MINING CORPORATIONS – AUSTRALIA

BHP’s forecasts blown away by wild weather

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Original article by Nick Evans
The Australian – Page: 42 : 3-Apr-19

BHP has advised that Cyclone Veronica did not cause major damage to its iron ore operations in the Pilbara. However, the resources group has warned that its annual output will be reduced by 6-8 million tonnes due to the cyclone. BHP indicated earlier in 2019 that its export volumes had been cut by four million tonnes due to the forced derailment of an iron ore train in late 2018. Rio Tinto also recently downgraded its iron ore production forecast in the wake of Cyclone Veronica.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, INCITEC PIVOT LIMITED – ASX IPL, UBS HOLDINGS PTY LTD, INSURANCE COUNCIL OF AUSTRALIA LIMITED

Rio closes in on $100 share price

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Original article by Nick Evans
The Australian – Page: 17 & 28 : 2-Apr-19

Shares in Rio Tinto closed 1.7 per cent higher at $99.63 on 1 April, putting the resources giant on track to breach the $100-per-share mark for the first time since mid-2008. Rio Tinto has advised that its iron ore production for 2019 is likely to be at the lower end of its guidance in the wake of Cyclone Veronica and a fire at its Cape Lambert processing plant in January. However, the iron ore price is likely to be bolstered by the recent global supply disruptions. BHP, Fortescue Metals Group and Roy Hill in turn should benefit more from any rise in the iron ore price than Rio Tinto, as Cyclone Veronica had less impact on Port Hedland than Cape Lambert.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, VALE SA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE CAPITAL PTY LTD

Fortescue expects China’s ore demand to stay strong

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Original article by Michael Smith
The Australian Financial Review – Page: 17 & 20 : 29-Mar-19

Fortescue Metals Group CEO Elizabeth Gaines says there are no indications that Chinese steel production is contracting. She adds that the general consensus of Fortescue’s iron ore customers in China is that growth in steel output will to slow to 3-4 per cent in 2019. This follows 12 per cent growth in 2018. Gaines has also indicated that China’s move to restrict Australian coal imports has had no impact on Fortescue’s iron ore shipments. The pure-play miner has resumed shipments from Port Hedland in the wake of Cyclone Veronica.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BOAO FORUM FOR ASIA, SHANGHAI BAOSTEEL GROUP CORPORATION, FORMOSA GROUP, VALE SA

Wesfarmers talks to Malaysia over Lynas

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 28-Mar-19

Rare earths miner Lynas Corporation has rejected an unsolicited $1.5bn takeover bid from Wesfarmers. Lynas CEO Amanda Lacaze has also criticised Wesfarmers’ move to engage directly with the Malaysian government regarding Lynas’s processing plant in Kuantan, stating that the conglomerate cannot speak on behalf of the company. Meanwhile, stockbroking firm Morgans has cited factors such as the political risk in Malaysia for its decision to downgrade its recommendation on Wesfarmers shares from ‘add’ to ‘hold’.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES, MORGANS FINANCIAL LIMITED, GREENCAPE CAPITAL PTY LTD, CHALLENGER LIMITED – ASX CGF, CITIGROUP PTY LTD

Rinehart, Forrest and big miners sweet on Ecuador

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 25-Mar-19

Sunstone Metals CEO Malcolm Norris expects there to be a lot of gold and copper discoveries in Ecuador in the next 10 years. Norris, secured the Cascabel tenement in Ecuador some years ago when he was in charge of SolGold, which owns 85 per cent of Cascabel. SolGold recently launched a hostile takeover bid for Cornerstone Capital, which has a 15 per cent stake in Cascabel. Cornerstone has spurned the takeover bid and criticised SolGold for what it stated were ongoing delays with releasing information about Cascabel.

CORPORATES
SUNSTONE METALS LIMITED – ASX STM, SOLGOLD PLC, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM, CORNERSTONE CAPITAL RESOURCES INCORPORATED, FORTESCUE METALS GROUP LIMITED – ASX FMG, HANCOCK PROSPECTING PTY LTD

Fortescue enters the big tech race

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Original article by Paul Garvey
The Australian – Page: 24 : 22-Mar-19

Pure-play iron ore miner Fortescue Metals Group will establish a research and development centre for self-driving cars in Karratha. Amongst other things, the research facility will undertake a trial of self-driving light vehicles at the Christmas Creek iron ore mine. Fortescue CEO Elizabeth Gaines expects autonomous vehicles to become widely used in both the mining industry and urban areas. Fortescue already operates more than 100 self-driving iron ore haulage trucks in the Pilbara.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, TESLA INCORPORATED, GOOGLE INCORPORATED

Brazil mine ruling brings doubt

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Original article by Paul Garvey
The Australian – Page: 22 : 21-Mar-19

The iron ore price fell sharply on 20 March after a Brazilian court ruled that Vale can resume production at its Brucutu mine, whose annual capacity is 30 million tonnes. The ruling also weighed on the share price of Fortescue Metals Group, which has been a major beneficiary of reduced output in Brazil in the wake of the Brumadinho tailings dam disaster in January. Fortescue COO Greg Lilleyman has told a conference in Perth that Chinese demand for the company’s lower-grade iron ore remains strong, and stockpiles of its ore at Chinese ports have been falling.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, MOUNT GIBSON IRON LIMITED – ASX MGX, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD

Delays imperil 300 mining jobs

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Original article by Paul Garvey
The Australian – Page: 22 : 20-Mar-19

New Hope Corporation has posted a 2018-19 interim net profit of $159.8m, which is 33 per cent higher than previously. The result was boosted by its increased stake in the Bengalla coal mine in New South Wales. Meanwhile, MD Shane Stephan has warned that the company will have to retrench workers at its New Acland mine in Queensland if it does not gain approval for its third-stage expansion by the September quarter. New Acland boasts 300 direct employees and 500 contractors.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC, MORGANS FINANCIAL LIMITED

As decision looms, BHP’s potash passion play fades – for now

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Original article by James Thomson
The Australian Financial Review – Page: 17 & 22 : 18-Mar-19

It is estimated that commencing production at BHP’s Jansen potash project in Canada will require a capital investment of about $US5bn ($7bn). BHP has yet to make a firm commitment to the project, and observers say the resources group cannot continue to postpone a decision indefinitely. On one hand, potash is likely to be a boom commodity in coming years as demand for agricultural crops in regions such as Asia grows. However, the Jansen project will deliver relatively low returns for BHP investors, while global supply of potash is increasing.

CORPORATES
BHP GROUP LIMITED – ASX BHP, POTASH CORPORATION OF SASKATCHEWAN INCORPORATED

Newcrest focus turns to Canada

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Original article by Paul Garvey
The Australian – Page: 22 : 13-Mar-19

Barrick Gold will not proceed with a takeover bid for Newmont Mining Corporation. The two groups will instead combine their gold mines in Nevada via a joint venture arrangement. Newcrest Mining had been touted as a likely bidder for Newmont’s Australian assets if the merger had proceeded. Meanwhile, Rahul Anand of Morgan Stanley says Newcrest’s expertise in block cave mining makes the Red Chris gold mine in Canada a ‘natural fit’ for the company. Newcrest CEO Sandeep Biswas has indicated that the Red Chris deal does not preclude further acquisitions.

CORPORATES
BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, NEWCREST MINING LIMITED – ASX NCM, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, HARMONY GOLD MINING COMPANY LIMITED, LUNDIN MINING CORPORATION