Aug. 6, 2015, 7:59 AM
- Rio Tinto (NYSE:RIO) +0.7% premarket after reporting its adjusted H1 EPS fell 43% Y/Y to $1.59, but that was ahead of $1.42 analyst consensus estimate, while sales revenues of $18B missed $19.6B consensus.
- "This is a robust set of results, given the tough operating environment,” CEO Sam Walsh says.
- Rio says it targeting $1B in cost cuts this year compared with an earlier target of $750M, and pares its capital spending budget for the year to ~$5.5B from an earlier forecast of as much as $7B, and to less than $6B for 2016.
- Spending on exploration and evaluation continues to fall, to $340M in H1 from $542M in the prior-year H1; cost savings in H1 totaled $641M, or 85% of the previous target for the full year.
- Rio declared an interim dividend of $1.075/share, up 12% Y/Y and in line with expectations.
- Rio's H1 underlying earnings from iron ore operations fell 55% Y/Y to $2.1B, underpinned by a near-40% Y/Y fall in iron ore prices at the end of June.
- Net debt increased by $1.2B to $13.5B, a smaller amount than analysts had expected, and cash generated from operation activities totaled $4.4B.
- Rio says its balance sheet is “in very good shape” but will look at any offers for their assets that are above their valuations.
Jul. 29, 2015, 12:25 PM
- Cliffs Natural Resources (CLF -0.8%) shares have fluctuated above and below the flatline even after reporting a bigger than expected Q2 loss, driven by lower U.S. iron ore pricing and shipments.
- CLF says it expects to see improved industry operating conditions and profitability in H2, but it nevertheless cuts its 2015 sales volume forecast for U.S. iron ore operations by 1.5M tons to 19M tons of iron ore pellets, blaming a supply glut created by heavy steel imports.
- Ben Levisohn of Barron's speculates CLF shares may be helped today by investors betting that steel prices will head higher after steel producers filed a trade case, or it could be a short squeeze as short-interest remains high despite being well off its peaks.
- Other iron ore producers are higher: BHP +1.5%, RIO +1.2%, VALE +3.1%.
Mar. 25, 2015, 8:58 AM
- Turquoise Hill Resources (NYSE:TRQ) +5.5% premarket after reporting in-line Q4 earnings, a big revenue increase and a strong production outlook.
- Mongolia's Oyu Tolgoi, TRQ's principal mineral resource property, produced 589K oz. of gold in concentrates and 148.4K metric tons of copper in 2014, compared to 157K oz. of gold in concentrates and 76.7K metric tons of copper in 2013.
- Based on the current mine schedule, TRQ expects Oyu Tolgoi to produce 600K-700K oz. of gold in concentrates and 175K-195K metric tons of copper during 2015, and expects production from the high-grade core of the southwest zone to resume in mid-2015.
- Rio Tinto (NYSE:RIO), which owns 51% of TRQ, +1.8% premarket.
Oct. 27, 2014, 6:25 PM
- Cliffs Natural Resources (NYSE:CLF) -0.2% AH after reporting Q3 earnings that beat expectations and a 16% Y/Y drop in revenues that nevertheless met estimates.
- CLF swung to a loss in the quarter, dragged down by a $6B writedown related to its purchase of a Canadian iron ore mine as well as 32% lower iron ore prices and 17% lower met coal prices.
- CLF says Q3 costs at its eastern Canadian operations were $81.71/ton, and it expects costs to remain at $80-$85; the big three miners - BHP, RIO and VALE - control massive mines, ports and railroads, which allows them to produce iron ore at $50/ton or lower.
- Iron ore pellet sales volume totaled 6.8M tons (+8% Y/Y) for the U.S., 3.1M tons (+11%) for Asia Pacific, and 2.3M tons for eastern Canada (-12%); North American coal sales volume was 1.9M tons (+15%).
- Gross margin narrowed to 9.8% from 22.5% a year earlier.
- "Despite continued cost cutting progress at Bloom Lake, Phase I is not feasible. By the end of this year, we will have a solution for Bloom Lake," CEO Lourenco Goncalves says.
Aug. 7, 2014, 7:52 AM
- Rio Tinto (NYSE:RIO) +1.7% premarket says its H1 profit more than doubled and debt fell, as it benefited from an aggressive cost-reduction drive and rising iron ore production which offset weaker iron ore prices.
- Underlying H1 earnings, stripping out one-off charges, rose 21% to US$5.1B, better than analyst expectations of US$4.69B.
- CEO Sam Walsh says RIO had stripped more costs out of the business during H1, bringing annualized savings to US$3.2B since 2012 and helping bring net debt down to US$16.1B from US$18.1B at the end of December.
- H1 iron ore profit rose 10% to US$4.7B vs. US$4.27B a year earlier, as a sharp rise in output more than offset a 30% fall in prices of the steelmaking material since the start of January.
- Last month, RIO said it produced a record 139.5M metric tons of iron ore after expanding several mines in the Australian Outback.
Feb. 13, 2014, 3:26 AM
- Rio Tinto's (RIO) 2013 underlying profit rose 10% to $10.2B and topped consensus of $9.7B, boosted by $2.3B in cost cuts.
- The mining giant swung to a net profit of $3.7B from a loss of $3B in 2012, when it took significant charges on its aluminum and coal assets. Consensus was for $7.59B.
- Last year's net profit reflects non-cash exchange losses of $2.9B and impairments of $3.4B, notably on Rio's Mongolian Oyu Tolgoi copper project.
- Plans to cut another $3B in costs this year.
- Net debt dropped by $1.1B to $18.1B.
