MINING CORPORATIONS – AUSTRALIA

Vale’s latest legal blow boosts iron ore stocks

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 8-May-19

Brazilian miner Vale has advised that its sales of iron ore and pellets in 2019 will be at the lower end of its previous forecast of between 307 and 332 million tonnes. The revised guidance follows a court’s move to reverse its decision to allow Vale to resume production at mines that were affected by a tailings dam collapse in January. Shares in Australian iron ore miners rallied on 7 May, and Peter O’Connor of Shaw & Partners expects further volatility in the price of the steel input in the next several years.

CORPORATES
VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, MOUNT GIBSON IRON LIMITED – ASX MGX

We will go hard on Winu copper, gold discovery: Rio Tinto

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Original article by Stuart McKinnon
The West Australian – Page: Online : 3-May-19

Rio executive Stephen McIntosh says the company plans to increase the level of exploration activity at its Winu copper-gold discovery in Western Australia so as to quickly ascertain its potential. McIntosh was speaking at a Macquarie Bank conference on 2 May, while he noted that Rio could move to divest Winu if it did not prove to be a "Tier 1 asset". Rio released initial drilling results for Winu in March, following a year or more of speculation concerning its potential to be a major discovery.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Kidman bid not a replacement for Lynas, says Wesfarmers chief

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Original article by Patrick Hatch, Darren Gray
The Sydney Morning Herald – Page: Online : 3-May-19

Shares in Kidman Resources rose 45 per cent to close at $1.87 on 2 May after conglomerate Wesfarmers made a $776 million takeover bid for the lithium miner. Kidman’s main asset is a 50 per cent stake in a Western Australian lithium project, and joint venture partner SQM supports Wesfarmers’ bid. Wesfarmers CEO Rob Scott says that despite the Kidman bid, its takeover bid for rare earths producer Lynas Corporation remains on the table.

CORPORATES
KIDMAN RESOURCES LIMITED – ASX KDR, WESFARMERS LIMITED – ASX WES, SOCIEDAD QUIMICA Y MINERA SA, LYNAS CORPORATION LIMITED – ASX LYC, WESTERN AREAS LIMITED – ASX WSA

Rio fast-tracks copper in hunt for growth

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Original article by Nick Evans
The Australian – Page: 20 : 2-May-19

Resources group Rio Tinto has signalled that it will ramp up its capital investment in coming years. Rio executive Stephen McIntosh has told a conference that its capital expenditure has risen above depreciation levels again, after falling in 2016 following the completion of iron ore expansion projects. McIntosh says a priority for Rio Tinto will be to determine the extent of the copper resources at its Winu discovery in Western Australia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALUMINIUM CORPORATION OF CHINA LIMITED

Newcrest seeks time to fix its tailings dam

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Original article by Nick Evans
The Australian – Page: 24 : 1-May-19

Newcrest Mining has advised that it produced 623,000 ounces of gold during the March quarter, which is five per cent lower than in the December 2018 quarter. Its average all-in sustaining cost rose by $18 to $738 an ounce during the period, although its average margin on gold sales rose by $48 to $563 an ounce. Meanwhile, CEO Sandeep Biswas says Newcrest has accepted all of the findings and recommendations of an independent panel’s review of the partial collapse of a tailings dam wall at its Cadia mine in March 2018.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM

BHP keeps its title as world’s top mine brand

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Original article by Melissa Yeo
The Australian – Page: 20 : 26-Apr-19

BHP’s brand value is estimated to be $US6bn ($8.6bn) in Brand Finance’s latest rankings for the global mining sector. The resources giant has topped the list for a second successive year, and is followed by ArcelorMittal and Glencore. BHP launched a rebranding initiative in 2017, accompanied by a new marketing campaign.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BRAND FINANCE PLC, ARCELOR MITTAL SA, GLENCORE PLC, VALE SA

Grange raises property stake amid concerns

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 26-Apr-19

The decision by iron ore miner Grange Resources to diversify into property development continues to attract scrutiny. Grange is focusing on apartment developments in Melbourne suburbs such as Toorak and Prahran, where dwelling prices fell sharply in 2018. Some shareholders have expressed concern about the adequacy of Grange’s disclosures regarding its investment in the venture. CGI Glass Lewis has also urged investors to vote against Grange’s remuneration report at its upcoming AGM.

CORPORATES
GRANGE RESOURCES LIMITED – ASX GRR, CGI GLASS LEWIS PTY LTD, CORELOGIC AUSTRALIA PTY LTD

Electric cars lift nickel mines

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Original article by Nick Evans
The Australian – Page: 17 : 26-Apr-19

Several nickel producers may resume production at mothballed mines in Western Australia amid growing demand for ethically-sourced cobalt. The Democratic Republic of the Congo accounted for nearly 55 per cent of global supply of cobalt – a byproduct of nickel mining in WA – in 2016. However, BMW has signalled that its next generation of electric cars will only use cobalt from Australia or Morocco. The Democratic Republic of the Congo’s mining industry has been widely criticised for unsafe working conditions and the use of forced labour.

CORPORATES
BMW AG, FIRST QUANTUM MINERALS LIMITED, PANORAMIC RESOURCES LIMITED – ASX PAN, INDEPENDENCE GROUP NL – ASX IGO, GLENCORE PLC, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, TOYOTA MOTOR CORPORATION, HONDA MOTOR COMPANY LIMITED, PANASONIC

Analysts predict iron ore prices have hit peak

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Original article by Cole Latimer
The Age – Page: 25 : 24-Apr-19

UBS has forecast that the iron ore price will average $US83 per tonne in 2019, warning that the steel input’s recent high of around $US93/tonne is not sustainable. The investment bank says recent supply disruptions in Australia and Brazil are unlikely to have a long-term impact on the iron ore price, forecasting that it will fall over the next 12 months. Expectations of a lower iron ore price have also contributed to UBS’s decision to downgrade its recommendation on BHP’s shares from ‘buy’ to ‘neutral’. PhillipCapital expects iron ore to average $US78/tonne in 2019.

CORPORATES
UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, PHILLIP CAPITAL LIMITED, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG

Cashed-up Fortescue flags higher dividend

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Original article by Nick Evans
The Weekend Australian – Page: 27 : 20-Apr-19

Fortescue Metals Group has advised in its production report for the March quarter that its average cost of production is now tipped to between $US13 and $US13.50 a tonne. It had previously advised that its average cost of production would be between $US12 and $US13 a tonne. CEO Elizabeth Gaines said its new 60.1 per cent iron grade West Pilbara Fines product has been well received by customers, while CFO Ian Wells said some of the spare cash generated by its Pilbara iron ore operations could be paid to shareholders in the form of higher dividends.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG