Could Mining Companies Be Left High And Dry? [View article]
A good rule of thumb is that you need one tonne of water for every tonne of rock you process on a copper mine. It costs a lot to reduce that water consumption rate.
The bottom line is that the in deserts geologists should focus on finding water as well as ore.
Prices of iron ore hit a seven-month low today, and are down 30% since hitting a year high in February, as prices get hit by a demand slowdown in China and a glut of supply. Analysts are predicting more declines, with Westpac projecting iron ore prices to drop to as low as $85 a ton by the end of September. Liberum Capital notes that its channel checks show the price may fall below $90 a ton. "The market is flush with product at the moment," says RBS Morgans resources analyst James Wilson. "Pricing power has switched from the iron-ore miners to the steel mills." [View news story]
SmashF, so true. I remember the dot.com craze, the Time magazine headlines, and how the rules are going to re-written, and all that jazz. The crash came within a few months after that article.
Gold and Iron ore is down. I am just going to sit this out. Its not only China that needs Iron; India, Malaysia, all these counties with big populations are just not on the radar.
Fears On Freeport-McMoRan Unwarranted: Big Upside Potential Remains [View article]
Emmet, if you are going to quote EPA propaganda, please warn us in advance. You said that in China 1.5million persons die from air pollution every year. Did you check the source? A study that was funded by ..The organization is partly financed by the United States Environmental Protection Agency...
If you believe that coal power stations in the USA should shut down, that the Keystone oil pipeline should not be build, good, no problem with that, just tell your readers you are very worried about the future, global warming, and stock up on ice cubes.
I do not believe the guestimate of 1.5million deaths, prepared by the Deep Greens of the EPA, and class that as pure propaganda.
Lastly, I am a retired miner myself, I have Anglos. BHPs and Glencores in my portfolio. I think that FCX is a well run company, I disliked the propaganda part of your narrative, but your recommendations are good.
Governance Concerns At BHP Billiton [View article]
What a biased article, from an analyst who evidently never worked in industry.
Why is it that when a person uses a car on a public road he is responsible for his own behaviour and actions, but the minute he drives on company property, his driving skills and performance, all of a sudden, becomes the responsibility of the directors and managers of the company?
I think it is right that BHP stands up to governments that are following an anti-capitalist agenda and wants to destroy private ownership and private companies. Why should the annual reports be loaded with reams and reams of paper dealing with the directors remuneration?
Perhaps companies should be compelled to list the costs of dealing with each and every law, regulation, and ordinance so that the true costs of legal compliance are known to shareholders? That way shareholders will know which countries and jurisdictions to avoid.
Anglo American Platinum (AAUKF.PK), which produces 40% of global platinum, intends to suspend output at several mines in South Africa, sell its Union mines, cut 14,000 jobs and slash annual output by 400,000 ounces to 2.1-2.3M ounces. Most of the layoffs will come at Amplat's property in Rustenburg, a region where labor unrest left several dead last year. With its action, the firm hopes to return to profitability. [View news story]
The platinum review was long overdue.
The older shafts that were extracting the ore more costly is being closed, a logical and rational decision. I doubt that union-bashing was an underlying justification or motivation for any of the decisions, that is not the way Anglo, AngloPlatinum, or indeed any large company operates.
The fact that rising labour costs made certain shafts nonviable is just an unfortunate consequence of irrational union actions. I am glad that AngloPlatinum is now going to mine platinum to make money and not just blindly produce platinum to be the biggest platinum producer in the world, subsidizing the poor performers in its portfolio for the sake of a few ounces more.
Not mentioned and factored in the equation is the fact that Cat is leading the installation of driver-less trucks, with full robotic kits going at US$5 million a truck. See article on BHP.
