Fri, Oct. 2, 10:59 AM
- Australia's Port Hedland, which handles ~20%h of the world's seaborne iron ore trade, reports record monthly iron ore shipments of 39.3M metric tons in September, an 8% rise from a year ago and slightly above the August level.
- Port Hedland is used by BHP Billiton (BHP +1.3%) and Fortescue Metals (OTCQX:FSUMF +6.4%); BHP plans to increase iron ore output by 6% to 247M metric tons by next July, while Fortescue is running at an annual rate of ~165M metric tons, making them the no. 3 and no. 4 worldwide producers after Vale (VALE +2.1%) and Rio Tinto (RIO +0.7%).
Wed, Sep. 30, 6:50 PM
- Vale (NYSE:VALE) says its biggest project - S11D, part of the Carajas mining complex in northern Brazil - is ahead of schedule and on track to beat a targeted December 2016 start date.
- The project is expected to add 90M metric tons of annual capacity to global supply, although the company intends to control the speed at which it hits the market, CFO Luciano Siani tells Bloomberg.
- While S11D coming on stream sooner than planned would help Vale reduce its debt, it looms as another strain on an iron ore market hit by a series of expansions by Vale and main rivals BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) in Australia at a time of slowing Chinese growth.
- Siani also says a proposed IPO of the company's base metals assets is off the table and will be resurrected only if prices recover.
Wed, Sep. 30, 9:13 AM
Tue, Sep. 29, 7:48 AM
- Vale (NYSE:VALE) proposes cutting dividends even more than planned, looking to pay $500M for the second tranche of its 2015 dividend, half the $1B it proposed in January.
- The company says the reduction in the second dividend installment to ~$0.10/share (as of Aug. 31) reflects "the more uncertain scenario for mineral commodities prices and the focus on managing the balance sheet."
- Vale's board of directors is set to review the proposal at an Oct. 15 meeting, and payment would take place on Oct. 30.
- Credit Suisse expects lower metal prices will lead Vale to cancel next year's dividend altogether.
Mon, Sep. 28, 2:48 PM
- It isn't just Glencore (OTCPK:GLCNF, OTCPK:GLNCY) who is tanking, as at least one measure of raw materials producers plunges to seven-year lows following the company's woes and data that showed weakening Chinese industrial profits.
- Shares of Glencore plunged 29% to close at just 69 pence, an all-time low, exaggerated by a damning report that said future earnings are so uncertain that the company may need to direct all of its efforts to repay debt.
- Freeport McMoRan (FCX -10.2%) is hit hard after breaking below support at $10/share, and global mining peers Rio Tinto (RIO -4.1%), BHP Billiton (BHP -4.5%) and Vale (VALE -9.4%) also are smacked down.
- A number of other firms also are in situations not that much different from Glencore, says DTN analyst Darin Newsom, noting that Caterpillar (CAT -2.2%) and Deere (DE -1.6%) have been struggling and adding that pressure on Glencore may “create a vacuum those other struggling companies could get sucked into."
- Along with oil and gas producers and precious metals miners, even financial stocks are affected, with Morgan Stanley (MS -3.6%) and Goldman Sachs (GS -3.4%) underperforming their banking peers, perhaps as investors grow nervous about the potential for any of Glencore's problems possibly blowing back on other commodity trading operations.
Tue, Sep. 22, 9:21 AM
Tue, Sep. 22, 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.
Wed, Sep. 16, 8:24 AM
- Vale (NYSE:VALE) says it is ruling out equity sales and halted dividends initiated by iron ore mining rival Glencore, betting that cost cuts and growing market share will be enough to endure low prices.
- "We aren’t studying a model like the one taken by Glencore, because we don’t consider it necessary for Vale," Vale CEO Murilo Ferreira.
- Vale’s board will discuss the payment of a second $1B installment for its 2015 dividend in a mid-October meeting, Ferreira says, and the company also is striving to conclude by year-end the financing needed for its Moatize coal project in Mozambique.
