOOD MACKENZIE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, RBC CAPITAL MARKETS, CITIGROUP PTY LTD

Exploration ‘zombies’ on rise as mining cash dries up

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Original article by Tess Ingram
The Australian Financial Review – Page: 21 : 1-Jul-15

Data from accounting firm BDO shows that smaller Australian-listed exploration companies spent an average of $A539,000 on exploration during the March 2015 quarter. However, about 20 per cent of the 793 junior explorers invested less than $A10,000 on exploration during the period, while 12 per cent did not undertake any exploration programs. Only one explorer listed at the lower end of the market during the quarter.

CORPORATES
BDO AUSTRALIA LIMITED, CSIRO, NORTHERN STAR RESOURCES LIMITED – ASX NST, LA MANCHA RESOURCES INCORPORATED, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, EXCELSIOR GOLD LIMITED – ASX EXG, RAMELIUS RESOURCES LIMITED – ASX RMS

South32 may be a target

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 : 30-Jun-15

X2 Resources is estimated to have access to about $US13bn worth of equity and debt to finance acquisitions in the resources sector. BHP Billiton spin-off South32 is regarded as a potential target for X2, which is headed by former Xstrata CEO Mick Davis. South32 shares have shed around 20 per cent since the demerger, and it could well become a takeover target if the downturn is sustained. Glencore is also seen as a possible bidder for South32.

CORPORATES
X2 RESOURCES PARTNERS LP, SOUTH32 LIMITED – ASX S32, GLENCORE PLC, NOBLE GROUP LIMITED, TPG CAPITAL LP, BARRICK GOLD CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, CITIGROUP INCORPORATED, LIBERUM CAPITAL LIMITED, XSTRATA AG

BHP-Rio face US opposition to copper mine expansion

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Original article by John Kehoe
The Australian Financial Review – Page: 13 & 18 : 22-Jun-15

The proposed Resolution Copper project in Arizona remains uncertain due to a push to overturn legislation passed by the US Congress for a land-swap deal. Rio Tinto holds a 55 per cent stake in the Resolution Copper joint venture and BHP Billiton holds the remainder. A group of House of Representatives members has introduced legislation to nullify the land-swap, while Apaches object to the project as it is on land adjacent to a sacred site.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, RESOLUTION COPPER MINING LLC, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES), UNITED STATES. DEPT OF THE INTERIOR