MINING CORPORATIONS – AUSTRALIA

New Hope cautious as China lifts coal ban

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 20-Sep-23

New Hope Corporation has posted a net profit of $1.08bn for the year to 31 July, which is 11 per cent higher than previously. Underlying EBITDA was also up 11 per cent to $1.75bn, and revenue rose by 7.9 per cent. The coal miner has advised that it received an average realised price of $346.73 per tonne, a year-on-year increase of 23 per cent. New Hope sold just $79.6m worth of coal to Chinese buyers in its 2022-23 financial year, despite the removal of the ban on Australia coal imports; CEO Rob Bishop says New Hope will continue to prioritise its major customers in Japan and Taiwan.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

Moody’s warns on Fortescue executive churn

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Original article by Peter Ker
The Australian Financial Review – Page: 12 : 20-Sep-23

Ratings agency Moody’s has reaffirmed its ‘Ba1’ credit rating for iron ore miner Fortescue Metals Group. However, Moody’s has warned that the high level of turnover within Fortesue’s executive ranks in the last several years could adversely affect the company’s credit rating. The firm also notes that the high level of stock ownership by Fortescue chairman Andrew Forrest increases governance risks, while it adds that looming final investment decisions on five clean energy projects may put further pressure on Fortescue’s balance sheet.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED

Rinehart raid shows Liontown’s quality

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 19 : 13-Sep-23

Gina Rinehart’s Hancock Prospecting has built up a 7.72 per cent strategic stake in lithium hopeful Liontown Resources. This includes the purchase of almost 60 million shares several days after Liontown’s board endorsed Albemarle’s sweetened takeover off on 4 September. Liontown chairman Tim Goyder says Hancock’s emergence on its share register demonstrates the quality of the Kathleen Valley lithium project in Western Australia. Meanwhile, Mineral Resources MD Chris Ellison has been appointed as the chairman of Delta Lithium; Mineral Resources has a 17.4 per cent stake in Delta.

CORPORATES
LIONTOWN RESOURCES LIMITED – ASX LTR, HANCOCK PROSPECTING PTY LTD, ALBERMARLE CORPORATION, MINERAL RESOURCES LIMITED – ASX MIN, DELTA LITHIUM LIMITED – ASX DLI

BHP says IR changes to cost more than $1.3b estimate

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Original article by Peter Ker
The Australian Financial Review – Page: 5 : 6-Sep-23

BHP estimated in May that the ‘same job, same pay’ policy for labour hire workers would cost the resources group about $1.3bn a year. However, BHP believes that the actual cost may be much higher, given that the explanatory memorandum attached to the Closing Loopholes Bill could potentially capture mining service providers such as Thiess and Downer EDI. BHP did not take such providers into account when it released the initial estimate. BHP says it supports the intention of the bill with regard to low-paid and vulnerable workers, but argues that it is not appropriate for the mining sector; BHP notes that the average wage for employees in its Operations Services division is nearly $150,000 a year.

CORPORATES
BHP GROUP LIMITED – ASX BHP,THIESS PTY LTD,DOWNER EDI LIMITED – ASX DOW

Lynas hit with cost blowout on rare earths plant

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Original article by Brad Thompson
The Australian Financial Review – Page: 16 : 30-Aug-23

Lynas Rare Earths has reported a 2022-23 net profit of $310.7m, compared with $540.8m for the previous financial year; revenue fell from $920m in 2021-22 to $739.3m. The company received an average price of $46.20 per kilogram for its rare earths oxides, compared with an average of $60.30 per kilogram in 2021-22. Meanwhile, Lynas has revealed that the cost of building its cracking and leaching plant at Kalgoorlie in Western Australia has risen to $730m. Its previous estimate was $575m, and the cost increase has been attributed to factors such as the need to meet a deadline of 1 January to cease downstream processing at its plant in Malaysia.

CORPORATES
LYNAS RARE EARTHS LIMITED – ASX LYC

Billionaire MinRes boss charts a new course for lithium

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 : 30-Aug-23

Mineral Resources has reported a 2022-23 net profit of $244m, which is 30 per cent lower than previously. The result was marred by a $552m writedown in the value of its iron ore assets. However, revenue rose by 40 per cent to $4.7bn and underlying EBITDA was 71 per cent higher at $1.8bn. MD Chris Ellison says Mineral Resources is looking at bypassing battery manufacturers and chemicals producers to sell lithium directly to car manufacturers. He has also indicated that the company’s Yilgarn iron ore project is likely to reach the end of its mine life within three years.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

BHP rejects talk of iron ore price freefall

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Original article by Nick Evans
The Australian – Page: 13 & 18 : 23-Aug-23

BHP has posted a 2022-23 underlying net profit of $US13.4bn ($20.8bn), which is 37 per cent lower than previously. Its iron ore division reported underlying EBITDA of $US16.6bn for the year, down from $US21.7bn previously but in line with market expectations. BHP produced 285 million tonnes of iron ore in the Pilbara during 2022-23, while it expects output of 282 to 294 million tonnes in 2023-24. CEO Mike Henry has also downplayed fears that the iron ore price might fall below $US80 per tonne if China reduces its steel production. Meanwhile, lower prices and changes to the Queensland government’s royalties regime resulted in a sharp fall in the earnings of BHP’s coking coal mines in 2022-23.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Iron ore giant Fortescue Metals targeted by Russian ransomware group

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Original article by
The Guardian Australia – Page: Online : 19-Jul-23

Fortescue Metals Group has confirmed that a small amount of non-confidential data was stolen in a cyber-attack in late May. The iron ore miner has advised that it had informed the Australian Cyber Security Centre of the "low-impact cyber incident", and that it has completed an internal investigation and taken remediation action. Russian ransomware group C10pm has claimed that it was responsible for the Fortescue cyber attack, and it is believed to have hacked more than 100 companies worldwide.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Secret probe cleared Forrest of wrongdoing

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Original article by Brad Thompson, Peter Ker
The Australian Financial Review – Page: 15 : 17-Jul-23

It has been revealed that the board of Fortescue Metals Group engaged law firm Seyfarth Shaw to conduct a secret review into claims that executive chairman Andrew Forrest was involved in a relationship with an employee of the company. The board has advised that the investigation was instigated as a result of claims being raised in an anonymous letter, and that the investigation found that none of the claims were substantiated. The revelation of the investigation comes after Forrest and his wife Nicola recently disclosed that they have separated.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SEYFARTH SHAW LLP

Rio hunts in the outback for new lithium deposits

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Original article by Elouise Fowler, Peter Ker
The Australian Financial Review – Page: 18 : 12-Jul-23

Rio Tinto has extended a lithium exploration partnership with Everest Metals with regard to the latter’s Rover Project in Western Australia. Everest has advised that Rio Tinto Exploration will commence a drilling program to assess the hard rock lithium reserves at the Rover Project. The Rio Tinto subsidiary struck an initial exploration deal with Everest in March 2021, before taking an 80 per cent stake in the venture in October 2022. WA is the world’s biggest source of hard rock lithium.

CORPORATES
RIO TINTO LIMITED – ASX RIO, EVEREST METALS CORPORATION LIMITED – ASX EMC