Fri, Jan. 15, 10:34 AM
- Shares in global mining companies face their biggest back-to-back weekly losses in four years after signs of slowing growth in China, plunging oil prices and asset writedowns at BHP Billiton spark a selloff.
- Copper prices hit a six-year low for the fifth time in a week in London, -1.9%, amid worries about China’s economy, and are now down nearly 9% YTD; aluminum, lead, nickel and zinc all fell more than 1%.
- Long-dated “copper prices adjusted for producer country FX are mostly unchanged, which underscores the macro nature of the recent declines,” according to Goldman Sachs.
- "No lasting price recovery appears possible at present, neither on the metal markets nor on the commodities markets in general," Commerzbank says.
- BHP -7.7%, RIO -6.4%, OTCPK:AAUKF -5.7%, VALE -5.5%, FCX -5.4%, OTCPK:GLCNF -4.4%, TCK -4.3%, SCCO -1.1%.
- ETFs: JJC, DBB, JJN, JJU, CPER, JJT, BOM, RJZ, BOS, FOIL, JJM, LD, BDD, NINI, CUPM, LEDD
Tue, Jan. 12, 12:46 PM
- BHP Billiton (BHP -4.3%) could cut is payout in half when it releases results, and Rio Tinto (RIO -4.5%) also could cut its dividend later this year, HSBC analysts say, citing the need for the miners to cut expenses to help indebted balance sheets and offset weak commodities prices.
- HSBC also says Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and First Quantum Minerals (OTCPK:FQVLF) are most at risk if commodities remain weak, although continued South African rand weakness would help Anglo, while strength in copper and other stock-specific reasons could favor returns for Freeport McMoRan (FCX -13.4%) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY).
- The firm downgrades BHP and First Quantum to Reduce, maintains a Reduce rating on Anglo, and has a Buy rating on FCX and Glencore.
Dec. 23, 2015, 9:19 AM
- Mining stocks look to be headed for a strong day, following a rebound in metal prices after China earlier this week raised hopes that demand may strengthen next year when it unveiled plans for more flexible fiscal and monetary policies.
- Prices for industrial commodities including copper, zinc, lead and aluminum are up at least 1%.
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) +8.1%, Glencore (OTCPK:GLCNF, OTCPK:GLNCY) +6.7% in London.
- MT +10.2%, RIO +5.4%, VALE +4.8%, BHP +4.5% in U.S. premarket.
Dec. 7, 2015, 9:58 AM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) sinks to new all-time lows, falling to as low as £3.70 ($5.59) in London trading, the lowest since the company went public in 1999.
- Anglo is among the most diversified miners, with EBIT spread among iron ore and manganese (27%), coal (14%), copper (9%), diamonds (31%) and platinum (14%) in H1 2015, but the miner is being penalized for its diversity, as nearly all commodities have amid softening demand by China.
- "What you tend to find in most crises is that correlations [between commodities] move one way and everything craps out together," says Bernstein analyst Paul Gait, a former Anglo executive who still advises buying the company’s stock because of its large reserves of commodities such as copper.
- Mining giants BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) are far more exposed to a single commodity - iron ore - and have performed far better than their more diversified competitors; the companies have been able to weather the sharp drop in iron ore prices because their mines run at far lower costs than competitors, including Anglo.
- Earlier: Dow Jones: Anglo American to slash dividend, timing uncertain (Dec. 3)
Nov. 12, 2015, 8:59 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) tumbles below £1 for the first time in a month as a renewed selloff in the stock accelerates and copper prices trade near six-year lows.
- Glencore is "very geared into the copper price,” says an analyst at Liberum Capital. “Prices are obviously taking a hit on the back of U.S. dollar strength and the Fed’s clear intention to raise rates before the end of the year."
- Rival mining company Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) is 9% lower in London trading to its lowest level since 1999.
Oct. 7, 2015, 7:58 AM
- Rio Tinto (NYSE:RIO), BHP Billiton (NYSE:BHP) and Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) soar near the top of U.K.'s FTSE 100 after Morgan Stanley upgraded the metal and mining sector to Attractive, saying valuations are at historically attractive levels.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) also is higher after saying it closed its Eland platinum mine in South Africa, resulting in 970 job losses.
