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.
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. 10, 2015, 3:45 PM
- Peabody Energy (BTU -5.6%) slides sharply after Jefferies downgrades shares to Hold from Buy with a $6 price target, cut from $10, on continued concerns about domestic thermal coal fundamentals due to low natural gas prices, weakening exports, MATS related coal plant closures and increased renewable capacity.
- BTU's Australian coal business is more likely to improve in the near-term due to higher seaborne thermal coal prices, the firm says, but operating costs have not declined nearly as much as competitors due to its extensive hedging program.
- Jefferies is bearish on mining shares in the near-term, and the firm revised many of its commodity price forecasts lower, but it has placed four metals and mining stocks above the rest: Freeport McMoRan (FCX -3.5%), Rio Tinto (RIO -2.6%), First Quantum (OTCPK:FQVLF -6.8%) and Angofagasta (OTCPK:ANFGY -5.8%).
Mar. 12, 2014, 12:23 PM
- It's time to buy Rio Tinto (RIO +1.6%) after shares have dropped 8% in the past week thanks to falling iron ore prices, Societe Generale analysts say as it sees potential gains of more than 30%.
- The recent fall in iron ore prices, even if not reversed, should result in downward revision to near term consensus earnings forecasts but should not put meaningful downside pressure on longer term earnings forecasts for RIO, the firm says.
- RIO shares are trading on an implicit 2015 estimated P/E of 9.4x, well below BHP Billiton's (BHP) 13.8x, Antofagasta's (ANFGY) 18.9x, and Vedanta Resources' (VDNRF) 90.3x; the firm recommends investors buy RIO shares and hedge the risk by selling more steeply priced base metals producers.