|Bid||0.00 x 1100|
|Ask||59.99 x 800|
|Day's Range||59.28 - 60.38|
|52 Week Range||44.62 - 63.27|
|Beta (3Y Monthly)||0.44|
|PE Ratio (TTM)||7.61|
|Forward Dividend & Yield||3.61 (5.81%)|
|1y Target Est||62.82|
It's not quite yet a flood but Australian resource companies are increasingly embracing renewable energies into their mining and natural gas operations even in the face of a federal government that veers toward climate scepticism. Among recent developments are moves by Rio Tinto to convert its iron ore trains to hybrid power, the commissioning of a solar power plant at an oil and gas facility operated by Santos in South Australia state, and battery storage being integrated into ConocoPhillips' liquefied natural gas (LNG) plant in Darwin.
On June 19, Rio Tinto (RIO) announced that it's cutting its iron ore production guidance again for 2019. Rio Tinto's production cut could be good news for seaborne iron ore prices and iron ore miners.
(Bloomberg) -- Iron ore’s dramatic year continued Wednesday as investors were whipsawed by two big pieces of news with conflicting implications.First, Brazil’s Vale SA said it won court approval to revive operations at one of its biggest projects, a development that’s likely to help ease global supply concerns that had sent prices to a five-year high. But just a few minutes later, No. 2 miner Rio Tinto Group said it’s not going to be able to hit an already lowered output target this year after problems at its sprawling operations in Western Australia.The iron ore market has been on a roar since January after the fatal collapse of a dam in Brazil resulted in steep reductions in supply from Vale, the biggest shipper. Those supply concerns have been compounded by operational problems in Western Australia, where Rio and BHP Group mine.Today’s announcements come after iron ore prices renewed a surge in recent days, hitting the highest levels in five years. Prices have been driven higher as the effects of supply disruptions in Brazil ripple through to China, where port inventories have tumbled and steel mills are churning out record volumes.London-based Rio now expects to produce 320 million to 330 million tons this year. That’s less than an earlier goal of 333 million to 343 million tons. Vale’s restart could bring on an additional 5.4 million tons this year, according to BMO Capital Markets.Vale said today that Brazil’s Superior Court of Justice revoked the injunction stopping the iron ore miner from using its dam in Brucutu, clearing the way for the company to reopen the mine within 72 hours.That’s the third time the Rio de Janeiro-based miner signaled the return to normal operations at facilities that accounted for almost a third of the capacity that’s been shuttered since the fatal tailings dam disaster in January.“The net impact of Rio Tinto and Vale’s announcements is a further reduction in iron ore supply in an already tight market,” BMO analyst Edward Sterck said. “Price spikes in iron ore probably cannot be ruled out, but we still think that pricing is sufficient to stimulate swing supply.”Rio cut its guidance in April after a cyclone hit its operations in Australia, lowering an original target of 338 to 350 million tons. BHP Group, the No. 3 producer, also cut its target, adding to supply concerns.Rio shares fell as much as 5.4% in London trading. The stock is still near the highest level in more than a decade because of the rally in iron ore, the most important commodity for the company.To contact the reporter on this story: Thomas Biesheuvel in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Liezel Hill, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On June 19, Australia’s ASX200 posted its second consecutive gain. The index rose 1.2% and closed at a fresh 11-year high of 6,648.10. The index is inching towards its lifetime high of 6,851.5.
Rio Tinto was among the worst performing blue-chip stocks in London on Wednesday after the Anglo-Australian group cut production guidance for iron ore, its key commodity and source of profits. Rio said it had been experiencing “operational” challenges at the Greater Brockman hub in Western Australia, triggering a review of its mine plans. “Given the change in volume guidance, unit costs will be updated in the second quarter operational review [due on July 16],” Rio said in a statement.
Following anticipation of supply crunch from the world's two largest iron ore exporters, Brazil and Australia, iron ore prices are trending above $100 per ton, at levels last seen in 2014.
Australia’s S&P/ASX 200 fell 0.35% on June 17. The index traded in a narrow range as investors remained cautious. Out of the index's 200 constituents, 62 stocks advanced, while 130 declined. Telecommunications, energy, and mining pulled the index down.
Tighter environmental controls are pushing Chinese mills to go for higher-quality imported ore as opposed to domestic ore. Seaborne iron ore exporters including Vale (VALE), BHP Billiton (BHP), and Rio Tinto (RIO) generate more than two-thirds of the total seaborne iron ore supply.
Rio Tinto has published the contracts and licensing agreements that govern its biggest projects, as the Anglo Australia group seeks to improve transparency and counter perceptions that miners profit at the expense of host nations. While some of the Anglo Australian company’s contracts are already publicly available — including the investment for the giant Oyu Tolgoi copper project in Mongolia — others are more difficult to find. To solve that problem, Rio, a founding member of the Extractive Industries Transparency Initiative, has created an online disclosure table with links to its development contracts, weighty legal documents that can be difficult for non-specialists to read.
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Why Iron Ore Prices Are Bucking the Downtrend in Metals Prices(Continued from Prior Part)China’s steel demandAs the supply tightness in the seaborne iron ore market continues, there’s another factor supporting prices: Chinese steel demand.
Why Iron Ore Prices Are Bucking the Downtrend in Metals PricesIron ore pricesAs we discussed in Why Iron Ore Prices Could Have more Upside after Breaching $100, iron ore supply tightness and continued strong demand from China have driven iron ore
Is the Worst Behind Vale? BAML Upgrades the Stock to a 'Buy'(Continued from Prior Part)A slew of downgrades for Vale since JanuaryVale (VALE) has seen a lot of analyst downgrades since the dam tragedy struck in late January. A slew of downgrades
Back in 1997, Paul Marshall and Ian Wace launched their own hedge fund called Marshall Wace. The fund is headquartered in London, England while providing additional offices in New York, and Hong Kong. The fund’s investment philosophy combines quantitative strategies with basic investment principles for the purpose of delivering strong returns to its clients. Its […]
Steel represents a significant amount of materials trading done on the stock market. Some companies perform better than others—for a number of reasons.
There’s the prospect that the material will be “phased out, potentially sooner than expected,” Chief Financial Officer Peter Beaven said in an investor presentation on Wednesday. BHP follows its biggest competitors Rio Tinto Group and Glencore Plc in questioning the future role of coal used for power generation, as investors press for more action to tackle climate change and tighten restrictions on holding companies that produce the fuel. Rio sold its final coal mines last year, while Glencore said in March it would seek to limit production.
Sales by the Anglo American Plc unit dropped 25% from a year ago to $415 million, and were down 29% from an offering last month. It’s often a quieter time of the year because the industry has already restocked after the key holiday period, but total sales so far in 2019 are still much weaker than in previous years. In December, some of Rio Tinto Group’s customers refused to buy cheaper stones, while De Beers was forced to cut prices toward the end of last year and offer concessions to buyers.