Antofagasta plcGrey Market
Wed, Nov. 16, 10:56 AM
- Global copper markets will be oversupplied for at least two years, according to executives at some of the world's top copper producers, casting doubt on the chances of a prolonged rally in prices.
- The cautious outlook comes after benchmark copper prices last week recorded their biggest weekly gain since 2011, largely fueled by Pres.-elect Trump's promises of infrastructure spending.
- "In 2017, it will still be a relatively oversupplied market. In 2018 it will not be better than 2017," says a VP at Jiangxi Copper, China's largest copper producer; he also describes the market's recent moves as "irrational."
- The founder and president of Maike Metals Group, one of China's top metals traders, says China's government needs to control "overspeculation" in the local futures market, hit by volatile trading over the last week as it was whipsawed by speculative cash.
- Relevant tickers include FCX, BHP, RIO, VALE, OTCPK:GLCNF, OTCPK:GLNCY, OTC:ANFGF, OTCPK:AAUKF, OTCPK:AAUKY, JJC, CPER, CUPM.
Fri, Nov. 11, 8:58 AM
- Copper was trading up 3% in late Asian trade, rising for a seventh straight session and up more than 15% for the week in what would be its biggest weekly gain since 1980, according to Reuters.
- Copper already had been moving higher by a surge in China steel and coal prices, but Trump's surprise election victory and comments in his acceptance speech on increased infrastructure spending fueled further buying.
- Traders say the pace of gains has been amplified by momentum-based fund buying, much of it from China, after prices this week smashed through a key chart resistance.
- Analysts also are revising down expectations of mine supply for 2017, after January's price slump to six-year lows forced some high-cost mines to shut, and with new supply from Peru largely complete.
- Relevant tickers include FCX, BHP, RIO, VALE, OTCPK:GLCNF, OTCPK:GLNCY, OTC:ANFGF, JJC, CPER, CUPM.
Thu, Nov. 10, 10:45 AM
- Freeport McMoRan (FCX +6.1%) extends this week's breakout momentum to challenge 18-month highs along the $14 level as copper prices continue to soar.
- High-grade copper futures for December have soared 4% so far today, the most in more than a year, extending gains as investors prepare for a possible boom in infrastructure projects under a Trump presidency.
- Along with improvement in economic data from China, a major buyer of industrial metals, “Trump’s pledge to spend, combined with a surge in speculative demand on exchanges from New York to London and Shanghai, have all helped drive copper up to a 16-months high,” says Ole Hansen, head of commodity strategy at Saxo Bank.
- Along for the ride are copper producers Antofagasta (OTC:ANFGF +11.3%), Glencore (OTCPK:GLCNF +5.7%) and BHP Billiton (BHP +8.2%), as well as companies that may benefit from bulked-up spending on U.S. infrastructure projects, such as Dublin-based CRH (CRH +1%), which has surged 11% in two days as the U.S. market makes up 51% of its revenue.
- ETFs: JJC, CPER, CUPM
Tue, Aug. 16, 6:07 AM
Fri, Apr. 8, 10:46 AM
- Antofagasta (OTC:ANFGF) says Diego Hernandez is retiring as CEO and will be succeeded by minerals division head Ivan Arriagada, effective immediately.
- Arriagada took the helm of operating unit Antofagasta Minerals in February 2015 as Hernandez moved from that role to run the parent company.
- Arriagada brings 25 years of operational and financial experience in the mining and oil and gas industries to the top slot.
- Now read Barclays warns on commodities rally
Tue, Mar. 15, 9:14 AM
- Antofagasta (OTC:ANFGF): FY'15 EPS of $0.60.
- Revenue of $3.4B (-34.0% Y/Y).
Tue, Mar. 15, 4:49 AM
- Antofagasta (OTCPK:ANFGY) -8.8% in London after the Chilean miner's full year pretax profit fell 83% to $259M and cancelled its final dividend.
- Anglo American (OTCPK:AAUKY) is also down well over 8% in the wake of news that CEO Mark Cutifani took a cut on his bonus due to a tough year for the company.
- Meanwhile, BHP Billiton (NYSE:BHP) was downgraded by Macquarie overnight to Underperform from Neutral. BHP -5.6% premarket.