- Earlier: Glencore issues new shares equaling 9.99% of existing share capital
Mon, Sep. 14, 11:13 AM
- Petrobras (PBR -0.9%) says Chairman Murilo Ferreira will take a leave of absence until Nov. 30 without offering a reason, but Vale (VALE -0.5%) says Ferreira is not taking time off from the mining company, where he is CEO.
- Ferreira wanted to focus on his work at Vale due to the economic slowdown in China, the top consumer of Vale's iron ore exports, a source tells Reuters.
- Ferreira is known to have disagreed on some decision taken by PBR's board; he voted against a move approving a potential IPO of 25% of the PBR's fuel distribution subsidiary, saying the company should have explored other ways to maximize the business’ value.
Thu, Sep. 10, 5:34 PM
- Petrobras (NYSE:PBR) is downgraded to junk status with a negative outlook by Standard & Poor's, a day after cutting Brazil’s sovereign debt to junk.
- The ratings agency cuts the state-run company's credit ratings by two notches, to BB from BBB-, joining Moody’s in moving PBR to junk; Fitch classifies PBR at the lowest investment grade with a negative outlook.
- S&P also downgrades ~30 other Brazilian state companies, including electric utility Eletrobras (NYSE:EBR), which is lowered to BBB-; ratings and outlooks for Vale (NYSE:VALE), Embraer (NYSE:ERJ) and Gerdau (NYSE:GGB) are not changed.
- Earlier: Petrobras' investment plans at risk from S&P downgrade
- ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
Tue, Sep. 8, 9:14 AM
Wed, Sep. 2, 5:32 PM
- Vale (NYSE:VALE) says it received a ruling allowing it to restart operations at the Onca Puma nickel mine in Brazil, after a court last month ordered operations stopped due to a dispute over payments to local indigenous communities.
- Vale also says a court order for the company to pay the indigenous groups 3M reais ($796K) also was suspended.
Tue, Sep. 1, 12:19 PM
- Freeport McMoRan (FCX -7.4%) is downgraded to Neutral from Buy with an $12 price target, lowered from $20, at Citigroup, which says the copper sector has not reduced production enough to account for falling prices.
- FCX has guided to strong cash flow of $6.3B for 2016, at $2.25/lb. copper and $54/bbl oil, but the guidance included considerable working capital drawdown, which Citi estimates at $1.8B while saying there is "very little incremental deleveraging opportunity."
- According to the Citi report, the best opportunity for FCX to improve its free cash flow is to eliminate or at least reduce its exposure to oil and gas.
- Global miners are having a rough time as weak China data batters stocks: BHP -6.7%, RIO -5.3%, VALE -3.5%, TCK -7.6%.
Mon, Aug. 31, 1:04 PM
- The latest from the high-level corruption scandal has the U.K Rolls-Royce being dragged in, with the company saying it's cooperating with investigators over bribery in Brazil's state oil business.
- The Bovespa's 1.9% decline today is being led by banks Itau Unibanco (ITUB -5.2%), Banco Bradesco (BBD -5.9%), and Banco Santander Brasil (BSBR -3.2%).
- Petrobas (PBR +1%) and Vale (VALE +1.2%) are actually hanging in there this session.
- The iShares MSCI Brazil Index ETF (EWZ -3.3%)
- ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
Thu, Aug. 27, 12:11 PM
- Petrobras (PBR +11.2%) management has recommended to the company's board that it delay a planned IPO of its fuel distribution unit because of deteriorating market conditions, Reuters reports.
- The company has said an IPO of the BR Distribuidora fuel distribution business, which includes Brazil’s largest gas station chain with ~7,500 stations across the country, would depend on global and domestic market conditions.
- Brazil equities are rising broadly today as China, the country’s top trading partner, makes efforts to bolster the market and the economy; VALE +7.9%, EBR +7.7%, ITUB +5.7%, BBD +5.1%, BSBR +3.4%, ERJ +1.9%.
Tue, Aug. 18, 5:40 PM
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