MINING CORPORATIONS – GREAT BRITAIN

Rio dividend warning ahead of vote

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Original article by Brad Thompson
The Australian – Page: 15 : 2-Apr-25

A motion for Rio Tinto to undertake a review of its dual-listed structure will be presented to shareholders of its UK stock on Thursday, followed by a vote by investors in its Australian-listed shares on 1 May. The motion has been put forward by hedge fund Palliser Capital, and will require the support of at least 75 per cent of all shareholders. Goldman Sachs has estimated that the total cost to Rio Tinto of shifting to a primary listing in Australia could be within a range of $US7bn to $US15bn ($11bn to $24bn). The investment bank also warns that any such move would affect Rio Tinto’s ability to pay fully franked dividends to its Australian shareholders.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PALLISER CAPITAL UK LIMITED, THE GOLDMAN SACHS GROUP INCORPORATED

No compelling reason for Rio unification

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Original article by Peter Ker
The Australian Financial Review – Page: 12 : 26-Mar-25

Rio Tinto shareholders will shortly vote on a resolution to scrap its dual-listed structure in favour of a primary listing on the Australian sharemarket. UK-based hedge fund Palliser Capital has been advocating the move for some time, but the Australian Council of Superannuation Investors has told its members that there is no compelling reason to support the proposal at present. ACSI represents the nation’s major industry super funds. Rio Tinto’s British shareholders will vote on the resolution on 4 April, followed by Australian shareholders on 1 May.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PALLISER CAPITAL UK LIMITED, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Investors tell Rio to ditch issuance

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 5-Mar-25

Rio Tinto CEO Jakob Stausholm recently indicated that the resources group is seriously considering a share placement in Australia. This would boost liquidity and help to reduce an imbalance whereby the London Stock Exchange accounts for about 77 per cent of the dual-listed company’ shares. However, Rio Tinto executives who met with Australian investors last week encountered strong resistance to any share issue. Wilson Asset Management portfolio manager Matt Haupt contended that Rio Tinto should instead opt for a bond issuance if it needs more cash.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WILSON ASSET MANAGEMENT

Anglo deal shores up its BHP defences

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Original article by Brad Thompson
The Australian – Page: 13 & 16 : 27-Nov-24

Anglo American’s deal to sell its coking coal mines in Queensland will boost its balance sheet ahead of the looming expiry of the embargo on a new takeover bid from BHP. Peabody Energy will pay $US3.8bn ($5.8bn) for the coal assets, well above market expectations that the mines would fetch around $US2.8bn. RBC Capital analyst Marina Calero says the deal will also increase shareholders’ confidence that Anglo American will be able to carry out its restructuring plan. BHP will be free to make a fresh bid for Anglo American from late November, under the UK’s takeover laws.

CORPORATES
ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, BHP GROUP LIMITED – ASX BHP

Peabody picks up Anglo coal assets for $5.8bn as BHP circles

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Original article by Bridget Carter
The Australian – Page: 13 & 16 : 26-Nov-24

Anglo American has agreed to sell its five metallurgical coal mines in Queensland to US-based Peabody Energy for up to $US3.8bn ($5.8bn). The deal includes a contingent cash consideration of $US450m that is linked to the reopening of the Grosvenor mine, where production was halted by an underground fire in June. Stanmore Resources and Yancoal Australia also submitted bids for Anglo’s coal assets. The sale of the Queensland mines is part of Anglo’s strategy to focus on its copper, iron ore and crop nutrient operations. Meanwhile, BHP will be free to make a new bid for Anglo later this week, when a six-month embargo under the UK’s takeover laws expires.

CORPORATES
ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, STANMORE RESOURCES LIMITED – ASX SMR, YANCOAL AUSTRALIA LIMITED – ASX YAL, BHP GROUP LIMITED – ASX BHP

Greatland Gold wants Telfer, but there may be a sting in the tailings

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 11-Sep-24

Greatland Gold has advised the London Stock Exchange that it is in exclusive talks to buy the Telfer gold mine in Western Australia. Greatland added that negotiations are advanced and a deal may be close. Newmont Corporation announced plans to divest Telfer in February. However, Greatland has indicated that any deal to acquire Telfer will be conditional on Newmont repairing leaks in two tailings dams at the mine. Production at Telfer was disrupted by remediation work at the dams earlier in 2024.

CORPORATES
GREATLAND GOLD PLC, NEWMONT CORPORATION – ASX NEM

BHP runs down clock on $64b Anglo deadline

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 21-May-24

The UK’s Takeovers Code requires BHP to make a formal and binding takeover offer for Anglo American by 22 May. However, there is now a high probability that BHP will abandon its proposed bid, given that the target has rejected BHP’s improved offer of 0.8132 of its share for every Anglo American share. Meanwhile, media reports in the UK have indicated that two major Anglo American shareholders are willing to accept a simpler offer from BHP that does not involve breaking up the company.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC

Inside Anglo chief’s rush to split company

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Original article by Peter Ker
The Australian Financial Review – Page: 36 & 37 : 20-May-24

Anglo American’s CEO Duncan Wanblad has downplayed suggestions that the restructuring proposal that he announced last week was in direct response to BHP’s takeover approach. He contends that Anglo American has merely brought forward a strategic plan that was already being prepared. However, some senior executives at Anglo American were surprised by Wanblad’s announcement of the restructuring. They include Daniel van der Westhuizen, who heads the group’s Australian arm; five coking coal mines in Queensland are among the assets that Anglo American had earmarked for sale, and Wanblad indicated that the company had already received bids for these mines.

CORPORATES
ANGLO AMERICAN PLC, ANGLO AMERICAN AUSTRALIA LIMITED

Inside Anglo chief’s rush to split company

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Original article by Peter Ker
The Australian Financial Review – Page: 36 & 37 : 20-May-24

Anglo American’s CEO Duncan Wanblad has downplayed suggestions that the restructuring proposal that he announced last week was in direct response to BHP’s takeover approach. He contends that Anglo American has merely brought forward a strategic plan that was already being prepared. However, some senior executives at Anglo American were surprised by Wanblad’s announcement of the restructuring. They include Daniel van der Westhuizen, who heads the group’s Australian arm; five coking coal mines in Queensland are among the assets that Anglo American had earmarked for sale, and Wanblad indicated that the company had already received bids for these mines.

CORPORATES
ANGLO AMERICAN PLC, ANGLO AMERICAN AUSTRALIA LIMITED

Anglo unveils radical restructuring plan

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Original article by Paul Garvey
The Australian – Page: 25 & 26 : 15-May-24

Anglo American has announced a major restructuring of its global operations in the wake of a spurned takeover approach from BHP. Anglo American intends to focus primarily on its copper and iron ore assets, and CEO Duncan Wanblad says any potential suitors will have to pay an "enormous amount of money" to acquire the company after the two-year overhaul is completed. Amongst other things, Anglo American will sell its coking coal mines in Queensland, demerge its platinum assets and put the Woodsmith potash project in the UK on hold indefinitely.

CORPORATES
ANGLO AMERICAN PLC, BHP GROUP LIMITED – ASX BHP