What's your position on ?
Why are you ish?
You voted ish on Vote again
Posts appear on the My Feed page of subscribers to this ticker
Tue, Feb. 2, 9:17 AM| Tue, Feb. 2, 9:17 AM | 5 Comments
Mon, Feb. 1, 3:58 PM
- BHP Billiton's (NYSE:BHP) credit rating is cut to A from A+ at Standard & Poor's, reflecting changes in commodity forecasts and "very challenging market conditions and increased demand uncertainty over the coming years."
- "The oversupply of crude oil in the market results in very weak oil and Henry Hub gas prices, which we now believe will last over the foreseeable future, putting further pressure on its balance sheet," S&P says.
- Rio Tinto's (NYSE:RIO) A- rating could be lowered one notch in the coming weeks "if the company does not take supportive measures amid the currently weak commodity prices pressuring its cash flows", S&P also says.
- BHP -0.8%, RIO -0.5%.
Sat, Jan. 30, 12:10 AM
- Rio Tinto (NYSE:RIO) and BHP Billiton (NYSE:BHP) are preparing for Cyclone Stan’s arrival on Australia’s west coast, as the mining companies stop loading ships and evacuate workers from Port Hedland, the world’s largest bulk export terminal.
- The cyclone is ~100 miles north of Port Hedland and advancing toward Western Australia’s Pilbara region, says the Bureau of Meteorology, which predicts the storm to strengthen and make landfall as a category 3 severe tropical cyclone by early Sunday.
- At last report, Rio’s mine and rail operations were still functioning normally but ships have left port for safe anchorage, BHP was strapping down equipment and ordering staff to leave the site, and Fortescue Metals (OTCQX:FSUMF) was taking steps to protect its operations and workers.
Thu, Jan. 28, 3:49 PM
- BHP Billiton (BHP +2.1%) signs a letter of intent to help fund exploration at Aston Bay Holdings' (OTC:ATBHF) Storm copper project, Reuters reports.
- Under the terms of the preliminary deal, BHP could earn a 75% interest in Storm, located in Canada's Nunavut territory, if it spends a minimum of C$40M on exploration over the next few years.
- BHP's move comes shortly after similar steps by rival Rio Tinto (RIO +1.6%), which signed deals involving the copper assets of Canadian junior miners Avala Resources (OTC:AVLRD) and Reservoir Minerals (OTCPK:RVRLF).
Mon, Jan. 25, 11:57 AM
- Brazilian iron ore miner Samarco, the 50-50 joint venture between Vale (VALE -1.7%) and BHP Billiton (BHP -2.7%), received serious danger warnings from ground sensors in 2014 and 2015, months before November's disastrous dam burst, according to Globo TV's Fantastico news magazine.
- The alerts from probes driven deep into the dam's structure to detect ground moisture and stability reached as high as "emergency" levels, according to the report, which cited Samarco-commissioned engineering studies provided to prosecutors investigating the case.
- The studies did not include sensor data from areas critical to the integrity of recent enlargements to the dam, an indication that the sensor data was lightly regarded, according to a prosecutor interviewed in the TV report.
Fri, Jan. 22, 6:45 PM
- BHP Billiton (NYSE:BHP) needs to raise $5B-$10B through a share sale if it wants to fulfill its stated goal of retaining its A+ credit rating at S&P and A1 rating at Moody’s, says Liberum Capital's Richard Knights.
- "Slashing capital expenditure and even cutting its dividend to zero are not sufficient for BHP to realistically retain a ‘solid A’ credit rating, if spot commodity prices and currencies persist," Knights says.
- “Given the optionality additional capital would give BHP around M&A at this point in the cycle, we feel a raise at the higher end of this range is more likely,” Knights says of his $5B-$10B, since "the threat of a capital call will weigh on the shares.”
Fri, Jan. 22, 2:36 AM
- Brazil's government and Samarco Mineração, a joint venture between Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP), are inching closer to a deal to settle a 20B-real ($4.8B) lawsuit related to November's deadly dam burst.
- The resulting tsunami of mud roared through river valleys in two states, killing at least 17 people and dumping mine waste as far away as the Atlantic Ocean.
- An outline of the accord between the two sides is likely to be completed by early February.
Thu, Jan. 21, 9:53 PM
- Vale (NYSE:VALE) is ordered to temporarily close its key Tubarao port after iron ore and coal dust were found in the sea.
- Iron ore futures prices in Asia surge on the news along with miners’ shares, as BHP Billiton (NYSE:BHP), Rio Tinto (NYSE:RIO) and Fortescue Metals (OTCQX:FSUMF) are all up sharply in early Australia trading.