BHP Billiton (BHP) is considering shipping some of its U.S. shale gas reserves to Asia, spurred by interest from Japanese power utilities seeking shale gas, which sells for about a quarter of the price of LNG imports. It is becoming more attractive for BHP to export gas from the U.S. rather than from western Australia, where LNG ventures are struggling with escalating costs. [View news story]
To get USA gas to Asia will take 7 years or so because the following hoops have to be jumped through:- - Get export permit from the host of USA agencies - Get permission to build export facility in the USA - let's not forget the torturous environmental permitting for this facility - Build the facility, at least four years.
So if you are prepared to wait a decade or so before the benefits of this decision reports in the BHP Billiton bottom line, Good for you!
BPcancels plans to build a commercial-scale cellulosic ethanol plant in Florida, and says it will refocus its U.S. biofuels strategy on R&D as well as licensing its industry-leading biofuels technology. BP originally intended to spend $250M-$350M on a facility to turn thousands of acres of energy crops into 36M gal/year of cellulosic ethanol. [View news story]
What good news! In this day, with food shortages around the world, it is IMHO absolutely immoral to turn edible crops into fuel. Looks like BP is resetting it's moral compass and is trying to do what is right instead of following the latest trends set by mankind hating advocacy groups.
Russia could make a radical shift in policy and allow western crude producers to own oil licenses in the Arctic, Energy Minister Alexander Novak has told the FT. Until now, Russia has awarded such licenses only to state-owned companies, with foreign firms taking just minority stakes in projects. However, Russia needs to attract Western know-how and money for it to fully exploit its Arctic resources. [View news story]
Bob, I see that question the rule of law in Russia. You may be surprised to know that in many quarters the way in which the rule of law is ignored in the most recent past, and under the current administration of the USA, is also a cause for concern. The way in which the current administration handled the gulf spill, and the president insisting on calling BP 'British' petroleum was perhaps not a shining example of how 'the rule of law' should be applied.
Incidentally, what happen to the oil? Is it still floating around, lurking in the dark and waiting to pounce on some innocent sailboat passing in the area, or did it drift down to the fabled and mythical Bermuda Triangle to vanish amongst all the airplane wrecks?
The Case For Investing In South Africa (Part II) [View article]
I think it is a major fault trying to equate Zimbabwe with South Africa, it is bit like comparing Cuba the 'thriving socialistic paradise with excellent health care' a la Micheal Moore, with the USA.
South Africa has more than 15 companies that are world class assets and that are duel listed; either London or NYSE, something that Zimbabwe never had. The sectors covered are Banking and Insurance, Mining, Luxury goods, Oil and gas, technology.
The second space tourist, Mark Shuttlewood, was originally a South African that made his fortune in IT.
Could Mining Companies Be Left High And Dry? [View article]
The bottom line is that the in deserts geologists should focus on finding water as well as ore.
Prices of iron ore hit a seven-month low today, and are down 30% since hitting a year high in February, as prices get hit by a demand slowdown in China and a glut of supply. Analysts are predicting more declines, with Westpac projecting iron ore prices to drop to as low as $85 a ton by the end of September. Liberum Capital notes that its channel checks show the price may fall below $90 a ton. "The market is flush with product at the moment," says RBS Morgans resources analyst James Wilson. "Pricing power has switched from the iron-ore miners to the steel mills." [View news story]
Gold and Iron ore is down. I am just going to sit this out. Its not only China that needs Iron; India, Malaysia, all these counties with big populations are just not on the radar.
Fears On Freeport-McMoRan Unwarranted: Big Upside Potential Remains [View article]
If you believe that coal power stations in the USA should shut down, that the Keystone oil pipeline should not be build, good, no problem with that, just tell your readers you are very worried about the future, global warming, and stock up on ice cubes.
I do not believe the guestimate of 1.5million deaths, prepared by the Deep Greens of the EPA, and class that as pure propaganda.
Lastly, I am a retired miner myself, I have Anglos. BHPs and Glencores in my portfolio. I think that FCX is a well run company, I disliked the propaganda part of your narrative, but your recommendations are good.