- Rio reported record output of iron ore, bauxite and power-station coal for 2013.
- Iron ore output +5% to 266M metric tons.
- Rio Tinto increased its final dividend to $1.92 from $1.67 a year earlier. (PR)
Nov. 14, 2013, 9:48 AM
- Turquoise Hill Resources (TRQ -7.1%) sinks at the open on plans for a new rights offering to fund expansion of the Oyu Tolgoi mine, citing uncertainty around talks with the Mongolian government that has delayed financing.
- TRQ says discussions with the government are continuing in order to reach agreement on outstanding issues: "There is positive engagement between the parties and progress is being made."
- TRQ and Rio Tinto (RIO) will extend the maturity date of the interim funding facility and the new bridge facility to no later than Jan. 15, 2014 to allow for completion of the rights offering.
- The Oyu Tolgoi concentrator consistently achieved throughput capacity of above 95% of capacity during Q3 and is now operating at nameplate capacity of ~100K metric tons/day of ore; operations continue to progressively ramp up and are now expected to produce 72K-77K metric tons of copper in concentrates for 2013.
Aug. 20, 2013, 8:40 AM
- SocGen sees BHP Billiton's (BHP) FY 2013 results as a net negative, particularly plans to invest $2.6B during the next four years digging shafts at the Jansen potash project; most market participants believe the project is likely to be NPV destructive.
- CEO Andrew Mackenzie: ""The whole basis of the strategy.. is that we want to retain complete flexibility to enter the [potash] market at a timing which we think is right to maximize returns for our sharheolders."
- SocGen continues bearish on BHP shares; if investors were to invest 26% of their portfolio in COP and the remaining 74% in RIO, the firm says they can replicate the commodity mix and asset quality of BHP but pay a 30% lower P/E and receive a 10% higher dividend yield.
- Shares -0.8% premarket.
Aug. 8, 2013, 3:58 AM
- Rio Tinto (RIO): H1 underlying earnings -18% to $4.23B, hurt by falling commodity prices.
- Net profit -71% to $1.72B, due to $1.85B paper loss that from the effect of forex fluctuations on the value of the company's debt. Results also include a $340M charge related to the pit wall slide at the Bingham Canyon copper mine in the U.S.
- Lowered expenses by $1.5B, putting it on course to achieve targeted savings of over $5B by the end of 2014.
- While Chinese growth has slowed and is unlikely to recover significantly in H2, Rio doesn't expect a hard landing, says CEO Sam Walsh.
- Hasn't yet decided whether to invest another $5B on the iron ore division; will make it at the year-end.
- Scraps sale of Australasian aluminum assets, due to the market environment. Follows failure to sell the diamond unit.
- Declares interim of 83.5 cents, +15%.
- Shares +1.35% in London. (PR)
Jul. 17, 2013, 3:17 AM
BHP Billiton's (BHP) iron ore output rose 9% in FY 2013 to a record 187M tons, a figure that should grow this year as the company maintains plans to boost annual capacity to 220M tons by December. The increase in production at BHP, as well as at Rio Tinto (RIO), comes despite the slowdown in growth in China, a major export market. The strategy of the majors is to tighten their grip on the market and maximize economies of scale while other miners struggle. "As long as they keep margins well ahead of a declining iron ore price, they are winning," says analyst Gavin Wendt. (PR)| Jul. 17, 2013, 3:17 AM
Jul. 16, 2013, 4:24 AM
Rio Tinto's (RIO) iron ore production rose 7% on year in Q2 to reach a record 66M tons despite bad weather and technical problems, while copper output increased 10%. The company intends to push on with work in Australia to boost its annual operating capacity by 10% to 290M tons by the end of September. Rio reiterated it expects to mine 265M tons of ore this year. Shares +1.9% premarket. (PR)| Jul. 16, 2013, 4:24 AM
Feb. 14, 2013, 2:04 AMRio Tinto (RIO): 2012 net loss $3B vs profit of $5.8B a year earlier and consensus of $4B. First loss in at least 21 years. Underlying profit -40% to $9.3B vs forecasts of $9.1B. Revenue $50.97B vs $60.54B. Loss due to impairment charge of $14.4B, mainly related to aluminum operations and coal assets in Mozambique. Ups annual dividend 15% to $1.67/share. (PR) | Feb. 14, 2013, 2:04 AM
Jan. 17, 2013, 3:16 AM
Rio Tinto (RIO) Chief Executive Tom Albanese is stepping down and being replaced by Iron Ore CEO Sam Walsh after Rio said it will take a $14B non-cash impairment charge in its 2012 earnings report following problems in Mozambique and with its aluminum assets. Shares -2% in London. (PR)| Jan. 17, 2013, 3:16 AM | 5 Comments
Jan. 15, 2013, 2:44 AM
Rio Tinto (RIO) intends to expand its iron ore mine in the remote Australian region of Pilbara to 360M metric tons a year by mid-2015 from 290M by the end of 2013. In 2012, Rio's overall production rose 4% to 253M tons, slightly above its guidance of 250M tons. The company is benefiting from an 80% recovery in iron-ore prices since September as Chinese steel mills re-enter the market on an improving economic picture.| Jan. 15, 2013, 2:44 AM
Aug. 8, 2012, 3:23 AM
More on Rio Tinto (RIO) H1: earnings hurt by a decline in iron ore and other commodity prices; warns about short-term uncertainty but is confident demand will be strong in the long run and is focused on improving productivity; holding to earlier capex plans, although all spending decisions will be made against goal of keeping single A credit rating.| Aug. 8, 2012, 3:23 AM