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.
Sep. 14, 2015, 10:27 AM
- BHP Billiton (BHP -0.9%) is upgraded to Buy from Hold at Jefferies, which cites BHP's 7.7% dividend yield, strong free cash flow that should be sufficient to cover the dividend, its low cost assets, and its low operational and geopolitical risk.
- The firm says production cuts in response to lower iron ore prices are helping, and it expects the same for copper; the copper price outlook for the next year has improved modestly as a result, although near-term risk to copper and iron ore is still to the downside.
- Jefferies also downgrades Antofagasta (OTC:ANFGF) from Buy to Hold on valuation.
Jul. 30, 2015, 4:54 PM
- Barrick Gold (NYSE:ABX) agrees to sell a 50% interest in its Zaldivar copper mine in Chile to Antofagasta (OTC:ANFGF) for ~$1B.
- ABX has been trying to sell the mine as it looks to pay down at least $3B of debt by the end of this year.
- The Zaldivar mine produced 222M lbs. of copper in 2014, while proven and probable copper reserves as of December 2014 were 5.56B lbs.
Jun. 18, 2015, 8:59 AM
- Former Xstrata boss Mick Davis' X2 Resources is out of the race for a stake of up to 50% of Barrick Gold's (NYSE:ABX) Zaldivar copper mine in Chile after it was outbid in the first round of the sale process, Reuters reports.
- Chilean copper miner Antofagasta (OTC:ANFGF) is said to be interested in Zaldivar, but it is not clear if it would be a second round bidder; others in the running likely include Glencore (OTCPK:GLCNF, OTCPK:GLNCY); Teck Resources (NYSE:TCK), possibly backed by a Chinese partner; HudBay Minerals (NYSE:HBM), also with a partner; and an unnamed Chinese miner,
- Analysts have put a price tag of ~$1B on a 50% stake in the mine, which ABX put up for sale in April as it strives to cut $3B off its debt pile by year's end.
Apr. 23, 2015, 6:58 PM
- Chilean copper producer Antofagasta (OTC:ANFGF) agrees to sell its water division to Colombia's Empresas Publicas de Medellin for 596B Chilean pesos ($960M).
- The company is dependent on its Chilean copper output but also owned the water utility company in its home region; the utility contributed $64M, or 4%, of its 2014 pre-tax profits.
- Analysts at Citi say the water deal looks sound, with valuation on the sale at 13x EBITDA vs. the company’s corporate multiple of 8x.
Mar. 30, 2015, 4:33 PM
- Teck Resources (NYSE:TCK) -7.3% AH after saying it is not in any type of deal discussions with Antofagasta (OTC:ANFGF), and there are no other corporate developments that justify any significant movement in its share price.
- TCK was responding to earlier reports that the two companies were exploring a potential merger that would create one of the world's largest copper miners.
Mar. 30, 2015, 3:49 PM
- Teck Resources (TCK +10.9%) and Antofagasta (OTC:ANFGF +4.1%) are exploring a merger that would create one of the world’s largest copper producers, Bloomberg reports.
- The mining companies reportedly have held early-stage talks, and any agreement is said to hinge on the approval of the families that control each company.
- With a market value of ~C$11.3B, TCK is Canada’s third-largest mining group and London-listed Antofagasta has a market value of ~£7.3B ($10.8B), so a purchase of either company would be one of the mining industry’s largest deals over the past five years.
Mar. 27, 2015, 12:38 PM
- Barrick Gold's (ABX +0.3%) says it has closed its Zaldivar copper mine in Chile for safety reasons after heavy rains swept across the country's northern desert region this week, increasing to eight the number of copper miners that have been affected by the bad weather.
- No. 1 copper miner Codelco already had suspended mining operations at its Chuquicamata, Ministro Hales, Radomiro Tomic, Gabriela Mistral, and Salvador deposits due to the state of roads and mine access following the rains.
- Other mines affected by the rains include Antofagasta's (OTC:ANFGF) Michilla mine and Centinela copper complex, Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) Mantoverde and Lundin Mining's (OTCPK:LNDNF) Candelaria.
- Peru produces a third of the world's copper.
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