MINING CORPORATIONS – AUSTRALIA

BHP defies price crashes

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 25-Feb-15

BHP Billiton has posted 2014-15 interim underlying earnings of $US5.4bn ($A6.9bn, which is 31 per cent lower than previously. The group’s earnings were hit by the sharp decline in the price of iron ore and crude oil. Meanwhile, BHP intends to reduce its capital expenditure by $US3.8bn in 2014-15 and 2015-16. Shareholders will receive an interim dividend of $A0.62 per share, and CEO Andrew Mackenzie says that maintaining its dividend payout ratio is one of the group’s priorities

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NIKKO ASSET MANAGEMENT GROUP, RIO TINTO LIMITED – ASX RIO, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, ABERDEEN ASSET MANAGEMENT LIMITED, SOUTH32 LIMITED

BHP under pressure to lift returns

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Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 23-Feb-15

BHP Billiton has not reduced its dividend since 1988, and analysts generally agree that a reduced payout is unlikely when the resources giant releases its 2014-15 interim results on 24 February 2015. Paul Young of Deutsche Bank does not expect BHP to increase its dividend for at least another two years, arguing that it should focus on growth rather than improving returns to shareholders. Paul McTaggart of Credit Suisse also says a share buyback is unlikely in the next several years

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, SOUTH32 LIMITED

Arrium chief slams inaction on dumping

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Original article by Tim Binsted
The Australian Financial Review – Page: 26 : 19-Feb-15

Australian-listed steelmaker and iron ore miner Arrium has posted a 2014-15 interim loss of $A1.5bn. The result was marred by $A1.3bn worth of impairment charges associated with its iron ore assets. The group’s mining division posted operating earnings of $A77m, compared with $A423m previously. CEO Andrew Roberts has urged the Anti-Dumping Authority to act more quickly to curb the importation of low-cost steel

CORPORATES
ARRIUM LIMITED – ASX ARI, AUSTRALIA. ANTI-DUMPING AUTHORITY, ALLAN GRAY AUSTRALIA PTY LTD, SOUTHERN IRON PTY LTD

Fortescue pledge to hammer costs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 18-Feb-15

Australian-listed Fortescue Metals Group has posted a 2014-15 interim net profit of $US331m, which is 81 per cent lower than previously. The group received an average of $US66 per tonne for its iron ore in the half-year, compared with the benchmark price of $US82. CFO Stephen Pearce says Fortescue hopes to reduce its cash costs to $US20 per tonne in the next 15 months. Shareholders will received a half-year dividend of $A0.03

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA

Roy Hill delays put schedule in doubt

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

The Roy Hill iron ore project in Western Australia is slated to commence shipments in September 2015. However, CEO Barry Fitzgerald has conceded that some elements of the $A10bn project have been hit by delays. A series of safety problems since mid-2014 have contributed to the delays, and some analysts believe that the project will not reach full capacity for some time

CORPORATES
ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, PATERSONS SECURITIES LIMITED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

South32 to ‘walk before it can run’

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Original article by James Chessell
The Australian Financial Review – Page: 13 & 18 : 16-Feb-15

Analysts estimate that South32 will have a market capitalisation of between $A11bn and $A15bn when it lists on the Australian sharemarket in mid-2015. CEO Graham Kerr says that maximising the group’s existing projects and reducing costs will be its main focus at first, rather than acquisitions. However, Paul Young of Deutsche Bank believes that the BHP Billiton spin-off will have to pursue acquisitions, as its scope for organic growth is limited

CORPORATES
SOUTH32 LIMITED, BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, GLENCORE PLC

Rio Tinto leads $10b in payouts

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 12 : 13-Feb-15

Rio Tinto’s underlying earning for calendar 2014 were nine per cent lower than previously at $US9.3bn, although the result was better than analysts had expected. Rio will repurchase some $US2bn ($A2.6bn) worth of its shares, while a 12 per cent increase in its full-year dividend means a total of $US6bn ($A7.8bn) will be returned to shareholders. The resources group’s net debt has been reduced to $A12.5bn, compared with $US22bn in mid-2013

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TRANSURBAN GROUP LIMITED – ASX TCL, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

BHP: Eagle Ford can weather costs storms

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Original article by John Kehoe
The Australian Financial Review – Page: 18 : 9-Feb-15

BHP Billiton’s operations in the Eagle Ford region of Texas boast around 2,000 employees and contractors. The group recently revealed plans to shut down 10 of its onshore oil and gas rigs in the US, although this will only affect two of its Eagle Ford rigs. BHP’s David Banks says the group is now one of the fastest and lowest-cost oil drillers in the region, and it aims to become the fastest. Some of its oil wells are now being drilled in less than 10 days

CORPORATES
BHP BILLITON LIMITED – ASX BHP, EOG RESOURCES, AUSTRALIAN AMERICAN CHAMBER OF COMMERCE, BAKER AND HUGHES

Mongolia flags Rio mine exit

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Original article by Matt Chambers
The Australian – Page: 21 : 6-Feb-15

New Mongolian Prime Minister Saikhanbileg Chimed has signalled a changed approach that may benefit Australian-listed resources group Rio Tinto. It is the parent of Canada-based Turquoise Hill Resources, which in turn holds two thirds of the major Oyu Tolgoi gold and copper mine in Mongolia. A drawn-out dispute over the cost of an underground expansion with the Government may now be resolved, as the state is ready to divest most or all of its 34% stake. Rio would gain full control, but also pay increased royalties and take on more of the upgrade’s cost of $US5bn ($A6.4bn)

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED, OYU TOLGOI LLC

China’s steel production to fall

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Original article by Sarah-Jane Tasker, Matt Chambers
The Australian – Page: 20 : 5-Feb-15

The iron ore price may fall to below $US60 ($A77) a tonne, having dropped 50% between September 2013 and early February 2015. The commodity is now trading at $US63, but China Iron & Steel Association executive vice secretary-general Li Xinchuang forecasts a further weakening in demand. In response, dominant Australian producers Rio Tinto and BHP Billiton have ramped up their output while also cutting their cash costs by nearly half. Lourenco Goncalves, CEO of US-based rival Cliffs Natural Resources, has criticised the strategy

CORPORATES
CHINA IRON AND STEEL INDUSTRY ASSOCIATION, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CLIFFS NATURAL RESOURCES INCORPORATED, WHITEHAVEN COAL LIMITED – ASX WHC, ILUKA RESOURCES LIMITED – ASX ILU, SOUTH32 LIMITED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, NIKKO ASSET MANAGEMENT GROUP