Governance Concerns At BHP Billiton [View article]
Why is it that when a person uses a car on a public road he is responsible for his own behaviour and actions, but the minute he drives on company property, his driving skills and performance, all of a sudden, becomes the responsibility of the directors and managers of the company?
I think it is right that BHP stands up to governments that are following an anti-capitalist agenda and wants to destroy private ownership and private companies. Why should the annual reports be loaded with reams and reams of paper dealing with the directors remuneration?
Perhaps companies should be compelled to list the costs of dealing with each and every law, regulation, and ordinance so that the true costs of legal compliance are known to shareholders? That way shareholders will know which countries and jurisdictions to avoid.
Anglo American Platinum (AAUKF.PK), which produces 40% of global platinum, intends to suspend output at several mines in South Africa, sell its Union mines, cut 14,000 jobs and slash annual output by 400,000 ounces to 2.1-2.3M ounces. Most of the layoffs will come at Amplat's property in Rustenburg, a region where labor unrest left several dead last year. With its action, the firm hopes to return to profitability. [View news story]
The older shafts that were extracting the ore more costly is being closed, a logical and rational decision. I doubt that union-bashing was an underlying justification or motivation for any of the decisions, that is not the way Anglo, AngloPlatinum, or indeed any large company operates.
The fact that rising labour costs made certain shafts nonviable is just an unfortunate consequence of irrational union actions. I am glad that AngloPlatinum is now going to mine platinum to make money and not just blindly produce platinum to be the biggest platinum producer in the world, subsidizing the poor performers in its portfolio for the sake of a few ounces more.
Caterpillar Dividend Stock Analysis [View article]
Good growth prospects for sure!
Robotic Technology Makes BHP More Attractive [View article]
It is better to be good second than a poor first when it comes to technology!
BHP Billiton (BHP) is considering shipping some of its U.S. shale gas reserves to Asia, spurred by interest from Japanese power utilities seeking shale gas, which sells for about a quarter of the price of LNG imports. It is becoming more attractive for BHP to export gas from the U.S. rather than from western Australia, where LNG ventures are struggling with escalating costs. [View news story]
- Get export permit from the host of USA agencies
- Get permission to build export facility in the USA - let's not forget the torturous environmental permitting for this facility
- Build the facility, at least four years.
So if you are prepared to wait a decade or so before the benefits of this decision reports in the BHP Billiton bottom line, Good for you!
BP cancels plans to build a commercial-scale cellulosic ethanol plant in Florida, and says it will refocus its U.S. biofuels strategy on R&D as well as licensing its industry-leading biofuels technology. BP originally intended to spend $250M-$350M on a facility to turn thousands of acres of energy crops into 36M gal/year of cellulosic ethanol. [View news story]
Sell BP: Too Many Troubles Make The Stock A Value Trap [View article]
I don't want to get into cats and dogs, or even Big Bird for that matter.
You failed to give a level to which you think the stock should fall before it becomes a hold recommendation.
Russia could make a radical shift in policy and allow western crude producers to own oil licenses in the Arctic, Energy Minister Alexander Novak has told the FT. Until now, Russia has awarded such licenses only to state-owned companies, with foreign firms taking just minority stakes in projects. However, Russia needs to attract Western know-how and money for it to fully exploit its Arctic resources. [View news story]
Incidentally, what happen to the oil? Is it still floating around, lurking in the dark and waiting to pounce on some innocent sailboat passing in the area, or did it drift down to the fabled and mythical Bermuda Triangle to vanish amongst all the airplane wrecks?
The Case For Investing In South Africa (Part II) [View article]
South Africa has more than 15 companies that are world class assets and that are duel listed; either London or NYSE, something that Zimbabwe never had. The sectors covered are Banking and Insurance, Mining, Luxury goods, Oil and gas, technology.
The second space tourist, Mark Shuttlewood, was originally a South African that made his fortune in IT.