MINING CORPORATIONS – AUSTRALIA

Whitehaven books record profit, doles out special dividend

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Original article by Nick Evans
The Australian – Page: Online : 16-Aug-19

Whitehaven Coal has reported a statutory net profit of $527.9 million for the 2019 fiscal year, while advising that its net profit after tax of $564.9 million was a record one for the company. Whitehaven’s underlying EBITDA of $1.04 billion was up $29.8 million on the previous corresponding period. Whitehaven declared a final dividend of $0.13 per share, along with a special dividend of $0.17 per share. Whitehaven achieved an average price of $US100/tonne for its thermal coal for the year, up $US2/tonne.

CORPORATES

Are BHP shareholders on board with crusading boss?

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Original article by Janet Albrechtsen
The Australian – Page: Online : 14-Aug-19

BHP CEO Andrew Mackenzie has shown he is not averse to speaking out on issues such as climate change and a separate voice for indigenous people in the Constitution; he has indicated it is proper that he should do so. However, it is reasonable to ask whether BHP shareholders are comfortable with his stance, as well as querying where the BHP board stands on the issues he is raising and whether his views have their sanction. It is possible that giving indigenous Australians a separate voice could at some point impact on BHP’s shareholder value, so it is reasonable to ask whether Mackenzie has given the board any projections regarding this possibility.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Iron ore outlook not so bleak: analysts

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Original article by Al Root
The Australian – Page: Online : 15-Aug-19

Goldman Sachs analyst Paul Young has upgraded his rating for Fortescue Metals from ‘hold’ to ‘buy’, despite the recent slump in the price of iron ore. Young has also set a price target of $9.80 for Fortescue, around 35 per cent higher than recent levels. Although JP Morgan has noted recently that Vale is producing more ore and Chinese steel inventories are on the increase, Young notes that Goldman’s commodities team has recently upgraded 2019, 2020 and 20201 estimated iron ore prices.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, JP MORGAN AUSTRALIA LIMITED, CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN

Cadia peaks for Newcrest with $1billion bounty

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 12-Aug-19

Newcrest Mining is expected to confirm in the week beginning 12 August that its Cadia gold mine in New South Wales generated over $1 billion of earnings in the year to 30 June. However, such a result is unlikely to be repeated, as Cadia’s production is expected to decline over coming decades. Meanwhile, Newcrest is tipped to finalise the purchase of a 70 per cent stake in the Red Chris mine in Canada from Imperial Metals for $US806.5 million ($1.18 billion) by 16 August.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, IMPERIAL METALS

Digging deeper

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Original article by Peter Ker, William McInnes
The Australian Financial Review Boss – Page: 16-21 : 9-Aug-19

BHP has taken a stronger stance on social and environmental issues such as gender diversity and climate policy under current CEO Andrew Mackenzie. He has also been outspoken on policies such as company tax cuts, free trade and Indigenous rights. Mackenzie believes that companies should take a stance on issues that are likely to have a major impact on them, as well as issues that could have a negative impact if they are not adequately addressed. He recently told an annual investor summit that contributing to the communities in which BHP operates is one of the ways in which it create value for shareholders.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Lynas calls for US backing of rare earth firms

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Original article by Nick Evans
The Australian – Page: 20 : 8-Aug-19

Lynas Corporation MD Amanda Lacaze addressed the annual Diggers & Dealers forum on 7 August. She said the US will need to provide financial support to rare earths producers in order to ensure that it has a secure long-term supply of the minerals, which are critical for electric vehicles and military weapons. Lacaze says she expects Lynas to receive support from the US, given that the company is set to become the only producer of heavy rare earths outside of China.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, DIGGERS AND DEALERS FORUM, BLUE LINE CORPORATION

Fortescue finds port space for magnetite but impasse on royalties

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Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 7-Aug-19

The Iron Bridge magnetite project will significantly increase Fortescue Metals Group’s shipments from Port Hedland, with production slated to commence in 2022. The pure-play iron ore miner has indicated that its port infrastructure will be able to cope with the increased export volumes. Meanwhile, CEO Elizabeth Gaines says the Western Australian government is resisting Fortescue’s efforts to have royalty relief extended to the Iron Bridge project. The royalty discount applies to CITIC’s Sino Iron magnetite project and Ansteel’s Karara project.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIC LIMITED, ANSHAN IRON AND STEEL COMPANY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

BHP pegs Venus as nickel’s rising star

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Original article by Nick Evans
The Australian – Page: 20 : 6-Aug-19

Eddy Haegel, the head of BHP’s Nickel West division, addressed the annual Diggers and Dealers conference on 5 August. He says Nickel West’s future still depends on the outlook for the battery market, but BHP is positioning itself to capitalise on what he describes as a "once-in-a-generation opportunity". BHP has commenced mining at its Venus nickel deposit in Western Australia, while it is undertaking further exploration near its existing nickel operations in the state.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, DIGGERS AND DEALERS FORUM

Gold shines on great western front

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Original article by Nick Evans
The Australian – Page: 17 & 18 : 5-Aug-19

The Gruyere gold mine in Western Australia is slated to produce about 300,000 ounces of gold a year over a 12-year mine life. The mine is a joint venture between Australian-listed Gold Road Resources and South Africa-based Gold Fields, with the latter having been brought in to develop and operate the greenfield project. Gold Fields’ other assets in Australia include Agnew, St Ives and Granny Smith mines, and its Australasian executive vice-president Stuart Mathews has downplayed suggestions that it could offload any of them.

CORPORATES
GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED, REGIS RESOURCES LIMITED – ASX RRL, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, SILVER LAKE RESOURCES LIMITED – ASX SLR, RAMELIUS RESOURCES LIMITED – ASX RMS, DACIAN GOLD LIMITED – ASX DCN, GASCOYNE RESOURCES LIMITED – ASX GCY

Rio warns aluminium on thin ice

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Original article by Nick Evans
The Australian – Page: 17 & 21 : 2-Aug-19

Rio Tinto has posted an underlying after-tax profit of $US4.9bn for the first half of 2019, and underlying EBITDA of $US10.25bn. The result was underpinned by its iron ore division, whose underlying EBITDA was 33 per cent higher than previously at $US7.5bn. Meanwhile. CEO Jean-Sebastien Jacques has warned that the future of the Gladstone and Newcastle aluminium smelters will be in doubt unless action is taken to address the energy crisis on Australia’s east coast. Rio Tinto shareholders will receive an interim dividend of $US1.51 per share and a special dividend of $US0.61.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD, OYU TOLGOI LLC