|Bid||0.00 x 900|
|Ask||49.95 x 4000|
|Day's Range||47.34 - 48.01|
|52 Week Range||44.62 - 60.72|
|Beta (3Y Monthly)||0.79|
|PE Ratio (TTM)||8.59|
|Forward Dividend & Yield||2.54 (5.47%)|
|1y Target Est||58.67|
Chinese steel producers have finally come under pressure after reaping significant benefits over the last three years. In November, steel mills ran losses as steel prices entered into bear territory. The current uptrend for steel mills started when Chinese authorities removed high polluting capacity starting in 2016.
China’s (FXI) steel production hit another record in October, coming in at 82.6 million tons and marking the third consecutive month of gains for the country. While China (MCHI) produced record steel on a monthly basis, the average daily output in October was lower than in September, according to Reuters’ calculations. China’s production for the first ten months of the year totaled 782.5 million tons, a rise of 6.4% over the same period last year.
It seems like it’s already time iron ore prices gave way to weakness. On November 26, iron ore prices collapsed, recording their largest one-day fall of 8.4% since April 2017. The day marked iron ore’s fifth straight day of falling.
China consumes more than 70% of seaborne-traded iron ore, so it’s important for iron ore investors to track the country’s demand and outlook to gauge the overall outlook for iron ore. China imported 86.25 million tons of iron ore in November, implying declines of 8.8% YoY (year-over-year) and 2.4% sequentially—and marking its second straight month of decline. This weakness has been weighing on the demand for imported iron ore.
The pan-European Stoxx 600 was up more than 1 percent during early afternoon deals, with almost all sectors and major bourses in positive territory. British Prime Minister Theresa May will face a confidence vote from members of her own Conservative party Wednesday evening. Sterling fell into negative territory on the news, before moving 0.5 percent higher to trade at around 1.2546 against the U.S. dollar at 12:05 p.m.
Mick Davis, the former chief executive of miner Xstrata , has joined the board of a coal start-up backed by oil trader Vitol and miner Peabody . The South African-born businessman will be a non-executive ...
Currently, Vale (VALE) is trading at a forward EV-to-EBITDA multiple of 4.9x, which is a discount of 23% to its past five-year average multiple. Diversified miners (GNR) Rio Tinto (RIO) and BHP Billiton (BHP) are trading at similar multiples of 5.5x and 6.1x, respectively.
Vale (VALE) stock has seen a significant shift in ratings over the last one year. Currently, 73.0% of analysts covering Vale stock recommend a “buy” compared with 56.0% at the end of April. Approximately 23.0% of analysts recommend a “hold,” and 4.0% recommend a “sell.” Vale’s target price implies a 30% upside based on its current market price.
Vale (VALE) is expecting its cash flows to significantly expand going forward. The company has identified several levers to help future cash flows. Let’s take a look at those levers.
Exploration at one of Rio Tinto's (RIO.L) (RIO.AX) sites in the state of Western Australia that has been touted as potentially rich in copper has so far failed to find any economic veins of ore, the miner's partner in the project said on Tuesday. Antipa Minerals (AZY.AX) lodged a series of exploration updates with the Australian Securities Exchange on Tuesday including one covering its Citadel project with Rio in the state's Paterson region. Rio declined to comment.
At Vale Day in December 2017, Vale (VALE) had committed to reducing its net debt to $10 billion from $21 billion. While it was at that time seen as quite an ambitious target by analysts, Vale has achieved its aim. During Q3 2018 results, Vale reported that its net debt totaled $10.7 billion, which is the lowest level since Q3 2009.
Vale’s (VALE) CEO mentioned during Vale Day that the recent weakness in iron ore prices was expected due to the start of the winter season in China. Also, steel capacity cuts in China are lower this year as compared to last year, while steel mills are following the same approach of producing more in advance. This has led to additional weakness in iron ore.
Vale (VALE) has changed its product portfolio and quality in iron ore according to market demand. Vale made the major shift to selling high-quality ore in 2017, as China’s fight against pollution intensified, resulting in a huge variance between high-grade and low-grade material.