- Steelmaker ArcelorMittal (NYSE:MT) also uses the port, although it says the court’s decision will not immediately affect its activities.
- The court ruling adds to Vale’s woes after the dam breach at its Samarco joint venture caused at least 17 deaths and led to widespread environmental damage.
Thu, Jan. 21, 7:56 AM
- Brazilian mining company Samarco says CEO Ricardo Vescovi and Director of Operations Kleber Terra have taken temporary leave from their positions, more than two months after the failure of a waste storage dam that killed 17 people.
- The two execs of the joint venture between Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) plan to focus on their defense against accusations of environmental crimes by Brazil's Federal Police; formal charges have not been filed pending a full investigation.
- Commercial Director Roberto Carvalho will serve as interim CEO while Maury Souza would step in as director of operations.
Wed, Jan. 20, 2:57 PM
- BHP Billiton (BHP -4.4%) sinks to its lowest level in more than a decade as expectations rise that it will cut its dividend amid the commodity price crash and the Brazil dam disaster.
- In a production update after yesterday's close, BHP hinted at the potential for a change to its longstanding policy of maintaining or increasing its dividend while signaling its determination to protect its balance sheet and maintain the financial flexibility to take advantage of any recovery in copper and oil prices, Financial Times says.
- "Given our revised commodity price deck and prevailing financial risks, including the fallout from Samarco and ongoing oil price weakness, we have taken the view that BHP Billiton will need to reduce its progressive dividend policy on a permanent basis," according to Investec analysts.
Wed, Jan. 20, 9:13 AM
Tue, Jan. 19, 5:26 PM
- BHP Billiton (NYSE:BHP) says Q4 iron ore production rose 1% Y/Y to 57M tons and trims its full-year iron ore guidance after its Brazil joint venture was halted following November's fatal dam breach.
- BHP now sees iron ore production in the 12 months to June 30, 2016, at 237M metric tons vs. a July estimate of 247M tons; Vale, the joint owner of the Samarco venture that has been halted since the dam failure, last month cut its full-year output guidance by as much as 10%.
- BHP reaffirms production guidance for petroleum, copper, coal and Western Australia iron ore.
- BHP shares hit their lowest levels since May 2005 today, hit by tumbling commodity prices and the $4.9B after-tax writedown on the value of its U.S. shale oil and gas assets flagged late last week.
Fri, Jan. 15, 12:19 PM
- Amid BHP Billiton's (BHP -7.9%) $4.9B writedown on the value of its U.S. shale assets, analysts say the company's next safeguard against the commodities collapse may be to abandon its decade-old pledge to maintain or raise its dividend.
- "The biggest concern they have is can they fund their dividend, can they fund their capex plans?” says Citigroup analyst Clarke Wilkins, who believes BHP will cut both its dividend and project spending when it announces half-year results next month.
- Although the impairments have no cash impact, the idea that BHP can maintain its hefty dividend and protect its balance sheet looks increasingly untenable, writes WSJ's Helen Thomas.
- However, at least two analysts have come out with positive views on BHP, as Credit Suisse and Citigroup maintain Buy ratings and say the impairments were not unexpected.
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
Thu, Jan. 14, 6:17 PM
- BHP Billiton (NYSE:BHP) +1.3% AH after saying it will book a ~$4.9B impairment charge ($7.2B before tax) against the value of its U.S. shale assets to reflect its reduced projections on prices and revisions to its own development plans, "which have more than offset substantial productivity improvements."
- BHP says the writedown would reduce the net value of its onshore U.S. operating assets to ~$16B.
- BHP also says it will cut the number of rigs it operates in the business to five from seven during Q1 and review its investment and development plans for the rest of 2016 with a focus on preserving cash flow.
Thu, Jan. 14, 1:12 PM
- Brazil's Federal Police accuse seven people and three companies, including miner Vale (VALE +8.7%) and its Samarco joint venture with BHP Billiton (BHP +6.5%), of environmental crimes in response to November's major dam collapse.
- The move, which has no exact equivalent in the U.S. legal system, will trigger the start of a deeper investigation by police and typically represents a step toward formal charges, which in Brazil can be filed only by prosecutors.
- Vale says it received news of the accusations "with surprise," and has insisted that Samarco was solely responsible for the collapse of the tailings dam; unlike BHP, Vale had been depositing tailings from one of its own iron ore mines into the Funda reservoir that burst, leading prosecutors to deem it liable as a "direct polluter."
BHP Billiton Ltd is a natural resources company. The Company is engaged in the producing commodities, including iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminium, manganese, uranium, nickel and silver.
Other News & PR