MINING CORPORATIONS

Continued iron ore rally faces threat as supply worry returns

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Original article by Ranjeetha Pakiam
The Australian Financial Review – Page: 16 : 5-Jan-17

The price of iron ore may be negatively affected by oversupply and lower demand. Having risen 81 per cent to around $US80 a tonne in 2016, it is unlikely to continue to climb in 2017. Rising iron ore prices have had a positive impact on share prices of Australian-listed mining companies, with Rio Tinto’s shares gaining 34 per cent in value in 2016.

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

Savvy mine buyers benefit from coal price lift

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Original article by Peter Ker
The Australian Financial Review – Page: 27 : 9-Sep-16

The price of coking coal has risen 47 per cent in the last month, and 105 per cent so far in 2016. Macquarie Group notes that only 510,000 tonnes of coking coal has been traded via the globalCOAL platform in the last month, and it says the low volumes have been a major driver of the spot price in recent weeks. The spot price is currently significantly higher than the contract price, which has benefited major spot price traders such as BHP Billiton.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, BHP BILLITON LIMITED – ASX BHP, GLOBAL COAL LIMITED, STANMORE COAL LIMITED – ASX SMR, VALE SA, TAURUS FUNDS MANAGEMENT PTY LTD, ANGLO AMERICAN PLC, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

BlackRock’s Evy Hambro predicts more mines to close

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 2-Mar-16

BlackRock’s Evy Hambro expects bulk commodities to remain oversupplied, although he forecasts an improvement in the supply-demand balance for some base metals. Hambro also forecasts that more mining companies will discontinue production at some mines during 2016, and he says the downturn in the crude oil price is unsustainable and it will begin to rebound. BlackRock is a major shareholder of leading mining groups such as BHP Billiton, Rio Tinto and Glencore.

CORPORATES
BLACKROCK INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, ANGLO AMERICAN PLC, HALLIBURTON INCORPORATED, SCHLUMBERGER LIMITED, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, UNITED STATES. FEDERAL RESERVE BOARD

Iron ore to fall further, says Albanese

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 30-Oct-15

The iron ore price fell to $US49.95 per tonne on 28 October 2015, and Vedanta Resources CEO Tom Albanese expects it to come under more downward pressure. He cites factors such as China’s slowing economy and the nation’s falling steel production, which has coincided with increased iron ore output in Australia and Brazil. BC Iron and Grange Resources are particularly vulnerable to a lower iron ore price, as their break-even prices are above $US50/tonne.

CORPORATES
VEDANTA RESOURCES PLC, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ANGLO AMERICAN PLC, VALE SA, UBS HOLDINGS PTY LTD, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, SUPREME COURT OF INDIA

Commodity rout to dog miners

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 22-Jul-15

BHP Billiton recently wrote down the value of its US shale assets by $US2.8bn. Analysts expect many resources groups to announce write-downs of key commodities during the next year, due to the sharp downturn in the prices of commodities such as iron ore, crude oil and coal. BHP, Rio Tinto, Glencore and Anglo American are tipped to report large declines in their underlying earnings as a result of bearish commodity markets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, ANGLO AMERICAN PLATINUM CORPORATION, UBS HOLDINGS PTY LTD, LIBERUM CAPITAL LIMITED

Write-downs in mining nearly erase deal value

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Citigroup has warned that there may be further asset impairment charges in the global mining industry, particularly in the metallurgical and coking coal sector. The firm estimates that around 90 per cent of the value of mergers and acquisitions transacted by large mining groups since 2007 has been written off. Aluminium, iron ore and nickel assets have generated the most impairment charges over the last eight years, while Rio Tinto has the highest level of impaired assets.

CORPORATES
CITIGROUP INCORPORATED, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, VALE SA, ALCAN INCORPORATED