Vale (VALE) hosted Vale Day in New York on December 4. It’s aiming at maintaining discipline in capital allocation and remains committed to continuing to distribute free cash flow to shareholders. Vale’s president and CEO, Fabio Schvartsman, said, “We made in this bold remark that Vale would be the company to generate more value to its shareholders.
Alcoa (AA), the leading US-based aluminum producer, fell 9.0% in November. Alcoa has fallen 41% in 2018. Century Aluminum (CENX) and Rio Tinto (RIO) have fallen 54% and 6.3% year-to-date, respectively, based on their closing prices on November 30. In this part, we’ll discuss why Alcoa stock fell 9% in November.
Investing.com - The European basic resource sector soared in midday trade on Monday, as a trade ceasefire between the U.S. and China sparked demand for growth-linked assets.
European stock markets opened sharply higher on Monday, tracking a global-relief rally after the U.S. and China agreed to take steps to ease trade tensions at the weekend G-20 meeting in Argentina. The Stoxx Europe 600 index jumped 1.9% to 364.23, with the biggest gains coming from Germany where the rallied 2.6% to 11,547.07. The FTSE 100 index rose nearly 2% to 7,116.97 and The French CAC 40 index climbed close to 2% to 5,104.70. President Donald Trump and Chinese President Xi Jinping agreed to a ceasefire at the weekend, with the U.S. promising not to increase further its tariffs on China, which pledged to buy more U.S. products. Trade-sensitive sectors, such as autos and resources stocks saw the biggest gains, with Volkswagen AG [d: de:vow3] surging 4% and Rio Tinto PLC up nearly 5%. Oil majors also helped drive gains for European indexes, as crude prices rallied nearly 5%. BP PLC rose 2%.
For investors who are seeking a bargain in the basic materials sector, I would suggest increasing exposure to the changes in metal prices through the Anglo-Australian global metals and mining company Rio Tinto PLC (RIO). Investors may want to take advantage of the cheap valuation the market has given the stock and the upside the share price is going to experience over the following days. The company announced on Thursday that the board of directors approved a $2.6 billion investment for the development of the Koodaideri iron ore deposit in Western Australia.
In 2018, labor contracts at several leading copper mines came up for negotiation. Analysts expected disruptions in the copper supply due to labor disruptions. However, the copper supply has been smooth in 2018. Analysts build a disruption allowance in their models due to copper’s unpredictable supply. Most copper mining companies provide a guidance range instead of a specific guidance. In this part, we’ll discuss leading copper miners’ production guidance.
In this part, we’ll discuss leading copper miners’ third-quarter production data. By looking at top copper miners’ production profiles, we can get crucial insight into the global copper supply.
The third-quarter earnings season is nearly over. Most copper miners (XME) including First Quantum Minerals (FM) and Freeport-McMoRan (FCX) have released their third-quarter results. Diversified miners like Rio Tinto (RIO) and BHP Billiton (BHP) have only released their operating performance. They only release their half-yearly and annual financial results.
MELBOURNE/SYDNEY (Reuters) - Global miner Rio Tinto on Thursday formally pledged to plough billions of dollars into a futuristic iron ore mine in the red dirt of Western Australia, upping expected costs by nearly a fifth while lifting its projected output. Approval for the $2.6 billion facility at Koodaideri, in the resource-rich Pilbara area, marks the biggest investment commitment by the world's No. 2 iron ore miner since 2016, when it signed off on a $5.3 billion underground expansion of the Oyu Tolgoi copper mine in Mongolia. Rio has previously called Koodaideri, 110 kilometres from the nearest township, its first "intelligent" mine.
PLC (RIO.LN) approved a US$2.6 billion iron-ore mine in the Australian Outback that will be the miner’s most high-tech operation to date and buoy future production as older pits are depleted. Rio Tinto, the world’s second biggest mining company by value and No. 2 shipper of iron ore, the key ingredient in steel, said it will start construction of the Koodaideri iron-ore mine in Western Australia state next year with the goal of producing ore there by late 2021. Rio Tinto, widely viewed as a mining-industry leader on technology, says the Koodaideri mine will include more than 70 innovations that have been used ad hoc across its existing pits including a digital replica of the processing plant, an automated workshop and data analytics aimed at getting the best output and cutting downtime.