- Stanley sees commodity prices rising 19% by 2017, which would be "a sharp reversal from the experience in the last 18 months," and believes the recent acceleration of financial and administrative stimulus policies in China "will start to feed through in both actual activity levels and equity market expectations."
- The firm raises its recommendation for Rio and to Overweight from Equal Weight and for Anglo to Equal Weight from Underweight.
- In the U.S. premarket, RIO +8.7%, BHP +4.1%.
Sep. 22, 2015, 9:07 AM
- Mining shares are leading a big slide in European equities as metals prices tumble on fears that an economic slowdown in China, the world’s biggest consumer of raw materials, is deepening.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) fell to a new intraday low of 107 pence/share, down more than 9% for the worst performance on the U.K.’s FTSE 100 index; Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), ArcelorMittal (NYSE:MT) and Antofagasta (OTC:ANFGF) each fall more than 6%, while BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) rank among the 10 biggest decliners, down ~4.3% each.
- Credit Suisse cuts its earnings estimates across the mining sector, saying “Until China demand and emerging market currencies find a floor, it will remain challenging to put an absolute floor on commodity prices."
- The firm cuts its stock price targets for diversified miners including BHP, which also says it is planning to sell hybrid securities to help refinance near-term liabilities.
- Moody's says miners likely will be the hardest hit of any sector in Europe, the Middle East and Africa as a result of China’s economic slowdown.
- Also: FCX -4.5%, VALE -4.1%, X -2.8%, AA -1.7% premarket.
Jul. 22, 2015, 10:22 AM
- Citigroup analysts say BHP Billiton's (BHP -3.4%) FY 2016 guidance for declines in production of oil, coking coal and copper were larger than expected, and the guidance for increased iron ore production was also below expectations.
- While declines were expected due to field decline in oil and lower grades in copper, "it highlights the capital intensive nature of mining and that even $9B of capex does not drive production growth every year," CIti says, as it forecasts copper equivalent production growth of 2% in FY 2017.
- "The beauty of diversification is that when one commodity is down, one of the others picks up the slack. That's not happening right now for BHP," says a mining analyst for Morgans Financial.
- Miners and related companies are hammered in early trading: CLF -13%, RIO -1.9%, VALE -2.5%, FCX -3.1%, OTCPK:AAUKY -3.9%, CAT -2.7%, JOY -1.2%.
Feb. 12, 2015, 11:59 AM
- Rio Tinto (RIO +2.3%) has no major M&A plans in the works, preferring to focus on building new mines rather than buying low-quality assets in the current market environment, CEO Sam Walsh says.
- The CEO says shareholders have asked whether Rio had any interest in deals, with some wondering whether the company might consider approaching Freeport McMoRan (NYSE:FCX) or Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), but "we are not doing that," adding that shareholders had dismissed the idea that Rio would give Glencore (OTCPK:GLCNF, OTCPK:GLNCY) "any air at all" to consider a tie-up.
- Talks are still ongoing with the Mongolian government to settle all outstanding concerns about the development of the underground Oyu Tolgoi mine, Walsh says while indicating that Rio has not offered to increase its stake in the mine.
- Walsh also says Rio will not take part in any upcoming tender process for two blocks of the massive Simandou iron ore deposit in Guinea.
- Earlier: Rio Tinto's $2B buyback signals shift in strategy
Jan. 14, 2015, 7:57 AM
- Mining stocks look headed for sizable losses, as copper prices sink to five-and-a-half year lows and the World Bank lowers its forecast for global economic growth.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) -11.5% in London trading, Antofagasta (OTC:ANFGF) -7% in London, Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) -9.5% in London, Vedanta (OTCPK:VDNRF) -18% in London, Rio Tinto (NYSE:RIO) -4.3% premarket in the U.S., VALE -2.9%, FCX -5.1%, CLF -2.6%.
- BHP Billiton (NYSE:BHP) -7.5% in London and -5.5% U.S. premarket after S&P Capital IQ downgraded shares to Hold from Buy, expecting "weaker commodity prices to increasingly impact on group profits as hedges expire and see currency headwinds from a stronger [U.S. dollar]."
