MINING CORPORATIONS – AUSTRALIA

BHP upbeat on ore, coal price outlook

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 18 : 4-Sep-17

The latest financial results of BHP Billiton and Rio Tinto were boosted by the rise in iron ore and coal prices. BHP’s chief commercial officer Arnoud Balhuizen says the resources giant expects the price of iron ore to remain strong until at least the end of 2017, while the price of coking coal could potentially be sustained beyond 2017. Meanwhile, the outlook for Fortescue Metals Group will be heavily influenced by Chinese steel mills’ demand for higher-grade iron ore. The price gap between benchmark iron ore and the 58 per cent iron ore produced by Fortescue has widened to more than $US20 per tonne.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

BHP scraps grid-power deal with OZ Minerals

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 22 : 1-Sep-17

OZ Minerals has warned that power costs at its Prominent Hill gold and copper mine could rise by 2-5 per cent from mid-2020. BHP Billiton has advised that it will end an agreement for OZ to access the Olympic Dam mine’s power transmission infrastructure from August 2020. BHP has indicated that the proposed expansion of Olympic Dam will significantly increase the copper and uranium mine’s electricity requirements, forcing OZ Minerals to seek an alternative source of electricity.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL, SANDFIRE RESOURCES NL – ASX SFR

Silvergrass mine will buff up Rio’s iron ore credentials, Jacques says

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 31-Aug-17

Rio Tinto’s Silvergrass iron ore mine will eventually boast annual production of 20 million tonnes. The mine was officially opened on 30 August, and Rio Tinto CEO Jean-Sebastien Jacques stressed the importance of Silvergrass in maintaining the quality of the company’s "Pilbara Blend" as Chinese steel mills’ demand for higher-quality iron ore increases. Jacques has also indicated that Rio Tinto will consider the future of its stake in the Grasberg copper and gold mine when Freeport-McMoRan concludes negotiations with the Indonesian Government over the mine’s ownership structure.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Atlas maps out port route to beef up exports

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 26 : 30-Aug-17

Atlas Iron has posted a 2016-17 net profit of $A48m, and its iron ore shipments totalled 14.4 million tonnes. Atlas forecasts that its shipments for 2017-18 will be within the range of nine to 10 million tonnes, and MD Cliff Lawrenson says the company will seek to utilise more of its capacity at the Utah Point bulk handling facility. This would allow Atlas to reduce its production costs, which averaged $A53 per tonne in 2016-17 and are forecast to be between $A54 and $A58 in 2017-18.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, PILBARA MINERALS LIMITED – ASX PLS

Rio hunts for new diamond mine as clock ticks for Argyle operation

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 30-Aug-17

Rio Tinto’s diamonds division will ramp up exploration as it seeks to replace the ageing Argyle and Diavik mines. Rio CEO Jean-Sebastien Jacques says the company will consider acquisitions in the sector, but its preferred option is to discover a new diamond deposit. He is optimistic that Rio can establish another diamond mine in Australia, and he would particularly like to find a new pink diamond mine, given the rarity of these diamonds and the premium prices they fetch.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DE BEERS SA

Yancoal’s $3 billion raising shunned

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 21 : 29-Aug-17

Institutional investors subscribed for only $US59m worth of shares in Yancoal Australia’s $US1.3bn entitlement offer, which is part of its $US2.35bn ($A3bn) capital raising to finance the acquisition of Rio Tinto’s New South Wales assets. The response to the retail component of the share offer was also subdued, with existing shareholders applying to buy just $US4m worth of shares. As a result, parent company Yanzhou Coal and the bookbuild’s underwriters will be required to meet the significant shortfall.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, RIO TINTO LIMITED – ASX RIO, YANZHOU COAL MINING COMPANY LIMITED, CHINA SHANGDONG INVESTMENT COMPANY LIMITED, CINDA ASSET MANAGEMENT CORPORATION, GLENCORE PLC, WHITEHAVEN COAL LIMITED – ASX WHC, NOBLE GROUP LIMITED, CONTANGO ASSET MANAGEMENT LIMITED – ASX CGA, MERRILL LYNCH (AUSTRALIA) PTY LTD

Elliott holds fire on BHP board

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 18 : 25-Aug-17

Elliott Management holds five per cent of BHP Billiton’s London-listed shares, but the activist hedge fund has chosen not to seek representation on the board at the 2017 AGM. Nominations closed in late August, and Elliott has declined to comment on speculation that its decision was linked to Grant King’s recent resignation from BHP’s board. Incoming chairman Ken MacKenzie has met extensively with shareholders, who expressed their dissatisfaction with King’s appointment to the board in early 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, ORIGIN ENERGY LIMITED – ASX ORG, WESFARMERS LIMITED – ASX WES, BP AUSTRALIA LIMITED, BUSINESS COUNCIL OF AUSTRALIA

Shareholders to get shale sale cash within two years, says BHP

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 27 : 24-Aug-17

BHP Billiton will aim to divest its US shale assets within two years, according to CFO Peter Beaven. CEO Andrew Mackenzie had previously indicated that the assets would be sold "relatively quickly". Beaven also said the proceeds of the sale are likely to be distributed to shareholders. Analysts differ regarding the valuation of the shale assets, with sale price forecasts generally ranging from $US7bn to $US10bn. The shale assets currently have a book value of $US14bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MORGANS FINANCIAL LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, TUDOR PICKERING HOLT AND COMPANY LLC, ANADARKO PETROLEUM CORPORATION

BHP pledges dividend windfall

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 19 & 22 : 23-Aug-17

BHP Billiton has posted a 2016-17 net profit of $US5.89bn, compared with a loss of $US6.34bn previously, while its underlying profit rose from $US1.215bn to $US6.732bn. The resources group reduced its net debt by $US9.8bn during the financial year, to $US16bn. BHP has flagged plans to divest its US shale assets, with CEO Andrew Mackenzie indicating that the sale of individual assets is preferable to an IPO of the entire business. BHP has also ruled out further investment in the Jansen potash project in the near-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ELLIOTT MANAGEMENT CORPORATION

FMG powers up with plan to grow, cut debt

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 11 & 16 : 22-Aug-17

Fortescue Metals Group shareholders will receive a 2016-17 full-year dividend of $A0.45 per share, compared with $A0.15 for the previous financial year. The pure-play iron ore miner has increased its net profit from $US985m in 2015-16 to $US2.1bn for 2016-17, while revenue was 19 per cent higher at $US8.4bn and underlying earnings rose 48 per cent to $US4.7bn. Meanwhile, Fortescue reduced its net debt from $US5.2bn to just $US2.6bn in 2016-17. Fortescue intends to increase its iron ore capital expenditure in 2017-18, while it looking to expand into commodities such as gold and copper.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, ALLERON INVESTMENT MANAGEMENT LIMITED