MINING CORPORATIONS – AUSTRALIA

Fortescue Metals Group hits export goal amid 36pc discount

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Original article by Peter Ker
The Australian Financial Review – Page: Online : 27-Jul-18

Pure-play iron ore miner Fortescue Metals Group has advised that its shipments reached a record 46.5 million tonnes in the final quarter of 2017-18, and it shipped 169.7 million tonnes in the full year. Fortescue had flagged total shipments of 170 million tonnes for the financial year. Fortescue’s unit costs averaged $US12.36 per tonne in 2017-18, and it received an average of 64 per cent of the benchmark price of iron ore. Rising demand for higher-grade iron ore in China prompted Fortescue to downgrade its price realisation forecast several times during 2017-18.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

‘I’ve proved the doubters wrong’: Rinehart on her success

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 2 : 26-Jul-18

Mining magnate Gina Rinehart concedes that her Roy Hill iron ore mine almost did not proceed due to problems with securing financing for the project. Roy Hill now boasts annual production of 55 million tonnes, while Rinehart will shortly know if Hancock Prospecting’s $390m takeover bid for Atlas Iron has been successful. Meanwhile, Rinehart says Australia should do more to encourage investment, while she has flagged plans to ramp up the cattle side of her business empire.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED – ASX AGO, S KIDMAN AND COMPANY PTY LTD

Iron ore heads for price crash: RBC

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Original article by Matt Chambers
The Australian – Page: 20 : 26-Jul-18

RBC Capital Markets has downgraded its average price forecast for iron ore in the September quarter from $US60 per tonne to $US50. The firm also expects the price of the steel input to average $US47.50 in the December quarter, compared with previous expectations of $US70. However, RBC expects the iron ore price to rebound to $US63/tonne in 2019. RBC has also downgraded its earnings forecasts and share price targets for BHP Billiton, Rio Tinto and Fortescue Metals Group.

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

More join BHP Samarco class action

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

More than 3,000 investors have agreed to participate in Phi Finney McDonald’s class action against BHP Billiton. They will seek damages for losses they incurred as a result of the Samarco iron ore tailings dam disaster in Brazil. The class action includes investors in BHP’s shares listed in Australia, the UK and South Africa. The class action will contend that BHP was aware of technical problems at Samarco and knew that there was a risk that the dam would collapse.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PHI FINNEY McDONALD PTY LTD, VALE SA, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, BOART LONGYEAR LIMITED – ASX BLY, TIMBERWEST FOREST LIMITED

OZ commits to ongoing dividend payout

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 20-Jul-18

OZ Minerals produced 54,597 tonnes of copper in the first half of 2018, putting it on track to achieve its full-year target of 100,000 to 110,000 tonnes. Gold output totalled 58,994 ounces, and OZ Minerals expects full-year output of 120,000 to 130,000 ounces. A review of OZ’s capital management strategy is nearly complete, and CEO Andrew Cole has stressed that shareholders will continue to receive regular dividend payments despite a big increase in expenditure on exploration and development.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, AVANCO RESOURCES LIMITED, BHP BILLITON LIMITED – ASX BHP, S2 RESOURCES LIMITED – ASX S2R

Evolution forecasts output reduction

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Original article by Paul Garvey
The Australian – Page: 27 : 20-Jul-18

Listed gold producer Evolution Mining has advised that its output for 2017-18 totalled 801,187 ounces, at an all-in sustaining cost of $797 per ounce. It has forecast that gold production in 2018-19 will be within the range of 720,000 to 770,000 ounces, at an all-in sustaining cost of $850 to $900 per ounce. Evolution’s operating mine cash flow reached a record $221.9m in the fourth quarter of 2017-18, and its net debt has fallen to $72m.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN

BHP rides record iron ore wave

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Original article by Paul Garvey
The Australian – Page: 19 : 19-Jul-18

BHP Billiton will aim to produce between 241 million and 250 million tonnes of iron ore in 2018-19, after output in 2017-18 rose by three per cent to a record 238 million tonnes. BHP has attributed the 2017-18 result to factors such as record production at its Jimblebar and Mining Area C mines in the Pilbara and its rail and port operations’ productivity gains. Meanwhile, BHP has advised that its costs associated with the Samarco tailings dam disaster in Brazil are likely to rise by $US440m ($600m).

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO, JEFFERIES AND COMPANY, MACQUARIE GROUP LIMITED – ASX MQG

Lithium past its peak as price slides

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 18-Jul-18

Galaxy Resources has advised that the price of lithium carbonate exported to China fell by 18 per cent in the June quarter, while the price of lithium hydroxide was down four per cent. The price of lithium carbonate sold into China had fallen by 10 per cent in the March quarter, and lithium hydroxide fell by three per cent. Galaxy Resources had attributed that decline to seasonal factors. Galaxy has now suggested that the Chinese price for lithium is converging with global prices.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXY, OROCOBRE LIMITED – ASX ORE, CANACCORD GENUITY (AUSTRALIA) LIMITED, TIANQI LITHIUM CORPORATION, PILBARA MINERALS LIMITED – ASX PLS

Rio, Vale boost output and market share

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 16 : 18-Jul-18

Rio Tinto’s iron ore shipments from the Pilbara totalled 168.8 million tonnes in the first half of 2018, which is 9.4 per cent higher than previously. Rio Tinto has advised that its export volumes will be similar in the second half, and shipments for the calendar year are expected to be at the higher end of its guidance of between 330 million and 340 million tonnes. Brazilian rival Vale has reported production of 96.8 million tonnes and sales of 86.5 million tonnes of iron ore for the June quarter. It will increase production by 18 per cent in the second half, and it will target full-year output of around 390 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, CLEVELAND-CLIFFS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Atlas facing possible distress

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Original article by Paul Garvey
The Australian – Page: 19 : 17-Jul-18

An independent expert’s report from BDO has valued Atlas Iron at between $0.015 and $A0.03 per share, compared with Hancock Prospecting’s offer of $0.042 per share. BDO has recommended that shareholders accept the offer in the absence of a higher bid. BDO warned that Atlas will be financially vulnerable if the price discount for its low-grade iron ore is sustained, while its Mt Webber mine would have to close. Atlas directors have also used its target statement to recommend that shareholders accept the offer.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, HANCOCK PROSPECTING PTY LTD, BDO AUSTRALIA LIMITED, ALTURA MINING LIMITED – ASX AJM, MINERAL RESOURCES LIMITED – ASX MIN, FORTESCUE METALS GROUP LIMITED – ASX FMG