MINING CORPORATIONS – AUSTRALIA

High-profile backers give BHP green light for improved Anglo bid

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 7-May-24

Argo Investments’ Andy Forster believes that BHP’s takeover bid for Anglo American makes sense, but he adds that BHP will need to sweeten its bid in order to gain the target’s support. He adds that BHP must adopt a "disciplined" approach to the takeover bid. Wilson Asset Management has also expressed support for BHP’s takeover bid; WAM Leaders Fund portfolio manager Matt Haupt notes that Anglo American’s copper assets will generate synergies for BHP, and he believes that the latter has the capacity to increase its offer by 5-10 per cent.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ARGO INVESTMENTS LIMITED – ASX ARG, WILSON ASSET MANAGEMENT, WAM LEADERS LIMITED – ASX WLE

High-profile backers give BHP green light for improved Anglo bid

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 7-May-24

Argo Investments’ Andy Forster believes that BHP’s takeover bid for Anglo American makes sense, but he adds that BHP will need to sweeten its bid in order to gain the target’s support. He adds that BHP must adopt a "disciplined" approach to the takeover bid. Wilson Asset Management has also expressed support for BHP’s takeover bid; WAM Leaders Fund portfolio manager Matt Haupt notes that Anglo American’s copper assets will generate synergies for BHP, and he believes that the latter has the capacity to increase its offer by 5-10 per cent.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ARGO INVESTMENTS LIMITED – ASX ARG, WILSON ASSET MANAGEMENT, WAM LEADERS LIMITED – ASX WLE

BHP needs bid lift for Anglo deal

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Original article by Perry Williams
The Australian – Page: 17 : 1-May-24

Research house Bernstein says BHP’s takeover bid for Anglo American can secure the target’s support at the right price. BHP’s offer comprises 0.7097 of its shares for every share in Anglo American; this valued Anglo’s shares at Stg25.08 at the time the offer was made. Bernstein analysts suggest that BHP’s bid could succeed if its offer is increased to around Stg29 per share. Anglo American deemed BHP’s initial approach to be "opportunistic", and contended that it significantly undervalues the company’s assets. Anglo American has given BHP a deadline of 22 May to make a firm offer or walk away from the proposed deal.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, BERNSTEIN RESEARCH

BHP hunts big game in Africa

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 17 : 30-Apr-24

BHP’s primary interest in making a takeover bid for Anglo American is the latter’s copper assets, which include the Quellaveco, Los Bronces and Collahuasi projects. The proposed $59.6bn deal would see BHP regain exposure to commodities that it has been seeking to exit for the last decade, such ad diamonds and manganese. BHP has also indicated that it has no desire to hold long-term ownership of Anglo American’s platinum and iron ore assets in South Africa. Nevetheless, BHP is expected to make a sweetened takeover offer for Anglo American. Rivals such as Glencore could also potentially make a bid now that Anglo American is in play.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, GLENCORE PLC

BHP’s bold Anglo American bid

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 26-Apr-24

BHP says that acquiring Anglo American would increase its exposure to ‘future facing commodities’, given that the latter has significant copper assets. Anglo American has advised that its board is considering the Stg31bn ($60bn) offer, which it has described as "unsolicited, nonbinding and highly conditional". BHP’s offer comprises 0.7097 of its shares for every Anglo American share. The bid values the target at Stg25.08 per share, although BHP is effectively proposing to pay Stg16.82 per share because the offer is conditional on Anglo American selling its stakes in Anglo Platinum and Kumba Iron Ore to its current shareholders. Anglo American has given BHP a deadline of 22 May to make a firm offer or walk away from the proposed deal.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ANGLO AMERICAN PLATINUM CORPORATION, KUMBA IRON ORE LIMITED

Fortescue confident on export guidance

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Original article by Nick Evans
The Australian – Page: 16 : 25-Apr-24

Pure-play iron ore miner Fortescue has advised that its shipments from the Pilbara totalled 43.3 million tonnes in the March quarter. This was 11 per cent lower than the December quarter and down six per cent year-on-year. The lower export volumes have been attributed to the impact of a haulage train derailment during the quarter. Fortescue has conceded that full-year shipments are likely to be at the lower end of its guidance of 192-197 million tonnes. Fortescue shipped just 138.5 million tonnes in the first half of 2023-24, which will require it to ship 53.5 million tonnes in the final quarter. Meanwhile, Fortescue has further downgraded its forecast for shipments from the Iron Bridge magnetite project.

CORPORATES
FORTESCUE LIMITED – ASX FMG

Liebherr electric excavator reaches million ton milestone, scores more orders

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Original article by Jo Borris
Electrek – Page: Online : 21-Apr-24

The large Liebherr electric excavator that is operating at Fortescue’s Christmas Creek iron ore mine in Western Australia achieved a major milestone earlier in April when it moved its one millionth tonne of dirt. Fortescue has been very impressed with the Liebherr electric excavator, and aims to have two more commissioned by the end of April. Fortescue CEO Dino Otranto says that around 95 million litres of diesel will be removed from its operations every year once its entire fleet is decarbonised, or more than a quarter of a million tonnes of carbon dioxide equivalent.

CORPORATES
FORTESCUE LIMITED – ASX FMG, LIEBHERR AG

Religious freedom challenge for Rio and BHP’s US copper mine

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Apr-24

BHP and Rio Tinto are facing another legal challenge to their joint venture Resolution Copper project in Arizona. The plaintiffs from the San Carlos Apache tribe are seeking to overturn a 2014 deal to transfer federal land to the joint venture; this land includes an area known as Oak Flat, which is regarded as a sacred site by Native Americans. The case will be argued on the basis that disturbing a sacred site would breach the Religious Freedom Restoration Act. Resolution is slated to produce 40 billion pounds of copper concentrate over four decades.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, RESOLUTION COPPER MINING LLC

Big investors steer clear of Fortescue, and miss major rally

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Original article by Joshua Peach
The Australian Financial Review – Page: 29 : 17-Apr-24

Analysis shows that pure-play iron ore miner and ‘green’ hydrogen aspirant Fortescue is now the least-held top-10 ASX-listed stock among institutional investors. Just one portfolio manager at more than 30 actively managed Australian equity funds has disclosed a substantial position in Fortescue so far in 2024. Fund managers have cited a number of reasons for shunning Fortescue, such as lower iron ore grades than its key rivals, the high turnover within Fortecue’s leadership team and its rising expenditure on hydrogen projects. However, Fortescue’s shares significantly outperformed BHP and Rio Tinto between September and February.

CORPORATES
FORTESCUE LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Tigers Realm sells out of Russia

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Original article by Cameron England
The Australian – Page: 18 : 16-Apr-24

Tigers Realm Coal has advised that it will divest its sole operating assets and return the proceeds of the $US49m transaction to shareholders. Tigers Realm has agreed to sell its coking coal projects in Siberia and an associated coal export terminal to APM-Invest, a company that is owned by Russian businessman Mark Buzuk. Tigers Realm says its board was of the view that selling its assets is in the best interests of shareholders. The move follows the Federal Court’s recent ruling that Tigers Realm was in breach of sanctions imposed on Russia in response to the invasion of Ukraine.

CORPORATES
TIGERS REALM COAL LIMITED – ASX TIG, APM-INVEST, FEDERAL COURT OF AUSTRALIA