- ETFs: XLB, XME, SLX, COPX, VAW, UYM, CU, IYM, HAP, IRV, MXI, SMN, GNR, GUNR, PICK, MATL, FXZ, PYZ, CRBQ, RTM, CCXE, FMAT, GRES, SBM
Jan. 16, 2014, 2:08 PM
- “We would rather be too early than too late," Citi analysts say on going bullish on the global mining sector for the first time in three years.
- Yes, Citi is concerned about the potential for long-term structural demand for commodities in China and the potential of a seasonal slowdown in Q1, but the firm foresees better bottom-up fundamentals, notably from big diversified miners such as top picks are BHP Billiton (BHP +2.6%), Rio Tinto (RIO +3.6%) and Glencore (GLCNF, GLNCY).
- The firm expects a flat commodity-price environment ahead and a reduction in volatility, improving U.S. and European growth that will help boost commodities, and weakening commodity currencies from major exporters such Australia, New Zealand and South Africa that will boost miners.
- Earnings momentum has become positive too, as miners are cutting costs, improving balance sheets and aligning with shareholders’ interests.
- Citi still doesn't like gold and base-metal stocks; its least favorite big-cap miner is Anglo American (AAUKF, AAUKY).
Dec. 13, 2013, 2:52 PM
- Northern Dynasty Minerals (NAK +11.6%) exercises its right to acquire 100% of Anglo American's (AAUKF, AAUKY) interest in the Pebble copper/gold/molybdenum project in Alaska.
- NAK, which has partnered with Anglo for six years, will now go it alone and have the full benefit of the cash spent on the project - $556M so far, NAK says.
- NAK says a final decision on permit filing for the controversial project would be made in 2014.
Sep. 27, 2013, 9:08 AM
- ArcelorMittal (MT) and Kumba Iron Ore (KIROY.PK) say they are in talks over a potential new ore supply agreement, as the companies try to resolve a rights and pricing dispute spanning more than three years.
- Kumba, a unit of Anglo American (AAUKF.PK, AAUKY.PK), had suspended an agreement with MT in 2010 under which it sold South African iron ore at a discounted price of production costs; the deal was in place because MT had a mining right in Kumba's Sishen mine that lapsed.
- MT -1.7% premarket.
Sep. 16, 2013, 11:21 AM
- Shares of Northern Dynasty Minerals (NAK -37.8%) are crushed after Anglo American (AAUKF.PK, AAUKY.PK) withdrew from a partnership to develop the Pebble copper project in Alaska.
- CEO Ron Thiessen says NAK plans to begin the permitting application process for the project by the end of this year, despite the pullout; he says Anglo's decision was due to its desire to re-prioritize its project pipeline rather than any concern about the project.
- The Pebble deposit is estimated to hold 81B lbs. (37M metric tons) of copper, 5.6B lbs. of molybdenum and 107M oz. of gold.
Apr. 15, 2013, 5:03 AM
Mining stocks are taking a bit of a hiding following China's slowing GDP growth and the sell-off in precious metals. Rio Tinto (RIO) -4.5% premarket, BHP Billiton (BHP) -3.6%, Barrick Gold (ABX) -3.6%, AngloGold (AU) -5.2%, IAMGold (IAG) -1.2%, Gold Fields (GFI) -5%, Goldcorp (GG) -3.9%, Kinross (KGC) -5.1%, Seabridge Gold (SA) -2.8%, Newmont Mining (NEM) -3.4%, Freeport-McMoRan Copper & Gold (FCX) -2.85% and Anglo American (AAUKF.PK) -3.9% in London. NovaGold (NG) fell 13% on Friday.| Apr. 15, 2013, 5:03 AM | 3 Comments
Dec. 6, 2012, 9:18 AM
Investors seem to take seriously the latest takeover chatter surrounding Walter Energy (WLT), sending shares +7.5% premarket as vague rumors circulate that bidders could emerge. BHP Billiton (BHP) is said to be interested again; Glencore (GLCNF.PK) could be another candidate; Anglo American has been mentioned in the past. Other coal names are up: ANR +1.9%, CNX +1.6%, ACI +1.3%, BTU +0.8%.| Dec. 6, 2012, 9:18 AM | 5 Comments