MINING CORPORATIONS – AUSTRALIA

BHP to deliver six-fold jump in earnings

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 21-Aug-17

The general consensus of analysts is for BHP Billiton’s underlying earnings for 2016-17 to be within the range of $US7bn to $US7.3bn, compared with $US1.2bn in 2015-16. Most analysts expect BHP’s final dividend to be around $US0.43 per share, although Credit Suisse expects a payout of $US0.36. BHP’s final dividend in 2015-16 was just $US0.14 per share. Meanwhile, investors will be hoping for some guidance on BHP’s plans for its US shale assets and the Jansen potash project.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, SHAW AND PARTNERS LIMITED, ELLIOTT MANAGEMENT CORPORATION, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, RIO TINTO LIMITED – ASX RIO, TRIBECA GLOBAL NATURAL RESOURCES FUND, FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP commits $3.1bn to Chile copper mine

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Original article by Paul Garvey
The Australian – Page: 21 : 18-Aug-17

BHP Billiton will expand its Spence copper mine in Chile at a cost of $US2.46bn ($A3.1bn). BHP had initially estimated in 2015 that expanding the project would cost around $US2.2bn. Dubbed the Spence Growth Option, the project will increase BHP’s annual copper output by about 185,000 tonnes during the first 10 years of the expansion. BHP anticipates an internal rate of return of about 16 per cent from the Spence Growth Option.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION

Elliott holds fire on BHP amid ‘smarter’ strategy

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Original article by Matt Chambers
The Australian – Page: 20 : 17-Aug-17

Elliott Management has welcomed the business strategy BHP Billiton has adopted since the US hedge fund began lobbying for a restructuring of the resources group. The activist investor has disclosed that it has become a substantial shareholder, with direct ownership of five per cent of BHP’s London-listed shares. It previously had exposure to BHP via derivatives. Elliott also has an 0.5 per cent economic interest in BHP’s Australian-listed shares.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, BLOOMBERG LP, BLACKROCK INCORPORATED, THE VANGUARD GROUP INCORPORATED, ABERDEEN ASSET MANAGEMENT LIMITED

Iluka revealed its own bribery scandal

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Original article by Nick McKenzie, Richard Baker
The Australian Financial Review – Page: 1 & 10 : 16-Aug-17

Mineral sands miner Iluka Resources is the latest Australian company to become caught up in a bribery probe. The allegations centre on Sierra Rutile, which Iluka acquired in 2016, and Iluka informed international authorities as soon as it became aware of the potential scandal. Amongst other things, it has been alleged that former Sierra Rutile CEO John Sisay facilitated the payment of bribes to government officials in Sierra Leone to obtain mining licences that were subsequently transferred to Iluka. Sisay is seeking to become the next president of Sierra Leone.

CORPORATES
ILUKA RESOURCES LIMITED – ASX ILU, SIERRA RUTILE LIMITED, FREEHILLS PTY LTD, GREAT BRITAIN. SERIOUS FRAUD OFFICE, RIO TINTO LIMITED – ASX RIO, CIMIC GROUP LIMITED – ASX CIM, GETAX AUSTRALIA PTY LTD, SUNDANCE RESOURCES LIMITED – ASX SDL, SMEC AUSTRALIA PTY LTD, TENIX PTY LTD, UNIVERSITY OF LONDON, IMATRIX 101 LIMITED

Newcrest’s dividend plan ‘to flex’

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 15-Aug-17

Newcrest Mining has posted a 2016-17 net profit of $US308m, which is seven per cent lower than previously. The result was marred by one-off items totalling $US86m, although its underlying net profit rose 22 per cent to $US394m. Newcrest reduced its net debt to $US1.5bn in 2016-17, while it has announced a new dividend policy which will result in shareholders receiving at least 10-30 per cent of free cash flow in the form of dividends. The minimum annual dividend payout will be $US0.15 per share.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, MORGANS FINANCIAL LIMITED, ALLAN GRAY AUSTRALIA PTY LTD

Sandfire rolls the dice on growth

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 14-Aug-17

The mine life of Sandfire Resources’ DeGrussa copper project in Western Australia will be extended until 2022 when it begins processing ore from the Monty deposit. However, Paul Howard of Hartleys estimates that Sandfire will need to make another significant discovery within 12 months due to the time it takes to begin production. Sandfire CEO Karl Simich has indicated that in addition to further exploration, the miner may be prepared to buy assets that do not usually meet its criteria in order to maintain production.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, HARTLEYS LIMITED, TALISMAN MINING LIMITED – ASX TLM, GLENCORE PLC, TRAFIGURA BEHEER BV, DIGGERS AND DEALERS FORUM

BHP Nickel West charged by battery boom new revolution

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 & 18 : 10-Aug-17

BHP Billiton aims to capitalise on the growing demand for lithium-ore batteries, with plans to build a nickel sulfate plant at Kwinana in Western Australia. The first stage of the project will cost $US43.2m and have annual production capacity of 100,000 tonnes of nickel sulfate hexahydrate. Stage two of the project would increase the plant’s annual capacity to 200,000 tonnes. The nickel sulfate project has secured the near-term future of BHP’s Nickel West business, which was facing the prospect of closure in coming years after efforts to sell it failed.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, NICKEL WEST, DIGGERS AND DEALERS FORUM, TESLA INCORPORATED

FMG in iron price talks amid volatility

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Original article by Paul Garvey
The Australian – Page: 20 : 9-Aug-17

Fortescue Metals Group CEO Nev Power says the pure-play iron ore miner has held talks with steel mills and industry associations about addressing recent volatility in the price of the steel input. However, he says there is unlikely to be any support for a return to the fixed pricing system. Power adds that speculative futures trading has been a major contributor to the iron ore price volatility.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DIGGERS AND DEALERS FORUM, EASTERN GOLDFIELDS LIMITED – ASX EGS, NORTHERN STAR RESOURCES LIMITED – ASX NST, GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED

Gold mining M&A too expensive: CEOs

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 24 : 9-Aug-17

Gold Fields CEO Nick Holland says the South Africa-based company has ramped up spending on exploration to almost $A100m a year, citing factors such as a dearth of acquisition opportunities in the gold sector and the high cost of gold assets. He adds that exploration budgets had been slashed globally in recent years, while a number of gold assets in Australia are likely to reach the end of their mine life in coming years. Evolution Mining and Saracen Mineral Holdings are among the Australian-listed companies that are increasing their exploration programs.

CORPORATES
GOLD FIELDS LIMITED, EVOLUTION MINING LIMITED – ASX EVN, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, ST BARBARA LIMITED – ASX SBM, DIGGERS AND DEALERS FORUM, GOLD ROAD RESOURCES LIMITED – ASX GOR, RIVERSGOLD LIMITED

Anglo American vows to halve costs using technology

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Original article by Paul Garvey
The Australian – Page: 20 : 8-Aug-17

Tony O’Neill of Anglo American says the company will seek further productivity gains via technological innovation, after lifting productivity by 70 per cent over the last 4-5 years. O’Neill has outlined some of these technologies at the annual Diggers & Dealers forum, but he noted that securing regulatory permits is the main hindrance to adopting some of the innovations. Meanwhile, Roy Hill Holdings has advised that iron ore shipments from its namesake mine totalled 4.45 million tonnes in June 2017, and shipments had averaged 2.8 million tonnes during the first half of the calendar year.

CORPORATES
ANGLO AMERICAN PLC, ROY HILL HOLDINGS PTY LTD, DIGGERS AND DEALERS FORUM, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO