MINING CORPORATIONS – AUSTRALIA

Women and science driving future BHP

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Original article by Luke Housego
The Australian Financial Review – Page: 17 & 24 : 1-Mar-19

BHP has appointed Laura Tyler to the newly-created role of chief geoscientist, and Jonathan Price has become its inaugural chief transformation officer. CEO Andrew Mackenzie says the new roles are part of BHP’s push to increase its focus on science and technology. Geraldine Slattery and Vandita Pant have also been added to BHP’s executive team, bringing the resources giant closer to its target of 50 per cent female representation. Pant will succeed Arnoud Balhuizen as chief commercial officer.

CORPORATES
BHP GROUP LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, BANKWEST CURTIN ECONOMICS CENTRE, CREDIT SUISSE (AUSTRALIA) LIMITED

Will Rio take the plunge into M&A?

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto has signalled that it is open to acquisitions, but CEO Jean-Sebastien Jacques stresses that any deals must create value for shareholders. Ben Cleary of Tribeca Investment Partners has identified copper miner SolGold as a prime target for Rio Tinto, and he says other potential targets could include OZ Minerals and Freeport-McMoran. Glyn Lawcock of UBS cautions that the wrong acquisition could undo much of the progress Rio Tinto has made in restoring investors’ confidence in recent years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TRIBECA INVESTMENT PARTNERS PTY LTD, SOLGOLD PLC, OZ MINERALS LIMITED – ASX OZL, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

Jacques to get modest pay rise of 2.5pc

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto’s annual report shows that CEO Jean-Sebastien Jacques received total remuneration of Stg4.29m in 2018, compared with Stg3.82m in 2017. His base salary will increase by 2.5 per cent to Stg1.138m from the start of March. Meanwhile, Rio Tinto’s remuneration committee has advised that the payment of bonuses to former CEO Sam Walsh will again be deferred pending the outcome of an investigation into the Simandau scandal.

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

OZ sets sights on long-term payoff

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 28-Feb-19

OZ Minerals has posted a 2018 net profit of $222.4m, which is 3.8 per cent lower than previously, although revenue was up 9.2 per cent at $1.12bn. Shareholders will receive a final dividend of $0.15 per share, but OZ has opted against paying a special dividend to finance growth projects such as the Carrapateena copper mine in South Australia. CEO Andrew Cole has also indicated that OZ will not proceed with a concentrate treatment plant in SA as it does not "stack up" at present.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, AVANCO RESOURCES LIMITED, JP MORGAN AUSTRALIA LIMITED

Rio splashes cash with $19bn payday

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

Rio Tinto has posted a 2018 underlying net profit of $US8.8bn, which is two per cent higher than previously, while net earnings rose by 56 per cent to $US13.6bn. The full-year result was bolstered by the proceeds of asset sales and an increase in copper production. Rio Tinto shareholders will receive a full-year return of $US13.5bn, which includes share buybacks, a final dividend of $US1.80 per share and a special dividend of $US2.43. Meanwhile, CEO Jean-Sebastien Jacques notes that there are signs of a slowdown in global economic growth.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, BARCLAYS BANK PLC

Yancoal delivers thumping profit

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 27-Feb-19

Yancoal Australia has posted a 2018 net profit of $852m, compared with $229m previously, while factors such as rising coal prices lifted operating EBIT to $2.18bn. CEO Reinhold Schmidt notes that Yancoal has reduced its dependence on exports to China after increasing its export volumes to other countries in Asia. He has also rejected suggestions that China’s recent coal import restriction were prompted by trade tensions with Australia. Yancoal shareholders will receive a final dividend of $0.126 per share, and a full-year payout of $0.2855.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, ADANI MINING PTY LTD

Franking fantastic: Forrest’s $327m payday

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 18 : 21-Feb-19

Fortescue Metals Group has posted a 2018-19 interim net profit of $US644m ($900m), which is five per cent lower than previously. Fortescue has reported revenue of $US3.54bn for the half-year, and the pure-play iron ore miner has maintained its guidance for shipments of 165 tonnes to 173 million tonnes for the full year. Shareholders will receive an interim dividend of $0.19 per share and a special dividend of $0.11. Fortescue’s founder and chairman Andrew Forrest will receive a total of $327m in dividend payouts, from a total payout of $924m.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN LABOR PARTY, SHAW AND PARTNERS LIMITED, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, VALE SA, INTERNATIONAL COUNCIL ON MINING AND METALS

BHP shares rise on dividend optimism

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

Investors have welcomed BHP’s latest interim financial results, with its share price closing at a long-term high of $37.94 on 20 February. The stock has gained 35.5 per cent in the last year and is now trading at or above the share price targets of seven out of the 12 analysts who are tracked by Bloomberg. BHP has flagged a strong rise in full-year profit if commodity prices remain at current levels, while it announced an interim dividend of $US0.55 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BLOOMBERG LP, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Mackenzie defends dual purpose

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

US hedge fund Elliott Management recently argued that there is no reason for BHP to retain its dual-listed structure following a 2018 settlement with the Australian Taxation Office regarding its Singapore marketing hub. However, BHP CEO Andrew Mackenzie says other factors would need to be taken into account when deciding the future of its dual listing. Amongst other things, BHP would be removed from the FTSE Index if it were to have a primary listing in Australia, which may result in many UK investors existing its share register.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIAN TAXATION OFFICE, FTSE 100 INDEX

BHP resists ramp-up as prices surge

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

BHP has posted an underlying profit of $US3.8bn ($5.3bn) for the first half of 2018-19, which is slightly below the consensus forecast of analysts. Underlying EBITDA also fell slightly short of expectations at $US10.5bn. Meanwhile, CEO Andrew Mackenzie says BHP will not increase its iron ore output despite a rally in the price of the steel input in the wake of the tailings dam disaster in Brazil in January. Shareholders will receive a higher-than-expected interim dividend of $US0.55 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, RBC CAPITAL MARKETS