MINING CORPORATIONS – AUSTRALIA

BHP hits iron ore production record

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Original article by Danielle Le Messurier, Gerard Cockburn
The West Australian – Page: Online : 20-Jan-23

BHP has advised that its iron ore production in the Pilbara rose by three per cent in the December quarter, to 74.3 million tonnes. Iron ore output rose to a record high of 146.4 million tonnes in the first half of 2022-23, as production at the South Flank mine ramped up. However, shipments from the Pilbara fell slightly compared with the same period in 2021-22. BHP still expects iron ore production for the full year to be within the range of 249-260 million tonnes. Meanwhile, BHP has warned that production costs are rising at both its iron ore operations and its Queensland and NSW coal mines.

CORPORATES
BHP GROUP LIMITED – ASX BHP

‘We are fooling ourselves on the timeline’: Rio CEO’s warning on solar

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: Online : 19-Jan-23

Rio Tinto has committed to investing $3bn in green energy for its Pilbara iron ore mines by 2030. Amongst other things, Rio Tinto recently commissioned a 34 megawatt solar power plant for its Gudai-Darri mine. However, CEO Jakob Stausholm has told a World Economic Forum discussion panel that the development of large-scale solar power generation is challenging, even in countries such as Australia. He also addressed the issue of the recycling and re-use of steel and critical minerals, arguing that supply constraints mean that ‘circularity’ is not likely to be a major consideration in the current decade.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WORLD ECONOMIC FORUM

Miners need to take tech risks: BHP

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: 11 : 19-Jan-23

BHP CEO Mike Henry participated in a panel discussion at the World Economic Forum in Davos on Wednesday. He said mining companies will have to take more risks on innovative technology in order to meet the growing demand for commodities as the world transitions to renewable energy. Henry contends that such technology will allow miners to extract more from their existing assets, given that new mines are likely to be smaller, yield lower grades and take longer to get into production.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WORLD ECONOMIC FORUM

Rio’s big new mine to hit full speed

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 18-Jan-23

Rio Tinto has advised that it expects iron ore shipments from the Pilbara in calendar 2023 to be within the range of 320 million to 335 million tonnes. This is in line with its 2022 guidance; its shipments for the year were at the bottom end of this range, at 321.6 million tonnes. Meanwhile, Rio Tinto has indicated that its new Gudai-Darri iron ore mine is expected to reach its maximum capacity of 43 million tonnes a year on a "sustained basis" at some stage in 2023. BHP and Fortescue Metals Group are slated to release their quarterly iron ore export data in coming days.

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

Fortescue’s finance boss wants time with family

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 11-Jan-23

Fortescue Metals Group’s outgoing chief financial officer Ian Wells says that having the opportunity to contribute to the iron ore miner has been a privilege. He will leave Fortescue on 31 January after nearly 13 years at the company, including five years as CFO. Wells says he is looking forward to spending some time with his family and friends. He adds that Fortescue is in a strong position to deliver on its short, medium and long-term growth options, including the Iron Bridge magnetite project and the Fortescue Future Industries subsidiary’s clean energy projects.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, FORTESCUE FUTURE INDUSTRIES PTY LTD

Fortescue top dogs continue their exodus

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Original article by Peter Ker
The Australian Financial Review – Page: 12 & 14 : 10-Jan-23

Fortescue Metals Group has advised that CFO Ian Wells will step down on 31 January in order to "pursue other opportunities". Adrian Prendergast of Morgans says the short notice period is unusual for Fortescue, given that it typically requires key executives to give six months’ written notice. Wells is the ninth senior executive to leave Fortescue in the last two years, and his departure follows the recent resignation of Guy Debelle as CFO of the Fortescue Future Industries clean energy subsidiary. George Boubouras of K2 Asset Management says further executive turnover at Fortescue is possible when Fiona Hick takes up the role of CEO at its mining division in February.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG,FORTESCUE FUTURE INDUSTRIES PTY LTD,MORGANS FINANCIAL LIMITED,K2 ASSET MANAGEMENT HOLDINGS LIMITED – ASX KAM

New mining boss plots further evolution

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 4-Jan-23

Lawrie Conway has formally succeeded Jake Klein as MD of Evolution Mining, although the latter will remain at the gold miner in the role of executive chairman. Conway joined Evolution’s board in 2011, having previously worked for BHP and Newcrest Mining. He was appointed to the role of chief financial officer in 2014, and Evolution subsequently capitalised on a sharp downturn in the gold price to make a series of acquisitions that catapulted it into the ranks of mid-tier gold producers. Evolution’s internal growth plan will be Conway’s immediate priority; however, further acquisitions could also be on the agenda, as he expects global gold miners to divest some assets in coming years.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN,BHP GROUP LIMITED – ASX BHP,NEWCREST MINING LIMITED – ASX NCM

Dividend looms in BHP-OZ takeover

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 23-Dec-22

BHP and OZ Minerals signed a scheme implementation deed on Thursday, concluding a takeover bid that began in August. OZ shareholders will vote on the deal in late March or early April, while the $9.6bn takeover will also require regulatory approval in Brazil and Vietnam. An independent expert’s report will also have to conclude that the deal is in the best interests of OZ shareholders, who will receive $28.25 per share. OZ will be able to use its franking credits to pay a dividend of up to $1.75 per share before the takeover is finalised; however, any dividend will reduce the price that investors will receive for their shares.

CORPORATES
BHP GROUP LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL

Lithium explorer may face class action

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Original article by Tom Richardson
The Australian Financial Review – Page: 27 : 21-Dec-22

Law firm Johnson Winter Slattery is set to launch a class action against lithium explorer AVZ Minerals. The legal action will be financed by litigation funder Omni Bridgeway, and centres on AVZ’s disclosures regarding the Manono lithium project in the Democratic Republic of the Congo. It will be alleged that AVZ breached its continuous disclosure obligations and misled investors over its rights to the project. AVZ’s shares have been in a trading halt since early May.

CORPORATES
AVZ MINERALS LIMITED – ASX AVZ, JOHNSON WINTER AND SLATTERY, OMNI BRIDGEWAY LIMITED – ASX OBL

Many mining stocks overvalued, warns UBS

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Original article by Tom Richardson
The Australian Financial Review – Page: 27 : 14-Dec-22

Shares in BHP have gained 36 per cent in US dollar terms since the end of October. However, UBS analyst Lachlan Shaw says the firm believes that the stock has risen too quickly in a short period of time. UBS has a ‘sell’ rating on BHP and rival iron ore producers Rio Tinto and Fortescue Metals Group. The firm also expects the iron ore price to trade at around $US100 a tonne over the first half of 2023, compared with about $US112/tonne at present; it is then forecast to fall to around $US95 a tonne in the December 2023 quarter. UBS is more upbeat about commodities such as gold, coal, zinc and lithium.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD